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.
Continue Reading This Story
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Posted by: Aamir Attaa on September 10, 2008 at 4:38 PM
Long Distance and International (LDI) operators have agreed to set up a system jointly at PTA for Reconciliation of International Telephony Traffic (RITT).
This decision was taken in a meeting held at PTA Head Quarters, presided over by Chairman PTA Dr. Mohammed Yaseen.
It was decided that the funding of Phase 1(a) of the RITT System would be done based upon the 
International incoming traffic share of each LDI for the months of April, May and June, 2008.
The funding of subsequent phases would be done by calculating running average of international incoming traffic starting from April, 2008 and extending up to the month when the share is being calculated for new contract.
It was said in the meeting that Monitoring & Reconciliation of International Telephony Traffic Regulations were sent to all stake-holders for their inputs. The regulations were finalized after incorporating the received comments and were approved by the all LDI operators.
The Letter of Intent (LoI) for the expansion project of technical facility to curb grey telephony would be issued by PTCL being the consortium head. The contract for the project would be signed by PTCL or jointly by all LDI operators whichever is decided amongst themselves.
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Posted by: Aamir Attaa on September 10, 2008 at 11:21 AM
Warid Telecom has introduced Warid’s Pocket PCO (a very similar product like we had Mobilink’s PCO), in order to take the wireless communication to remote, far flung and less developed areas of Pakistan.
One can use Zem Pocket PCO as a standard GSM handset as a mobile Pay Phone. The Pocket PCO SIM Toolkit allows the handset owner, individual or PCO operator, to create a PCO business at very low initial investment by using a single cell phone to sell airtime to other users at reduced rates.
Salient Features
- Pocket PCO SIM is a special 128K SIM card that will be having only one application i.e. Pocket PCO. The factors differentiating Zem Pocket PCO from a fixed line PCO are as follows:
- A SIM based solution which allows a user to charge differently for any call or SMS made from a normal Zem connection
- Can set advance amount for a call thereby terminating the call automatically after the amount has been consumed at the set tariff rate
- Customer and PCO owner have the visibility of called units and charges during and after the call
- PCO owner has real time access to sales done from the SIM by clicking option in menu
- Bonus balance is awarded on usage of SIM in Motorola C123 based on Rs.1000 reload of Warid scratch card
- A SIM based solution for scratch card recharge and balance inquiry option
What Comes with Warid Pocket PCO
- A Motorola C123 handset
- A handset chord & receiver for use by the customer to make calls as on a normal fixed line PCO
- A PKR 1000 scratch card
- SIM Toolkit application in both Urdu & English language on a 128K card
- Log book to record sales
- Starter guide to help you understand the product functionality
- A Zem Pocket PCO cap & jacket to identify the PCO owner in a crowd
Pricing
Where to get?
Call 321 for details regarding the availability of Warid Pocket PCO
More Details:http://www.waridtel.com/consumer/product/pocket_pco/faqs.php
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Posted by: Aamir Attaa on September 7, 2008 at 10:50 AM
Pakistan Telecommunication Authority has decided to take conclusive measures against PTCL, in case they fail to resolve “Pakistan Package” issue with the authority and other LDI/LL companies in the country.
High level industry sources have revealed that PTA has decided to take severe and conclusive measures against PTCL that has not withdrawn Pakistan Package, despite repetitive directives from the authority.
Sources said that PTCL’s Pakistan Package had raised serious concerns for LDI/LL operators of the country, who have requested Pakistan Telecommunication Authority to play its role in detaining PTCL from continuing its free nation wide calling package, as it is causing them serious losses to their businesses. In response to which authority has directed PTCL to have meeting with LDI/LL operators to get their consent on Pakistan Package within 10 days, other wise authority will have to take decision to hold up the continuity of Pakistan Package.
