Nayatel (Private) Limited (herein referred to as “Nayatel” or “the Company”) is a private limited company, incorporated as a wholly owned subsidiary of Micronet Broadband Private Limited (MBL) in 2004. The Company’s registered office is located at GD Arcade, 73-E, Fazal ul Haq Road, Blue Area, Islamabad. 

The Company was incorporated under the Companies Ordinance, 1984 (now the Companies Act, 2017), for the purpose of launching fiber-to-the-home (FTTH) technology to provide high-speed broadband, telephone, and high-definition television services in Pakistan. MBL, the parent company of Nayatel, was formed by Micronet Group in December 2001, with the sole aim of rolling out the first-ever Digital Subscriber Line (DSL) services and solutions in Pakistan. The Micronet Group consists of professionals who have been at the forefront of the Internet wave since it was introduced in Pakistan in the mid-nineties.

Nayatel is a pioneer and a leader in triple-play service (telephone, cable TV, and data) on the FTTH network and they also provide Fibre-To-The-Tower (FTTT) network. The Company has operations in Islamabad, Rawalpindi, Faisalabad, Peshawar, Gujranwala, Sargodha, Multan, and has recently expanded to Rajanpur, Muzaffargarh, Lahore and Attock as well. It has a diversified platform of services, including public and private data network services, fixed-line telephony services, cable television, and other value-added services. 

Nayatel is ~99% owned by Micronet Broadband Limited (MBL), with the remaining shares held by six individuals, including Mr. Rashid Ali Khan, Mr. Alamgir Khan, Khawaja Saad Saleem, Mr. Wahaj us Siraj, Mr. Aqeel Khurshid, and Mr. Mubashir A. Malik. MBL’s ownership structure consists of eight individuals and one private entity. Among these, Mr. Rashid Khan and Mr. Ashraf Qazi hold the major stakes of ~35% and ~30%. 

The Company has a stable ownership structure comprising a single holding company owned by a group of individuals. 

Nayatel’s business model was conceived by MBL’s founding members: Mr. Wahaj us Siraj, Mr. Aqeel Khurshid and Khawaja Saad Saleem, all of whom are experienced professionals with an engineering background. They remain close, connected friends. Their leadership and expertise bring invaluable insights and strategic direction to the Company, driving its success in a competitive industry. Moreover, Mr. Rashid Khan is a seasoned senior business executive with extensive experience in banking and finance, consumer marketing, and corporate restructuring initiatives. 

The MBL Group is recognized as one of Pakistan’s pioneering local ISPs, bringing DSL services to the market in 2002 and later innovating with fiber through Nayatel. The financial strength of the sponsors is considered good, as the sponsoring company is backed by the individuals with strong financial standing and credible profiles.

The board of directors (BoD) consists of six directors with an equal number of executive and non-executive directors. This balanced composition brings diverse expertise and strategic perspective, enabling effective leadership, innovation, and sound decision-making. However, the absence of independent directors limits impartial oversight and governance transparency.

Wahaj us Siraj is the CEO and Co-founder of Nayatel, Pakistan’s first FTTH network. He also co-founded Micronet Broadband, which introduced the country’s first DSL service in 2002. With extensive telecom experience, Wahaj spent 14 years working with the Government of Pakistan before transitioning to entrepreneurship. He serves on the boards of leading government organizations and universities and is frequently invited to speak on entrepreneurship and self-development. Khwaja Saad Saleem, Chief Operating Officer and Managing Director, is a co-founder of both Micronet Broadband and Nayatel. An engineer by training, he began his career at AXEN, focusing on managing, supervising, and executing government projects. He is recognized as the architect of Nayatel’s FTTH network design and deployment. Aqeel Khurshid, Chief Technology Officer and Co-founder, led Nayatel in launching South East Asia’s first FTTU network in 2006 and introduced Pakistan’s first DSL service with Micronet Broadband in 2002. Starting his career at Pakistan Oil Fields in 1992 as a Control and Instrumentation Engineer, Aqeel holds a degree in Electronic and Communication Engineering and has extensive experience in executing complex IT and telecom projects.

The board, under the supervision of founder and co-founders, supports the management in terms of strategic guidance. Minutes of the board meetings are maintained. However, no formal board committee exists.

A separate internal audit department is in place. Grant Thornton & Co. Chartered Accountants is the external auditor of the Company. The firm is QCR rated and categorized as “A” in the SBP list of auditors. The auditors have expressed an unqualified audit opinion on the financial statements of Nayatel (Pvt.) Limited for the year ended December 31, 2024.

Nayatel has a well-defined organizational structure. Different operational activities are properly segregated and managed through various departments. All department heads report to the Chief Executive Officer (CEO), while the technical departments and operational departments report to the Chief Technology Officer and Chief Operating Officer, respectively.

The Company’s management team comprises seasoned professionals with extensive industry experience, including Muhammad Ahmed (EVP Finance) with over 26 years, Sheikh Wajid Mehmood (EVP Sales & Marketing) with over 16 years, Taimur Aziz Bhatti (EVP HR & Admin) with over 17 years, and Ahmad Tahir (EVP Business Development) with over 28 years of professional expertise. Collectively, the team’s breadth of expertise and long association with the Company underscores strong leadership continuity and positions Nayatel well to meet evolving market challenges. 

The Company has a sound Supply Chain Management process for procurement and sales, requiring approval from the CEO, COO, CTO, and/or CFO. However, no formal management committees exist.

SAP has been implemented at Nayatel. The implementation and establishment of the SAP system were done by Siemens Pakistan, with comprehensive dashboards and data analytics systems. The practice of monthly reporting is prevalent in the company. Management meetings take place on a monthly basis to discuss the company’s financial position and future strategy.

