Gentelman
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- Nov 21, 2012
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19 February,2013
The consultants
hired by the
Pakistan
Telecommunications Authority (PTA) to
auction the 3G mobile phone licenses
have engaged lawyers to take legal action
over the non-payment of their fees, said a
joint statement issued by the consultants.
Dr. Rob Nicholls from the Australian law
firm Webb Henderson; Dennis Ward, the
former spectrum auctioneer for the
Canadian Spectrum Management
Program; and Martin Sims from the
spectrum specialists PolicyTracker; were
given three month contracts by the
PTA — starting from 23 November 2012 –
for preparing the Information
Memorandum and then the procurement
of 3G licenses in Pakistan.
Three consultants are now claiming that
they had completed more than half of the
assigned work at their own expense –
including a lengthy stay in Pakistan –
before they came to know about the
termination of their contracts through
media.
Consultants say that PTA didn’t confirm
the cancelation of their contracts until
January 14: two weeks later.
It maybe recalled here that Dr. Khawar
Siddique Khokhar, in a letter written to
Principal Secretary to the PM, the
cabinet secretary, secretary information
technology, had termed the hiring of
three consultants for 3G auction as
illegal, in violation of telecom and PPRA
rules and without the knowledge (and
approval) of authority.
Later on the issue of hiring of consultants
was taken to other authorities and
eventually the contract was terminated.
However, as claimed by the consultants,
no payment was made to consultants as
the regulator had agreed in the contract.
The consultants were given individual
cheques by the PTA for 10% of the
agreed fee, but on cashing these cheques
discovered that the PTA had stopped
them.
“This is cheque fraud, pure and simple,
and punishable by a jail sentence under
Pakistani law,” said consultant Martin
Sims.
“This is disgraceful behaviour from a
public body, which should be maintaining
an exemplary reputation, not damaging
Pakistan’s name at home and abroad.”
The consultants claim that they have
incurred substantial personal expenses
and not been paid a penny for the work
they have done. They say that despite
numerous attempts to contact the PTA no
one has been willing to talk to them.
The three international experts have
engaged Bhutta, Khan and Mir to recover
the money. “There are many legal options
available to us and we will be pursuing
each of these in turn until the money we
are owed is paid,” said Rob Nicholls, one
of the consultants.
The contract cancellation letter sent by
the PTA was “ridiculous”, said Dennis
Ward. It claimed that the contract was
void ab initio, a legal term meaning invalid
at the outset. “That is something only a
court can decide,” said Ward. “The PTA is
legally obliged to honour contracts, it
can’t appoint itself judge and jury and
suddenly decide to pull out.”
The forthcoming legal action means the
PTA is liable not only for the unpaid fees
but also for the legal costs associated
with the case. “The PTA is being cavalier
with public money,” said Rob Nicholls.
“Instead of adopting this ‘head in the
sand’ approach it should make an
arrangement to settle its debts and bring
us back after the election to complete the
auction.”
Predictions for 2013:
Telecom and Broadband
Sectors
2012 remained bumpy for Telecom
Sector, especially for the cellular mobile
sector. Price war, lowering ARPUs ,
devaluating currency, energy crisis and
tough economic situations persisted
throughout year to give the industry a
tough time.
Saturating market, cellular suspensions,
hard and at times vicious regulatory
decisions worsened the year for telecom
service providers. In such situations, here
are our predictions for 2013 for Telecom
and Broadband Industries of Pakistan.
2013 for Cellular Industry
Today the cellular industry is all poised.
Waiting for the good time and doing
nothing as such in terms of product
development. Sales are hard to make –
thanks to restrictions on retailers – and
hence revenues are going to get stagnant
without new acquisitions. Cost cutting is
going to remain the top priority in 2013
for the companies.
Prices are likely to go up. We have
already seen Mobilink imposing call
setup charges of 10 paisas on every call.
At least two other operators have already
decided to follow this – but in couple of
months. Even otherwise, call charges are
likely to go up and same will be the case
for SMS packages. Prices for Mobile
Internet, however, are likely to remain as
they are or may go down; as we see it.
