_______________________________________________________________________________

SUBMITTED TO
Mr. Syed Karamatullah Hussainy
_______________________________________________________________________________

SUBMITTED BY

Raheel Rais ID # 4822

Humayun Jamal ID # 4787

Noman Justin ID # 4775

1
_______________________________________________________________________________

S No. Topic
Page #

01 Letter of Acknowledgement 03
02 Executive Summary 04
03 Introduction / Company Profile 04
04 Company Analysis 05
05 Marketing Analysis 09
06 MARKETING MIX 10
07 Market Segmentation 11
08 Target Market 11
09 Market Dominance 11
10 Market Differentiation 12
11 Environmental Analysis 11
12 Major Product Lines Market Segment 12
13 Growth Rate for the Entire Industry 12
14 Competitor Analysis 14
15 Competitors Market Share 18
16 Technological Analysis 18
17 Conclusion 19
18 References 19

2
Dear Readers,

Firstly, we would like to thank Almighty God for providing us the

capability of working and completing this report in time.

We would also like to express our gratitude to our lecturer

Sir Karamatullah who has been our source of inspiration throughout the
semester. Without his guidance this report couldn’t have been possible.

Regards,

Raheel Rais 4822

Humayun Jamal 4787

Noman Justin 4775

3
E X E C U T I V E S UMMARY
The overall consensus of industry analysts is that Pakistan is one of the countries
with a huge untapped potential for telecom growth and an attractive investment
environment. Recently Business Monitor International (BMI) ranked Pakistan as a
key destination for telecom growth. The BMI rankings take into account a number
of factors including industry situation, growth potential, competitive landscape
and economy and political risks etc.
The Pakistan market reached the 90 million subscriber mark in September 2008,
almost double from 2006 numbers. The growth slowed after that and at the end of
November 2008 the total mobile subscriber number was 90.5 million. Pakistan
needs to increase telecom research and development work within the country.
China and India are in the process of becoming world major R&D centers for
technology and telecommunication. Two top Chinese telecom equipment firms
have announced their plans to collaborate with Pakistan: Huawei is working with
UET Lahore and ZTE will setup R&D center in Islamabad. The goal of the policy
makers should be to increase the rate of transfer of technology from abroad,
broaden the pool of local skilled workforce and accelerate the local production of
telecom equipment and handset parts etc.
PTCL was established to operate cellular telephony. The company commenced its
operations, under the brand name of Ufone, from Islamabad on January 29, 2001.
Ufone continued on the path to success. The Company further expanded its
coverage and has added new cities and highways. Ufone has network coverage in
more than 5442 locations and across all major highways of the country. Ufone, a
wholly owned subsidiary of Pakistan Telecommunication Co. Ltd (PTCL), under the
control of ETISALAT group of UAE. It has 21% of subscriber share and added the
most lines (2.4 million) from 2006-07. For those in Pakistan it is the one company
where they can easily invest locally. Ufone is maintaining its subscriber’s base in
market.However the company needs a big push from its owners ETISALAT in
shape of more investment to increase and enhance its network and its quality.

