Internship Report
Nelum Shehzade
BBA 2004-2008
ACKNOWLEDGEMENT
All the praise is for Allah, the most merciful and beneficent, who blessed me
with the knowledge, gave me the courage and allowed me to accomplish this
task. I am especially indebted to all my teachers for instilling in me enough
knowledge to be able to carry myself efficiently during my internship.
Secondly, I am bound to thank all the staff of Telenor. In particular I am
grateful to Ms.Irem Jaffery (Customer Relations Manager), Mr. Arif Noori
(Executive Sales and Distribution), Mr. Malik Asad (Manager Finance), Mr.
Arshad Noori (Sales Supervisor), and all KTOs ,their inspiring guidance,
remarkable suggestions, constant encouragement, keen interest, constructive
criticism and friendly discussion helped me to learn and enabled me to
complete this report efficiently.
1
DEDICATION
I dedicate this report to my parents and friends in recognition of their worth
and to my teachers who are the guiding force for me and it is their effort and
hard work that showed me the path of success and prosperity which would
be there for me for the rest of my life.
“Keep your dreams alive. Understand to achieve anything requires faith and belief in
yourself, vision, hard work, determination, and dedication. Remember all things are
possible for those who believe.”
- Merlin Olsen
2
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...............................................................................................................................4
1. INTRODUCTION .....................................................................................................................................5
1.1
CENTRAL BACKGROUND INFORMATION .............................................................................................5
1.2
COMPANY BACKGROUND ....................................................................................................................8
1.3 TELENOR IN PAKISTAN ......................................................................................................................... 11
a) Vision and Values .......................................................................................................................... 11
b) Largest direct European investment in Pakistan ............................................................... 12
c) Highest (ARPU) in the market .................................................................................................. 13
d) Fastest growing mobile network ............................................................................................. 13
e) Infrastructure expansion ............................................................................................................ 13
f) Employment opportunities .......................................................................................................... 14
g) Social and corporate responsibility......................................................................................... 14
h) Achievements ................................................................................................................................. 14
i) Future Projects ................................................................................................................................ 15
2. COMPANY ANALYSIS ........................................................................................................................ 16
2.1
2.2
2.3
2.4
3.
OPERATION ANALYSIS ...................................................................................................................... 16
FINANCIAL ANALYSIS........................................................................................................................ 19
HUMAN RESOURCE ASSESSMENT .................................................................................................... 20
MARKETING ANALYSIS ..................................................................................................................... 22
ENVIRONMENTAL ANALYSIS ..................................................................................................... 25
3.1.
INDUSTRY AND MARKET ANALYSIS ................................................................................................. 25
3.1.1. Major product lines ............................................................................................................ 25
3.1.2. Market Segmentation ........................................................................................................ 26
3.1.3. Growth Rate for Entire Industry .................................................................................... 28
3.2. COMPETITOR ANALYSIS ...................................................................................................................... 30
3.2.1.
Major Competitors ............................................................................................................. 30
3.2.2.
Market share of Competitors ........................................................................................ 31
3.2.3.
Competitors Goals ............................................................................................................. 32
3.2.4.
Competitors Strategies ................................................................................................... 33
3.3.
TECHNOLOGY ANALYSIS .................................................................................................................. 33
3.3.1.
Technical methods affecting industry ........................................................................ 33
3.3.2.
Innovation ............................................................................................................................ 34
4.
DEPARTMENT WORKED DURING INTERNSHIP. ............................................................. 37
5.
IDENTIFICATION OF A MAIN PROBLEM ............................................................................. 42
6.
FINDINGS ............................................................................................................................................. 43
6.
CONCLUSION AND RECOMMENDATIONS ........................................................................... 44
7.
APPENDIX ............................................................................................................................................. 48
3
Executive Summary
Internship was my first step in practical life, through which I learnt a lot and
it has aided me in being well equipped with valuable experience that would
help me once I enter the professional life after the completion of my studies.
During the month of July and August 2007, I worked in Telenor as an internee.
My association with this company was being a part of the Customers Services
Department. It was a great experience for me and it helped me in realizing
where my potential lies. What I learnt at Telenor over the weeks was how to
get along with the people that I have to work with everyday, building
relationships
with
people,
building
confidence
and
improving
my
communication skills. This internship has also prepared me for my future
career in sales and marketing. The experience has taught me responsibility,
teamwork and how to handle people in tough social situations. Even though
the nature of work was quite basic as an internee, nevertheless I got to see
what practical life is. This internship overall has been a great experience.
This report gives a profile of Telenor and an insight to analysis of Telenor in
terms of operations, finance, human resource and marketing. Report also
covers environmental analysis of industry , market and technologies .This
report also reflects my learning and experiences at Telenor along with my
responsibilities and the tasks that I performed. Last part of the report consists
of some recommendations and suggestions that I have given.
4
1. Introduction
1.1 Central background information
a) What is Telecommunication?
Telecommunication is derived from Greek word “Tele” which means over a
distance, “Communicara” which means the ability to share.
Telecommunication literally means “the sharing of information over a
distance”. Telecommunication affects how and where you do everything lives,
work, play, socialize, entertain, serve, study, teach, rest, heal and protect.
The process of transmitting or receiving information over a distance by any
electrical or electro – magnetic medium. Information may take the form of
voice, video or data.
b) Telecommunication in Pakistan
Pakistan Telecommunication Authority (PTA): Pakistan Telecommunication Authority being regulatory body is promoting
the telecom sector since 1997. The Authority is responsible for regulating the
establishment, operation and maintenance of telecommunication system and
provision of telecom services in the country.
It promotes and protects the interest of end users of telecommunication
services. Pakistan under World Trade Organization (WTO) commitment is
5
now ready to deregulate the whole of telecom sector. Deregulation policy is in
final stages and will be announced shortly.
In the year 2002 – 03, the PTA has stepped forward to encourage the telecom
operators and transfer of technology in Pakistan.
In this regard, royalty of Internet Service Provider (ISP) has been reduced
from 4 to 0.66 percent of the annual gross revenue. For card payphone service
and cellular mobile service, it was reduced from 4 to 2 percent respectively of
grass revenue in the year 2001.
Similarly with the launching of prepaid connections by cellular companies,
the numbers of mobile phones subscribers have reached to 2.5 million up to
June 2002, showing a growth of 105.8 percent.
The introduction of new services in terms of technology advancement in the
sector includes broadband Internet services, General Packet Radio Services
(GPRS) facility, and internet connectivity on mobile phone. The PTA has
issued 1,278 radio – based licenses and granted permission to install 291
Spread Spectrum Radio Lines.
For the value added services, Pakistan Telecommunication Authority has
issued total 431 licenses including 177 licenses for card payphone services and
121 for electronic information service.
6
For voice and data network services, 24 and satellite 8, trunk radio services 12,
store and forward fax service 9, video conference 1 and 25 data
communication network services license were issued up – till June 2003.
Telenor acquired the license for providing GSM services in Pakistan in April
2004,
The license terms stipulate that by year 4, Telenor will cover 70% of Pakistan's
297 administrative Tehsil headquarters. Telenor will fulfill the license
requirements and provide superior quality coverage.
Telenor has successfully signed interconnect agreements with all four
incumbents during December 2004, allowing its subscribers to exchange voice
and data with subscribers on all active mobile networks including Paktel,
Instaphone, Ufone, Mobilink and Warid telecom.
7
1.2 Company background
a) History of Telenor group
For over 150 years, telecommunications has played a vital part in the
development of modern Norwegian society. As the incumbent provider,
Telenor has been the driving force in the development of a highly
sophisticated home market and is now one of the largest mobile operators
worldwide.
b) The introduction of the telephone
The years of 1855 to 1920 was a pioneering period in the history of Norwegian
telecommunications. During two generations, the Norwegian society
experienced the introduction of three new means of communications: the
telegraph in the years of 1850, the telephone around 1880 and wireless
telegraphy – radiotelegraphy – at the turn of the century. The spread and use
of telecommunication was modest compared to later periods, but as entirely
new features they received a fair amount of attention.
c) Pioneer in mobile communications
8
Telenor is a pioneer in mobile communications. Manual mobile telephony
services were introduced in Norway in 1966, as a forerunner to the automatic
NMT system, which appeared in 1981. Its digital successor, GSM, was
introduced in 1993, and third generation mobile network, UMTS, was
launched for commercial use in 2004.
d) Norwegian telecom becomes a public corporation
In 1994, Norwegian Telecom was established as a public corporation. One
year later, it changed its name to Telenor. In December 2000, Telenor was
partly privatised and listed on the stock exchange.
e) International expansion
Telenor has undergone momentous change as a group – from being a strong,
national operator with significant international holdings to be coming an
international, world-class provider of mobile communications services.
Telenor is organized into three business areas; Mobile operations covering 12
countries, and Fixed-line and Broadcast services covering the Nordic region.
f) The Telenor Group 2007
More than 143 million mobile subscribers worldwide .
Strong subscription growth, particularly in Asian operations.
Ranked as the world seventh largest mobile operator.
Revenues 2007: NOK 92,5 billion
Workforce 2007: 35 800 man-years
Listed on the Oslo Stock Exchange and head quarter in Norway
9
g) Global opportunities
Telenor is one of the largest mobile operators worldwide with ownership
interests in 12 mobile operators across Europe and Asia, and as a consequence
a whole world of job-opportunities is opening up.
Mobile operators and the markets in which Telenor operate are as follows:
Sonofon, Denmark
Telenor, Norway
Telenor Sweden
Kyivstar, Ukraine
Pannon, Hungary
Promonte, Montenegro
Telenor Serbia
VimpelCom, Russia
Telenor Pakistan
DiGi, Malaysia
DTAC, Thailand
Grameenphone, Bangladesh
10
1.3
Telenor in Pakistan
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its
operations in Asia together with Thailand, Malaysia and Bangladesh. Telenor
Pakistan launched its operations in March 2005. Market share of Telenor is
21% currently.
a) Vision and Values
Telenor Vision
Telenor vision is simple: We're here to help
We
exist
to
communications
help
our
services
customers
in
get
their
the
full
daily
benefit
of
lives.
The key to achieving this vision is a mindset where every one of us works
together: Making it easy to buy and use our services. Delivering on our
promises. Being respectful of differences. Inspiring people to find new ways.
Core values of Telenor
Make it Easy
We're practical. We don't complicate things. Everything we produce should
be easy to understand and use. Because we never forget we're trying to make
customers'
lives
easier.
Keep Promises
11
Everything we set out to do should work, or if it doesn't, we're here to help.
We're
about
delivery,
not
over
promising,
actions
not
words.
Be Inspiring
We are creative. We strive to bring energy to the things we do. Everything we
produce should look good, modern and fresh. We are passionate about our
business
and
customers.
Be Respectful
We acknowledge and respect local cultures. We do not impose one formula
worldwide. We want to be a part of local communities wherever we operate.
We believe loyalty has to be earned.
b) Largest direct European investment in Pakistan
Telenor as the single largest direct European investment in Pakistan, is 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 has grown to become a leading
telecom operator in the country. In fiscal year 2006, it achieved nearly 200%
growth in their subscriber base – the highest in the industry by a wide margin.
12
c) Highest (ARPU) in the market
Since its launch of services in March 2005, Telenor Pakistan has exceeded all
expectations: It has created the second largest mobile network and the largest
and most advanced data network in the local market, turned into the second
highest revenue-generating mobile player with the highest Average Revenue
Per User (ARPU) in the market, and become the second largest mobile player
in the market with 18 million active subscriptions in little more than 3 years of
operations. During the first half of 2008, Telenor Pakistan added 3.24 million
subscriptions against the industry average of 1.63 million, taking 33% of the
market share of net additions over the period – the highest in the mobile
sector in Pakistan.
d) Fastest growing mobile network
Telenor is 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 Telenor is the only operator connecting the
previously unconnected.
e) Infrastructure expansion
Telenor is keeping ahead by investing heavily in infrastructure expansion.
