USF Mission: “Every Pakistani has the right to modern telecommunication services and we strive to provide that” 1 -Parvez Iftikhar CEO USF Pak.

What is USF? Fund consists of contributions by Licensed Telecom Operators No Government Funding Used for Telecom Service Providers to provide services in unserved/under-served areas Ministry of IT acts like a “Trustee” of the Fund Disbursed through open competitive bidding by USFCo., which is set up under Companies Law USF Co. is a Public-Private-Partnership enterprise, run by an independent Board 2www.usf.org.pk

Public-Private Partnership 3 Rep. of Consumer Interest s Rep. of Mobile Operators Rep. LL/LDI Operators Representative of ISPs Member Telecom MoIT Chairman PTA Federal Secretary IT Minister of IT CEO USF PUBLIC PRIVATE USF Co. Board

USF Co. Rules & Principles... Open, transparent bidding All docs on Website Retail Tariffs subject to PTA controls Max 50% accumulation of subsidy No local monopolies: Obligatory infrastr. share One-time subsidies for Capex Technology Neutral Performance guarantees by subsidy winners Six-monthly Audits for USFCo.Lien on Equipment 4 Frequent Board Meetings

USF generated investments in 2 yrs 5 Total Investment Million US$. ~ US$ 240 Mil ~$ 4 Mil disbursed

USF Programs

1st USF Program: Rural Telecom

26 “Lots” of Rural Telecom 8www.usf.org.pk

Status of Villages in Rural Program

Renewable Energy ICT Infrastructure funded by USF Pakistan is powered by Renewable Energy Sources

2nd USF Program: Optic Fiber Access for all Tehsils

Optic Fiber availability in Pak. Served areas Unserved areas

3rd USF Program: Broadband for un-served urban areas

Benefits of Broadband Education Bring Schools & Colleges on-line, help “Distance Learning Programs Health Telemedicine for Hospitals, BHUs, Health Centers etc. Agriculture Provide latest info. on crops, pesticides, fertilizers, market prices; Rural Banking – especially Microfinance Economy Modern banking/funding; Improved on-line remittances, Improved Agricultural, Branchless Banking, Industrial and Commercial outputs. Others Access On-line services/info of Govt., On-line Visa forms … 14www.usf.org.pk

Broadband Strategy of USF Pakistan ~480 cities & towns: no Broadband available Rural areas: No PCs, & No Computer- literacy 15 to 18 large cities: Broadband is available 1.Start by targeting Unserved Urban Areas 2.Pay only when given targets are achieved (OBA) 3.More than one subsidy winner 4.Special emphasis on Education

Impact of Subsidy on Broadband One-time USF subsidy

Broadband deployment in 11 Regions Another 3 Regions advertised for bidding Agreements signed 3 Regions (KTR, LTR & ITR) are already “served” 17 There will also be: ~2,000 Educational Broadband Centers ~700 Community Broadband Centers

In near future, 4th USF Program: Community Telecenters

Broadband Strategy for RURAL areas ~480 cities & towns: no Broadband available Rural areas: No PCs, & No Computer- literacy 15 to 18 large cities: Broadband is available Target Rural Areas through Community Telecenters 19

Telecenter Challenges... 20www.usf.org.pk Someone must be responsible with stake in the venture– not government! High speed media unavailable, areas difficult to reach Basic knowledge to operate computers lacking What will the villagers do with these? PCs, Electricity, Repair & Maintenance

In General…

Challenges and Setbacks Setbacks: a.Force Majeure in Malakand b.No-bids in Chaghi, D I Khan and Kila-Saifullah/Loralai c.Backing out by winning bidders in Kalat-Mastung and MTR d.Other delays… Specially challenging is Baluchistan – 44% of Pakistan’s Area, 70% of Coastline, but 5% population - Average 19 people per sq. km. Stated Reasons: Security issues, Access problems (physical / electronic), No Power, Increase in costs (Inflation, Rupee Exchange- rate), High Taxes, coupled with High Opex, Low Revenues. 22www.usf.org.pk

23 Thank you

24www.usf.org.pk