INTRODUCTION
COMPANY PROFILE
Pakistan Telecom Mobile Ltd, operating under the brand name of ‘Ufone’ a wholly-
owned subsidiary of PTCL commenced its operations on 29th January 2001 as a
GSM 900 service provider. Since the outset it has expanded its coverage and
customer base at a rapid pace and
established itself as one of the leading cellular service providers in Pakistan. Ufone
is now considered to be one of the most active, aggressive and innovative players
in the mobile sector of Pakistan. The growth of cellular sector in Pakistan can also
be attributable to good governance and conducive policies of the government of
Pakistan In connection with that in April 2006 Emirates Telecommunication
Corporation, which is commonly known as Etisalat, has assumed
4
management control of Pakistan Telecommunication Corporation Ltd – part of the
$2.6bn deal to buy a 26% stake. The successful privatization of PTCL, and
consequently Ufone, is hailed as ushering in a new era for telecommunications in
Pakistan. As mobile users in the country have reached 88 million at a very rapid
pace, Ufone has a subscriber base of nearly 17.5 million and a market share of
nearly 21%. Ufone has seen a subscriber growth of over 10 million since July 2007
onto its network. Subsequently the growth in subscriber base caused a healthy
trend in its revenues and margins. Ufone has always played a pivotal role in the
development of cellular
market in Pakistan. For most part it has been a step ahead in introducing
innovative products to the market. Ufone was pioneer in launching the GPRS
services and Multi-media Messaging Service (MMS) in Pakistan, including the lead
in introducing GPRS international roaming and prepaid international roaming for
these services in the Pakistani market. Currently Ufone has expanded its product
portfolio to include Black Berry handsets and providing one of the largest EDGE
networks in the country today. Ufone understands the need to communicate
effectively and efficiently at all levels of society, which is why various products are
catering for the needs of the Pakistan corporate market. It offers services such as
mobile office, Virtual Private Network (VPN), and a lot more to revolutionized
communication. Ufone provides International Roaming facility with more than 215
international operators across 124 countries. Ufone has GPRS roaming
agreements with more than 100 international operators and also provides prepaid
roaming facility to more than 15 destinations across the country.

COMPANY ANALYSIS
OPERATIONAL ANALYSIS
Ufone’s operational performance has been very encouraging. Despite the stiff
competition in Pakistan telecom market which has led to reduction of prices to
bare minimum level, due to its aggressive policies and exercising strict control
over expenses the Company managed to improve its revenue and after-tax profit
by 87% and 54% respectively, as compared to last year. Future Plans keeping in
view the growth potential of the cellular industry there is no option but to be
aggressive in order to remain a potent force in the cellular industry. In order to
extend cellular network Ufone has finalized a huge network expansion contract
amounting to about USD 550 million, which will enhance the subscribers’ capacity
by 10 million. This is the largest ever expansion project of Ufone. A strong focus of
Ufone is on maintaining high quality of service, which is always a benchmark of
Ufone, increasing usage and exploring new revenue streams on value added
services, market visibility through various market initiatives to fulfill subscribers’
satisfaction and demand and above all to increase the value of investment for the
shareholders.
Moreover, efficient working of the workforce in the organization makes it possible
to lead the market and maintain competitive edge over the competitors. The

5
organizational operations can be clarified by studying the nature of Ufone’s
organizational structure and hierarchy.

Organizational Structure
The organizational Structure at Ufone is Lean or Horizontal structure. One of the
organizational functions of Ufone in relation to its hierarchy is, the company is
having Decentralized structure. The flow of communication becomes easy and
simple in such structure. It is divided into different departments and every
department has its head and all are interconnected. The concept of
Departmentalization is effectively in practice at Ufone. There are different
departments which are working within their functional units to contribute towards
the success of organization and
to achieve the over all goal of the Organization. Ufone has 8 departments that are
working efficiently and all are interacting with each other to make it a much better
company by satisfying its customers demand. The structure of Ufone comprises of
Board of directors who are being
reported by CEO, Chief Executive Officer. CEO is a great supervision to the 8 Major
operations of the company. These operations are divided into departments that
are:

Finance Department
The head of finance department is designated as CFO – Chief Financial Officer or
Vice president of financial head.

Marketing Department
The head of marketing department is designated as CMO- Chief Marketing Officer
or Vice President of Marketing Head. The department has further 3 subheads
working in specialized manner according to the skills and abilities of the
employees.
Brands
There are basically two products of the Ufone which serves as the brands of the
company. This sub-head is responsible for the execution of the Brand Activities.
Ufone is performing the
promotional activities in Brands sub-head, including advertising over Electronic
media and print media. The promotional strategies are made by the sub-head to
get the implementation.
Marketing Strategy and Analysis
The sub-head is working in order to formularize the marketing
strategy according to the market requirement and consumer preferences. The
analysis about the market trend is done and the strategies are made in relevance.
Moreover, competitors are
biggest source of reacting towards the marketing activities. Ufone is having a
proactive marketing concept in context of competition.
6
VAS – Value Added Services
VAS sub-head is responsible for proficient functioning of conveniences provided to
the customers, these VAS are Virtual Private Network, Call Management, Missed Call
Notification, Phonebook Saver and a host of Infotainment and Entertainment services.

