Report - United States Department of Defense

UNCLASSIFIED
Recent developments in the ICT sector hold promise for continued economic growth. Since the
introduction of 3G mobile broadband service in June 2012, 3G service is now provided by three
mobile companies, available throughout 11 provinces and covering 13 provincial capitals (as of
early February 2013), according to the Ministry of Communications and Information
Technology. More than 200,000 Afghans have adopted 3G so far, with that number growing
every day.
On November 18, 2012, the Afghanistan Telecommunication Regulatory Authority issued three
broadband wireless access licenses, which will allow Afghan Internet Service Providers (ISPs) to
provide high-speed last-mile connectivity to Afghan enterprises and institutions, thus improving
access to broadband Internet service. Afghan Telecom Corp. decreased the price of terrestrial,
fiber-based Internet bandwidth from $300 per megabyte (MB) per month to $97/MB/month in
January 2013; this price reduction will continue to stimulate Internet demand and usage. These
developments are significant because, according to the World Bank, increased broadband
Internet penetration in developing countries like Afghanistan is estimated to correlate to an
increased GDP.
Fiber infrastructure. Approximately 2,400 km of fiber, or nearly 73 percent, of the originally
planned 3,300 km Optic Fiber Cable (OFC) is complete and operational to date. The strategically
significant southeast sector – Kabul to Kandahar – was completed in January 2013, but is not yet
operational due to security issues that correctly preclude Afghan Telecom Corporation (AfTel),
the state-owned wire line and wireless telecommunications operator, from activating and
maintaining this segment. The completion of the southeast segment will improve governance,
development, and security in key coalition areas of operation, and provide an alternate and
redundant path of connectivity into Pakistan and undersea cables to the south. Additionally,
completion of the southeast segment will allow for additional fiber installation resources to be
shifted to the southwest, thereby accelerating progress in that region. There are approximately
900 kilometers of fiber remaining to be installed in the southwest region.
Cellular infrastructure. The Ministry of Communications and Information Technology recently
awarded a 3G license to the firm Roshan to join the private firms Etisalat and MTN in offering
service. The ministry's goal is for 50 percent of Afghans to use 3G networks within two years.
A report by the telecom research company BuddeComm estimates that in 2012, some 20 million
Afghans subscribed to a mobile phone plan, an increase of 14 percent over 2011. Ten years ago,
only 20,500 Afghans were subscribers.
As of June 2012, 4,670 base transceiver stations (BTSs) were in place throughout Afghanistan,
providing cellular coverage to 88 percent of the population. In November 2012, AfTel
announced it was embarking on a plan to roll out a new 2G and 3G GSM technology cellular
network throughout the country. In support of ISAF's and GIRoA’s stability and governance
objectives, Afghan Telecom is primarily focusing on bringing communications to the
underserved rural districts and providing continuous 24/7 cellular service in some of the most
dangerous districts of Afghanistan. Based on an ambitious restructuring and operational
effectiveness improvement program, the company is targeting June 2013 for the commercial
network launch. Afghan Telecom plans to establish service in approximately 250-300 additional
locations.
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