Recent news about decline in profit of PTCL has concerned many investors and shareholders. Will Ufone, mobile phone arm of PTCL, be able to fight back and reverse this trend? In this post I present a snapshot of Ufone. I’ll discuss its strengths, weaknesses, threats to its current position and its future prospects.
Conclusion:Lots of potential if Ufone and its parent get its act together and execute well on their expansion and competitive plan. Read on to understand the basis for this conclusion.
About Ufone
Ufone (official name: PTML) is a PTCL company and Etisalat of UAE owns 26% of PTCL. For more information about Etisalat I recommend reading this investment report from Shuaa. This report also includes details of how PTCL was privatised earlier this year in April. Please note: PTCL does not report detailed earnings results for Ufone. Therefore we need to look at PTCL results as a whole.
Highlights of Recent Earning Report
The annual 2005-2006 and first quarter 2006-2007 financial reports are available at ptcl website.
For the first quarter 2006-07 ending Ocotber 30, 2006 the profit before tax was Rs.7.7 billion with net Profit of Rs.5.1 billion, which is 7% lower than that of the corresponding quarter of last year. For the full year 2005-06 after tax profit was Rs 20.78 billion which was 22% less than previous year’s profit.
Dividend of Rs 3 per share was awarded which corresponds to an impressive dividend yield of 12.3% !
PTML (Ufone) – a wholly-owned subsidiary has improved its financial performance compared to the first quarter of last year. It added over 1.37 million new subscribers during July to September 2006 quarter, making its total subscriber base in excess of 7.52 million as of end September 2006. Ufone earned a net profit of Rs.666 million compared to Rs.389 million recorded for the same period last year.
Network and infrastructure expansion was carried out in 2006 progress and more is being planned to deploy WLL, Wimax etc. In the largest network expansion deal of Pakistan, PTCL signed up Huawei for a US$550 milliondeal which will allow Ufone to double its capacity. Financial reporting standards have also been improved. Details are in the directors report at PTCL website. Note that analysts expect Ufone to be an increasingly major contributor to PTCL earnings. This indicates the growth in wireless sector and the competition in fixed-line and other sectors.
Weaknesses and Threats
* Increased Competition from new investors (Mobile firms such as Telenor, WLL operators)
* Poor service (see more on service quality and PTA interjections below)
* Network capacity and quality
* Management Style and approach
How to Invest
Through Pakistan mutual fund companies such as Abamco who offer funds with PTCL as holdings. For example: UTP-ISF fund has about 10% PTCL stock. You can buy stock directly as well but the Pakistan stock market is not without its risk. In 2005 the Pakistan stock market crashed amid rumours of scandals which are now under investigation (see this article from DAWN, read more here and take a look at the website of Securities and Exchange Commission of Pakistan).
Here is a professional report (by Imtiaz Gadar – Merril Lynch, see the full pdf here which is from Sep 2006) about Ufone and PTCL (refrerred to as PakTel):
“Having traded down materially during 1H06, PakTel now offers an attractive yield and substantial upside to our DCF valuation of Rs60. PakTel is marked down for its low earnings growth outlook from increasing wage costs and fixed line deregulation.
High yield may not be sustainable if new strategic shareholder (Etisalat) decides to invest more heavily in wireless. Earnings transparency is below average as mobile earnings are not disclosed to the market. Main positives are potential for long term cost cutting, and good secular growth prospects in
Wireless and internet given low teledensity (3.5%) and high GDP growth (7%).
Clear direction from new owners, management stability and dividend payout certainty are needed to reignite positive momentum. Valuation score have improved with the continued slide in share price and we now rate the stock a Buy.”
For more about Quality Of Service Issues at Ufone
Pakistan Telecommunication Authority (PTA) has announced that it will conduct a countrywide Quality of Service (QoS) survey of all cellular mobile operators in the next two to three months to determine the service quality being offered by mobile operators in the wake of consumer complaints against their service. The Authority has taken strong exception to the problems being faced by cellphone users in the shape of severe congestion, call connection errors, frequent call drops and excessive and unjustified billing due to false messaging.
