Broadband Book

Broadband Book
Document Revision History

Date
Version
Prepared By
Copyright 2008, Wateen Telecom

Private & Confidential Information
Reviewed By
Approved By
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Table of Contents
1.
Introduction............................................................................................................4
1.1.
2.
Document Objective...................................................................................................... 4
Executive Summary...............................................................................................5
2.1.
3.
The Executive Summary................................................................................................ 5
Market Problem and Opportunity..........................................................................8

3.1.
Market Problem............................................................................................................. 8
3.2.
Market Opportunity........................................................................................................ 9
4.
Platform Description............................................................................................11
4.1.
OFC............................................................................................................................. 11
4.2.
FTTX............................................................................................................................ 25
4.3.
DSL.............................................................................................................................. 29
4.4.
VSAT........................................................................................................................... 31
4.5.
WiMAX......................................................................................................................... 34
5.
Market Overview and Analysis............................................................................40

5.1.
Market/Customer Overview......................................................................................... 40
5.2.
Market Size.................................................................................................................. 40
5.3.
Market/Customer Segmentation..................................................................................46
6.
Competitive Advantage........................................................................................51
6.1.
7.
Competitive Advantage................................................................................................ 51
Barriers to Entry...................................................................................................54
7.1.
Barriers to Entry........................................................................................................... 54
7.1.1 Marketplace Barriers to Entry....................................................................................54

7.1.2 Advantageous Barriers to Entry................................................................................56
8.
Competitor Analysis.............................................................................................59
8.1.
Competitor Analysis..................................................................................................... 59
8.2.
Competitor Reaction.................................................................................................... 66
8.3.
Company Counter Reaction........................................................................................ 67
9.
Products / Service Offerings...............................................................................69

9.1.
Products / Services offered.......................................................................................... 69
9.2.
Product/Service Delivery.............................................................................................72
9.3.
Customer experience................................................................................................... 72
9.4.
Bundling of Products.................................................................................................... 73
10.
Customer Support Strategy................................................................................74

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10.1.
11.
Customer Support Channels.......................................................................................74
Sales and Marketing Strategy.............................................................................75
11.1.
Target Customer.......................................................................................................... 75
11.2.
Platform....................................................................................................................... 75
11.3.
Sales Channels........................................................................................................... 75
11.4.
Marketing Strategy....................................................................................................... 76
12. Impact Assessment..............................................................................................82

12.1.
Business Impacts......................................................................................................... 82
12.2.
Operational Impacts..................................................................................................... 82
13. Risk Assessment..................................................................................................83

13.1
Platform Risks............................................................................................................. 83
14. Financial Outlook.................................................................................................86

14.1.
Financial costs............................................................................................................. 86
14.2.
Financial Outlook......................................................................................................... 89
15.
Conclusions and Recommendations.................................................................92
15.1.
Conclusions................................................................................................................. 92
15.2.
Recommendations....................................................................................................... 92
15.3.
Platform Delivery Project Responsibility......................................................................92
16. Review and Approval...........................................................................................93

16.1.
Review Process........................................................................................................... 93
17. Supporting Data...................................................................................................94

17.1.
Assumptions................................................................................................................ 94
17.2.
Research Information.................................................................................................. 94
17.3.
Platform Diagram/Architecture.....................................................................................94

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1.
Introduction
1.1. Document Objective
This document outlines a business case, a key document, used by
management, to define, assess and evaluate the best approach to
strategize broadband business in Pakistan. This business case examines
the potential business opportunity, problems, competition, plan of actions
to achieve company objectives.

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2.
Executive Summary
2.1.
The Executive Summary

Remembering
TIME
(Telecommunication,
Information,
Media
and
Entertainment) concept given by CEO of Wateen Telecom couple of years

back, it is evident that digital divide in Pakistan can only be minimized by
achieving sustainable competitive advantage (SCA) in broadband
industry.
We have to ensure that:
A small businessman should have high speed connectivity to compete

its counterpart in Korea, Japan or India
Students need reliable and speedy internet access to download stateof-the-art animated tutorials
Entertainment downloads are available at cheaper rates
Digital prosperity kicks-in. It will not happen by accident, nor by

continuing the inertia, rather it will get materialized if we are smart
enough to leverage on our telecommunication infrastructure
This digital river we call broadband is the driving tool that can quench
our thirst for economic progress
Encourage investors to put their valuable money to bring-in quality

content,
as
presently
content
is
not
available
in
domestic
infrastructure and even if available, it is not in local language
Backhaul charges need to be at reasonably low levels as new

bandwidth providers expand and competition increases
Wireless access, like WiMAX, WiFi-mesh, Edge and EvDo etc. are
still in nascent stage in Pakistan and there are no affordable offerings
in the market
FTTx is a limited concept , targeted at high ARPU customers
VSAT is targeted toward Carriers and remote areas
Availability of low-priced CPE (customer premises equipment). CableModems, DSL terminals, media converters, etc. are now available at

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relatively low cost, mainly due to global downward price trends. On

the other hand, Wireless CPEs at affordable prices for average users
in Pakistan are not available as of yet
Sales force performance must match technological & product

improvements. Customized sales force (ladies sales force to hit
consumers in residential areas so they can interact with housewives)
will be helpful.
Create Talk-Value through TV shows, road shows, sponsorship (like

sponsoring of movie Ramchand Pakistani) by Wateen Telecom
Ensure that technological edge is converted into viable products
Create an impression of association. Just like Indigo, Wateens

broadband platform should create a sense of platform giving
birth to Family Products
Hit national segments. This can be done through reseller model
Identify emerging segments. Through broadband platform, housewife

segment can be attracted by making arrangements for Beauty &
Fashion tips either through phone line service or internet. It may
include guidelines on hair style, life style, quality personality etc
Seizing the opportunity by converting needs of the masses into

revenues. So it will be a win-win situation for both firm as well as
customers
Benchmarking needs to be done. For example different KPIs need to

be developed for utility sales, staff/revenue, business centre head
count etc against known brand in telecom services
Promotional schemes are required to create a buzz word about

Wateen broadband services from all platforms. These motivational
campaigns can bring in positive word of mouth.
Advertisement alone is not sufficient. It must be supplemented by

sophisticated sales force, product availability (standard & tailored).
Last but not least, following proverbs reflect indicative roadmap for
Broadband:
If you dont have a competitive advantage, dont compete

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-Jack Welch, GE
If you dont have strategy, you will be permanently reactive and part of
somebody elses strategy
-Alfred Toffler, the well-known futurist

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3.
Market Problem and Opportunity

3.1.
Market Problem
Broadband can help accelerate socio-economic development by efficient
and cost effective access to information. It is an accelerator of economic
development because it provides:- easy and cost effective access,
provides direct and indirect benefits ranging from increased productivity,
creativity in job performance, more knowledge, economy jobs, bundling
of new services, higher efficiency gains, computer and network-related
equipment uptake, enhancement in skill based e-business takeoffs and
other ICT related services.
But we have to come out of dreams and dig out associated constraints
and come up with doable initiatives. On demand side we have factors like
affordability (prices), skill and uptake (low literacy rates, absence of social
capital), poor availability of local content and poor availability of quality
and need-based e-services. On supply side, constraints include; nonavailability of dependable power supply, relevant wireless coverage and
spectrum, quality of access and low corporate absorption strength.
Talking particularly about broadband penetration in Pakistan, it is evident
that this country is underserved. Different initiatives by Government of
Pakistan, in the form of USF, and entry efforts by different Telcos are
encouraging but not satisfactory. Businessman should be given an
opportunity to keep in contact with business community round the world.
On other hand, a student should have the privilege to download academic
literature.
All
this
desperately
requires
broadband
infrastructure.
Broadband being engine for economic-growth in country needs to be

proliferated. Market needs reliable, secure and in-expensive always-on
broadband platform.
Following are key pain pints related to broadband penetration:-

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Right mix of features and pricing to appeal to consumers.
Business users require ubiquitous coverage.
Users are very interested in a wireless broadband service that will

allow them to connect multiple devices under a single service
plan.
Consumers require a service that can meet both their at home and
away Internet needs.
Wateen Telecom being pioneer in wireless broadband can create history

by fulfilling gap between demand and supply through multiple service
platforms: FTTx, Wi-MAX, VSAT, DSL etc. The broadband market
landscape shows that there is enormous opportunity to grow and
pioneering Wateen has wide scope to play its inning. The company has
been successful in brand activation through mass media advertisement.
Positioning is also there, i.e. customers perceive that Wateen is going to
cater for their broadband requirements. But challenge lying ahead is how
to optimize network and service offering, how to tackle customer
acquisition issues, customer support and after sale support. All these
factors are critical in broadband penetration in Pakistan and it is also
crucial for Wateen Telecom to enhance its market share.
3.2.
Market Opportunity
The telecom industry is one of those richly interesting points in its history
where many different types of migration seem to be happening at the
same time. In the service provider back office, there is the migration to the
era of customer self-maintenance, in which automated network
management and remote self-service capabilities are changing how
broadband service is activated and administered. In the network core,
carriers are migrating to IP multimedia subsystem architectures that are
simplifying how different types of communications traffic are treated,
creating a more structurally open and operationally efficient network
environment. And at the access level, carriers are continuing to migrate to

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new forms of broadband access, Wired: FTTx, DSL, HFC and Wireless:
WiMAX, CDMA, VSAT etc being among the latest.
Wateen Telecom Pvt. Ltd is in a position to capitalize on its assets &
capabilities (in the form of presence of national footprint comprising of
country-wide IP/MPLS core, SDH/DWDM based optical transmission
backbone, metropolitan optical fibre networks, well-accepted HFC
network in DHA Lahore). Company can get first mover advantage by
capturing major chunk of broadband market as company possesses all
infrastructure required to help broadband take-off is in place. Following
statistics are snapshot of broadband penetration in Pakistan.
Total broadband subscribers
Approx. 180,000
Wireless subscribers
Approx. 40,000
Overall penetration in Karachi
0.319 %
Overall penetration in Lahore
0.48 %
Overall penetration in Islamabad
0.6 %
Smaller cities haven even 0% penetration or second degree of decimal on

maximum at best. Total landline line telephony is 4.5 Million and WLL are
2.3 Million.
Market size is assumed to be 1.6 Million by year 2010 and company has
enormous opportunity to create competitive advantage in broadband in
accordance with 1 % penetration as anticipated by Govt. of Pakistan by
year 2010.

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4.
Platform Description
4.1.
OFC
Long Haul
The Long Haul Network was conceptualized in order to overcome
limitation introduced by PTCLs outdated and congested network
for Warid traffic. The Optical Fiber Connectivity (OFC) network
was intended to act as a strategic advantage for Warid over its
competition and provide abundant capacity to ensure quality of
service for Warid Telecom.
Costing a total of $100 Million in capital expenditures, this fully

redundant trunk provides long distance data/voice transfer, out
running PTCLs long haul in terms of both pricing as well as
quality. The total length of the Optic Fiber Trunk is 5,500 km, with
the ring being self healing. The Hybrid G652/G655 fiber for the
long haul trunk is imported directly from France, with the trunk
being designed with 24 pair fibers kept in mind. A total of 71 cities
are covered, catering to not only the telecom industrys
requirements but also other media intensive activities such as
video transfer and data management.
Metro Network
Fiber Infrastructure is the backbone of any carrier. It is the asset of
the company buried in the ground as its value is achievement of
transport levels of 40 Gbps on a single pair of Fiber Spur. Cellular
Operators demand Extensive fiber footprints within Metropolitan
areas to stream capacities on these networks and pay a very high
cost to achieve quality which outlines a major retention plan for
their customers.

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Objective of a fiber infrastructure in the Metro would be to provide

highest quality transport and communication needs to carrier
clients for data communication over a quality national scale
infrastructure owned and operated by Wateen. In result, Wateen
guarantees to ensure quality in businesses planned in Metro
Cities for its own products and services complimented.
Platform Objectives
Wateen Telecom focuses to de-monopolize PTCL in the carrier market
and offer high speed, reliable solutions at competitive prices.
Wateen intends to offer a secure networking solution to all those
companies in Pakistan who want to exchange data between different
geographically dispersed locations over fiber optic cable. These
companies require high-speed and reliable data connectivity and consider
it a strategic competitive advantage over their competition.
Strategic Alignment
Wateen Telecom is in a business of offering solutions, dark fiber/managed
capacity,
over
optic
fiber
as
the
core
medium
along
with
Fiber/WiMAX/Ethernet Bridges as the last mile options. The above

mentioned products focus on the usage of same infrastructure,
comprising of the investment already made, targeting the carrier market
with minimal incremental costs.
Platform Delivery
Long Haul
Network Readiness

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Point-to-Point and Protected Point-to-Point Protection

Just as it normally takes a pair of wires to deliver electricity,
similarly, a pair of fibers is needed to deliver network connectivity.
In many common network scenarios, however, you may find that
you actually want more than two fibers; although in a pinch you
can actually make do with only a single fiber. To understand why,
you need to develop a pessimistic network engineering mindset,
recognizing that any fiber you deploy will exhibit a perverse affinity
for backhoes, brushfires, hungry rodents, and sundry other natural
disasters, all aimed at destroying your connectivity.
The normal solution to this problem is to deploy fiber redundantly
along two physically separate routes, thereby insuring that if a
backhoe cuts the pair of fibers you happen to be using, traffic will
automatically reroute onto the backup (protection) pair. Clearly,
this is not a particularly elegant solution nor a particularly cheap
one, but if the circuit is crucial, or if its running through remote
areas where quick repairs would be difficult, its routine to spend
whatever it takes to get the required backup circuit deployed, even
though that may mean doubling (or more than doubling) the cost.