Analysts say that Mobilink will perform
best in terms of revenues in 2013. After
new SIM rules, they are likely to use
their position by getting more aggressive
in pricing. Mobilink is likely to increase its
spend on marketing with more focus on
its corporate image.
Telenor will not remain behind in
increasing prices. Experts say that they
will not get as aggressive as Mobilink but
they will twist the tariffs to increase their
margins.
Zong will try to acquire Warid, we have
heard from top officials of the industry.
They say that there is no other and better
way of acquiring customers in short span
of time. With just 17 million subscriptions
and no support from retailers, this
acquisition can turnout as a bailout for
Zong. Having said this, the possible
takeover is not going to be smooth. There
are even chances that Zong may fail in
acquiring Warid for various reasons; with
price to remain the major hurdle. Other
operators may also consider mergers —
but they won’t be easy.
Ufone and Zong are likely to remain price
efficient networks. They will focus more
on voice bundles to attract the
customers. Mobile Internet bundles will
remain their other attribute to grab the
stream.
Cellular companies are likely to focus on
innovative new services that can get
popular. Prizes on service usage can
become handy. Advertising will go to a
new level with brand specific ads to
replace product specific ads on your TVs.
Ufone will introduce mobile banking
solution, of its own, in 2013. With
EasyPaisa at top – there are chances that
other 3 operators (Zong, Mobilink and
Ufone) will not compete on prices,
instead they will focus on stretching their
reach.
Cellular suspensions are likely to get
better. At least we hope so. However,
experts say, these suspensions will
greatly depend on the relations of
operators with the government.
3G licenses, in our opinion, will not be
auctioned before July-August 2013. There
is a lot (such as investment plans,
expansions, work atmosphere and market
trends) that will depend on smooth
elections and the design of the new
government.
Even after July-August 2013, analysts say,
government of Pakistan will not be able
to collect more than USD 250-300 million
as down payment from telecom
operators, while rest of the fee for 3G
licenses will be paid in instalments over
years to follow through earnings from the
market.
Unless proper measures are taken, which
is unlikely, Pakistani telecom industry will
keep facing following issues throughout
2013:
Un-verified SIMs
Illegal international incoming traffic
Same IMEI number for cellphones
Future of Muhammad Farooq Awan,
Chairman PTA, as you all may agree, is un-
certain. Same is the case with USF. Both
these institutes, which were once
considered the best examples and were
an inspiration for the regional and global
markets, are going down due to political
influence and internal managerial
differences.
Incompetence is at its top, while the
goals and attitude of those those who are
running these organizations are not
different than our politicians. Rest you
can understand yourself.
The only hope remains is with-in a better
upcoming government, which will
determine the course of industry during
2013.
2013 for Broadband
Industry
PTCL will remain the dominant player in
broadband market. It will only increase
its share to somewhere around 75-80
percent till year end. Without 3G, 2.2
million broadband subscribers in Aug
2012 are likely to hit 2.8 to 2.9 million
mark by year end.
WiMAX operators will keep struggling
during 2013. As we see it, and experts
agree too, at least one, if not two, WiMAX
operators are going to quit operations in
2013. This can get even worse if PTCL is
further allowed to illegally use the
spectrum for its Nitro services.
EVDO and DSL are likely to remain the
top technologies for broadband users.
EVDO will further strengthen its
subscription base to attain around 35
percent market share in broadband
market in 2013, up from its current 30
percent market-share.
Broadband prices are likely to remain un-
changed. However, customers will be
offered better download speeds to
increase revenues for ISPs.
The whole course of broadband market in
Pakistan can change after live 3G
networks, which seems next to
impossible in 2013 at least.
We sincerely hope that regulatory
environment in Pakistan will get better.
