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Roshan Pakistan Web Magazine : INFORMATION TECHNOLOGY


Further Reduction in Bandwidth Rates

The Pakistan Telecommunication Company Limited (PTCL) on the directives of Ministry of Science and Technology (MoST) has further reduced Internet bandwidth rates for the promotion of IT in Pakistan. The news rates are one of the lowest in South Asia and Far East, said Federal Minister for Science & Technology, Prof. Atta in a press conference.

This new reduction brings the bandwidth prices to half of prices announced in Sept. 2000 for ISPs and corporate sector and to 15th for software, education and specialized IT related services. These reductions are for provision of bandwidth through SEA-ME-WE-III upto New York.

PTCL will start receiving applications based on these rates from 15th January 2001 and new demand will be activated within 6-8 weeks after its registration. Some phpects of the tariffs proposal and tabulation of sub-rate IP Port connectivity are as under

 

  • Price for Software Export and other IT related activities like educational institutions , call centers will be US$ 6,000 per E1 per month excluding DXX charges.

  • Bandwidth rate for connectivity on IP Port for commercial ISPs and corporate customers will be US$ 15,000 per E1/month excluding DXX charges.

  • Proposed sub-rates and monthly tariffs for IP Port connectivity for ISPs are as follows:

Speed (IP Port)

Monthly Tariff

KBPS

US $

1024

9,000

512

5,300

256

3,100

NOTE-1:  These are based on SEA-ME-WE3 not fully restorable. Above rates are exclusive of DX charges of Rs.55,00 (US$ 1000) per month.

NOTE-II: Sub-rate tariffs are based on multiplying factors already agreed for half circuit IP connectivity. Sub-rates other than those mentioned above are not available.

For the software houses the following rates for sub-rate for IP Port connectivity will apply:

Speed (IP Port)

Monthly Tariff

KBPS

US$

1024

3,600

512

2,120

256

1,240

The new rate reduction is over and above 53% and 25% reductions already announced in May and September 2000 respectively. This new measure shall benefit al Internet end-users and overall IT industry players.

Internet for Education

Public sector universities defined by  MoST will be provided bandwidth free of cost up to 256 kbps for a period of four years. Bandwidth above 256 kbps will be provided at applicable rates, costof which will be borne by the respective universities. PTCL will provide access infrastructure (up to NTU, DTU or radio modem, as the case may be) and bandwidth (256 kbps) through funding from its R&D Fund.

All universities that acquire an ISP license from PTA and get an UIN (131 code) will be treated as commercial ISPs and charged accordingly.

Private sector degree awarding accredited universities and educational institutions will be provided bandwidth at applicable rates of software houses and educational institutions.

Backbone Network and Reduction of Rates

Some examples of domestic bandwidth rate reductions are tabulated hereunder:

Interconnect Operators (64, 128 and 256K)

64, 128, 256K

256 kbps to 2 Mbits

40-50%

50-60%

Private Sector & Corporate Leased Lines

30-35%

30-35%

 

PTCL is now purchasing bulk capacity on full STM1 (155Mbps) basis for international connectivity and enhancing its domestic bandwidth to 10Gbps system. In addition another STM1 will be procured for which competitive bids are in process of evaluation. This will enhance bandwidth provisioning and availability of capacity with the company.

Outsourcing IT Facilities

PTCL is outsourcing facilities like Tele-housing, VoIP, DSL technologies, ISDN (PRI) and Basic Rate Access (BRA) services etc through proactive measure with private sector. In a recently singed MoU with Siemens by Chairman PTCL, prices for PRI and other items have been got further reduction by at least 30%. Similar MoUs are being singed with other industry players in the interest of the industry. This gesture from vendors like Siemens, Germany shows confidence of international players on policy initiative of the MoST and PTCL. The company is also taking initiative to develop infrastructure like modems wholesaling etc to reduce the cost of investment of ISPs.

In the recent visits to China, MoST delegation had discussions how China Telecom developed wideband connectivity. As a result of interaction of China, PTCL would take major initiatives shortly for laying optical fibre cables in metropolitan areas to cater to the bandwidth requirements of business and important customers to establish Metropolitan Area Network (MAN) and high capacity Fibre Rings.

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