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Paktel
Paktel
Paktel
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Paktel (Urdu: پاکٹل) was a cellular network operator in Pakistan. It was granted a license to carry out cellular phone services in Pakistan and set up by Cable & Wireless. It carried out AMPS services until 2004 when the company switched to GSM technology.

Key Information

Paktel offered only mobile telephony service to its 2 million subscriber base. As of 2007, Paktel was ranked the fifth mobile player of Pakistani market owing to low subscriber base and market share.[2] After the completion of its acquisition by China Mobile, Paktel was rebranded as Zong Pakistan on April 1, 2008.

History

[edit]

Cable & Wireless and its local partner Hasan Associates (a major local team was consisting on Farooq Hasan, R A Zuberi, Shahid Mahmud, Syed Ahmed Ali, and Qazi Abdul Wahid & Dewan) launched the commercial service Paktel in 1990. Paktel was granted a license in early 1990 to operate a cellular telephone network throughout Pakistan. It was the first company granted a free license to carry out cellular phone services in Pakistan. It carried out AMPS services until 2004.[citation needed]

The Paktel Mediation and Billing System was developed by Syed Ahmed Ali, Nadeem Usmani, Wasay Farooqi, and Ali Korani. It was first mediation software in the region that had been developed locally, and also the first cellular billing system for the region. Millicom-owned Instaphone merged as its competitor in the late 1990s and began to dominate the market. With the launch of Mobilink and its rapid success in 1998, both Instaphone and Paktel floundered and lost their dominant market share. It was followed by the acquisition of Cable & Wireless owned Paktel by Millicom, the majority owners of Instaphone.[citation needed]

In November 2000, Millicom acquired a 98.9% equity interest in Paktel. Millicom installed a new management team headed by John Tumelty, former CEO of Instaphone, and Chief financial officer David Ordman.[citation needed]

In April 2001, Paktel launched prepaid services under the brand Tango. The manager of this brand was Amees Ahmad.[3]

In October 2002, Paktel was granted a modification to its license, allowing it to operate a GSM based network and the Frequency Allocation Board of Pakistan thereby awarded the necessary frequencies. Paktel was awarded additional 1800 MHz spectrum, increasing total spectrum for GSM network from 10 MHz to 13.6 MHz. After obtaining frequencies Paktel launched GSM network in October 2004.[citation needed]

On October 23, 2004, Paktel agreed with Pakistan Telecommunication Authority to launch GSM network with immediate effect and renew their license for 15 years from October 23, 2004 for a license fee of $291,000,000.[4] This agreement was signed by the two parties on October 25, 2004. Paktel and the PTA agreed delayed payment terms under which 50% of the license fee will be paid in installments over the first three years of the license. The second 50% of the license fee will be payable in ten yearly payments from 2008 to 2017.[citation needed]

On March 31, 2005, Paktel held approximately 340,000 GSM subscribers and its network comprised 300 cell sites, covering about 45% of the population. By November 2005, Paktel had 1 million customer base and a market share of 9%, with subscriber count increasing at a rate of 100,000 per month.[5]

In November 2006, Millicom announced that it had decided to exit the Pakistani market. Pakistani authorities had refused to delay payment of a $29 million licence installment and had not given Paktel permanent access to part of the frequency spectrum. Announcing its pullout, Millicom said it decided against making significant investments in Pakistan because of tough market conditions. It had already sold Instaphone to a local telecom company Arfeen Group in October 2005 and was looking for potential buyers for Paktel.

Initially Kuwait based the then MTC showed an interest for buy-out.[2] But it was the China Mobile who won the bid.[6][7]

Paktel was rebranded to Zong

On January 22, 2007, Millicom International Cellular S.A. stated that it would sell its 88.86 percent stake in Paktel to China Mobile for $284 million, which includes the repayment of intercompany debt.[8] The sale implies an enterprise value for Paktel of $460 million, Millicom said in its press release. Merrill Lynch advised China Mobile on the transaction.

On 4 May 2007, Paktel Limited was renamed to China Mobile Pakistan.[9] On May 16, 2007 China Mobile announced that it had increased its stake in CMPak to 100%.[10]

China Mobile Pakistan continued to operator under Paktel brand until March 31, 2007. After acquisition, China Mobile Pakistan invested more than US$700 million in the telecom sector in Pakistan and US$800 million were further invested by the end of year 2008.

