The development of the number of Astelit subscribers continues to be impressive. Since the second quarter of 2007, Astelit has chalked up the highest share of total customer growth per quarter. The most recent figures for the third quarter of 2008 show that Astelit claimed more than 60% of the market growth for itself and now has a market share of 19%. During this period, Astelit continued to push forward with network expansion and reported 93.7% coverage of the population at the end of 2008.   But this fast move onto the market by means of low prices also has its dark side. To begin with, Astelit required high investments from the joint venture partners Turkcell and the ­Ukrainian SCM Holding to cover the costs of the fast network expan­sion. ­Moreover, operating business, in contrast to the two largest providers Kyivstar and MTS, is not profitable. As of today, the company has accumulated high losses, and Turkcell and SCM have contributed a total of USD 550 million in fresh capital. The latest figures from the second quarter of 2008 still show a loss, but positive operating results (EBITDA) have at least been achieved since the end of 2007.   But if it is to become profitable in the long run, Astelit will have to re-examine its strategy, especially with respect to the acquisition of high-value customers, as well as its cost management and operational excellence.   

Telenor Pakistan focuses on high quality and customer orientation   

The Pakistani mobile network sector is characterized by intense competition. Even in 2005, when Telenor entered the Pakistani market, the average ARPU fell below five US dollars. Confronted with this kind of market environment, Telenor had to face the challenge of being the fifth provider to enter this hard-fought market dominated by established providers. Telenor’s strategic focus from the very beginning was on the fast and comprehensive creation of the network. Parallel to this was the acquisition of a license by Warid Telekom, making the market entry that much more difficult.

So Telenor’s priority was to keep the lead-in time from the awarding of the license to the market launch as short as possible while still securing a high level of network coverage and quality. Since it had the fastest-growing network in Pakistan, Telenor was able to penetrate into new regions immediately after its market launch. For example, service was provided to regions in the “Northern Area” and “Azad Jammu and Kashmir”, which had previously lacked coverage, towards the end of 2005.