Operational expenditure (OPEX) of network operators has risen by up to 40 percent in a single year due to a crippling energy shortage in the metropolis, whilst capital expenditures have increased 100 percent in the last three years. Due to the sharp lack of commercial power options, operators have to use generators as an alternative option to keep their network time up that is connected to the subscriber, resultantly with the increase of diesel prices the cost of per site has increased up to 40 percent.
The direct cost increased by 60 percent and this is calculated by the multiplication of the cost of one site with the total number of sites one operator has in Karachi, while the operators also incur losses due to increases in the indirect costs including battery life given that the life of a battery reduces with increases usage amid heavy power cuts and transportation costs with a 50 percent increase in this regard alone. The break-up of all such sites in the case of internet and data operators in Karachi illustrates that Wi-tribe has 275 sites, Wateen has 250 sites, and Qubee 300 sites.
The sites of GSM operators in the city indicates Mobilink with 1,000 sites, Ufone 800 sites, Zong 750 sites, Telenor 900 sites and Warid has 585 sites. In this regard CDMA operators like PTCL has 125 sites, World Call has 150 sites and Telecard has 119 sites. Similarly, Capital Expenditure (CAPEX) of the all above mentioned operators also increased 100 percent in three years due to the many reasons like increasing cost of raw material, labor cost, and increased cost of equipment by dint of dollar rupee parity.
In this regard, an expert of the sector Augere Pakistan General Manager Network Operations and Projects Azad Muhammad Yakoob while speaking to Pakistan Today said this increase in expenditure has become a major hurdle in the smooth operations of the organisations and pointed out that the subscriber, as a direct result, suffers.
It is pertinent to mention that wireless operators (CDMA) extends to PTCL (Vptcl), Worldcall (Go 4 broadband), and Telecard (Go CDMA), while all mobile operators fall in the category of GSM operators. Wireless internet companies working in the country are Augere, Witribe, and Wateen and they all are power dependent while the DSL network provided by PTCL is not power dependent.