In April 2005 PTA had issued a show-cause notice to Ufone for providing low quality service and initiated proceedings against it. The PTA said on Monday that the notice to the Ufone was served on the basis of the results of the quality of service (QoS) conducted recently. The PTA has given 30 days to the operator to submit the reply. The proceedings may lead towards the appointment of an administrator or levy of fine up to Rs 350 million, and it can be suspension or termination of licence under section 23 of Pakistan Telecom (Re-organisation) Act 1996.
88 comments
Comments feed for this article
February 12, 2007 at 8:57 am
Farrukh Ansari
Well write your reviews on Ufone whether you like or dislike this service. Besides Ufone you can rate and write reviews on thousands of other products and services available in Pakistan.
You can write on Ufone here:
http://www.madyee.com/product_reviews/75137/1/Ufone
April 13, 2007 at 4:55 am
Abdul Shakoor Tehrazim
The Director (Ufone)
Pakistan Mobile Communications (Pvt.) Ltd.
Subject: Purchase of Already Used Ufone Calling Card, worth of Rs. 500/-
Dear Sir,
It is to state that I am a user of Ufone since long and have the connection with Mobile number 0333-4878731. Yesterday, the April 11, 2007 at about 22.00 hours I bought a Ufone scratch card from my nearby shop at Faisal Town. When I entered the card, the reply was surprising for me that my dialed No is already used.
Sir, when I bought the card its scratch numbers was not visible and in this case who is going to be responsible, the shopkeeper, Ufone or me……..?
Please note that this is the second chance of happening the same with me but now I can not afford to purchase another Ufone card, and if, my application is not responded properly “I WILL PREFER TO HAVE A CONNECTION FROM ANOTHER MOBILE COMPANY”
In this case your good self is requested to personally intervene into the matter and resolve my problem at your earliest.
If you like to do any favor for me or reply to me please reply on my e-mail address or my Mob.No. My e-mail is tehrazim@descon-mirani.com.pk
Thank you,
Yours truly,
(Abud Shakoor Tehrazim)
Mobile No.0333-4878731
April 16, 2007 at 9:12 am
Shuja Khan
yep these used fone card are really a problem these days. dont know why they are doing this. thats why i would prefer “easy load” over loading a scratch card.
May 1, 2007 at 4:05 am
Rahat Ali
If you have any scratch card complaint, Don’t worry! Just visit Ufone service centre. They will replace your card and your problem will be resolved.
Replacement procedure is no doubt a lengthy one and they take 24 hours. But you will get a new scratch card of the same denomination next day.
Ufone has got the solution of every problem of U
May 3, 2007 at 1:33 am
ASAD MB
UFONE’S service, to be precise thier so called SYSTEM, which has been updating since the stone age is totally pathetic. They keep on exceeding the billing limits of 100% and then block your line, besides they have been billing in excess too. I’m waiting for my monthly bill to come. Looking forward to use the MNP service, really dissapointed by the U-fool’s services.
June 1, 2007 at 3:09 am
muhmmad saleem
The Director (Ufone)
Pakistan Mobile Communications (Pvt.) Ltd
Subject: Purchased of new sim (easy load)
Dear Sir,
i bought the sim in to gujranwala office near din plaza.where any person no tell me information easy load sim,
my shop in trust plaza near kasb bank gujranwala.
my shop name SALEEM BROTHERS ADVERTISER.
