THE IMPACT OF PRICE COMPETITION ON PROFITABILITY AND MARKET SHARE DYNAMICS IN PAKISTAN'S TELECOM SECTOR: A QUANTITATIVE ANALYSIS

Abstract

This study examines the relationship between price competition, profitability, and market share dynamics in Pakistan's telecommunications sector through primary data analysis. Using a quantitative research design, we collected survey responses from 150 telecom executives and analyzed financial records from four major operators (Jazz, Telenor, Zong, Ufone) among 2018 to 2023. Results demonstrate a significant negative correlation (r = -0.72, p < 0.01) between price reductions and profit margins, while revealing a positive association (r = 0.65, p < 0.01) between competitive pricing and market share growth. Urban operators with diversified service portfolios showed greater resilience to price wars compared to rural-focused providers. The findings highlight the critical trade-off between affordability and sustainability in Pakistan's hypercompetitive telecom market, suggesting that operators must balance aggressive pricing with operational efficiency and value-added services to maintain profitability.