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Optic Fiber Properties

Wateen has deployed a state-of-the-art optical fibre transmission
network with a vision to provide faster, more reliable and more
ubiquitous connections at lower costs (Error: Reference source
not found). Optical fibre, due to its superior transmission
capability, forms the foundation for todays optical networks. In
order to unleash the vast potential of fibre, Wateen has decided to
opt hybrid configuration of fibres with upgraded specifications of
International Telecommunication Union (ITU) as G.652-D defines
a full-spectrum, low water peak with low Polarization Mode
Dispersion (PMD)1 along with G.655 NZ-DSF for long distance,
high data rates communications.
Metro Network
Network Readiness
In Phase-I Wateen Telecom deployed 96 Core hybrid (12 G.655 &
84 G.652-D) Metro Optic Fiber Rings in major Metropolis i.e
Lahore, Karachi & Islamabad/Rawalpindi in order to extend optic
connectivity to majors corporate hubs and other Telecos
infrastructure sites. This connectivity subsequently extended to
Phase-II sites located at Faisalabad, Multan, Sukkar, Peshawar,
Gujranwala, Sargodha, Quetta, Gujrat, Hyderabad, Jehlum,
Sialkot etc. The deployment of this state-of-art-network plays a
major role to meet point-to-point media requirements of Telecom
market as well as to extend the services to the other corporate
1
Polarization mode dispersion (PMD) is a form of modal dispersion where two different polarizations of
light in a waveguide, which normally travel at the same speed, travel at different speeds due to random
imperfections and asymmetries, causing random spreading of optical pulses. Unless it is compensated,
which is difficult, this ultimately limits the rate at which data can be transmitted over a fiber.
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customer and strategic business partners of Wateen Telecom by

providing Quality of Service to the fullest satisfaction of its valued
customers.
Following are the details of the fiber lengths extended in metro
cities:
S.#
City
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Faisalabad
Jhelum
Sahiwal
Gujrat
Gujranwala
D.I.Khan
Sukkur
Quetta
Sialkot
Sargodha
Multan
Peshawar
Abbotabad
Hyderabad
Karachi
Islamabad
Lahore
TOTAL
G. TOTAL
Length(m)
Existing
Expansion
118
76
84
278
77
18
14
27
43
17
10
49
49
22
46
45
29
32
33
25
75
610
887.6
Currently Wateen is in the mode of evaluating solutions to be

implemented to light the fiber for metro network connectivity. The
activation of the network can be done through either Active or
Passive devices, where the former require no electrical power to
split the optical signals and the latter devices are powered.
Passive Optical Network (PON) solutions are devised for passive
device connectivity, whereas Metro-Ethernet (ME) solutions are
used for active device connectivity. Following is a brief detail of the
technologies:

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Passive Optical Network (PON)

A PON is a point-to-multipoint, fiber to the premises network
architecture in which passive optical splitters are used to enable a
single optical fiber to serve multiple premises, typically 32. A PON
consists of an Optical Line Termination (OLT) at the service
provider's central office and a number of Optical Network Units
(ONUs) near end users. A PON configuration reduces the amount
of fiber and central office equipment required compared with point
to point architectures.
Downstream signals are broadcast to each premises sharing a

fiber. Encryption is used to prevent eavesdropping. Upstream
signals are combined using a multiple access protocol, invariably
time division multiple access (TDMA). The OLTs "range" the ONUs
in order to provide time slot assignments for upstream
communication
Metro Ethernet (ME)
A Metro Ethernet is a computer network based on the Ethernet
standard and which covers a metropolitan area. It is commonly
used as a metropolitan access network to connect subscribers
and businesses to a Wide Area Network, such as the Internet.
Large businesses can also use Metro Ethernet to connect branch
offices to their Intranets.
A typical service provider Metro Ethernet network is a collection of
Layer 2 or 3 switches or routers connected through optical fiber.
The topology could be a ring, hub-and-spoke (star), full mesh or
partial mesh. The network will also have a hierarchy; core,
distribution and access. The core in most cases is an existing
IP/MPLS backbone, but may migrate to newer forms of Ethernet
Transport in the form of 10G or 100G Rroad to 100G speeds.

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Ethernet on the MAN can be used as pure Ethernet, Ethernet over

SDH, Ethernet over MPLS or Ethernet over DWDM. Pure
Ethernet-based deployments are cheap but less reliable and
scalable, and thus are usually limited to small scale or
experimental deployments. SDH-based deployments are useful
when there is an existing SDH infrastructure already in place, its
main shortcoming being the loss of flexibility in bandwidth
management due to the rigid hierarchy imposed by the SDH
network. MPLS based deployments are costly but highly reliable
and scalable, and are typically used by large service providers.
L2VPNs / Clear Channel Circuits
Wateens clear channel circuit or layer 2 MPLS VPN (also known
as L2VPN), will be a point-to-point pseudo-wire service. It will be
used to replace existing physical links based on TDM circuits. In
this scenario, an Ethernet wire will be handed to the customer who
will either connect it to a layer 2 switch or a router, depending on
which layer the customer wants to build the solution on top off.
This model will mostly be suitable for customers who have a
traditional hub and spoke network topology. All sites will connect to
an aggregation site which will serve as the regional hub resulting
in a point to multipoint link between the aggregation site (the hub)
and the remote sites (spokes). The following diagram depicts a
typical deployment at the customers end.

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Layer 3 IP VPNs
Wateen Telecoms MPLS Core provides ability to provide L3 VPN
services to its customers. Customers can start with at least two
offices connected to Wateens network. These two networks can
then be connected through MPLS based VPN across the MPLS
core. The last mile connectivity enables customer to reach nearest
PE router of Wateens MPLS Core. The last mile connectivity
between CE router and PE router is pure Layer 2 domain. Once
customer is connected to PE, PE initiates a separate routing
instance for that customer and populates virtual routing table
having routes for that CE node in it, this virtual instance is
associated to that dedicated instance for router for the customer. A
customer can selectively allow some other customer of Wateen to
have restricted access of its routes. This creates Extranets,
businesses uses extranets to take advantages of horizontal or
vertical integration.

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L3 VPNs can be offered to the customers in both point-to-point

and point-to-multipoint configurations. This allows the customers
to have any to any connectivity on their network by creating a
mesh as given in the following illustration. This provides the
customers with the flexibility of designing the VPNs according to
their requirements.
IP/MPLS Security
This
portion
borrows
heavily
from
Ciscos
technical
documentation. IP/MPLS VPNs can exist in a point-to-point, point

to multipoint, or multipoint to multipoint configuration. VPNs
always exist in the form of point to point links where data is
encrypted at the terminal equipment of one user which is
decrypted at the terminal equipment of the other user. The
following diagram illustrates how the VPN connectivity is
established between different sites. The diagram shows how two
different enterprises, using the same service provider, establish
two separate VPNs.

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Data and Routing Separation between VPNs

It is a requirement for enterprises that the address space between
the MPLS core and all VPNs on the same shared network be
independent, so that each customer can use the same address
space without interfering with other customers. That is, every VPN
customer and the core itself must be able to use the entire IPv4
address range completely independently. Similarly, data traffic
from each VPN must remain separate, never flowing to another
VPN. A related requirement is that routing information for one VPN
instance must be independent from any other VPN instance and
from the core.
Routing Separation
To achieve routing separation among VPNs, MPLS VPNs apply
the following principles:
Each VPN is assigned to a Virtual Routing and Forwarding (VRF)
instance - Every provider-edge router maintains a separate VRF
instance for each connected VPN. Each VRF on the provideredge router is populated with routes from one VPN, either through
statically configured routes or through routing protocols that run
between the provider-edge and the customer-edge router.
Because every VPN is associated with a separate VRF, there is
no interference among the VPNs on the provider-edge router.

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Unique VPN identifiers - To maintain routing separation across the

core to the associated provider-edge routers, unique VPN
identifiers such as the route distinguisher are added to the multi
protocol Border Gateway Protocol (BGP). VPN routes are
exchanged across the core only by multi protocol BGP. This BGP
information is not distributed again to the core network, but only to
the associated provider-edge routers, which keep the information
in VPN-specific VRFs. Thus, routing across a MPLS network
remains separate for each VPN.
Traffic Separation
MPLS-based VPNs adhere to the "true peer VPN" modelthat is,
they perform traffic separation at Layer 3 through the use of
separate IP VPN forwarding tables. MPLS-based VPNs enforce
traffic separation between customers by assigning a unique VRF
to each customer's VPN. Forwarding within the service provider
backbone is based on labels; MPLS sets up label-switched paths
(LSPs), which begin and terminate at the provider-edge routers.
The provider-edge router determines which forwarding table to
use when handling a packet because each incoming interface on
a provider-edge router is associated with a particular VPN.
Therefore, a packet can enter a VPN only through an interface
that is associated with that VPN.
By maintaining separation among addressing plans, routing, and
traffic, the MPLS IP VPN core network architecture offers the
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same security as comparable ATM- or Frame Relay-based

L2VPNs. It is not possible to intrude into other VPNs or the core
through the MPLS IP VPN network.
Resistance to Attacks
Resistance to attacks on a corporate network is essential for
business continuity. Therefore, it is important for enterprise
customers that the service provider ensures that its core network
routers cannot be reached from outside the network to perpetrate
a denial of service (DoS) attack. Service providers prevent their
routers from being reachable by using packet filtering, and
optionally by hiding addresses. Use of access control lists (ACLs)
limits access only to the port(s) of the routing protocol, and only
from the customer-edge router.
To attack an element of a MPLS network, the attacker must know
its address, which is hidden from the outside world. Therefore, an
attacker must resort to guessing at core router IP addresses and
sending packets to these addresses. Unfortunately for the
attacker, address separation mechanisms in MPLS result in each
incoming packet being treated as belonging to the address space
of the VPN customer. Therefore, it is not possible to reach an
internal core router even through IP address guessing.
Impossibility of VPN Spoofing
Both Layer 2 and Layer 3 VPNs must be resistant to
impersonation attacks, such as packet spoofing and replay
attacks. To launch a VPN spoofing attack, the attacker provides
false information about their identity to obtain unauthorized access
to a VPN and its associated services. The attacker usually
generates packets with bogus source addresses. Impersonation of
devices is attempted by sending data packets that the receiver
believes are valid but might have been spoofed. Typically, this

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type of attack is used to change routing information, gain access

to authentication sequences, and then use this information to
attain unauthorized access
.
On IP networks, IP source address spoofing has been extensively
abused by hackers and is a major security concern. In an MPLS
environment, it is possible for a VPN customer to do IP source
address spoofing, but because there is a strict separation between
VPNs and between a VPN and the core, it is not possible to use
this mechanism to attack other VPNs or the core. IP spoofing of
this nature remains within the VPN where it originated.
Label spoofing is not possible in an MPLS environment. The
interface between any customer-edge router and its peering
provider-edge router is a pure IP interface without labels. If a
labeled packet is sent from a VPN to a provider-edge router, the
provider-edge router automatically drops it.
Summing it all up
Similar to L2VPN services, MPLS VPN networks provide full
address and traffic separation, and hide addressing structures of
the core network and the VPNs. It is not possible from the outside
to intrude into the core network or VPNs by abusing the MPLS
mechanisms. Neither is it possible to intrude into a properly
secured MPLS core. The table below summarizes MPLS VPN
myths and facts.
Myths
True/F
alse
"MPLS is IP-based
and, therefore,
False
intrinsically
insecure"

Explanation
MPLS augments native IP-based networks with a broad

spectrum of data separation, route separation, packet
filtering, and network concealment mechanisms. MPLSbased VPNs offer the same security as traditional VPN
types, such as Frame Relay and ATM. An example of a
popular MPLS-based service is company intranets.
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"One MPLS VPN

customer can
intrude into
another
customer's VPN"
False
MPLS VPNs are completely isolated. It is impossible to

intrude into a VPN either from the Internet or another VPN.
"MPLS VPNs are

susceptible to DoS
False
attacks from the
outside"
Pure MPLS VPN networks are fully secured. MPLS VPNs

that share access with the Internet are completely safe from
DoS attacks if the provider-edge router provides VPN
access only.
"Even a provideredge router used

exclusively for the False
VPN is susceptible
to DoS attacks"
While this is true in theory, in practice it is false because it is

very easy to identify and disconnect the offender and to
prosecute.
Metro Fiber Rings

Owing to the ever increasing demand for high bandwidth
connectivity within the cities, Wateen is deploying Metro OFC
network in major cities of the country. Customers will be given last
mile on Fiber where bandwidth requirements are greater than 4
Mbps. Owning to Wateens own metro rings, the length of fiber to
be laid for a particular customer will range anywhere from a few
hundred meters to 10 kms or more.
From a customer standpoint, three of the most important problems
being faced by them are:
1) Lack of SLA driven approach in providing connectivity due to
poor support systems by existing service providers. Customers
expect an availability of 99% or higher, whereas PTCL was
previously offering only an availability of around 95%. Only after
PTAs recent announcement on SLA requirements2 has PTCL
started offering more stringent SLAs. However, considering the
size of PTCL, it will take them quite a while to align themselves
2
Available on PTAs website at http://www.pta.gov.pk

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onto a more customer-centric approach. Additionally, ISPs are in

effect limited in their service-delivery capabilities due to reliance
on PTCL. Wateen will address this customer requirement by
offering stringent SLAs delivering an availability of 99% or higher.
Our approach towards designing the SLA is attached as Annexure
A-1, and A-2.
2) The predominant mode of data connectivity that exists in
Pakistan is clear channel circuits. Clear Channel circuits, being
dedicated circuits, require a lot of investment in infrastructure for
point to point links. In addition, expansion capabilities of
organizations become somewhat limited, since new dedicated
circuits have to be established between sites. Wateen will address
this issue by providing IP-VPNs that lower the investment required
in acquiring and housing the equipment, while at the same time
providing
any-to-any
connectivity
capabilities
without
any
investment in infrastructural support.

