Ufone: Profile and Outlook
Recent news about decline in profit of PTCL has concerned many investors and shareholders. Will Ufone, mobile phone arm of PTCL, be able to fight back and reverse this trend? In this post I present a snapshot of Ufone. I’ll discuss its strengths, weaknesses, threats to its current position and its future prospects.
Conclusion:Lots of potential if Ufone and its parent get its act together and execute well on their expansion and competitive plan. Read on to understand the basis for this conclusion.
About Ufone
Ufone (official name: PTML) is a PTCL company and Etisalat of UAE owns 26% of PTCL. For more information about Etisalat I recommend reading this investment report from Shuaa. This report also includes details of how PTCL was privatised earlier this year in April. Please note: PTCL does not report detailed earnings results for Ufone. Therefore we need to look at PTCL results as a whole.
Highlights of Recent Earning Report
The annual 2005-2006 and first quarter 2006-2007 financial reports are available at ptcl website.
For the first quarter 2006-07 ending Ocotber 30, 2006 the profit before tax was Rs.7.7 billion with net Profit of Rs.5.1 billion, which is 7% lower than that of the corresponding quarter of last year. For the full year 2005-06 after tax profit was Rs 20.78 billion which was 22% less than previous year’s profit.
Dividend of Rs 3 per share was awarded which corresponds to an impressive dividend yield of 12.3% !
PTML (Ufone) - a wholly-owned subsidiary has improved its financial performance compared to the first quarter of last year. It added over 1.37 million new subscribers during July to September 2006 quarter, making its total subscriber base in excess of 7.52 million as of end September 2006. Ufone earned a net profit of Rs.666 million compared to Rs.389 million recorded for the same period last year.
Network and infrastructure expansion was carried out in 2006 progress and more is being planned to deploy WLL, Wimax etc. In the largest network expansion deal of Pakistan, PTCL signed up Huawei for a US$550 milliondeal which will allow Ufone to double its capacity. Financial reporting standards have also been improved. Details are in the directors report at PTCL website. Note that analysts expect Ufone to be an increasingly major contributor to PTCL earnings. This indicates the growth in wireless sector and the competition in fixed-line and other sectors.
Weaknesses and Threats
* Increased Competition from new investors (Mobile firms such as Telenor, WLL operators)
* Poor service (see more on service quality and PTA interjections below)
* Network capacity and quality
* Management Style and approach
How to Invest
Through Pakistan mutual fund companies such as Abamco who offer funds with PTCL as holdings. For example: UTP-ISF fund has about 10% PTCL stock. You can buy stock directly as well but the Pakistan stock market is not without its risk. In 2005 the Pakistan stock market crashed amid rumours of scandals which are now under investigation (see this article from DAWN, read more here and take a look at the website of Securities and Exchange Commission of Pakistan).
Here is a professional report (by Imtiaz Gadar - Merril Lynch, see the full pdf here which is from Sep 2006) about Ufone and PTCL (refrerred to as PakTel):
“Having traded down materially during 1H06, PakTel now offers an attractive yield and substantial upside to our DCF valuation of Rs60. PakTel is marked down for its low earnings growth outlook from increasing wage costs and fixed line deregulation.
High yield may not be sustainable if new strategic shareholder (Etisalat) decides to invest more heavily in wireless. Earnings transparency is below average as mobile earnings are not disclosed to the market. Main positives are potential for long term cost cutting, and good secular growth prospects in
Wireless and internet given low teledensity (3.5%) and high GDP growth (7%).
Clear direction from new owners, management stability and dividend payout certainty are needed to reignite positive momentum. Valuation score have improved with the continued slide in share price and we now rate the stock a Buy.”
For more about Quality Of Service Issues at Ufone
Pakistan Telecommunication Authority (PTA) has announced that it will conduct a countrywide Quality of Service (QoS) survey of all cellular mobile operators in the next two to three months to determine the service quality being offered by mobile operators in the wake of consumer complaints against their service. The Authority has taken strong exception to the problems being faced by cellphone users in the shape of severe congestion, call connection errors, frequent call drops and excessive and unjustified billing due to false messaging.
