Pakistan Telecom Industry Slows Down

The year 2008 has shown quite a  few signs that Telecom – the once hot industry of Pakistan -  is losing its steam. Among other factors, foreign investment is down and there are other issues listed below. Follow the links for posts in which each of these items has been discussed.

  1. Susbcriber growth has slowed down
  2. Illegal SIM card issues have hurt sales
  3. Inflation and political instability has impacted the revenues negatively
  4. Tax increases have discouraged higher use and handset sale
  5. There are few compelling services for people other than low price voice and sms
  6. Anti-voip policies, grey telephony and increase in long distance rates for calls to Pakistan
  7. Internet Telephony policies remain unclear

I think there is some intervention needed to address these issue but it will be a while before we see the industry get back on track. Keeping my fingers crossed.

Facebook comments:

9 Comments

  • Well I am not sure why it should be of any surprise! There is a level in every product’s life cycle where it cools down, next in the line is a sharp dip even, that is if the companies don’t keep on innovating with newer solutions…

    Recently looking at the Wimax scene, I am even wondering if a Wimax operator can have a network spread like that of lets say Mobilink GSM in next 5 years. I am sure majority of Pakistani cell phone users will be more than happy to move to a Wimax service which offer them both data and voice (over VOIP) on their handhelds.

  • UJMi – I think the disappointment is due to the self-inflicted wounds. The other day PTA chairman joined the mobile companies to complain about the increase in telecom GST to 21%. What is the government thinking?

  • Well I call it a unnatural way of slowing down.. Telecom is Pakistan is not slowing down because we hit its peak but due to the other financial and political factors.

  • I think the telecom still has the muscle to sustain the hit. Think about the other industries especially those which employ a lot of human resources. Agriculture for example. We decrease the price of petrol and increase that of diesel and kerosene. Where is the sense in that? And that finance minister says on TV that common man will not be effected because they ride a motorcycle. And he said ON TV. Can you imagine.

  • I agree with Mohsin’s comments.

    Other than this the goverment has not taken any substantial measures in past one to two years to help assist this industry to uplift but have been more focused to earn out of it as much as possible even at the stake of loosing it.

  • i m agree with,s zain. now we should be convert our attention towords the other productive resources like agiculture and multinational company also increse our manufacturing process.govt should open new govt industries in rural areas they are also the part of pakistan.we how belong the rural area faces many problem for job.so govt should think for us.

  • i m agree with,s zain. now we should be convert our attention towords the other productive resources like agiculture and multinational company also increse our manufacturing process.govt should open new govt industries in rural areas they are also the part of pakistan.we who
    belong the rural area faces many problem for job.so govt should think for us.

  • telecom industry is still in its boom phase in pakistan because different players in this field are continuesly bringing innovatve products and services to attract customers.telecom industry can sustain its booming pahse by continuesly doing its SWOT analysis with international industries…

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