Pakistan Telecom Operators likely to lose Rs. 35 Billion / year due to Retailer Sales Ban

The Telecom operators in Pakistan are likely to lose Rs. 35 billion per year in revenue due to ban on sale of new SIMs through retailers network as government has allowed the sale of the new connections only through company-owned service centres and franchises, reported Dawn News.

Citing a source in Pakistan Telecommunication Authority, the paper reported that new sales fell by 75 percent, which translated into Rs. 4 billion as loss in revenues for five cellular operators in last two months.

Additionally, the government earned 29 percent less revenues during the reported duration as compared to the same period last year. If this trend goes on, the five operators may lose Rs. 35 billion in 2013 or around 10 percent of their revenues, and the government will collect Rs. 10.5 billion lesser in taxes.

Telecom industry is fearing that revenue loss due to forced network outages may grow big in coming days as cellular services are silenced during all national and religious occasions, which are usually the busiest and best paying days for the telecom sector.

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