The Cell Phone Story!

Missiles are known for destruction, but 5 missiles hit the telecommunications of Pakistan to transform it into supremacy which has spread smiles over the face of 85.4 million citizens with no strings attached.

Foreign companies starting operations in a country scares the home industry and its people because we still have the memories of the British India Company in our mind. But, the invasion of telecom industry by foreign investments in Pakistan has brought fruitful results – Government has a new source of income, the telecommunications giants in Pakistan are generating profits as fast as a minting factory generates money and this industry has given ‘bread and butter’ to millions.

The Telecommunications sector is divided into two parts as it is in most of the countries– Basic Home Phone Line Providers and Cell Phone Facility Providers. First to mention is the Land line sector which is currently dominated by the Government but due to evolution it has now integrated with Etisalat, a UAE based Telecom Company, to facilitate existing consumers in order to produce more customers through the introduction of new strategies, plans and packages. The landline sector is still a monopoly shared by the Government of Pakistan and Etisalat which has the management rights. Due to the partnership between the two, experience and new ideas have made a perfect combination which has made the basic home phone line experience cheaper in Pakistan.

CDMA, a new mode of communication introduced in Pakistan, is creating waves in the telecom sector through Wateen, Dialog and GoCDMA. While on the other hand, the Cell Phone Industry has turned from a seed into a huge tree just like Jack and his Beanstalk. Pakistan, like other countries, went through the period where having a cell phone was considered a luxury. But that is not the scene anymore for sure (I call my maid on her cell phone when she’s late!) The SIM cards are now as low as 100 rupees, which at times carry credit of the same amount, and if you are lucky you might also get it for absolutely free during promotions. The thrones for development in this sector go to the 5 players in the cell phone industry of Pakistan – Mobilink, Telenor, Warid Telecom, Zong & Ufone.

These major players have changed the mood and has awaken the consumers from a deep slumber in the market by churning out new strategies at the speed of light to make cell phones a necessity for the common man rather than a luxury. All the major players have brought benefits to the market with their expertise which has positively affected the rate of growth in this sector and has now touched unprecedented heights.

Firstly, Mobilink is Pakistan’s biggest cellular company with 31.9 million subscribers nationwide. Therefore, there are no qualms about who deserves to be called the BIGESST in Pakistan. At times people criticize Mobilink for its comparatively higher rates but it is still gulping down major chunk of subscribers due to the fact business class people are hesitant to switch their network due to line quality, brand loyalty and in order to avoid the inconvenience of informing associates of a number change. A finer aspect is that Mobilink is known for exclusivity. The proof of this is the finest group of brand ambassadors from the entertainment industry vis-à-vis Shan, Vaneeza, Iman, Strings, Wasim Akram, Zenab Qayyum etc

Secondly, Ufone is a matter of honor for the countrymen as it is a subsidiary of PTCL which was established to provide cellular services across Pakistan and has more than 17 million customers according to the data above. Ufone is currently providing quality services by providing various calling options than any provider in the country. The night package of Ufone persuades one to be awake all night. It has from time to time used humor in advertisements campaigns to attract customers. The antics of Adeel Hashmi and Faisal Qureshi on TV makes one to jump off the couch and run to the nearest Ufone.

Thirdly, Telenor has proved with innovation one can invent success. In a short period, Telenor has accumulated a mammoth figure of subscribers – 17.8 million subscribers. The introduction of the ‘easy load facility’ has made calling affordable throughout Pakistan because one can re-charge account from 10 to 1000 rupees. Telenor can surely emerge as the biggest cellular company in Pakistan. Telenor has used glamour and music as the part of their promotion as it’s surely what Pakistanis get attracted too. Ali Zafar’s ‘TELENOR TALKSHAWK’ jingles with Aamina Haq’s million dollar smile is wooing customers towards Telenor.

Fourthly, Warid operated by Abu Dhabi Group led by Sheikh Nahayan Mabarak Al Nahayan has already grabbed 15.1 million customers in a period shorter than an average rule of a dictator in this country! Warid captured customers by giving them relief where it pains the most – the pocket. With reduced charges, Warid lured customers towards it because it knew that to be a household name in Pakistan one has to be the provider with the best rates for products and services. Reema’s touch to their adverts adds glitter to the already shining armor of warid and EP’s former Ahmed Ali Butt in ‘ZEM at MCDONALDS’ ad puts humor and water in everyone’s mouth!

Fifthly, Zong is the Pakistan venture of the biggest cellular company in the world – China Mobile. It acquired Paktel and has vowed to make things pleasant for this bad luck stricken company which had around 2 million subscribers. But with the influx of Chinese ideas, Zong has attracted another 1.6 million customers in less than a year to take their grand total to 3.6 million customers according to the table above – which is a huge achievement as they have done this in presence of four well set competitors in the market. The rings in the ZONG logo depicts fresh, zest and freedom which make its subscribers say it all for less.

 As Pay as you Go is the way of today’s generation. It’s very important here to analyze the prepaid tariffs of the major players. An important factor to mention is that that due to advent of Prepaid packages the telecommunications industry experienced a boom because it requires less documentation and is for all i.e. eliminating discrimination.

Although, these companies provide several packages but for illustrative purposes and to keep data ABC (Accurate, Brief and Clear) we have mentioned the basic three packages which all the providers are serving their customers currently.

The Simple Plan (1 minute plan) is best for those who regularly have longer conversations. In this plan, Ufone is the best provider in regards to rates as it provides rates of 1 and1.60 rupees/minute (On-Net & Off-Net respectively) with no call setup charges. Telenor becomes the best choice for Off-Net calls if one calls other networks because it has rates of 1.4 rupees/minute with a call setup charge of 0.40 rupees for the first minute. In SMS, Ufone & Warid provide similar rates of 0.50 and 1 ((On-Net & Off-Net respectively).

The One Second Plan goes perfectly well for those who communicate for a shorter period, talk less and want to spend less. Zong is the pioneer of this amazing strategy. Warid provides the cheapest On-Net rate for just 3 paisa/second while Zong & Telenor provide rates of 4 paisa for On-Net. But, ZONG wins in the race for the title of the ‘cheapest provider for Off-Net services’ with 4 paisa for calls to all other networks and landline. In SMS, WARID provides the cheapest rate for On-Net SMS of 50 paisa/sms while Off-Net sms charges for the trio is Rs. 1/sms.

THE 30 SECONDS PLAN is made for the confused lot who are unable to identify themselves as frequent callers or seldom ones. Warid, Zong & Telenor share the throne for On-Net call charges with similar rates of 75 paisa per 30 seconds. But ZONG stands 1st on the podium with its uniform charge to Off-Net numbers at 75 paisa per minute.

Surprisingly, it’s important to mention that Mobilink did not get a mentioning in the competition of rates. But, it compensates it by providing an array of Value Added Services and coverage. Moreover, the rates of MOBILINK have come down considerably from previous years and are near to the rates of their competitors which are as far as the distance between two strands of hair.

All the above factors conclude and converge to one point i.e. a revolution has evolved in the Telecommunications sector in Pakistan which has made this type of business a billion-dollar profit generating machine providing huge facilities to its consumers at the cost of peanuts. To make a billion out of a rupee and by keeping loved ones connected, one would only think that Guru Kant Desai of Guru Movie could only do it. But coming back to Pakistan, we have got not one but five of these gurus for whom not even sky is the limit!!

Special thanks to Usman Ahmad Khan and Wajid Iqbal.