Pakistan has now has 100 million mobile phone subscribers.
In a period of a decade Pakistan has gone from a country with minimal telecom infrastructure to a success story when it comes to telecom deregulation, attraction of foreign investment, contribution to economy and growth in subscriber base.
Consumers enjoy far more choices than ever before to select their telecom provider at home, office or for mobile. Prices for domestic and international calls are at their lowest point and broadband Internet cost is approaching the affordable mark. A large number of value added services are available.
Telecom sector has also become one of the major industries in Pakistan, contributing to revenue and leading in foreign investment. Telecom brands have become part of the daily lives of Pakistanis. The sector has been responsible for USF and ICT R&D Fund. Telecom sector has shaped the way corporate social responsibility is perceived in Pakistan. It has also played a vital role when disaster has struck Pakistan.
The sector has been very competitive. The top 3 mobile network operators have 75% of the market: Mobilink, Telenor and Ufone. The chart below gives you a glimpse into the battle for winning over consumers over the last 5 years.
So now that we have reached a major milestone of 100 million subscribers, should we pat our back and go back to business as usual?
Not so fast. I believe that this is just a starting point.
If we want to benefit from this initial growth and make it sustainable then we need to change our approach and step up our efforts to make better use of information and communication technologies. Even though the telecom sector of Pakistan has come a long way, it faces a number of challenges.
- Degradation in quality of network and customer service
- Aggressive price cutting and low ARPUs have made voice and text messaging a commodity
- Saturation of voice and not enough uptake on data services
- Over-emphasis and spending on advertisement
- Rapid shifts in communication modes have impacted our culture in ways which are not always positive
- Imports of phones has caused a strain on foreign reserves
- Digital divide in the country remains an issue
I would argue that the whole sector – private companies, schools and government – has fallen short on supporting research, innovation and creativity which could truly make a difference in the lives of people. In other words, we have reached the first milestone where a significant number of our population can make calls and send text messages. We are missing out on the REAL potential here. And believe me, this is not something that can be easily imported. We need to take this technology and create further value from it.
Engage our youth – the generation which has grown up using mobile phones – and show them productive ways to use communication technologies. My advice would be that The sector should focus on two things: provide economic benefits and to support education for the masses.
When Pakistan reached the 75 million mark in cell phone SIMS back in January 2008, Adil Najam had asked this question, which is still valid :
have we crossed some threshold of excessive cellphone ownership where, despite seemingly low costs, the marginal benefit of ownership no longer exceeds the marginal costs?
My answer is that it depends on what you do with this technology. Playing ring tones is fun but creating best-selling apps or solving problems using your phone is where we want to be. Where we need to be.
Babar Bhatti blogs at Telecom.Net. This post is exclusive to ATP.
An added benefit of the telecom revolution in Pakistan is the media revolution.Just on the ads, the electronic media would not thrive without the telecoms!
Yes, I agree with Asad. People do purchase many sims. Infact I have changed 3 SIMS for my cell phone. Also I saw some people who keep SIMS of all networks to get low call rate packages etc.
But no doubt mobile communication networks business has grown up rapidly in Pakistan. What I have observe is that out 100 cell phone users, 50 are the teenagers who waste most of their time and money in GupShups. While rest of the 50 are Employees and Businessmen who use are using it positively. (These are my personal observation)
Well …good work Pakistan on reaching this number however I want to share my story of broadband internet and cell phone service.
I am currently visiting my family in Pakistan while permanently settled in Toronto, Canada. Before coming here in Karachi on my current trip I assured my manager that I’ll work from Pakistan for a week before starting official vacation for next two weeks as internet is readily available and I would have not any problems.
Bought a WorldCall USB internet stick starting with 256kbps for Rs. 1200/m but it was so slow that I immediately decided to upgrade to 1 Mbps costing me additional Rs. 1300. Now that internet speed was acceptable to say the least however I was unable to use my VPN, had to call their help desk twice to get the advice that I should send an email to their support which I immediately did but nothing happened until I sent another email after 5 days which was acknowledged on my follow up call. They fixed the problem allowing tcp/ip ports however by this time my work week was over.
During this time I also bought PTCL EVO USB stick for Rs. 4000 (only good thing about it was that within 5 days, it could be returned). Not only service was mediocre even though it was connected at 3.1 Mbps but my Cisco VPN also didn’t work, hence took the stick back to PTCL office only to learn that I’ll get the cheque in about 2-3 weeks….
Also bought Wateen’s USB internet stick only to realize that there is no coverage in my home area and the sales person did not bother to check if my home area is covered, thus wasting about Rs. 2000.
Cell phone experience is also far from great, dropped calls are very frequent which at times really becomes annoying.
aah and I was about to forget to tell about our landline phone service, it has so much noise for the last 6-8 months that I am seriously thinking to get it disconnected. Brought a PTCL wireless desktop phone only to learn this set has a problem and is not receiving good signal at North Nazimabad and need to be replaced. I tested this set at another house and same result, good thing the dealer would exchange it for something which works or else this money is also down the drain.
So in my opinion we must not get mesmerized by the numbers only, we have a long way to go to achieve good quality telecom services from both private and public sectors.
Here we should not forget Telco CSR role and responsibility, they are playing an active role in supporting the community and social development of Pakistan.
Logically speaking, one should not jump to the conclusion in terms of subs base. Anywhere in the world one can’t measure 100% subscribers base (yes this is true that people carry more than 5 sims on their name but percentage is quite minimal now). PTA being the regulatory body has been very active and vigillant in making this percentage at the lower level along with the consistent cooperation of mobile operators. A healthy competition introduced by the Government has encouraged operators to go an extra mile for making a strong subscriber base. It is wise to congratulate the telecom sector for achieving this landmark and we hope that statistics will further grow and glow and mobile companies ensure superior customer services for now and in the times to come.
Prime Minister Syed Yusuf Raza Gilani has congratulated the Pakistan Telecommunication Authority for achieving 100 million mark of subscribers on sep 30, 2010.
I believe that the ultimate goal of mobile operators is to create sustainable products and services on a foundation of responsible operations and responding to the needs of their stakeholders.
Keep it up Telco!
I don’t think that number is right. Most people carry many many SIMS. It is not as if there are 100 million people our of 170 million Pakistanis who have cell phones. That cannot be true.