Posted by: Aamir Attaa on October 6, 2008 at 10:58 PM
Growing rate of Wireless Local Loop (WLL) subscribers in Pakistan is snatching market share from fixed line market. Recent stats from Pakistan Telecommunication Authority show that fixed-line teledensity has seen a fall while WLL subscribers have marginally grown when compared to previous months. This addition in WLL subscribers is shared by all five major WLL companies operating in the country.
The WLL subscribers of Pakistan Telecommunication Company Limited (PTCL) have increased from 1,126,585 in July 2008 to 1,139,399 in August 2008, followed by Telecracd from 523,773 to 534,809, WorldCall from 500,159 to 509,606, Great Bear from 47,214 to 43,847 and Buraq from 388 to 400.
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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.
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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Posted by: Aamir Attaa on September 29, 2008 at 3:56 AM
Wang Jianzhou, Chairman and Chief Executive, China Mobile, has said that company is interested in expanding its network in emerging markets, primarily in Asia and Africa, despite huge risks.
Reuters, citing Wang Jianzhou has reported that world’s largest mobile phone operator is going to invest further USD 800 millions in Pakistan only. Chief Executive said that after initial investment of USD 400 million, company has injected another USD 1.2 billion for network expansion, while taking number of cell sites to 4000 from just 800 since acquisition took place.
Despite political and markets risks, company is positive to invest more in Pakistani market. “We have a lot of risks, we have a lot of troubles,” Wang said
Wang was of the view that operating expenses in Pakistan are high due to power shortages in major cities and hiked taxes, while China Mobile’s investment in the country is still to see return. These statements can be taken as sighs of relief for Pakistan’s market, especially, when cellular companies are performing too little.
In such a scenario, decisions like these from other cellular companies can better the dropping level of revenues for telecom sector.
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Posted by: Aamir Attaa on September 27, 2008 at 3:34 AM
Pakistan Telecommunication Authority has reported a slack growth of cellular subscribers being added by mobile companies for the month of August 2008. PTA’s latest statistics show that cellular companies were able to add only 0.2 million connections in last month.
On the whole, all companies collectively added net 238,364 subscribers, taking total subscribers in country to reach 89.5 million mark. In the said month, companies showed merely 0.3 percent growth in adding subscribers.
Graph shown below is basically the depiction of telecom industry, which is going through tough time due to number of reasons including hiked inflation, political and economical instability in the country, increased taxes on telecom services and to some extent the policies.
This graph, which is derived from PTA’s statistics show that Zong stood first in August 2008 by attaining 357034 customers. While on the other hands, Mobilink lost 478095 subscribers (I don’t know how it happened, maybe due to millions of unregistered SIMs that got blocked)
It can be said that cellular companies have reached the active chunk of Pakistani market that slightly slowed down their penetration in the big cities. The only idea left unexplored is the rural market, for which I am sure mobile companies have already derived their strategies to expand their services and hit rural community more aggressively.
Overall, as of now, Mobilink is leading with 31.5 million subscribers, followed by Ufone with 18.60 million subscribers after taking back second slot from Telenor, which is now at third position with 18.31 million users.
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Posted by: Aamir Attaa on September 26, 2008 at 8:15 PM
A general feedback would be that not many of would be expecting a single Paper Eid card this Eid…! By the way I am one of them; thanks to Electronic Cards and SMS luxury that we are having in our lives.
Estimates say that 75 percent people now opt for e-cards instead of Paper cards. E-Cards or SMS messages are pure example of innovative services replacing the conventional ones, due to various reason that include
- Fast delivery – just in seconds compared to days or weeks
- Economical –You don’t need to spend anything on e-cards given that internet is available, and SMS are considered almost free (Thanks to SMS Packages)
- Plenty of variety available
- You don’t need to rush to markets and spend your head in traffic jams and crowd
I would like to know if you guys still send/receive paper cards? If yes then why?
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Posted by: Aamir Attaa on September 26, 2008 at 3:38 AM
Mobilink and Ufone quickly responded, like a rocket, to a move made by Telenor yesterday to charge additional 5 percent on all scratch cards and balance share reloads. We are missing Warid and Zong in this charges Gang.
So all Mobilink, Ufone and Telenor prepaid customers, don’t mind if you are deducted additional Rs. 5 when you load a Rs. 100 card. Now you guys will get Rs. 86 in you balance on Rs. 100 card reloads.
