ZONG MOBILE IN PAKISTAN
S.KAMAL HAYDER KAZMI
Research Analyst, PAGE
Jan 05 - 18, 2009
ZONG is the first International brand of China Mobile being launched in Pakistan. ZONG's core essence is to allow people to communicate at will, without worrying about tariffs, network coverage and capacity issues or congestion. ZONG will be supported by ground breaking communications, trend setting customer service and an unmatched product offering which will redefine rules of the game and establish ZONG as a serious contender for the number one spot. ZONG is offering its customers with entertaining & innovative value added services and empower them by giving a wide variety of products, services & content to choose. The company offers two main packages for its customers first is prepaid packages: (12 Aanay Package, 50 Paisa/Call, Free Package, ZONG Super Free Number, Break Time Offer, Aik Second Package) and second one is postpaid packages (GPRS packages and MNP).
Jan- Mar 07
CELLULAR MOBILE INVESTMENT
(mn $ )
Jan -Mar 07
Jan - Mar 08
Source: Telecom Operator
ZONG NETWORK COVERAGE
The company is focusing on aggressively expanding its network coverage amid growing demand from people living across the vast and diverse geography of Pakistan. The Pakistani operator launches its network coverage along the Karakoram Highway (KKH) and also adding coverage of some of the larger cities in the surrounding northern areas including Daggar, Chilas, Dassu, Bunji, Sikandrabad and Astore. Company will be covering areas in the northern belt and in Azad Jammu and Kashmir (AJK) and fulfilling every commitment that it had made.
ZONG's TAKEONE SERVICE
ZONG has broken new ground by introducing an advanced service of its kind TakeOne that lets subscribers share videos, pictures etc with just a click to anywhere in the world. TakeOne is an amazing service through which subscribers can have around the clock connectivity and can share their supreme moments with their loved Ones. This latest revolutionary move by ZONG has once again reinforced its position as the trend-setter in the cellular industry in Pakistan. Through this service, the subscribers can share their memorable moments to any mobile number in the world, upload their videos or pictures on Facebook, You Tube, Flickr, Picasa and many more with any email address.
ZONG SUBSCRIBERS MONTH TOTAL Dec-07 1,980,587 Jan-08 2,355,309 Feb-08 2,145,315 March-08 2,142,465 April-08 3,146,763 May-08 3,662,099 June-08 3,950,758 July-08 4,446,024 Aug-08 4,803,058 Sep-08 5,092,476 Oct-08 5,297,610 Nov-08 5,398,823 Source: PTA
ACHIEVEMENT OF CHINA MOBILE
China Mobile is the world's largest cellular company having almost 400 million customers, managing more than 200,000 cell sites and handling over 6 billion calls a day. Currently China Mobile has invested heavily in Pakistan and has made a huge market in a very short time after acquiring Paktel. China Mobile has many distinctions attached with its name like: Leading mobile services provider in China, World's largest unified, contiguous all-digital mobile network,
World's biggest mobile subscriber base, Selected as one of the "FT Global 500" by Financial Times and Chosen as "The World's 2000 Biggest Public Companies" by Forbes. Currently, the Company's corporate credit rating is A/Outlook Stable by Standard and Poor's and A2/Positive Outlook by Moody's (respectively equivalent to China's sovereign credit rating).
Market shares of the cellular mobile operators indicates that market is moving towards perfect competition where the share of major operators are declining and new entrants are able to grab more share in the market. Market share of Mobilink has declined from 44.3% in March 2007 to 38.5% in March 2008 though it has added more than 7 mn subscribers during the period. Telenor, which is new entrants, has improved its market share from 16.3% in March 2007 to 20.2% in March 2008 and it has also added 7.6 mn subscribers during the last one year. Zong is another emerging player in cellular mobile market of Pakistan who is increasing its market share in the last one year to more than 2.6% in March 2008. Recently its market share has gone upto 6% with 5.4 million subscribers in just one year which has made Zong the most attractive cellular company in Pakistan to attract the customers.
PAKISTAN MOBILE MARKET SHARE (SEP-08) COMPANIES (%) Mobilink 35 Ufone 21 Telenor 20 Warid 18 Zong 6 Source: PTA
Recently, China mobile ltd is the world's largest mobile operator and has bought 100% shares of paktel ltd for $ 460 million and renamed it as china mobile Pakistan ltd (CMPL). The company has expanded its network in the country. No doubt, ZONG cares for its valued customers and thus brings more colors and melodies of information, entertainment and fun. It is meant to empower and liberate the people of Pakistan in every nook and corner of the country.
Keeping in view the growth potential of the cellular industry there is no option but to be aggressive in order to remain a potent force in the cellular industry as the cellular market is getting saturated day by day. But since the introduction of Zong in the cellular market, it has achieved a high feet by getting the highest number of subscribers in 2008. Thus we can assume that by making strong progress in this market, Zong is looking towards achieving new heights in the future.