Telenor’s ARPU Declined in 2016 Due to Increased Data Usage

Telenor’s latest earning report said that the company’s ARPU (Average Revenue Per User) for both prepaid and post customers declined during 2016 when compared to last year due to increased data usage.

The company’s ARPU by the end of 2016 stood at Rs. 205 per user per month, down from Rs. 212 per user per month a year ago.

This potentially translates into an equation which will mean that increased investments in 3G / 4G networks are ultimately going to hurt telecom operators. “Sadly, this could be the case if operator’s don’t stop their ongoing price wars and battles”, said an analyst who wanted to remain unnamed.

Not to mention, Telenor invested $395 million for 4G spectrum in August 2016 and has been spending money for last two years to stretch its 3G and 4G footprint.

“You need to be worried when telecom consumer’s average spending per month on telecom services is not more than four cups of tea”, said a high-up of telecom company while speaking with ProPakistani yesterday.

He pointed out that telecom revenues are on a decline for last two years despite network upgradation worth several hundred million dollars and other valuable offerings.

This calls for actionable measures from operators to deal with the situation before it’s too late. We are hearing that their headquarters are already rejecting — or the very least, not encouraging — any new investment plans.

Its time that telecom operators start thinking of things beyond number of subscribers and start offering quality and more sustainable services that could grow their business, not just the subscribers.

Telenor Q4 2016 Highlights:

  • Number of subscribers grew 14% (as compared to previous year) that resulted into 12% increase in revenues
  • EBITDA decreased by 4%
  • Capital expenditure increased due to 3G and 4G network roll-out, following the acquisition of new 4G spectrum earlier in 2016

More in below table:

 

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


  • Geo telenor !

  • Fakhre Alam

    I want to buy 4g wingle for home usage. Which network offers consistent speed? Please suggest.

    • Muhammad Faheem

      depends on your location and area of usage…..

    • KMQ

      Bhai aap tu hamesha mujhe kharche wala mashwara dete ho us hisab se tu mujhe aap ko kehna chahiye ke sari buy kar lo jo sahi chale ek month tak usko next month recharge karo :p

      But main aapko yeh mashwara nahi donga, I would suggest you better should borrow it from some friend, neighbor and use it for a day or two and decide yourself on the basis of your test. Because it totally varies and depends from location to location…

      • Fakhre Alam

        Hahahaha. Yar gharib banda hu. Ap ny waqai boht acha mashwara diya hy. ?

        • Mirza Moazzam Baig

          To phir simply sab ka 4g mobile pe check kr lo at your area and then buy the wingle device accordingly

      • BADAR

        Telenor 3G Device 750 ki mil rahi hai 14 feb tak

        • Mohammadee

          and what about 4G Device?

          • BADAR

            Rs. 1,799.00 wqithout data pkg
            but with 750 3g dongle and 999 3g wingle you will get 30 Gb of Telenor free. Yani 30 GB 3g for a month in only 750 or 999 Rs respectively.

    • Syed Shah

      Zong is best

    • Hamid Raza

      Location

      • Fakhre Alam

        Mardan KPK.

  • continuedhere

    >“You need to be worried when telecom consumer’s average spending per
    month on telecom services is not more than four cups of tea”

    Wow this is a big guy. He pays Rs. 50 per cup of tea!

  • continuedhere

    they need to spend more on lobbying with the aim of rolling back some of the taxes on telecom services.

  • Abu Zaid

    You also need to consider their stupid Advertisement budgets. Can’t even watch a T20 match with these telecom operator’s ad’s bombarding you ever few minutes, not to mention the ones that are displayed on top, right, bottom and left side of the screen. They need to pay more attention to Quality of Service to gain customer loyalty. Wonder how can they afford to give away Toyota’s and Umrah tickets if they are so concerned with their revenues.

    • continuedhere

      If they don’t advertise then they will end up like warid, man. Out of sight out of mind and eventually so weakened that it got swallowed up by a bigger player.

  • Zafar Abbas Rizvi

    I subscribed Telenor’s 3 GB weekly package 5 days ago. Can some body tell me how can I consume it?
    Remember I am getting full -55 dBm signals from tower in my street. But Youtube doesn’t work even on 144p, torrent speed doesn’t cross 20 Kb/s and browsing stops after every 5 minutes and I have to toggle flight mode for reconnection.
    These companies are rightfully struggling.