Pakistan Telecommunication Authority said that it might resolve the frequency issue with China Mobile, as it was one of the main reason for pullout by Millicom International Cellular S.A. According to the statistics from the Pakistan Telecommunication Authority, Paktel had 2.145 million customers at the end of February 2008.[1]

On April 1, 2008, Paktel was rebranded to Zong. China Mobile Pakistan organised a launch event on April 5.[1]

Network

[edit]

Paktel's entire network that included network base stations, GSM core, SMS, microwave links, IT support, and transmission towers was based on GSM network infrastructure from ZTE.[5] ZTE also provided Paktel consumers with missed call and welcome messages features at that time.[5]

Radio frequency

[edit]
Frequencies used by Paktel
Frequency Protocol Class
900 MHz
GSM
2G
1800 MHz
GSM
2G

Number scheming

[edit]

Paktel used the following numbering schemes:

Technology Scheme
APMS later switched to GSM
 +92 303 N1N2N3N4N5N6N7
GSM only
 +92 304 N1N2N3N4N5N6N7

Where, 92 is the ISD code for Pakistan and is required when dialling outside the country, 303 and 304 were prefixes for Paktel once AMPS and GSM customers respectively allocated by Pakistan Telecommunication Authority. Omitting +92 would require 0 instead to represent local call, hence 0303 and 0304 were the general prefixes and N1N2N3N4N5N6N7 was the subscriber number. After being rebranded as Zong, the code was changed to 031x whereas 0303 and 0304 were taken over by Mobilink.[11]

Marketing

[edit]
Paktel identity: Because there's only one heart – Dil to aik hai

Paktel offered prepaid and postpaid plans. It was initially offering only postpaid services with Rs. 5000/- as initial security deposit. The call data was used to be stored on magnetic tapes, sent to the United Kingdom for printing and bills were then dispatched to the customers after a delay of 45 days. This ensued in non-payments from many defaulters who fled after receiving large bills. The call rate was charged to both the caller and the receiver alike. In April 2001, the prepaid brand Tango was launched under the management of Amees Ahmad.[3]

Paktel had customer service centres in major cities and country-wide network of franchises further backed by retail channels.

Paktel was the first company to waive off national roaming and incoming calls charges to compete with the rival Mobilink and Ufone. Later it uncovered another offer, the country's first offer of its kind – free credit on receiving incoming calls per minute basis. It came up with the slogan Call Suno Balance Barhao; Baqi Sab Bhool Jao (lit. Listen to the call increase your credit; forget the rest – Urdu: کال سنو بیلنس بڑھاؤ، باقی سب بھول جاؤ) RED Communication Arts. Paktel – Call Suno Balance Barhao. Karachi: Paktel.

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Paktel

View on Grokipedia
from Grokipedia
Paktel (: پاکٹل) was a pioneering cellular in , established in 1990 as one of the country's first two wireless telephony providers, initially under the ownership of Cable & Wireless. It launched services using the analog Advanced Mobile Phone Service (AMPS) technology, marking the beginning of mobile telecommunications in the nation. Originally granted a free license to operate nationwide cellular services, Paktel quickly expanded its coverage but faced challenges in adapting to the digital era, including a delayed shift to technology announced in 2003 with a $150 million to reach over 150 cities. By 2000, International Cellular acquired a 98.6% stake from Cable & Wireless, positioning Paktel as a key player in Pakistan's growing telecom market, though it struggled with against competitors like Mobilink. As the fifth-largest operator by 2007 with approximately 1.5 million subscribers—a 62% increase from the previous year—Paktel was nonetheless operating at a loss amid intense competition. In January 2007, Communications Corporation announced its first overseas acquisition, purchasing 88.86% of Paktel from for $284 million (enterprise value of $460 million), completing the full takeover by May. Following the acquisition, Paktel was rebranded as Zong in 2008, investing over $700 million to modernize infrastructure and expand services, effectively ending the Paktel brand while continuing its legacy in Pakistan's telecom sector.

Corporate History

Founding and Early Operations

Paktel was established in 1990 by the British telecommunications firm Cable & Wireless as one of Pakistan's first cellular mobile operators. The company was formed to provide telephony services in a market previously dominated by fixed-line infrastructure under government control. In 1990, the awarded Paktel a 15-year to operate a nationwide cellular , sharing exclusivity with competitor Instaphone and marking the introduction of private-sector mobile services without initial licensing fees. This authorization enabled Paktel to deploy infrastructure for analog-based mobile communications across the country. Paktel launched commercial operations in November 1990, utilizing (AMPS) technology for voice calls, with initial coverage concentrated in key urban areas including , , and . The rollout introduced basic mobile voice services to Pakistani consumers for the first time, targeting business users and affluent individuals in these cities. Early subscriber growth faced substantial hurdles due to the high cost of equipment—handsets priced in the thousands of dollars—and call rates, alongside constrained network capacity in nascent infrastructure. These factors limited adoption, resulting in a modest base; total mobile subscribers across Paktel and Instaphone reached about 80,000 by 1991, reflecting the challenges of penetrating a price-sensitive market. Despite this, Paktel's operations laid the groundwork for mobile telephony's expansion in .