The Company has implemented sound internal controls and systems in order to achieve operational efficiency. SAP has been implemented at Nayatel. Nayatel Fiber Service Division (NFSD) is the division that has installed fiber the home (FTTH) network in four cities of Pakistan. It has a team of engineers having hands-on experience in designing, building, operating, and maintaining the FTTH network. A system HR development is prevalent in the Optical Fiber segment. The engineers are provided with training on FTTH in classrooms and labs. There is training at each development stage i) Beginner ii) Intermediate iii) Expert level. The acquired skills have enabled them to have expertise in equipment such as Fujikura Fusion Splicers, JDSU and EXFO OTDRs, Corning Fiber Microscope, and Witch Cable Locator. Nayatel also has its own patrolling team, looking after the fiber cuts throughout the twin cities. 

During CY24, Pakistan’s telecommunications sector recorded a robust year-over-year revenue growth of ~17%, reaching around PKR 955.2 billion (CY23: PKR 850 billion). The Country’s internet service provider (ISP) landscape is structured into three tiers: Tier-I, Tier-II, and Tier-III operators. In the Tier-I segment, primarily two players: Pakistan Telecommunication Company Limited (PTCL) and Trans World Associates (Pvt.) Ltd. (TWA), own submarine cables, positioning them as key controllers of Pakistan’s internet backbone. These Tier-I operators supply bandwidth to Tier-II providers, which in turn cater to downstream ISPs. Within fixed broadband services (excluding cellular data such as 3G and 4G), the market is further segmented by technology type, including DSL, wireless broadband, FTTH, and FTTT services. As of FY25, the broadband subscribers have reached ~150mln and the data consumption has reached ~27,897 petabytes as per the latest statistics of Pakistan Telecommunication Authority (PTA). Demand for high-speed, reliable internet continues to expand, driven by digital adoption across households, businesses, and public services, providing ISPs with significant growth opportunities. 

Nayatel holds the No. 3 position overall and No. 2 among private operators in Pakistan’s FTTH internet segment, with a 9.29% market share based on subscriber count.The Company operates under the licenses issued by PTA and PEMRA (Pakistan Electronic Media Regulatory Authority). Nayatel has obtained 10 licenses altogether, comprising five loop licenses, four cable TV/IPTV licenses, and one CVAS license. According to data disclosed by the PTA as of June 2025, PTCL is leading with ~741,293 active subscribers, followed by Cybernet Internet with ~627,794, Nayatel with ~195,528, Connect communication with ~176,321, Wancom with ~85,234, and Transworld Enterprise Service (Pvt.) Ltd with ~78,849 active subscribers. 

During CY24, the Company’s turnover clocked at ~PKR 9,405mln (CY23: ~PKR 7,835; CY22: ~PKR 6,459mln), registering ~20% YoY growth. Revenue composition remains heavily concentrated in the FTTH segment, contributing ~97% of total sales, while the FTTT segment accounts for the remaining 3%. The Company has consistently expanded its topline over the past few years, supported by strong market demand and service expansion. The Islamabad and Rawalpindi region continues to generate the highest revenue share. As of June 2025, the customer base increased by ~20%, while household coverage (house passes) expanded by ~8%. 

The Company’s gross profit margins clocked in at ~33.8% for CY24 (CY23: ~33.2%; CY22: ~36.7%). Operating profit margin slightly improved and stood at 17.9% in CY24 (CY23: ~16.5%; CY22: ~21.1%). Net profit margin witnessed an increase in CY24 and stood at 4.6% (CY23: ~3.2%; CY22: ~10.9%). The Company’s focal point of the strategy lies in controlling its finance costs and administrative expenses in order to keep its bottom-line margins intact. 

The Company’s topline is projected to strengthen in the coming periods, driven by a dual growth strategy: (i) acquiring new customers and (ii) increasing average revenue per user. Ongoing geographical expansion into new cities further reinforces its long-term position in the FTTH market. Additionally, the Company has introduced Fiber-to-the-Tower (FTTT) technology and partnered with major telecom operators: Jazz, Telenor, and Zong, resulting in a ~4% increase in fiber-connected towers over the past six months. Looking ahead, the Company intends to expand services across additional regions and diversify into new business avenues, enhancing both growth potential and market sustainability. 

In CY24, the Company’s inventory levels moderated to ~29 days (CY23: 34 days; CY22: 35 days). Receivable days remained broadly stable at 25 (CY23: 24; CY22: 23). Trade payable days, however, contracted to 31 in CY24 (CY23: 46; CY22: 47), reducing supplier credit. As a result, gross working capital days improved slightly to 54 in CY24 (CY23: 58; CY22: 58). Nevertheless, the net working capital cycle lengthened to 23 days (CY23: 12 days; CY22: 12 days), primarily due to lower payable days. 

The Company’s FCFO increased and reached PKR 3,594mln during CY24 (CY23: PKR 3,040mln; CY22: PKR 2,757mln), supported by improved EBITDA. Interest coverage ratio increased to 3.0x in CY24 (CY23: 2.5x; CY22: 3.9), reflecting enhanced debt-servicing capacity, albeit remaining moderate relative to historical levels. Debt coverage also improved marginally, reaching 1.2x in CY24 (CY23: 1.1x; CY22: 1.3x), indicating adequate cash flow relative to debt obligations. 

During CY24, the Company’s leveraging stood at ~37.5% (CY23: ~35.3%; CY22: ~42.2%), due to an increase in the long-term borrowings undertaken to finance ongoing expansionary initiatives. Total borrowings were recorded at PKR 7,517mln in CY24 (CY23: PKR 6,644mln; CY22: ~PKR 5,811mln). The debt profile remains skewed towards long-term obligations, with no short-term borrowings outstanding at end CY24 (CY23: PKR 50mln; CY22: PKR 50mln).