Pakistan Telecommunication Authority has apparently not questioned Mobilink’s recent promotion, in which it has offered its entire prepaid base off-net rates same as of on-net.
We have discussed this before that through a recent promotion Mobilink’s Jazz One Package holders can make off-net calls as low as Rs. 1 plus tax per minute which is even lesser than interconnection charges per minute.
Being Significant Market Player, Mobilink can’t offer such an aggressive package which may result in severe damage towards the industry. Telecom market is already witnessing heavy price war amongst operators; however so far this pricing war was confined to on-net tariffs, and this move by Mobilink can ignite off-net tariff competition as well.
Mobilink’s spokesman confirmed us that the company has not received any notice or warning from PTA regarding the said package, while on the other side we are still waiting for PTA spokesman’s comment over the issue, for last 2 days.
Officials from cellular companies while commenting on Mobilink’s package said that it is PTA’s responsibility to bound SMP to notify the details of packages and promotions prior to launching them. “If this is the case, and if Mobilink had notified PTA prior to promotion launch, then I am unable to comprehend how the authority allowed it?” said a cellular company official.
While on other hands, a telecom analyst said that this package will not only damage telecom market but will also act negatively for Mobilink itself. He said, in already very competitive telecom market Mobilink is equally suffering the downfall of the national economy; and in such a situation, halving your revenues is like hitting your head into wall.
Through our sources we know that this package got approved by Rashid Khan, new CEO of Mobilink, despite it was once rejected by Mr. Zouhair Khaliq during his tenure.
