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Mobilink-Warid merger: Statistical review and analysis with logics

(Last Updated On: 27/11/2015)

The biggest news which shocked the Telecommunication sector of Pakistan nowadays is about Mobilink-Warid merger. As this merger is counted as the 1st ever merger in Pakistan’s Telecommunication sector, people are willing to know more and more about it.

But the biggest question which lies is what really agreed both the companies to set up a merger company.

Here we will be showing some official statistics and giving up some logics, which would be telling you how this deal would be a handy one for both the telcos.
Number of Mobilink Subscribers: 35,156,550
Number of Telephone Subscribers: 33,191,103
Number of CMPAK (Zong) Subscribers: 23,518,919
Number of Ufone Subscribers: 18,750,250
Number of Warid Subscribers: 10,323,691
Total Cellular Subscribers of Pakistan: 120,940,513

The first thing which is clear that Mobilink is the company which holds the maximum subscribers and Warid is the one with minimum popularity.

The stats also show that Telenor subscribers have increased enormously and undoubtfully that might be a headache for the topper of the list, Mobilink.

Making a quick observation, it is quite sure that Mobilink, Warid and Ufone were losing their market share, on the other hand, companies like Telenor and Zong were at gaining end.

This should be kept in mind that from last several months’ air was all around that Warid is under loss and due to it they are going to sell out their companies.

Pakistan cellular Market share
Mobilink = 29.06%
Telenor = 27.44%
Zong= 19.45%
Ufone =15.50%
Warid = 8.50%

With Mobilink and Warid’s merger now the Market share of this company (Mobilink + Warid) would have become 37.56% which is more than of the 1/3 of the total market.

The company (Mobilink and Warid merger) will now be serving more than 45 Million (454,802,41) customers.

What really compelled these companies to have a merger?

The 1st point which made them band together is Telenor and Zong’s growing popularity in the market and Warid losing its strength over the market, even in the field of internet providing.

Warid came up with an idea of introducing LTE, a kind of 4G service (a bit higher than 3G) although faced a strong competitor as Zong announced 4G. It should be kept mind that they are the only companies to provide 4G internets to the cellular subscribers. But what happened, do check this out:

In 2014-2015 (till June 2015) Warid was having 106,211 LTE subscriber, on the other hand, its counterpart just adjusted for 105,128, although Zong made a slight difference, but it was enough at the beginning. But it later turned down as Zong dominated in the field of 4G or LTE provider in Pakistan.

Here we are not just telling you about the demotion of Warid, we will also be telling what turned on Mobilink to get on the deal.

Mobilink knowing that they do not possess the biggest share in internet providing tried to catch up with Warid, which will also be making their access to the customers with 4G/LTE, and doing so can increase their popularity in internet providing.

Market shares of Cellular internet provider of Pakistan
Mobilink: 27.21%
Telenor: 30.40%
Zong: 20.07%
Ufone: 19.5%
Warid: 0.86%

Note: These stats are by PTA and are of September 2015

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