State of Telecom Industry in Pakistan

PTCL is in the news as it reported earnings: a net profit of Rs. 5.354 billion for the half year ended on 31st December, 2009. This is a 13% growth compared to same period last year. At the same time, PTCL has withdrawn its high-speed Internet discount for students. In a recent press release, it announced that “PTCL is offering special 30% discount package for the students on 1 Mbps connection on high speed broadband services.” The previous connections of 2MBps and 4Mbps offered to students will be downgraded. To me, this business strategy seems odd. Why would you downgrade a popular package at a time when earnings are good?

Here are the PTCL highlights from 2009.

• During last year, PTCL acquired about 336,000 customers spread over 200 cities in Pakistan.
• Evo – the wireless Broadband based on 3G technology with nationwide roaming  expanded to all the major cities.
• Under the USF scheme, PTCL is extending voice and data services to the underserved and far-flung areas of Pakistan using satellite backhaul as well.
• For its Corporate clients, the Company has launched Enterprise DSL, I-Sentry (IP video monitoring and surveillance solution), managed services and also soft launched Tele-presence for the first time in Pakistan.
• Data Centers equipped with latest technologies are being established at Karachi and Lahore with the objective to provide data-hosting as well as disaster-recovery services to our valued corporate customers.
• Another initiative is the on-going project to equip over four thousand (4,000) schools with IT labs under the auspices of Government of Punjab.
• Residential customers promotions include: Free on-nets minutes for new connections, Double-up Unlimited Package with single pricing for voice and broadband services, Bundle deals in Lahore and Karachi and Regional Packages.