In April 2005 PTA had issued a show-cause notice to Ufone for providing low quality service and initiated proceedings against it. The PTA said on Monday that the notice to the Ufone was served on the basis of the results of the quality of service (QoS) conducted recently. The PTA has given 30 days to the operator to submit the reply. The proceedings may lead towards the appointment of an administrator or levy of fine up to Rs 350 million, and it can be suspension or termination of licence under section 23 of Pakistan Telecom (Re-organisation) Act 1996.
TelecomPk.Net is a leading source of information and analysis about Pakistan Telecom industry.
Well write your reviews on Ufone whether you like or dislike this service. Besides Ufone you can rate and write reviews on thousands of other products and services available in Pakistan.
You can write on Ufone here:
http://www.madyee.com/product_reviews/75137/1/Ufone
The Director (Ufone)
Pakistan Mobile Communications (Pvt.) Ltd.
Subject: Purchase of Already Used Ufone Calling Card, worth of Rs. 500/-
Dear Sir,
It is to state that I am a user of Ufone since long and have the connection with Mobile number 0333-4878731. Yesterday, the April 11, 2007 at about 22.00 hours I bought a Ufone scratch card from my nearby shop at Faisal Town. When I entered the card, the reply was surprising for me that my dialed No is already used.
Sir, when I bought the card its scratch numbers was not visible and in this case who is going to be responsible, the shopkeeper, Ufone or me……..?
Please note that this is the second chance of happening the same with me but now I can not afford to purchase another Ufone card, and if, my application is not responded properly “I WILL PREFER TO HAVE A CONNECTION FROM ANOTHER MOBILE COMPANY”
In this case your good self is requested to personally intervene into the matter and resolve my problem at your earliest.
If you like to do any favor for me or reply to me please reply on my e-mail address or my Mob.No. My e-mail is tehrazim@descon-mirani.com.pk
Thank you,
Yours truly,
(Abud Shakoor Tehrazim)
Mobile No.0333-4878731
yep these used fone card are really a problem these days. dont know why they are doing this. thats why i would prefer “easy load” over loading a scratch card.
If you have any scratch card complaint, Don’t worry! Just visit Ufone service centre. They will replace your card and your problem will be resolved.
Replacement procedure is no doubt a lengthy one and they take 24 hours. But you will get a new scratch card of the same denomination next day.
Ufone has got the solution of every problem of U
UFONE’S service, to be precise thier so called SYSTEM, which has been updating since the stone age is totally pathetic. They keep on exceeding the billing limits of 100% and then block your line, besides they have been billing in excess too. I’m waiting for my monthly bill to come. Looking forward to use the MNP service, really dissapointed by the U-fool’s services.
The Director (Ufone)
Pakistan Mobile Communications (Pvt.) Ltd
Subject: Purchased of new sim (easy load)
Dear Sir,
i bought the sim in to gujranwala office near din plaza.where any person no tell me information easy load sim,
my shop in trust plaza near kasb bank gujranwala.
my shop name SALEEM BROTHERS ADVERTISER.
CELL#0300-6499740,0301-8649974
SIR,
KLY SEND THE INFORMATION ABOUT THE WEB SIDE OF UFONEGSM.NET. I CREAT THE E.MAIL ADDRESS OIN THIS SIADE MY MOBILE# 03336831687. THK IMRAN
[...] Pakistan and India - Part 1 3. Investing in Pakistan Mobile Companies 4. Free SMS 2 Pk Mobile 5. Ufone Profile and Outlook 6. WiMAX in [...]
KLY SEND THE INFORMATION ABOUT THE WEB SIDE OF UFONEGSM.NET. I CREAT THE E.MAIL ADDRESS OIN THIS SIADE MY MOBILE# 0333686111 MUHAMMAD AKMAL MIANCHANNU
dear SIR
UFONE GSM is best PAKISTANI cellular company .
U FONE HAVE SOME NETWORK PROBLUM . u fone servise HELP LINE IS VERY SLOW. HELP LINE BEHVER IS NOT GOOD FOR CUSTOMER. BUT franchise is very fast and honest .