On an additional note, PTCL launched other packages such as “Phone N Net” and “International Plus Packages” without the approval of the PTA, told a source. On which PTA has warned landline giant to not to repeat this practice again. It maybe recalled that all telecom operators, especially Significant Market Players (SMP) must inform the authority prior to launch of any package.
It merits mentioning here that PTA had directed PTCL to quit Pakistan Package by August 31, 2008, but those directions were put on deaf ears by PTCL administration. Telecom analysts are unable to comprehend PTA’s defensive mode against PTCL, which has been repetitively violating PTA’s directives and apparently PTCL is bluntly ruling the Telecom Sector of Pakistan without any regulations.
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Posted by: Aamir Attaa on August 29, 2008 at 11:10 AM
In a recent development to tackle the economic crisis in our country, the government has decided to impose duties on 380 items (called as luxury items). My focus point is the handset industry that has seen a flat tax imposition of Rs. 250 per handset, regardless of its price or model.
This recent increment in tax is other than the one that was imposed in budget 2008 @ Rs. 500 per mobile phone. Hence the total tax on the import of a mobile handset would be now Rs. 750.
I have discussed before about heavy taxes on Telecom services, handsets and telecom equipment and their bad impact on our cellular growth rate and the revenues that our cellular companies have been earning.
Besides, the worst thing in this flat increment is that it will hit both the rich and poor alike, though the government says that taxes are on luxury items but they need to correct themselves as mobile phone is not a luxury item anymore.
Recent increment in taxes on handset is going to badly disturb the prices of low end phones. And we may see a bad impact on the sales of handset and ultimately the cellular connections.
Via [Pro Pakistan]
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Posted by: Aamir Attaa on August 16, 2008 at 11:11 AM
Cellular companies of Pakistan are facing some tough time inside, as reported by an inside official of a cellular company. They are apparently facing bunch of problems in parallel. These problems are making Think Tanks to decisively operate their minds and bring the lost glory of mobile phone companies.
Mobilink is worst hit of current situation, as opinioned by an telecom analyst that I spoke with. He was actually backed by some facts and the ground realities to support his voice. He said that Mobilink is planning to reshape their policies and strategies to tackle the situation created. That is maybe the reason that Mobilink has gone in passive mode in terms of announcing new Value Added Services and/or any packages (that they used to do every other week). It merits mentioning that latest major activity from Mobilink was back in June’s first week. (however, they launched couple of CSR campagns that included launch of Zeb and Hanya’s album and a Movie that they sponsored). Mobilink is specifically running corporate advertisements on TV channels to keep itself alive, otherwise there is nothing new from them for last couple of months.
Same is the case with Ufone, besides couple of new Value Added Services; they are advertising Uwon for last 6 weeks now. Warid and Telenor are also the effectives. I was eagerly waiting for August 14th, 2008 where I was expecting any special offer from cellular companies or the PTCL regarding our Independence Day, but the day ended with nothing much than just a deceiving package from Warid and the patriotic advertisements.
This quietness by cellular companies can be termed as the bread limit of their tariff plans that they have reached. But the decrement in Sales is still a question mark (given that we have not reached the saturation level in terms of cellular subscribers)
There can be possibly at least 3 major reasons that have pulled down the growth and to some extent the revenues’ graph for cellular companies substantially.
1 – Severe Regulatory Campaign: We have seen Pakistan Telecommunication very active in recent months, after the pressure was exerted from Senate’s Standing Committee to cap sale of illegal SIMs. These actions by PTA (which includes warning to cellular companies, blocking of illegal SIMs, raid on Franchises and Retail Shops) have affected the sale and consequently the growth of companies’ subscribers.
2 – Increased Taxes on Telecom Services: Cellular companies are also not happy with the increment in taxes on Telecom services. Increases taxes have taken up the pricing by almost 6 percent, which has brought down the calling ratio by at least 8-9 percent. Increment in taxes on Mobile Phones has also hindered the way to healthy revenues for cellular companies
3 – Emergence of Zong: Introduction of a new cellular company always works a speed breaker for already operating companies. Zong, which actually did well with their launch acted as hand break on cellular companies’ speed. However, this impact may not last long, but when it was coupled with other two factors; Zong appeared as a negative effect on other cellular companies.
