pakistan telecom market 2015

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This is the detailed picture of Pakistan Telecom Market which covers both the operators and also the mobile phones business.

Overall Telco growth slowed because of ;• Development of low cost tariffs• Market commoditization due to large share of online sales and new

regulatory requirements (termination rate, roaming revenues).• New Investments were injected in the operator’s side for upgrading

the existing network from 2G to 3G and 4G.• New customers were acquired and market has opened for more

mobile phones manufacturers to bring in their new models with 3G/4G compatibility.

CURRENT SITUATION OF PAKISTAN MARKET

• 72% of the consumers are using SMARTPHONES

• 28% are using other phones.

• 77% of Smartphone users are 21 to 30 years old (infographic).

a) Android – 68%

b) iOS -24%

c) Windows – 8%

• Majority of Smartphone users -

62% connect with internet over Wi-Fi only.

• 25% using mobile internet while on go.

• 12% smartphone users live without internet.

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Interestingly, according to Grappetite, majority of smartphone users or 41% of users consume more than

Rs. 500 per month for their communication needs, which is more than the double of what an average Pakistani mobile phone user spends per month.

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http://propakistani.pk/2014/02/27/warid-enjoys-top-paying-customers-in-the-market/

SMARTPHONE‘S USERS TRENDS

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To understand Pakistan Telecom Industry, following key points are very essentials ;

1) Total Teledensity

2) Cellular / Mobile Subscribers

3) 3G / 4G Subscribers

4) Mobile Teledensity

5) Fixed Local Loop Subscribers & Teledensity

6) WLL Subscribers & Teledensidty

7) Broadband Subscribers

8) Card Payphones

9) Foreign Direct Investment in Telecom Sector

10) Telecom Revenues

11) Telecom Investments

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Total Teledensity

Years Teledensity (%)

2002-03 4.314

2003-04 6.25

2004-05 11.89

2005-06 26.26

2006-07 44.06

2007-08 58.90

2008-09 62.0

2009-10 64.10

2010-11 68.40

2011-12 72.0

2012-13 74.90

2013-14 79.89

Dec-2014 77.17

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10

20

30

40

50

60

70

80

90Teledensity %

This is also includes AJK & NA’s


2 - Mobile Subscribers

1990 – Two Mobile Operators were launched – i). Instaphone –Pakcom Limited, a Millicom Operation; ii). Paktel – Cable & Wireless Operations.

1994 – Mobilink GSM – a Motorola Operation is launched.

2000 – Ufone GSM was launched.

2003 – Warid Telecom & Telenor initiated their services.

Instaphone had purchased Paktel and swap their network from AMPS/TDMA into GSM – which was then sold to China Mobiles.

ZONG was launched in 2006.

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

Dec-14


Mobile Subscriber's in Pakistan

Mobilink Ufone Warid Telenor Zong

38.45

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27.26

22.49

36.69

12.46

Millions Subs.

3G / 4G Subscribers• Pakistani telecom operators added

over 9 million 3G users while another 50,000 LTE users till the end of January 2015.

• This count of 3G users is likely to grow further (during weeks to come) with introduction of mobile broadband dongles, WiFi devices from telecom operators in recent weeks.

• According to PTA, Zong almost doubled its 4G users in January 2015 to take the total count of its 4G subscriptions to 5,023 4G Users.

• Warid, on the other hands, recorded 44,075 LTE subscribers during the month of January to outrun Zong.

• With combined subscription count of both the operators, Pakistan has currently almost 50,000 4G/LTE users in the country


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3G / 4G Subscribers

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3G / 4G Subscribers

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Mobile Teledensity

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10

20

30

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50

60

70

80

90

Teledensity %

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2003-04 3,29

2004-05 8.30

2005-06 22.21

2006-07 39.94

2007-08 54.60

2008-09 58.20

2009-10 60.40

2010-11 64.80

2011-12 68.50

2012-13 71.40

2013-14 76.46

Dec-2014 73.75

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Fixed Local Loop Subscribers & Teledensity

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10 Subscribers

Teledensity (%)

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YearsTeledensity

(%)Subscribers

(M)

2003-04 3.00 4.51

2004-05 3.43 5.28

2005-06 3.37 5.24

2006-07 3.04 4.81

2007-08 2.70 4.42

2008-09 2.20 3.53

2009-10 2.16 3.42

2010-11 1.90 3.02

2011-12 1.70 2.98

2012-13 1.70 3.02

2013-14 1.73 3.17

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WLL Teledensidty

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0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2Teledensity (%)

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2003-04 0

2004-05 0.17

2005-06 0.66

2006-07 1.07

2007-08 1.40

2008-09 1.60

2009-10 1.60

2010-11 1.70

2011-12 1.80

2012-13 1.80

2013-14 1.69

Dec-2014 1.69

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Broadband Subscribers

Years DSL HFC WiMAX FTTH EVDO OthersMobile

BB

2005-06 26,611

2006-07 44,669 484

2007-08 102,910 42,760 19,612 2,800

2008-09 262,661 36,201 88,477 3,967 22,503

2009-10 476,722 49,110 257,616 5,002 111,194 1,004

2010-11 695,245 34,274 428,523 6,346 325,140 1,963

2011-12 880,071 35,520 575,939 8,444 584,459 2,934

2012-13 1,064,003 33,184 530,889 11,152 1,033,5013 3,868

2013-14 1,346,817 37,011 524,111 14,848 1,861,118 5,240

Dec-14 1,423,054 40,151 517,431 16,210 2,149,586 5,445 3,768,253

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Mobile Broadband was launched in July 2014.