Information Technology Department

While being a part of information technology and telecommunications, Ufone is
having a major department of Information technology. The head of information
technology is termed as CIO- Chief Information officers. IT department is working
with the division of further 2 sub-heads.
Billing
The billing department is responsible for aggregating CDRs and preparation of the
postpaid billing for customer from system.
IT Development
Any kind of IT development required by the company in billing or CRM (Customer
Relationship Management) module is done by IT development team.

Customer Operations Department

One of the departments to preserve the existing consumers, Ufone is having a
department of Customer operations; the head of this department is designated as
VP COPs – Vice president Customer Operations. The department is having 2
further sub heads.
Customer Care
Ufone provides customer care through Customer Care Center located in all key
cities, across the country. Ufone’s customer care representatives are more
helpful. They will not only resolve
Consumers issues but also guide them into customizing Ufone, according to their
needs. Customers care is offered to through
o Call Centre
Cal centre representatives are providing services, 24 hours a day. The customers
can contact the Ufone Call Center to get answers to all their queries. Some of
them include:
 Bill enquiry (credit limit, expiry date etc.)
 Reporting of lost phone
 Number blocking in case of lost or stolen SIMs
 Connection status (active / inactive)
 Tariff
 Products information
 Ufone Sales & Service Center information
 Nearest dealer information
 Ufone coverage areas
 Emergency number information
 International roaming information
 Value added services information
7
 Missed call alerts
 Call forwarding
 Conference call
 FNF Activation / Changes
 Post Pay Reward Redemption

o Business Centre
The business centre of Ufone are offering various services to their customers, they
are basically company owned centre, the business centre offers the SIM issuance
and other customer related issues, retention of customers and handling requests
for Mobile number portability.

Govt. Relations

PTA – Pakistan Telecom Authority is the regulatory authority in Pakistan

concerning the network operators as well as telecommunication practices. Ufone
is also abiding the rules that
are being made by PTA. The relationship with PTA is also being maintained as PTA
is Govt. regulation.
Engineering Department
The engineering department is Backbone of the company. The head of the
department is termed as CTO - Chief Technical Officers or Vice president.

Sales Department
The sales department at Ufone is headed by Vice president Sales. The department
is being divided into 3 main sub-heads.
Corporate Sales
the division of the sales department is handling the sales for executives or
corporate clients. These clients are having postpaid products with billing system.
Franchises & Retail Outlets
this division is handling franchises and retail outlets with a network of more than
365 franchises and 25 company-owned customer service centers along with a
distribution network of 150,000 outlets nationwide.
Sales operations
Sales operations at the company have been set up to provide the customers,
quality services all under one roof so consumers can walk in to any Ufone Sales &
Service Center.

Human Resource Department

Human Resource department is being headed by the HR executive designated as
Chief of Human resource department. The department is working for the
personnel in the organization. There are 3 main sub-heads in the department
Recruitment and Compensation Benefits

8
Ufone has this policy of not mentioning the name of the company in a job
advertisement. Usually hiring takes place through outsourcing with a help of a
third party. Final selection takes
place after the candidate has been interviewed by the Manager of the department
who requires the new employee and then the HR Manager. A very effective way to
retain an employee is to give him compensation and benefits. At Ufone following
benefits are given: Medical Facility to employee and his/her parents and Paid
Vacations, Gratuity, Provident fund etc.
Training
Training & Development involves improving the knowledge, skills and abilities of
the individuals. A continuous training is conducted inside Ufone to improve the
performance of the
employee. There are two types of trainings conducted at Ufone:
In-house Training and External Training.
HR Operations
HR operations at Ufone include the working over all Human resource Functions
that are
o Orientation
o Human Resource Planning
o HR hiring / recruitment
o Selection Process
o Compensation and benefits
o Training and Development
o Human Resource Information system
Strategic Planning Department
o This department directly reports to Chief Executive officer.
o Ufone views strategy as an overall approach and plan. This department monitors
the executions of strategic plans and goals across the business. So, Strategic
Planning at company is the overall Planning that facilitates the good management
of a process. Ufone strategic planning is providing the big picture of company’s
operations and long term goals.

