New SIM prices are Increased by Telenor
The recent ban on retail outlets will hit the telecom industry’s profitability, operators may take measure to protect themselves from loss. Telenor Pakistan has increased the price of its SIMs.
The network of sales channels has been reduced from 100,000 outlets to about 2,000 outlets as a result of the December 6 notification.
Anticipating a decline in sales, the industry may take various steps including an increase in SIM prices and possible layoffs, especially at call centres. The first sign of industry’s response to the restriction, Telenor increased prices for SIM Starter Pack and replacement SIM by Rs100 and Rs40 respectively.
Aamir Ibrahim, Chief Marketing Officer of Telenor Pakistan.[pull_quote_center]
The recent change in sales process has virtually shut down 99% of our points of sales. This has resulted in substantially lower sales while costs remain the same; the company had no option but to pass some of the cost on to the customers.
We hope that the government will consider the adverse impact of the decision in the longer run and support reopening of regular sales channels at the earliest.[/pull_quote_center]
Telecom is one of the heavily taxed industries, which contributed Rs117 billion to the national exchequer in 2010-11 in the form of taxes, fee and R&D support.
It is the only industry, which has reduced prices whereas all other industries have increased prices to deal with rising inflation and rupee depreciation.
The telecom sector has always kept low cellular tariffs, but it has to think about their profitability now.