CELL#0300-6499740,0301-8649974
June 13, 2007 at 5:39 am
MUHAMMAD IMRAN KHAN
SIR,
KLY SEND THE INFORMATION ABOUT THE WEB SIDE OF UFONEGSM.NET. I CREAT THE E.MAIL ADDRESS OIN THIS SIADE MY MOBILE# 03336831687. THK IMRAN
June 20, 2007 at 2:51 am
Hasnain
I am doing a project on ufone’s brand . Any one who has any study available on this brand please help me out here 🙂
September 25, 2009 at 4:07 am
princes
whichh qus
i can help u
i am in karachi in gulsansad b no a 38
June 28, 2007 at 3:04 pm
khurshid wali
i want abeauty sim card(mobile) number such as (2222333)(1112220)(1234567)(4455660)(3330444) etc
July 2, 2007 at 8:46 pm
State of Telecom Industry in Pakistan » Competitive Trends: Mobile Phone Advertisements
[…] The pretty picture these ads paint is separated from the real world where poor cellular service has led to PTA to announce that punitive action will be taken if problems persist (more at the end of this previous post). […]
October 4, 2007 at 1:00 pm
minahil
itz best website for free msging
October 17, 2007 at 12:39 am
Ahmad wahab
I want a beutiful ufone num sach as (0333-1112223)
(0333-1122330) (0333-7779995) (0333-1122143)etc
or may be in 0334 or 0332 code.
December 4, 2007 at 1:55 am
Asim Mumtaz
i want my ufone sim puk code number the number is 03336558368
December 4, 2007 at 1:57 am
Asim Mumtaz
i want my ufone sim puk code number the number is 03336558368
please tell me soultion
January 4, 2008 at 11:17 am
rashid ali
ther is my no# hase been the not puk pel sand puk th thes 03343247867
January 8, 2008 at 10:49 am
AYAZ AHMAD
I have no receivd My Postpaid bill connection ufone no,03336459597
September 25, 2009 at 4:09 am
princes
ok we will see
January 8, 2008 at 10:54 am
AYAZ AHMAD
I HAVE NO RECEIED MY BILL OF POSTPAID UFONE CONNECTION NO,0333-6459799 FOR THE MOINTH OF DECEMBER.
February 1, 2008 at 12:50 am
adnan ahmed qureshi
The Director (Ufone)
Pakistan Mobile Communications (Pvt.) Ltd.
Subject: information requried,
sir,
i want to know about your planings in norhtern areas gilgit pakistan,i am intresting to become a business partner(franchiese)of ufone in northern areas gilgit, we have a vast experience in marketing feild,
waiting for your reply,
thanks,
adnan ahmed,
03468488888
September 25, 2009 at 4:10 am
princes
i will see for ur job
February 7, 2008 at 6:21 am
ghulam murtaza
iwant my paktel sim puk code number the number is 0304-7556153
February 10, 2008 at 7:36 am
kamran
i want my ufone sim puk code number the number is 03348552057
February 24, 2008 at 5:11 am
kuni
OLAMBA dala gano OLAMBA@!!!!
March 4, 2008 at 11:59 pm
Qudrat kundi
Me apne namber ke malkeyat ke bare me jan na chahta hø.My no 03339984869.Pls msg me.
March 7, 2008 at 2:14 am
MUKARAMALIRIZVI
I WANT TO KNOW ABOUT 3G , BRAND BAND SERVICE CONNECTION WILL BE STARTED IN PAKISTAN FOR U FONE.HOWEVER THE PTCL HAS BEEN STARTED THE DSL SYSTEM.DO YOU LIKE WHEN IT IS POSSIBLE IN PAKISTAN.I HOPE YOU WILL REPLY SOON.
June 3, 2008 at 7:29 pm
Ghulam Muhiuddin
I have baught Rs. 100 ufon card when i enter the code into phone only Rs. 67 added. Rs. 33 gone to the pocket of Ufone.
Warid give Rs. 100 balance on Rs. 100 card no any hidden cost or charges and tell through sms after every call.
To call help line of ufone 333 will charge lot of charges per minute and i tried many time to talk the representative on this help line but after waiting 5 to 10 minutes and listening adds i have drop the call. You can only call help line if you want to listen ufone add at very nominal charges.
Every time when i add balance if i will not use in couple of days the balance automatically waive off day by day and 0 at last.
Sms web software mostly not working.
Selling important number on bids and who do not participate in bid take only garbage.
Very low quality service mostly network busy
poor management.
A survey about ufone will help out to determine how many customer dissatisfied with this company
June 8, 2008 at 4:17 pm
asif
dear ufone frenshize par apnay jo larkyan rakhi hain wo zyada tar prost hain esa kyun hai kya apko koi achay khanadan ki larkyan nahi milti hain? ya larkay nahihain kya shaher mein ? wo to i thnk 5 class say zyada nahi parhi hain or apkay emply fone fone ki demo or ARD sim say PCO chala rahay hain un ka koi opperation nahi hota kya ? bohat afsoos ki bat hai.
