Just Released: "Pakistan Telecommunications Report Q2 2013"

New Fixed Networks research report from Business Monitor International is now available from Fast Market Research

by Bill Thompson

(WireNews+Co) - Boston, MA - 07 March 2013

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 as well as organic subscriber growth 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:

- Pakistan's mobile sector recovered from a disappointing Q312, and we expect the market to continue on its long-term growth trajectory in light of the relatively low mobile penetration rate.
- Mobile broadband solutions, particularly EV-DO, continued to outperform and should overtake DSL in the next few years. The overall mobile broadband industry could receive further boost if the regulator manages to auction 3G licences.
- Operators' ARPUs are expected to continue trending downwards due to the reliance on 2G services and rural expansions.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/541257_pakistan_telecommunications_report_q2_2013.aspx?afid=201) (http://www.fastmr.com/prod/541257_pakistan_telecommunications_report_q2_2013.aspx?afid=201)

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 occurred in September 2012. However, the hiring of the consultants was deemed to be illegal and in violation of the telecoms laws and Public Procurement Regulatory Authority's rules.

Singapore Telecommunications (SingTel) has agreed to sell its 30% stake in Warid Telecom after a strategic review revealed that it was unlikely to improve its current competitive position and exploit future opportunities in this crowded market. Abu Dhabi Group, which owns the remaining 70% of the business, will buy the stake for US$150mn, well below the US$758mn SingTel paid for the equity in 2007.

Zong intends to acquire Callmate's defunct licence from the Pakistan Telecommunication Authority. The acquisition of this licence will enable the firm to offer different telephony services such as a long-distance international (LDI) operator. The federal Cabinet Committee and the Ministry of Information Technology and Telecommunication have granted approval to the firm to obtain the licence, Zong's Chief Commercial Officer Sajid Mehmood said. The firm has sought to secure the licence since its launch in 2008. However, the licence has not been issued to the operator because of a binding commercial contract between the government of Pakistan and the UAE.

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