Cellphone firms seek increase in call rates

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Two major cellular operators of the country have proposed increase in call rates, saying revenues of the telecom industry have been declining which in turn affects investment in the sector.The News has learnt that the proposal was floated in a meeting held at Pakistan Telecommunication Authority (PTA) headquarters on Wednesday, January 14, 2009 in the morning session and continued till lunch time.Chairman PTA, Dr Yasin chaired the meeting, which was attended by the Chief Executive Officers (CEOs) of all cellular operators of Pakistan and member finance to evaluate the financial situation of the cellular industry.Sources privy to the meeting revealed that various issues of the telecom industry were discussed in the meeting. The meeting also talked about the impact of the current global financial crunch and national issues for the telecom industry.Cellular operators’ representatives stated that their revenue had registered a declining trend. Representatives of the two operators, of which one has the country’s largest customer base and the other is a sister organisation of the national telecommunication company, had proposed to increase call rates in order to attract further investments and maintain the quality of their services.They said the sector had received the highest Foreign Direct Investment (FDI) during the last couple of years and in the current scenario no further investments are expected.Cellular operators said the revenue of the telecom industry dropped due to an increase in taxes. The Average Revenue Per User (ARPU) has been reduced to $2.7 per consumer, as compared to last year’s $4 per consumer in the same period. They proposed the burden should be shifted on to the consumers by increasing call rates.Of the two operators’ representatives, one is based in China while the other is UAE-based. The UAE-based representative opposed the idea of increasing call rates, saying that it would reduce the consumer base. They also opposed the idea as the customers are already affected with the current high tax rates and imposition of new 5 per cent surcharge on every easy load has also put extra burden on the customers. They said the ARPU was declining due to many other reasons, not only due to taxes. On the other hand the Norway based cellular operator representative remained indifferent to this issue.A spokesman of the sister organisation of National Telecommunication Company confirmed to The News that the meeting of all mobile company CEO’s, PTA Chairman, Member Finance PTA. However, he said that the meeting was not for increasing mobile tariffs, but rather to evaluate the financial situation of the cellular industry in the country. He said various suggestions were discussed for the betterment of the industry and consumers. This meeting was called in by the PTA.Other issues which were also discussed in the meeting included UAN, SMS interconnection, infrastructure sharing. The meeting also discussed different competitive and aggressive call rates. It mentioned that the telecom industry was still in its growing phase, although the pace of growth was slower compared to previous years. This is understandable given the global financial crisis, rising costs in Pakistan, as well as the maturity phase, which the industry is now experiencing.

Published in The News Business pages

Cellphone firms seek increase in call rates

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Two major cellular operators of the country have proposed increase in call rates, saying revenues of the telecom industry have been declining which in turn affects investment in the sector.The News has learnt that the proposal was floated in a meeting held at Pakistan Telecommunication Authority (PTA) headquarters on Wednesday, January 14, 2009 in the morning session and continued till lunch time.Chairman PTA, Dr Yasin chaired the meeting, which was attended by the Chief Executive Officers (CEOs) of all cellular operators of Pakistan and member finance to evaluate the financial situation of the cellular industry.Sources privy to the meeting revealed that various issues of the telecom industry were discussed in the meeting. The meeting also talked about the impact of the current global financial crunch and national issues for the telecom industry.Cellular operators’ representatives stated that their revenue had registered a declining trend. Representatives of the two operators, of which one has the country’s largest customer base and the other is a sister organisation of the national telecommunication company, had proposed to increase call rates in order to attract further investments and maintain the quality of their services.They said the sector had received the highest Foreign Direct Investment (FDI) during the last couple of years and in the current scenario no further investments are expected.Cellular operators said the revenue of the telecom industry dropped due to an increase in taxes. The Average Revenue Per User (ARPU) has been reduced to $2.7 per consumer, as compared to last year’s $4 per consumer in the same period. They proposed the burden should be shifted on to the consumers by increasing call rates.Of the two operators’ representatives, one is based in China while the other is UAE-based. The UAE-based representative opposed the idea of increasing call rates, saying that it would reduce the consumer base. They also opposed the idea as the customers are already affected with the current high tax rates and imposition of new 5 per cent surcharge on every easy load has also put extra burden on the customers. They said the ARPU was declining due to many other reasons, not only due to taxes. On the other hand the Norway based cellular operator representative remained indifferent to this issue.A spokesman of the sister organisation of National Telecommunication Company confirmed to The News that the meeting of all mobile company CEO’s, PTA Chairman, Member Finance PTA. However, he said that the meeting was not for increasing mobile tariffs, but rather to evaluate the financial situation of the cellular industry in the country. He said various suggestions were discussed for the betterment of the industry and consumers. This meeting was called in by the PTA.Other issues which were also discussed in the meeting included UAN, SMS interconnection, infrastructure sharing. The meeting also discussed different competitive and aggressive call rates. It mentioned that the telecom industry was still in its growing phase, although the pace of growth was slower compared to previous years. This is understandable given the global financial crisis, rising costs in Pakistan, as well as the maturity phase, which the industry is now experiencing.

