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Published on September 26th, 2007 | by Babar Bhatti


Mobile Value Chain For Pakistan

This is part 2 of the series on economic and social benefits of mobile services in Pakistan. This will focus on the mobile value chain, that is, the share of different stakeholders such as mobile network operators, fixed line operators, handset makers, franchises, network equipment and service providers, government revenue etc. The diagram taken from Deloitte’s study gives a very interesting overview of the mobile value chain in 2006. The numbers (PKR millions) next to the arrows are revenues, those  in brackets represent value add while arrows indicate flow of funds. Click to see a higher resolution view.


Can any one comment on the accuracy of these numbers?

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0 Responses to Mobile Value Chain For Pakistan

  1. Babar Bhatti says:

    From Nation:
    The telecom sector has contributed a huge amount of taxes worth Rs 102 billion in last financial year. In FY07 the telecom sector has paid Rs 36.28 billion general sales tax, Rs 17.58 billion activation tax, Rs 11.18 billion PTA deposits while Rs 36.95 billion were deposited into the state exchequer as other charges/taxes.

  2. Babar Bhatti says:

    Asif – thanks for the analysis. I also see a 17.5 billion Rs interconnection fee from fixed operator. Perhaps that can explain the difference?

  3. Muhammad Asif says:

    As far as I understand this diagram, the revenue number of mobile operators is PKR. 109 billion which seems low, I think if we simply multiply APRUs of $4/month with average subscriber base of Jan 06 (since Jan06 subscribers number is not available therefore Jun 06 numbers are used) are and Dec 06 (34.5million 48.29million) it come around $165.59million/month and annual revenue is around $1,987.1 million. If we covert this using exchange rate of PKR60=$1, the total revenue is around PKR 119 billion.

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