Ufone's Aggression May Take it Back to Track

Ufone’s recent most offer, called Ufone Solid Offer clearly depicts that Ufone desperately wants to get back the market share in terms of subscribers. Just Last week, we evaluated Ufone’s ratings – after which it responded so aggressively.

It may be recalled that Ufone’s Solid offer, allows Ufone subscribers to make free on net calls after first three minutes, round the clock – making almost every on-net call less than 5 rupees, regardless of its duration.

When we spoke to telecom analysts regarding this offer, they admired Ufone’s team and called it an interesting move. Majority of industry experts welcomed this offer, and said that Ufone will do well in terms of getting back the market share, revenues, retention and the brand name. However, question over ARPU didn’t go in Ufone’s favor.

We know that Etisalat’s officers, deputed in Pakistan (who apparently approved these tariffs), are quite aggressive and such an offer was not a shocker for the industry. They have done the same in the past when PTCL launched Pakistan Package. But PTCL holds entirely different business model when compared to Ufone. Such aggressive moves could be justified being at PTCL, but when we talk about Ufone, there is nothing left they can further incentivize their customers.

Better offer than Ufone’s Solid offer can only be a fixed per month rental against unlimited on-net calls – meaning that Ufone almost hit the extreme level of gamble that it could ever play.

If we evaluate, this tariff, and its outcome for Ufone, its not only the tariff that can win Ufone a fortune. If the overall attitude of the company is not changed, they should not expect much from this single deal.

Ufone has played a Gamble”, said one senior official of a cellular company. He further commented that Ufone has overshadowed all hourly call packages, night offers; mid day break offers, Telenor’s evening free minutes giveaways and what not. However, Ufone will have to play sensibly now, to regain the share and maximize ARPU to beat the competition in balance sheets too, he concluded.

Another expert was little reluctant to opine the fruitfulness of Ufone’s move. He said that this is more than what customers needed. Maybe Ufone gave an undue treat to mobile phone users, which may cost the company, he added.

Telecom experts didn’t see this offer being withdrawn very quickly, rather they were confident about Ufone’s team which needed a re-entry that they have got through this offer.

Though we don’t have exact figures of customer who have already availed this package, but it is anticipated that huge numbers have already converted, while others are following as soon as they know about the availability of this package.

Let’s wait and see what time has to decide about Ufone and its Solid Offer – share your feedback in comments.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK