Cellular industry's revenue swells to Rs 212.423 billion in 2008-09

The cellular industry witnessed considerable growth in 2008-09, as its revenue increased from Rs 182.122 billion in the year 2007-08 to Rs 212.423 billion in the year 2008-2009 Pakistan Telecommunication Authority (PTA) in its annual report for 2008-2009 says that the cellular industry of Pakistan is stabilising, as the period of jumps in customer base is over.
There is still some scope for reaching out to the areas that are under serviced but the overall financial health of the operators will be crucial for the survival of the companies, it said. The critical factor of revenues and profits will play the most decisive role in a market that is now full of new developments. The report, which is available here on Monday, further said that last years' performance of the various companies on these benchmarks makes an interesting read.
Amongst the top four players, Ufone led with 46 percent increase in revenue, Mobilink, the largest cellular operator in the country in terms of declared customer base, has increased its net revenue by 4 percent over the same period, Telenor also performed well with 14 percent increase and Warid telecom fared with 9 percent increase in revenue.
The total revenue of the industry saw a growth from Rs 182.122 billion in the year 2007-2008 to Rs 212.423 billion in the year 2008-2009. Ufone alone contributed to 33 percent of the industry revenue growth. It is interesting to note that Ufone has outperformed the industry revenue growth by 3.5 percent. The company has been most aggressive in terms of innovations. Mobilink's otherwise the largest cellular operator seems to be slowing down. But still because of a large customer base the company is earning revenues. According to the PTA report, Warid seems to be on a sustained momentum and it needs to make its ground stronger.
In case of Zong, though the revenue growth of the company is reflecting good numbers, however, that signifies only the developing phase of the company. The report said that investment in the sector would increase in the coming years. Major players will have to ensure that this investment helps expand the networks, improves quality and encourages diversified use of the services, the report said.