With USD1 billion already invested, Telenor has extended agreements with
their vendors for network expansion and services until 2009. The agreements,
with a potential to result in USD750 million worth of orders from Telenor
Pakistan, are some of the biggest of their kind in the industry.
13
f) Employment opportunities
The company has created 2500 direct and more than 25000 indirect
employment opportunities with 100,000+ retail outlets and 200+ franchises in
addition. 99.9% of these employment opportunities belong to Pakistanis.
g) Social and corporate responsibility
Initiated with a relief effort worth 95 million rupees in the wake of the
devastating earthquake of October 2005, Telenor Pakistan’s community
contributions
have
extended over
the
years
to include
education,
empowerment, enterprise, and environment - with special focus on bringing
the telecom promise within the grasp of the most disadvantaged sections of
the society.
In Pakistan the company came out with the first-ever Corporate
Responsibility report in the mobile industry last year, setting new standards
of transparency and responsibility. Telenor Pakistan is well-recognized by the
development sector in Pakistan for the amount of Foreign Direct Investment it
has brought to the country.
h) Achievements
Telenor Pakistan has received several awards for its solid performance in key
areas of activities:
Federation of Pakistan Chambers of Commerce & Industry’s Telecom
Excellence Award in Foreign Direct Investment in June 2006
14
SAARC Communication Industry Conference 2007’s Most Innovative
Mobile Operator Award and Mobile Operator with the Most Consumer Pull
Award
All Pakistan Dawn Aurora Advertising Awards in three of five
nominated categories in March 2007
The National Forum for Environment & Health’s Annual Environment
Excellence Awards 2008
Lahore Chamber of Commerce & Industries’ Appreciation Award for
the Largest FDI and Rawalpindi Chamber of Commerce & Industries’
Achievement Award 2008
The Helpline Trust’s 2nd Corporate Social Responsibility Award 2008
i) Future Projects
Telenor Pakistan is committed to bringing true mobile innovation to the
under-served masses of Pakistan. The company has picked up two Universal
Service Fund projects in order to provide connectivity to the yet unconnected
in the remotest areas of Pakistan. It aims to invest strongly for further
network expansion into the rural areas and for the rollout of third generation
of mobile technology (3G) in Pakistan.
15
2. Company Analysis
2.1
Operation analysis
In April 2004 Norwegian mobile telecoms operator, Telenor, bid for and
ultimately won a license to operate a cellular network in Pakistan. The
winning bid of $291 million secured one of two new nationwide licenses in
Pakistan for mobile operation. Telenor has secured a 15-year license, which is
renewable upon application for the same fee; only 50% of the license fee is
payable in the first year, and the balance over the next ten years. Additional
fees for Telenor include 2.5% of the annual gross revenue. The license covers
the operation of Global System for Mobile Communications (GSM), General
Packet Radio Service (GPRS) and Enhanced Data Rates for Global Evolution
(EDGE) technology for the network.
Pakistan has the sixth largest population in the world - approximately 150
million. There are currently four mobile operators in the country. Mobile
penetration at the end of 2003 was just 2.3% with a subscriber base of 3.4
million, while fixed line penetration was approximately 2.4%. Many
geographic areas in Pakistan are without telephone coverage. To accompany
recent positive economic development in Pakistan and the inherently low
mobile penetration, high growth within the mobile segment is expected.
Telenor's previous activities in Asia have focused on the development of
mobile networks from scratch, and so the current activity is a continuation of
their previous successful strategy. Telenor has formed a subsidiary company
16
to operate the business in Pakistan called Telenor Pakistan Pvt Ltd. Latest
reports have estimated the amount of investment in Pakistan mobile
infrastructure by Telenor to amount to $1 billion.
a) Mobile Infrastructure Contractors
Nokia supply the GSM Base Station Subsystem (BSS) solution, GPRS core
system and Network Switching Solution (NSS) DX 200i series, which is easily
upgradeable to 3G Wideband Code-Division Multiple Access (WCDMA)
technology in the future. In addition, Nokia
also provide turnkey
implementation of the network including project management, network
planning and design, site acquisition, civil engineering and supply and
installation of hardware and software. They also provide software
maintenance, emergency support, hardware services and maintenance and
training for Telenor Pakistan personnel.
Siemens provide turnkey implementation of the new network including
supply and installation of all the infrastructure components for setting up a
GSM / GPRS / EDGE network. These include switching technology, mobile
transmission and receiving stations, intelligent networks and GPRS hardware
and software. Siemens carry out network design, site acquisition, civil
engineering and project management. They also provide the initial operations
support service for the network and provide training in software support and
maintenance to Telenor Pakistan Personnel.
b) Licenses and network
Telenor Pakistan currently holds nationwide GSM 900/1800 licenses. In
addition the company holds a license to build and operate a mobile network
17
in Azad Jammu and Kashmir (AJK) and the Northern Areas. Telenor Pakistan
also holds a Long Distance and International (LDI) license under which it
provides nationwide and international call services. After launching EDGE in
August 2006, Telenor Pakistan has the country's widest EDGE coverage,
allowing access to high-speed Internet and data services.
c) Management of Telenor
The top management of Telenor comprise of versatile and highly educated
people to cater the need of company. Under the supervision of top
management, employees are highly motivated and perform sophisticated and
day to day operations.
The top management includes:
Jon Eddy Abdullah, Chief Executive Officer
Irfan Wahab Khan, Executive Vice President Corporate Affairs &
CEO LDI
Lars Christian, Chief Marketing Officer
Peter Dindial, Chief Technical Officer / Vice President Technical
Division
Khalid Shehzad, Chief Information Officer / Vice President IT
Division
Peter Kuncewicz, Chief Finance Officer / Vice President Finance
Division
Nayab Baig, Vice President Human Capital Division
Ronny B. Naevdal, Vice President Strategy
A brief introduction of these effective brains is given in annexure.
