Jazz strengthens its market share to 37pc with 71m subscribers

ISLAMABAD: While the number of overall cellular subscribers has increased over the last five years from 162 million in 2018 to around 190 million in 2023, Jazz has further strengthened its market share, reaching 37 percent with 71 million subscribers.

Additionally, Jazz holds more than 46 percent revenue market share, solidifying its industry leadership, as per the annual report of the Pakistan Telecommunication Authority (PTA).

Jazz has played a significant role in fostering mobile broadband adoption in Pakistan, witnessing substantial growth over the past five years, from approximately 37 percent to 65 percent. Currently, 90 percent of mobile broadband subscribers in Pakistan are utilizing 4G, a notable increase from just 17 percent five years ago, with Jazz having the largest 4G subscriber base of 43.86 million.

The report also acknowledges Jazz as a key contributor to promoting inclusivity through its products and platforms to raise awareness on gender inclusion. The operator utilizes digital technology to improve the lives and livelihoods of women in Pakistan by developing inclusive products, messaging, and business operations. Jazz has also partnered with UNDP to enhance digital skills among women and girls.

Moreover, JazzCash and Mobilink Microfinance Bank are implementing programmes to enhance financial literacy and entrepreneurship among women, empowering them to actively contribute to socio-economic development.

In a tweet, Aamir Ibrahim, CEO of Jazz, underscored the telecom industry's impactful collaboration with the PTA and the Ministry of Information Technology and Telecom, contributing a substantial Rs1.27 trillion to the national exchequer through taxes and deposits. The sector's investment surpasses $5.7 billion, leading to a significant boost in Pakistan's broadband penetration from 32 percent to 54.5 percent, with 4G-enabled sites rising from 48 percent to 93 percent. There is a remarkable surge in the average mobile data usage per subscriber, jumping from 3.3GB to 8.14GB. Furthermore, the industry actively fosters innovation through Ignite and endeavors to connect underserved areas via the Universal Service Fund.

He further said that despite these accomplishments, the decline in the industry’s average revenue per user, dropping from $2 in 2018 to a dollar, compared to the global average of $8, raises serious concerns about the sector's financial health. With escalating business costs (electricity, fuel, interest rates), and major expenses in dollars, including spectrum installments and network equipment imports, both investors and customers face long term uncertainties.

To sustain the telecom sector's pivotal role in realizing the #DigitalPakistan vision, Aamir emphasized the urgency of implementing key policy reforms. These measures involve denominating spectrum prices in PKR instead of US$, extending license payments over 15 years (versus the current 5), and a two-year suspension of annual contributions towards USF and Ignite to enhance fiscal space for the industry.

Copyright Business Recorder, 2024