Posted by: Aamir Attaa on July 24, 2008 at 1:28 PM
There are multiple examples in Pakistan, where unknown people intercept cellular voice and SMS communication of mobile users; afterwards they blackmail them and earn some bucks. I have received mails from at least 4 of my readers who have reported such instances happening with them. One of such mail was also made public, whose number was being intercepted by someone and the issue is still unresolved.
Earlier on, we thought that this can be some hacker who had compromised the security of GSM network, however latter it was discovered there hacking of GSM network is not possible. like a reader left his comment, which reads, “Mobile hacking is not possible in a GSM network…..Only operator can listen user’s calls or if someone have duplicate SIM with same IMEI, there are some security algorithms and no one can break it”
Now, here is the situation, victim mobile users raised their voice that cellular companies’ staffers listen and record their voice and data communication and then they blackmail them.
A very reliable source, requesting anonymity has told that the issue reached and it was discussed in Federal Cabinet that cellular companies’ staffers are bothering youngsters and threatening them to either give them money or they will provide their parents with their voice tapes.
Now a high member from Ministry of IT and Telecom has written a letter to Pakistan Telecommunication Authority to seriously look into matter and make sure to stop such practices and culprits involved should be penalized.
On other hands we know that in the name of security, there are multiple authorities, which can track our very personal voice calls. Issue must be addressed very clearing defining the regulations so that un-authorized may not reach our voice conversations in any way. (We are in Pakistan, so I am not raising any voice against Interior Ministry of Intelligence Agencies, however their act of listening to anyone’s voice conversation over phone is against very basic human rights)
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Posted by: Aamir Attaa on July 23, 2008 at 7:15 AM
As we saw a news yesterday, that cellular connections will now be posted directly to postal addresses instead of direct selling at franchisees (or other unauthorized outlets as well).
News was naturally not welcomed by the cellular companies, showing their concerns regarding the issue. Cellular companies believe that they are doing their best to curb sale of illegal SIMs. They further believe that they blocked more than 5 million SIMs from their networks that has already caused them heavy loses.
General public is terming Pakistan Telecommunication Authority as the sole responsible for taking the nation to this situation. However, following the tradition, no action has been taken against PTA or any other cellular company, like they take against general public for violating the law.
The boom in the telecom sector, which the PTA has been calling the success of regulator’s policies, is either over now, or we are heading toward the bad end with time. Indictors of telecom sector of Pakistan clearly shows that telecom companies are struggling with sales and on other hands the price war is hitting their revenues badly.
Lately, a senior official of Ufone reported that only 2 companies are going in profit, otherwise remaining cellular companies are bearing the loss despite of their existence in market for last 4/5 years (except Zong).
Growth rate in the country for cellular users has been slowing for some time now. In June 2008 monthly growth rate hit a new low of 1.5%. On a rolling annual basis, growth dipped below 40% for the first time since 2000.
I would like comments from experts regarding measures that PTA should take in order to better the situation, so we may not see another Millicom running away from our country in coming couple of years.
[Graph Via Cellular News]
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Posted by: Aamir Attaa on July 16, 2008 at 2:08 PM
TA has issued an initial draft called “Telecom Consumers Protection Regulations, 2008”, to populate regulations for protecting consumers rights. PTA says that these regulations were first made public in March 2008 for industry’s comments; and now it has revised the draft upon the feedback it got.
PTA has been seeking for further input from Telecom companies, consumers and telecom analysts to finalize these regulations to ensure that telecom consumer’s rights are well protected.
It is very good to see that Pakistan Telecommunication Authority has come up with much awaited regulations to introduce code of commercial and business activities for telecom companies. I have written before on how telecom companies had been looting consumers for either misguiding or not properly educating them about their products and services.
You can download the draft Here. (Right Click and save target as; PDF File Size: 106K)
And if you find anything that is not appropriate or you want to add any thing in this draft, send your feedback at: law@pta.gov.pk
I have selected only couple of points from the draft, my comments are in red font
Continue Reading This Story
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Posted by: Aamir Attaa on July 10, 2008 at 6:51 AM
Telenor has introduced a new package under its djuice brand that is aimed at those who love phone chatting at night. Yes it offers free calls at night from djuice to djuice and to Telenor Numbers. Offer is apparently not that bad, especially when only Rs. 3.99 per day (excluding tax) are deducted and you are offered to call your F&F numbers for FREE all night long! Not only that, you can still use the very attractive day time rate of Rs. 0.5+tax/30 sec to call the same F&F numbers
How to Subscribe to Jaagtay Raho
Its simple, write an SMS-> MIGRATE & send it to 345.
