As the result of deregulation of the telecommunications’ industry in Pakistan in 2003, major foreign investment has been attracted to the country, with US$ 207.1 million being directly invested into the telecom sector during 2004 as opposed to a mere US$ 6.1 million two years’ previously. Translating this investment directly, as the result of the PTA issuing two new mobile phone licenses, plus releasing licenses for fixed and WLL, as an initial response to the first phase of de-regulation, the Government of Pakistan has generated Rs. 30 billion for the Treasury in Pakistan.
The Government regulator, PTA, continues to regulate the registration process and the sales of SIM cards, with estimates that 2007 saw a growth of 2.5 million new subscribers per month. In June 2009 mobile phone sales in Pakistan reached an all-time high of 95 million subscribers, with the frenetic growth slightly less than in 2008 but still being maintained by a healthy market in new customers. This is up from 48.2 million in 2006, rising to 63 million by June 2007.
Mobilink is the Pakistani subsidiary of Orascom which is a telecom company based in Egypt. It has built its market shares up to its present position since it arrived in Pakistan in 1994 and still rules the overall market with 35% of the shares. Ufone is a subsidiary of Pakistan Telecommunication Co. Ltd [PTCL], currently having a share of 21.2% of the market by June 2009. Although completely owned by PTCL, it is controlled by the Emirates Telecommunications Corporation [Etisalat] as the result of the Pakistan Telecommunication Company Limited selling its 26% market share to Etisalat in 2005.
Despite the fact that Mobilink may have a larger share of the market, Ulink has added more lines between 2006 and 2007, to the tune of 2.4 million. Another mobile phone company operating in Pakistan to great effect, and owned by another UAE company from Abu Dhabi, is Warid and its sister company Wateen. This has 19% of the market, although it recently sold 30% of its share to another company, SingTel. A recent entry into the Pakistan mobile phone market is Telenor which now controls a 20% share of the market sales and has pledged to invest $1 billion by 2010.
The Norwegian mobile phone giant is listed on the New York stock market as TEL.NY.PK while the stock market in Oslo lists it as TEL. Paktel was acquired in April 2008 by China Mobile, after which it underwent a makeover and was re-launched under the trading name of Zong, under the group of companies known as CM Pak. Even as a relative newcomer, Zong has hit the market with 6.5% of shares as at June 2009. It is now being described as a company to watch with a ‘ready-to-invest’ attitude and plenty of cash to spend as the result of very successful and aggressive advertising and marketing campaigns.
Such success often arrives on the backs of hard-fought-for rights of the workers and this is just as true with the mobile phone industry in Pakistan is it is within any other business sector. It appears that privatization of PTCL seems to be the way forward and the members of the Pakistan Trade Union Defense Campaign don’t like response from the management of PTCL following their protests: what price the march of progress?