o Forecasting the opportunities

o Building Synergies
o Long-term Planning
o Implementation of Strategic Plans

MARKETING ANALYSIS
Ufone is having 2nd largest number of subscribers. Ufone has been attracting the
masses since the time of its origination. Ufone is also known for its quick
marketing.
MARKETING MIX

9
I have analyzed the marketing mix of the Ufone. Marketing mix includes the
analysis of the firm’s product, pricing, promotion and placement. Ufone’s
marketing mix can be
PRODUCT
Ufone understands the value of words and the need to communicate effectively
and efficiently at all levels of society, which is why company’s primary focus is on
U. Ufone offers, Prepay & Postpay
services in the Telecom sector.
Ufone Prepay
Ufone prepay is the product segmented for the youngsters. They are segmented
on the basis of
their age and status. They recharge through the prepaid cards whenever they feel
comfortable to
load the cards.
Ufone Postpay
Ufone Postpay is created for the executives and business class people, who
require making calls
within the country or internationally for the business purposes. Business
executives enjoy the
benefits and value added services connected with Postpay product of Ufone
Ufone For Everyone
The telecom market’s growing rate in Pakistan is higher than any Asian country.
Ufone offers lower rates and better network then other already established
cellular companies. All living standards have been captured by Ufone, like
Students, Labor and Businessmen, etc.
Ufone aims to provide with wider coverage, superior connectivity, clear signals &
voice quality to their valued customers.
U-Circle
Prepay provides an easy way to call Friends & Family. Ufone is making it easy for
its consumers to call friends & family with U Circle. Now the consumers can talk
more for less with the most economical rates to call their Ufone Circle.
U Share
Ufone Prepay customers can now share their balance with each other through a
simple SMS in 3 easy steps.
Mobile Number Portability
Ufone welcomes consumers to bring their mobile number to the best service.
Through Mobile Number Portability (MNP), mobile phone subscribers can retain
their mobile phone numbers when they change mobile operators. Therefore a
0300-xxxxxx or 0345-xxxxxxx can be a Ufone customer in the MNP regime.
PRICING
As compare to other telecommunication companies, Ufone offers its services with
lower and affordable rates. The price of product matters in the market but low
price with high density service is not an easy task to accomplish. For the

10
satisfaction of valued consumer Ufone merged the low Price and high density
services with wide network. Both, the Prepay & Postpay tariff.

Pricing Strategy
Pricing strategy plays very important role to acquire market share where giant
competitors are already working and moving ahead. Ufone has implemented low
pricing strategies to reach its objectives. Pakistan’s mostly population contains on
Middle class and working class people. In this view the low pricing strategy of
Ufone gets attention of many customers. In the early age of Ufone launched, they
decide their logo by the people opinions that boost its products. An advertising
campaign launched showing Bakra Market that relates to middle class of Pakistan.

PROMOTION
For the promotion of product, print media, electronic media, billboards, broachers
and leaflets has been utilized for the awareness of various customers.
Time to time, Ufone promotes its services / schemes to their users and general
public via using various type of promotion channels. Through the advertisements
people get awareness about the product and are able to choose the best one for
fulfill their requirement in Mobile Telecommunication.