18
2.2
Financial analysis
Telenor brings with it the initial investment of 2 Billion in Pakistan. In
Pakistan Telenor is very much successful and continuously expanding its
network infrastructure. Financial conditions of the company are very stable.
Telenor Pakistan has announced excellent financial results for Q4 2007, with 2
million subscriptions added to its base within the 3-month period.
Most financial indicators of Telenor Pakistan are good: Revenues have soared,
subscriber share is steadily increasing. The EBITDA (earnings before interest,
tax, depreciation and amortization) is positive for the first time, though the
EBITDA margin is only 7%. Another thing which needs to be noted that
Telenor’s operating losses have reduced in 2007. The company also grew its
revenue by 18% in local currency from Q3 2007 and improved its EBITDA
margin by 17% from Q3 2007.
The average revenue per user (ARPU) has stabilized around Rs 280 per month
for Pakistan - its low but that’s the reality of the market.
19
2.3
Human resource assessment
The company has created 2500 direct and more than 25000 indirect
employment opportunities with 100,000+ retail outlets and 200+ franchises in
addition. 99.9% of these employment opportunities belong to Pakistanis.
Telenor offers exciting and challenging careers with competitive pay,
excellent benefits and exceptional advancement opportunities. Telenor care
about its employees and provide them with a relaxed and enriching working
environment. Telenor training and further education programs ensure a high
professional standard amongst its employees. Telenor believe that a talented
and loyal workforce plays a crucial role in the organization’s ongoing
business success.
Equal opportunities for all
Telenor maintains a policy of non-discrimination towards all employees and
applicants for employment. All aspects of employment with Telenor are
governed by merit, competence, suitability and qualifications, and are not be
influenced in any manner by gender, age, race, color, religion, national origin
or disability. Today, Telenor workforce proves that; with 18% women
working at all levels in the organization, both foreign and local educational
backgrounds.
Focus on management development
Telenor's management and organization is imbued with joint values. The
Group Management has devised five leadership requirements that apply to
20
all managers in the Group, and all management groups shall discuss what
these requirements mean to them. The demands are:
--Passion for business
--Change and constant renewal
--Operational excellence
--Empower people
--Integrity
All managers are subject to annual evaluations based on these management
criteria.
HC at Telenor Pakistan
Human Capital Division at Telenor believes in continuous improvement and
is taking the standards of service to the utmost levels of excellence.
From providing the best administrative support to facilitate employees work
life to creating benchmark security solutions, Telenor is a team of enthusiastic,
energetic young people who are geared to perform the best always.
Telenor managed to create a culture of passion for business, operational
excellence and constant renewal and committed to assisting employees in
exploring, developing and maximizing their full potential, encouraging
continuing education through internal and external training and development
opportunities.
21
2.4
Marketing Analysis
The marketing mix is the set of controllable, tactical marketing tools that
Telenor blends to produce the response it wants in the target market. The
many possibilities can be collected into four groups of variables known as the
“four Ps”: product, price, place, and promotion.
PRODUCT OR SERVICES
Telenor is offering mobile services having many more value added features
with it because of its EDGE/GPRS technology. It offers voice conversation
along with SMS, MMS, GPRS, WAP and video conferencing. All services are
based upon high quality and considerable charges. Brand image is created out
of the product or services provided.
PRICE
price of each and every service of Telenor
related to both prepaid and
postpaid are comparatively competitive.
Telenor is continuously coming up with new price offers and packages to
cater its different segments.
PLACE
Telenor believes on extensive distribution . Therefore it has launched its
services all over Pakistan covering all major cities, highways and far flung
untapped areas.
22
Telenor has partnered with oil marketing companies such as PSO, Caltex and
Total Parco to make Telenor Prepaid products & services available at
convenience stores located at their petrol stations.
Telenor is also operating Telenor branded shops located in large retail outlets
which sell Telenor Prepaid products & Services
source: www.telenor.com.pk
Distribution is a competitive advantage for Telenor with that comes:
High level of retail penetration –maximize sales
Reinforce brand image & positioning
Low distribution cost
High channel loyalty through fair profitability for channels
PROMOTION
Telenor is spending large budget on promotion campaign.
23
Promotion mix includes the usage of all the tools like:
Personal selling
Public relations
Sales promotion
Advertisement (print,electronic,direct marketing and out of home
advertising)
Before it’s starting of services commercial ads were aired through electronic
and paper media. Initially their ads gave the people an opportunity to
understand the company’s profile. Then after launching it started its mega
advertisement campaign.
There are different types of banners and billboards all across the country on
important public places. Telenor is distributing pamphlets through service
stations and big super stores.
Also there is big and comprehensive website of Telenor of Pakistan. This
website contains all relevant material which a customer wants to understand .
Telenor uses every media to promote its product and value added services.
24
3.
3.1.
Environmental Analysis
Industry and Market Analysis
3.1.1. Major product lines
Telenor group has major product lines including, mobile telephony, fixed line,
broadband TV networks. But currently in Pakistan Telenor’s only product is
mobile telephony.
The two product lines according to product segments are:
Prepaid packages (for women, youngsters, children )
----Talkshawk
----Djuice
Post paid package (for corporate clients)
----Persona
Details of these product lines in given in annexure.
Hastily entering into the market Telenor focused on the following
differentiation strategy for its prepaid and post paid products:
 Superior quality service
 No time limit for incoming calls
 Easy load (recharge up to rupees 10 and from any place)
25
3.1.2. Market Segmentation
A segment is a group of people with similar wants which a company sees as a
potential differentiated lot.
Telenor has focused on effective segmentation for its marketing efforts. It
implied two types of segmentation techniques i.e. demographic segmentation
and geographic segmentation. Telenor is currently focusing on all three strata
of the society, i.e. upper, middle and lower. It offers the rates of services as
low as a consumer imagines that it should be.
Demographic segmentation
Telenor is trying to attract the customers of all age, income, and occupations
etc.
It offers value added services such as WAP, ring tone downloads etc. to
attract the youngsters. Further, it offers no maximum time limits for
recharging which is attractive for lower income group people. Concept of
easy load was very first time being introduced in Pakistan to cater lower
income strata and students.
