Mobile phone users cross 99m mark

Telenor gets second place in market as Ufone loses ground.

The number of mobile phone users has exceeded 99 million in fiscal 2010, a five per cent jump on yearly basis.

Mobilink remains the largest cellular company with a 33 per cent market share while Telenor was the fastest growing player by gaining 2 percentage points to 24 per cent, according to data released by the Pakistan Telecommunications Authority.

Ufone’s share declined to 20 per cent in fiscal 2010 which ended in June.

Telenor firmed its second place in market share during fiscal 2010 and bridged a difference of 4 per cent with rival Ufone, which had held the position for many years. Telenor and Ufone had almost the same market share in fiscal 2009.

The data revealed that 1.18 million new cellphone users were added in the month of June, an increase of 1.21 per cent on monthly basis.

Slowing pace of tariff cuts indicates that cellular companies are shifting focus towards bundling and value-added services.

Product bundling involves offering several products for sale as one combined product.

Focus on less penetrated rural areas should lift subscribers by 14 per cent to 13 million in fiscal year 2011, said KASB analyst Muhammad Saqib Sajjad in his research report. Ufone added the most new users in June with 388,000 while Warid added 286,000 and Mobilink 219,000.

Broadband users  jump 118 per cent

Broadband segment has taken off as subscribers surged by 118 per cent to 0.9 million during the year. PTCL remains the market leader with 0.5 million subscribers.

Subscribers will increase to 2.6 million by fiscal 2012 while Pakistan Telecommunication Company Limited (PTCL) should hold 60 per cent of the total market share, according to Sajjad.

Unlike cellphone companies, broadband companies particularly PTCL have focused on quality through higher speed and data usage limits to attract users, informed Sajjad.

Fixed line segment declines

The fixed line segment users declined 3 per cent on yearly basis. However, growing broadband popularity should help in lifting fixed lines by 5 per cent to 6.4 million in fiscal year 2011, said Sajjad.

Published in The Express Tribune, August 17^th, 2010.