2 days suspension of mobile services - Cellular cos to bear Rs 2.28bn revenue losses

2 days suspension of mobile services - Cellular cos to bear Rs 2.28bn revenue losses 

KARACHI: The suspension of mobile services all over the country to avoid any untoward incident (acts of terrorism) during Muharram 9 and 10 (Thursday and Friday) processions has been estimated to cost cellular operators Rs 2.28 billion losses.

The cellular services were suspended in several cities of the country on Thursday in light of security concerns during Ashura holidays. In Sindh, cellular services remained suspended in the cities of Karachi, Sukkur, Hyderabad, Ghotki, Khairpur, Rohri and Jacobabad. 

While all main cities of Punjab, Khyber Pkahtunkhava, Azaad Kashmir and Balochistan also witnessed full day of mobile service suspension. According to the government agencies, cellular services will remain blocked on Friday (today) across the country.

On the basis of latest Pakistan Telecommunication Authority’s (PTA) statistics, a careful estimate suggests that cellular operators will suffer approximately Rs 2.28 billion losses in two days of service suspension in as many as 80 cities of the country during peak hours. The national kitty will also be deprived of around Rs 296 million by this security measure taken by the regime to halt any unpleased incident.

Similarly, PTA’s data said that mobile revenue for all five operators of the country stood at Rs 411.37 billion at the end of fiscal year 2011-12, thus the calculations on the basis of it, resulted in Rs 2.28 billion losses for two days. Similarly according to the PTA’s figure, the telecom sector’s contribution to the national exchequer was Rs 133.4 billion by the end of FY 2011-12; therefore it can be projected that the government will miss the hefty amount of around Rs 296 in terms of taxes and other duties owing to mobile service suspension in almost all major cities of the country.

Inside sources said that the telecommunication companies had suffered billions of rupees losses during the last government’s tenure due to frequent suspensions of services on different occasions, now, this incumbent is also following the preceders which will suppress even more the already dwindling revenues of the telecom operators due to unending economic and energy crises in the country.

Telecom industry sources said that the mobile phone companies are already under immense pressure by the government, establishment and other administration as every government organisation has a habit of blaming mobile operators in case any horrible incident takes place. 

The industry has faced a lot of issues as in the case of terrorist acts they are blamed, but one should not forget that it’s the same industry that helps track down terrorists and stop such activities, they added.


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