Cellular industry stabilising

ISLAMABAD (PPI) - Pakistan Telecommunication Authoritys (PTA) annual report 2008-2009 reflects that the cellular industry of Pakistan is stabilizing as the period of jumps in customer base are over.
There is still some scope for reaching out to the areas that are under serviced but the overall financial health of the operators will be crucial for the survival of the companies.
The critical factor of revenues and profits will play the most decisive role in a market that is now full of new developments.
Last years performance of the various companies on these benchmarks makes an interesting read. Amongst the top four players, Ufone led with 46 per cent increase in revenue, Mobilink the largest cellular operator in the country in terms of declared customer base has increased its net revenue by 4 per cent over the same period, Telenor also performed well with 14 per cent increase and Warid telecom fared with 9 per cent increase in revenue.
The total revenue of the industry saw a growth from Rs 182.122 billion in the year 2007-2008 to Rupees 212.423 billion in the year 2008-2009. Ufone alone contributed to 33 per cent of the industry revenue growth.
It is interesting to note that Ufone has outperformed the industry revenue growth by 3.5 per cent. The company has been most aggressive in terms of innovations. Throughout the year, Ufone has launched very smart and yet aggressive offerings.
Mobilinks otherwise the largest cellular operator seems to be slowing down. But still because of a large customer base the company is earning revenues.
According to the PTA report, Warid seems to be on a sustained momentum and it needs to make its ground stronger.
In case of Zong, though the revenue growth of the company is reflecting good numbers, however, that signifies only the developing phase of the company.
Ufones advertising strategy is also working well as it often is able to break the clutter in a market where advertising means more of the same.
The PTA report hopes that investment in the sector will increase in the coming years. It will be indeed good if the investment continues.
Major players will have to ensure that this investment helps expand the networks, improves quality and encourages diversified use of the services. The companies, however, will have to ensure they maintain profitability as in the longer run this is critical for survival.