We hope that government will consider
high-taxes on telecom sector to revisit its
policy of milking one single sector to let
the market grow.
www.propakistani.pk/2013/01/01/predictions-for-2013-telecom-and-broadband-sectors-4/
The consultants
hired by the
Pakistan
Telecommunications Authority (PTA) to
auction the 3G mobile phone licenses
have engaged lawyers to take legal action
over the non-payment of their fees, said a
joint statement issued by the consultants.
Dr. Rob Nicholls from the Australian law
firm Webb Henderson; Dennis Ward, the
former spectrum auctioneer for the
Canadian Spectrum Management
Program; and Martin Sims from the
spectrum specialists PolicyTracker; were
given three month contracts by the
PTA — starting from 23 November 2012 –
for preparing the Information
Memorandum and then the procurement
of 3G licenses in Pakistan.
Three consultants are now claiming that
they had completed more than half of the
assigned work at their own expense –
including a lengthy stay in Pakistan –
before they came to know about the
termination of their contracts through
media.
Consultants say that PTA didn’t confirm
the cancelation of their contracts until
January 14: two weeks later.
It maybe recalled here that Dr. Khawar
Siddique Khokhar, in a letter written to
Principal Secretary to the PM, the
cabinet secretary, secretary information
technology, had termed the hiring of
three consultants for 3G auction as
illegal, in violation of telecom and PPRA
rules and without the knowledge (and
approval) of authority.
Later on the issue of hiring of consultants
was taken to other authorities and
eventually the contract was terminated.
However, as claimed by the consultants,
no payment was made to consultants as
the regulator had agreed in the contract.
The consultants were given individual
cheques by the PTA for 10% of the
agreed fee, but on cashing these cheques
discovered that the PTA had stopped
them.
“This is cheque fraud, pure and simple,
and punishable by a jail sentence under
Pakistani law,” said consultant Martin
Sims.
“This is disgraceful behaviour from a
public body, which should be maintaining
an exemplary reputation, not damaging
Pakistan’s name at home and abroad.”
The consultants claim that they have
incurred substantial personal expenses
and not been paid a penny for the work
they have done. They say that despite
numerous attempts to contact the PTA no
one has been willing to talk to them.
The three international experts have
engaged Bhutta, Khan and Mir to recover
the money. “There are many legal options
available to us and we will be pursuing
each of these in turn until the money we
are owed is paid,” said Rob Nicholls, one
of the consultants.
The contract cancellation letter sent by
the PTA was “ridiculous”, said Dennis
Ward. It claimed that the contract was
void ab initio, a legal term meaning invalid
at the outset. “That is something only a
court can decide,” said Ward. “The PTA is
legally obliged to honour contracts, it
can’t appoint itself judge and jury and
suddenly decide to pull out.”
The forthcoming legal action means the
PTA is liable not only for the unpaid fees
but also for the legal costs associated
with the case. “The PTA is being cavalier
with public money,” said Rob Nicholls.
“Instead of adopting this ‘head in the
sand’ approach it should make an
arrangement to settle its debts and bring
us back after the election to complete the
auction.”
Predictions for 2013:
Telecom and Broadband
Sectors
2012 remained bumpy for Telecom
Sector, especially for the cellular mobile
sector. Price war, lowering ARPUs ,
devaluating currency, energy crisis and
tough economic situations persisted
throughout year to give the industry a
tough time.
Saturating market, cellular suspensions,
hard and at times vicious regulatory
decisions worsened the year for telecom
service providers. In such situations, here
are our predictions for 2013 for Telecom
and Broadband Industries of Pakistan.
2013 for Cellular Industry
Today the cellular industry is all poised.
Waiting for the good time and doing
nothing as such in terms of product
development. Sales are hard to make –
thanks to restrictions on retailers – and
hence revenues are going to get stagnant
without new acquisitions. Cost cutting is
going to remain the top priority in 2013
for the companies.
Prices are likely to go up. We have
already seen Mobilink imposing call
setup charges of 10 paisas on every call.
At least two other operators have already
decided to follow this – but in couple of
months. Even otherwise, call charges are
likely to go up and same will be the case
for SMS packages. Prices for Mobile
Internet, however, are likely to remain as
they are or may go down; as we see it.
