Cellular companies in Pakistan are most concerned about ARPU level these days. Size of network they have attained, and the subscribers’ base, this is the time when they are looking to maximum their revenues. However, decreasing rate of ARPU has kept many minds of the industry busy, in solving the equation of ARPU level for their respective operator.
ProPakistani has been working on a research that how much SMS packages contribute to this ARPU dilemma.
Before we conclude, we thought to take input from industry. Please share your thoughts in below comments or contact us through this page for your say.
And question is: What you think, if SMS packages have played key role in decreasing ARPU trend?
No sms packages is not the reason of decreasing ARPU. There is Only one reason high high and high Taxes.
very true sibtain..
I also agree with Sibtain
Too Much Taxes is the main thing of Less ARPU
Also lake of Prepaid internet packages is a basic point of down ARPU
ARPU is calculated as “total revenue divided by the number of subscribers”.
Personally, i thnk its negative perception..
The reason is most obvious and that is CALL RATES because they make up much more than half of the revenue of telecos.
If SMS rates go up, people would decrease their usage so increasing SMS rates won’t help.
Call Rates have gone dramatically down.
It was fool’s act to decrease call rates(to compete), when cellular companies had not any enough VAS Services to generate revenue which was getting lost because of lower call rates.
And, still the impotency of telecos staff can be seen that they arn’t using “immediate(or very easy to provide) VAS”* to increase their revenues till they provide new VAS for higher VAS.
Immediate VAS=Offering GPRS packages on prepaid, Reducing amount of USB Internet(like Ufone) etc etc.
And, they should’ve considered new areas in Telecom like Advanced Mobile Banking etc etc.
They were foolishly relying on Calls and SMS, whose rates they had to decrease to remain in competition.
So, the SECOND REASON is LACK OF ATTRACTIVE VAS!
And, Why they never asked for 3G? GSM is getting thing of past in Pakistan to raise revenue especially if telecos insist on generating revenues from Calls/SMS.
With 3G leading to Video Calls and advanced Internet, Telecos can see revenues surging to 7th sky.
..
LOL-Just that Etisalat is eyeing on “NO-3G” Pakistan for next 4 years.
well guys wait for sometime and i will prove all of you wrong that SMS is the main reason to increase the ARPU.
just watch me out
For me
The main reason for the down fall of ARPU is the competition among operators.
Call rates & the rates for SMS are at rock bottom. If we compare these rate to other countries you will be surprised to see that the operators in Pakistan are imposing most lowest call rates compared to all over world call rates.
Investors are investing in Dollars
And when they calculate the ARPU in dollars you can imagine what will happen
Heart Attack
Next target for the operators all over the world is India
Coz Indian market is experiencing massive growth in telecom sector.
Now all eyes looking upon Indian market.
Thanks guys for your feedback, i won’t comment here, i am just observing, until i will wrap up details in a upcoming article, soon.
well sms package doesnot affect apru
only 5 percent celluer opertaer earn from sms so its not from sms packages
i think its from lower there call charges
Tax,
rates and everything else like sms, call, internet seems @ good rates if only tax is waived.