Market Segmentation
Ufone is segmenting the market according demographic segmentation, i.e. on the
basis of age groups. Ufone has segmented its product on the basis of its features.
Ufone Prepay is segmented for the youngsters, whit attractive packages to their
requirements
Ufone Postpay is segmented for the people of mature age,
having their own business, belongs to business class or people who are senior
executives of the organizations

Target Market
Ufone has the target market concerning youth in the nation. This target market of
youngsters comprises of the 40% population. Ufone is having focused advertising
towards the target market simultaneously focused brand building over the market
segment of youth. Ufone is targeting the emerging segments of middle class in
the population to increase the number of subscribers as well as the revenue
generation from these subscribers Ufone has also targeted the corporate class, for
which Ufone is customizing the packages in order to preserve the existing small
but profitable corporate of SME market segment.

Market Dominance
Ufone is having a concept of Market dominance. Ufone is a measuring the
strength of its brand, product, service, and firm, relative to competitive offerings.
For being competitive in the market and while following the strategies based on
market dominance, Ufone has become the LEADER, instead of follower or
11
challenger of new offerings. While being a leader of the various offerings, it has
maintained the marketing of its product within shortest span of time. This
maintenance
has been done in order to make people aware about the latest offerings of the
Ufone.

Market Differentiation
Due to aggressive competition in Pakistan mobile companies, the operator needs
to differentiate their product from others in order to attract more and more
customers. Ufone with its basic or core product which is becoming homogenous
with the other’s products is struggling to introduce the differentiating offers for
the consumers. In the telecom industry, for differentiating the product means to
bring and implement some new and innovative technology. Technological
improvements at Ufone are continuous process. These practices of bringing
something new to the society at Ufone are emerging in the context of GPRS and
3G services. Ufone is not only emerging technologies but also maintaining a
technological dominance for the
services it is providing. Ufone is coming up with innovative products and
becoming pioneer
towards the new arenas. Ufone is launching innovative packages and products for
enhancing its revenues. The basic focus of Ufone is to enhance its VAS- value
added services. Ufone is providing as much as convenience to its consumers as
they expect. Some of the value added
services offered by Ufone are
Missed Call Notification
Phonebook Saver
My Ufone Account Services
Infotainment
Urdu Info Services
Trivia Quiz
Pocket Data Services
Virtual Private Network
Call Features
Messaging Services
U-Share

ENVIRONMENTAL ANALYSIS
INDUSTRY AND MARKET ANALYSIS
Cellular Mobile segment of the industry is considered an engine of growth for
telecom sector in Pakistan. Cellular Mobile sector continued to add 2.1 million
subscribers per month during the year 2007-08.
Cellular mobile operators continued their Aggressive marketing and network
expansion. Competition among operators became more intensive with aggressive
12
entry of CM Pak, a China Mobile subsidiary in Pakistan. CM Pak with their brand
Zong and Telenor have added significant Subscribers very rapidly. Several cellular
operators offered various Value Added Services at lower rates to attract more
customers. The sector exhibited slow growth than year before. Cellular Mobile
teledensity jumped from 39% in 2006-07 to 54.7% in 2007-08.
Collective Revenues of the sector have grew by 35% in the year 2007-08 against a
record growth of 48% in the year 2006-07. Cellular subscribers grew by about
40% in the year 200708, as against 82% in 2006 -07 and more than 100% during
2005-06. Main reason for its slow growth could be the rising inflation which affects
the affordability, higher taxes, saturation of the urban markets and low tariffs.
Regulator remained vigilant in resolving all sector related issues. The most
significant development was the shift from 7 to 8 digit numbering plan, which was
completed during 2007-08. It was a huge task and PTA took it as a challenge. Not
only all cellular MSC but also all fixed line switches have been enabled for 8 digits.
It is consider as a great success of the regulator for implementing it in short span
of time. Verification of unauthorized SIMs was another herculean task where
tremendous progress has been made. In collaboration with NADRA and mobile
operators, PTA has devised a comprehensive mechanism to verify the SIMS. It was
observed that approximately 7 million SIMS have not been registered properly
who were warned by PTA and operators were directed to register immediately
otherwise face disconnection. PTA launched a media campaign in this regard
along with strong warning has been issued to unregistered user if they failed to
register their connections, it will be blocked. Besides, PTA ordered closure of
various Franchises who were not implementing the proper procedure for issuance
of cellular mobile SIMs. PTA continued its IMEI system where it blocked number of
mobile handsets stolen or reportedtheft by users.

