China, Pakistan sign agreement to route Internet traffic through Pakistan, generate $400 million revenue
In a groundbreaking move, Pakistan has cemented its position as a regional hub for digital connectivity through a strategic agreement with China. Caretaker Federal Minister for IT & Telecommunication, Dr. Umar Saif, announced four significant milestones achieved in collaboration with key industry players, catapulting Pakistan into a new era of digital infrastructure.
1. Pakistan Internet Exchange (PIE) Powered by DE-CIX: A Regional Connectivity Hub
The highlight of this agreement is the establishment of the ‘Pakistan Internet Exchange (PIE) powered by DE-CIX,’ the country’s inaugural carrier-neutral Internet Exchange (IX) located in Islamabad. This collaboration positions Pakistan as a central point for regional connectivity, paving the way for substantial revenue generation through internet transit traffic. DE-CIX, a global IX operator, brings its expertise to boost Pakistan’s digital connectivity landscape.
2. Transformative Agreement with China: Regional Connectivity Hub
A key achievement is the agreement with China, allowing Pakistan to route internet traffic through the country. Dr. Umar Saif emphasized the transformative impact, envisioning Pakistan as a hub for regional connectivity. With a massive digital market and a user base surpassing Italy’s population, this partnership aims to offer low-latency interconnection and localize global content within Pakistan.
3. Etisalat-Powered Carrier-Neutral Internet Exchange Point and Data Center
Etisalat, in collaboration with PTCL, is set to establish Pakistan’s first carrier-neutral Internet Exchange Point (IXP) and data center. Operated by PTCL and DE-CIX, this data center will facilitate the provision of super-scaling cloud services such as AWS, Google Cloud, and Azure within Pakistan. Moreover, it will serve as a local content hub for popular platforms like YouTube, TikTok, and Netflix.
4. PTCL Data Center in Karachi: Driving Digital Economy Growth
The Pakistan Internet Exchange, housed in the PTCL data center in Karachi and operated by DE-CIX, is anticipated to significantly contribute to the country’s digital economy. With an estimated annual revenue potential ranging from $200-400 million through transit traffic, this initiative aims to elevate the internet experience for users and accelerate the growth of Pakistan’s digital ecosystem.
Envisioning a Digital Future
This strategic collaboration between Pakistan and China, along with key industry players, propels the nation into a prominent role in the regional and global digital landscape. The establishment of cutting-edge infrastructure, carrier-neutral exchanges, and transformative data centers signifies a pivotal moment for Pakistan’s digital journey, fostering economic growth and innovation. As the nation positions itself as a digital connectivity hub, these initiatives are poised to shape the future of Pakistan’s digital landscape.