Behavioral segmentation
Telenor has also adopted a behavioral segmentation strategy. In Pakistan
buyer has sufficient knowledge of services that the mobile companies are
offering in a market. Due to this factor, they can easily compare the price and
value of services of any company. That is why Telenor has shown to everyone
through different means of media of all of its facts and figures of portfolio.
26
People of Pakistan have an attitude towards low cost and good quality.
Observing that factor Telenor is trying to give the services more than good.
Telenor is catering entire population. The basis target market segments are as
follows:
Market dominated by low-end, low-ARPU customers (largely
untapped)
Relatively large emerging middle class segment (Basic in Telenor
Terminology)
Strong youth culture with needs similar to other markets
Private postpaid almost non-existent
Small but profitable (high ARPU) Corporate/SME segment
Women a largely untapped segment
Addressing the Segments
Telenor Group’s segmentation model has been adopted and
adapted to cover the Pakistani market.
Extensive Market research has been conducted and is updated on a
regular basis
Initial offerings targeted
–primarily at Basic Consumers (Middle ground, prepaid)
–secondarily at low end users
–third at Corporate/SME customers
Going forward, the offerings, distribution and communication will
broaden and ultimately target all relevant segments.
27
3.1.3. Growth Rate for Entire Industry
Telecom industry is booming throughout the country as two million mobile
subscribers are added every month throughout the last year.
Previous year the sector grew by 80 percent while average growth rate in last
four
years
has
been
more
than
100
percent.
Network coverage of almost 90 percent of the total population of Pakistan has
made the industry even more attractive for foreign investment. Industry
analysts said that there is still a great margin of growth in this industry, in
2003-04 the sector was offering 466,068 direct and indirect employments and
now in 2006-07 it is more than double at 1,366,698 employment opportunities.
An intense competition is seen in the telecom sector and all the companies are
trying to take edge on each other, which is helping the subscribers as they are
getting advanced and new packages at low prices. Here is a table depicting
cellular
subscribers
in
Pakistan.
CELLULAR SUBSCRIBERS
Mobilink
Ufone
Total
Growth
Rate
112,000
306,493
15.39
Zong
Instsphone
80,221
Telenor
Warid
2000
114,272
2001
309,272
116,711
96,623
220,000
742,606
142.29
2002
800,000
350,000
218,536
330,000
1,698,536
128.73
2003
1,115,000
550,000
319,400
420,000
2,404,400
41.56
2004
3,215,989
801,160
470,021
535,738
5,022,908
108.90
2005
7,469,085
2,579,103
924,486
454,147
835,727
508,655
12,771,203
154.26
2006
17,205,555
7,487,005
1,040,503
336,696
3,573,660
4,863,138
34,506,557
170.2
2007
26,466,451
14,014,044
1,024,563
333,081
10,701,332
10,620,386
63,159,857
80.70
2008
32,032,363
18,100,440
3,950,758 351,135*
18,125,189
15,489,858
88,019,812
39.4
July-2008
32,056,336
18,368,074
4,446,024 351,135
18,329,428
15,774,299
89,325,296
* Revised
Note: Including AJK & NAs
SCO Cellular Mobile Subscribers in AJ&K and NAs for Mar-08 are 172,531
Source: PTA 2008
28
According to the Pakistan Telecommunication Authority (PTA) Industry
Analysis Report 2007, out of 376 tehsils across Pakistan, almost 77 percent are
covered with mobile networks, bringing the figure to 290.
In 2004 there were less than 2000 cell sites installed by all mobile operators for
provision of mobile services. Today total cell sites of all mobile operators are
more than 17,500.
The factors affecting favourable growth rate for telecom industry in Pakistan
are:
High growth potential
Forward looking telecom policy
Investment friendly climate
Good regulatory execution
Acceptable political and economic situation
All these factors lead to growth of telecom industry in Pakistan. The mobile
density has been increased drastically. The table shows the data of
cellular
mobile density and growth rate of industry.
CELLULAR MOBILE
DENSITY
Year
Mobile Density
2000
0.22
2001
0.52
2002
1.16
2003
1.61
2004
3.29
2005
8.30
2006
22.21
2007
39.94
2008
54.70
July-2008
55.62
* Revised
Note: Including AJK & NAs
Source : PTA 2008
29
3.2.
Competitor Analysis
3.2.1. Major Competitors
Today, Telenor faces the competition as follows:
Direct:
Mobilink
Ufone
Warid
Zong
Indirect
PTCL
Calling card providers
Wateen Telecom
Worldcall wireless
PTCL wireless
Go CDMA
Smaller WLL operators
30
3.2.2. Market share of Competitors
Market share of cellular companies in pakistan 2008
warid
17%
zong
4%
mobilink
37%
telenor
20%
ufone
22%
source: PTA may,2008
Mobilink
Mobilink’s share of market is down to 37percent. Mobilink is the winner in
the race to capture the lion's share of the mobile network market, is Mobilink,
with a notably higher volume of subscriptions and a carefully targeted valueadded services.
Ufone
The second largest operator in Pakistan is the Pakistan Telecom operated Ufone, which had 16.16 million customers at the end of 2007. In terms of market
share, it gained 22percent
31
Warid
Warid currently holds almost 17.29 percent market share in Pakistani cellular
industry, with 14.76 million customers as of April 2008.
Zong
China Mobile has injected more than $800 million into Pakistan’s telecom
sector after a landmark takeover of Paktel’s operations late February 2007.
Zong has been growing at a brisk pace, it has captured a market of 4% in first
few months of its launch with 5 million subscribers.
3.2.3. Competitors Goals
The collective goal of all the competitors of Telenor is to:
Increase their market share by increased subscriber base.
Increase network reliability and premium connectivity.
Excellence in customer service
Customer retention.
Brand building.
Seamless migration to the 3G technology.
Ensure low cost operations
32
3.2.4. Competitors Strategies
The competitor’s strategies to compete in market and attain their goals are as
follows:
Accuracy in billing
Extensive coverage.
