Executive Summary

Afghanistan, after years of war and civil unrest, has started putting a new national telecommunications infrastructure in place. The 2001 war destroyed a telecommunications network already suffering serious disrepair due to neglect by the Taliban. The nation’s network of telephone lines was left barely functioning. With it being recognised that telecommunications will play a crucial role in rebuilding the country’s shattered economy and society, a properly functioning basic telephone network is being given priority. An important step was the creation of the Ministry of Communications (MoC) by the Transitional Government in early. The challenge is to attract and manage foreign investment in the country. The signs are positive.

In 2003, the second GSM mobile service in the country was launched. In April 2005, with the mobile subscribers having rapidly increased to almost 800,000 subscribers in less than 2 years, it was announced that two additional GSM licences were to be issued. At the same time, the government, in a push to develop the fixed-line network, launched what it called the Local Fixed Service Provider (LFSP) program. This program was expected to see hundreds of small-scale investors set up companies at the village or provincial level using Wireless Local Loop (WLL) technology.

Bangladesh remains one of the world’s poorest, most densely populated, least developed countries. With a population of almost 150 million people in the country, Bangladesh had less than 1 million fixed-line telephone services or a teledensity of less than 1%. This means that almost 99% of homes are without a phone. There is reportedly a four year waiting list for a fixed-line phone service. By contrast, the mobile sector has taken off and annual growth has been running at more than 100%. There were over 4 million mobile subscribers - a penetration of almost 3% - by early 2005.

The establishment in 2001 of a new regulator, the Telecommunications Regulatory Commission (TRC), signalled the start of a new push to reshape the country’s telecom sector. The government can be expected to continue to vigorously pursue the de-regulation process. Expanding the national telecom infrastructure remains a priority. At the same time, overcoming the inefficiencies of its state-owned enterprises remains a major challenge. A particularly overwhelming task is to provide telephone services to the rural population living in some 86,000 villages across the country. Further strong growth in the mobile sector can be expected in the short term, possibly boosted by the licensing of more mobile operators.

Pakistan - After a slow start following the transition from a regulated state-owned monopoly to a deregulated competitive structure, Pakistan’s telecom sector is now moving into a period of what could well be phenomenal growth. Fixed-line penetration stood at a low 3.5% (5.3 million lines) in early 2005 and there is plenty of room for further expansion. The government is continuing to pursue its targeted national teledensity of 7% (around 10 million lines) by 2010. To achieve this target, around 1 million additional lines need to be installed every year. Pakistan’s mobile sector, which had started to grow strongly over the last few years, rocketed to 10.5 million subscribers (7% penetration) by April 2005 and was gearing up for further growth. The mobile population has been increasing at a staggering 120% annually.

The government’s reform plans are being progressively implemented and this is certainly starting to have some impact on the market. The country’s four mobile operators have been joined by two new operators - Warid Telecom and Telenor Pakistan - following a decision by the government to issue two additional mobile licences. (One of the new arrivals, Telenor, attracted over 650,000 customers in the first two months following launch.) An important aspect of reforming the telecom sector, the privatisation of Pakistan Telecom, remained unresolved and must be addressed as part of the essential restructuring.

Sri Lanka - Despite its ongoing political problems, Sri Lanka has demonstrated considerable determination in its efforts to rebuild the country. With a modern progressive telecommunications sector high on the list, the sector looks to be well positioned for vigorous growth. The country’s fixed-line teledensity has now passed 5% and mobile penetration was 11% in early 2005, with annual growth of the mobile sector running in excess of 60%. The strong growth looks very much like it will continue. There are a range of major initiatives being put in place that are set to give a boost to the building of national infrastructure and open the market to even more competition. Sri Lanka Telecom progressively losing its monopoly on a range of services has led the way as the market is made more interesting for new players. It is well recognised by the government that for economic well-being the country needs the ready availability of Internet, e-finance, e-commerce and all the other communications facilities products that play an important role in global commercial activity.