Analysts say that Mobilink will perform
best in terms of revenues in 2013. After
new SIM rules, they are likely to use
their position by getting more aggressive
in pricing. Mobilink is likely to increase its
spend on marketing with more focus on
its corporate image.
Telenor will not remain behind in
increasing prices. Experts say that they
will not get as aggressive as Mobilink but
they will twist the tariffs to increase their
margins.
Zong will try to acquire Warid, we have
heard from top officials of the industry.
They say that there is no other and better
way of acquiring customers in short span
of time. With just 17 million subscriptions
and no support from retailers, this
acquisition can turnout as a bailout for
Zong. Having said this, the possible
takeover is not going to be smooth. There
are even chances that Zong may fail in
acquiring Warid for various reasons; with
price to remain the major hurdle. Other
operators may also consider mergers —
but they won’t be easy.
Ufone and Zong are likely to remain price
efficient networks. They will focus more
on voice bundles to attract the
customers. Mobile Internet bundles will
remain their other attribute to grab the
stream.
Cellular companies are likely to focus on
innovative new services that can get
popular. Prizes on service usage can
become handy. Advertising will go to a
new level with brand specific ads to
replace product specific ads on your TVs.
Ufone will introduce mobile banking
solution, of its own, in 2013. With
EasyPaisa at top – there are chances that
other 3 operators (Zong, Mobilink and
Ufone) will not compete on prices,
instead they will focus on stretching their
reach.
Cellular suspensions are likely to get
better. At least we hope so. However,
experts say, these suspensions will
greatly depend on the relations of
operators with the government.
3G licenses, in our opinion, will not be
auctioned before July-August 2013. There
is a lot (such as investment plans,
expansions, work atmosphere and market
trends) that will depend on smooth
elections and the design of the new
government.
Even after July-August 2013, analysts say,
government of Pakistan will not be able
to collect more than USD 250-300 million
as down payment from telecom
operators, while rest of the fee for 3G
licenses will be paid in instalments over
years to follow through earnings from the
market.
Unless proper measures are taken, which
is unlikely, Pakistani telecom industry will
keep facing following issues throughout
2013:
Un-verified SIMs
Illegal international incoming traffic
Same IMEI number for cellphones
Future of Muhammad Farooq Awan,
Chairman PTA, as you all may agree, is un-
certain. Same is the case with USF. Both
these institutes, which were once
considered the best examples and were
an inspiration for the regional and global
markets, are going down due to political
influence and internal managerial
differences.
Incompetence is at its top, while the
goals and attitude of those those who are
running these organizations are not
different than our politicians. Rest you
can understand yourself.
The only hope remains is with-in a better
upcoming government, which will
determine the course of industry during
2013.
2013 for Broadband
Industry
PTCL will remain the dominant player in
broadband market. It will only increase
its share to somewhere around 75-80
percent till year end. Without 3G, 2.2
million broadband subscribers in Aug
2012 are likely to hit 2.8 to 2.9 million
mark by year end.
WiMAX operators will keep struggling
during 2013. As we see it, and experts
agree too, at least one, if not two, WiMAX
operators are going to quit operations in
2013. This can get even worse if PTCL is
further allowed to illegally use the
spectrum for its Nitro services.
EVDO and DSL are likely to remain the
top technologies for broadband users.
EVDO will further strengthen its
subscription base to attain around 35
percent market share in broadband
market in 2013, up from its current 30
percent market-share.
Broadband prices are likely to remain un-
changed. However, customers will be
offered better download speeds to
increase revenues for ISPs.
The whole course of broadband market in
Pakistan can change after live 3G
networks, which seems next to
impossible in 2013 at least.
We sincerely hope that regulatory
environment in Pakistan will get better.
We hope that government will consider
high-taxes on telecom sector to revisit its
policy of milking one single sector to let
the market grow.
www.propakistani.pk/2013/01/01/predictions-for-2013-telecom-and-broadband-sectors-4/
