Pakistan’s Telecommunication Sector faces a 30% dip in its first quarter of 2011-2012 fiscal year

Monday, November 14th, 2011 7:20:17 by

As per the reports released by the State Bank of Pakistan, Telecommunication and broadband operators have registered a 30% dip in the revenue generation, during the first quarter of the fiscal year 2011-2012, Jul.-Sept. 2011, compared to last year’s same
period.

Telecommunication sector accounted for a total of $34.6 million compared to last year’s earnings of $49.8 million, which is not a minor drop. If the trend continues during the remainder of the fiscal year, it should worry the telecommunication sector within
the country, which has observed a pulsating trend over a couple of years.

According to the information shared by State Bank, from this year’s total revenue generated for the sector in question, a $30.9 million share was cellular and telecom operators’, whereas, the remaining $3.7 million earnings attributed to the certain listed
companies including the following, Wateen, PTCL and TRG through portfolio profits.

The reason for this drop in revenue generation has been explained by the reduced consumption of the services, during the tail end of the running year. The downfall in consumption of the Telecommunication services has been explained by the decreased usage
of the facility, which has been completely uprooted because of flood-prone rainfalls, which had affected almost entire Sindh and lower Punjab.

During the month of Ramazan, the commercial and domestic use of telephony and broadband services declined 15-20% compared with other months of the year.

Despite financially-tight, revenue generation during the first quarter of the running fiscal year, Telecommunication sector continued to bag commendable shares in the stock exchange market.   

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