Pakistan Telecommunications Industry Update Quarter 1 2012
$ 1 088
- December 2012
- by Business Monitor International
- 90
Includes 3 FREE quarterly updates
BMI View: Pakistan's telecommunications market is one of the most underdeveloped in Asia Pacific. At
the end of 2011, Pakistan had the region's second lowest mobile penetration rate, a situation that is also
similar in the fixed-line and broadband sectors. Additionally, the regulator has yet to auction 3G
licences, leaving mobile operators dependent on basic 2G voice and SMS for revenue generation. This
leaves Pakistan with significant room for growth, although the potential could materialise only in the
medium-to-long term.
Key Data>:
- Our forecasts for Pakistan's telecoms industry - mobile, ARPU, fixed-line and internet - have
been extended to 2017.
- Data from Mobilink and Telenor Pakistan indicate that net additions have tapered in Q212 and
Q312.
- Mobile broadband technologies are expected to drive growth in the Pakistani broadband sector,
although high prices would continue to deter adoption; we envisage broadband gaining a 3.0
%penetration rate in 2017.
Key Trends And Developments
At the time of writing, the Pakistani government has yet to announce a concrete date for the auction of 3G
licences. A pre-bid conference for the selection of an international consultant to facilitate the auction
occured in September 2012 but there has been a lack of development since.
The Pakistan government's shutdown of mobile networks over the Muslim festival of Eid-ul-Fitr is
believed to have cost the country's telecoms sector between US$2.6mn to US$3.1mn. The shutdown,
attributed to security concerns, took place at a time of the year when mobile telecom activity was at a
peak, as people look to connect with their family and friends over festivities. In September 2012, the
government blocked telecoms services in 14 cities to deter militants from detonating bombs during
protests.
Pakistan had a Telecoms Ratings score of 47.3 in BMI's latest Asia Pacific Telecoms Risk/Reward
Ratings. After a three-year long saga, the National Reconciliation Ordinance (NRO) debacle appears to be
coming to a close. In our view, given the looming end of the NRO saga, political risk on this front should
be minimised and the ruling Pakistan People's Party's political credentials should receive a boost.
Furthermore, we believe that Pakistan has moved one step closer towards long-term political stability.
The government should now have time to address some of the country's more pressing issues.
BMI Industry View . 5
SWOT Analysis 6
Pakistan Wireline SWOT Analysis 6
Pakistan Mobile SWOT Analysis .. 7
Pakistan Political SWOT .. 8
Pakistan Economic SWOT 9
Pakistan Business Environment SWOT ... 10
Risk/Reward Ratings . 11
Asia Pacific ... 11
Table: Asia Pacific Telecoms Risk/Reward Ratings Q113 .... 15
Pakistan .. 16
Industry Forecast Scenario ... 18
Mobile .... 18
Table: Telecoms Sector - Mobile - Historical Data And Forecasts .. 18
ARPU ..... 20
Table: Pakistan Telecoms Sector - Mobile ARPU - Historical Data And Forecasts (PKR) .. 20
Fixed Line .... 22
Table: Telecoms Sector - Fixed Line - Historical Data And Forecasts... 22
Broadband ... 24
Table: Telecoms Sector - Internet - Historical Data And Forecasts . 24
Market Overview .. 26
Mobile .... 26
Regional Perspective ..... 26
Pakistan Mobile Market Regional Comparisons, 2011 ... 26
Key Market Developments ... 27
Mobile Growth ... 27
Market Shares ..... 28
Table: Mobile Base Stations By Operator..... 30
Usage 30
Mobile Content/Value-Added Services .... 32
Value-Added Services Timeline... 35
Table: Selected VAS Services 35
Mobile Operator Data ... 36
Table: Pakistan Market Overview..... 36
Table: Mobilink .. 36
Table: Telenor .... 37
Table: Ufone . 38
Table: Zong Telecoms ..... 38
Table: Warid Telecom .... 39
Mobile Content .. 40
Regional Outlook 40
Table: Selected NFC Developments, 2011 .... 41
Fixed Line .... 46
Table: Pakistan Fixed-Line Market, December 2011 ..... 46
Wireless Local Loop (WLL) .. 47
Table: Pakistan Wireless Local Loop Market, March 2012 .. 47
Pakistan WLL Sites By Operator 49
Broadband .... 50
Broadband Platforms 52
Industry Trends And Developments 55
Networks . 55
Table: Telecoms Market Developments .. 57
Regulatory Environment And Industry Developments 59
Table: Pakistan's Regulatory Bodies And Their Responsibilities . 59
Regulatory Developments .... 61
Competitive Landscape .. 62
Key Players ... 62
Table: Key Companies - Pakistan Telecommunications Sector ... 62
Company Profiles 63
Pakistan Telecommunication Company Ltd (PTCL) . 63
Mobilink .. 66
Telenor Pakistan . 68
Warid Telecom .... 71
TeleCard . 73
Company Monitor 75
Table: Vendor Revenues (US$mn) .... 75
Table: Net Sales By Geography (EURmn) .... 76
NSN Selected Asia Activities . 78
Demographic Outlook ..... 80
Table: Pakistan's Population By Age Group, 1990-2020 ('000) .. 81
Table: Pakistan's Population By Age Group, 1990-2020 (% of total) 82
Table: Pakistan's Key Population Ratios, 1990-2020 ..... 83
Table: Pakistan's Rural And Urban Population, 1990-2020 . 83
Glossary Of Terms .... 84
Table: Glossary Of Terms ..... 84
BMI Methodology 85
How We Generate Our Industry Forecasts .. 85
Table: Key Indicators For Telecommunications Industry Forecasts .. 85
Telecoms Business Environment Ratings ..... 87
Risk/Reward Ratings Methodology ... 87
Table: Ratings Indicators ..... 88
Weighting 89
Table: Weighting Of Indicators .. 89
Sources ... 89