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to new digital technologiesand business models; theglobalization of talent will onlyboost this activity. At the sametime, however, both socialand cultural concerns remain.Fears of loss of privacy and thepotential for government abuseof the array of technologiesbeing made available will likelyincrease as the digital world isbuilt out. The growing senseof a digital divide between thetechnological “haves” and “havenots,”and the accompanyingfears of job loss, could alsostall the push, especially in lessdeveloped markets. Politicalissues, too, must be watched,given the likelihood of regionalbattles over turf and power, and“not-invented-here” reactionsto new technologies. Economicsand RisksA relatively robustinfrastructure is already inplace to support digitization.But the amount of investmentrequired to fully realize it isdaunting, both for the additionalinfrastructure needed and forthe services and applicationsto be built on top of it.Governments around the worldare contributing billions ofdollars to the effort.Yet problemsremain: Conflicting economicinterests have the potential toslow down further investmentsin infrastructure, potentiallyleaving much of it without thebandwidth and speed neededto support full digitization. Andrecent major malfunctions andincidents of theft of criticalpersonal and corporate datacontinue to raise questionsabout the risks involved inplacing too much faith in thereliability of the complex digitalenvironment. Regulation andLegal ConsiderationsThereis already considerablegovernmental and institutionalsupport for digitization,including regulations concerninghealth information and privacyissues, and laws involvingliability risks as they relate toinformation and networking, atleast in some jurisdictions. Manygovernments have also helpedpromote consistency in thecreation and use of technologicalstandards, and exerted a greatdeal of influence over the fairallocation of spectrum, for themost part. Uncertainty lingersover several of these areas,however. Spectrum is becomingscarcer, and its allocation willlikely generate fiercer fights incoming years. The debate onthe regulation of infrastructure,its construction, and fair usecontinues in many markets. Andvarious legal issues regardingliability—in the case of injuriescaused by automated systems,for instance—and ownership ofcontent rights remain largelyunresolved. TechnologyAnumber of trends in technologyare coalescing to promotethe coming transformation todigitization. We have not yetreached the limits of Moore’sLaw, and the cost of all kinds ofcomputing and communicationsequipment and devices keepsdropping. Meanwhile, theglobal implementation ofhigh-speed fixed and mobilenetworks continues apace,creating a geometric Metcalfe’sLaw effect as the value of theworld’s telecommunicationsnetworks grows in proportionto the square of the number ofconnected users of the system,dramatically increasing the valueof the Internet economy. Anddespite occasional setbacks,more and more users areadopting cloud services, a movethat is also promoting the fastercreation and adoption of highlyuser-friendly applications andprocesses. The globalization ofinnovation hotbeds—includingthe creation of Silicon Valley–like communities outside theU.S., in Russia, India, China, andSingapore, to name but a few—supports this process. Muchstill needs to be invented: Mostof the world’s infrastructureinformation is not yet digital,but scanning technologies aswell as “digital wraparounds foranalog things” will drive furthergains (see “Digitizing the High-Tech Sector,”). Knowing theaccelerators and deceleratorsaffecting the rate of digitizationin each industry and geographyis critical as CEOs and theirexecutive teams decide howto go about taking advantageof these trends. And while wewould not recommend standingin the way of digitization, itgoes without saying that anyoneseeking to retard the rate ofchange will also want to beginby making sure they understandthe factors driving digitization.CONCLUSIONWe expect, indeed hope,that a key conclusion of ourstudy—that the digitizationphenomenon has reached apoint of inflection and the rateof change is accelerating—willnot come as a surprise to theCEOs and executive teams ofmost of the largest companies inthe world. They have read aboutand seen the changes alreadytaking place in any number ofindustries, most likely includingtheir own. But what this impliesfor the decisions they needto make and the capabilitygaps they need to fill, givenscarce capital and resources, isonly now becoming clear. Thework we do across the globereinforces in our minds theimportance of first assessingyour industry, geography, andcompetitive position, andthen deciding on the tradeoffsregarding where to placeemphasis and where to hold off.Understanding the acceleratorsand decelerators of change is thebest way to determine how toshape the trend to digitizationto your company’s advantage.December 2011www.teletimesinternational.com53