3) Currently, customers have to deal with multiple service
providers for gaining connectivity. This creates inefficiencies
across the communications chain, as dependencies exist between
different service providers for service delivery. In addition,
telephony, Internet and Data connectivity is typically being
provided by different service providers, thus making the task of
managing different accounts quite complex. Wateen will address
this issue by providing a one window operation for all connectivity
needs due to IP-convergence and availability of various last mile
delivery technologies suited to different terrains.
4.2.
FTTX
Fiber to the Curb (FTTC) is the installation of optical fiber to within several
hundred feet of the home or office. At that point, the optics is converted

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into electronics for delivery into the premises, typically using Coaxial
Cables. Such a technology is thus termed as Hybrid Fiber Coaxial (HFC).
Apart from HFC, another technology that Wateen will be utilizing is the
Gigabit Passive Optical Network (GPON). GPON is a faster point-tomultipoint, fiber to the premises network architecture in which nonpowered optical splitters are used to enable a single optical fiber to serve
multiple premises. GPON is an innovation unlikely to be replaced in the
near future, and the biggest advantage it enjoys over HFC is the
capability to transfer much greater bandwidth: 1 Gbps versus 37 Mbps on
HFC.
The products being offered through this network is primarily targeted
towards consumer segments. This includes
Broadband Internet
Telephony
Cable TV (Both Analog and Digital)
Security and Surveillance
VAS (Gaming and Portal)
Platform Objectives
Through bundling basic communication means into a package like triple
play services, Wateen Telecom will be able to benefit customers in such a
way that service quality and maintenance standards of these three
services are met. Customers will be able to enjoy tailor-made packages to
cater to their individual needs. Wateens triple play package will also
avoid the hassle of multiple bills with different deadlines hence saving
valuable time for the customers. Moreover, the high bandwidth offered on
GPON network ensures catering to high bandwidth requirements in future
to run bandwidth savvy applications.

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Strategic Alignment
Wateen Telecoms vision, evident from its proposition We Connect, has
been to revolutionize the means of communication for everyone. The
triple play service is the first step in starting such a process of revolution.
Wateen triple play service is indeed a one of a kind complete
communication bundle that will not only meet customers communication
requirements but hopes to exceed them on the reliability, affordability and
quality front.
FTTx and triple play will be complementing Wateen existing infrastructure.
They will simply be extending the platforms and products that it has
already established. The FTTx network will be connected to the metro
rings and will be extending connectivity to the neighborhood level. Triple
play will be providing all the WiMAX products (Internet and voice) plus
cable TV. Triple play will thus be providing the only product i.e. cable TV
that Wateen lacked in its previous products and needed to complete its
offering of basic communication services.
Wateens existing forays into telecommunication are going to provide both
the resources and the competencies needed to succeed in the
deployment of FTTx and the provision of triple-play. Wateen already has
the back-end infrastructure in the form of metro rings that it will be using
to extend its FTTx network from. Also, it already has the back-end
infrastructure needed to provide Internet and voice since it is already
using it to deliver these products on WiMAX. Therefore, the incremental
cost to Wateen of setting up the network and providing triple play will be
lesser since it will be able to synergize off its existing resources. Based on
this, we believe that the expansion of FTTx and the provision of triple-play
to consumers are in line with Wateens vision and existing businesses
and competencies.

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Platform Delivery
HFC:
CMTS: Cable Modem Terminal System, used to

provide return path services to consumer like internet
& voice.
ONU (Optical Node Unit) Fiber cable terminates at

ONU, signal carries through co-axial cable beyond the
node.
Amplifier: Strengthen the signal to reach till customer

premises
Tap: Split signal into multiple outputs to connect drop

cable coming out from customer premises.
GPON:
Following figure shows Passive Network architecture;

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OLT (Optical Line Terminal): The fiber link is terminated at

a Optical Line Terminal, It is interface to the fiber link
connecting the back end equipment to the customer
premises equipment or CPE.
Optical Splitter: splits signal into 64. Each splitter connects

with OLT through dedicated fiber and 64 customers can be
connected through 1-splitter.
ONT (Optical Network Terminal)/ ONU (Optical Network

Unit): Used at customer premises for the termination of
fiber. Both terms have the same meaning, but ONU is
IEEE terminology and ONT is ITU terminology.
4.3.
DSL
DSL is trusted last mile solution deployed country wide by PTCL and
other players to capitalize unmet Broad Band demand of internet users.
DSL is capable to meet Hi Speed Internet demand of corporate users ,
SMEs , SOHOs and MNCs . High Speed Internet ranges from 256K to
2Mbps while covering 5Km to 6Km in planned areas like DHA , Army

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Societies , Cantonment etc. Hence broad coverage is unique feature of

DSL and keep it as First Choice of customer
Platform Objective
Considering the market potential of Broad Band, Wateen has planned to
deploy DSL infrastructure in 91 sites of 22 Wi-max cities to provide back
up option to corporate clientele while serving high ARPU residential
areas in spillover.
Currently 928 sites of Wi-Max are serving 30K Broad Band customers in
22 cities which will increase to 70K with successful deployment of DSL
Platform. Hence companys vision and mission will gain dramatic
reinforcement.
Strategic Alignment
Wateen has planned to serve Wi-Max covered cities so that company
could gain 100% Broad Band penetration and prime market share.
Corporate clientele will get cost effective last mile back up solution for
their data centers and offices. Hence DSL will ensure 100% up time thus
fulfilling corporate demand and gaining customer satisfaction.
DSL deployment will incur nominal additional cost for HR hence saving
company resources for future investments.

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Platform Delivery
Below figure reflects generic core network architecture for DSL operators
Following is description of different components:
4.4.
DSL modem is used to transport data from customer to DSLAM
DSLAM is used to split voice and data incoming from customer
BRAS is used to terminate PPPOA/E requests from DSLAM
DHCP server will assign IP to customer
AAA will authenticate, authorize and account customer information
Internet gateway will help user to access internet cloud
VSAT
VSAT is media to provide Satellite based multiple services to carry voice,
data, video and internet. Technology is formed to reach anywhere and
everywhere according to needs and wants of customers. VSAT is
primarily used in areas where no telecom infrastructures are available or

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rapid deployment is required, its one of The most secure point to point
and point to multi point media. Some well known services being offered at
this platform are SCPC, MCPC, DVB-RCS and TV up-linking.
Platform Objectives
Company aims to achieve following objectives through VSAT platform:
Quick-Win. Rapid rollout (as compared to any other media) to

tap existing market
Access anywhere and everywhere
Most reliable and secure media
Supporting GSM operators to operate in areas with Telecom

infrastructure
Encourage & promote wireless broadband access (WBA)
Becoming the largest VSAT services provider in this region
Strategic Alignment
Vision and mission of Wateen Telecom are being reproduced (in order)
below.
Vision
To launch Pakistan into the 21st century digital revolution by
providing
complete
communication
solutions
to
Telecom
Operators, Corporate customers, Consumers and to be the

leading Carriers Carrier through world-class cutting-edge
network by delivering a broad range of reliable, affordable and
quality customer-centric services.
Mission
o
To provide affordable communication services that meets

and exceeds customers' requirements
To deliver high-quality, flexible and innovative solutions that

are cost effective and conducive

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To provide complete customer satisfaction on time, every

time
Management of Wateen Telecom has envisioned reducing the

digital divide. VSAT platform can help company to achieve its
strategic business goals. Abridging the digital divide is foremost
business goals of the company and in line with companys vision
to bring digital revolution. Wateen Telecom is emerging telecom
leader in both corporate and consumer market segments. This
platform is aimed to strengthen companys ambitions to provide
full range of nimble product & services.
Wateen Telecom is first telecom operator in private sector which
conceptualized and materialized country-wide optical transmission
network. In order to provide VPN connectivity across three
metropolitan cities, i.e. Lahore, Karachi, Islamabad, metro optical
fibre connectivity was established. This extended up to other cities
and now Wateen posses ring-structured metro optical network in
17 cities. This has given company an edge over regional telecom
operators. Additionally, companys pilot HFC project in DHA
Lahore has obtained very good response and approx. 90 %
residents of this locality are enjoying triple play services at
affordable price.
VSAT platform is another success story on the telecom canvass.
This is consistent with companys mission to promote cutting-edge
technology. This will be integrated with existing infrastructure. With
the presence of FTTx and DSL platforms, WiMAX and VSAT is
going to help company create an image of integrated services
provider where company is fulfilling needs of corporate customers
as well as consumers.

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Additionally, concept of personal broadband is in congruence with

mission of the company to be customer-centric.
Platform Delivery
Below figure reflects generic core network architecture for GSM operators
Following are description of different components:
VSAT antenna: Are available with different dimensions starting

from 1.2M to 11M for both Ku and C-Band
Satellite Modem: Capable to carry data from 9.6KBps to 4xE1s
BUC: Block up convertor starting from 2W to 1000W requirement

depends upon media size, used transmit data
4.5.
Combiner / Splitter; To convert multiple carriers into single carrier
WiMAX
Below table shows matrix between novelty of markets and novelty of
technology.

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Novelty of technology
High
Technological:
New
Complex:
solutions
to
Technology and market
existing problems
co-evolve
Differentiated:
Architectural:
Compete
on
and features
quality
Novel
combinations
of
existing technology
Low
High
Novelty of markets
Table 1: Technology and market maturity matrix

This matrix gives indication that we have new solutions to existing
problems especially for telephony and internet where novelty of markets
is lower however novelty of technology is high (WiMAX/FTTx/VSAT
platform). This comes under Technological domain. However, online
gaming, portal and security & surveillance describe Complex where
technology and market co evolve. As a whole WiMAX is new technology
which is supposed to provide a platform for the resolution of existing
problems by offering new solutions as well as giving birth to new markets
like gaming and security & surveillance. Problems of repeated
disconnects, lossy last mile copper lines by the incumbent are creating
space for new technology like WiMAX to be adopted and relied on,
whereas iPod generation is ready to embrace new technological
evolution.
WiMAX is the network industry term for a standard form of wireless
broadband networking. WiMAX is designed to support long-distance
wireless connectivity to the Internet in areas not serviced by cable modem
or DSL. It is the trade name for a family of new technologies related to the
IEEE 802.16 wireless standards. It has the potential for very long range
(5 - 30 miles) and high speeds.