Major Product Lines Market Segment

MOBILINK
Mobilink is having two major products which have catered the marketof
consumers. Each of the products is having its distinct services in according to the
segmentation of consumers.
Indigo
Jazz

TELENOR
Another international telecom giant in Pakistan industry is Telenor.
Telenor is offering three products to its subscribers.

Persona
Djuice
TalkShawk

13
WARID TELECOM
Waridtel is providing the products to its subscribers distinguishing them in
consumers and corporate users. For consumers Waridtel has segemented the
pdocts in two product lines.
Consumer Postpaid:
Consumer: Zem
Warid Corporate

UFONE
Ufone is offering the products which are categorized on the basis of their
connection nature. There are basically two products of the Ufone which are
facilitating the consumers.
Ufone Prepaid
Ufone Postpaid

Growth Rate for the Entire Industry

The growth rate of the Pakistan’s cellular industry can be measured through the
number of subscribers in Pakistan. The growth of these subscribers can be
analyzed through the provincial subscribers.

Subscribers Growth and Penetration

Cellular Mobile sector has shown an impressive growth over the years. Pakistan
has been one of the fastest growing mobile markets among the emerging telecom
Markets. Subscription of subscribers remained impressive for another year and all
companies together added more
than 25 million subscribers to their networks. Total subscribers crossed 88 million
at the end of 2007-08. During the year 2007-08, Telenor added about 7.4 million
subscribers as compared to 7.1 million in 2006-07. Mobilink comes second with
the addition of 5.7 million subscribers during the same period. Warid telecom
succeeded to add another 4.8 million subscribers this year. Ufone added 4.0
million subscr-ibers in 2007-08 as compared to its addition of 6.5 million in
previous year1. CMPak entered the cellular market with aggressive marketing and
infrastructure roll out. Its growth was negative previous year but this year it added
2.9 million
subscribers in last few months. Cellular Mobile penetration in Pakistan reached
54.7% at the end of 2007-08, which is 15.3 percentage points higher than the last
year. Despite impressive addition of cellular subscribers by operators during 2007-
08, Cellular Mobile market could not maintain its growth patterns of the last 3-4
years. Generally, the growth of subscribers has declined considerably in 2007-08,
which is evident in Table - 7. Total subscribers growth has been reported 40% in
2007-08, which has declined from 82% in the year 2006-07. Growth of cellular
subscribers has declined by all major companies.

14
Mobilink growth declined registered from 53% to 22% while Telenor growth has
declined from 199% in 2006-07 to 69% in 2007-08. CMPak has entered the market
recently and has shown positive growth.

Cellular Mobile Penetration in all provinces has increased in last one year. The
province of Punjab toped in numbers though its total teledensity is second to
Sindh. Total subscribers in Punjab at the end of
June 2008 reached 52 million compared to 37 million in 2006-07. Growth of
cellular Sector subscribers remained highest in the province of Baluchitsan where
subscription grew by 57% in 2007- 08 with total cellular subscribers approaching
2.2 million compared to 1.4 million in
2006-072. When compared with 2006-07 and 2007- 08, Cellular Mobile
penetration has increased by 36.8 percentage points in Punjab and its total
teledensity climbed to 58.0% at the end of 2007- 08, which was 42.4% in 2006-07.
A significant improvement in Baluchistan has been noted where its cellular Mobile
teledensity has reached 27% in 2007-08 which was just 17% at the end of 2006-
07. This improvement is due to the special attention of regulator and Government
of Pakistan for this province in telecom sector in last year.

