PTCL POISED FOR SPEEDY GROWTH
Mar 19 - 25, 2012
Pakistan telecommunication company limited (PTCL) is leading all telecom operators in Pakistan. It provides to consumers the highest quality broadband internet service, according to the second nationwide Quality of Service 2011 survey conducted by Pakistan Telecommunication Authority (PTA).
The PTA survey places PTCL in category A (more than 95 percent) at Lahore, Rawalpindi, Peshawar and Quetta, and in category B (more than 80 percent) at Karachi for the 1Mbps wire-line broadband service.
Pakistan is the world's 4th fastest growing broadband market and PTCL is the country's single largest broadband service provider with 95 percent market share. PTCL is leading the country's broadband revolution. It is making this technology affordable by bringing the service within the reach of a common user across the country.
The number of broadband users crossed the one million mark by rising up to 1,491,491 at the end of fiscal year 2011 from 900,648 previously - demonstrating a 66 per cent jump. The broadband spread rose from 0.55 percent to 0.89 per cent as well.
PTCL was at the top of the broadband clientele with 848,379 holding 57 percent market share. PTCL was followed by Wateen with 218,506 customers and 15 percent of the market share.
PTCL DSL is witnessing exponential growth with a footmark in over 1,100 cities and towns. PTCL is the world's first operator to introduce "Ultra Net" using VDSL2 bonding technology with speeds up to 50 mbps on a copper network. It has deployed the fiber to the home technology.
PTCL has Pakistan's largest and fastest growing 3G EVDO wireless broadband networks, with connectivity and roaming in almost 200 cities. It is one of the most progressive data connectivity providers of the world.
PTCL launched Pakistan's first 3G enabled Android Smartphone, IVIO Icon Pro that offers dual support for both EVDO and GSM/CDMA network.
To further ameliorate the service quality, PTA introduced Cellular Mobile Network QoS Regulations 2011 and GPRS/EDGE Quality of Service Regulations, 2010.
The telecom sector's contribution to the national exchequer was a substantial Rs116.9 billion. General sales tax/ federal excise duty rose by 20 per cent to Rs52.6 billion. The total telecom revenues were at their peak, reaching an all-time high of Rs362 billion. Cellular income was also boosted and took an 11 per cent spike to Rs262 billion from Rs236 billion previously.
Over the previous three years, PTA has accumulated around Rs40 billion against APC for USF.
PTCL will facilitate National Savings Organization in transforming into an automated and dynamic corporation by providing countrywide connectivity services.
PTCL has also allocated its technological resources and expertise to National Savings Organization to consolidate its processes and increase productivity of each employee. It will also make various improvements and gains in areas such as customer experience and retention, cost reduction, efficiency improvement, and compliance.
PTA continued to spread its message of research in the telecom sector via associations with educational institutions. Under PTA Academia Linkage program, PTA signed memorandums of understanding with leading universities of Pakistan to encourage research and become rearing grounds for future top brass of the field.
PTA has announced that auction for licenses/spectrum regarding 3G/4G/LTE will be held on March 28 and 29 in a transparent manner. This was announced at the second investment awareness conference.
3G licensing is one of most important prospectus in the history of Pakistan. Introduction of 3G license will boost up social and economic growth and will increase the revenue of operators as well as the government.
PTCL has won the prestigious 2nd Global HR Excellence Award 2011 in recognition of its outstanding organizational performance in the telecom sector. This award is recognition of PTCL's spearheading efforts undertaken to transform human resource policies and practices.
After years of declining top line, PTCL closed its half-yearly books with revenue growth of nearly six per cent. PTCL's revenue streams include PSTN (fixed lines), wireless local loop, broadband, corporate business solutions, carrier services, and international business. During the review period, PTCL's cost of services grew by more than eight percent, and reduced the gross profit growth to 44bps.
Though the gross margins remained over a quarter of revenues, they declined by 142bps over same period of last fiscal year. The firms' administrative expenses grew by 12.14 percent, whereas the selling and marketing expenses came down by nearly two percent.
The company is working to invest Rs100 billion in this segment for a period of five years ending June 30, 2016. Up to five million broadband connections would be provided, with a guaranteed 10 MB speed.
PTCL is poised to leverage its infrastructure and networks to offer bundled, high margin services like quad play (voice, data, video, surveillance) to the customers. The launch of 3G-enabled smartphone and tablet with built-in EVO wireless broadband are steps in that direction.
PTCL is progressively going to depend on revenues derived from domestic, and wants a substantial share in the remunerative broadband market.