Cellular Phone Operators Face Downfall in Revenue:Year 2009
Cellular phone operators’ average earnings from its subscribers failed to improve in 2009 despite constant decline in tariff of telephony services, free minutes and SMS offers and introduction of various value-added services.
The monthly Average Revenue Per User (ARPU), the most important indicator of operators’ financial strength, have maintained its downward trend on the unexpected reducing utility of the telephony services by its subscribers.
According to the estimate of sector analysts and officials of various companies, the ARPU of mobile phone sector is floating around $2.20 (Rs 185) per month by the 2009, which was still a matter of concern for cellular operators, whereas the monthly ARPU was at $2.58 (Rs 204) by 2008-end.
Four out of five foreign-based cellular phone operators conclude their financial year with the end of the calendar year, not showing any sustainability in the average income of subscribers in the last three quarters as compared to the previous year. Nonetheless the consumption pattern of the services was still lacklustre in the remaining last quarter according to the various officials of the cellular phone operators.
Pakistan Telecommunication Authority (PTA) commented in its analytical annual report 2009 that operators have to focus on more value-added services in order to increase their income from subscribers because higher voice usage through calls is not sufficient for improving ARPUs.
The overall cellular phone connections have raised to 96.7 million with the teledensity touching 59.03 percent by the end of November 2009. Mobilink subscribers base increased to 30.48 million followed by Telenor at 22.27 million. Warid, Ufone and Zong users recorded at 18.71 million, 18.36 million and 6.862 million, respectively by the end of November 2009.
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