COMPETITOR ANALYSIS
MAJOR COMPETITORS
Ufone is facing competition from 4 network operators operating within Pakistan,
among which, warid and telenor and multinational organization.
MOBILINK
Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in
1994, and has become the market leader both in terms of growth as well as
having the largest customer subscriber base in Pakistan - a base of over 31 million
and growing. Mobilink pride ourselves on being the first cellular service provider to
operate on a 100% digital GSM technology in Pakistan that also provides state-
ofthe- art communication solutions to its customers.
Mobilink offers exclusively designed tariff plans that cater to the communication
needs of a diverse group of people, from individuals to businessmen to corporate
and multinationals. To achieve this objective, we offer both postpaid (Indigo) and
prepaid (JAZZ) solutions to our
customers. Compared to our competitors, both the postpaid (Indigo) and prepaid
(JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry.
In addition to providing advanced voice communication services that makes the
lives of millions that much easy, we also offer a host of value-added-services to
our prized customers. At the same time, Mobilink places high importance to its
coverage, which is why we cover you in 10,000+ cities and towns nationwide as
well as over 130 countries on international roaming service. In other words, we
speak your language, everywhere.

Strengths Weakness
15
Market Leader (Market share)
Largest Network Coverage
Strong Brand (Jazz)
High %age of high end customers
Low network dependency on 3 Party (own backhaul fibre & LDI)
rd

On net advantage

Can charge price premium
Strong media presence
Financial muscle through strong top line
Experienced & dynamic team
Most exposed to loss of customers
Weak customer care
Billing issues & hidden charges
Technical issues due to mix of old & new infrastructure and multiple vendors
Slow process due to OT
Internal bureaucracy
Unsustainable opex structure
Opportunities Threats
Opportunities Threats
TELENOR
Telenor Pakistan launched its operations in March 2005 as the single largest direct European
investment in Pakistan, setting precedence for further foreign investments in the telecom sector.
The company has covered several milestones over the past twenty eight months and grown in a
number of directions, Telenor have grown to become a leading telecom operator in the country.
In fiscal year 2006, Telenor achieved nearly 200% growth in our subscriber base – the highest
in the industry by a wide margin.
Telenor are the fastest growing mobile network in the country, with coverage reaching deep
into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from
the hilly northern areas to the sprawling deserts in the south, at times we are the only operator
connecting the previously unconnected.

Strengths Weakness
Extensive rural market presence
Geared for 3G (Substantial high end customer base)
Presence in international financial market (No hurdle in International borrowing)
Able to hire cream resources from mkt
Use of MVNO to increase revenue
New Revenue streams (Mobile advertisements/ mobile commerce etc.)
Industry reaching maturity
Higher probability of churn in the industry
Customer loyalty low in the industry
16
MNP major loser in industry
Price war can hit more
Global Operator
Aggressive rollout of network
Brand consistency
Strong retail network
Employee loyalty (HR)
Quick reaction to competitors
100% equity financed operation
Long term vision for profitability
Strong & effective marketing
Strong vendors (Nokia siemens)
Maintaining substantial growth in revenue
Top management “Non-Pakistani”
Single Vendor
High Capex & Opex cost
ZTE equipment in northern area (untapped market)
Geared to Challenge No. 1 position
Employer of Choice
3G part of their business case
Geo/socio/economic factors
Religious elements opposition
Irrational behavior of industry (Zong)
Opportunities Threats
Opportunities Threats

WARID TELECOM
Warid Pakistan launched its services in May 2005. Within 80 days of launch Warid
Pakistan claims to have attracted more than 1 million users. According to Pakistan
Telecommunication Authority, currently Warid Telecom has 16.15 million subscribers
as of September 2008. It is ranked as the fourth largest operator in Pakistan.
Warid Pakistan claims it has the largest "postpaid" subscriber base in Pakistan. On
June 30th, 2007, Singapore Telecommunications Limited (SingTel) and Warid
Telecom announced that they have entered into a definitive
agreement subsequent to which SingTel will acquire a 30 per cent equity stake in
Warid Telecom for an estimated $758 million — valuing the company at an
enterprise value of $2.9 billion.
Strengths Weakness
Opportunities Threats