In response to this SMS you get following message…
Dear Customer, please select the price plan. Reply with your choice as 1,2,3,4,5.
1. New – djuice Jaagtay Raho
2. Talkshawk A1
3. Talkshawk Har Second
4. Talkshawk 30 Second
5. Talkshawk har Minute
Reply with 1 to activate djuice Jaagtay Raho, simple na
Call Pricing:
FnF Calls 1am-6am: Free (call setup fee of Rs. 0.05 will apply)
FnF Calls 8am-12am: Rs. 0.5+tax/30sec
FnF Calls 6am-8am & 12am-1am: Rs. 4+tax/HOUR
Check points
- These pricings, mentioned above are for only Friend and Family Number on Jaagtay Raho
- One time service activation Charges: Rs. 25 Including Taxes
- For calls at night, call setup charges will apply: Rs. 0.05+tax per call (on FnF calls from 1am-6am only)
- Daily Deduction: Rs. 3.99+tax
- Minimum of Rs. 5 Balance required to initiate any call
- This is a limited Time Offer
How to convert your number to Telenor djuice?
For those users who are with Telenor Calling plans can convert to Djuice with up given method. That is sending an SMS - > MIGRATE and send it to 345
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Posted by: Aamir Attaa on July 6, 2008 at 7:06 AM
Pakistan Telecommunication Authority has failed to come up with any frame work for Mobile Virtual Network Operator (MVNO). According to Mobile Cellular Policy, PTA was due to prepare a detailed guideline and procedures for MVNO before January 28, 2006.
For those who are not familiar with MVNO, let me define this phenomena for you. A mobile virtual network operator (MVNO) is a cellular company (it can be a landline or WLL company too) that provides mobile/landline phone services but does not have its own network. They buy traffic (huge minutes) on wholesale rate from cellular companies and then resale them with their own brand name and prices to end users. MVNO companies are not sufficiently required to install their physical network. However, they normally have their billing system along with customer support and other departments.
Now getting back to its applicability in Pakistan, Mobile Cellular Policy that was approved by the government of Pakistan clearly says that cellular companies will be permitted to allow MVNO’s operators in the country.
Despite of couple of failure examples, MVNO is largely accepted and encouraged by regulatory authorities globally. Not only this, telecom companies like MVNO model too, as they help them grow their network.
- Presence of MVNOs will help telecom companies to focus on network expansion, hence leaving the marketing/branding job for MVNOs. This model saves operational expenses and enhances company’s performance as well.
- MVNO’s are considered as a means of encouraging competition that ultimately lead to more choices for services and lower prices.
- Revenues are shared amongst partners, thus helping the national economy
- Multiple MVNOs affiliated with a single mobile operator can individually target their niche market, for instance one MVNO can focus on Postpaid Customers and while the other can stress and cash the value added services. This process benefit mobile operator, MVNO and end users alike.
Through sources, and discussion on TGP, I know that Mobile Zone has been showing great interest for last couple of years to get an MVNO license in Pakistan. But the sluggish attitude by PTA and even some mobile companies are not favoring idea of MVNo, the sector is yet to see any MVNO operator in the country.
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Posted by: Aamir Attaa on June 27, 2008 at 9:47 AM
Pakistan Telecommunication Authority has finally issued its quarterly report on Pakistan Telecom Industry for first quarter of year 2008. In coming few days I will focus on the report and will extract the summarized information for ProPakistani Readers. In today’s post I will mainly focus on telecom sector’s economic facts and figures.
Local and Foreign Direct Investments
Following the trends of other industries in Pakistan, Telecom sector showed a significant decline for local and/or foreign direct investments . Only major investment was by Oman Telecom when they reached a deal with World Call to purchase its 65 percent shares that valued US 200 million dollars.
Along with a nominal portion of investment (compared to previous periods) was contributed by cellular companies who are pushing their network further into the country side. Cellular companies spent total of US 433 million dollars in this quarter. However, recent investment announcements made by Warid and Zong is going to reshuffle this graph in coming 1 year.
During the first quarter of 2008, total of US$ 156.6 million were brought into Pakistan under FDI account; which showed a decline rate of 47 percent when compared to previous quarter. This decline was due to geo-political situation and instability in the country, resulting overall decline of FDI by 17 percent. Another reason that may come into consideration for low FDI is due to the fact that local financial market has enabled cellular companies to generate revenues locally.
Other than cellular companies, other telecos including LDIs, LLs, WLLs repeatedly showcased low investments.
GST/CED Revenues
We all know that Telecom sector has been greatly contributing to the national exchequer through GST, CED, SIM Activation Tax, withholding tax, regulatory fee, contribution for USF and other duties.