Ownership Transitions

In November 2000, International Cellular acquired a 98.6% stake in Paktel from Cable & Wireless for an undisclosed amount, introducing substantial international investment into the Pakistani mobile operator. Under 's ownership, Paktel faced significant regulatory challenges in , including delays in obtaining approvals for network modernization. These hurdles culminated in legal action against the (PTA) in September 2004 to enforce a prior agreement allowing a switch to , after which the PTA approved license renewal and modifications on October 23, 2004, extending the term to 15 years and permitting immediate rollout upon payment of $291 million. In January 2007, sold its 88.86% stake in Paktel to Communications Corporation for $284 million, implying an enterprise value of $460 million; the deal, 's first overseas acquisition, included commitments for extensive network expansion and was subject to PTA approval. The PTA granted conditional approval via a in February 2007, finalizing the transaction by May and injecting fresh capital into Pakistan's telecom sector, which intensified among operators. Following the acquisition, renamed the company to CMPak and invested approximately $2 billion during 2007-2008 to overhaul the infrastructure, including an initial $700 million transfer in March 2007 as part of a three-year expansion plan.

Decline and Rebranding

In the 2000s, Paktel faced intense competition from established operators like Mobilink and , which eroded its market position despite subscriber growth to approximately 2.1 million by early 2008, though at a slower rate than competitors. Mobilink, as the market leader, aggressively expanded its GSM network and value-added services, capturing a larger share of new subscribers, while benefited from its affiliation with the state-owned (), offering competitive pricing and broader coverage. This rivalry contributed to Paktel's market share declining from approximately 9% as of 2005. Compounding these challenges were spectrum allocation constraints and escalating operational costs, which hampered network expansion and profitability. Paktel received additional 1800 MHz to address capacity limitations, but the allocation was temporary and subject to ongoing regulatory reviews, limiting long-term investments. High infrastructure and licensing expenses in a rapidly growing market further strained resources, prompting parent company International Cellular to announce its exit from in November 2006 by divesting its 88.9% stake in Paktel. The sale to China Mobile Communications Corporation was completed in early 2007 for $460 million, marking Millicom's full withdrawal from the region. The Paktel brand officially ceased operations on March 31, 2008, with the company rebranding to Zong under China Mobile's ownership on April 1, 2008, to leverage the new parent's global expertise in scaling networks. Paktel's decline underscored its pioneering role in Pakistan's mobile sector—launching one of the country's first cellular services in 1990—but highlighted a failure to innovate beyond basic amid GSM transitions, ultimately contributing to telecom industry consolidation as weaker players were absorbed or restructured. This shift paved the way for more agile competitors to dominate, reducing the number of viable operators from six to four major ones by the late .

Network Technology

Initial AMPS System

Paktel adopted the (AMPS), an analog first-generation () cellular standard, in November 1990, marking the launch of mobile telephony services in . Operating in the , with uplink frequencies from 835–845 MHz and downlink from 880–890 MHz, the system utilized frequency division multiple access (FDMA) for signal separation. Each channel featured a 30 kHz bandwidth, supporting voice calls exclusively without data capabilities. The infrastructure rollout involved establishing two mobile switching centers and multiple radio base stations, initially concentrated in major urban centers such as , , , and , providing coverage over approximately 30,000 km². Paktel partnered with multinational investor Cable & Wireless for partial ownership and operational support, facilitating the deployment of this early network in Pakistan's emerging telecom landscape. These base stations were strategically placed to serve industrial and commercial hubs, reflecting the limited scope of analog technology at the time. Despite its pioneering role, system suffered from inherent limitations typical of analog networks, including poor call quality due to susceptibility to atmospheric interference and noise. Handsets were prohibitively expensive, costing around $1,000 initially, which restricted access primarily to affluent users in a market with low fixed-line penetration. The voice-only functionality further constrained utility, as no provisions existed for data transmission or advanced features. In the regulatory context, Paktel's AMPS deployment complied with early government standards for analog cellular systems, granted via a from the Ministry of Communications in 1990 as part of broader efforts to introduce private-sector competition in Pakistan's nascent telecom sector. Although the (PTA) was established later in 1996, initial operations aligned with foundational policies aimed at fostering basic mobile infrastructure amid limited frameworks.