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The initial version, based on 802.16a, is designed for fixed (non-mobile)

applications only, such as a wireless replacement for home DSL or cable
modem service. Newer versions, such as 802.16e, add support for
mobility, potentially making WiMAX a competitor for certain 3G or 4G cellphone technologies.
Platform Objectives
Company aims to achieve following objectives through Wi-MAX platform:
Quick-Win. Rapid rollout (as compared to FTTx) to tap existing

market
Encourage & promote wireless broadband access (WBA)
Provide state of the art products (voice & telephony)
Active participation in broadband penetration in Pakistan
Encourage narrowband users to convert into broadband
Phased introduction of wireless broadband. Initially platform will

provide broadband service in 22 cities. Later, network will be
expanded to 71 cities, where Wateen Telecom has carrier-grade
tele-housing facilities.
Strategic Alignment
Vision and mission of Wateen Telecom are being reproduced (in order)
below.
Vision
To launch Pakistan into the 21st
providing
complete
century digital revolution by
communication
solutions
to
Telecom
Operators, Corporate customers, Consumers and to be the

leading Carriers Carrier through world-class cutting-edge
network by delivering a broad range of reliable, affordable and
quality customer-centric services.
Mission

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To provide affordable communication services that meets

and exceeds customers' requirements
To deliver high-quality, flexible and innovative solutions that

are cost effective and conducive
To provide complete customer satisfaction on time, every

time
Management of Wateen Telecom has envisioned reducing the

digital divide. Wi-MAX platform can help company to achieve its
strategic business goals. Abridging the digital divide is foremost
business goals of the company and in line with companys vision
to bring digital revolution. Wateen Telecom is emerging telecom
leader in both corporate and consumer market segments. This
platform is aimed to strengthen companys ambitions to provide
full range of nimble product & services.
Wateen Telecom is first telecom operator in private sector which
conceptualized and materialized country-wide optical transmission
network. In order to provide VPN connectivity across three
metropolitan cities, i.e. Lahore, Karachi, Islamabad, metro optical
fibre connectivity was established. This extended up to other cities
and now Wateen posses ring-structured metro optical network in
17 cities. This has given company an edge over regional telecom
operators. Additionally, companys pilot HFC project in DHA
Lahore has obtained very good response and approx. 90 %
residents of this locality are enjoying triple play services at
affordable price.
Wi-MAX platform will be another success story on the telecom
canvass. This is consistent with companys mission to promote
cutting-edge technology. This will be integrated with existing
infrastructure. With the presence of FTTx and DSL platforms,
WiMAX is going to help company create an image of integrated

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services provider where company is fulfilling needs of corporate

customers as well as consumers.
Additionally, concept of personal broadband is in congruence with
mission of the company to be customer-centric.
Platform Delivery
Below figure reflects generic core network architecture.
Figure 2: WiMAX generic network architecture

Following is description of different components:
SS/MS: the Subscriber Station/Mobile Station
ASN: the Access Service Network
BS: Base station, part of the ASN
ASN-GW: the ASN Gateway, part of the ASN
CSN: the Connectivity Service Network

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HA: Home Agent, part of the CSN
AAA: AAA Server, part of the CSN
NAP: a Network Access Provider
NSP: a Network Service Provider
Also there are number of interconnections (or reference points) between

these, labeled R1 to R5 and R8.
This architecture is flexible enough to allow remote/mobile stations of
varying scale and functionality and Base Stations of varying size.
End to end network description is given below.
Figure 3: WiMAX end to end platform description

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5.
Market Overview and Analysis

5.1.
Market/Customer Overview
Two major market segments are corporate & consumers. Corporate may
include carriers, SME/SOHO, Enterprise & Govt. On consumer side, we
may have again classification of high end consumers and general
consumers. The customer value proposition can involve elements such as
providing to customers:
A good value of money in terms of perceived trust and satisfaction
Excellence on an important product or service attribute such as

crystal clear voice and always-on internet connection
Product line breath (from telephony, to internet, to cable TV, to

security & surveillance)
5.2.
Innovative offering (future PCMCIA card built-into laptop)
Bundle Offering of products on different platforms
Market Size
GSM Operators
S/N
Organization
1
2
3
4
5
6
7
M/s Pakcom Limited

M/s Pakistan Mobile Company Limited
M/s CMPak Limited
M/s Telenor Pakistan Limited
M/s Warid Telecom Limited
M/s Pakistan Telecom Mobile Limited
M/s Special Communication Organization
Licensed Region
PAKISTAN
AJK/NA
Yes
No License
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No License
Yes
Brand
Name
Instaphone
Mobilink
Paktel
Telenor
Warid
Ufone
SCO
With reference to the offered Wateen product portfolio, the heavy

bandwidth requirement by the GSM Operators is catered by dark fiber
(Long Haul & Metro) or Lambda light-up. As such, CMPak and Warid
have already contracted one and two pairs respectively from Wateen on
the long haul network and now opting for metro dark fiber in various cities.
On the other hand, Mobilink has emerged as direct competitor to Wateen
as it is deploying its own long haul fiber network. And, Telenor has

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contracted with Multinet for long haul connectivity and Worldcall for metro
connectivity. Lastly, Ufone being a subsidiary of PTCL follows the policy of
not contracting with its parent companys competitor.
As a result, the GSM Operator market has reached saturation where SCO
and NTC remain as the only option to attract towards Wateens network.
Government Institutions
S/N
1
2
3
4
5
6
Organization
Higher Education Commission (HEC)
Water And Power Development Authority (WAPDA)
Embassies (US/UK/UAE etc.)
Pakistan Meteorological Department
Pakistan Software Export Board (PSEB)
Sui Northern Gas Pipelines Ltd. (SNGPL)
Recently, HEC has opted for dark fiber connectivity over long haul and
metro networks. In light of a similar comparison, WAPDA/SNGPL are
expected to generate heavy bandwidth requirements to be fulfilled
through either dark fiber or lambda light-up.
WLL/ LDI/ ISP

Previously, WLL/LDI operators had high bandwidth requirements to
entertain their prevailing customer base. However, in past 2-3 years,
small operators (like Callmate) have been driven out of the market due to
the drastic decrease in prices by PTCL. Eventually, the current market
consists of few large operators who can afford bulk bandwidths and
competitive prices steadily moving ahead with an approximate 5-10%
growth rate. Moreover, these operators are moving towards releasing
their dependency from PTCL collocations and opting for IP connectivity
rather than electrical interfaces. Hence, this sector had core requirements
relating to managed capacity which are now redirecting towards IP/MPLS
Data VPNs.
On the other hand, the ISPs have suffered a similar fate due to the drastic
decrease of prices by PTCL for IP Transit. This segment pie is not
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expected grow, rather large mergers/acquisitions (similar to acquisition of

WOL and Dancom by Orascom) are expected in the near future to
consolidate the market.
WLL Operators
S/N
1
2
3
Organization
Pakistan Telecommunication Company Limited
Telecard Limited.
Burraq Telecom Limited
4
5
6
7
8
DV Com Data (Pvt.) Limited

WorldCall Telecom Ltd.
Wateen Telecom (Pvt.) Limited
Great Bear Int'l (Pvt.) Limited
Cyber Internet Services (Pvt.) Ltd
9
10
11
12
13
14
15
16
Link Direct International (Pvt.) Ltd.

Super Dialogue (Pvt.) Ltd.
MyTel (Pvt.) Ltd.
Metrotel (Pvt.) Ltd.
Ertibatat (Pvt.) Ltd.
Defence Housing Authority
Sachal Satellite Communication (Pvt.) Ltd.
Sachal Softec (Pvt.) Ltd.
Licensed Regions
All Fourteen Regions
CTR, HTR, ITR, KTR, LTR,
NTR-I, NTR-II, RTR, WTR
KTR, LTR, ITR
FTR HTR, ITR, KTR, LTR,
MTR, NTR-I, NTR-II, RTR,
STR-I, STR-V, WTR
FTR, RTR
NTR-I
GTR
NTR-II
LTR
STR-I
STR-V
Legends: Following are the Telecom Regions:

i) Central Telecom Region (CTR). ii). Faisalabad Telecom Region (FTR). iii). Gujranwala
Telecom Region (GTR). iv) Hazara Telecom Region (HTR). v). Islamabad Telecom Region
(ITR). vi). Karachi Telecom Region (KTR). vii). Lahore Telecom Region (LTR). viii). Multan
Telecom Region (MTR). ix). Northern Telecom Region - 1 (NTR-1). x). Northern Telecom
Region - 2 (NTR-2). xi). Rawalpindi Telecom Region (RTR). xii). South Telecom Region 1(STR-1). xiii). Southern Telecom Region - 5 (STR-5). xiv). Western Telecom Region
(WTR).
LDI Operators

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S/N
1
2
3
4
5
6
7
8
9
Company Name
TeleCard Ltd.
DV Com Ltd
Wise Communication Systems (Pvt.) Ltd
Dancom Pakistan (Pvt.) Ltd
Wi-Tribe Pakistan Ltd
Wateen Telecom (Pvt) Ltd
Telenor LDI Communications (Pvt.) Ltd
Circle Net Communications Pakistan (Pvt.) Ltd.
4B Gentel International (Pvt) Ltd
LL Operators
S/N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Company Name
Dancom Pakistan (Pvt.) Ltd.
Blue Tel (Pvt.) Ltd.
World Online Previously (Cyber-Soft Technologies (Pvt.) Ltd).
Wise Communication Systems (Pvt.) Ltd.
NetSol Connect (Pvt.) Ltd.
Air Track Telecommunication (Pvt.) Ltd.
Call 2 Phone (Pvt.) Ltd.
WEB Concepts (Pvt.) Ltd.
Zari Telecommunications (Pvt.) Ltd.
Vision Telecom (Pvt.) Ltd.
Metrotel (Pvt.) Ltd.
Albadar Etisalat (Pvt.) Ltd.
Brain Ltd.
Hazara Communications (Pvt.) Ltd.
ION (Pvt.) Ltd.
Noman & Tanveer Telecommunications (Pvt.) Ltd.
Sohail & Inam (Pvt.) Ltd.
Telenex (Pvt.) Ltd.
Union Communications (Pvt.) Ltd.
Unified Technologies (Pvt.) Ltd.
Velocity (Pvt.) Ltd.
Z-Communication (Pvt.) Ltd. (CCZ)
Eagle.Com (Pvt.) Ltd.
Naya Tel(Pvt.) Ltd.
City Links Communications Ltd.
Cyber House (Pvt.) Ltd.
Poleax Telecom (Pvt.) Ltd.
Multinet Pakistan (Pvt.) Ltd.
Whistler Telecom (Pvt.) Ltd.
Global Touch (Pvt.) Ltd.
Frontier Telecom (Pvt.) Ltd.
Globecomm Wireless (Pvt.) Ltd.
Satcomm (Pvt.) Ltd.
IBEX Telecommunication (Pvt.) Ltd.
Habib Rafique International (Pvt) Ltd

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ISP
S/N
Company Name
1
2
3
4
5
BrainNet
Cybernet
Nexlinx
Supernet
Worldcall
Data Connectivity
The market for data connectivity comprises of various industrial sectors.
The role of IT is changing from one of a support function to that of a
strategic investment that adds value across the value chain. These
industrial sectors span, but are not limited to:
Banking and non-banking financial institutions
Manufacturing industries
Retail industry
Educational institutions
Governmental and semi-governmental organizations
Oil & Gas
Media
At present, Wateen caters to data connectivity through a multitude of

platforms (spanning WIMAX, DSL, DVB/RCS, wireless bridges, and
metro fiber) to ensure that it can meet all sorts of connectivity
requirements with respect to bandwidth and location diversity. Due to
these reasons, Wateen faces direct competition from ISPs and the
incumbent player, PTCL.
Consumer Broadband Internet

Internet is the newest technology on the communication frontier in
Pakistan. As a consequence it has the least penetration of all the three

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products being offered by Wateen. The market for Internet is limited by

accessibility to a personal computer as well as the ability to use it.
Because of this, most of the market for Internet is in the urban centres
where income levels and literacy ratios are higher.
Internet Users
Internet Subscribers
Broadband Subscribers
17 million
3.5 million
0.15 million
In the future, with new technology companies entering the market and
competition increasing, Internet tariffs are expected to decrease
dramatically, enabling more people to start using it. This change will be
reinforced by increasing income levels and a proliferation in computerusage skills.
Telephony
Fixed-line telephony has the second largest penetration, after TV,
amongst the three product categories that Wateen triple-play is involved
in. The current subscriber base for fixed-line telephony in Pakistan is
around 4,806,206. Given that there are 22.5 million households in
Pakistan, 21% of all houses have access to fixed-line telephones.
Total Fixed-Line Telephones
Fixed-Line Telephony Penetration
4,806,206
21%
By global standards, the teledensity in Pakistan is still very low. The

primary reasons for this low level is lack of infrastructure in rural areas,
low purchasing power, and a long and tedious process for obtaining a
fixed-line telephone. With economic conditions improving, living standards
are rising all over the country. Consequently, demand for fixed-line
telephones is bound to increase.
Cable TV
Television is one of the oldest and most prevalent technological
communication mediums in Pakistan with a very high penetration level.