Competitive pricing.
New products for more market segments.
Marketing initiatives.
Expansion of high quality value added services.
Strengthened GPRS/EDGE network.
Use of a more contemporary style to give a more approachable
image
Leveraging group knowledge building
3.3.
Technology Analysis
3.3.1. Technical methods affecting industry
The current technical methods affecting the telecom and cellular industry are
as follows:
3G technology
EDGE/GPRS
Mobile broadband
33
3.3.2. Innovation
One of the competitive edge of Telenor is its innovation. Telenor has work on
the different innovative ideas for improving its services and brand image in
Pakistan. Following are some of the innovative steps Telenor took:
Easy load
With entry into Pakistani market , Telenor was market leader in introducing
easy loads from rupees 10 to 1000 .
Largest EDGE/GPRS data network
Telenor Pakistan has taken the lead by offering host of data services through
Pakistan’s largest EDGE/GPRS data network. It offers services like Mobile TV,
Ask Telenor, Teledoctor, local and international MMS, PicShare and wireless
laptop connectivity, providing greater benefit to the end user.
Using EDGE, operators can handle three times more subscribers than GPRS,
triple their data rate per subscriber, or add extra capacity to their voice
communications.
Mobile TV
Telenor Pakistan offers Mobile TV offer. The service enables customers to
watch TV content on their GPRS/EDGE-enabled handsets anywhere, anytime.
This is a unique and innovative service in Pakistan, and at par with only a few
other mobile operators in the region.
34
PixSense Multimedia Management Solution for Mobile Subscribers
For the first time in Pakistan, Telenor’s PicShare service gives users a unique
new way of sharing their memories online and through their mobile handset.
Telenor Pakistan, which has taken the leadership role in the industry by
offering a platform which helps its subscribers manage their media
transparently and also allows building of mobile user communities thereby
building a more lasting relationship with their subscribers.
Telenor Pakistan & Opera Software
Telenor Pakistan and Opera Software have partnered to provide users with a
uniquely powerful and efficient Internet experience. Starting immediately,
Telenor Pakistan customers can surf the Web with the revolutionary Opera
Mini browser.
Environmental benefits
Telenor is the first in industry to have started using solar energy to power a
commercial site.
Crisis interventions
Within hours of the most tragic catastrophe to hit Pakistan in its
history, Telenor Pakistan activated its efforts to help the
earthquake survivors.
35
Telenor Pakistan made a sizable donation to Shaukat Khanum
Memorial Trust in order to support the cause of treating cancer
patients.
Telenor Pakistan contributed to a fundraiser for the restoration of
the historic Rohtas Fort.
Telenor Pakistan, continuing with its efforts to provide relief to the
flood-affected people, has distributed food and drinking water to
almost 10,000 families in the badly-hit areas of Sindh and
Balochistan.
The Corporate Responsibility unit recently teamed up with
Pakistan
donations
Red
Crescent
from
Society
to
help
Telenor
collect
blood
employees.
36
4.
Department worked during
internship.
Departments in Telenor
I did my internship in the Telenor franchise Bank Road ,Saddar, where
following departments are currently working:
Customer Care
Telenor franchise’s main department is customer care. Satisfying
customers queries and facilitating with products and information is the
task performed by this department.
Sales and Distribution Department
Marketing department in Telenor franchise was responsible for sales
and distribution to business clients. Telenor franchise expand sales by
distributing sims to authorized dealers and easyloads to small shops in
vicinity of local people. Marketing department keep a record of all such
sales and provide the business customers with latest offers and
products to reach to masses.
Finance Department
The finance department was very small and looks after the daily
expenditures and sales of franchise. Payroll of the employees is also
made by this department. At the closing of everyday the manager
reports to Telenor Business centre on mall road, Rawalpindi for the
profits or losses.
37
Tasks performed at Telenor customer care Department.
During my six weeks of internship I performed many duties in Telenor
customer care department which added to my experience and learning. All
the tasks that I executed gave me a sense of responsibility. Sometimes there
was too much responsibility on me; too much burden was there. At times
things were slow, yet I wanted to work more because I had blurred the lines
between work and fun. I performed following tasks and duties during my
Internship:
Customer Service department
Telenor know how important it is that customers receive a satisfactory service
from their staff at all times. I was briefed by customer care manager Ms. Irem
Jafferey how to behave with customers. Some of the important things in
customers department that I was told to do are:
Be polite, helpful and treat customers with respect.
Listen carefully in order to understand and respond to
customers needs.
Give customers name and wear a name badge.
Give them an explanation of customers actions
Provide accurate product information on all Telenor Pakistan
services and products, and answer customer’s questions
correctly and quickly.
Keep promises and be honest.
Encourage customers to give their feedback.
38
Service Connection activation
Telenor
customers deserve quick response when they first order their
services. Therefore to, assure that I filled the new connection form by
verifying information from customers NIC
prepaid connections
and the customers ordering
can have service activated within a few minutes of
fulfilling all the ordering requirements.
Easy load
At Telenor I did easy load for customers in the first few days of my internship.
Every transaction generates a number and I keep record of all the transactions
of the day. This information was used for daily closing accounts of franchise.
Dispute Resolution
Telenor franchise efforts are focused on quick and appropriate action that is
necessary to solve the problem and satisfy customers. My duty was to satisfy
customers by providing proper information. My supervisor guided me on
every problem that came my way from arrogant and rude customers to
serious disputes.
Billing Information
I gave billing information to post pay customers by entering the mobile
number in data base of Telenor.
I also reconnect the service if due to
delinquency, the service was disconnected. Billing and other account
information to settle any valid complaints was also given to customers on
request.
Security and Confidentiality of Information
39
Telenor make every effort to protect customers’ privacy and to assure a
secure network for the confidentiality of their information. In addition
customers’ personal information is safe with telenor and be strictly guarded
as per laws of Pakistan. For this purpose I was given special lesson and I
signed un undertaking for not disclosing and misusing information.
