Opportunities & Threats - Pakistan’s Telecom Sector

Posted by: Reality Bites on November 6, 2008 at 3:56 AM

“After weapons’ manufacturing industry, ‘Telco Industry’ is the world largest domain, said a renowned Telecom analyst of Asia, and in deed Telco industry has been playing major role in market & benefiting consumers in day to day operations.

Call : Mom , lecture ended please pick me up from university, ok son , I will pick you up …
SMS: So do you agree? - yes , then Deal Done! …
SMS: thank you I have made the payment.
Call: What happened? Its accident, ok let me call 15 or 1122 to inform them about the injuries and losses & this list goes on….! Continue Reading This Story

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How Zong Became a Success Story!

Posted by: Aamir Attaa on November 3, 2008 at 5:35 AM

“Chinese will manage Pakistan’s market, and they will outplay everyone… They know how to get it”, I was told this by Mr. Frederic Rose, President then, Alcatel Shanghai Bell, Alcatel-Lucent’s flagship company in China. He was here in Islamabad to sign one billion dollars network expansion contract assigned to Alcatel-Lucent by China Mobile, which had recently acquired Paktel.

He replied me up given line when I had asked him that Pakistan’s market is already well saturated, how come a cellular company starting from scratch will be able to compete with Giants like Mobilink, Telenor, Ufone, Warid… given that, all these four companies bear very strong financial background, as well expertise of running GSM networks in multiple regions.

I am wondering now that how true Mr. Rose was. Yes, China Mobile has proven itself as a brand now, and it looks like they are going to give tough time to other cellular companies in coming days.

The hardest part for China Mobile was to rebuild the image that had been lost by Paktel; often we see, it’s easy to make a new building, than of restructuring a damaged one.

Launch

I was discussing this success of Zong with Babar Bhatti, who was kind enough to give me time before leaving for US tomorrow, and he rightly spotted that China Mobile didn’t rush in launching its brand. Zong took its full time in preparation and came up with a very powerful launch campaign, though we found that campaign as copied one, but until then it had left its impact on Pakistanis. Continue Reading This Story

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Mobile Network Coverage & Quality in Pakistan

Posted by: Reality Bites on November 3, 2008 at 4:17 AM

It is estimated that almost 19000 cell sites have been installed by five mobile operators in different urban and rural areas of the Pakistan, in which Mobilink is on the top and Ufone fallowing on the same track with almost more than 4536 cell sites and others seems to be growing.

It is always observed that network coverage played important role for cellular operators to be a market leader with the help of value added services, as the network coverage remains the key element for increments in subscribers within months.

In this customer acquisition formula 1 race, where everyone is trying to compete each other with all tweaks and tricks they can play in grabbing customers from other operators and even attract new acquisitions to increase more revenues.

According to Ministry of Information Technology Mobile cellular policy, Telco operators are bound to roll out at least 70% network coverage of tehsil headquarters in four years with minimum 10% tehsils in all provinces. Most probably all cellular companies have attained this level in coverage roll out plan, but question is still remained unanswered, how quality of the network has been maintained so far?

Because voice distortion, call hangings, anonymous connectivity, call connection time, air interface blocking, call completion rate, call quality etc are still the same issues for customers faced in rural and urban areas. Continue Reading This Story

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U-Campaigns Need U-Turn

Posted by: Abu Asma on October 31, 2008 at 8:20 PM

Let me introduce Islamabad based Abu Asma, who is associated with advertising for 12 years now and is currently a Creative Director in a leading advertising Agency. Let’s welcome Abu Asma as latest addition in ProPakistani’s Team.

It is a general view point that money making in Telecom Sector is very simple – they lay down their infrastructure once, and then they can reap money for ever. Indeed this phenomenon is logical, but in real this might not be the case with every venture as some towering expectations might get crashed in days.

With multiple telecom players available in Pakistan, all the telecom companies are fighting hard to increase their share in market. It is very interesting to see that now mobile companies are offering call prices in Paisas to attract more customers and their strength to sell their products by advertising.

