Published on May 4th, 2011 | by Arsalan Mir5
Price War is Bad for Broadband Internet Companies – Qubee Chief
We have seen the call rates go way down with extensive price wars in Pakistan’s cellular mobile domain. It had resulted in low ARPUs for the industries. Recently the price war has also started among the Broadband Internet companies. In an interview with The Express Tribune, Mubashir Naqvi, Chief Executive Qubee Pakistan expressed that Broadband companies cannot afford price wars as they may affect the quality of service. Below is the excerpt of the interview.
While commenting on the growth of broadband internet market he says that a phenomenal growth is seen and it is still growing rapidly. “I do not think there is any saturation in the market. Companies that improve their services, technology and products will succeed,” he asserted. “Owing to the demanding nature of business, we call it a 3D business which is different, difficult and dynamic.”
Speaking about possible mergers and acquisitions, Naqvi said he expected mergers and acquisitions in the local broadband market. “Technology kills technology, companies do not kill companies,” he said. At present, there are four broadband internet service providers in Pakistan.
With almost a 52 per cent market share, DSL internet is still the most popular in the local internet market. However, broadband internet users have grown continuously over the last three years and companies have acquired a 28 per cent market share. The remaining market share is divided between EvDo (15 per cent) and HFC (4 per cent), according to Pakistan Telecommunication Authority (PTA) data.
via Express Tribune