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Pakistan Telecommunications Report Q1 2010Published by: Business Monitor International Published: Jan. 12, 2010 - 82 Pages Table of Contents
AbstractBMI forecasts that the mobile sector will achieve a total of 98.558mn subscribers at the end of 2009, after the Pakistan Telecommunications Authority (PTA) and operators reported a total of 95.909mn subscribers in the market as of September 2009. Between YE08 and September 2009, the number of net additions totalled 6.002mn, which was significantly lower than the 13.339mn net additions in the YE07 to September 2008 period. Much of the difference is related to the government’s re-registration programme, as well as taxation on operators.With the re-registration programme over, and operators involved in rebuilding their subscriber bases, BMI views growth of the mobile sector to continue over the next five years ended 2014. Operators such as Mobilink have focused their efforts on acquiring new subscribers, retaining the loyalty of existing subscribers, while also strengthening their brand image through key campaigns carried out during Independence Day and Eid. Second-ranked Telenor, which managed to overtake Ufone in Q209 and having previously been overtaken by the PTCL-owned mobile unit in Q308, has deployed attractive services such as its mobile banking, ‘easypaisa’, to encourage customers to its network. The government has also reviewed the taxation policies in place on the mobile sector, and from which it gains a substantial chunk of its foreign direct investment (FDI) from. By strangling operators with higher taxes, it came to the realisation that neither operators, customers or the government would benefit. As of July 1 2009, the government reduced federal excise duty on mobile usage to 19.5% from 21%, as well as reduced the new SIM activation tax from PKR500 to PKR250. This is certainly good news and should help to build up the sector. Furthermore, we have also noted that the PTA has sought to introduce MVNOs to the market. The licence fees have been set at US$5mn each. There appears to be little interest so far, given that there are no fewer than six operators, with competition between them particularly aggressive. Indeed, press reports report rumours of consolidation in the market, pointing to Telenor as a potential purchaser of Warid Telecom, although the Norwegian operator has denied the comments. It is not the first time, however, that talk of consolidation has occurred in the sector. Meanwhile, we continue to witness the encouraging growth of the broadband market in Pakistan, breaking the half a million barrier in September 2009. This is being largely driven by the WiMAX technology, which has been rising at a faster rate than DSL, FTTH or EV-DO. With two-thirds of the Pakistani population residing in rural areas where there is a shortage of fixed lines, the need for wireless alternatives is clearly on the rise. In view of this, the government should accelerate the award of 3G licences, which had been expected in 2009, but is now expected in 2010. Get Full Details About This Report >> |
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