GSM Migration and Upgrades

In 2004, the Pakistan Telecommunication Authority (PTA) modified Paktel's license to permit the migration from the analog AMPS system to the digital GSM standard operating on 900/1800 MHz frequencies, enabling the company to align with prevailing global mobile technologies and enhance service quality. This modification was part of a broader license renewal agreement for 15 years, requiring Paktel to pay a fee of $291 million, with an initial 50% installment spread over three years, to support the technological shift and spectrum reallocation. The transition addressed the limitations of AMPS, such as limited capacity and lack of data services, by adopting GSM's more efficient digital framework. The implementation of the migration proceeded rapidly following the license approval on October 23, 2004, with installations commencing immediately and commercial services launching by late October, marking a full switchover from AMPS within months. Paktel utilized from Corporation for the core network and radio access components, which facilitated the deployment of GSM infrastructure capable of supporting up to 1 million subscribers initially. Key improvements from this migration included significantly increased network capacity, expanded coverage through denser cell sites, and the introduction of messaging alongside more affordable voice calling rates, which helped attract new subscribers transitioning from analog services. However, the process presented challenges, including the high migration exceeding $100 million in and licensing expenses, as well as the technical complexities of integrating ongoing AMPS operations to minimize disruptions for existing users during the dual-mode rollout phase. Following China Mobile's acquisition of Paktel in and its rebranding to CMPak (later Zong), the network underwent substantial upgrades to bolster capabilities, including expansions in coverage and the introduction of EDGE technology for basic packet data services like mobile . These enhancements, supported by additional contracts for network expansion, increased overall capacity to handle growing subscriber demand and enabled features such as improved data speeds up to 236.8 kbps via EDGE, while maintaining compatibility with legacy voice and functionalities. The upgrades addressed prior coverage gaps and positioned the network for future transitions, contributing to a more robust and competitive service offering in Pakistan's mobile market.

Coverage and Infrastructure

Paktel initiated its cellular services in November 1990, with initial coverage confined to the major urban centers of , , and , utilizing an analog AMPS system. By the mid-1990s, the network had expanded to encompass additional key locations including , , , , , and several others, spanning over 30,000 square kilometers and serving approximately 15 cities. This growth focused on urban and industrial areas to support early mobile demand. The transition to in 2004 marked a significant phase in network expansion, introducing nationwide across to enable seamless connectivity for users. The rollout initially covered 150 cities with a capacity for at least 2 million subscribers, rapidly scaling to 227 cities by 2005 through the addition of 800 cell sites, achieving coverage of about 45% of the population. Further infrastructure development continued until the company's in , prioritizing populated regions to enhance accessibility. Paktel's infrastructure relied heavily on partnerships for equipment deployment, notably with Corporation, which supplied network components including base stations () following the 2004 migration. This collaboration facilitated the upgrade from analog to digital systems, improving network reliability and . The overall setup was designed to support up to 5 million potential subscribers post-, with average throughput enhanced by the adoption of efficient digital transmission protocols. As a licensed operator, Paktel adhered to regulations set by the (PTA), which enforced (QoS) benchmarks such as call drop rates and network availability to ensure reliable service delivery. The company's usage was governed by its 2004 license renewal, aligning with PTA's framework for frequency allocation and auctions that promoted competitive infrastructure growth.

Services and Market Presence

Numbering and Subscriber Management

Paktel's telephone numbering system was integrated into Pakistan's national framework under the (PTA), utilizing the international +92 as part of the standard for global dialing compatibility. The initial allocation in the assigned the 303 and 304 codes under the +92 30x prefix for mobile services, supporting the company's early AMPS-based operations. These codes allowed for 7-digit subscriber numbers at launch, aligning with the limited capacity of analog systems at the time. Subscriber management began with postpaid services, transitioning to prepaid activation in April 2001 under the brand. Following the shift to technology in 2004 and subsequent license renewal, Paktel migrated to a 10-digit numbering format, consisting of a 2-digit network access code followed by an 8-digit subscriber number, to accommodate growing demand and standardize with PTA regulations. This migration was completed nationwide by 2008 with minimal disruption to users. After Mobile's acquisition and the to Zong in 2008, the numbering prefix shifted to 031x for new activations, while existing 0303 and 0304 numbers were gradually phased or reassigned, with options for subscribers to retain or port their numbers under PTA guidelines. Key subscriber policies included the adoption of the Calling Party Pays (CPP) regime in 2001, enabling free incoming calls across networks to boost accessibility. Additionally, from August 2004, Paktel introduced national roaming without extra charges, allowing seamless connectivity across regardless of location.