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Currently in Pakistan, there are 22.5 million households, 7.5 million of

which are urban while 15 million are rural. In total, over 12.5 million, i.e.
56%, households own a TV. Out of these, 6 million are urban households
and 6.5 million are rural households.
The penetration of cable TV is around 6 million, meaning that 48% of all
TV owners have access to cable TV. Most of these 48%, however, are in
the urban centers where availability of cable TV is nearly 100%. In the
rural areas, the reasons for low cable penetration are, primarily, nonavailability of a cable network, and, to a lesser extent, the inability to pay
the monthly tariffs due to low incomes.
Total Households
Total Households with TV
Total Cable TV Subscribers
5.3.
22.5 million
12.5 million
6.0 million
Market/Customer Segmentation
Cellular and Government Sector
The combined size of cellular and government sector is approximately US
$107.5 million at the current PTCL rates. The government sector still
needs to be explored and the bandwidth requirements are expected to
grow exponentially for this sector. The products targeted at this sector
are:
Product
Dark Fiber
Sector
Cellular
Government
X
X
Wavelength
Ethernet Service
2.5 Gbps 10 Gbps 100 Mbps 1 Gbps

X
X
X
X
X
X
Leased Circuits
E-1
X
X
E-3
X
X
STM-1 STM-4
X
X
X
X
LDI and WLL Sector

This sector can only be captured through complete end-to-end solution
delivery through Digital Transit Exchange (DTE) connectivity as shown in

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diagram below and sizable discounts over PTCL. The operators are ready
to sign exclusivity for this solution.
Product
Dark Fiber
Sector
LDI
WLL
Wavelength
Ethernet Service
Leased Circuits
2.5 Gbps 10 Gbps 100 Mbps 1 Gbps E-1

X
X
X
X
E-3
X
X
STM-1
X
X
STM-4
ISP and Corporate Sector

Wateen offering to these sectors will be primarily based on Ethernet and
Leased Circuits solution as indicated in the following table. The capacity
requirements of these sectors are concentrated towards lower bandwidth
circuits but number of potential customers in these segments is
significant.
Product
Dark Fiber
Sector
ISP
Corporate
Wavelength
Ethernet Service
Leased Circuits
2.5 Gbps 10 Gbps 100 Mbps 1 Gbps

X
X
X
E-1
X
X
E-3
X
X
STM-1
X
X
STM-4
VSAT
Wateen currently holds a reasonable share in VSAT market. With the
addition of DVB-RCS network in Wateen the expected revenue is to rise.
Consumer Sector
Demographics play a key role in determining the business viability of any
telecommunications network. Traditionally, demographic regions are
Telcos
Market Size
(Satellite
Bandwidth)
Major Competitors
Primary Product
Offering
Brand Loyalty/
Stickiness
Price Sensitivity
Copyright 2008, Wateen
Telecom
Major
Problems
Private & Confidential being
Information
Faced by
the Target Market

Primary DMU
Corporate
700 MHz
Supernet, Pak Data

Com,
Cybernet,AZMT,BTC,
PTCL
Supernet, Pak Data

Com,
Cybernet,AZMT,BTC,
PTCL
GSM back hauling
Data connectivity
Low
Low
Very Low
Availability of Satellite
Bandwidth.
Limitation on skilled
resource
CTO
Very Low
Page 47 of 93
Equipment limitation
PLM 1.3.0.1 v1.0
Quality Services
IT Head/ Owner
divided into urban, suburban and rural areas. In our analysis a fourth area
has been added called exurban. Exurban areas are primarily residential
and compared to suburban areas are further from the urban center with
lower household densities. DSL availability is limited due to the distance
between the end-user and the switching center and cable in many cases
is simply too expensive.
Rural areas for the purpose of the business case analysis are defined as
small cities or towns that are located far from a metropolitan area.
Customer densities can be fairly high in these areas but they tend to be
underserved due to their remote location. The following table summarizes
the characteristics that will generally be encountered in each of the four
geographical areas under consideration for a new wireless service
provider.
Area
Urban
Characteristics
Highest density of potential FTTX (GPON) and WiMAX
customers
Many multiple tenant office and residential buildings
Smaller WiMAX cell sizes to meet capacity requirements
Strong competition: Drive by market size and availability of
alternate access technologies
Due to the competitive environment a new operator can
expect:
Lower market penetration
Higher marketing and sales expense
Other considerations:
Licensed spectrum would be desirable to minimize
Sub-
potential for Interference

Higher percentage of single family residences also
urban
Business parks, strip malls, etc

Cable and/or DSL may not be available universally
Increase in WiMAX cell radius but still capacity limited with
limited spectrum assignments
New operator can expect:

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Exurban
Somewhat higher market penetration compared to urban

Upscale residential neighborhoods with moderate to low
household density
Fewer business establishments
High concentration of computers, cell phones, etc.
Cable and/or DSL not universally available
Larger WiMAX cell sizes, more likely terrain & range
limited
Requirements of architectural boards, environmental
impact studies, etc. may add to BS site development costs
Rural
High percentage of commuters to suburban & urban areas

Distant from major Metro Areas
Residential and small business
Very little if any, cable or DSL (rely on dial-up or satellite)
High pent-up demand for internet access
Limited competition
New operator can expect:
Very high WiMAX market penetration & rapid adoption rate
Other considerations:
High capacity backhaul may be a challenge
Table 2: Demographic Characteristics

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6.
Competitive Advantage
6.1.
Competitive Advantage
Corporate Long Haul & Metro Network
Next Generation Compliant Architecture
Wateens
next
generation
optical
fiber
infrastructure
(1.6
TeraBytes Core) is ready and capable to fulfill high bandwidth

needs of its customers as compared to PTCLs fiber infrastructure
which is still in its deployment phase. Moreover, the new optic
fiber strands result in fewer data losses ensuring the following:
Quality of Service
Connectivity
Scalability
One Window Operation

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PLM 1.3.0.1 v1.0
Catering for all data solutions, Wateen serves as a One Window

Operation attracting a heavy customer base (Carriers/ISPs/WLLs
etc.)
Long-term Strategic Partnership
Wateens size of business is highly attractive for vendors to
partner a deal with the company, resulting in reduced costs and
affordable prices to the customers.
Corporate Data Connectivity

A number of players providing data connectivity to corporates already
exist in the market. However, Wateen will be unique in that its portfolio of
products and services will be quite comprehensive. Wateens competitive
advantage over others can be listed as:
Support of integrated telecom footprint: OFC long haul, LDI, IMS

core (enabling multiple services)
Own Longhaul/Metro media as a profit center, positions Wateen

as highly competitive in prices for broadband operations as it
lowers transmission costs
Wateens ability to guarantee QoS and enter into SLAs since we

will be offering end-to-end solutions using entirely our own
network.
Since Wateen will be providing connectivity using almost entirely

its own network, the level of security available to corporates will be
much higher as compared to traditional ISPs that have to rely on
third party infrastructure to deliver secure solutions.
Since Wateen is deploying Metro rings across 17 major cities, for

high bandwidth needs, Wateen can offer Fiber for last mile
delivery. In most of the cases, corporate head offices would
require very large bandwidths (8 Mbps or more) which at present
only a few competitors are in a position to offer at affordable prices
(PTCL, World Call, etc). Other solutions for providing broadband

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access rely on radio connectivity which is much more expensive

and difficult to maintain.
Low time to market in extending reach due to extensive

OFC/Metro infrastructure
Bundled services such as voice and Internet will provide

converged billing.
A one-window operation for all Internet, voice and data related

issues.
Value added products and services such as data centers, disaster

recovery sites, co-location, tele-housing, and contact centers,
etc that leverage economies of scale and help in growing our
customers business.
Layer 3 or IP/VPNs will provide a flexible, scalable and affordable

solution to customers that are in an expansion phase, as
compared to traditional TDM circuits that require significant
investment for expansion.
All the latest IP-centric value added applications will be fully

compatible with Wateens network thereby enabling Wateen to
offer such applications that other service providers are not able to
offer (e.g. telephony, surveillance). Thus, Wateen will be in a
position to address a wide spectrum of customer needs with this
latest network.
Consumer Sector
Company can take lead in following ways:
One stop shop for multiple service bouquets
State of the art IEEE 802.16e based network providing

standardized interoperable technology
Provisioning of rich IP based applications
Alternative technologies allows simultaneous targeting of both

high-end and low-end customers
Only alternative network to support high bandwidth services

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DSL offering enables low-end customers to be brought onboard

and migrate to WiMax / FTT (x)
Maximized coverage on multiple platforms enables to cater all

requirements of corporate solutions
Triple play service on FTT(x) on national level in high ARPU

regions; Worldcall has only provided in few areas of Karachi
Offering the bundled services like blend of video calling, security &
surveillance and portal.
Introducing value added services, soon after basic product offering

overcomes teething problems.
Creating Total value proposition (TVP). Company being carriers

carrier also spearheading on access side
Customer intimacy through infomercials
Availability of country-wide sales channels
Lowe recurring charges as compared to competitors like PTCL,

LDN
7.
Barriers to Entry
7.1.
Barriers to Entry
7.1.1
Marketplace Barriers to Entry
Corporate Long Haul and Metro Network

PTCL Monopoly
The prevailing market has been highly monopolized by PTCL
causing its customers to be highly dependant for all kinds of
connectivity solutions. This has resulted in a large number of
customers co-locating in PTCL exchanges with the following
repercussions:
Customer is not able to interconnect Wateen at the

exchanges as it is not supported by PTCL.

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PLM 1.3.0.1 v1.0
Customer is not willing to re-invest the heavy amount

already paid.
Wateen has to bear high CAPEX to facilitate its customers

move out from the collocations.
Saturated GSM Market

The GSM market has been nearly saturated with reduced
requirements
of
bandwidth
to
ensure
activation
of
new
subscribers. Hence, the focus of the operators now is towards

providing consistent, reliable and high quality service and not
towards increasing subscriber base. This would require Wateen to
come up with high product innovation to effectively tap the market.
CAPEX Intensive Operations
Services, like dark fiber, managed capacity (E1/E3/STM-1 etc.),
require high CAPEX for delivery to the customer. Since the market
behavior is more price conscious, delivering cheap solutions
becomes very difficult.
Corporate Data Connectivity

The biggest barrier to entry for Wateen as far as data connectivity market
is concerned, is PTCLs massive reach across Pakistan. PTCL, being
Wateens biggest competitor in the data connectivity market, may create
hurdles for Wateen in provisioning for co-location. In addition, data
connectivity through DVB/RCS will be an expensive alternative to PTCLs
infrastructure, thus hindering our penetration ability.
Another barrier, which is present in all industrial marketing practices, is
the importance of personal relations of service providers with customers.
Years of such relationships has resulted in a certain comfort level that
exists between the customer and the service provider. This may pose as
a barrier for Wateen; however, given the vast difference in terms of the

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quality and sophistication of Wateens services, it should be easy to

overcome.
Corporate VSAT
There are already number of DNOPS providers for data which are
providing SCPC and DVB-RCS services to consumers. Wateens real trial
would be to make the prospected users realize that Wateens services are
more reliable, cost effective and provides real customer services. Wateen
Telecom has a major challenge from Pak Datacom. Pak Datacom being
the oldest satellite service provider and a subsidiary of PTCL which was a
government owned and the only telecom infrastructure in Pakistan has
taken advantage of this fact and has gained a lot of customership due to
it.
Pak Datacom Limited is the pioneer in Pakistan in providing high
speed data communication circuits both within the country and abroad.
Pak Datacom Ltd. is also the first company providing data networks via
Optical Fiber, Packet Switching and VSAT technologies. Pak Datacom
Limited has established a Data Network by the name of TRANSLINK,
which employs a number of technologies to provide high speed and
reliable data communication service. It employs the technologies of
Satellite Systems VSATs, Optical Fiber, Packet Switches, Frame Relay,
Digital E1 add/drop and cross connect equipment, TDMA and Speed
Spectrum Video. These all have been interfaced to form one homogenous
network which transparently provides high quality data services to users.
Pak Datacom Limited also plans to provide value added services of EMail, Fax and Video Conferencing. The company is installing a large 9.0
meter trackable antenna and high powered Satellite Earth Station in
Karachi. This will provide a large capacity of direct circuits to its users.
Consumer
Following are significant entry barriers which prohibit conversion from
market space to market place.
Availability of reliable media required for backhauling

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Allocated frequency spectrum (3.5 GHz). This requires extensive

deployment of base stations in order to get blanket coverage.
Higher costs of CPE
Adoption ratio of Wi-MAX and FTTx (GPON) technology
High Capital Investment required to set-up network infrastructure
Non-compatibility of CPE with core network. Network elements of

a manufacture accept CPE only made by them.
7.1.2
EBITDA will turn to positive after 3-4 years
Advantageous Barriers to Entry
Corporate
Industry Leading SLAs
Industry leading and trend setting SLAs can only be delivered by
an operator such as Wateen. This is so because Wateen is an
end-to-end connectivity provider, as opposed to other service
providers who remain dependant on third party infrastructure to
deliver end to end solutions. Reliance on third-party creates
dependencies and hence inefficiencies across the value chain.
CAPEX Induction
The scale of investment required to become an end-to-end service
provider such as Wateen is quite high. Even though Mobilink and
Multinet are planning to setup a long haul network throughout
Pakistan, an early lock in of customers through long-term
contracts will make Wateens market entry timing critical to long
term success.
Potential to Acquire other Businesses
Being the first player of such kind in the market, Wateen can enter
into long term partnership contracts with solution integrators (a
recent example of Wateen acquiring NE), and third party solution

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PLM 1.3.0.1 v1.0
providers such as Engro Innovative, Microtech Labs, etc. to

expand its skill set. Such partnerships with leading companies in
their respective domains / industries will ensure Wateen is the
preferred connectivity provider in the long run.
One-Window Operation
Due to Wateens IMS, IP convergence will provide the ability to
offer a number of value added services to potential customers.
The shear breadth and depth of services that can comprise
Wateens product portfolio will have learning curve implications for
competitors, and will provide a one-window operation for all
connectivity needs, and thus eliminate customers hassle of
dealing with multiple service providers and vendors. An early time
to market will thus be extremely important to Wateens long term
success.
Consumer
Wateen has pioneered in this technology and has first mover advantage
Wateen has lesser operational costs as compared to wi-tribe
Use of multiple platforms provide backup support to each other

e.g. DSL is a back-up support platform for Wi-MAX
Strong mixture of ATL & BTL activities creating high Brand equity
Economies of scale & Economies of scope
Synergy realization with other platforms like FTTx, DSL,

multimedia
Creating High switching costs for consumer

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8. Competitor Analysis
8.1.
Competitor Analysis
Corporate
Long Haul & Managed Capacity
In light of the above mentioned industry status, Wateen is
expected to face strong competition. Mobilink, Multinet and PTCL
are identified to be direct threat, whereas the foreign investment
being induced into the country through PTA regulations can easily
instill more competition in the broadband connectivity market.
A comparison of the competencies of the three companies is
presented below:
PTCL

