Highlights of PTA Report On State of Telecom Industry In Pakistan 2008-09
Here are the key highlights of the PTA Report for Pakistan telecom industry for fiscal year 2008-09 (July 2008 - June 2009) issued* on Friday.
Highlights
- Telecom sector revenue grew by 20 percent and generated Rs 327.8 billion as revenue
- Telecom sector paid Rs 112 billion as tax
- Tele-density (percentage of mobile users) of Pakistan stood at 62 percent showing a growth rate of 5.4 percent.
- Foreign Direct Investment (FDI) stood at 815 million dollar
- Total investments in the sector stood at 1.7 billion dollar
- Telecom imports also grew by 20 percent and reached 1.6 billion dollar
Mobile Sector
- The mobile penetration reached 58.2 percent of the total population
- Total mobile subscribers reached 94.3 million (as of September end the number is 95.9 million) with more than 90 percent of the country having access to mobile services
- Prepaid subscription is 98 percent, whereas only 2 percent subscribers are post-paid
- Revenue: cellular revenues grew by 16 percent and stood at Rs 212 billion at the end of 2008-09
- The mobile investments dropped by 48 percent and reached 1.2 billion dollar in the year under review
LL and WLL
- Basic services (LL. WLL & LDI) showed a healthy revenue growth rate of 26 percent contributing Rs 113 billion to the sector revenue which is around 34 percent of the total telecom sector revenue
- With the declining trend in fixed line tele-density reaching 2.2 percent with a total of 3.5 million fixed-line subscribers in the country
- Wireless local loop (WLL) tele-density stands at 1.6 percent with 2.65 million subscribers across Pakistan
*Source: Business Recorder
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Interesting numbers…
Considering cellular revenue of 212 billion and a user base of 94.3 million its quite astonishing to find that even with 98:2 ratio between pre-pay and post pay customers, on an average, every user spent PKR 2,248 in 2008-9.
Interestingly cellular companies are investing 45.28% of their revenue (PKR 1,018 per user) back into their infrastructure even though 90% of the country is covered… since this investment has been dropped by 48% and the revenue jumped 16%, cellular companies must have been investing quite ambitiously in the past.
PKR 112 billion tax from telecom sector means PKR 659 per person (170m total), which also seems quite high… I wonder where does our average income tax per person stands…
The 48% drop in investment is not good, it should improve by next year. The interesting point that still the 98% of the total subscriber connect on pre-paid. The growth in revenue is appreciating, one must also take into consideration that from next year onwards, companies will have to pay 0.5% of the revenues to the R&D funds.
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