KINDLY GIVE ME SOME TOWER FOR MIANCHANNU . THIS AREA HAVE WEEK COVRAGE U FONE (TULAMBA )(ARI WALA) GT ROAD MIANCHANNU CITY AREA NAWAB KALONY AND KURMANWALY INDUSTRISE AND MEHRA ABAD AND125/15L AND 126/15L MIANCHANNU KORT AND CHIEFE MINSTER HOUSE MIANCHANNU KOTSJAN SINGH. WHEN YOU GIVE SERVISE THEN
(UFONE GSM IS BEST PAKISTANI COMPNY)
ITS ALL ABOUT YOU
MUHAMMAD AKMAL 0333/6861111
MIANCHANNU PAKISTAN
Sir ,
I m a student of MBA final . I m doing a research work on “switching behaviour of Ufone subscribers “.
Plz send me some guidlines if somebody has researched before , plz send me that information for guidance .
Hmm… Everybody has had a case of their own. Here’s mine.
I loaded a new Rs. 250 Card. And sent a message to 606 for subscribing to an SMS package. The network replied with a “Message Sending Failed” message. I tried to send it multiple times but got the same reply every time. After a few tries it said “Not Enough Balance”. I was surprised as I had loaded a brand new card and had checked balance only a while ago to be something over 300.
As it turned out, the “FAILED” SMS were being registered by the network as more and more packages. I had registered Rs. 300 worth of SMS packages (1250 SMS or something like that ). I called the customer service and told them to revoke the all SMS package except one, which was my original intention. Despite discussing the issue on the help line for hours, the guy continued to tell me that it wasn’t possible. I asked him that I wasn’t mad to register 1200 sms for Rs 300 when I could easily do so for Rs 175 or so (i.e. package 603)
Even though it is the fault of the network that registers a package but replys “Failed” but my credit was never refunded. I could only use around 400 SMS out of those 1200 and the rest were wasted. And those 400 messages were mostly just to use the credit and not useful messages.
I didn’t expect that UFone would go as low as tricking customers like this into registering for packages just to increase their sales.
All the above comments by other subscribers and by myself may look like complaints rather than comments but what they actually represent is the poor service of Ufone which is getting poorer and poorer by the day.
Farqaleet -
This is unfair, I would have though that the customer service should be able to fix this issue.
It is important to voice concerns and complaints so that we can create awareness and discuss ways to fix these.
If anyone from ufone reads this - please focus on providing decent service to existing customers.
Hello
Very interesting information! Thanks!
G’night
U fone is the worst and badest pakage in the world remember this ok ok ok ok ok ok ok
Salam ALukum.
My name is Adeel Ahmed. And i am an employee at ufone Help Line Center (333). An agent of the company for the last couple of years.
Well i am quite stunned to read such comments by the users writing things in “english” language, yet so alien to the real ground realities of the world!!!
As for the loaded scratch card mr. illitrates i would like to tell u that this problem was faced by the companies like insta, paktel tango. as far as ufonegsm is concerned it is a gsm company and its card cannot be used by hunches!!!!! If u have a used card then call the dammn help line for it and let them know your problem. my dear illetrate pakistani didi even mentined that he approched the company for it!!!!!!!!!!!!!!!!!!!!!!! hence complaint all fake.
i would like the persons using this dubai based company to use the service and complaint if any agianst it to us we “will” resolve the problem with in 24 hrs!
my email is : science.cantt@gmail.com
Best Regards.
Sir, I am Asif Khokhar, owner of 0334-3346595. My problem is about the daily deduction charges by ufone while infoservices are off. I have unsusbscribed the infoservices from ufone.com website and by calling Call Centre but still I don’t know you they are subracting my balance daily. I made a call to ufone customer officer on 13/10/2007 at 1:37PM and informed him about the problem, he assured me that you not need to worry about it, all the infoservies are deactivated and your balance will not be subract. But again after 12AM (14/10/2007) Rs 1.15 was deducted from my balance 31.67 and turned 30.52. I have send several mails to customercare@ufonegsm.net and made a complain at ufone.com, and called many times to ufone Call Centre, but the problem is still exist.
