Cellular companies rule out downsizing in Pakistan

[LahoreEstate]

KARACHI: Almost all cellular companies rule out any plan to shed permanent workers, and many have disclosed plans to increase investment in the current year.

However, one company admitted to have offloaded contractual and some permanent workers.

Currently, the companies are spending huge amounts on print and electronic media campaigns, on cut in call rates, besides offering various packages to lure customers.

In view of 160-170 million population, the mobile phone subscriber base in Pakistan currently stands at 91 million. Many people prefer holding multiple SIMS.

Dawn has solicited views from various cellular companies to review their investment plans in 2008 and 2009 and also job situation in view of the economic slowdown.

MOBILINK: Director, Public Relations and Corporate Social Responsibility, Orascom Telecom (Mobilink), Omar Manzur, said as an Orascom Telecom Holding (OTH) subsidiary, Mobilink has invested $537 million in its infrastructure aimed at enhancing capacity, network quality and coverage.

On investment plans in 2009, he said information would be made available by OTH in its first quarter results 2009.

Having invested approximately $2.5 billion to-date in network rollout, infrastructure and a 6,500 km redundant fiber optic backbone and with a diverse product platter, including m-commerce and broadband, the company is well-poised to fulfill the communication needs of its consumers.

‘We plan to continue investing during 2009 as well, regardless of economic factors,’ he said.

On job scenario in 2008 and 2009, he said global economic crunch and overall inflationary trends have affected the entire economy and the telecom sector is no exception.

As part of an overall cost-rationalisation exercise, there have been some adjustments in the portfolio of services sought through various agencies.

‘No permanent employees have been laid-off in the past six months. We are hiring at the moment as well and have advertised 60 new openings in various departments,’ Omar said.

In times of stiff competition and economic slowdown, Mobilink had registered a double digit growth in revenues during the year 2008 in local currency. However, he said, as a private sector organisation, this information remains privy to OTH and is reflected in OTH’s overall earnings results available on OTH website.

Mobilink employs over 4,100 individuals directly and has a subscriber base of over 28 million.

UFONE: Head of Public Relation, Pak Telecom Mobile Limited (Ufone), Moazzam Ali Khan, said the company invested over $250 million in 2008.

A majority of this investment was directed towards network foot print in less developed and rural areas of Pakistan. In addition to direct investments in the network, Ufone has been busy in expanding its retail and franchise network in all parts of the country in view of tough economic conditions.

‘As of March 2009, Ufone has not let go off any employees neither planning to lay-off any employees in the near future,’ Moazzam said.

In fact, Ufone has been adding new employees to its family based on the continuously growing business requirements, he claimed.

He did not give figures of earning or profit during 2008 compared to 2007 saying this is company confidential information and hence he won’t be able to share the same. Ufone has more than 19.5 million customers and 3,850 Ufone team members.

TELENOR: Director, Corporate Communication, Syed Hasnat Masood, said Telenor has made the largest European direct investment in Pakistan as yet, exceeding two billion dollars. Recently, Telenor Pakistan entered into an agreement to acquire 51 per cent of the shares in Tameer Microfinance Bank for a Foreign Direct Investment of $12.5 million through a direct rights issue. The acquisition is part of Telenor Pakistan’s strategy to offer financial services in Pakistan.

On new investment during the current year, he said as Telenor ASA of Norway, the parent company of Telenor Pakistan, is listed on the stock exchanges in Oslo and New York, we are legally bound not to disclose figures publicly before they are formally released.

About future plans, Telenor Pakistan has set aggressive targets for itself, while exploring diverse business opportunities.

‘The company is here to stay and intends to play a vital role in further expansion,’ he added.

However, there is a need for stability in policies, and investment-friendly climate, and reasonable taxation, he said.

The company has created some 2,500 direct and 25,000 plus indirect jobs. The company believes in prudent hiring and by keeping the long-term business in view. ‘We don’t have to lay off people,’ he said, adding ‘Telenor Pakistan is not planning any job cuts.’ The company has a subscriber base of 19.8 million.



Cellular companies show no signs of slowing down in view of the 160-170 million population and the mobile phone subscriber base in of 91 million. - File photo.

ZONG: A spokesman for China Mobile Pakistan said that Zong would invest $500 million in the country’s economy during 2009 in the areas of building new network capacity of more than 20 million customer base and other infrastructure.

He said the company had, so far, invested $1.66 billion and has generated more than 1700 direct and over 40,000 indirect jobs. ZONG is the first international brand of China Mobile which was launched on April 07, 2008 in Pakistan. Currently the company has over six million customers.

http://www.dawn.com/wps/wcm/connect/dawn...sizing--za