Cellular subscriptions data indicates the fastest growth in Zong, if it continues like this, Zong is likely to become market leader by 2025 or even before.
We have analyzed the cellular subscriptions data from 2003-04 to March 2017, there were 5 major cellular networks in the list, Zong, Mobilink, Telenor, Warid and Ufone. From January onwards Warid was acquired by Mobilink and its consumer base was added in Mobilink.
Currently Mobilink is the market leader in cellular subscriptions which has 37.71 percent market share. It is important to note that Mobilink increased it market share by an acquisition, when it bought Warid Telecom in the beginning of Jan, 2017. Before this acquisition Mobilink had a market share of 30.22 percent.
In 2003-04 Mobilink had a market share of 64% which continuously plunged to 27.70% in 2013-14 which was the lowest level in Mobilink’s history. In the following 3 years Mobilink didn’t make any significant progress and reached 30.22% of market share just before the acquisition.
In fact, Mobilink was continuously losing the game before this acquisition which saved mobilink from becoming the runner up in next couple of years.
Telenor is currently a runner up in market share holding 28.87% in March, 2017. In cellular subscriptions Telenor Pakistan performed really well with consistent growth over time. Telenor had 6.54% market share in 2004-05 which continued to grow until it came to 2nd position in 2017.
TELENOR SAW 341.20% GROWTH SO FAR SINCE IT STARTED
Ufone had market share 15.95% in 2003-04 which was increasing though in the next few years till 2008-09. Ufone was unable to cope with market demand and consumer satisfaction and started to decline from 2008-09 onwards. Ufone had 21.20% market share in 2008-09 but after that a nightmare happened. Market share continued to fall sharply and reached its lowest level during one and half decade of business, Ufone currently holds 13.28% market share.
Since Warid was acquired by Mobilink and merged its market share with Mobilink after Jan, 2017, but Warid started with 3.98% market share in 2004-05 and reached its maximum position holding 18.96% share in 2008-09. After this performance Warid also performed bad in the market and started dropping its share till the acquisition. Before acquisition Warid was only holding 7.53% market share. This was one of the main reasons why Warid sold out to Mobilink.
Since its launch Zong outperformed every single experienced market giant, Zong was the only company which came out of the dip. Actually Zong started very well with 9.36% market share in 2003-04 but suddenly Zong saw huge crunch and dropped down to 1.62% in 2006-07 that was a huge blow to Zong. But Zong reportedly focused more on building Data Network during this time which gave it another edge to be the one and only Market leader in 3G and 4G services.
After this sharp decline Zong recovered from the loss quickly and reached 20.13% market share with strong growth overtime.
ZONG SAW 1141.19% GROWTH IN JUST TEN YEARS
Zong is currently a market leader in 3G/4G services with the largest 4G network in Pakistan. If Zong continues to perform the way it performed in the last 10 years then becoming market leader in cellular subscriptions is not a dream for Zong.
As the cellular market in Pakistan has become terribly saturated, one cannot expect overnight growth because the competition is becoming more and more intensive. If Zong adopts aggressive consumer acquisition strategy or able to acquire any other cellular network then you will see it as the market leader by 2025.