MOBILINK

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
Mar 19 - 25, 2012

CELLULAR SUBSCRIBER SHARE (%)

COMPANIES 2010-11 2009-10
Mobilink 30.7 32.5
Telenor 24.4 24.0
Ufone 18.9 19.7
Zong 10.0 6.8
Warid 16.0 17.0

Mobilink, a subsidiary of the Orascom Telecom Holding, is Pakistan's leading cellular and blackberry service provider. With more than 31.6 million subscribers, Mobilink maintains market leadership through cutting-edge, integrated technology, the strongest brands and the largest portfolio of value added services in the industry, a broadband carrier division providing next generation internet technology as well as the country's largest voice and data network with over 8,000 cell sites and also has 66 switches.

Housing Pakistan's largest distribution and contact centre networks and an unparalleled 6,500 kilometers fiber optic backbone, Mobilink has already invested over US$3.3 billion in the country to date and provides uninterrupted countrywide connectivity, unmatched customer services and international roaming in over 140 countries.

The company is the official cellular partner of the Pakistan cricket board. As a responsible corporate citizen, Mobilink also offers a range of socially inclusive products and services dedicated to enhance access to information.

The company supports education, health and environmental initiatives and promotes sustainable business practices through Mobilink foundation. Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people from individuals to businessmen to corporate and multinationals.

To achieve this objective, the company offers both postpaid (Indigo) and prepaid (JAZZ) solutions to their customers. Compared to their competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan's cellular industry.

In addition to providing advanced voice communication services that make the lives of millions that much easy, the company also offers a host of value-added-services to their prized customers.

Taking another step forward in offering greater value-addition during the roaming experience, Mobilink now allows both outbound and inbound international roamers the opportunity to earn miles/points simply by making mobile phone calls.

In collaboration with Traveling Connect, Mobilink is the first and only cellular operator in Pakistan to offer such a loyalty program specifically for the benefit of international roamers. Mobilink subscribers need only register with traveling connect as well as any loyalty program. Upon manual network selection of participating mobile networks when traveling abroad, subscribers will then be able to earn value points.

Through this initiative, Mobilink also provides inbound roamers (foreign visitors) the opportunity to earn value points on the respective loyalty programs while in Pakistan.

Mobilink has achieved yet another landmark by being the first operator in Pakistan to offer in-flight communication service for its customers. Partnering with Air France and Emirates through our partner networks OnAir and AeroMobile, Mobilink offers GSM network onboard aircraft providing not only voice calls and text messages but also data over GPRS.

Mobilink proposed amendments in its Reference Interconnect Offer (RIO) for approval of the authority owing to problems faced by the operator regarding LDI payments.

Mobilink submitted revised RIO related to suspension, credit management and security deposit with a view to introducing clarity and warding off any potential financial exposure. The authority approved the proposed changes in the RIO after these amendments were incorporated following a feedback from the industry.

The company maintained its position as the leader in subscriber market with 30.7 per cent share in FY2011 though its share declined by 1.8 percentage points compared to previous year when it was 32.5 per cent.

Market share of Telenor increased slightly to 24.5 per cent at the end of June 2011. The highest growth in market share for FY 2011 was shown by CMPak which managed to increase its share from 6.8 per cent last year to 10 per cent during 2011. Market shares of Ufone and Warid dropped again this year which were 18.9 per cent and 16 per cent respectively.

MOBILE SUBSCRIPTION

Pakistan's cellular market witnessed tremendous growth rates of over 170 per cent just after the deregulation during 2004. Since then the trend has persisted to the present times.

At the end of FY 2011, the number of mobile subscribers reached 108.99 million while there were 99.2 million subscribers during the corresponding period in the year before.

There are over 98 per cent prepaid subscribers mainly because of the innate characteristics including no security deposit or line rent, low income, credit control, easy availability and small top up.

Furthermore, all the provinces of Pakistan displayed positive growth in customers during FY 2011. Punjab being the most populous province of the country held the maximum share of subscribers i.e. 57 per cent. Sindh had half the chunk of Punjab's subscribers i.e. 28 per cent while Khyber Pakhtunkhwa showed a share of 10 per cent in the nationwide cellular mobile subscribers. Balochistan had three per cent portion while AJK and Gilgit-Baltistan held two per cent cellular subscriber share. During the last fiscal year, provincial distribution of cellular subscribers remained almost the same as in the financial year before.

IN-FLIGHT ROAMING & GPRS-BB ROAMING RATES (AS ON FEB 2012)

IN-FLIGHT ROAMING
OPERATOR NETWORK CODE FREQUENCY INCOMING CALL OUTGOING CALL TO PAK

SMS

OUTGOING INCOMING
AeroMobile 901-14 1800 $0.34 $5.10 $1.12 Free
OnAir 901-15 1800 $1.89 $3.19 $0.89 Free
IN-FLIGHT GPRS-BB ROAMING
OPERATOR NETWORK CODE FREQUENCY FREQUENCY BAND RATE PER KB INITIAL INTERVAL SUBSEQUENT INTERVALS
AeroMobile 901-14 1800 2G $0.034 2KB 200KB
OnAir 901-15 1800 2G $0.026 100KB 10KB