As a creative professional most of the time I wonder that big companies just believe on ambush marketing with out localizing the content of their adverts – also, without keeping their customers in mind. Today we have selected Ufone to discuss its advertising campaigns and their approach towards TVCs. Continue Reading This Story

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UPS Market Review and Buying Guide

Posted by: Aamir Attaa on October 27, 2008 at 2:42 AM

We had covered this Uninterrupted Power Supply (UPS) market review few months ago, however, changes take place in days now. As the energy crisis continue in Pakistan, in fact it has gone worse, people are again rushing towards UPS markets to get themselves electricity backups.

Thanks to winter, general people may not require UPS units as they did in hot summer, but businesses, students, and those who want to remain in tact with their electrical devices are in crucial situation due to unannounced and long run power failures.

Okay, I am covering only UPS market review, hopefully I will bring forward Generators’ market review as well in coming days, but lets focus on options and prices for UPS units in this article.

We saw two very significant things, one that UPS market is undergoing tremendous rush, and same is the case with prices. By the way, these prices went down in month of Ramadan (as there were no power outages then), but once again UPS businesses have gone high.

We noted that average cost of a Rs. 10,000 UPS has increased by almost 30 percent when compared to prices in May-June 2008. Retailers say this increment is due to the fact that manufacturers have increased prices of raw material on pretext of higher production cost due to higher imports of accessories.

A survey of retailers unveiled that UPS with a capacity of running two fans and two lights is hot item, and its sale has gone as high as 30 percent. It merits mentioning that this is least powered UPS available in the market, and is mostly used by small to mid sized shopkeepers and home users.

It merits mentioning here that there are two types of UPS available, imported ones and locally assembled. Retailers said that buyers prefer locally made UPS units for two reasons. 1 – They are inexpensive, 2 – Imported UPS units come with no warranty, hence more risk for buyers.

As the demand is increasing, there are more people getting involved in making of these local made UPS units. This retailer named, Hafiz Imran confirmed that there are tens of UPS manufacturing plants working in Rawalpindi. By the way, Daily Time lately reported that there are around 45 manufacturing units of UPS are working in the different parts of the Karachi only as cottage industry. The wholesalers have doubled their orders in order to meet the growing demand.

It was also reported that there comes lots bugs and after sale complains due to ordinary quality and unqualified technicians who make these UPS units in lesser time.

With UPS units, there come batteries, which are used with UPS units to keep your electrical devices alive – and scenario is not different of batteries as well, as prices have gone high here too.
So this is what the market has been undergoing, now check out these tips that you must consider before buying a UPS

Things to consider for Buying a UPS

  • Try to put minimum load on UPS, that is don’t try to put all electrical devices on your UPS, instead make sure that only power critical devices are on UPS
  • Once you have decided what items you will be running on UPS, calculate their power load. For this, don’t rely on UPS shops, instead ask for electrician in your colony and let him calculate the power load that you will be running on UPS. For instance, a computer with 17 inch monitor is likely to require 400 to 450 watts. Similarly, calculate your entire load and make sure what power do you require from this UPS.
  • Go into main electrical markets of your city, instead of your corner electrical shop. Check around in couple of shops for the rates for the power your need. Let’s assume you need a UPS of 1000 Watts, then ask around what quotes you get.
  • Please note that there are NO OFFICIAL RATES, so you will have to do little research to save you couple of thousand Rupees
  • Please make sure that battery is nothing to do with your UPS. Your batteries will be responsible for backup time. So if you purchase a low ampere battery, it will give you lesser time and vice versa.
  • Once your UPS is ready, make sure that it is giving output of exactly what you had asked for. For this purpose you can keep along your cousin or friend who knows a little about electrical meters, ask retailer (shopkeeper) to verify that this UPS is giving out proper voltages.
  • If you are planning to use computer with this UPS, make sure that UPS unit supports it. For this direct the shopkeeper to make it computer complaint. (They make little configuration changes in your UPS, which prevents your Computer rebooting when electricity goes down.

