CHINA MOBILE PAKISTAN (CMPAK)
S.KAMAL HAYDER KAZMI,
Research Analyst, PAGE
Oct 05 - 11, 2009
ZONG is the first international brand of China Mobile launched in Pakistan. Zong's core objective is to allow people to communicate at will, without worrying about tariffs, network coverage, and capacity issues or congestion. Zong is supported by groundbreaking communications, trend setting customer service, and an unmatched product offering which are redefining rules of the telecom services. Zong has been established as a serious contender for the number one spot. Zong provides its customers with entertaining & innovative value added services and empowers them by giving a wide variety of products, services, & options to choose.
REVENUES & INVESTMENTS OF ZONG
|MONTHS||REVENUES (Rs.Mn)||INVESTMENTS (US $ Mn)|
|Oct - Dec 07||537||-|
Zong has been penetrating the local market quite aggressively with its share jumping from mere 2 to 6% in 2008. This jump is mainly attributed to its aggressive marketing and attractive packages mainly targeting the youth in the country.
ZONG SUBSCRIBERS IN 2008
NETWORK GROWTH & COVERAGE
There were 8,966 towers erected during one year. Zong is coming as one of the fastest growing operator in the mobile segment, where aggressive opening is not only increasing the company's presence but also the subscribers' base.
The company is focusing aggressively on expanding its network coverage amid growing demand from people living across the vast and diverse geography of Pakistan. The Pakistani operator has launched its network along the Karakoram Highway (KKH), and is expanding coverage to some of the larger cities in the surrounding northern areas including Daggar, Chilas, Dassu, Bunji, Sikandrabad, and Astore. The company will be covering areas in the northern belt and in Azad Jammu and Kashmir (AJK).
CELLULAR MOBILE TRAFFIC
Lower tariffs, increased taxes, decreased subscription (blocking of SIMS), and global economic downturn have played havoc with the international traffic both in terms of outgoing and incoming calls traffics. This sector was suffering from declining minutes until March ë08, however it started getting better in Sep ë08 and finally in Dec ë08, the traffic was increased up to some extent.
The SMSs kept increasing due to attractive packages offered by all the operators. Total of 11 billion SMS were sent only during the last quarter of 2008. Despite being the largest operator, Mobilink's SMS traffic was not significant rather it was just 1 billion of total 11 billion SMS traffic. Zong though having the smallest share of subscribers generated almost equal number of SMS in comparison of its rivals Ufone and Telenor.
The mobile market revenues have turned out to be satisfactory during the reported period with total revenues amounting to Rs54 billion. The companies though suffered lower profits during the 2nd and 3rd quarter of 2008, however the year ended with much stability and growth in the industries' total revenues. The dip was actually due to the price wars sparked by Zong in 2nd quarter of 2008. So far, China Mobile Pakistan (CMPak) has invested more than US$ 800 million in the telecom sector in Pakistan until the end of year 2008.
China Mobile is the world's largest telecom operator. Having a customer base of over 300 million customers, its network handles 700 million text messages every day and 250 million calls every hour.
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: leading mobile services provider in China; having world's largest unified, contiguous all-digital mobile network, world's biggest mobile subscriber base; selected as one of the "FT Global 500î by Financial Times; and chosen as "The Worldís 2000 Biggest Public Companies" by Forbes.
China mobile 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. Zong cares for its valued customers and thus brings more colors and melodies of information, entertainment, and fun. Its objective is to empower and provide economic telecom services to the people of Pakistan.
In view of the potential of the cellular industry in Pakistan, there is no option but to be aggressive in order to compete in the industry. While cellular market is getting saturated day by day, since the introduction of Zong it has become a remarkable competitor by getting the highest number of subscribers in 2008. Thus, we can assume that by making strong progress in the market, Zong is looking towards achieving new heights in the future.