Pakistan Telecom Market 2015
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Transcript of Pakistan Telecom Market 2015
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This is the detailed picture of Pakistan Telecom Market which covers both the operators and also the mobile phones business.
Overall Telco growth slowed because of ;• Development of low cost tariffs• Market commoditization due to large share of online sales and new
regulatory requirements (termination rate, roaming revenues).• New Investments were injected in the operator’s side for upgrading
the existing network from 2G to 3G and 4G.• New customers were acquired and market has opened for more
mobile phones manufacturers to bring in their new models with 3G/4G compatibility.
CURRENT SITUATION OF PAKISTAN MARKET
• 72% of the consumers are using SMARTPHONES
• 28% are using other phones.
• 77% of Smartphone users are 21 to 30 years old (infographic).
a) Android – 68%
b) iOS -24%
c) Windows – 8%
• Majority of Smartphone users -
62% connect with internet over Wi-Fi only.
• 25% using mobile internet while on go.
• 12% smartphone users live without internet.
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Interestingly, according to Grappetite, majority of smartphone users or 41% of users consume more than
Rs. 500 per month for their communication needs, which is more than the double of what an average Pakistani mobile phone user spends per month.
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SMARTPHONE‘S USERS TRENDS
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To understand Pakistan Telecom Industry, following key points are very essentials ;
1) Total Teledensity
2) Cellular / Mobile Subscribers
3) 3G / 4G Subscribers
4) Mobile Teledensity
5) Fixed Local Loop Subscribers & Teledensity
6) WLL Subscribers & Teledensidty
7) Broadband Subscribers
8) Card Payphones
9) Foreign Direct Investment in Telecom Sector
10) Telecom Revenues
11) Telecom Investments
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Total Teledensity
Years Teledensity (%)
2002-03 4.314
2003-04 6.25
2004-05 11.89
2005-06 26.26
2006-07 44.06
2007-08 58.90
2008-09 62.0
2009-10 64.10
2010-11 68.40
2011-12 72.0
2012-13 74.90
2013-14 79.89
Dec-2014 77.17
0
10
20
30
40
50
60
70
80
90Teledensity %
This is also includes AJK & NA’s
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2 - Mobile Subscribers
1990 – Two Mobile Operators were launched – i). Instaphone –Pakcom Limited, a Millicom Operation; ii). Paktel – Cable & Wireless Operations.
1994 – Mobilink GSM – a Motorola Operation is launched.
2000 – Ufone GSM was launched.
2003 – Warid Telecom & Telenor initiated their services.
Instaphone had purchased Paktel and swap their network from AMPS/TDMA into GSM – which was then sold to China Mobiles.
ZONG was launched in 2006.
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Dec-14
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Mobile Subscriber's in Pakistan
Mobilink Ufone Warid Telenor Zong
38.45
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27.26
22.49
36.69
12.46
Millions Subs.
3G / 4G Subscribers• Pakistani telecom operators added
over 9 million 3G users while another 50,000 LTE users till the end of January 2015.
• This count of 3G users is likely to grow further (during weeks to come) with introduction of mobile broadband dongles, WiFi devices from telecom operators in recent weeks.
• According to PTA, Zong almost doubled its 4G users in January 2015 to take the total count of its 4G subscriptions to 5,023 4G Users.
• Warid, on the other hands, recorded 44,075 LTE subscribers during the month of January to outrun Zong.
• With combined subscription count of both the operators, Pakistan has currently almost 50,000 4G/LTE users in the country
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3G / 4G Subscribers
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3G / 4G Subscribers
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Mobile Teledensity
0
10
20
30
40
50
60
70
80
90
Teledensity %
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Years Teledensity (%)
2003-04 3,29
2004-05 8.30
2005-06 22.21
2006-07 39.94
2007-08 54.60
2008-09 58.20
2009-10 60.40
2010-11 64.80
2011-12 68.50
2012-13 71.40
2013-14 76.46
Dec-2014 73.75
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Fixed Local Loop Subscribers & Teledensity
0
1
2
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7
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10 Subscribers
Teledensity (%)
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YearsTeledensity
(%)Subscribers
(M)
2003-04 3.00 4.51
2004-05 3.43 5.28
2005-06 3.37 5.24
2006-07 3.04 4.81
2007-08 2.70 4.42
2008-09 2.20 3.53
2009-10 2.16 3.42
2010-11 1.90 3.02
2011-12 1.70 2.98
2012-13 1.70 3.02
2013-14 1.73 3.17
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WLL Teledensidty
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2Teledensity (%)
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Years Teledensity (%)
2003-04 0
2004-05 0.17
2005-06 0.66
2006-07 1.07
2007-08 1.40
2008-09 1.60
2009-10 1.60
2010-11 1.70
2011-12 1.80
2012-13 1.80
2013-14 1.69
Dec-2014 1.69
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Broadband Subscribers
Years DSL HFC WiMAX FTTH EVDO OthersMobile
BB
2005-06 26,611
2006-07 44,669 484
2007-08 102,910 42,760 19,612 2,800
2008-09 262,661 36,201 88,477 3,967 22,503
2009-10 476,722 49,110 257,616 5,002 111,194 1,004
2010-11 695,245 34,274 428,523 6,346 325,140 1,963
2011-12 880,071 35,520 575,939 8,444 584,459 2,934
2012-13 1,064,003 33,184 530,889 11,152 1,033,5013 3,868
2013-14 1,346,817 37,011 524,111 14,848 1,861,118 5,240
Dec-14 1,423,054 40,151 517,431 16,210 2,149,586 5,445 3,768,253
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Mobile Broadband was launched in July 2014.