If they remain unable to solve my problem within next 3 days, then I have to leave this service.
If any employ of ufone read this mail, I request him to please look into this matter.
Asif Khokhar
itzasif@hotmail.com
It was customercare@ufonegsm.net not @ufonegsm.com
Asif - thanks for sharing your experience. I hope someone from ufone pays attention to this.
good
i am working in contructoin company.i use my u phone conntion last 2 years
i feel this is lowest servis company in pakistan .
Dear Sir,
I am student of BBA(hons), and i am making a project on CRM (Coustomer Relationship Management). I need a help from you reagarding the “CRM” how it can work in your company and what is purpose to implement the CRM and all of those question which I will write in my project report .
Kindly help me to understand the project better so i can gain knowledge regarding the particular topic “CRM’ .
Thank you
M.Faizan
Respected Sir,
I wanna deactivate my infoservices but your Customer Services Represrentator is unable to solve my problem…He said that my sim is not regitered on my number…I told him that its on my father’s name but he said its not…he asked me to send an sms on 696 to know about my sim registration…I did that so many times…But I got no any msg from Ufone’s side…
Sir,I request you to solve my problem as my balance is being deducted from my account on daily basis & thats truly unfair because I have already deactiveted all infoservices messages online…& now I am getting no infoservices message!
And kindly also tell me about the procedure & charges of changing from PREPAY LIFE to PUBLIC DEMAND package…!
I hope you will pay attention to my problems otherwise I shall have to use some other connection…
thanks!
A.o.A,
Sir I am a student of M.Com i am doing research on balance sheets & profit n loss sheets of year 2005 & 06. So, Kindly send me these things as soon as possible. I am also old user of Ufone & also old part of Ufone I have worked in Ufone Franchise for 1 & half year in Bhalwal.
I shall be very thanskful to you on this act of kindness.
Saqib Ali Shah
0333-6804911
how can i register my sim through internet please sent the website name and procedure to me and oblidge
if u have any problem about ufone please feel free to contect me i shall provide u accorate informations as well as my contect details are below
muhammd imran customer care excutive ufrfsd0003
phone number: 03338395455,03336528461,03336594477
salam!
someone teasing me from ufone number continously. I am the student of quaid_e_azam university and i have no time to waste.plaese provide me profile of that person so that i can inform the pollice.
phone# of that person is 03325040860
email me at eleshah86@gmail.com
Thank you very much
mere ko free calls ka tareeqa batao plz ufone mobilink telenore kisi ka b plz id per offline msg karo mere ko jo b meri help karna chahta hai or kar sakta hai to plz main muntazir hoon us farishtay ka1
ufone is the most horriable company to work. specially where as females are concern. atleast i’ll always advise people who are from good families should not allow there daughters to work there. they only hier girls who would be exposing them self. please it’s a sincer advise not to permit your daughters to even step into that organization. HR even does not bother to ask such bastards to leave the company due to there nasty attitude towards females they rather are a part of all that. please i would request all the females to rase there hands against such men and kick such people out of these organizations. they really dont deserve to be there where they are. remember wat ever you do god excatly shows you the same. and i’ll pray to god tat such men should be punished badly. once it comes to there own daughters they’ll definately understand. wait till it comes
Inshallah…………………
Regards
ufone’s billing system is always down and whenever it returns the last amount that you have PAID is ADDED BACK in your bill. switch to postpay and see it for yourself. never trust ufone’s billing, always keep track for yourself. and my sincere advise, switch to warid or telenor as soon as possible through mnp!
bad service rude customer support = ufone
in other words ‘ufone is piece ‘a’ shit’
The Director (Ufone)
Pakistan Mobile Communications (Pvt.) Ltd.
Respectable sir,
i was a a regular customer of ufone network for almost 5 years with a number 03334244545, now i am in Australia for Higher education. i want to activate my SMS ROAMING service and i contact with ufone staff by emailing them many time, but they did not reply me. please make your system better because your valuable customers are facing many problems just because or staff.
Regards.
is any information about call receive or out going will be leak out