Marketing Strategies and Plans

Paktel introduced its prepaid service, branded as , in April 2001, marking a pivotal shift in its approach to lower entry barriers and expand accessibility in Pakistan's emerging mobile market. This initiative targeted cost-conscious consumers by allowing flexible airtime purchases without the commitments of traditional postpaid plans, significantly broadening the subscriber base beyond urban elites. By emphasizing affordability and convenience, Tango helped Paktel capture a larger share of the prepaid segment, which grew to represent 80% of its customers by the mid-2000s. Key promotional campaigns in the early leveraged memorable slogans and endorsements to highlight service benefits and build recall. The "Call Suno Balance Barhao" campaign promoted the advantage of free incoming calls, reassuring users that they could receive calls without depleting their balance, which was a novel feature under the Mobile Party Pays regime. Television advertisements during this period featured popular celebrities, such as Aijaz Aslam in a 2003 series of commercials directed by Asad Ul Haq, to appeal to diverse audiences and position Paktel as a reliable, everyday communication option. Paktel's service packages evolved from high-end postpaid offerings in the , which required substantial initial investments around PKR 5,000 for setup, to more inclusive prepaid bundles following the upgrade in 2004. Post-, introduced value-added prepaid options, such as cards providing up to 50% bonus airtime on purchases like Rs 600 or Rs 900 denominations, enabling savings of up to Rs 450 for loyal users staying within the network. These bundles focused on extended validity—up to one year—and competitive tariffs to attract volume-driven subscribers. Innovative promotions underscored Paktel's competitive edge, including its pioneering national initiative in 2004, which offered free incoming calls and no roaming charges across for both prepaid and postpaid customers, previously limited to select regions. This move aimed to enhance nationwide coverage perception and customer loyalty amid growing rivalry. Branding efforts transitioned from a formal, corporate image in era to youth-oriented messaging with Tango's vibrant, accessible appeal, incorporating dynamic visuals and slogans to resonate with younger demographics before the 2008 rebranding.

Market Performance and Competition

Paktel's subscriber base experienced substantial growth from its inception, beginning with fewer than 1,000 users in 1990 when it launched as Pakistan's first cellular operator using AMPS technology. By mid-2005, the company had expanded to approximately 944,000 subscribers, reflecting a 96.7% year-over-year increase from 2004, driven by network upgrades and the shift to . This trajectory continued, reaching around 2 million subscribers by 2007 amid aggressive expansion under new ownership, before peaking at 2.145 million in early 2008. Despite this expansion, Paktel's market share remained modest at 6.7% in 2005, trailing far behind dominant players like Mobilink, which commanded 56.5% with over 7.9 million subscribers, and at 21.1%. The company's delayed full migration to until 2004 contributed to its inability to capture a larger portion of the rapidly growing market, where total cellular subscribers surpassed 14 million by that year. By late 2005, estimates placed Paktel's share closer to 9%, but it still lagged leaders like Mobilink, which held over 30% in subsequent years as the sector consolidated. The Pakistani telecom market became increasingly competitive following Paktel's early monopoly alongside Instaphone, with entering in 2001 as the first state-backed provider, followed by in 2004 and Warid in 2005. These newcomers introduced innovative prepaid packages and broader coverage, eroding Paktel's position from an early leader to the fifth-largest operator by , as they captured younger demographics and urban markets through superior marketing and infrastructure investments. Post-2000, Paktel's performance was hampered by revenue declines amid fierce price wars, as operators slashed tariffs to attract price-sensitive customers, leading to industry-wide margins compression. PTA data highlights churn rates exceeding 20% during this period, with the sector averaging 30-35% annually due to easy SIM switching and promotional incentives. Paktel's competitive pressures and pricing strategies contributed to broader industry transformation, driving mobile call tariffs down from approximately PKR 20 per minute in the early 1990s to under PKR 1 by , which boosted penetration from under 1% to over 50% and spurred economic activity through increased connectivity. This to Zong in marked a pivotal shift to revitalize its market standing.

References

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