Telecom Economic Indicators
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Amir Rajput
Oct 26, 2007, 6:12:09 AM10/26/07
to telecom-gr...@googlegroups.com
PTA has released latest telecom economic indicators.These figures/tables can also reveal some other important facts about the Pakistan economy by a slight elucidation.
• Telecom Sector share in GDP (%)
If Pakistan's Overall GDP is also added in this table (see Table 1 in the ttachment), it reveals that the Pakistan GDP growth is declined by 2% (04-05 & 05-06) but the telecom sector's share increased by 0.1 %. A strong indication of the continuous telecom growth and its augmentation in the over all countries GDP.
• GST / CED Collection from Telecom Sector
The second Table is the GST collection from the Telecom sector. As of today the current GST rate is 15%. By ignoring CED the revenue collected from the telecom sector on the yearly basis is calculated (see the attachment Table 2).
As per expectation in year 2006-07 out of Total Telecom revenue
Mobile share was 77.69 %
Basic Telephony 21.76 %
Other 0.55 %
Further analysis of the table reveals some disappointing facts about Others (WLL /LDI). WLL is on constant decline, revenue fallen from 2 billion to 1.33 billion last financial year. Some shocking figures illustrate the customer non confidence / non acceptance on the WLL operators and technology. Personally I don't see any future of WLL due to ban on the cell mobility, rapid adoption of GSM and some aggressive fixed line marketing from PTCL, this is the reflection of the world over trend where CDMA never become popular with the exception of USA, and the CDMA network are being replaced by GSM or WiMax.
• Telecom Sector share in GDP (%)
If Pakistan's Overall GDP is also added in this table (see Table 1 in the ttachment), it reveals that the Pakistan GDP growth is declined by 2% (04-05 & 05-06) but the telecom sector's share increased by 0.1 %. A strong indication of the continuous telecom growth and its augmentation in the over all countries GDP.
• GST / CED Collection from Telecom Sector
The second Table is the GST collection from the Telecom sector. As of today the current GST rate is 15%. By ignoring CED the revenue collected from the telecom sector on the yearly basis is calculated (see the attachment Table 2).
As per expectation in year 2006-07 out of Total Telecom revenue
Mobile share was 77.69 %
Basic Telephony 21.76 %
Other 0.55 %
Further analysis of the table reveals some disappointing facts about Others (WLL /LDI). WLL is on constant decline, revenue fallen from 2 billion to 1.33 billion last financial year. Some shocking figures illustrate the customer non confidence / non acceptance on the WLL operators and technology. Personally I don't see any future of WLL due to ban on the cell mobility, rapid adoption of GSM and some aggressive fixed line marketing from PTCL, this is the reflection of the world over trend where CDMA never become popular with the exception of USA, and the CDMA network are being replaced by GSM or WiMax.
• Foreign Direct Investment In Telecom Sector
According to FDI definition "It refers to investment made to acquire lasting interest in enterprises operating outside the country of the economy of the investor." Telecom sector remains on top with U$1423.2m just in the year (06-07) and the futre figure remains bullish with the recent acquisation going on in the telecom sector.
The other sectors that attracted FDIs ( top 3 for the year 2006-07)
Food Beverage and Tobbaco U$ 492.3m
Oil and Gas exploration U$ 449.4m
Power U$ 136.2m
Total U$ 1077.9m
The combine investment in the top 3 sector doesn't even match the investment in telecom sector alone
The other interesting fact is almost 78 percent of FDI has come from five countries, namely the UAE, US, UK, China and Netherlands.
Netherlands with 18.1 percent ($753.4 million) has topped the list of foreign investors followed by the UK (17.4% or $724.4 million), China ( 17.0% or $708.9 million), US (16.3% or $676.7 million), and UAE (8.8% or $364.2 million).
• TeleDensity Fixed + Mobile
(See Table 3 in the attachment)
The opportunity of 52 % is still present. Overall its the Telecom sector that is making the Pakistan airborne.
That makes me think what will be the Economic Figures without Telecom?
According to FDI definition "It refers to investment made to acquire lasting interest in enterprises operating outside the country of the economy of the investor." Telecom sector remains on top with U$1423.2m just in the year (06-07) and the futre figure remains bullish with the recent acquisation going on in the telecom sector.
The other sectors that attracted FDIs ( top 3 for the year 2006-07)
Food Beverage and Tobbaco U$ 492.3m
Oil and Gas exploration U$ 449.4m
Power U$ 136.2m
Total U$ 1077.9m
The combine investment in the top 3 sector doesn't even match the investment in telecom sector alone
The other interesting fact is almost 78 percent of FDI has come from five countries, namely the UAE, US, UK, China and Netherlands.
Netherlands with 18.1 percent ($753.4 million) has topped the list of foreign investors followed by the UK (17.4% or $724.4 million), China ( 17.0% or $708.9 million), US (16.3% or $676.7 million), and UAE (8.8% or $364.2 million).
• TeleDensity Fixed + Mobile
(See Table 3 in the attachment)
The opportunity of 52 % is still present. Overall its the Telecom sector that is making the Pakistan airborne.
That makes me think what will be the Economic Figures without Telecom?
Tee Emm
Oct 27, 2007, 7:12:06 AM10/27/07
to telecom-gr...@googlegroups.com
Thanks for the analysis Amir. Putting this up in a post. -T
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