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Card Payphones

Years PCO’s Growth (%)

2003-04 184,920

2004-05 279,320 51

2005-06 353,194 26.4

2006-07 387,490 9.7

2007-08 449,121 15.9

2008-09 405,359 9.7

2009-10 337,740 7.32

2010-11 313,723 7.11

2011-12 287,580 8.33

2012-13 289,252 0.58

2013-14 144,201 (49.94)

September 2014 92,201 (36.32)

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LL, WLL & Cellular PCO’s

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50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Growth (%)

Landline, WLL & Cellular PCO’SCard Payphones

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Foreign Direct Investment in Telecom Sector

YearsFDI in

TelecomTotal FDI

Telecom(%) Share

2003-04 207.1 949,4 21.8

2004-05 494.4 1,524.0 32.4

2005-06 1,905.10 3,521.0 54.1

2006-07 1,824.20 5,140.0 35.5

2007-08 1,438.60 5,410.0 26.6

2008-09 815.0 3,720.0 21.9

2009-10 373.62 2,199.44 17.0

2010-11 79.2 1,574.0 5.0

2011-12 361.4 820 (44.04)

2012-13 (408) 1,576.0 (25.89)

2013-14 903.0 2,640.88 34.19

-1000

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1000

2000

3000

4000

5000

6000 FDI in Telecom Total FDI

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USD($) Millions FDI – Foreign Direct Investments

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Telecom Revenues

Years Cellular Local Loop LDI WLLVAS

(estimated)Total

2003-04 27,840 76,444 1,336 1,152 10,056 116,828

2004-05 48,880 78,828 3,672 275 12,570 144,225

2005-06 89,896 71,186 7,199 12,453 13,827 194,561

2006-07 133,132 68,368 15,567 2,645 15,901 235,613

2007-08 182,122 63,693 23,396 2,704 8,048 279,963

2008-09 212,423 62,568 47,969 2,670 8,179 333,809

2009-10 236,047 61,464 44,964 2,880 10,202 355,557

2010-11 262,761 58,342 34,195 4,978 7,052 367,328

2011-12 298,510 63,805 32,675 5,861 11,175 412,026

2012-13 311,145 80,661 38,672 5,617 3,526 439,621

2013-14 322,683 88,831 43,631 6,279 4,123 465,547

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USD($) Millions

Telecom Investment

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Years Cellular LDI WLL LL Total

2003-04 666.1 6.40 162.70 0 835.20

2004-05 1,158.10 35.10 277.3 2.3 1,472.80

2005-06 1,420.90 50.50 259.40 0.3 1,731.10

2006-07 2,584.50 602.80 747 40.60 3,974.80

2007-08 2,337.70 403.90 52.8 342.10 3,136.40

2008-09 1,229.75 276.75 82.11 57,37 1646.98

2009-10 908.80 183.10 23.0 22.50 1,137.40

2010-11 358.60 108.80 7.60 18.20 493.20

2011-12 211.80 16.20 7.30 5.00 240.30

2012-13 421.50 1.90 11.90 16.10 451.40

2013-14 1,790 2.00 10.00 14.00 1,816.00

USD($) Millions

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Looking Ahead

The Telecom Industry - a phenomenal growth;

Attracting one of the highest foreign direct investment in Pakistan

Deregulation of the telecom sectori. 5 mobile operators

ii. 14 LDI & 18 WLL operators

iii. cutting edge services at lower costs

Numbers of cell phone subscribers from 0.2 million to 70 millions in 7 years

The Internet Industry – phenomenal changes;

• From 29 to 2400 cities were connected

• Tariffs for PTCL’s international internet bandwidths; from $87,000 to $ 1000 per month for a 2MB circuit

• Increased subscribers from 20,000 to over 12 millions


Issues & Opportunities

Network Readiness Index Pakistan was ranked 67/115 in 2005 & now down to 84/122 in 2007-08

Pakistan will categorised in the Low Access Category

Total Teledenisty in Pakistan at ~ 45%

Rural Teledensity ~ 1%

The BPO industry Call Centres, data processing, MT

$150+ billion (India has over $10 billion share growing at 70%).

Potential to provide large scale job opportunities

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Growth of ICT Usage

Banking Sector Focus on Technology – competitive edge

Numbers of ATMs in Pakistan; tripled in the last 5 years around 1500 ATMs across 30 major cities

ATM networks: 1 Link & MNET

The numbers of online branches in Pakistan; from 400 in 1990 to 3000+ at present

E-enabled plastic cards in banks; from 0.3 million in 1999 to over 5 million

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References

Reports & Figures from PTA Site

Facts of mobile phones trends from

ProPakistani

Wikipedia.org

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Sales & Marketing

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pakistan telecom market 2015

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