Pakistan weekly update on Telecom Sector: Monthly Update

Karachi: As per updated telecom statistics, total teledensity (Cellular + WLL + Fixed) in Pakistan has reached 66.8% at the end of Feb’11 with cellular teledensity alone improving to 63.2% in the period under review.

According to AKD Securities Limited, in this regard, the cellular subscriber base has posted net additions of 1.14mn (1.10%MoM growth) in Feb ’11 to reach 105mn subscribers (up 9.27%Y0Y). Aggressive subscriber accumulation by Mobilink (34% of total subscriber additions) was the major contributor to overall cellular growth during Feb’11. On the WILL front total subscriber base marginally declined by 0.37%MoM to reach 2.78mn subscribers in Feb’11. Within the sector, AKD Securities Limited continues to like PTC which offers exposure to landline, WILL and the cellular market (Ufone).

Net Additions: Feb’11 saw net cellular additions of 1.14mn (1.10%MoM growth) with the overall cellular subscriber base reaching I O5mn. In this regard, cellular teledensity has improved to 63.2% at the end of Feb’11. AKD Securities Limited highlight that the total cellular subscriber base has been steadily increasing as operators successfully roll out value-added services (VAS). As an example, VAS services like Location Based Charging (LBC) has likely aided China Mobile to increase its subscriber base by 15% or 1.17mn subscribers in the last four months. In Feb’11 alone, China Mobile has added -320k subscribers (or 28% of total net additions) bringing its total subscriber base to 9.2mn subscribers.

Similarly, Mobilink reported net additions of -393k subscribers in Feb’11 (up 1 .22%M0M) to reach 32.5mn cellular subscribers. Mobilink was followed by Telenor, reporting a 1.33%MoM growth (332k subscribers) in net additions in Feb’11 to reach 25.3mn subscribers. Ufone and Wand (up 0.60%MoM growth) were laggards, with the former reporting 0.03%MoM attrition in subscribers to reach 20.4mn subscribers in Feb’11.

WLL and Fixed Line: On the WLL front, total subscriber base has marginally declined by 0.37%MoM to reach 2.78mn subscriber during Feb’11, with total Fixed Teledensity (Fixed Line Density and WLL Density) declining to 3.60%. Among the accomplished players, PTC has been an underperformer, posting a sequential decline of —2%M0M to reach 1.3mn subscribers in Feb’11. While Wateen recorded a sequential decline of 5.70%M0M, Telecard recorded a sequential growth of 0.39%M0M in Feb’11. Among the smaller players, Link Direct posted a growth of 1.44%M0M in its WLL subscriber base.

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