Published in The News Business pages

Furnace oil prices raised

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Pakistan Refinery Ltd (PRL) and Pak-Arab Refinery Ltd (PARCO) on Friday increased prices of furnace oil.The PRL has fixed new price of furnace oil at Rs21,793 per tonne excluding General Sales Tax (GST) compared to previous Rs21,070, an increase of Rs723. Similarly, PARCO increased furnace oil price by Rs310 at Rs22,760 per tonne excluding GST compared to Rs22,450 earlier.The Ministry of Petroleum in its notification dated January 14 had announced that the review of petroleum products’ prices including high-speed diesel (HSD) would be on monthly basis ie first of every month instead of existing fortnightly review. The next review would now be on February 1.The notification stated that the new monthly system would also be applicable to the refineries as well. However, the two refineries have increased the prices of furnace oil despite the government’s instruction. —JR

Published in The News in Business pages

Furnace oil prices raised

Saturday, January 17, 2009

By Jawwad Rizvi

LAHORE: Pakistan Refinery Ltd (PRL) and Pak-Arab Refinery Ltd (PARCO) on Friday increased prices of furnace oil.The PRL has fixed new price of furnace oil at Rs21,793 per tonne excluding General Sales Tax (GST) compared to previous Rs21,070, an increase of Rs723. Similarly, PARCO increased furnace oil price by Rs310 at Rs22,760 per tonne excluding GST compared to Rs22,450 earlier.The Ministry of Petroleum in its notification dated January 14 had announced that the review of petroleum products’ prices including high-speed diesel (HSD) would be on monthly basis ie first of every month instead of existing fortnightly review. The next review would now be on February 1.The notification stated that the new monthly system would also be applicable to the refineries as well. However, the two refineries have increased the prices of furnace oil despite the government’s instruction. —JR

Published in The News in Business pages

Govt to procure 6.5m tonnes wheat this year

Tuesday, January 20, 2009

By Jawwad Rizvi

LAHORE: The federal government has fixed a wheat procurement target of 6.5 million tonnes for the current year, expecting a good crop following an aggressive wheat sowing campaign across the country.The News has learnt that for the first time the federal government has assigned a wheat procurement target of 300,000 tonnes to NWFP and 200,000 tonnes to Balochistan. It has directed Punjab to procure 3.5 million tonnes while Pakistan Agricultural Storage and Supplies Corporation (PASSCO) would procure 1.5 million tonnes and Sindh one million tonnes.The targets were assigned in a meeting held at Islamabad. The meeting was chaired by Federal Minister for Food and Agriculture Nazar Muhammad Gondal and attended by representatives of the four provinces, Ministry of Food, Agriculture and Livestock (MINFAL) and finance ministry.The meeting discussed methods of wheat procurement at the price announced by the government before crop cultivation. Prime Minister Yousuf Raza Gilani had announced a procurement price of Rs950 per 40 kg for the next season.Following the announcement of the attractive price which is now almost equal to the regional wheat price, the farmers cultivated more wheat sparking hopes of a bumper crop this year. The government has fixed a target of 25 million tonnes for wheat production this year.The meeting also asked the finance ministry to prepare a plan to ensure availability of financial resources at the time of procurement. It also asked PASSCO official to prepare a wheat procurement plan including funds needed for the drive. It was decided that the government would continue buying the commodity from farmers till the last grains from fields were lifted.The meeting noted that necessary arrangements for wheat procurement were crucial as if the government failed to buy from the farmers at the prescribed rate, it would negatively affect production in future. It was also pointed out that if government agencies succeeded in procuring wheat at Rs950 per 40 kg, the country would not face food security problems like those it encountered during the last few years and spent huge foreign exchange on wheat import.The meeting participants were of the view that wheat procurement at the set price would also open a window for export of the commodity in coming years when surplus stocks would be available.Recently, rice farmers suffered a lot as the government failed to ensure the commodity’s purchase at the set price. If the same mistake is repeated in the case of wheat procurement, its production would be affected. The government always has figures from all districts and it can easily devise a plan to purchase every grain.