This share was PKR 8.9 billion in year 2001-02, which gained momentum after the emergence of Ufone, Telenor and Warid Telecom, taking the share to reach PKR 36.3 billion in 2006-07.
Price war amongst the telecom companies has taken down the prices towards the lowest possible limit. Consequently, the CED and GST contribution has poised. Despite the addition of over 25 million customers in cellular base in 2007-08, the net increase in CED/GST was notable at all.
In first quarter of 2008 total of PKR 10.89 billion was given away to government by telecom companies/subscribers under these taxes, which is almost the same as of three previous quarters.
CED, GST, SIM Activation Tax, Revenues for all cellular companies are shown in following graphs
Mobilink Leading here for GST/CED contribution with PKR 3576.6 million, Telenor stands second with PKR 2438.5 million. Notable point about Ufone is that they contribute almost half of Telenor’s share, that is PKR 1275.2 million; Ufone stands at third slightly ahead of Warid Telecom which gave away PKR 1118.2 million. New enterant, Zong is at fifth with PKR 508 million…we may see their share climbing up in coming months.
SIM activation tax is directly dependent on the number of new subscribers aquired by any company. It maybe recalled that Government charges PKR 500 per SIM as Activation Tax. Total Activation tax of PKR 4551.5 million was collected in first quarter 2008, almost PKR 700 million less thna of previous quarter.
PTA has included cellular companes’ revenues stats for the first time in their quarterly report, which clearly suggests the performance of cellular companies in terms of revenues. Mobilink again leading the gang, with Telenor at second slot. Ufone and Warid are lagging far behind.
Telecom Imports
Telecom imports remained at US $ 964 million in first 3 quarters of 2007-08. Imports of Telecom equipment saw a decline of US 42 million dollars when compared to previous quarter. In contrary handset imports rose up from US 80.3 million dollars in previous quarter to US 109.9 million dollars in Q1 2008.
Note: All stats, graphs, and other details are taken from PTA’s quarterly Report for Q1 2008. Please let me know if anything is wrongly quoted or needs any addition.
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Posted by: Aamir Attaa on June 26, 2008 at 6:36 AM
Budget 2008 has badly impacted the telecom sector; specifically the cellular telephony which has witnessed a significant rise in recent years will be the worse hit of the consequences of current year budget.
There has been a debate that the government had no other industry to reap the taxes but from the telecom sector. However, on other hands, few experts analyze this situation in a different angle. They opine that heavily relying on telecom, which is already paying so much to government, is going to weaken the economic capabilities of this industry. Not only the telecom users but telecom companies also pay huge money for their licenses to the government of Pakistan, which values $147 million annually.
Let’s review the fact that imposition of federal excise tax, cellular users will give away 31 Rs out of 100 to the government under the name of taxes, leaving them with only 69 Rupees to use for air time. Financial experts say that this increment in taxes will make PKR 15 billion from customers only.
Cellular industry paid PKR 100 billion taxes in year 2007-08, and the expectation are they will hit PKR 120 billion mark this year.
Government should had considered at least the elimination of SIM activation tax (which is PKR 500 per new SIM) to help the growing industry, and to also encourage investors that are keenly eying emerging markets like Pakistan.
Cellular companies are in tough price war to offer low calling rates to mobile phone users of Pakistan, however, all those efforts may get disturbed. Along with, the additional tax of PKR 500 on handset will further push the sales downward way.
The thought of benefiting the telecom sector by relieving taxes is considerable specifically when 210,000 people are directly employed and over million indirectly employed in telecom industry. Elimination of taxes may not bring short term goodies but it could help the country to gain economic stability in long run.
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Posted by: Aamir Attaa on June 18, 2008 at 10:36 AM
As discussed before, Pakistan Telecommunication Authority had increased the annual fee of Universal Access Numbers (UAN) from Rs. 5,000 to Rs. 500,000…PTA has published an advertisement (also given below) asking bidders to register themselves for the auction of UAN numbers in 3 categories
- Platinum
- Diamond
- Gold
Numbers are given below in PTA’s AD
How to Apply
- You can register yourself to get enlisted for participation in auction process by creating an online account here
- Pay advance registration fee with proof of payment prior to last registration date
- The registration process will close on 31 July 2008
- Registration fee is as following
- Platinum: Rs. 500,000
- Diamond: Rs. 320,000
- Gold: Rs. 160,000
- The registration should be treated as annual number charges for successful applicants
- Registration fee for unsuccessful bidders shall be returned with 24 days after auction
- Bidding shall be two stage auctioning, highest stage-1 closed bid price shall be the floor price of stage-11 open bidding
- The successful bidder shall pay annual number charges against particular cataloger by 31 of July for each subsequent year
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