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Cellphone imports dip 21pc in Feb

PAKISTAN: Cellphone imports dip 21pc in FebThe Federal Bureau of Statistics attribute declining cell phone imports to changing socioeconomic conditions following the assassination of Benazir BhuttoKarachi There has been a slowdown in import of mobile phones and a leading importer has attributed the decline to reasons like rising food inflation, increase in snatching incidents, higher sale of used phones and over 80 per cent import of lowcost cellular instruments. According to figures of Federal Bureau of Statistics (FBS), mobile phone imports plunged by 21 per cent to $66 million in Feb 2008 as compared to $84 million last year. Imports in January stood at $76 million. Total imports in JulyJan '08 fell by 10 per cent to $507 million from $565 million in the same period last year. Director and chief operating officer United Mobile Azad Lalani told Dawn that an estimated one million cellphones were sold per month ahead of assassination of Benazir Bhutto. Now the sale ranges between 800,000900,000 sets. He said that after sharp rise in food prices and rising cost of living people now think twice before purchasing a mobile. Around 8085 per cent of the cellphone sale comprises of low cost instruments ranging between Rs2,000 to Rs3,000 and its buyers are mainly from the rural and semiurban areas. Even the share of low cost phones in total imports also hovers between 8085 per cent, he said. Besides, the average sale price of cell phones has also dropped from $45 to $35 in world markets while $35 phone instrument is now priced at $31. Lalani said that the habit of changing cellphones by many users has also declined in the last few months. Besides, many people have postponed purchasing costly cellphones after worst looting incidents triggered by the murder of PPP leader Benazir Bhutto on December 27. The entry of Chinese lowcost phones (imitation of branded phones) and the availability of used phone in the markets have also hurt the sale of new phones, he added. Director public relations Mobilink Omar Manzur said that the mobile phone penetration in urban areas has crossed over 90 per cent and now most of the demand for new connections is coming from the rural areas. There might be decline in overall growth this year as compared to 2007 but the overall users in the country has been increasing. He added that many new cellphones, when sold, usually find their way into the rural areas. In Feb 2008, it stood at 50.76 per cent as compared to 48.96 per cent in January and 48.61 per cent in December 2007. Out of the total 160 million population the total cellphone users in the country stands at 80.3 million till February. Of these Mobilink has 31.3 million subscribers followed by Ufone 16.84 million, Telenor 16.1 million, Warid 13.6 million, Paktel 2.1 million and Instaphone 320,238.