Pakistan Cellular Market on a Downward Slide

by Teleco Analyst on January 20, 2009

As soon as the new government presented the budget in June 08, the cellular industry was given little credit for the contribution towards economy of country and additional taxes were implemented in form of 21% GST compared to 15% previously, Handset duty of Rs 750 previously no handset duty and continuation of Rs 500 activation tax. The affects of all these short sighted policies are becoming visible with the cellular market showing negative (-) growth consecutively for the 2nd month. The recent market status according to PTA, show that the industry witness -0.6% growth in month of Dec 08 by cellular market decreasing from 90.4 million to 89.9 million a decline of 0.5 million in a month.

Mobilink has lost market share of 4.7% in 6 months from June 08 to December 08, whereas Zong has been the most successful in gaining 1.6% market sharing during the period. Few of the performance statistics are as given below:


(Source: Pakistan Telecommunication Authority)

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{ 1 comment… read it below or add one }

1 Fazal 03.26.09 at 7:37 pm

Graphical market situation shows that cellular market has crossed its maturity stage and moving slightly towards decline. All cellular companies has to find another way to maintain their existing customers.

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