Update: Zong and Warid are also charging 5 percent on all card reloads and balance exchanges
Postpaid customers are currently spared from these service charges, but they must fasten their seat belts to absorb any shock in coming days, under the name of service charges (or say them over charges).
Hopefully cellular companies will not compete on these service charges. Apparently all cellular companies are following same rate (primarily set by Telenor, 5 percent), if not the case we may see hike in these service charges in coming months.
On a general note, Government should re-consider taxes on telecom services, in order to keep the growth intact. They must reduce taxes by at least 5 percent to compensate these so called service charges.
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Posted by: Aamir Attaa on September 24, 2008 at 4:14 AM
Unfortunately, Pakistanis had to bear Marriott’s blast on Saturday evening, which not only left physiological impact on Pakistani, but it affected our economy as well. This mishap also arose various questions pointing towards the flaws that our system has within it. In this post, I may not discuss all of them, but my focal point would encircle only the jolts that IT industry felt very severely.
Evacuee Trust Complex aka STP2 (Software Technology Park), is just adjust to Marriot Hotel, Islamabad. This five floored building is home place for a large number of software houses, banks, Multinational firms and even the head office of Ministry of Information Technology and Telecom.
The burst of 1 ton explosion was less than 1000 meters away from STP2 complex; hence caused serious damages to building.
Until now, media has been neglecting this damage that struck STP2 building, leaving it not a viable place to work for IT professionals (until it gets repaired). Thankfully it was a Saturday eve (normally a holiday), otherwise the dead toll may have gone exponentially high. Even now, around 6-10 deaths and 20+ injured are reported in STP2.
Future of these IT businesses is still uncertain, as professionals are being shifted or they are asked to work from their homes. Defiantly not an ideal situation to have…!
I was thinking what can we do in such circumstances? Are we left with multiple options? If not, then let’s join our hands together and help each other.
It has been reported that at least 100 companies are affected and urgently looking for alternate space. Some companies are:
LMKR
Siemens
MOTOROLA
Mondo, GEO PAQ
OVEX Technologies
Microsoft
BrightSpyre
Ministry of IT
PSEB
Bentley
PRAL
Inbox
CISCO
Pakistan Tobacco company and others
PSEB and P@SHA are on the scene and helping IT businesses to get their (temporary) offices. So, if you have some space available to offer to these IT companies, please contact PSEB or PASHA members.
Please share your views? What steps should be taken NOW? How to fight this evil of terrorism?
Also how these continuous economical attacks can be fought? If you were a victim of this attack, in any way, what steps your company has taken to ensure your safety?
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Posted by: Aamir Attaa on September 14, 2008 at 5:27 PM
Banking transactions made over internet (known as E-Banking) are rapidly getting very common amongst businesses entities and masses in Pakistan. This was reflected in a recent report prepared by State Bank of Pakistan, which read that E-Banking has grown as high as 32 percent growth last year (2008).
This report that got published in print media today, said that, a total of 124.6 million e-banking transactions were recorded valuing Rs 13.9 trillion during the last fiscal year (2008), showing a growth of 25.4 percent in numbers and 32.3 percent in amount when compared with the fiscal year 2007.
This significant growth in e-banking is due to massive use of internet, especially high speed internet in Pakistan. Along with come the factors such as increasing number of free launce workers in the country who work for overseas companies tend to use E-Banking instead of paper banking. Furthermore, those who are living abroad are also increasingly interacting with their bank accounts back in Pakistan from internet.
We also see that E-Banking standards maintained by Pakistan banks are not bad; though some may have bad experiences, but largely, systems are stable and reliable. This reliability and benefits, such as, time saving with E-Banking are fetching more users by each passing day.
With this rise in E-Banking usage, there are certain restrictions too, such as daily and monthly transaction limits are insufficient; which actually hinders business entities and individuals to make E-Banking as their primary banking mode. Bankers say that this low limit is to increase security and allowing least chances for fraudulent activities, but on other hands, consumers require more luxury though with safety.
On the same note, I would like to see e-commerce activities in Pakistan. We see that E-Banking is already given good feedback, along with total number of credit and debit card holders reach 6.7 million, there is a dire need of E-Commerce infrastructure layout in the country, and that too in quick time.
More details on this report titled ‘Retail Payment Systems of Pakistan (paper-based and ebanking), are covered in following news item taken from Dawn’s edition of September 14, 2008.
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