Wateen
Multinet
Mobilink
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Long Haul of 9800 KM
Length
Extensive Coverage
Length (100% complete)

71 cites covered
Length (<50% complete)

40 cities covered
Length (40% complete)

67 cities covered
15 year old deployment
New deployment
Under deployment
Under deployment
16 Fiber Network
24 Fiber Network
48 Fiber Network
48/24 Fiber Network
DWDM lit up to full
2 lambda of DWDM lit
Dead Network
Some Sections lit up
capacity
Full occupancy
up (Full Network)
Warid, Wateen & FUT
No occupancy
Mobilink traffic in some
Badly Damaged
Traffic
Virgin Network
Incomplete Network
sections
Incomplete Network
Limited future expansion
Mega
Unknown
Unknown
Limited renewal taking
planned
O&M teams active 24
No O&M setup yet
Limited O&M setup
place
Project completed over a
hours
Project
Project delayed, started
Project delayed, started
decade
No SLA
record time
Strong SLA
prior to Wateen
SLA planned
prior to Wateen
SLA planned
No O&M setup yet
O&M
Traditional
practices
O&M
Modern
expansions
completed
O&M
in
through
OTDR components and
setup
not
comprehensive
NOC
PTCL
PTCL made several investments in infrastructure development
and added network capacity to enhance services and expand its
reach across the country. It has introduced Vfone, the new CDMAbased WLL platform of PTCL. On the wireless broadband front, a
major upgrade of the WLL CDMA network was rolled out in order
to provide wireless broadband services in 17 major cities.
On the technical front, PTCL has laid an Optical Fibre Access
Network in the major metropolitan centers of Pakistan and local
loop services have started to be modernized and upgraded from
copper to an optical network. PTCL has invested in the capacity of
two SEA-ME-WE submarine cables to meet the increasing
demand of international traffic. Additionally, PTCL is also part of a
consortium that will put in place a high-capacity fiber-optic
submarine cable that stretches from India to Italy and France via
the Middle East, named I-ME-WE, in addition to the existing cable

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systems (SMW3 & SMW4). PTCL has also signed an agreement

with Huawei Technologies Pakistan and Hewlett Packard (HP) to
jointly launch the Network Operation Center project which has
fault detection and resolution technology. This project would
establish one main network operation center and three regional
ones with the implementation of an alarm management system
across the entire PTCL network in an integrated manner.
In light of the above-mentioned infrastructural uplift, PTCL has
adopted an aggressive stance in the market by offering heavy
discounts on its current prices for E1, E3 and STM-1 connectivity.
After sufficient pressure by PTA, PTCL has simply slashed its
voice rates by 30%. However, it is also offering an overall discount
of 50% on personal, client-to-client, negotiations. Furthermore, the
company still focuses to monopolize its existence where its
competitors (Wateen, Mobilink, Multinet) network has not
stretched yet by charging twice as much rates. In addition to this,
ISPs and WLL operators who are co-located with PTCL are not
being given the chance to interconnect with any other operator to
share their bandwidth load and increase network reliability. Having
invested a handsome amount as bank guarantee for licenses to
PTCL, neither do the operators have enough strength to re-locate
with any other operator.
Mobilink
Mobilink has invested over $2.5 billion in infrastructure, network
rollout and franchise, retail and customer services network across
the nation. Mobilink has progressed from voice to carrier-class
nationwide services by completing its own 6,500 km redundant
fibre optic backbone network across Pakistan. It now plans to
provide high-speed data connectivity in the urban and rural sector
of Pakistan through WiMax services.

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In addition to this, Mobilink recently entered into an agreement

with four companies viz. DVCOM, DanCom, Zarco and WOL to
consolidate its operations aimed at providing better wireless and
broadband facilities for its customers. Leveraging on the assets
and expertise of these acquired companies Mobilink plans to
provide data services in the country in 2008. The company is set
to exploit opportunities in other fields like broadband (optic fibre,
DSL, WiMax), LDI etc.
Mobilink has already started contacting carrier customers by
offering DPLC solutions with microwaves as the last mile
connectivity. Despite of the market need for high bandwidth fiber
connectivity, it is attracting customers by providing immediate FUT
links so that the connectivity can be practically experienced.
Furthermore, Mobilink has also benchmarked PTCL for its prices
and, as such, offering a straight 40% discount.
Multinet
Inaugurated in 2005, Multinets Project Ittehad (Nationwide Optic
Fiber Backbone) links 107 cities of Pakistan with a 4,100 km highcapacity fiber optic link. The company already intends to target
Mobile phone operators, LDI operators, LL operators, WLL
companies, Broadband Service Providers and Internet Service
Providers with this high capacity link.
According to the recent market update, Multinet has sealed a 20year capacity contract and a service contract with Telenor
Pakistan. The deal, in total, is estimated to be worth $40 million.
The capacity contract will allow Telenor to use fiber-optic cable
pairs and associated co-location facilities along Multinet Pakistan's
national long haul transmission network. The service contract
entails maintenance and associated services from Multinet for the

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duration of 20 years. Moreover, Multinet is contractually bound to

provide on-ground connectivity to Telenor within a period of one
year, on failure of which the contract would remain null and void.
VSAT
Consumer
FTTX
In the fixed line businesses major competitors are PTCL,
WorldCall, Nayatel (Islamabad) and other local operators. Wateen
is following a strategy whereby a single customer can be targeted
using different platforms.
PTCL has the most extensive network laid throughout

Pakistan and it has the largest penetration of fixed line
network in Pakistan with around 5.3 million customers and a
long haul network of around 10000 km. PTCL can easily use
the currently deployed network and ensure that it gets the first
right of refusal from existing customers especially due to its
availability of service in a large number of households.
WorldCall over the years have grown into a considerable

force by deploying its network in major urban areas
throughout Pakistan. Currently, WorldCall has a customer

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base of around 200,000 in major urban areas. With a OFC

network and an N + 3 architecture, the company is well
placed to compete with major operators such as Wateen,
PTCL, Multinet etc. WorldCall has recently entered into deals
with major carriers (Telenor) and is deploying its metro
network in major cities. This will ensure that WorldCall has
connectivity for its services throughout these selected cities.
Nayatel has deployed its fiber optic in Islamabad and has

quite an extensive coverage of entire Islamabad region. It has
deployed a PON network and is serving the needs of
corporate and consumers using the same network. One of the
major problems that Nayatel has is the non availability of
infrastructure outside Islamabad. Hence, it will always be
dependent on third party arrangements to become a national
service provider.
WIMAX
Four networks (PTCL, Worldcall, Telecard and Great Bear)

in roll out phase (CDMA EVDO) and two more operators
(Mobilink, Wi-Tribe) planning to deploy WiMax
o
Wateen is capitalizing on its first mover advantage

and also has a differentiated USP
PTCL could venture into this arena by capitalizing on its

laid infrastructure by offering IPTV/DSL/VoIP (POTS),
o
Poor health and high maintenance cost of copper

lines is a barrier to entry
Initial cost of the CPEs is a challenge

o
Wateen is testing low cost CPE of different

vendors, including Motorola and expecting its
availability in June 2008
Dependency on incumbent for O&M of local loop (DSL)

o

Not main product offering
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Long development time for FTT(x)

o
Wateen will capture market through WiMax and use

its previous experience and influential contractors
resources to expedite the deployment
M/s Mobilink after facing technological problems during

country-wide operations has limited its operations to
Karachi, where again response is not satisfactory. Other
active competitor is M/s wi-tribe which is a joint venture
between Qatar Telecom (Qtel) and the A.A. Turki
Corporation (ATCO), together with a proactive technical
partnership with the Clearwire. Wi-tribe Jordan is the first
operation to launch followed by a plan to launch in other
emerging markets.
Porters model for Industry Competitive Analysis is depicted in

below figure.
Competitors
Suppliers
Motorol
a
ITS
Mobilink
wi-tribe
PTCL
Buyers
SME/SOH
O
Enterprise
s
Students
Resellers
Competitiv
e Intensity
Substitute
Platforms
DSL
FTTx
3G
HSPA
LTE
First-mover
advantage
Lowest costs
Technology
pioneering
Entry Barriers
Figure 4: Industry Competitive Analysis

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Following table shows impact of constituent forces.

Force
Elements
Impact (Low, Middle, High) on

Platform
High (Due to aggressive exploitation of
DSL
copper network by PTCL and inSubstitute

Platforms
FTTx
progress of DSL by Wateen)

Middle as platform needs more time to
3G/HSPA/LTE
Motorola
market
Low till year 2010, high after that
High (being single vendor for platform,
monopolistic approach may hamper
Supplier
ITS
CPE cost reduction efforts)

High (billing system is very crucial in
Mobilink
order to maintain first mover advantage)

High (Synergy between Mobilink,
Mobilink infinity and Link Dot net will
Competitor
give tough time to this platform)

Low (absence of media will have high
w-tribe
operational costs and it will be very
difficult for them to place competitive

PTCL
pricing)
High
(exploitation
SME/SOHO
infrastructure)
High (they can spread positive or
Consumer
negative word of mouth)

High (They are in decisive position to
Corporate
adopt/reject platforms offering)

Low (platform cant offer much services
Buyers
to
corporate
in
of
existing
presence
of
long
haul/metro fibre)
High (their well-established distribution
Resellers
network can help in early adoption of

platforms services)
mover High
(sustainable
Entry
First
barriers
advantage
Lowest cost

competitive
advantage is essential)
High (Price-sensitive market expects
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Technology
lower cost from this platform)

High (Imitation may destroy
pioneering
endeavor)
this
Table 4: Impact of competitive forces on platform
8.2.
Competitor Reaction
M/s Mobilink is actively increasing its long haul and metro network in
major urban areas. This coupled with the acquisition of WOL has allowed
Mobilink great flexibility in terms of operations and products that can be
offered for both consumers and corporate sector. Currently, Mobilink is
not considering entering directly into the fixed lines or corporate
businesses but with investments in infrastructure, it may well be an option
for Mobilink for the future.
8.3.
Company Counter Reaction

For company counter reaction, company can work on ERRC (Eliminate,
reduce, raise, create) model. Salient features will be:Eliminate price difference
Company needs to offer prices lower than its present (Mobilink) and
potential future competitors like wi-tribe. This should be kept in mind that
market is price-sensitive, so they have to play on volume base.
Reduce 4 Is
Four Is are Intangibility, Inconsistency, Inseparability, and Inventory. As
services can not be tasted or touched, so we have to reduce intangibility
through trust and certainty. Inconsistency can be removed by automation,
standardization. We can use our portal by showing standard tariffs, FAQs,
procedure for changing 512 Kbps bandwidth to 1 Mbps and so on. To
ensure that services are produced and consumed simultaneously, we will
have to encourage supplier relationship. Company must undergo market
research to have idea of demand forecast, thus reducing inventory as well
as reduction in lost sales opportunity.

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Raise platform awareness

As the technology is new and company needs to invest on platform
awareness. Efforts are required to present WiMAX platform as a
broadband service provider. This can be done through brand activation.
Viral marketing is very much popular among internet users. These tier-1
non-customers need simply hand-holding. For tier-2 and tier-3 noncustomers, referral/influencer markets will be effective.
Create competitive advantage
Four elements constitute sustainable competitive advantage: the way you
compete, basis of competition, what you offer and where you compete.
Wateen Telecom having long haul optical fibre network, metro optical fibre
cable, triple play network in DHA Lahore is well-positioned to leverage its
assets and capabilities to create sustainable competitive advantage.
Wateen Telecom can provide country-wide high capacity bandwidth.
Usage of country-wide transmission media by three telecom operators
(Warid, China Mobile, PTCL) is testament of its competitive advantage.
So, they can take lead in following ways.
Wateen Telecom should adopt passive strategy rather than reactive

strategy. Having more than 30,000 customers on its wireless
platform, company has already shown its strength. Pricing models
are required to be simple and easily conceivable by the consumers
as well as corporate customers.
In order to ensure effective counter propaganda, Wateen Telecom
may create threads on internet, proliferate positive word of mouth.
On public domain, testimonials of corporate users like banks can be
displayed in print media.