1. EXECUTIVE SUMMARY
2. AFGHANISTAN
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of Afghanistan’s Telecom market
2.3 Regulatory environment
2.4 Fixed network operators in Afghanistan
2.4.1 Afghan Wireless Communications Co (AWCC)
2.5 Telecommunications infrastructure
2.5.1 Overview
2.5.2 Infrastructure projects
2.6 Internet market
2.6.1 Market overview
2.6.2 Internet cafes
2.6.3 Internet Service Providers (ISPs)
2.6.4 Voice over Internet Protocol (VoIP)
2.7 Mobile communications
2.7.1 Market Overview
2.7.2 Mobile operators
2.7.3 Satellite mobile
2.8 Broadcasting market
2.8.1 Overview
2.8.2 National broadcaster
2.8.3 Badakhshan TV
2.8.4 Herat TV
2.8.5 Satellite TV
2.8.6 Afghan TV
2.8.7 Cable TV
2.8.8 Radio Free Afghanistan
2.8.9 Voice of Afghanistan
3. BANGLADESH
3.1 Key statistics
3.2 Telecommunications market
3.2.1 Overview
3.3 Regulatory environment
3.3.1 Independent regulator
3.3.2 Telecommunications Law
3.3.3 The National Telecommunications Policy of 1998 (NTP-98)
3.3.4 Telecommunications Act 2001
3.3.5 The Communications Convergence Bill 2001
3.3.6 Privatisation and liberalisation
3.3.7 Tariffs
3.4 Fixed network operators in Bangladesh
3.4.1 Bangladesh Telegraph and Telephone Board
3.4.2 Bangladesh Rural Telecommunications Authority (BRTA)
3.4.3 Sheba Telecom
3.4.4 WorldTel
3.4.5 Open licensing
3.4.6 Other operators
3.5 Telecommunications infrastructure
3.5.1 National telecom network
3.5.2 International infrastructure
3.6 Data market
3.6.1 Data infrastructure and services
3.7 Internet market
3.7.1 Overview
3.7.2 MediNet
3.7.3 Village Computer and Internet Program
3.7.4 Bangladesh’s ISP market
3.7.5 IT development strategy
3.7.6 Voice over Internet Protocol (VoIP)
3.8 Broadband in Bangladesh
3.8.1 Broadband services
3.8.2 Internet via satellite
3.9 Content and E-Services
3.9.1 E-commerce
3.9.2 E-banking
3.10 Mobile communications
3.10.1 Market overview
3.10.2 Interconnection issues
3.10.3 Mobile operators
3.10.4 Mobile services
3.11 Broadcasting market
3.11.1 Overview
3.11.2 Free to air broadcasting
3.11.3 Cable and satellite TV
4. PAKISTAN
4.1 Key statistics
4.2 Telecommunications market
4.2.1 Overview
4.3 Regulatory environment
4.3.1 Overview
4.3.2 Ministry of Information Technology (MoIT)
4.3.3 Pakistan Telecommunication Authority
4.3.4 Telecom sector liberalisation
4.3.5 Privatisation of PTCL
4.3.6 National numbering scheme
4.3.7 Number portability
4.3.8 Universal Service Obligation (USO)
4.4 Fixed network operators in Pakistan
4.4.1 Pakistan Telecommunication Company Limited (PTCL)
4.4.2 WorldCall Group
4.4.3 Telecard
4.5 Fixed network voice services
4.5.1 International voice traffic
4.5.2 International prepaid calling card services
4.5.3 Value-added voice services
4.6 Telecommunications infrastructure
4.6.1 National telecom network
4.6.2 International infrastructure
4.6.3 Submarine cable networks
4.6.4 Infrastructure developments
4.7 Data market
4.7.1 Data infrastructure
4.7.2 Data services
4.8 Internet market
4.8.1 Overview
4.8.2 ISP market
4.9 Broadband market in Pakistan
4.9.1 Cable modems
4.9.2 Internet via satellite
4.10 E-services
4.10.1 E-commerce
4.10.2 E-government
4.11 Mobile communications
4.11.1 Market overview
4.11.2 Competitive market
4.11.3 Single access number
4.11.4 Calling Party Pays
4.11.5 Major mobile operators
4.11.6 Mobile services
4.11.7 Satellite mobile
4.12 Broadcasting market
4.12.1 Market overview
4.12.2 Regulatory issues
4.12.3 Free-to-air broadcasting
4.12.4 Pay TV
4.12.5 Cable TV
5. SRI LANKA
5.1 Key statistics
5.2 Telecommunications market
5.2.1 Overview
5.2.2 Tsunami disaster
5.3 Regulatory environment
5.3.1 Deregulation
5.3.2 Privatisation
5.3.3 Telecommunications Regulatory Commission (TRC)
5.3.4 The National Policy on Telecommunications 1998
5.3.5 Draft National Telecommunications Policy 2001-2005
5.3.6 Calling Party Pays
5.4 Telecommunications infrastructure
5.4.1 National telecom network
5.4.2 International infrastructure
5.5 Fixed network operators in Sri Lanka
5.5.1 Overview of operators
5.5.2 Sri Lanka Telecom
5.5.3 Suntel
5.5.4 Lanka Bell
5.6 Data market
5.6.1 Overview
5.6.2 Integrated Services Digital Network (ISDN)
5.7 Internet market
5.7.1 Overview of the Internet in Sri Lanka
5.7.2 Internet exchange
5.7.3 Public Internet access
5.7.4 Data Centres
5.7.5 ISP market
5.8 Broadband in Sri Lanka
5.8.1 Market overview
5.8.2 Asymmetrical Digital Subscriber Line (ADSL)
5.9 Mobile communications
5.9.1 Overview of Sri Lanka’s mobile market
5.9.2 Major mobile operators
5.9.3 Third Generation (3G) mobile
5.9.4 Satellite mobile
5.10 Broadcasting market
5.10.1 Market overview
5.10.2 Regulatory environment
5.10.3 Free to air TV
5.10.4 Cable and pay TV
6. GLOSSARY OF ABBREVIATIONS