June 27, 2008 at 11:15 pm
Sohail
Hello every body i am sohail & i want a U fone 0333 sim if if any have so plz contact me on this no 03349193735
July 1, 2008 at 10:28 pm
Naveed ul hassan
i want my ufone sim puk code number the number is 03349786620
July 2, 2008 at 5:55 am
Naveed ul hassan
i want to unlock my sim please tell me my unlock puk code 03349786620
July 9, 2008 at 5:02 am
Rizwan Ahmed
i wana ufone sim so plz reply
i like ufone company and warid
and hate other
MY cell no is 03335387969
August 21, 2008 at 11:58 am
Junaid
how i can find my sim (mobile) no by code?
September 11, 2008 at 5:54 am
bilal
ufon ki servic sub se behtaren he.i love ufon.i m using it,sinc i got cell fon,even i use other .bt U IS BEST EVER N EVE
September 17, 2008 at 12:55 am
Rehmat ullah Rajper
Hi i am Rehmat ullah Rajper
4rm naushahro feroz(padidan)
i want ufone
my best network is ufone
ufone wo vahid network hai jo sab sy sasti call deta hai
ufone wo vahid network hai ramadan package mein 7 hour ka talk time sirf 6 rupy mein deta hai (es package ko jari rakhna chahiye)
September 20, 2008 at 1:27 pm
jawad kazmi
i want to know my ufone puk code number my number is 03349586899
September 20, 2008 at 1:31 pm
jawad kazmi
kindly urgently mail me on my yahoo id.i wanna know my sim puk code number……..03349586899
September 30, 2008 at 1:48 pm
Muhammad Pervez
Unfortunately I block my SIM PIN Code. It is asking for PUK Code now. So plzzzzzzz send me the PUK and PIN Both codes of my no. 0331-7515995 Its relly urgent Im losing very important things on having this problem..Plz send my PIN & PUK Codes of my no. 0331-7515995…….Thank U
November 2, 2008 at 1:33 pm
kamran
i want my ufone sim puk code number the number is 03335252860
November 6, 2008 at 5:12 am
AFFAN
i want to unlock my sim please tell me my unlock puk code 03349822696
November 6, 2008 at 9:53 am
mansoor-ul-islam
i want my ufone sim puk code please tell me my ufone puk code 03332636439
November 15, 2008 at 12:19 am
farukh shahzad
i want my sim puk code no is 321-5350776
November 21, 2008 at 2:18 am
ahsan shah
plz puk cod 03346032364
November 23, 2008 at 7:54 am
Nouman Iftikhar
Salam!
My Ufone # is 03326762027. Plz send me my PUK code.
December 6, 2008 at 2:08 pm
Muhammad Rizwaan uddin
The Director (Ufone)
Pakistan Mobile Communications (Pvt.) Ltd
Subject: WRONG SITE SELECTION FOR UFONE TOWER
Sir
This is Rizwaan from Chitral,few day back ufone team was here in chitral for site selection and intallation for towers. site id:2893 Gumbus broz Chitral, a wrong site was selected which is belong to afghan mehajir married here.He dont have any Pakistani Nationality, instead of very feasible site of mine which is only 25 meters from selected site. Dear Sir if you are really faithful to your company kindly resurvey of the area and site selected.just check my side, its more feasible and exposed from all areas around. One think more, here some high contacts and amount is involved. I hope you kindly look and check it out, you can check it on google earth even. i also hope i get justice from you. Thankyou and waiting for reply
December 31, 2008 at 1:41 pm
Tahir Javed
i want my ufone sim puk code please tell me my ufone puk code 0332-6648710
January 18, 2009 at 3:42 am
tahir
plz give me puk coad this number 03348634401 plz plz
January 21, 2009 at 10:43 am
usman
plz all those Who want Puk CODE plz call on 333 they will tell u puck code after verification,or visit ufone service center or franchise, becoz puck is issed to original cutomer
January 27, 2009 at 5:23 am
sara
thank you
January 30, 2009 at 2:43 pm
Phool.
