IT & TELECOM

S.M. ABBAS ZAIDI, S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
Aug 9 - 15, 2010

SOURCES OF FDI IN PAKISTAN TELECOM SECTOR (US $ Mn)

COUNTRY FY06 FY07 FY08 FY09
UAE 1360.06 358.77 366.19 -54.27
U.S.A 58.81 208.92 446.17 157.43
NORWAY 245.27 24.68 270 99.25
CHINA 0.04 706.17 0.06 -106.78
U.K 100.92 255.27 15.37 -9.63
MAURITIUS 59.4 59.4 49.24 140.39
HONG KONG 2.05 8 180 103.89
MALTA 0 0 60 187
SINGAPORE 0.06 0.23 0 210.6
NETHERLANDS 31.28 42.28 25.37 -26.43
GERMANY 2.8 48.97 4.87 0.32
LUXEMBOURG 14.57 10.07 -0.43 -0.26
SWEDEN 6.08 0 2.36 22.43
MALAYSIA 12.55 3.11 -1.82 -1.69
EGYPT 3.86 0 7.83 14.29
SAUDI ARABIA 0.35 15.5 0.09 0.04
IRELAND 0 0 1.58 3.75
BERMUDA 0 0.8 0 0
OTHERS 6.96 82.09 13.24 74.51
TOTAL 1,905.10 1,824.30 1,440.10 814.9

CELLULAR MOBILE REVENUES

COMPANY 2006-07 2007-08 2008-09
Mobilink 64,654 79,936 83,271
Ufone 21,867 27,455 40,060
Zong 2,897 2,585 8,274
Instaphone 472 260 24
Telenor 22,837 45,081 51,561
Warid 20,405 26,805 29,233
Total `133,132 182,122 212,423

CELLULAR MOBILE INVESTMENT

COMPANY 2006-07 2007-08 2008-09
Mobilink 590 919 270
Ufone 232 174 215
Instaphone 9 0 -
Zong 570 200 204
Telenor 762 565 374
Warid 422 480 167
Total 2,585 2,338 1,230


IT SECTOR HC REQUIREMENTS

. 2005-06 2006-07 2007-08 2008-09 2009-10
IT Industry HC (Exports) 10,000 16,569 27,615 46,025 76,709
IT Industry HC (Domestic) 25,000 33,250 44,223 58,816 78,225
Public Sector (Government, Semi--government and Defense) 25,000 27,500 30,250 33,275 36,603
SECP-registered Public and Private-sector Companies 25,000 27,500 30,250 33,275 36,603
Educational Sector 5,000 5,500 6,050 6,655 7,321
Total 90,000 110,319 138,388 178,046 235,461

IT INDUSTRY HC REQUIREMENTS

. 2005-06 2006-07 2007-08 2008-09 2009-10
 IT HC (Exports) 10,000  16,569 27,615 46,025 76,709
 IT HC (Domestic) 25,000 33,250  44,223   58,816  78,225
 IT HC (Total)  35,000 49,819  71,838  104,841  154,934 
 Non-IT HC (Total) 17,500 24,910  35,919  52,421 77,467
 Total HC  52,500 74,729 107,756 157,262  232,401 

TELECOM CONTRIBUTION TO EXCHEQUER (Rs in bn)

PERIOD

GST

ACTIVATION TAX

PTA DEPOSITS

OTHERS

TOTAL

2006-07 36.28 17.60 9.72 36.95 100.55
2007-08 44.61 19.20 10.86 36.96 111.63
2008-09 49.35 14.20 9.15 39.30 112.00
Jul-Dec 09 21.44 3.80 4.91 18.45 48.60

CELL SITES BY OPERATOR

COMPANY 2007-08 2008-09 DEC-09
Mobilink 7,339 7,903 10,148
Ufone 3,471 4,893 6,910
Instaphone 211 211 95
Zong 2,328 4,688 1,252
Telenor 5,017 6,088 5,938
Warid 3,152 4,341 6,688
Total 21,518 28,124 31,031

STATISTICS OF THE PAKISTANI ITíS INDUSTRY

Total number of IT companies registered with PSEB 1739
Number of substantial IT companies region-wise breakup 611 Karachi
479 Islamabad/Rawalpindi
544 Lahore
105  Others
Total number of foreign IT and telecommunication companies working in Pakistan 60
Number of CMMI-assessed companies One CMM Level 5 company, one CMMI Level 5 company, three CMMI Level 3 companies and sixteen CMMI Level 2 companies
Total industry size US$ 2.8 billion (WTO-prescribed formula)
IT and IT-enabled services exports US$ 1.6 billion (WTO-prescribed formula)
Percent growth in exports over the last one year 34%
Number of IT graduates produced per year Approximately 20,000
Export targets for the current fiscal year 2007-2008 US$ 240 million
Number of universities offering IT/CS programs 110
Number of IT professionals engaged in export-oriented activities (software development/call centers etc.) More than 15,000
Total number of IT professionals employed in Pakistan 110,000
Total IT spending in the fiscal year 2005-2006 US$ 1.4 billion
Total space utilized in IT & Software Technology Parks Nine IT Parks covering an area of 723,907 sq ft

CELLULAR SUBSCRIBERS BY PROVIENCE DURING DEC-2009

COMPANIES PUNJAB SINDH NWFP BALOCHISTAN AJK TOTAL
Mobilink 18,358,424 7,870,891 3,266,717 842,265 462,057 30,800,354
Ufone 10,982,820 4,746,935 2,071,866 540,675 167,870 18,510,175
Zong 3,451,429 1,657,780 1,336,537 305,239 169,249 6,920,234
Instaphone 586 339 105 43 - 1,073
Telenor 12,159,936 6,372,780 2,452,433 797,440 718,200 22,500,789
Warid 12,061,991 5,124,046 1,217,159 210,725 233,394 18,847,315
Total 57,015,195 25,772,771 10,344,817 2,696,387 1,750,770 97,579,940

WLL CELL SITES JUNE 09

COMPANY PUNJAB SINDH NWFP BALOCHISTAN AJK NA TOTAL
PTCL 808 332 222 89 28 3 1,482
WorldCall 264 121 21 . . . 406
Telecard 132 116 13 8 . .. 274
Great Bear 42 . . . . . 42
Wateen 597 255 53 24 . . 929
Mytel - . 2 . . . 2
Link Direct 114 214 3 1 . . 332
Total 1,977 1,042 315 125 28 3 3,467

TELEDENSITIES IN PAKISTAN (%)

MONTHS PER CENT
December -2008 59.5
March- 2009 60.5
June -2009 62.1
September- 2009 62.4
Dec ember-2009 63.5