The mobile network operators (MNOs) extended the double-digit growth trend in overall mobile broadband subscriptions (3G plus 4G) previous fiscal year despite the difficult operating environment. According to the most recent data from the Pakistan Telecommunication Authority (PTA), there were nearly 116 million mobile broadband subscriptions at the end of June 2022, which represents a yearly increase of 16 percent (or an additional 16 million subscriptions) over the number recorded at the end of June 2021.
Due to the high-base impact, the 16 percent annual growth rate in data subscriptions during FY22 was on a downward trend in relative terms. The average growth rate for the previous five fiscal years, from FY17 to FY21, was 27%, with lows of 17% in FY20 and highs of 40% in FY17. However, the additional 16 million net memberships during FY22 were larger in absolute terms than the 14 million addition that was typical over the previous five years.
Jazz was the undisputed leader in the data race at the end of June 2022, holding a 38 percent market share in this sector because to its 44 million mobile broadband subscriptions. Zong, which has 32 million subscribers and a 28% market share, is in second place. Third-placed Telenor Pakistan with a 22 percent market share and 25 million data subscriptions. With 13 million users and an 11 percent market share, Ufone is the last big MNO.
Market leader Jazz had a 35 percent share of the approximately 16 million subscriptions added to the total number during FY22 (5.5 million additions), while Zong had a 29 percent share (4.6 million additions), Telenor Pakistan had a 20 percent share (3.1 million additions), and Ufone had a 15 percent share (2.4 million additions). The operator SCO, which had approximately 1.4 million mobile broadband customers as of June 30th, 2022, with a market share of 1.2 percent, is also included in the PTA’s data series.
Mobile broadband subscribers have a lot of space to grow in this market. By discounting the 116 million subscription figure and assuming a “Multiple-Sim Phenomenon” in which every third “subscriber” owns two “subscriptions,” one might arrive at an estimate of 87 million “unique users” that MNOs are now serving. This suggests that roughly 72% of Pakistan’s adult population receives direct mobile broadband service. Because of the characteristics of a young population, the addressable market is constantly expanding.
MNOs, who are vying for the monetization of data services to increase their profit margins, should invest more in the industry. But operators’ FDI inflows have been atrociously low for a long time. In addition to dealing with regulatory concerns (mostly involving taxation and spectrum pricing), the operators in this industry frequently experience macroeconomic volatility. The continuing crisis, which is characterised by the depreciation of the rupee, rising service costs, and power disruptions, has made it worse for operators’ estimates and valuations. Crossing our fingers for a reduction in economic apprehension!