Exhibit 1 – Internet Service Providers licences – April 2005
Exhibit 2 – Long Distance International licensees - 2004
Exhibit 3 – Fixed Local Loop licensees – 2004
Exhibit 4 – PTCL subsidiary companies
Exhibit 5 – Joint ventures and affiliated companies
Exhibit 6 – External Gateway Operator (EGO) licenses
Exhibit 7 – Telecommunications system operator licensees




Table 1 – Mobile subscriber growth – 2003 - 2005
Table 2 – Country statistics Afghanistan – 2005
Table 3 – Telephone network statistics – 2004
Table 4 – Internet statistics – 2004
Table 5 – Mobile statistics – March 2005
Table 6 – National telecommunications authorities
Table 7 – Fixed-line subscriber growth and teledensity – 1994 - 2004
Table 8 – Distribution of telephone lines - 2002
Table 9 – Mobile subscriber growth – 2002 - 2005
Table 10 – Key broadcasting statistics – 2003
Table 11 – Country statistics Bangladesh – 2005
Table 12 – Telephone network statistics – September 2004
Table 13 – Internet provider statistics – 2003
Table 14 – Internet user statistics – 2004
Table 15 – Mobile statistics – 2004
Table 16 – National telecommunications authorities
Table 17 – Fixed telephone line targets and teledensity – 2010, 2025
Table 18 – Fixed-line growth and teledensity – 1995 - 2004
Table 19 – Internet users and ISPs – 1996 - 2004
Table 20 – Internet host computers – 1997 - 2003
Table 21 – Mobile subscribers by operator – 2004
Table 22 – Mobile subscriber growth – 1996 - 2004
Table 23 – Market share by operator – 2004
Table 24 – Pacific Bangladesh subscribers – 1999 - 2004
Table 25 – GrameenPhone subscribers – 1998 - 2004
Table 26 – Sheba Telecom subscribers – 2002 - 2004
Table 27 – Key broadcasting statistics Bangladesh – 2004*
Table 28 – Country statistics Pakistan – 2004
Table 29 – Telephone network statistics – April 2005
Table 30 – Internet provider statistics – April 2005
Table 31 – Internet user statistics – 2004
Table 32 – Mobile statistics – April 2005
Table 33 – National telecommunications authorities
Table 34 – ‘Fixed’ licences issued by PTA - March 2005
Table 35 – PTCL network status – 2004
Table 36 – Growth in Public Call Offices – 1999 - 2005
Table 37 – Fixed lines in service and teldensity in Pakistan – 1991 - 2005
Table 38 – Telephone services to villages* - 2003
Table 39 – Internet users – 1995 - 2004
Table 40 – Internet host computers – 1995 - 2003
Table 41 – Mobile subscribers by operator in Pakistan – April 2005
Table 42 – Mobile subscriber growth – 1995 - 2005
Table 43 – Mobile operator market share – 2001 - 2004
Table 44 – Key broadcasting statistics - 2004*
Table 45 – Cable TV licence categories in Pakistan
Table 46 – Country statistics Sri Lanka – 2004
Table 47 – Telephone network statistics – September 2004
Table 48 – Internet provider statistics – 2004
Table 49 – Internet user statistics – 2004
Table 50 – Mobile statistics – 2004
Table 51 – National telecommunications authorities
Table 52 – National network status – September 2004
Table 53 – Fixed lines in service and teledensity in Sri Lanka – 1995 - 2004
Table 54 – WLL subscribers – 1996 - 2004
Table 55 – SLT subscribers – 1999 - 2004
Table 56 – Suntel subscribers - 1999 - 2004
Table 57 – Lanka Bell subscribers – 1999 - 2004
Table 58 – Internet users – 1996 - 2004
Table 59 – Internet subscribers – 1996 - 2004
Table 60 – Internet host computers – 1996 - 2003
Table 61 – Mobile subscriber growth – 1995 - 2004
Table 62 – Mobile subscribers by operator in Sri Lanka – 2004
Table 63 – Key broadcasting statistics – 2004