Recently talking to Bloomberg, PTCL CEO Walid Irshaid stated that he did not rule out an acquisition by the company, further adding that PTCL is not selling but rather buying. It was highlighted that Ufone aims to acquire targets as the company is now focusing on fixed line, high-speed internet along with television services which has helped expand the customer base to approximately one million, and has contributed 20 per cent to total sales. Mobile phone subscriptions according to him have surged to more than 100 million in the country, explaining that the cellular rates in Pakistan were cheapest in the world. “This can’t continue. This market has to consolidate, otherwise this will be a losing proposition for every operator,” Irshaid said. PTCL, he indicated may buy another service provider as falling rates have dampened industry earnings prior to a planned third generation bandwidth auction this year. The government has not indicated how many licenses would be at stake for the five mobile service providers of the country. “There can’t be five 3G operators when the revenue per user is too low,” Irshaid said.
Profit Decline: The company’s profit dropped 33 per cent in the first quarter from a year earlier to 1.4 billion rupees ($16 million), according to a statement. Net income fell 28 percent from a year earlier to 8.4 billion rupees in the 12 months ended June 30, down from 30 billion rupees in 2004, the year the government deregulated the telecom market, ending the company’s monopoly. Cash and equivalents rose to 23 billion rupees as of the three months ended March 31, from 19 billion in the previous quarter, according to data. Telecommunications Corp., has built up its infrastructure to handle as many as 2 million broadband customers, Irshaid said. The capacity may help the company compete with rivals Pakistan Mobile Communications Ltd., Warid Telecom Ltd., Telenor ASA and China Mobile Communications Ltd. Annual net income will probably increase this year, Irshaid said, without giving a more specific forecast.
