Have we Reached Cellular Bread Limit?

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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How many Paper Eid Cards are you expecting This Eid?

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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Marriott Blast Jolted IT Companies as Well

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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PTA’s Annual Report will be Available Soon

Posted by: Aamir Attaa on September 22, 2008 at 12:29 PM

PTA has been, somewhat, consistently publishing quarterly and annual industry reports for few years now. These industry reports are packed with industry indicators, industry direction, updates and other major elements of Telecom sector of Pakistan.

Pakistan Telecommunication Authority has failed to publish its quarterly reports lately. Its last report was for Q1 2008, and in past too we have seen PTA missing its quarterly and even annual reports.

When contacted PTA officials, in this regard, in a response to a question that what is actually hindering the authority to publish its quarterly industry report? He said that “PTA publishes 3 quarterly reports while 4th and last one is merged with the annual report. Annual report for the current year will be published shortly.” It merits mentioning here that we have already spent Q3 2008, but there came neither the quarterly report for Q2 nor the annual report.

A PTA source, who requested anonymity, has told us that PTCL was actually the main hindrance for the publication of quarterly report for Q2 2008. He maintained that PTCL had not been giving its data to authority, despite repetitive notices.

However, we have learned that PTCL has now forwarded its statistics for Q2 2008 to PTA and authority has been compelling its report, which is likely to appear soon after Eid.

PTA’s previous annual reports and quarterly reports are available on its website.

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Warid Too Late in Announcing Ramadan Services

Posted by: Aamir Attaa on September 17, 2008 at 10:19 AM

While virtually all Pakistanis fast in Ramadan and feel more pious, hence they are easily found attracted towards Ramadan related services from cellular companies. Almost all cellular companies in Pakistan had come up with services relating to Ramadan that included Namaz Alerts, Special Ring Tunes, caller tunes, Quran Majeed download and so on.

I was browsing though websites of all cellular companies and found that Zong and Telenor did pretty much home work for Ramadan, while Warid also has a section for Ramadan Service

On other hands, Ufone kept beating on their Special Ramadan Package but nothing else… while I was unable to find any Ramadan Services’ Section for Mobilink Customers.

In this post, I am not going to discuss Mobilink for not offering any Ramadan Services for their 32 million customers (it can be part of their policies or preferences); instead I would like to point out Warid Telecom, as they announced Ramadan services on 14th day of Ramadan, little late (in fact too late…). Were they not prepared? Or if they were well prepared than what got them late?

As an ending note, its better late than never, but still Warid’s product managers need to more focous on timely delivery of services.

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PTA Wants Government to Revise Taxes on Telecom Sector

Posted by: Aamir Attaa on September 12, 2008 at 10:51 AM

We have previously discussed the sluggishness in telecom sector of Pakistan. We had concluded that heavy tax impositions on telecom services and equipment including handsets are major factors for decreasing growth rate of cellular subscribers. Along with, we also saw that foreign direct investments that come in Pakistan from telecom sector saw a significant decrement.

Dr. Yasin, Chairman PTA has also derived that this increment in taxes is seriously damaging telecom sector, in terms of growth, revenues and FDI coming into the country. In an Iftar party that was organized by PTA specifically for journalists, he said that authority has asked the government to reconsider the imposition of added taxes on telecom services.

Chairman summarized achievements of telecom sector and said that Pakistan was able to fetch US $ 5 Billion of foreign direct investment into country in last 4 years. Lately Pakistan telecom has witnessed tremendous growth while adding 2.1 million cellar users per month in year 2007-08, added Dr. Yasin.

He also discussed the challenges that are being faced by the sector, which includes overall slow economic trend in the country and decreasing value of Pakistani Rupee.

Via [Daily Jang]

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FBR Decided to Take Legal Action against PTA for Recovering Tax Valuing Rs. 9 bln

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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PTA to Take Conclusive Measures Against PTCL, if Pakistan Package Issue not Resolved

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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