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Ufone – Fourth-biggest cellular company is preparing for a merger

Pakistan’s fourth-largest cellular company Ufone, which is a brand name for Pakistan Telecom Mobile Company Limited (PTML) is likely to be merged into Pakistan Telecommunications Company Limited (PTCL).

This merger or acquisition by the three privately owned cellular companies of Pakistan Jazz, Telenor or Zong could be possible but the law ministry would seriously look into a merger with PTCL.

According to “Topline Securities”, a Karachi-based brokerage house, “PTCL issued RFP to the financial institutions for an advisory role for a possible merger of Ufone with Pakistan’s other private Cellular companies.” 

From 2003 till 2011, the company was growing at an average rate of 46% per annum. From the last 8 years, Ufone’s annual growth rate is 0.5% per year where Telecom Industry grew at an annual pace of 5.5 per year.

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The answer could be quite complicated but we let our SalesProfessionalForum.com readers decide that the selling of struggling wing of PTCL, which is still 42% of its total revenue, could make sense where 3 out of 4 cellular private companies are still local subsidiaries of MNCs and only Ufone subscribers’ information/data is in the safest hands. Is it deemed to be a worthless exercise at the most crucial economic situation of Pakistan? For the kind information of our readers that Ufone is already a solely and wholly subsidiary of PTCL….!!

Ufone History

Ufone started its operations in January 2001 and established themselves as a Business Processing Outsource (BPO) Services provider in Pakistan. Since then, Ufone became a market leader in innovation and also established itself and present in almost every corner by covering the major cities and towns.

Today, Ufone has over 265 Franchises with 3 state-of-the-art call centres and over 200 shops & Service Centers.

Ufone Innovation

LNO – Late Night Option

The mobile phone users in Pakistan between 2000 to 2005 can never forget the long hours non-stop Late-Night-Offer (LNO) by Ufone to its subscribers.

TVC dominance of Ufone

No one can forget a remarkable era of Cell phone Advertisements in the Pakistani Cellular Industry by the grandson of Pakistani famous Poet ‘Faiz Ahmed Faiz’ Adeel Hashmi, Faisal Qureshi along with Jawwad Bashir and Mikal Zulfiqar. Those short TV skits or Ads went viral and imitated and liked by every household and everyone kept waiting for one after another TVC by Ufone “Tum Hi To Ho”

VTM Machine

Ufone has started installing Virtual Telling Machines to its Service Centers in Pakistan in 2017. There are up to 35 machines installed in different cities of Pakistan. It is a self-operating machine like a bank ATM where a Ufone SIM holder can get a new SIM, including multiple other options, in a minute 24 hours a day.

4G

Ufone launched 4G services for its customers in 2019, although this launching was very delayed and Ufone might have taken this decision earlier, there were speculations about PTCL management selling Ufone in 2016.

Conclusion

PTCL is the carrier of carriers, the rapid growth of the cellular companies is also a great opportunity for our National Operator. Before the COVID-19, Pakistan was one of the most populous digitally disconnected countries. In 2007, the ex-chief of Mobilink Mr Zuhair Khaliq said that Pakistani market cannot afford more than three to four mobile/cellular operators. Pakistani market is badly affected due to heavy taxation as compared to the rest of the world. No international player wanted to enter into the market as Pakistan has one of the lowest average revenue per user globally. 

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