    • Ishtiaq

      Lol. Same is case with ufone, it never works, even 4 out of 10 sms fail sending and everytime i have to resend. 8 out of 10 calls say “aapka matlooba number dasitoyab nahi or some messages”. If there will be some “worst network of the world” ufone will undoubtedly be the winner. Now u can rate Telenor maybe runner up something.

      • Mirza Moazzam Baig

        Jo Ufone use kare, Wo hum mein se nhi. :D

        • Adnan

          Tum hi to ho

    • Mohammad Sharif

      mere sath bhi ehsa hi tha jab telenor use karta tha ab zong use karta ho suba 1 mb downloading speed hoti hy aur sham ko 80 kb tak hoti hy

      • Sahil

        Go for Ufone 3G ultra,, much better service since they re framed the spectrum/frequency,,, and comparitvely economical v/s Zong/Telenor

        • KaKa

          Will you please elaborate Ufone 3G Ultra?

        • Shahrukh

          How exactly is it Ufone economical?

          • Majid

            Supercard and consistent quality of services of Ufone

            • Sahil

              Well, Ufone has recently re-framed its 3G spectrum (3G Ultra) and available frequency for data/voice traffic is diverted. Now customers are having better quality services i.e download speed is almost near to 9mbps. Moreover, recently zong has revised their data packages almost raised by 20 to 25% and expected increase more. In Ufone super card customer has comprehensive facilities of voice/data/text for a month :)

        • Mohammadee

          how economical? does Ufone have a package like zong has: Day Time Offer 1GB Data valid from 4am to 4pm in 12 rupees.

          • Sahil

            Dear,,,, except a specific segment, majority of the class (students/working professionals) has to go their work/uni/schools at 8:00 am :)

    • Muhammad Shams

      Dual Sim is the ultimate solution for Pakistani users where no company is having reliable track record. I suggest keep one sim for calling and keep changing the 2nd sim according to the net packages and net speed. (Note: Keep yourself away from Telenor to be healthy and tension-less.)

      • Zafar Abbas Rizvi

        I am using Zong supreme monthly offer on my primary number and very satisfied. I subscribed this package on my secondary number just to check their 3G/4G and now I am unable to consume.

        • Muhammad Shams

          oK

  • Saqlain

    Ufone quality services and Super card
    Ufone tum he to ho

  • Salim

    hearsay, leaks without context, generalized views, copy paste of financial statement summarizes this blog. not a cent of analysis on top of bits and pieces of information copies and added.

  • Awaise

    If Pakistan needs quality services please consume at least 500 Rs per month for mobile services
    Better use super cards if u need complete affordable bundle
    I personally go for Ufone supercard

    • Adeel

      I’m using Zong all in one 500
      1500 on net minutes
      150 off net minutes
      1500 MBs internet
      1500 SMS
      How much you got from super card ?

      • Sahil

        I have shifted from Zong to Ufone recently to avoid call drooping/muting issue. There is difference in quantity services (Zong) and quality services (Ufone)

        • Adeel

          Strange, I’m experiencing excellent call and internet quality with zong.

        • Adeel

          By the way how much data , minutes, sms and minutes you are getting from super card ?

    • continuedhere

      the people who read and comment on this blog are not the ones dragging down their arpu. we all spend way more than the average :)

  • Syed Shah

    Telenor is worst network after sale services is totally disgusting help line, franchises no one responsible for any issue everyone say go to next door, it,s better you people also merge with any other network.

    • Mohammadee

      Merger of companies will not improve quality of services. Merger is not a solution. Telenor and all other operators should improve on their own.

  • The issue could be like people are now connected through the data services. They whatsapp rather than texting. They make audio calls through app rather than local telecom call. Things are really changed now.

  • Salim

    why are you so insecure Mr Aamir atta? if you blog professionally, u dont have to delete people’s comments like this.

  • If calls / SMS revenue is dropping, why isn’t the mobile internet revenue is increasing?

    For all those MBs and GBs they provide at insanely high prices, aren’t they earning more?

    • continuedhere

      SMS is extremely expensive compared to communication over the internet. So data revenue has increased but it can’t possibility compensate them for the loss they are facing in voice/sms revenues. It’s just a cheaper and less profitable technology.

      They have two options here. They can either increase prices and make more profits. Or they can play the volume game. Increase the size of the market and heavily promote the use of internet services. Competition makes it hard to increase prices so it looks like they are going to increase adoption. There is a lot of room for further adoption because internet penetration rates in pakistan are 20-30% only.