Prime Minister of Pakistan approves 3G policyPrime Minister Syed YusufRaza Gilani has approvedthe 3G (third generation) policyfor up gradation of country’stelecom sector and directed theCabinet Committee to bring thepolicy before the Cabinet for itsfinal approval.The Prime Minister accordedapproval while presidingover a meeting on 3G andGrey Traffic and AdditionalSpectrum auction for WirelessLocal Loop here at the PrimeMinister House. The Ministryof Information Technologygave a presentation onrecommendations formulatedby the Cabinet Committee,comprising Minister for FinanceDr. Abdul Hafeez Sheikh,Minister for Water and PowerSyed Naveed Qamar, andMinister for PrivatizationGhous Baksh Mehr andMinister for Petroleum andNatural Resources Dr. AsimHussain.The Cabinet Committee’srecommendations pertain toauction of 3G frequencies anddefunct instaphone licensealong with allocated frequencysimultaneously but in quicksuccession. To encouragecompetition, new internationalChairman PTA inauguratesTransworld's Data Centre In KarachiChairman PTA, Dr. MohammedYaseen has said thatPTA is fully committed to thetask of regulating, issuing newlicenses and to introduce newspectrums and technologies,but the private sector also hasan important role by investingin ventures. This he said whileaddressing in-augural ceremonyDecember 2011players as well as existingoperators would also be invitedfor instaphone license auctionbeing the sixth of the existinglicensee in the country and nota new licensee.Furthermore, it was decidedthat three blocks of 10 MHz(megahertz) each out ofavailable 3G spectrums wouldbe immediately offered forauction and existing operatorscan participate in this roundas well. New players willalso be invited but withprovision that if new playeris successful in bid, then theywould be eligible to resumeoperation only after March2013 when moratorium onnew licensing as per previouscabinet committee decisionwould expire. It was alsodecided that more spectrumwould be made available for3/4 G services and offered forauction with the provision thatwinners of such auction will beawarded licenses and allocatedfrequencies by March 2013 andas such will be able to starttheir services thereafter.It was also decided that inorder to ensure professionalismand transparency, a committeeof public sector stakeholders,including representativesfrom Ministries of Finance,Information Technology,PTA (Pakistan TelecomAuthority) and representativeof Frequency Allocation Boardto supervise auction processand the PTA would devise anappropriate methodology toconduct varying componentof this auction as decidedunder the supervision of thecommittee. On the issue ofGrey Traffic, it was decided thatthe Cabinet Committee wouldconsider this issue and put therecommendations to the PrimeMinister for approval.of Data Centre establishedby leading Telecom companyTransworld in Karachi, the eventwas attended by executivesof telecomm industry, mediapersons and employees of thecompany.Dr. Mohammed Yaseen said thetelecom industry has had tobattle a host of issues rangingContd. on page 61www.teletimesinternational.com55

Prime Minister of Pakistan approves 3G policyPrime Minister Syed YusufRaza Gilani has approvedthe 3G (third generation) policyfor up gradation of country’stelecom sector and directed theCabinet Committee to bring thepolicy before the Cabinet for itsfinal approval.The Prime Minister accordedapproval while presidingover a meeting on 3G andGrey Traffic and AdditionalSpectrum auction for WirelessLocal Loop here at the PrimeMinister House. The Ministryof Information Technologygave a presentation onrecommendations formulatedby the Cabinet Committee,comprising Minister for FinanceDr. Abdul Hafeez Sheikh,Minister for Water and PowerSyed Naveed Qamar, andMinister for PrivatizationGhous Baksh Mehr andMinister for Petroleum andNatural Resources Dr. AsimHussain.The Cabinet Committee’srecommendations pertain toauction of 3G frequencies anddefunct instaphone licensealong with allocated frequencysimultaneously but in quicksuccession. To encouragecompetition, new internationalChairman PTA inauguratesTransworld's Data Centre In KarachiChairman PTA, Dr. MohammedYaseen has said thatPTA is fully committed to thetask of regulating, issuing newlicenses and to introduce newspectrums and technologies,but the private sector also hasan important role by investingin ventures. This he said whileaddressing in-augural ceremonyDecember 2011players as well as existingoperators would also be invitedfor instaphone license auctionbeing the sixth of the existinglicensee in the country and nota new licensee.Furthermore, it was decidedthat three blocks of 10 MHz(megahertz) each out ofavailable 3G spectrums wouldbe immediately offered forauction and existing operatorscan participate in this roundas well. New players willalso be invited but withprovision that if new playeris successful in bid, then theywould be eligible to resumeoperation only after March2013 when moratorium onnew licensing as per previouscabinet committee decisionwould expire. It was alsodecided that more spectrumwould be made available for3/4 G services and offered forauction with the provision thatwinners of such auction will beawarded licenses and allocatedfrequencies by March 2013 andas such will be able to starttheir services thereafter.It was also decided that inorder to ensure professionalismand transparency, a committeeof public sector stakeholders,including representativesfrom Ministries of Finance,Information Technology,PTA (Pakistan TelecomAuthority) and representativeof Frequency Allocation Boardto supervise auction processand the PTA would devise anappropriate methodology toconduct varying componentof this auction as decidedunder the supervision of thecommittee. On the issue ofGrey Traffic, it was decided thatthe Cabinet Committee wouldconsider this issue and put therecommendations to the PrimeMinister for approval.of Data Centre establishedby leading Telecom companyTransworld in Karachi, the eventwas attended by executivesof telecomm industry, mediapersons and employees of thecompany.Dr. Mohammed Yaseen said thetelecom industry has had tobattle a host of issues rangingContd. on page 61www.teletimesinternational.com55

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