Introduction

Cellular industry of Pakistan has matured into a

competitive and progressive market .

5 million cellular subscribers in 2004.

100 million subscribers in 2010.

Focus is shifting towards utilizing the huge potential lying

in data and value added services (non-voice).

Pakistans cellular sector is best known for low-cost mobile

connection charges.

 Cellular teledensity has reached 62.5% from just

3.3% in 2004.
Almost 92% of the land area and more than
10,000 cities/towns/villages are under the
umbrella of by cellular services.
Cellular services have reached to every nook and
corner of the country.
Challenges for the regulator and industry .

Cellular Penetration
Cellular penetration in the country has reached 62.5% at the end of January 2011.
Cellular penetration had a topsy-turvy trend in the recent past.

Subscribers Mix
104 million cellular subscribers in Pakistan at the
end of January 2011.
4.8 million subscribers increased over the last
seven months.
Positive growth trend during the last two quarters.
Mobilink reached 32.1 million subscribers.
Telenor 25.1 million cellular subscribers.
Ufone performed well during the last four quarters
and managed to increase its subscriber base to
20.4 million.
Warid has 17.6 million subscribers.
Zong holds 8.9 million figure till January, 2011.

Cellular Market Share

Cellular Revenue
Cellular revenues stood at PRs. 126.5 billion
during the first two quarters (Jul-Dec 10) of FY
2010-11.
Mobilink being the SMP has the highest stake in
overall revenue of the mobile cellular market.
Telenor stands at 2nd.
Ufone has steadily grown its revenues sitting at
the third spot.
Warid lies at the fourth spot while Zong is
catching up.

Telenor Profile
Telenor Pakistan is 100% owned by Telenor ASA.
Its operations in Asia together with Thailand,
Malaysia and Bangladesh.
Telenor Pakistan launched its operations in March
2005 as the single largest direct European
investment in Pakistan.
Telenor Pakistan a leading telecom operator of the
country.
Telenor Pakistan is creating 2,500 direct and
25,000-plus indirect employment opportunities.
It has a network of 23 company-owned sales and
service center's, more than 200 franchisees and
some 100,000 retail outlets.

Vision

We're here to help.

Mission Statement of Telenor
The mission statement of the Telenor Satellite
Networks (TSN) group is derived from the
Telenor Group's vision, which is defined to be a
driving force in creating, simplifying and
introducing communication and content solutions
to the market.

Management
functions(Planning).
Telenor vision crystallizes their customer
focus as the cornerstone of everything we
do.
Values describe what behaviors are
necessary to realize that vision.
Corporate responsibility mindset.
Everything we produce should be easy to
understand and use.
Strive to bring energy to the things.
We acknowledge and respect local cultures.

Organizing
Eight hierarchical levels as the size of
the organization approaches 25003000 employees.
Roles are clearly defined.
No instances of de-motivation.
Communications Department works out
if the ideas can be implemented.
Innovation is encouraged.
Employees are welcome to participate
and submit their ideas.

Leading
Leadership Continuum Leaders come
in all shapes and sizes.
Authoritarian and prefer to tell their
teams exactly what to do.
Believes in highly empowered
employees.
A highly diversified organization in
terms of business portfolio.
A follower of Care and Growth
philosophy.

Controlling
Guidelines for corporate ethics apply.
Line managers' responsibility to make
survey body is aware of.
Who infringe rules and guidelines
must be prepared to face the
consequences.
Act with integrity and treat with
respect your colleagues and others.
Utmost to promote equality in all
employment practices.

SWOT Analysis Pakistan Telecom

Industry
Telenor is a multinational company .
Big investment .
Strong company culture.
Aim is to provide its customers with the
best possible service.
24 hour help line services.
Remarkable network services
throughout the country.
Excellent signal quality even in the
remote areas.

2nd largest GSM service provider in Pakistan.

Coverage area is 3000 cities.
5,000 cell masts throughout Pakistan.
GPRS service and EDGE service across its
network in Pakistan.
Strategic alliance with Nokia Siemens.
Djuice to hold the youngesters.
Postpaid Package Person to target executive
class.
Cheap SMS Rates.

SWOT Analysis Pakistan Telecom

Industry
Relatively low market share.
Mobilink and Ufone have already settled down.
Switching cost of customer from one service
provider to other is low.
Demotivating factor because of less
differentiation creative new entrant might not
enter easily.
The company had to bear losses after the
propaganda was made against the Norwegian
based telecommunication company after the
publication of caricatures of the Profit.

SWOT Analysis Pakistan Telecom

Industry
Voice telecommunication space.
Obtain one of the existing cellular
companies. Valuation could range
between 8-12 times earnings.
Inefficiency and poor network service
of other networks.

SWOT Analysis Pakistan Telecom

Industry
Government is now stable.
Telecom industry of Pakistan has been
experiencing growth since last one and
half years.
Current government has liberalized the
taxation and licensing polices in order
to attract more and more foreign direct
investment in the country.
Telenor had faced religious critism.
People can even shift to other network.

Porters Five Forces Model

Competitive Rivalry

Mobilink and Ufone has a strong

rivals.
To get competitive advantage Telenor
offered many strategies regarding
features and price of products.

Bargaining Power of Buyer

Customers buying power is very

high.
Brand loyalty can only be created
through superior marketing
campaigns and service.
2000 to 2009 we can check that
Mobilinks subscribers has increased
in each year.

Threats from Substitutes

Easy availability of substituted

products(fixed line and wireless).

Potential Entry of New Competitors

Chances of success for new entrants
are very limited.
U-fone, Warid and Mobilink
threatened Telenors market position.
Market is fully saturated.

Bargaining Power of
Suppliers
Bargaining power of suppliers is at
the low level.
Deregulated and friendly
environment given by the
government of Pakistan.

PEST analysis

Political environment was not stable.

Change of government, policies will also change.
Risk of martial Law is a threat.
Dictatorship they could not be able to explore
themselves.
Government dictates the pricing regulations.
Government of Pakistan is trying to give the
maximum Protection to this sector.
(PTA) helps in the establishing Business in
Pakistan in more efficient manner.
Government is trying to provide investor friendly
environment.

PEST analysis
Economic factors controlled by SBP.
Government is influencing the working of that
department and imposing the policies made by
politicians.
Value of currency is getting down.
Rate of interest is increasing day by day it is
approximately 14.00% .
Risk rate of economy of Pakistan goes to 3 out of 5.
Currently government has increased the taxes on the
telecommunication sector.
Pre-paid customers were charged 10 per cent withholding
tax on every new load, which was deducted in advance
With 15 per cent sales tax on every call increased the
sales tax from 15 per cent to 21 percent for mobile users.

PEST analysis
Pakistani people are more social .
Opportunity for telecommunication sector to capture the
feelings of the people.
Feast and festivals.
Population is increasing rapidly which increase the number of
cellular.
Some campaigns to educate people and develop the positive
behavior in that social culture.
AJ NAE BOLO GY TO KAL BUGHTOO GY {KhamoshiKa Boycott}
(Djuice)
KRO MUMKIN (Telenor).
Low Educated people dont understand the themes of compaign
and packages.
Corruption is a major threats to industry.

PEST analysis
Telecommunication technology is changing
the behavior of the people .
Cost of telecommunication industry is
decreasing.
Introduction of CDMA (Code Division Multiple
Access) Technology in the mobile Sims.
3G mobile communications has been
earmarked.
Should upgrade the systems to meet the
requirement of the modern world.

Conclusion