47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Pakistan Economic Survey 2011-12213.5-a Telecom SectorAt the endof fiscal year 2011-12, teledensity in thecountry stood at 68.3 percent showing 6.7 percentgrowth ascompared tothe previousyear. Since themobile sector contributes over 95 percent to thetotal teledensity of the country, an increase inmobile penetration from60.4 percent in 2010-111 to64.9 percent in 2011-12 resulted in improvementof 4.3 percentage points in total teledensity. FixedLocal Loop teledensityhas been declining over theyears due to mobile substitution andtoday it standsat 1.93 percent in 2011-12 as compared to 2.1percent last year showing a decrease of 0. .17percent. Wireless Local Loop subscribers havebeen increasing but the proportionate rise inpopulationkeeps the teledensity ofWLL servicesat 1.6 percent over the last three consecutive years.PercentageFig-13.1: Teledensity80.0070.0060.0050.0040.0030.0020.0010.000.00(71.66)Local LoopCellular Mobile(64.10)(68.3)Wireless Local Loop(61.99)1.81(58.80)1.932.172.12. 70(45.02)3.04(26.23)54.70 58.22 60.464.7 68.203.3740.9022.200.66 1.08 1.40 1.60 1.6 1.6 1.652005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Mar-12MillionFig-13.2: Cellular Subscribers120.0100.080.060.040.020.0Source: PTACellular Market ShareThe mobile market over the years has becomemore stable due tointense competition. Marketshares are now more balancedamong thefiveoperators with almost insignificant changesoverthe year. At the endof March 2012, Mobilink hada market share of30.25 percent followed byTelenor with 24.80 percent and Ufone with 19.54percent.Fig-13.3: Cellular Subscribers Market ShareMarch 12Warid12.17%-33.9Zong13.24%63.288.094.3108.8999.2118.32Mobilink30.25%Source: PTACellular Mobile SectorPakistan’ss cellular sector faced a tough economicand business environment during the last fiscalyear due to taxes, power crisis, security situation,extensive subscriber and naturalcalamities.Despite all these factors, the cellular industrymanaged to double its growth rate from theprevious fiscal year. According to the WorldEconomiccForum’sGlobal InformationTechnology Report 2010-11, Pakistan ranks no. 1in the Internet and Telephony Competition. Thetotal of mobile subscribers reached 118.3 millionatthe end ofMarch 2012.Telenor24.80%Ufone19.54%Source: PTANetwork CoverageeOne of the key indicators of a successful andadvanced cellular market is the geographicalcoverage of land area by thecellular mobileoperators in the country. Pakistan has a uniquetopography ranging from steep mountains to ragingdeserts. Despite such difficult terrain, more than 92percentof the landarea is under the umbrella ofcellularmobile services – a laudable effort by the184