As discussed above, policy makers have joined their head, to think out what possible goodies they can do for their investors in order to hike their revenues and stock values. For the purpose, downsizing can be one of the options in their minds…!
These tightening revnues may cause telcos to use other illegal means of genrating revenues, such as using illegal voice termination (by the way Garmeen Phone of Telenor has done this in Bangladesh). Along with Upcoming 3G license auction is going to cause them spend more money to maintain their name in the market.
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Posted by: Aamir Attaa on July 17, 2008 at 11:02 AM
Telecom sector of Pakistan is facing some tough time in ongoing months, specifically due to significant increment in taxes on cellular services and mobile phones. Along with a factor that came into consideration was severe attitude by PTA towards cellular companies that restrained them to sale illegal SIMs.
In June 2008, cellular companies not only saw a decline in sales but also 9 percent reduction in usage of mobile phones.
“We have witnessed decreased usage of mobile phone in terms of decreased minutes and mobile subscribers. It can easily be estimated that there is reduction in usage by 8 to 9 per cent after announcement of unfair taxation,” cellular companies’ officials told ‘The News’
Mehtab Haider of ‘The News’, in his recent report unveiled very interesting points regarding the state of telecom industry of Pakistan, which in fact shocked me. He notes that instead of freeing taxes on telecom services to further boost the sector the government has implied more taxes to cap one of most fruity sector of Pakistan.
Mehtab Haider, quoting a senior official from Ufone says that out of five cellular companies operating in Pakistan, only two are making profits, otherwise other three cellular companies are still struggling with loss. This is something that I was unable to comprehend, but as the report continued, it said that 150 percent of revenues are invested back by telecom companies, to meet expansion demands and increasing operating expanses.
Report says that this scenario is leading us towards the closures or mergers of cellular companies in coming couple of years.
On other hands, sales of cellular companies are going down to hit only 1.3 million mobile connections (for all cellular companies) in June 2008.
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Posted by: Aamir Attaa on July 1, 2008 at 12:29 PM
A Press Release posted by APP claims that PTCL has revised it local call timing pulse of 2 minute to 3 minutes. Which means that the local call tariff on PTCL landline phones of PKR 2 for two minutes has been changed to PKR 2 for three minutes.This tariff will be in effect from July 1, 2008.
Press Release says that this improved package comes along with promotion that started on June 01, 2008 through which PTCL subscribers are already enjoying free local calls at night.
This move may relieve PTCL customers a bit, but they are not in good trends after getting tons of benefits from cellular companies.
The main discussion that i wanted to get into was if PTCL is now in a phase where it is worrying to acquire and retain its landline customers? The answer is, most probably yes they are! Well there is no doubt that all landline operators, globally, are facing tough competition from wireless communication providers. The scenario in Pakistan is not different, specially with the emergence of WiMAX broadband service providers coming into play, a landline number is not considered as a must have thing for high speed DSL.
After PTCL was acquired by Etisalat, the company failed to leave a positive impression through repetetive attacks on the consumers (Babar Bhatti has summed up the miseries of PTCL customers here). But we have been witnessing a change in company’s mood for last couple of months, as far as the consumers are concerned. This change reflects a thought that company is now trying to show/pretend a positive aptitude towards the customers.
PTCL management would also be eying their dropping revenues and increasing operating expenses. In such a situation, we may see couple of hefty moves from landline giant of Pakistan. Possible moves can be free landline call on a smooth but increased monthly rental.
In any case, they will have to carry their postitive business plans in future too, to relieve the customer and saving their revenues (without decieving custumers) at the same time as well.
[Graphs are carried from PTA's Quarterly Report for Jan-Mar 2008]
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