Pakistan’s telecoms market will have to consolidate before the government can even consider a planned push into third-generation technology, according to the head of the only European operator in the country.
Telenor, the Norwegian telecoms group, said that there was not enough profit per phone user to justify having five mobile groups in Pakistan and operators would have to consider mergers or acquisitions in order to see significant growth.
Jon Eddy Abdullah, Telenor Pakistan’s chief executive, told the Financial Times: “Most markets are [divided between] three players. Three seems a very good number. Five is too many.”
Telenor entered Pakistan five years ago and is the second largest cellular phone operator after Mobilink, a subsidiary of Egypt’s Orascom Telecom . Pakistan’s other operators are Ufone, Warid Telecom and Zong.
Mr Abdullah refused to comment on speculation that Telenor would seek to buy out one of its smaller competitors in Pakistan. However, he conceded that consolidation would “drive every shareholder to talk to everyone else.”
Pakistan is part of broader expansion by Telenor across central and southern Asia, including operations in India, Thailand, Malaysia and Bangladesh.
Asia accounted for 26 per cent of revenues in 2008, with the rest coming from eastern and central Europe and the Nordic region.
Much of Telenor’s recent focus has been on its 67.3 per cent investment in Unitech Wireless of India . But the group also sees big potential in Pakistan, which has seen a phenomenal increase in the number of mobile phone users over the past decade.
According to statistics compiled by Pakistan Telecom Authority, the main telecoms regulator, there are about 95m subscribers in a country with a total population of 180m.
Mobile phone services are available across 90 per cent of the country.
The Pakistan government has said it is committed to moving from 2G to 3G mobile phone technology though it is yet to even outline a time frame for when that might happen.
Mr Abdullah said that the government would need to offer existing operators some incentives to move towards 3G.
PTCL launched triple-play service:
Pakistan telecommunication limited introduced a triple play service. Subscribers of that service can enjoy more than 100 TV channels, DSL and a regular phone service all just on one phone line. PTCL sources claimed that PTCL has invested 3.5 Billion PKR in this project and the triple-play service will charge PTCL customers around 1,500 Rupees per month.
One may be wondering that what is the difference between the earlier DSL provided by PTCL before the launch of triple play service and after the launch. Answer is simple that is company has overhauled its system and has replaced copper wires with optical fiber system completely to ensure best possible service. That’s why this service is also termed as ONU service; Optical Network Units service. Actually Optical network units have been installed in several exchanges to provide efficient and quality service via optical cables system. Company is investing without any offenses and hesitation just to provide best possible service to customers that there is. This point can be justified by the fact that one ONU costs rupees 10 million and more than 350 ONUs have been installed from exchanges to telephone cabinets.
Can we afford such technologies?
Before the launch of ONU connections there were old copper cables acting as a medium between telephone and exchange they didn’t need any source to boost their signals up. But fiber optics needs an electric source in order to connect to exchange, MEANS NO ELECTRICITY NO CONNECTION, then in a country like Pakistan where we are facing severe power cut issues how can we afford such latest system??
There are a few statements coming from PTCL sources about the backup batteries installed in the cabinets that can keep connection up till 6 to 7 hours in case of load shedding, but on the other hand the subscribers are wildly complaining about no such backups and frequent connectivity loss in case of power cut.
So is this ADVANCEMENT?
Today, when this super service has been launched we are still sitting on the issue tables and trying to justify that ONU connections are much better than the old copper ones’
Whatever we conclude, whatever we tell to media one thing is clear that in this deadly load shedding phase People can’t afford ONU system. I am not saying the service is bad or substandard but I am just pointing out the inefficiency of our institutes. They have spent so much money on the ONU service without creating its basics that is electricity.
Isn’t it the point of criticism for anyone?? Yes it is!!!