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Card Payphones
Years PCO’s Growth (%)
2003-04 184,920
2004-05 279,320 51
2005-06 353,194 26.4
2006-07 387,490 9.7
2007-08 449,121 15.9
2008-09 405,359 9.7
2009-10 337,740 7.32
2010-11 313,723 7.11
2011-12 287,580 8.33
2012-13 289,252 0.58
2013-14 144,201 (49.94)
September 2014 92,201 (36.32)
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LL, WLL & Cellular PCO’s
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0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Growth (%)
Landline, WLL & Cellular PCO’SCard Payphones
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Foreign Direct Investment in Telecom Sector
YearsFDI in
TelecomTotal FDI
Telecom(%) Share
2003-04 207.1 949,4 21.8
2004-05 494.4 1,524.0 32.4
2005-06 1,905.10 3,521.0 54.1
2006-07 1,824.20 5,140.0 35.5
2007-08 1,438.60 5,410.0 26.6
2008-09 815.0 3,720.0 21.9
2009-10 373.62 2,199.44 17.0
2010-11 79.2 1,574.0 5.0
2011-12 361.4 820 (44.04)
2012-13 (408) 1,576.0 (25.89)
2013-14 903.0 2,640.88 34.19
-1000
0
1000
2000
3000
4000
5000
6000 FDI in Telecom Total FDI
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USD($) Millions FDI – Foreign Direct Investments
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Telecom Revenues
Years Cellular Local Loop LDI WLLVAS
(estimated)Total
2003-04 27,840 76,444 1,336 1,152 10,056 116,828
2004-05 48,880 78,828 3,672 275 12,570 144,225
2005-06 89,896 71,186 7,199 12,453 13,827 194,561
2006-07 133,132 68,368 15,567 2,645 15,901 235,613
2007-08 182,122 63,693 23,396 2,704 8,048 279,963
2008-09 212,423 62,568 47,969 2,670 8,179 333,809
2009-10 236,047 61,464 44,964 2,880 10,202 355,557
2010-11 262,761 58,342 34,195 4,978 7,052 367,328
2011-12 298,510 63,805 32,675 5,861 11,175 412,026
2012-13 311,145 80,661 38,672 5,617 3,526 439,621
2013-14 322,683 88,831 43,631 6,279 4,123 465,547
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USD($) Millions
Telecom Investment
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Years Cellular LDI WLL LL Total
2003-04 666.1 6.40 162.70 0 835.20
2004-05 1,158.10 35.10 277.3 2.3 1,472.80
2005-06 1,420.90 50.50 259.40 0.3 1,731.10
2006-07 2,584.50 602.80 747 40.60 3,974.80
2007-08 2,337.70 403.90 52.8 342.10 3,136.40
2008-09 1,229.75 276.75 82.11 57,37 1646.98
2009-10 908.80 183.10 23.0 22.50 1,137.40
2010-11 358.60 108.80 7.60 18.20 493.20
2011-12 211.80 16.20 7.30 5.00 240.30
2012-13 421.50 1.90 11.90 16.10 451.40
2013-14 1,790 2.00 10.00 14.00 1,816.00
USD($) Millions
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Looking Ahead
The Telecom Industry - a phenomenal growth;
Attracting one of the highest foreign direct investment in Pakistan
Deregulation of the telecom sectori. 5 mobile operators
ii. 14 LDI & 18 WLL operators
iii. cutting edge services at lower costs
Numbers of cell phone subscribers from 0.2 million to 70 millions in 7 years
The Internet Industry – phenomenal changes;
• From 29 to 2400 cities were connected
• Tariffs for PTCL’s international internet bandwidths; from $87,000 to $ 1000 per month for a 2MB circuit
• Increased subscribers from 20,000 to over 12 millions
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Issues & Opportunities
Network Readiness Index Pakistan was ranked 67/115 in 2005 & now down to 84/122 in 2007-08
Pakistan will categorised in the Low Access Category
Total Teledenisty in Pakistan at ~ 45%
Rural Teledensity ~ 1%
The BPO industry Call Centres, data processing, MT
$150+ billion (India has over $10 billion share growing at 70%).
Potential to provide large scale job opportunities
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Growth of ICT Usage
Banking Sector Focus on Technology – competitive edge
Numbers of ATMs in Pakistan; tripled in the last 5 years around 1500 ATMs across 30 major cities
ATM networks: 1 Link & MNET
The numbers of online branches in Pakistan; from 400 in 1990 to 3000+ at present
E-enabled plastic cards in banks; from 0.3 million in 1999 to over 5 million
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References
Reports & Figures from PTA Site
Facts of mobile phones trends from
ProPakistani
Wikipedia.org
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Sales & Marketing
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