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9.
Products / Service Offerings

9.1.
Products / Services offered

Long Haul and Dark Fiber
This platform offers Managed Capacity service to Carriers for managing
their Voice and Data traffic.
Leased Circuits
Wateen Leased Circuits offer managed capacity connectivity
solution for sites all across Pakistan. With its ADM sites in 71
cities, Wateen provides leased circuit services from 2Mbit/s up to
622 Mbps, based on the DWDM fiber network covering all four
provinces of Pakistan. This connectivity is available between
Wateen ADM sites and the service is dependant upon Metro
Network to offer connectivity up to customer premises.
Circuit Type
E-1
E-3
STM-1
STM-4
Bandwidth
2 Mbps
34 Mbps
155 Mbps
622 Mbps
Interface Physical Presentation

Electrical - Balanced 120 Ohm
Electrical - Unbalanced 75 Ohm
Optical
Optical
Circuit Characteristics
G703
G703
G957
G957
Synchronous Digital Hierarchy (SDH) clear channel protected

connections ranging from 2Mbit/s up to 622Mbit/s are available
and managed end-to-end by and based on Wateen fiber
infrastructure.
Ethernet Connectivity
Wateen Ethernet connectivity service supports point-to-point
transparent Ethernet, delivering 100% throughput and guaranteed

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full-duplex bandwidth between the selected end points with low

latency and jitter. Suitable for voice, data and Internet based
applications.
The Ethernet connectivity service is designed to meet the
customers demands of flexible bandwidth capacity, just-in-timebandwidth, lower cost and Quality of service. The service is fully
based on the Ethernet standards and is delivered over Wateen
Long Haul fiber network supporting capacities from 10Mbit/s up to
1Gbit/s.
Circuit Type
Bandwidth Interface Physical Presentation Circuit Characteristics
Fast Ethernet 10-100 Mbps
100BaseT
IEEE 802.3
Giga Ethernet 100-1000 Mbps 1000Base LX - 1000Base SX
IEEE 802.3
Dark-Fiber Service
Wateens Dark-Fiber or unlit fiber is defined as an actual point to
point physical fiber along a right of way, but is unused and does
not include transmission equipment lighting the fiber. Wateen
provisions and maintains fiber optic capacity between selective
locations where the equipment necessary to power or light the
fiber are provided and maintained by the customer.
Dark-fiber is lightened up by the customer. Regeneration is
required for long distance depending on the kind of technology the
customer will use. For a long distance dark-fiber Wateen offers
the fiber combined with Wateen co-location service to re-light it
with regeneration or repeater equipment at Wateens facilities. At
Wateen facilities additional services are available depending on
the type of facility like: onsite support, cabling services,
interconnection. etc.
Wateen dark-fiber service includes:

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Provision and maintaining fiber optic capacity between

selective ADMs where the equipment necessary to power
or light the fiber are provided and maintained by the
customer.
In case of a long distance dark-fiber delivery over multiple

Wateen facilities, these facilities can be used for relighting. For additional services then re-lighting the Dark
fiber service is combined with Wateens co-location
service.
Lambda Service
Wateen Lambda service provides 10Gbps connectivity over fiber,
by lightening up a wavelength from the full optical signal (total
capacity of 40 lambdas), stretching up on the whole Long Haul
network. This service does not cater for the last mile connectivity
from Wateens ADM to the carriers location. Hence, separate
connectivity is required through metro solutions to connect upto to
the exact location of the customer.
The allocation of bandwidth over the lit-up lambda is targeted to
serve as the secondary/redundant link for the carrier, ensuring
high reliability and availability imposed through the Service Level
Agreement (SLA).
Backhauling Solution
Wateen provides access/backhauling solution to its customers
through variety of technologies depending upon customer
requirements and bandwidth constraints. The offered solutions in
this regard are as follows:
Metro Fiber Rings
WiMAX
Microwave

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Fiber, Metro Ethernet and GPON

This platform offers Managed Capacity service to Corporate sector for the
purpose of Data Connectivity and VPN
Wi-MAX
This platform has the privilege to offer following products:
Telephony (voice, video)
Data (Internet, VPN)
Value added services (gaming, security & surveillance)
FTTX
This platform has the privilege to offer following products:
Telephony (voice, video)
TV (Analog, Digital)
Value added services (gaming, security & surveillance)
DSL
This platform offers following products:
9.2.
Product/Service Delivery
Following mechanism to be adopted:
Business dimensioning by Product & Service dept.
Network planning & design alongwith rollout by Engineering dept.
Pricing models by P&S dept.
CRM module by IT dept.
C&C policy making by Finance dept.
Establishment of sales channels by sales dept.

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9.3.
Positioning/segmentation/brand activation by marketing dept.
Ensuring platform delivery by enterprise office
Customer experience
Customer expects following from the platform:
Always-on broadband internet
Noise free voice communication
Picture Quality and rich choice of Multimedia content on cable TV

service
Customer-friendly touch points
Scalable service provisioning
Minimum downtimes
Customer intimacy with respect to capability of platform to offer

new services
9.4.
Quality of service
Cost leadership
Bundling of Products
FTTX/ Wi-MAX
Following are different ways to bundle different product:
Telephony & internet
Telephony, internet, TV
Telephony, internet, TV, portal
Telephony, internet, TV, portal, gaming
Telephony, internet, portal, security & surveillance, online gaming
However, in order to avoid cannibalization of voice due to telephony or

vice versa, we may de-couple voice and internet for certain areas
based on market research.

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10.
10.1.
Customer Support Strategy

Customer Support Channels
Contact centre is the foremost customer support channel. This is first
contact point for the customer. Customer can launch its complaint at
helpline. Contact centre agent will greet customer and request
complainant certain preliminary questions for soft troubleshooting of the
problem. Once it is assured that complaint requires physical visit of field
engineer and trouble ticket will be issued and conveyed to the customer.
The problem will be routed to service delivery team and physical visit of
field engineer will resolve the solution. Accordingly ticket will be closed.
As indicated before, company needs to focus on relationship rather than
transactional marketing. Outbound calls can be originated from contact
centre to customers to greet them at different occasions. Also special gifts
can be sent to high revenue generating customers so that company
maintains relationship with its valued customers.

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11.
Sales and Marketing Strategy
11.1. Target Customer

Customer on this platform will be a broadband user. This ranges from
students to young professionals, seasoned professionals and even
housewives.
Professionals
can
further
be
divided
into
young
professionals and seasoned professionals.
11.2. Platform
WiMAX gives brings value to the customer in following ways:
Faster broadband speed
Not having to lay cables reduces costs
Easier to extend to urban and suburban areas
Can be used as overlay to enhance backhaul capacity
Much wider coverage than Wi-Fi hot spots
Higher throughput but with lower cost and lower latency
Indirectly, WiMAX is going to help customers in following manner:-
Range of technology and service level choices from both fixed

and wireless broadband operators
DSL-like services at DSL prices but with portability
Rapidly declining fixed broadband prices
No more DSL installation fees from incumbent
11.3. Sales Channels

Following are the sales channels required for this platform:
Franchise
SME/SOHO

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Corporate/Enterprise
Reseller models like Genuine Intel dealers
In addition to these regular touch points, platforms product and services

can be offered on specific exhibitions and expos like ITCN.
11.4. Marketing Strategy

Following will be key constituents of marketing strategy:Blue Ocean Strategy
For this platform blue ocean strategy will be most suitable. Under this
market strategy, platform will attract non-customers. Tier-1 non-customers
can be brought on board while providing promotional packages like
waivers on installation or upfront charges. Tier-2 & Tier-3 non-customers
can be attracted through mass medial campaigns.
As part of the blue ocean strategy, Wateen Telecom needs to think
beyond industry dimensions for WiMAX success. Company needs to
continue focus on existing segments like Corporate, SME, SOHO, Kids,
Housewives, Urban/Rural etc. However, as strategys ultimate purpose is
the reduction of resistance, so we have to exert our efforts to convert
non-customers to customers. Here, it is suggested to use bundling
technique to target tier-1 non-customers. For all segments, payment is
recommended though pre-paid scratch cards or credit/debt cards. It will
eliminate hassle of post-paid bills or cheque etc.
Choosing between growth & Profitability
From shareholders perceptive, ROA is very important, which is
defined below:
ROA = (profits/sales) x (sales/assets)
ROA is combination of two parts. First one is related to profits with
respect to sales and second one is sales with reference to assets.

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Higher profit does not mean that organization is prosperous. As

Pakistan is under-served in broadband market, huge potential exists
for growth. So, organization should look towards second part of ROA
equation. As company has pioneered in WiMAX technology so efforts
are required to expand customer base rather than thinking to make
profits. This is also in-consistent with ambitions to get first-mover
advantage. As Wateen has a very poor presence in voice and internet
market, so it is good opportunity to leverage on its assets and
capabilities (deployment of WiMAX in 22 cities).
Broadband scorecard
Company needs to take up measures that could form a potential
broadband scorecard measuring the overall development of the
broadband market. These measures include:
Average price per Kbps/Mbps, Average speed
Coverage and Take up
Infrastructure concentration
Retail/distribution concentration
Wholesale DSL/Dial-up/Cable competition
Such scorecard will help company to look into what is happening in

the broadband market and what can be done differently to outclass
the competitors.
PoD & PoP
PoD (Point of differentiation) means favorable, strong and unique brand
association based on some attributes or benefit associations. Let
customers be given a choice to bundle different options. For example,
512 Kbps internet package may be bundled with night free telephony
and so on. Back end support at billing and customer services should
facilitate such attributes.

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PoP (Point of Parity) reflects an association that is not necessarily unique

to the brand. PoPs may be necessary to have a credible offering within a
certain category. As common man segment are technology pessimists,
so sustainable competitive advantage can only be achieved for such
segment to provide reliable service so that they start trusting the
technology.
A PoP might also be designed to counter (or negate) a competitors point
of distinction. Say a low-cost product by PTCL can be negated by giving
premium quality of service, so quality-conscious user will be willing to pay
a premium price if they are happy with quality attitude about quality is
Must Have whatever the price is).
Eye on ball
As indicated earlier that company needs to be proactive rather than
reactive, so continuous improvement on internal weakness is very
important. One such weakness is the AC-operated CPE for WiMAX.
Present energy crisis seems to be worsening in coming days. Under
such circumstances, company needs to work with M/s Motorola to
develop battery-back up system. Otherwise, its feared that any SCA
can rescue company out of such situation. Negative word of mouth
will damage hard-earned marketplace.
Understanding the demand drivers
Corporate market landscape suggests that bandwidth capacity, dark
fibre provisioning and other products are required by all segments. It
shows that, for broadband industry, these are essential requirements.
Gaining
sustainable
competitive
advantage
requires
an
understanding of both competitive weaknesses and emerging

consumer demand. Consumer demand drivers in the video
entertainment
and
communication
categories
are
changing.
Specifically, respondents want increased personalization, interactivity

and optimized accessibility to enrich their existing video experience.

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Accordingly, the incumbents can tap into this emerging demand while
exploiting the weaknesses of the fixed broadband service providers in
order to build a sustainable competitive advantage.
User-centric broadband services
Company can have sustainable competitive advantage (SCA) by offering
services centered on the users (consumer and business user) which
simplify their broadband experience such that users can access them
using any device, any broadband connectivity, with a single sign-on,
consistent personalization and transparent synchronization across the
devices. Services in which users feel unique and known, and do not have
to think about where to access them, can lead towards SCA.
Tangibilizing the intangibles
Positioning can be defined as below:
Positioning=differentiation (what + how) + segmentation (to whom)
A product or service has a position or image or perception in the customer
mind and this influences the purchase decision. Wateen Telecom needs
active positioning as passive positioning is not likely to work under these
circumstances. On organization level the positioning has to be based on
the theme We Connect. On product and service level, positioning should
be different for each product and service. Such positioning will help
company to move towards tangibilizing the intangibles by developing
trust and reliability. The company has to think beyond boundaries just like
MCI Communication outclassed AT&T by introducing Friends & Family
sales promotion.
Relationship Marketing rather than transactional marketing
Company has to move from transactional relationship to relationship
marketing. Relationship market models include internal, supplier,
influence, referral and recruitment markets. A smart marketer should
try to build up a long-term win-win relationship with valued customers

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as well as all other stakeholders. In the context of present situation,

following ideas may work.
Internal markets
Employee should be considered as just an extension of customer.
Functional integration is required between CRM, billing, after-sale
service etc.
Supplier markets
Motorola (equipment provider) has invested USD 100 Million in this
project. Their stakes are very high in this venture. Also Intel (chipset
provider) is an important player. Wateen Telecom should strengthen its
ties with these two prominent suppliers. WiMAX got successful in Japan
for the reason that they tried to relocate their supplier closer to them.
Other than Japan, this strategy is being opted by AT&T (on the name of
vendorship partnership); at electronics group Philips in Europe (called comakership). This strategy of perishability will help Wateen in (i) matching
capacity and demand, and (ii) adjusting capacity to demand.
Referral markets
Following are potential referral markets:
Bank Alfalah: This bank is a sister company being member

company of Abu Dhabi Group (UAE). They have about half million
customers having credit/debt cards. Wateen can pitch this affinity
market through bank. There will be no payment hassle.
Employees: Wateen Telecom can initiate a scheme where

employee can refer customers. Employees should be ranked on
the ratio of matured versus referred customers and highest ranker
should enjoy the bonanza.
Customers: Existing customers can refer to other customers.

Upon
successful
acquisition
of
new
customers,
referring
customers should be given discount on their bill or extra free

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minutes for phone/internet usage etc. Customer with maximum

referral can also be portrayed on companys website.
Influence markets
Following influence markets may be used to get favorable word of
mouth.
Regulators/Govt.
agencies:
Company
can
approach
PTA
(Pakistan Telecommunication Authority), the telecom regulator in

Pakistan for lobbying its product & services. The fact that Wateen
Telecom has pioneered this technology in Pakistan should get
endorsement from Regulator. Similarly, recently Wateen Telecom
has joined hands with Higher Education Commission (HEC) for
provisioning of Optical Fibre connectivity to major universities all
across Pakistan (like LUMS Lahore, IBA Karachi, GIKI Topi). This
platform can be used for proliferation of WiMAX product &
services.
Resellers: So far, Wateen has used Franchise model for consumer

segment but it did not work as per expectations. Another model is
to use influencer, say resellers of computers.

