Cell phone subscribers reach 85m in April

KARACHI - The number of cell phone subscribers' continued to improve in April 08 with overall subscribers growing by 3.0 per cent to 85.0 million as compared to 2.8 per cent in March 08. Net additions for April 08 improved to 2.5 million, a rise of 13.5 per cent over the previous month's 2.2 million. According to the figure issued by Pakistan Telecommunication Authority (PTA), Zong (previously CMPak) finally reaped dividends of its aggressive marketing strategy and attractive packages, capturing 40.0 per cent additional subscribers in April 08. This also increased the operator's market share from 2.6 per cent to 3.7 per cent. It is important to bear in mind that Zong is also benefiting here from a low base effect with only a 2.1 million subscriber base as of March 08 ends. However, to its credit, the company added 1.0mn subscribers in a cut throat competitive environment with large players, representing 46.9 per cent growth Month on Month basis. Incumbent Mobilink managed to get just 7.1 per cent of net additions for April 08, significantly lower than 17.8 per cent in the previous month. Consequently, the operator experienced a 0.9 per cent decline in its market share to 37.6 per cent. Ufone managed to post decent additions at 13.6 per cent but also experienced marginal decline in its share to 20.6 per cent. Close on its heels and vying for the number 2 slot is Telenor; the company scored 24.7 per cent of April 08 additional subscriber  and now has a 20.4pc market share. Given its recent addition trend, analysts expect Telenor to surpass Ufone in terms of market share next month. Warid also performed well with just enough additions to keep its market share flat on month on month basis. Instaphone's market share also remained unchanged. The PTA reported cellular penetration at 52.9 per cent by April 08 end. Given the on month on month basis improvement in net additions, analysts have revised their subscriber base expectation upward from 87.9 million to 90.1million by FY08 ends which, discounting for churn and inactive SIMS, represents total active subscribers of 79.3 million.

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