In Pakistan, the Telco industry finds itself at a crucial juncture, grappling with several challenges amid the ever-changing economic landscape. One of the most significant hurdles is the inevitable increase of Telco tariffs, driven by the escalating costs of fuel and electricity. To understand the magnitude of this issue, let’s explore the current situation in the market and how these rising energy tariffs are affecting the industry.

As of the present, fuel prices have surged by a staggering 106%, and electricity prices have risen by 105% compared to January of the previous year. Energy costs have always constituted a substantial portion of operational expenses for telecom companies. With the recent hikes in fuel and electricity tariffs, this contribution has only intensified, exerting additional pressure on the industry’s financial viability. This situation is compounded by the unavailability of reliable electricity, leading to widespread load shedding. Consequently, telecom companies rely heavily on fuel to power generators which serve as a primary raw material for their operations. The reliance on fuel to compensate for energy deficiencies further elevates operational costs, putting additional strain on the Telco sector.

One of the reasons for the low ARPUs in the Pakistan market is the high prevalence of non-recharging customers. These are those customers that are availing incoming-only services without spending anything at all. Think about the people who have an active phone connection but either just make missed calls or ask you to call them instead of calling themselves. Given the high Onnet (same network) minutes in all bundles, bundle active users have no qualms in calling back in response to missed calls from acquaintances anymore. According to some estimates, up to 25% of the monthly active base of operators is non-revenue generating and has grown significantly over the last 2 years. The increase in balance validities and perpetual incoming validity has created a lucrative opportunity to continue availing basic connectivity without the need to recharge. This is one of the factors keeping the ARPUs low despite increase in spending of the high-end data active base.

A comparison with the mobile telecommunications market of India shows how our neighbor has tackled this problem. Faced with escalating costs and a fall in profitability due to the price war triggered by Reliance Jio, all operators have finally worked towards taking away loopholes from their pricing structure. As a start, all top-ups/recharges have strict validities (like the Pakistani market used to have a few years ago). Most importantly, after the end of the recharge validity there is a one-month grace period after which incoming calls also get blocked, effectively ending all forms of connectivity. The aim is to make sure that all users pay for connectivity. The pricing tariffs can be different between the operators, but the common logic is that a user only gets connectivity as long as he/she is recharging. This strategy has been effective is raising ARPUs in India and bringing viability to the business models of telecom operators there. Conversely, in the Pakistani market there are no checks on recharge validity or incoming barring leading to a quarter of subscribers continuing to avail basic free connectivity. The purpose of this comparison is to show how broken the pricing model in the Pakistan telecommunications sector is and is contributing to the unprofitability of the sector.

While structural changes are needed over the longer term that reduce reliance on energy through effective network sharing and that fix the loopholes in the tariff structure, over the short-term price increases are the immediate need to offset some of the cost increase. As energy costs continue to soar, the burden of maintaining operations and offering quality services becomes unsustainable without adjustments to tariffs. While this increase in tariffs may be unwelcome news for customers, it is a necessary step for the industry to remain viable in the long run.

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Pink eye, also known as conjunctivitis, is an eye condition characterized by inflammation of the conjunctiva, which is the clear, thin tissue that covers the white part of the eye (sclera) and lines the inside of the eyelids. The inflammation in the conjunctiva can cause the blood vessels to dilate, giving the eye a pink or reddish appearance, hence the name “pink eye.”

Pink eye can be caused by various factors, including viral infections, bacterial infections, allergies, irritants (such as smoke or chemicals), and underlying medical conditions. The treatment for pink eye depends on its cause, with viral and bacterial conjunctivitis often requiring different approaches.

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If someone in your family has a pink eye (conjunctivitis), it’s important to take precautions to prevent its spread. Here’s what you can do:

1. Isolate the affected person

Encourage the person with a pink eye to avoid close contact with others, especially in situations where there might be shared items like towels or pillows.

2. Frequent handwashing

Ensure that everyone in the family practices good hand hygiene by washing their hands with soap and water frequently, especially after coming into contact with the affected person or their belongings.

3. Avoid touching the eyes

Encourage family members to avoid touching their own eyes, as this can help prevent the spread of the infection.

4. Disinfect surfaces

Regularly clean and disinfect commonly touched surfaces like doorknobs, countertops, and bathroom fixtures to reduce the risk of contamination.

5. Separate personal items

If possible, avoid sharing personal items such as towels, pillowcases, and makeup with the infected person.

6. Follow medical advice

If the person with pink eye is under medical treatment, ensure they follow their healthcare provider’s recommendations and take prescribed medications as directed.

7. Consult a healthcare professional

If you suspect that you or another family member may have contracted pink eye, it’s essential to consult a healthcare professional for a proper diagnosis and treatment plan.

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Remember that pink eye can have various causes, including viral, bacterial, or allergic factors, so it’s crucial to determine the specific cause for appropriate treatment and prevention measures.

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