Salam.to.all
February 3, 2009 at 10:32 am
Abdul Majid
plz……. i want to my sim puk cod my number 03345115972 and my 2th Ufone number 03345118475.but my first sim has not my name my sim ,other name shazia plz send me puk cod my email adrees majid_layyah@yahoo.com i am waitting.
March 4, 2009 at 1:24 pm
Ramzan
plz……. i want to my sim puk cod my number 0333-8054873. Plz tell me at my 2nd ufone no that is 0333-6726353.
March 10, 2009 at 5:54 am
Wajaht Ali
i went to service centre Quetta zarghoon road, first you have to clear your security from under wear to socks ,further more only few seats are there. you to wait while standing and will be return with an unsatisfied remarks. my number is on puk code from 8 march. i tried for thosnd times fromm different numbars but the help line 333 replies with ” chand second k baad contact karay” then “you have exceed the max number to contact help line”. waht is this a joke or to tease the custumers
March 12, 2009 at 5:20 pm
Zaeem
hi homies !!!
Actually i need to know my ufone puk code plz plz someone plz tell me my numb is 03312212830.
and plzzz mail me or msg me on my numb thnx a lot !!!!!
May 25, 2009 at 1:48 pm
Rehmat ullah Rajper
I want to ufone is my best Network
kiyon ke (Ufone It’s All About U)
Rehmat ullah Rajper 03333644260
June 10, 2009 at 3:13 am
Muhammad Jan
Subject: signal problem!
our village is approximately 15 Km away from peshawar and situated at Khazana Sugar Mills Road and we face signal problem? who belef? in the outskirt of peshawar and not recieving signal??? for that reason i have to change my dearest number and start using other operator network. kindly do it first, either i dont belef ufone is tear free network just seems fake to me that all whtever they say!!!
any can hear to me?? for ufon information there have already each tower of jazz, telenor and zong. and we are waiting for Ufon
muhammad jan
June 10, 2009 at 3:18 am
Falak Niaz
an easy package
as other network going to launch cheap package, but ufon is not moving. til how we should wait
Falakl
June 19, 2009 at 4:59 pm
muhammad irfan
my number is 0333 7189185
please send me my puk code thanks
July 26, 2009 at 1:11 pm
Hassaan Iqbal
please send puk code to my email address:
hassaanid2007@yahoo.com
my number is 0333-6981071
August 2, 2009 at 11:09 am
nasir hameed
please send me my puk pin at my e mail
my number is 03349845570
August 13, 2009 at 5:18 am
mohammad asif
03343988047–thats my ufone toppop no. and i want to activate IR on it ….
September 12, 2009 at 3:19 am
usman
sir i want to get my puck code.my no. is03343451224
September 12, 2009 at 3:21 am
usman
sir please give me my puck code number.my number is 03343451224
September 16, 2009 at 4:44 am
umair
dear sir, i want my ufone pukcode number. i hav also a sim pad. but pukcode is not working. may be pukcode is invalid. plss send me pukcode numbr. plsss sandfuck code number on my mail add. umair_khan565@yahoo.com my number is 03317009503
September 19, 2009 at 10:41 pm
Mansoor
Sir, I was asked customer service relation officer about my PUK code, every time they give me the number, but no any code was applied. Its will my last to Enter Code.
Please send me a perfect code of my number 03343974991 at soorie@live.com.
Thanks a Lot
September 25, 2009 at 4:03 am
princes
i am very happy to buy this mobile but tell me price of this mobile
October 10, 2009 at 8:43 am
imran
pls tell me about my ufone puk code my number is 03346837142
October 13, 2009 at 10:58 pm
ejaz ali
i wants buy a postpad number pls send me a detail my email address regarding my own choice number.