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12. Impact Assessment

12.1.
Business Impacts
Multiple Platforms delivery will bring following business impacts:
Company can provide novel product & services
Better image of the company in masses as company has

pioneered in this technology and took risk by introducing
under-trial platform
Division will be able to promote customer-centric broadband

applications
12.2.
Operational Impacts
Multiple Platforms delivery will bring alongwith it following
operational impacts:
Better utilization of existing human resources
Pass on experience curve to the new ventures by the

company for off-shore operations. Customer experience can
be shared with international business so that new operations
are run efficiently & effectively based on the best practices
observed in Pakistan
Lessons learnt can be put on central repository and new

ventures can get benefit in terms of Dos and Dont
Platform will give an opportunity to build cross-silo teams.

Team can communicate plans among themselves, foster
understanding,
exchange
best-practice
experiences
and
develop working relationships.

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Cross-subsidization: Company can use resource accumulated

in one part of the world (say Pakistan) to fight competitive
battle in another (say Bangladesh, Georgia)
13. Risk Assessment

13.1
Platform Risks
OFC & Managed Capacity
Unable to fulfill the SLA due to lack of HR and training

o
Operations should be ramped up slowly so as to ensure

Wateens reputation does not get damaged
Price War gets triggered in the market

o
Wateens focus should be to compete on quality of service

and the complete experience and not price. If the market
goes into a downward spiral, Wateen should hold its
ground, and lower prices only as a last resort. As a point of
comfort, Wateens operating margins are reasonably high,
so as to provide cover in case such a situation arises.
Decision making process slow

o
Wateen needs to align itself structurally for rapid decision

making and action. Telecom sector, being extremely fast
paced will require that decision making authority is kept as
low as possible in the command chain.
FTTX
The expansion of the FTTx network across Pakistan is going to involve a
huge investment. The basic characteristic of the triple-play over FTTx is
that fixed-costs are extremely high. Most of the cost is assumed during
network deployment. Conversely, the incremental cost of adding a new
customer to the network is very less. The high operating leverage of the
project results in a significant risk exposure to the company. The reason is
that any deviation from the projected customer-base would have a
magnified impact on profitability.

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The second risk that the company will be exposed to is the probability that
it may not be able to meet its expansion targets. A major source of
Wateen FTTx revenue will come from advertisements that will be aired on
either its in-house channels or those channels on which it has acquired
lending rights. The advertisement revenue depends entirely on the
number of subscribers a cable operator has. This, in turn, will depend on
the coverage of the network. Inability to expand the network as per plan
could result in a serious set-back to the revenue stream.
The third risk will arise from the penetration that triple-play can achieve in
the areas covered by the network. The initial targets are going to be easy
to meet since Wateen will be going after the low-hanging fruit first i.e. the
affluent societies. But afterwards, maintaining the penetration targets will
not be easy since it will be difficult to churn price-sensitive consumers
from SEC B to acquire Wateens premium services. Added to this is the
fact that unlike rival operators, some of Wateens services require the
customer to acquire a CPE (Customer Premises Equipment). This is a
further barrier to entry for the customer.
DSL
Desired Colo might not available for installing DSL infrastructure
Delay in Colo Acquisition

o
Hire consultant from PTCL who will help Wateen in early

acquisition of Colos
Slow Equipment Deployment by Vendor Huawei

o
Engineering has to push vendor for early deployment in

acquired co-locations
Wi-MAX
First risk is high initial outlay. Initial investment is required for installation
of equipment as well as procurement of CPE. The adoption of platform
may take 3-4 years. Expansion of network will reduce coverage problem,

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however. This initial expense will be at stake during this period and
subject to acceptability of the platform. Risk can be mitigated by making
efforts that platform gets acceptability as soon as possible. Once platform
pulls customer, economy of scale (incremental cost will be less once
platform enters into break-even) and economy of scope (introduction of
online gaming and security & surveillance) will reduce this risk factor.
Second risk is giving CPE against PKR 2000 only. This amount is not
going to recover cost of CPE in any ways. For customers who may not be
using platforms services may not return CPE to the company. As a result,
CPEs cost will not be recovered fully. This risk has very high impact. In
order to mitigate this loss, its better to ensure that customer is kept live for
longer period. On other hand, win-back campaign id required to covert
sleeping customers into revenue contributors.
Third risk is related to competition of WiMAX versus LTE across the
globe. Both technologies in race to cater for next generation broadband
requirements. Big giants are putting their efforts to take lead. Failure story
in Australia has also psychological impact over the promoters of WiMAX.
But, in parallel, we have success stories as well like in Korea. Company
needs to get involved with Motorola and other WiMAX technologists in
order to cope with threats/risk to this platform.
VSAT

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14. Financial Outlook

14.1. Financial costs
Dark Fiber
Average Fiber Length
The expected length (in km) of dark fiber required by the
customer. These requirements have been separately speculated
for Long Haul and Metro, keeping in view the historical
requirements of the GSM Operators since major portion of their
infrastructure feeds on dark fiber requirement.
No. of Pairs
The number of fiber pair(s) required by the customer. In light of the
industry scenario, the requirements never exceed greater than
one fiber pair which is virtually unlimited in bandwidth. Hence,
revenue generation has been calculated based on one fiber pair.
No. of Cities
The expected number of cities where dark fiber for Metro will be
required by the customer. These requirements have also been
speculated in light of the requirements by the GSM Operators as
Metro fiber is also included as part of their infrastructural
requirement.
Managed Capacity
Point-to-Point Connectivity
Point-to-Point connectivity relates to the requirement of the market
in terms of E1s, E3s and STM-1s. Expected revenue has been
calculated based on expected number of E1, E3 and STM-1 links
and average DPLC distance per link.

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L2/L3 VPN Connectivity

L2/L3 VPN connectivity is precisely to cater for the data
requirements of the market. Expected revenue has been
calculated based on the number of links and average price per
link.
Microcell/BTS Backhaul
Microcell/BTS connectivity solution specifically targets GSM
operators to backhaul their voice traffic over either WiMAX or fiber.
The expected revenues from this business have been derived
from the number of sites and average revenue per site.
Lambda Service
In light of the above mentioned scenario, the dark fiber
requirement is not expected to follow an increasing trend. Hence,
a lambda (10G bandwidth) will substitute this connectivity for large
government institutions.
FTTX/ WiMAX
Direct costs will comprise of:
Equipment costs
Commissions on sales
CPE Inventory costs
Vendor payments
Indirect costs include but not limited to:
Marketing and advertising expenses
Network maintenance costs
General & administration costs at ADMs/hubs
Costs related to Customer relationship management
Contact centre expenses

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Initial costs will have key components as:
CPE
WiMAX base station equipment
OLT and ONT Equipment
Signal Transportation Cost
Edge and core equipment
Site acquisition and civil works
Spectrum license
PEMRA license
Channel license fee
Billing platform
Establishment of sales channels
Ongoing costs will consist of:
Leased media costs
Space and Power costs for Co-locations
Site leasing fees
PTCL Royalty fees against DSL ports
Network operations costs (like energy bills, security of sites)
Equipment maintenance cost
Sales/Marketing & HRM costs
Customer acquisition costs
Firmware up gradation costs
Allowance for bad debts and churn
General and administration
Who will incur these costs:
Engineering will incur costs on infrastructure and

preventive/corrective maintenance

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Sales & Marketing will have on-going expenses
IT will require budget on development of state of the art Customer

Relationship Module (CRM)
Certainty of costs:
Must-incur costs include expenses on networks, establishment of

touch points, brand activation/marketing costs
Uncertain costs include subscriber acquisition costs, network

expansion costs, marginal /incremental costs. These costs depend
upon acceptability of products & services offered by the platform.
14.2. Financial Outlook

Dark Fiber
Managed Capacity
Data Connectivity

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The assumed bandwidth for the projected ARPUs is 2Mbps keeping in

view the usage by Enterprise on average. Wateen plans an extensive rollout plan for FTT(X) which includes further extensions in cities where
Metro is already deployed as well as other cities where fiber is not
available yet. There is a slight decrease in ARPU annually due to various
offerings by the competition. However, Wateen intends to lower its costs
as much as possible and the efforts for this objective have already started
by deploying Metro Ethernet. Still, higher bandwidths will be pushed to
the customers so that ARPU could be maintained as much as possible, if
not increased.
Keeping in view the extensive roll-out plan for FTT(x) expansion, the
number of links, per year, keeps increasing for both Enterprise and SME
markets Such an expansion plan, along with enhancement in technology
(Metro Ethernet) will result not only in more accessible fiber for customers
in potential markets but also lower One Time Costs.
VSAT

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FTTX
Wi-MAX

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15.
Conclusions and Recommendations
15.1. Conclusions
Wi-MAX platform is a promising venture. Its going to help engulf digital
divide in Pakistan. Once teething problems are over, primary product and
services will get acceptance and value added services will bring
additional revenue streams.
15.2. Recommendations
It is recommended that company must go for this platform in order to
capitalize on its pioneering advantage in this technology. This platform will
help company in converting market space to market place specific to
broadband penetration in Pakistan.
15.3.
Platform Delivery Project Responsibility

Product head will be the project sponsor and one person out of the
product managers will be the project manager. Project Manager will
create checklist of all deliverable, get buying in from all stakeholders and
ensure integrated delivery of the platform.

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16. Review and Approval

16.1. Review Process
Senior Management team will review the business case and approve it. In
case, approval is not accorded, rationale behind rejection will be recorded
in this document.
In order to keep an eye on market dynamics, this document will be
revised time to time so that it reflects current situation. Revised version
will be circulated to all concerned for seeking valuable suggestions
followed by freezing the document after approval.

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17. Supporting Data

17.1. Assumptions
Broadband penetration is assumed to take leapfrog during coming

years
Wireless broadband will lead fixed broadband
Bundled packages are going to get acceptability
Platform is assumed to bring new solutions for existing problems
17.2. Research Information
Help obtained from reports by PTA, Ministry of Information

Technology
Information gathered through outgoing calls to existing customers

as well as potential customers
WiMAX forum was also source of information for this platform

book
17.3. Platform Diagram/Architecture

Para 4.4 describes core network and end to end network description.

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Document Revision History

Copyright 2008, Wateen Telecom

The Executive Summary................................................................................................ 5

Market Problem and Opportunity..........................................................................8

Market Overview and Analysis............................................................................40

7.1.1 Marketplace Barriers to Entry....................................................................................54

Company Counter Reaction........................................................................................ 67

Products / Service Offerings...............................................................................69

Products / Services offered.......................................................................................... 69

Customer Support Strategy................................................................................74

Copyright 2008, Wateen Telecom

Customer Support Channels.......................................................................................74

Sales and Marketing Strategy.............................................................................75

12. Impact Assessment..............................................................................................82

13. Risk Assessment..................................................................................................83

14. Financial Outlook.................................................................................................86

Conclusions and Recommendations.................................................................92

Platform Delivery Project Responsibility......................................................................92

16. Review and Approval...........................................................................................93

17. Supporting Data...................................................................................................94

Copyright 2008, Wateen Telecom

Copyright 2008, Wateen Telecom

The Executive Summary

Entertainment) concept given by CEO of Wateen Telecom couple of years

A small businessman should have high speed connectivity to compete

Entertainment downloads are available at cheaper rates

Digital prosperity kicks-in. It will not happen by accident, nor by

Encourage investors to put their valuable money to bring-in quality

infrastructure and even if available, it is not in local language

Backhaul charges need to be at reasonably low levels as new

FTTx is a limited concept , targeted at high ARPU customers

VSAT is targeted toward Carriers and remote areas

Copyright 2008, Wateen Telecom

relatively low cost, mainly due to global downward price trends. On

Sales force performance must match technological & product

Create Talk-Value through TV shows, road shows, sponsorship (like

Ensure that technological edge is converted into viable products

Create an impression of association. Just like Indigo, Wateens

Hit national segments. This can be done through reseller model

Identify emerging segments. Through broadband platform, housewife

Seizing the opportunity by converting needs of the masses into

Benchmarking needs to be done. For example different KPIs need to

Promotional schemes are required to create a buzz word about

Advertisement alone is not sufficient. It must be supplemented by

Copyright 2008, Wateen Telecom

Copyright 2008, Wateen Telecom

Market Problem and Opportunity

Broadband being engine for economic-growth in country needs to be

Copyright 2008, Wateen Telecom

Right mix of features and pricing to appeal to consumers.

Business users require ubiquitous coverage.

Users are very interested in a wireless broadband service that will

Wateen Telecom being pioneer in wireless broadband can create history

Copyright 2008, Wateen Telecom

Overall penetration in Karachi

Overall penetration in Lahore

Overall penetration in Islamabad

Smaller cities haven even 0% penetration or second degree of decimal on

Copyright 2008, Wateen Telecom

Costing a total of $100 Million in capital expenditures, this fully

Copyright 2008, Wateen Telecom

Objective of a fiber infrastructure in the Metro would be to provide

Fiber/WiMAX/Ethernet Bridges as the last mile options. The above