Making Phone Calls for Confirmations
Meetings, seminars, trainings and dinners are held frequently in Telenor
where management throughout Pakistan is invited.. The duty of HR
Department is to invite employee usually through email. My job was to make
phone calls to the Management of Telenor franchise reminding them about
the meetings and confirming whether they are going to make it or not. I
handed over to my supervisor, the names of all those people who wouldn’t be
able to come.
Data Entry
The customer care department daily receives different types of forms and
data including Sim registration forms, Sim replacement forms, feedback forms,
complaint forms etc. My task was to enter the data in Telenor database.
Dispatching Letters
Telenor
is a centralized organization in which every decision has to go
through the head office. So a lot of letters, applications and recommendations
were dispatched daily to Telenor head quarters to Lahore, and Karachi. My
supervisors only mentioned the city and it was my job to write the postal
address of Telenor office on an envelope containing the document and deliver
it at the reception to be dispatched.
40
Managing Visitors
Many people came to visit the customer care department for solution of their
complaints. I gave information to the customers and solve the problems by
providing them effective and sufficient guidance. In customer care
department, customer is always given more priority and respect, and we
listen to them with all ears. It was my duty to satisfy customers on their all
queries regarding calling call rates, package conversion, VAS, compatibility of
handsets and enabling GPRS on their number according to their requests.
Working with Documents
Office work is all about papers and documents. My supervisors always
required arranging and rearranging documents. I helped them in their work
by stapling and unclipping documents. I also make many photocopies of
documents. I also faxed papers and documents all over the country and
sometimes outside the country. Scanning was also a everyday job for me, I
used to scan documents and papers and sometimes those documents were to
be faxed to other offices of Telenor.
41
5.
Identification of a main problem
I was appointed for internship at a Telenor franchise at bank road
sadder .This franchise is also carrying out distribution activities for the
Telenor business centre mall road sadder.
The main problem this franchise faced is of a small place according to the
customer traffic. This franchise also caters the customers from Fateh Jang . So
a lot of people came with complaints and problems to this franchise. The
place to accommodate these people is very much insufficient. There are no
waiting seats for people, as a result people have to wait while standing for
their turns in long que for long time periods. This creates a negative image of
the company.
Another problem with the franchise is that franchise has a limited access on
customer service database. Franchise can only perform general customer care
tasks like generation of new numbers, complaint registration, solving minor
issues like activating value added services etc. call , sms or mms details and
transferring of number on other name and on other confidential issues
franchise has no access. So when some customers asks for such
services ,franchise has to divert them to business centre .
Another problem faced by me and employees at customer care department is
of arrogant and rude customers. Special training is given to people who are
serving the customers directly. Staff at customer care department was also
not enough. Franchise is dealing with so many customers each single day but
due to small place , no of employees is also few. This adds extra burden and
42
stress to the employees serving to customers. Some times this lead to
demotivation of employees. Also the shift timing is 8 hours which makes
customers representatives very tired as there are no official breaks in between.
6.
Findings
While working with Telenor , I learned practical knowledge of the business
world. I find it interesting to relate my bookish knowledge with the practical
things.
Following are my findings regarding Telenor :
Telenor is the biggest investor in telecom industry with a FDI of 2
Billion initially, 3.6 Billion to date and still investing more.
Currently according to PTA 2008 ,Telenor has a market share of
20%.
The company has created 2500 direct and more than 25000 indirect
employment opportunities with 100,000+ retail outlets and 200+
franchises in addition. 99.9% of these employment opportunities
belong to Pakistanis.
Telenor is an innovator , quality oriented and customer focused
company.
Telenor believes on good governance and corporate responsibility.
Telenor focus on reaching masses with extensive distribution
strategy.
The Telenor outlook for 2010-2011 is :
 SIM penetration above 70%
 Market share above 25%
 EBITDA in mid thirties
43
6.
Conclusion and Recommendations
Telenor
Pakistan is the fastest growing mobile operator in
Pakistan.
Telenor Pakistan is committed to bringing true mobile innovation to the
under-served
contributions
masses
have
of
Pakistan.
extended over
Telenor
the
years
Pakistan’s
to include
community
education,
empowerment, enterprise, and environment - with special focus on bringing
the telecom promise within the grasp of the most disadvantaged sections of
the society.
The company has created 2500 direct and more than 25000 indirect
employment opportunities with 100,000+ retail outlets and 200+ franchises in
addition. 99.9% of these employment opportunities belong to Pakistanis.
Telenor is a place where one can live his dreams and pursue a career that
reflects his skills and passions. Telenor gives flexibility for change, the
opportunity to learn, and providing career options with endless possibilities.
Some of the recommendations for Telenor according to my understanding
are:
 Franchise must be given full access on customer service database of
Telenor.
 There must be rewards and acknowledgement for the best franchise in
zone to increase motivation level of franchise employees.

Refresher courses for the staff are most important in any international
organization. All the employees of franchise should have these courses
44
according to their requirement. Foreign experts can also be called for
this purpose.
 Every year some of the employees should be sent for training to other
countries and employees from other branches or main office should be
brought here in the franchise. So that they can observe the right things.
 There were too many internees in customer care department, the
company has to meet a certain quota of internees and this load is
maximum during summers. What this does is makes the environment
inefficient and extremely relaxed. This matter requires attention.
 Such system should be designed that every employee who has some
problems with his supervisors can communicate it to the higher
management and some steps must be taken to improve that.
 There was a fine line between employees and internees, and though
that is understandable, the system seemed much closed at times.
 Because of better opportunities in market, a high turnover of skilled
human resource has been seen in Telenor . Serious efforts are needed to
arrest this trend. More and more incentives should be given to the
employees other than just medical facility and paid leaves.
 The period of internship should be divided into the number of
departments in Telenor . The internee should be given timetable
mentioning the number of days he has to work at different places in the
office. Once in a while, in each department internee should be given a
lecture by the manager of the department about operations of the
department. This would increase the learning of the internee.
45
 The fact that there were two sales offices in the building (one on the 2nd
floor and one in the ground), led to work related confusion and hence
mishaps. Proper communication and planning should be there.
