In a memo to employees, Jazz CEO Aamir Ibrahim has highlighted the negative impact tough economic conditions are having on smooth business operations. “We all have been personally impacted by the rising cost of goods and services. Jazz is not immune to this adverse economic situation. In fact, we are deeply impacted by the interest rate hike and by the sharp rise in electricity and fuel prices.”
Without mincing words, Aamir stated that “I’m elevating the level of this challenge to critical, as we embark upon making some tough but necessary decisions. This will ensure we continue to provide uninterrupted services to our 75 million customers and continue to position ourselves for growth and leadership.”
Moreover, he said, “I shall ensure we communicated frequently, openly, and honestly,” and that further details will soon be communicated clearly and transparently.
All mobile operators are facing a tough time as inflation adds to existing operational costs. While a weak rupee makes for depressing returns for international owners. Revenue growth has stagnated for almost all mobile operators as the Average Revenue Per User (ARPU) declines. Competitive pricing has always been a major issue for the operators and it has now reached the edge of sustainability.
Pakistan has one of the lowest voice and data prices in the world yet consumers are using less and less of these services due to high taxation and inflation. In this climate, it’s becoming increasingly difficult for mobile operators to create a business case for network expansion and upgradation. The focus, for now, remains on ensuring business continuity.