Prices for UPS Units with Built in Dry Batteries

These UPS units come with built in Dry Batteries, and stabilizers. Means you get a once pack solution and simply take it home. But make sure that back-up duration for Buil in Dry Batteries’ UPS units is between 10 to 15 minutes only - Meaning that these are mainly for computers and for just saving your files and allowing you enough time to shut down your computer. (In case you need more backup time, then check for below given UPS prices that come without Batteries – and you can add up batteries to get more back up time)

Continue Reading This Story

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State of Pakistan’s Telco’s and Customers Retention

Posted by: Reality Bites on October 16, 2008 at 6:50 AM

According to PTA’s very recent public stats, the total numbers of cellular subscriber in Pakistan are soon going to hit 90 million mark. The saturated Telco’s market of Pakistan is now asking for QoS (Quality of Service), Continuous improvement in network infrastructure and customer service & care programs.

If we randomly analyze the Pakistan Telco’s market, we will get the findings that almost all of the major factors have been utilized. Recently, we all have observed new launches of Mobile Telco, though market was expecting huge change in pricing structures and in some DATA services to be free, but results were not as anticipated.

According to an estimation, it has been observed that most of the cellular subscribers utilize these connections as the secondary choice (few people may have different opinion here) and they registers every number as a habitual behavior.  Thus investing millions of dollars in the same arena for customer acquisition is no more tactful attitude as it was before.

As pricing competition in Pakistan’s cellular market has almost broken every global record. The cheaper products & Services offer to try and beat off rivals’ offers, it’s a profit killer.
Continue Reading This Story

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MOBILE PHONE, Your Best Mate?

Posted by: Bites85 on October 10, 2008 at 3:20 AM

Post by Bites85 of Newz on Fire

Mobile Phones surged into Human beings rapidly, and soon they got addicted to this technology marvel. There are almost 2.7 billion mobile users around the world, ranging from teens to tycoons. Every single person loves to hang out with this device – or say, they simply can’t think of life without it.

In Pakistan cellular industry has shown rapid growth, especially in last few years… As per PTA stats, there are 89 million mobile users in the country, which were only couple of millions some years ago. This clearly depicts that how gigantic Telecom Industry has become.

Every company is trying to beat its nemesis – and efforts are clearly seen to beat each other in this corporate battle. Where these cellular companies brought tons of investment into country, and played constructive role in bettering lifestyles, at same time the tussle between cellular companies has actively spoiled our youth. Every single boy and girl has a mobile phone and they are found texting and talking on their cell phone all the times.

Let’s discuss the impact on youth of various services and packages that cellular companies offer

Night Packages:

These days every company is providing very inexpensive (or even free) calls at night. These calls are like Rs. 5 and, hence are affordable for even an average teen. They talk all night long with their (girl/boy) friends. Use their pocket money to buy credits. At times, even they cheat their parents, and use mobile without their permission. Many boys and girls also talk to their so called lovers. Which can be basically termed as a teen crush?

A study done by a British institute revealed that late night mobile chatting makes teens tired and mentally distorted - as they have to wake up early. Consequently they can’t concentrate on their studies and are often found sleeping in their classes.

Sms Craze:

Messaging, messaging and messaging is what the teens do these days. It’s a symbol of being cool. The one who got more messages is considered the cool one. Teens forward jokes, romantic lines, riddles and even immoral adult messages. SMS Craze in teens can be judged by the typing speed and their accuracy to type messages on little dial pad. They just thumb the mobile and don’t stop.

Pedia Services:

Ask any question through sms is the newest service especially for the teens. Thanks to this service teens can now more efficiently cheat in their papers and quizzes. Zongopedia and ASK Telenor are two services. You can easily send a question through sms. Soon you receive answer and get good marks. It’s just another way to make money for these companies by ruining the careers of teens.

