The Pakistan Telecommunications Industry Report 2024-2031 includes a comprehensive review of the Pakistani market dynamics, market sizing, market forecasts, analysis, insights and key trends.
This report provides analyses of revenue and market forecasts as well as statistics of the Pakistan telecoms industry including market sizing, 10-year forecasts, market insights, key telecom trends, 5G and also features the following: Overall Telecommunications Market by Major Operators Telco Operators Profile, Revenue and EBITDA Mix Mobile Subscribers & Revenue Market Overview and Forecasts Spectrum Holdings IoT Market Overview Broadband Subscribers & Revenue Market Overview and Forecasts National Broadband Network Detailed Market Overview and Forecasts Thematics / Opportunities relating to 5G, M&A and e-Commerce Telecoms Infrastructure Review Telco M&A Transaction Database
Pakistan Telecoms Industry Report at a Glance
The telecommunications sector in Pakistan has experienced significant growth in recent years, driven by the increasing demand for reliable and affordable connectivity services. With a growing population and rising disposable income, the country has seen a rapid expansion of mobile and broadband networks. The government has also implemented various initiatives to improve infrastructure and increase competition in the sector. Despite challenges such as limited resources and low investment, the telecommunications sector in Pakistan continues to thrive and offers potential for future growth.
Pakistan’s dynamic and understudied telecommunications market is one of the remaining last frontier offering investment opportunities in mobile and fixed digital infrastructure. Although Pakistan’s greenfield telecom market holds huge potential, opportunities must be viewed in light of real challenges, including a lack of physical supporting infrastructure and stable and reliable power transmission and distribution. Regulatory uncertainties, byzantine licensing and adverse weather events remain a hindrance to fixed and mobile operators as well as towercos to invest further in telecommunications digital infrastructure.
Mobile subscriptions and fixed broadband subscribers are forecast to grow during over the period 2024-2031. The country will add over 45m Internet users by 2031. Growing mobile phone penetration and growing fixed broadband take-up among households will fuel future growth over the next eight years. The report forecasts that mobile subscriptions will grow at an annual average rate of 4.2% in 2024-31 and fixed broadband subscribers at an average rate of 9.3% over the same period. Internet user penetration will increase at an annual average rate of 7.4% in the 2024-31 forecast period with an estimated 40% of the population connected to the Internet in 2024 growing to 55% by 2031.
Currently, fast Internet in Pakistan is primarily available in the urban regions in large cities. Outside the main cities, the Internet connection in Pakistan tends to be slow and expensive.
Capex Investments
Expanded coverage, greater affordability, service improvements, increased data usage and smartphone penetration are the main drivers of growth in the telecoms sector. The country continues to expand its fibre-optic network and 4G coverage, backed by increasing investment in capital expenditure. Investments in the telecoms sector grew at an annual average rate of 12.1% in 2017-23. Telecommunications service providers are expected to maintain growth momentum in 2024-31, to an average rate of 5.7%.
Operator Profiles
The Pakistani four-player mobile market is a remarkably stable market, however with mobile revenue pressure, all operators are broadening their range of services from e-commerce, smart home to digital payments.
The telecommunications market is dominated by three large mobile operators - Jazz, Zong and Telenor - with mobile-only infrastructure competing with the incumbent Pakistan Telecommunications Company Limited (PTLC) which also operates Ufone the smallest mobile operator in the country. Other emerging fibre broadband operators, Cybernet, Fibre Link, Nayatel among dozens remain small and sub-scale.
Between 2017 and 2023, both both revenue and EBITDA shares remained remarkably stable, with Telenor losing some share of the telecoms market revenue & subscribers following a late 4G upgrade.
Mobile Subscribers and Revenue
Average annual mobile revenue growth was higher (8.2%) than mobile service subscriptions growth (4.8%) during the period 2017-2023, highlighting a fairly stable market in terms of ARPU for mobile operators. Declining voice & SMS revenue are offset by wireless data monetisation which came late to the market, competitive pressure on ARPU are likely to occur, compounded by bundling discounts to stem churn.