Published in The News in business pages

Govt to procure 6.5m tonnes wheat this year

Tuesday, January 20, 2009

By Jawwad Rizvi

LAHORE: The federal government has fixed a wheat procurement target of 6.5 million tonnes for the current year, expecting a good crop following an aggressive wheat sowing campaign across the country.The News has learnt that for the first time the federal government has assigned a wheat procurement target of 300,000 tonnes to NWFP and 200,000 tonnes to Balochistan. It has directed Punjab to procure 3.5 million tonnes while Pakistan Agricultural Storage and Supplies Corporation (PASSCO) would procure 1.5 million tonnes and Sindh one million tonnes.The targets were assigned in a meeting held at Islamabad. The meeting was chaired by Federal Minister for Food and Agriculture Nazar Muhammad Gondal and attended by representatives of the four provinces, Ministry of Food, Agriculture and Livestock (MINFAL) and finance ministry.The meeting discussed methods of wheat procurement at the price announced by the government before crop cultivation. Prime Minister Yousuf Raza Gilani had announced a procurement price of Rs950 per 40 kg for the next season.Following the announcement of the attractive price which is now almost equal to the regional wheat price, the farmers cultivated more wheat sparking hopes of a bumper crop this year. The government has fixed a target of 25 million tonnes for wheat production this year.The meeting also asked the finance ministry to prepare a plan to ensure availability of financial resources at the time of procurement. It also asked PASSCO official to prepare a wheat procurement plan including funds needed for the drive. It was decided that the government would continue buying the commodity from farmers till the last grains from fields were lifted.The meeting noted that necessary arrangements for wheat procurement were crucial as if the government failed to buy from the farmers at the prescribed rate, it would negatively affect production in future. It was also pointed out that if government agencies succeeded in procuring wheat at Rs950 per 40 kg, the country would not face food security problems like those it encountered during the last few years and spent huge foreign exchange on wheat import.The meeting participants were of the view that wheat procurement at the set price would also open a window for export of the commodity in coming years when surplus stocks would be available.Recently, rice farmers suffered a lot as the government failed to ensure the commodity’s purchase at the set price. If the same mistake is repeated in the case of wheat procurement, its production would be affected. The government always has figures from all districts and it can easily devise a plan to purchase every grain.

Published in The News in business pages

China-based telecom firm threatened against 'vulgar' publicity

By Jawwad Rizvi

LAHORE: A China-based telecommunication company, which has invested billions of rupees in Pakistan, has recently received threats from Jamaat Tauhid-wal-Jehad to stop what it called its 'vulgar' advertisements. A threat letter was received by the Quetta office of the company by post on December 04, 2008, The News has learnt. The letter, which is also available with The News, was on a printed letter pad of Jamaat Tauhid-wal-Jehad, and its text was also printed, not hand written. The logo of the letter contained the picture of a flag with a man covering his face and holding a sword and a shield. Sources said the letter was signed by Abu Omar Saif on behalf of Jamaat Tauhid-wal-Jehad, which is an unknown organization in the country. The company, in its letter to Interior Secretary Syed Kamal Shah on December 5, 2008, mentioned of the threat and sought adequate security for its staff throughout the country, especially the women at their Quetta office. "Similar threats from unknown individuals and groups have become a recurrent feature now and where such threats intimidate company's foreign nationals working in Pakistan, these may also hamper further investment in the country by our parent company, the letter sent to Syed Kamal Shah read. Earlier, the company had also received security threats at their Islamabad, Blue Area office, on November 27, 2008, about which the company informed the Pakistan Telecommunication Authority (PTA). Taking action on it, PTA Telecom Member Mushtaq Ahmed Bhatti had written a letter 2(1)/2008-M(T) to the secretary of the Interior Ministry on December 03, 2008, requesting for taking action to protect the company. Jamaat Tauhid-wal-Jehad in its letter had told the company to stop 'vulgarity and obscenity' in their public promotion campaigns. The letter said the company had employed at their offices indecently dressed women, whom it should sack. Further, the letter demanded that all the billboards, posters, banners and other promotional campaign material should be removed because they are obscene. The outfit has instructed the company to use natural scenes in their promotional campaigns. The letter gave 10 days to the company and warned that if the company does not act upon its instructions, then it will target the company installations. "All installations of the company will be our target and our snipers will easily silent the company's receivers and senders installed at towers from 1500 meter distance," letter of Jamaat Tauhid-wal-Jehad read. The letter said the company had right to do business freely within the norms, and should respect our religious rights. On the company's request, the ministry of interior on December 24, 2008, in a letter No. 5/11/2008-KP asked all the provincial home secretaries and police officers, and the chief commissioner and IG police of Islamabad to make foolproof security arrangements to avert any untoward incident. The company spokesman told The News that all its advertisements were aimed at informing the public of all the options available to them, in a simple and easy-to-understand language through common people not celebrities. "Our company has never used women as main characters in its advertising campaigns; in fact, we have set the trend of not using glamorous female faces and moved away from songs and dances our advertisements," he stated. The spokesman further said the company - the world's biggest cellular communications company now investing in Pakistan - seeks full protection of the government to its offices, installations and staff members, especially women, against this threat.