Wap/EDGE:

Now days you don’t need to turn on your pc on to use internet. Internet is just a click away thanks to wap/EDGE enabled mobiles. This service is good for the people who really need it. But teens normally use it to waste their time. First are the messengers which don’t let teens sleep at night, then comes the facebook and other social websites to keep them awake.

Un registered Sim cards:

The last thing which is the biggest menace is the un-registered sim cards. It gives you the passport to do all the wrong things because no one can catch you. I can bet that every single teen has a un-registered sim card. Our government tries so hard to block them but our teens are much smarter. You can talk to anyone, black mail them, do what ever you want.

Let me tell you a shocking thing about un-registered sim cards. I am doing my 2nd year from Army Public School & College, Ordnance road Rawalpindi. Yesterday there was a bomb blast threat at our school. Administration evacuated all the classes and asked the children to run to ground, and latter they were asked to leave for their homes earlier than routine time. Afterwards, they searched the school but it was just a rumor. Today through my close sources I got to know that it was a prank call made by a 7th class student from Saint Mary’s school Tulsa road Rawalpindi… He used an-unregistered sim card. Sadly he was caught by the authorities and God knows what they would have done with him.

MMS/Videos

There are hundreds of examples, where MMS and Videos of their lovers were captured by teenagers and what happens next is a topic that i am feeling is not good to touch… but one can imagine the seriousness of the issue!

Conclusion:

So who is responsible for all this? Cellular companies? Or we ourselves? Cellular companies are just doing their business. There goal is to make more and more revenue. As a business entity they don’t need to care about anything. In fact mobile companies encourage teenagers to call their lovers, for example in one of Telenor’s  TVC, one guy asks another “Itnay minutes Aaliya ko mananay kay liye kafi hain na?”

So its we who let them spoil us. We are getting addicted to this device. Our parents should keep a check on us, at the same time we should save ourselves by controlling our desires. Think about it

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Mobilink Loosing Its Ground or Already lost it?

Posted by: Aamir Attaa on October 6, 2008 at 1:50 PM

We have seen Mobilink’s declining sales in previous months, which maybe didn’t jolt experts’ mind due to their size and weight of customers. It’s very obvious that a company with subscribers’ base of 31 million can not attain growth rate of even 1 percent or so, also given that cellular subscribers’ teledensity has hit 56 percent mark.

But following figures of international outgoing traffic for cellular companies (through PTCL) for the period of April, May and June 2008 may wide open many eyes. A very reliable industry source has given us these stats (however these stats can’t be considered official – but we are likely to see them in coming PTA’s annual report) which reveals that Mobilink is almost disappearing from the graph.

May 2008 can be considered most shocking month for Mobilink, as they were able to generate merely 56,142 minutes for international calls compared 64,371 in June 2008. For all of three months, Mobilink earned total of 1,581,309 international minutes. Even Zong scored more international traffic than Mobilink with 5,356,917 minutes in the same period.

Mobilink Loosing Its Ground or Already lost it?
While on other hands, Ufone’s skyscraper is seen very firm standing at 81,340,900 minutes for three months. Warid is heading Telenor with 18,533,756 minutes, where Telenor gained 12,504,509 minutes. Instaphone seems contented with their 5,438 international outgoing minutes in three months.

This traffic information for international outgoing is just a depiction of market situation. However, we can’t actually assume this international traffic (through PTCL) as directly proportional to local or national traffic these companies have; but due to a fact that international traffic contributes major part in revenues (due to very low local call rates), it is considered vital. We are awaiting official comments from Mobilink on this.

We are not sure about how well Mobilink’s international call half rate offer played for them, but we hope that cellular giant is going to do enough in coming months to retain its position.

Note: These stats represent traffic carried away from PTCL Gateway for International outgoing calls only.

Update: In response to a question that If Mobilink uses any other gateway for international outgoing traffic other than PTCL?? If yes then what proportion of international traffic is routed to PTCL’s gateway? and what share goes to other resources?

Mobilink official replied: ” We use our own LDI (Long Distance International) in addition to PTCL”

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