According to our benchmark study of mobile data pricing, Pakistan had among the biggest cost reduction per GB over the last 3 years, while India has the lowest rate in the world with just a few cents per GB.
The Pakistani mobile market is rapidly transforming from a voice and SMS to a mobile data-dominated market. With a continued drive to convert smartphones users to digital shoppers and therefore increasing mobile operators’ consumers share of wallet. Mobile operators are increasing market segmentation and deliver innovative offerings targeting households with digital services such as music, video streaming, digital payments and bundles of other services such as home automation, IPTV and fixed broadband.
Broadband Subscribers - FTTH Push to Gigabit Speeds
After many years of under investments in fibre infrastructure, Pakistan boasts among the lowest FTTH penetration in the world and among the most fragmented market with mobile operators not playing in the market due to licensing issues. Most people use only 10-20Mbps packages.
Fixed broadband penetration is forecasted to grow strongly as Pakistan’s investments in full-fibre networks are still small in scale with many premises yet to be passed.
Thematics - Telecoms Infrastructure / 5G / M&A / Infrastructure
Infrastructure funds, pension funds and government funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure.
Investment funds are assigning high valuation multiples to telecommunications infrastructure assets such as mobile towers, data centres, submarine cable and fibre infrastructure. This report outlines some real market examples of how investors view and value these investments with real industry examples and EV/EBITDA comparatives and benchmarks.
The Pakistan Telecoms Industry Report transactions database analysis highlights the dearth of inbound (domestic) transactions in the Pakistani telecommunications services market, with the largest transactions in towercos and small stakes sale down in mobile operators.
The arrival of 4G moved the Internet off our desktops into our palms and pockets, 5G could transform the network from something we carry around to something taking us around either virtually (augmented reality or virtual reality) or in reality (autonomous vehicles), the 5G outcome and benefits beyond fast connectivity remain largely unknown in terms of business models, investments required and timeline.
Some of the key players in the Pakistan Telecom Industry include Associated Technologies, AWAL, China Mobile, Cybernet, edotco, engro, Fiber Link, Jazz, Mobilink, Nayatel, Prime Networks, PTCL, Telenor, Ufone, Veon, Warid, Wateen and Zong
Why You Should Buy the Pakistan Telecoms Industry Report:
- Benefit from the latest market opportunities
- Understand the threats to your operations and investments and protect your company against future risks
- Gain insights on emerging trends supporting, enhancing or disrupting your activities in the market
- Get a full view of the competitive landscape to assess your market position.
- Forecasts as a key input for successful budgeting and strategic business planning in the telecoms market
- Target business opportunities and risks in the telecoms sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments
- Assess the activities, strategy and market position of your competitors, partners and clients via our Operators Profiles
Table of Contents
Samples
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Companies Mentioned
- Associated Technologies
- AWAL
- China Mobile
- Cybernet
- edotco
- engro
- Fiber Link
- Jazz
- Mobilink
- Nayatel
- Prime Networks
- PTCL
- Telenor
- Ufone
- Veon
- Warid
- Wateen
- Zong
Methodology
The publisher uses primary and secondary research as well as proprietary information sources to generate market analysis and forecasts for fixed and mobile services in terms of both subscribers and revenue. Interviews are conducted with key service providers in the region to determine current and potential market sizing as well as future service offerings. Information gathered through interviews is further cross-checked to validate the total market size.
The primary research is supplemented with a range of secondary source material, including related research, press releases, securities filings, media, Web-based materials, and trade publications.
Industry and population statistics are also leveraged for reference and to ensure consistency in the data collection. Extensive service provider primary and secondary research, together with the publisher's end-user research database, provides a strong basis for sizing and forecasting the market. The multiple reference points allow for validation of information provided by the service providers compared with that gathered from alternative sources.
Note: Forecasts are made in local currency, and no allowance is made for inflation. All numbers in this document may not be exact due to rounding.
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