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.
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Posted by: Aamir Attaa on October 8, 2008 at 4:41 AM
Pakistan Mobile Communication Limited has requested Pakistan Telecommunication Limited to transfer licenses of its affiliated companies that includes, Dancom Online, World Online, Link Direct, Mobilink, Intouch etc.
A very reliable source while confirming this news told that in addition to license transfer requests, PMCL has requested authority to grant additional licenses and O&M agreements for its affiliated companies.
On other hands, Nawa-e-Waqt has reported (in its October 07, 2008 edition) that Orascom has entered into final stages of its talks with Vodafone to sell out 26 percent shares of Mobilink to UK based cellular company. Paper says that there were various sessions carried out between Orascom and Vodafone, and now they have almost closed this deal. However, value of this deal is still unknown.
We had mentioned about this deal back in July that Vodafone and Orascom were nearing talks for sell out of 26 percent shares, however, Mobilink, Orascom and Vodafone officials were constantly denying this. Even now, we are unable to fetch information from anyone directly familiar with this deal.
Meanwhile, Mobilink officials have confirmed us that PMCL has requested transfer of licenses for its affiliated companies. He further said that this transfer is purely on operational and technical grounds.
“Mobilink is a brand name and hence, one cannot sell its shares. There is also no discussion on off-loading any shares of PMCL”, said Mobilink’s spokesman.
While analyzing this statement a telecom analyst commented that Mobilink is a brand as of now, and can’t be sold out, but after the license is transferred, Orascom can sell it out partially or wholly. He further commented that who is questioning PMCL’s sale out?
We are still unable to comprehend Orascom’s this move (if its in real), through which they will loose their most revenue generating unit out of many in various countries – also given that they saw a steep decline in revenues and growth in recent quarters throughout Asia Pacific and Middle East. We hope it’s not a Millicom recap…!
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Posted by: Aamir Attaa on October 5, 2008 at 1:44 PM
Data Solutions (Pvt) Ltd and Tracking World (Pvt) Ltd are offering Pakistan’s very first in-car GPS system. Initially in detail maps are available for major Pakistani cities (including Islamabad, Rawalpindi, Karachi, Lahore, Peshawar, Quetta, Faisalabad, Hyderabad, Multan, Gujranwala and Wah Cantt) and all major national highways.
Streets are labeled and searchable for Islamabad, Lahore and some parts of Karachi. In addition there are close to 40,000 POIs (point of interests) such as fuel/CNG stations, banks, ATMs, hospitals, restaurants, hotels, shops, etc. You may find address and phone number information for most of POIs.
In-Car GPS is made possible through Garmin GPS units. These navigation units range from in-car dash mounted devices to devices for motorbikes. There is also a unit which can be integrated with the vehicle’s LCD and displays the navigational information on it.
Initially in-detailed maps would be available for selected cities They say that they had been developing maps for Pakistan for last two years, and now they are ready to launch GPS services next week through an
Lahore based Tracking World say that, customers can pay one time fee for these navigation units and map to use GPS service for life time. They won’t charge you any monthly subscription fee or data transfer fee afterwords, thanks to their partnership with cellular companies.
Users will have to purchase one navigational device and map to kick going.
Once configured, users can input for POIs or location addresses in navigation device, which will speak out or guide drivers through screen to reach destinations.
Devices’ price: Ranges from $399 to $599
Map Price: $120
For Device pricing and features click here
Your input regarding service experiance (in comment box) will greatly help others
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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 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 12, 2008 at 10:14 AM
In current telecom scenario of Pakistan, innocent subscribers are feeling tremendous pressure and harassment with growing fraudulent activities using cellular communication. It is of common practice that an SMS message that contains information about lucky draw award is received by innocent subscribers who unconsciously reply to such message and losses his balance in return. Besides that some obnoxious calls from a deceiver invites subscriber to come to particular location for award of prize money which ends up in loss of hard earned money of those innocent subscribers.
In the past Pakistan Telecommunication Authority has taken several measures to cap Spam, Unsolicited and Obnoxious Calls and text messages. Until now authority had tried to aware telecom subscribers to report such activities to PTA’s complain resolution number or helpline of respective cellular companies, in order to take action against such callers/spammers.
Lately, PTA has been trying to block unwanted calls on cellular phones in a more organized manner. For the purpose authority gave a tender advertisement in papers, asking solution providers for installation of SPAM filtering devices.
PTA website has revealed about a meeting that was attended by PTA officials and representatives of cellular service providers, in order to identify the critical issues relating to spam, unsolicited and obnoxious calls. In the meeting unsolved spamming problems were discussed that are increasing due to mobile generated fraudulent activities.
Currently Mobilink is offering a service that allows its subscribers to filter SMS (Text Messages), while Ufone is also offering Ufone call block service.
PTA thinks that this is not enough, and there should be an industry standard in order to block such unwanted calls and text messages. For the purpose, PTA also held a meeting with Tekelec (that provided SMS filtering services to Mobilink) to discuss possible solutions for the problem.
Pakistan Telecommunication Authority, after a deep look into the matter may direct all cellular companies to install such equipment that will filter all unwanted calls for cellular users.
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Posted by: Aamir Attaa on September 8, 2008 at 6:49 PM
Federal Board of Revenue has directed the member Direct Taxes to start recovery of income tax from Pakistan Telecommunication Authority, which values Rs. 9 billion in amount, in response to what FBR had communicated PTA to pay their taxes by August 27, 2008, failing which besides imposition of penalty of u/s 183 additional taxes would also be charged at 12 percent per annum, furthermore FBR believed that tax amount will be recovered by adopting all recovery measures as warranted by Income Tax Law.
It was told by a high level official at FBR that PTA is not paying its taxes for last 10 years, and that the tax amount has reached Rs. 9 billion during this time period. The case has been re-opened after it was settled last year when PTA had paid Rs. 1 billion as an installment, but afterwards telecom authority is using delaying tactics to avoid paying taxes, added FBR sources.
When contacted FBR official, who is responsible to tackle PTA’s case, told us that telecom authority is claiming exception which is not due at all; FBR official further said that exemption from tax is not available to government authorities as it was withdrawn by virtue of overriding provision of section 54 of Income Tax Ordinance 2001.
FBR Officer further told that PTA has been delaying this payment for more than 10 years now. “Limit is limit; we can’t send them notices anymore. FBR may direct Telecom companies to submit their license fee directly to FBR if PTA will keep on delaying this tax amount”, concluded FBR official.
When contacted a PTA official, he refused to comment any thing on the issue, as he believed that the matter is both in High Court and Appellate Tribunals, and must not be commented until it is not decided.
Financial analysts suggest that PTA must give this tax, as all other government authorities are paying their taxes to FBR. The amount has to reach our national treasury… Either PTA pays it directly or it goes through FBR, then why not to follow the rule…?
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