Singtel – International partner

Price perception

17
Postpaid base
Government links/influence
Affinity partners (BAL)
Owned Backbone Infra
Ericsson Network infra – limited presence of Hauwai
Dis-organized team
High Bad debts
Weak distribution structure
Low brand image
Current network footprint
Limited telecom experienced management
Blackberry to attract high end market
Synergies with group companies (BAL /Wateen / Wincom)
Singtel buyout of major stake in company
Brand revamping
Bidding for 3G license
Market reaching maturity
Socio/economic indicator
PTA regulations
HR (FnF)

ZONG
Zong is the first International brand of China Mobile being launched in Pakistan. It
is meant to
empower and liberate the people of Pakistan in every nook and corner of the
country. It will
become a part of their hearts, their minds and bring about a change in their lives
that every one desired but few thought would be possible. The core essence of
ZONG is to allow people to communicate at will, without worrying about tariffs,
network coverage, capacity issues or
congestion. ZONG will be supported by ground breaking communications, trend
setting customer service and an unmatched product offering which will redefine
rules of the game and establish ZONG as a serious contender for the number one
spot.

Strengths Weakness
Opportunities Threats
China mobile financial strength
Clear strategy to achieve market share
Long term vision for profitability
Decent brand
China – Influence on government
Perception of china “Cheap”
18
Lack of international management experience
Time of entry – 5th operator
Issues with distribution structure
Lack of Onnet volume
3G makes sense for business
Use of MVNO to add to revenues stream
Buy out of operator “Insta”
Youth market
Unable to meet customer expectation
Market reaching maturity
Socio/economic indicator
Industry can strongly react
PTA regulations
Team development

COMPETITORS MARKET SHARE

Market share of operators is considered an important tool to gauge the level of
competition in any sector of the economy. Marker shares of Cellular Mobile
Operators indicate that market is moving toward perfect competition where the
share of major operators are declining and new entrants are able to grab more
share in the market. During the year 2007- 08, Telenor has emerged as fastest
growing operator who has improved its market share from 17% in 2006-07 to
above 21% slightly higher than Ufone who also has 21% market share. On the
other hand, the leading mobile operator, Mobilink is loosing its Significant Marker
Power place rapidly and its
Share has declined by about 5 percentage points and reached 36% in 2007-08
compare to 41% in 2006-07. CMPak is also growing very fast and it has added 2.9
million subscribers, which is an impressive number and one could hoped that in
future it will grab more market share. CM Pak has added more subscribers in last
few months and it has continued its aggressive media campaign along with
infrastructure rollout which helping it to grab more market share in short span of
time.

TECHNOLOGICAL ANALYSIS
Telecommunication sector in Pakistan
The growth of Pakistan telecom sector with the usage of technology can be seen
in the sectors of
Mobile Sector
Fixed Line Sector
Wireless Local Loop Sector
Payphone Services
Internet Services

19
Telecom industry is most growing industry of Pakistan still huge investment
required for coverage. The market also has strong competition after the entrance
of China Mobile Company as player. Competitors are hiring professionals to
entertain the consumer which is resulting technological implementation and value
added services. Ufone is a place where one can live his dreams and pursue a
career that reflects his skills and passions. People in Ufone give flexibility for
change, the opportunity to learn, and providing career options with endless
possibilities The managers at Ufone believes that all employees have a right to
offer input and be involved in helping their organization grow.
All departments are working together and they wants to create a work
environment in which employees can improve their minds, continuously learn,
gain professional growth and feel inspired by similarly motivated individuals. The
Ufone takes pride in providing the best possible working environment. They take a
constant interest in ones progress by conducting evaluations and offering the
support and resources one needs. I reveal some complications in “Findings”. It has
been analyzed that people are concerned about call rates they do not prefer any
particular
company. Consumer searches good service with lowest call rates, although
companies are minimizing call rates this will result more growth in the market and
to meet the customer needs by satisfying them.

9 REFERENCES
The information has been gathered through the various sources including
Ufone – Department of Strategic Planning
Pakistan Telecommunication Authority – Annual Reports 2007-2008
www.ufone.com
www.telecompk.net
www.pta.gov.pk .
www.propakistani.com
www.financialdaily.com

20