In the last few years, latest ICTs have been making their way to Pakistan. Data show that an increasing number of Pakistanis are subscribing to 3G and 4G networks. But it’s still a long way to go until the fruits of connectivity reach the faraway folks in the country. The organisation mandated to lead the process of digital inclusion of un-served and under-served areas has a lot on its plate.
Late last month, that organisation, Universal Service Fund Company (USF Co.) released its three-year rollout plan. USF, now ten years old, has been contracting telecom development work in under-served areas to telecom operators. These include laying down optic fibre infrastructure, setting up public call offices and tele-centers, providing broadband services, and special projects in health & education.
As per the plan, USF has rationalized its telecom development operations into two main programs: Rural Telephony & e-services (RTeS), and Optical Fibre Cable (OFC). USF, a non-profit, public-private partnership, receives its funding from licensed telecom operators’ revenues. USF undertakes its telecom development initiatives by contracting projects to the same telecom industry via bidding.
Under the new rollout plan, RTeS will envisage provision of basic telephony and mobile broadband (3G and 4G) services in less developed regions. Specifically, the projects will be taken to eight regions across Balochistan, Fata, and Khyber Pakhtunkhwa. Roughly 2,500 mauza’s (administrative districts) will be covered. The reach of these programs will extend to around four million people.
Unlike RTeS, which deals with last mile connectivity services, the OFC program will deal with backhaul, which is the connectivity backbone for last mile services. USF has so far laid nearly 6,500 kilometers of OFC, and is planning to add more OFC infrastructure across the four provinces in next three years. Targets haven’t been identified yet, but mauza’s that have a population above 20,000 will be targeted.
Besides the two main programs, some smaller initiatives have also been included. Under special projects, USF Co. will establish 500 Telecentres for provision of broadband services. In addition, it will set up 100 Computer Centres, called Women Empowerment Centres, in collaboration with Pakistan Bait-ul-Maal.
While any development is welcome, the plan doesn’t seem ambitious. Short on innovation, the organisation is pretty much using the same ideas that were developed years ago. That doesn’t mean one is ignoring the difficulties involved in taking telecom infrastructure and services to yet un-served areas. There are, after all, significant security and logistical challenges present in the peripheral areas.
Available financials show that between 2007 and 2014, USF had contracted projects worth Rs27.47 billion in total. Yet, about 44 percent of that contracted subsidy was still to be disbursed as of June 2014. In terms of project maturity, USF’s June 2014 annual report shows that between 2007 and 2012, just 58 percent of the 36 contracted projects had been completed, with the rest languishing in different phases.
The situation might have improved in the two years since. But even then, the fact still remains that while USF has received an estimated more than Rs100 billion in funding since it came into being, its spending has remained woefully slow.
Granted, the operational challenges are there, but the USF bosses need to take a deeper look at how they can more effectively achieve the organisation’s mandate.
