ISLAMABAD, Sept 27: The net profit of the Pakistan Telecommunication Company Limited fell to Rs26.6 billion during the year ended June 30, 2005 compared to Rs29.2 billion it earned a year ago, showing a decline of 8.9 per cent.

The PTCL Board of Directors in its meeting held here on Tuesday, with Zaffar A. Khan in the chair, reviewed and approved the audited financial results of the company for the year under review.

The board was informed that the total revenue showed an increase of 2.5 per cent to Rs76 billion compared to Rs74 billion a year ago. However, the profit before tax declined by 9 per cent to Rs39.3 billion over the last year.

The board noted that last year the telecom sector had experienced dynamic change, landmark development and innovation resulting in a highly challenging and fast growing telecom market. The expansion in the telephone infrastructure and the growth in teledensity during the year had been phenomenal. As a result the competition among the operators was also unprecedented.

It was further informed that during the year the teledensity in the country increased from about 3 to 3.5 per cent for fixed line whereas for the mobile phone it increased phenomenally from 3.3 per cent to 7 per cent. The PTCL set a record by adding 0.8 million new lines in service during the last fiscal year.

The board was informed that the average NWD tariff was reduced by 46 per cent and international outgoing by 22 per cent. Internet Protocol (IP) bandwidth charges were also reduced during the year from $3,950 per month to only $2,000, making Pakistan one of the most attractive countries in the region for IP Broad Band (BB) service.

The operating profit of the company was lower by 13 per cent. This was partly offset by 62 per cent increase in other income.