Pakistan, the world’s sixth most populous country, has been an alluring market for foreign telecoms players, with all but one of the six operators hailing from outside the country’s borders. However the high rate of churn, diminishing ARPUs amid a price war, and increasing demands from regulatory powers mean the mobile market is not as profitable as it once was. Michelle Mills considers the factors that are placing pressure on operator margins, and reviews the prospects for 3G
The circumstances surrounding the postponement of Pakistan’s 3G auction remain murky; with the Pakistan Telecommunications Authority (PTA) originally planning a process to be completed by the end of 2008, yet no such event has yet occurred. The PTA has not issued an official statement as to why the auction has not taken place or when one might do, suggesting the process is on hold indefinitely, due to the global economic crisis lowering the potential sale price that can be achieved, as well as the risk of limited interest from bidders.