November 28, 2009 at 9:09 am
maria
How i can know my security code no my # is 03322398687
January 8, 2010 at 11:06 am
osama
aslam o alaikum
sir this number (03324310699)is abusing me nd disturbing me on my ufone number plz take action
jazakallah
contact me at
03444468822
February 5, 2010 at 11:11 pm
abdul rehan
puk code. please send on mu number 03333879184
February 5, 2010 at 11:12 pm
abdul rehan
puk code. on 03333879184
February 6, 2010 at 5:20 am
Ufone GSM - Tafreeh Mela - Pakistani Urdu Forum | urdu shayari |Urdu Novel | Urdu Islam
[…] List of mobile phone companies in Pakistan [edit] Footnotes ^ Ufone: Profile and Outlook – State of Telecom Industry in Pakistan – Sunday, November 12th, 2006 […]
February 7, 2010 at 10:02 am
mansoor ahmed
i want my ufone sim puk code number the number is 03333214404
please tell me soultion
March 23, 2010 at 3:18 pm
ATHER AMIR
kindly tell me the puk1 code of my ufone sim 03326360275. It has been blocked and asks to enter puk1 code.
July 2, 2010 at 9:46 am
junaid
I want the detail of this number 03326933678 ….. please send me detail as soon as possible …. please its a request…..
July 2, 2010 at 9:52 am
junaid
I want the detail of this number 03326933678 ….. please send me detail as soon as possible …. please its a request…..
July 14, 2010 at 12:23 am
ali mir
The director(ufone)
pak mobile comm. (ptv.) Ltd
sub: request for ufone tower
Dear sir,
I am basically the residential of bagrote the nearest and papulated town of gilgit , which comprises of 11 villages . The total population is around 20,000. we still have no communication facilities ,even we dont have the PTCL communication . i presently liveing in karachi . we ha 1500 student and around 2500 eployers out side the town ,which obiously need communication. If sir you respond to our request we can provide around 4000 subsecribers to you.
I will be waiting for your response
your obedintly
ali mir
cell 0346-3102064
July 25, 2010 at 12:19 pm
Diya
my number is of warid 0321-8615226, i want to switch on Ufone, please tell me is it possible?? kindly guide me how can I get rid of warid network, having the same number
August 3, 2010 at 12:39 pm
Junaid
yes u can have the same number on ufone by just mnp.
Mobile Number Portability. for further details contact junaidj888@hotmail.com
September 22, 2010 at 1:14 pm
mesbahul mannan
I lost my puk code and my no. is 03132737140 (converted zong)
October 12, 2010 at 4:03 am
Sohni Kuddi
I lost my puk code and my no. is +923342508653
February 3, 2011 at 2:21 pm
honey
hi ji kaise ho ap
February 3, 2011 at 2:20 pm
honey
hi ji
June 1, 2011 at 1:35 pm
Mohsin Raza
Ufone u are the best!
It’s all about u!
November 29, 2012 at 7:45 am
free cell phone usage
I was very happy to uncover this page. I need to
to thank you for ones time for this fantastic read!
! I definitely enjoyed every little bit of it and i also have
you saved as a favorite to check out new information on your blog.
December 20, 2012 at 7:37 am
Ghulam Mustafa
Ufone is a very good compney we proud because this is Pakistani compney but we need to establish in Internet wi fi frailties Thanks
March 10, 2016 at 9:16 am
Zafar Iqbal
Dear Sir, today around 12.00 I went one of your franchise located at G-9 Markaz, Islamabad for the change of my post pay phone into pree pay service. Unfortunately I found the attitude of the staff of the said franchise is very casual and disgusting toward their customers. They charge me Rs.850/ for clearance of out standing bill upto that moment and charged extra Rs.200 for conversion charges. After one hour processing and waisting my time I was told the system is down right now. I was advised to go and wait for almost 1 hour for the text message which confirm me that the job is done. After 5 hour I checked from U Customer Services 111-333-100 and I was informed that there is no request is forward for the required change. Only Rs. 850/- payment is reflecting for the payment of bill.
Therefore it is to request that the matter may taken settled and the said franchise should issue a notice to behave and deal the customer properly and they should not misguide the customers.
Regards
Phone No. 3335119476