 Distribution of work is not on equity basis in franchise, work has not
been allocated properly some workers have to work hard and have to
work in late hours without any extra reward. So I suggest that steps
should be taken to allocate the work properly.
 All the employees in the customer care department are over-burden
with work and responsibility. The customer care department requires
more employees.
 When a new employee becomes a part of Telenor , he is not properly
oriented. Telenor has this policy of orientation but it only includes visits
to departments and knowing about the policies and rules of the
company. I suggest a proper orientation and socialization session
should be there for a new employee so that he may feel comfortable
with his new organization.
 The late seating of employees has been observed in Telenor franchise
distribution department and many employees work overtime after
office hours. They should be properly compensated for their work
especially during the overtime period. This would be encouraging for
all the employees.
46
Special thanks to:
Ms. Irem Jaffery
Telenor Customer relations Manager
Customer Care Department
Telenor franchise, Bank Road, Saddar
Mr. Arshad Noori
Telenor Sales Supervisor
Mr. Usman Hassan
CW & PWR IMPL NORTH
References:
www.telenor.com
www.telenor.com.pk
www.pta.gov.pk
47
7.
Appendix
48
Annexure
Key financial figures - Telenor Pakistan
49
Annexure
source: capital markets day 2008.
50
Annexure:
Telenor product line :
51
Annexure
Mobile operators and the markets in which Telenor operates.
Bangladesh
Denmark
Hungary
Malaysia
Montenegro
Norway
Pakistan
Russia
Serbia
Sweden
Ukraine
Thailand
52
Annexure
Top management of Telenor
Jon Eddy Abdullah, Chief Executive Officer
Jon Eddy Abdullah has more than 15 years of experience in the telecommunications
industry. He has been working with both infrastructure vendors as well as several mobile
operators, most recently as Chief Operating Officer in Maxis Telecommunications,
Malaysia, and Chief Technology Officer DiGi Malaysia. Jon holds a Bachelor of Science
(Electrical Engineering) from Montana State University, USA.
Irfan Wahab Khan, Executive Vice President Corporate Affairs & CEO LDI
Irfan heads the Corporate Affairs & CEO LDI Division and supervises the Regulatory &
Interconnect, Legal Affairs, Public & Government Affairs, and Corporate Communications
departments. He has extensive international experience of working in the mobile cellular
industry having worked with Orange UK, T-Mobile USA, Telecordia Technologies USA,
Nortel Networks, Ericsson Philippines, and the Ministry of IT & Telecommunications
Pakistan. Irfan has served as a Director on PTCL's Board and was Vice Chairman of GSM
Alliance, North America. Irfan Wahab Khan has an MSc in Mobile Communications from
the University of Westminster, UK.
Lars Christian, Chief Marketing Officer
Lars-Christian Iuel rejoins the Telenor Group following a two-year stint with Cell One,
Namibia's well-known mobile operator. He was appointed Cell One's CEO in 2007 from
his previous position as the company's CMO. Lars was Senior Executive Vice President,
Private Products, Telenor Nordic when he left in 2006. He joined Telenor ASA in 1996.
With 12 years management experience Lars has a wide range of knowledge of the industry.
He has a Cand. Merc (MBA) from University of Aalborg, Denmark, an MBA from
University of Sheffield, UK, and can speak English, Norwegian, Danish and German.
Peter Dindial, Chief Technical Officer / Vice President Technical Division
Peter heads the Technical Division which comprises the Network Planning & Design,
Implementation, Operations & Maintenance, Real Estate & Site Acquisition, Technology
and Strategy, and E2E QA departments. He was previously responsible for the development
of the Real Estate & Site Acquisition department. He has been Operational Advisor to CEO
Telenor Pakistan, and has worked on a broad range of commercial and technical operational
issues. He has also been responsible for managing the CEO's Office. Prior to joining
Telenor Pakistan, Peter was the Chief Operational Advisor for Promonte, Telenor’s
operations in Serbia and Montenegro. Peter began his career with British Telecom (BT) in
53
the UK where he worked for nine years. He spent the next 10 years on various international
assignments including working with StarHub in Singapore and Ericsson in Malaysia. Peter
Dindial has an MBA, and a BA in Business and Finance from the University of South
Bank, London.
Khalid Shehzad, Chief Information Officer / Vice President IT Division
Khalid heads the Information Technology Division and manages the Business Support
System, IT Operations, and IT Security departments. Before joining Telenor Pakistan as
CIO in June 2004, Khalid worked in Tanzania as a CIO for Celtel International which
caters to both mobile and fixed line customer needs. Khalid has the distinction of being
noted as IT Director of the Year for Western Wireless International in 2000, and Employee
of the Year at Millicom International in 1996. He began his career 14 years ago, and has
worked extensively in the international telecom sector with companies such as Motorola,
Millicom, AT&T Wireless, Western Wireless, Celtel Intl, and with Ufone. Khalid Shehzad
has a BSc in Computer Sciences from UCLA USA and an MBA from IBA Karachi.
Peter Kuncewicz, Chief Finance Officer / Vice President Finance Division
Peter heads the Finance Division and supervises the Business Planning & Finance,
Accounts, Procurement, Treasury, Financial Operations, Revenue Assurance & Fraud
Management, Credit Control, and SOA departments. Peter comes from a CFO / CIO's
position from Star Foods S.A. Poland, an FMCG company, where he worked from 1996 to
2006. He held the position of Controller Procurement and IT Project Manager at Bahrain
Telecommunications from 1987 to 1996. Peter also has experience in the building
materials, electronics and pharmaceutical industries. He is a member of the United
Kingdom Chartered Institute of Management Accountants. Peter Kuncewicz has an MSc in
Business Planning and Finance from the University of Salford, England, and a first degree
in Biology from the University of Sussex, England.
Nayab Baig, Vice President Human Capital Division
Nayab heads HC Division and oversees the People Excellence & Business Process
Improvement, Safety and Security , and Organizational Support Services departments. He
has extensive human resource management experience having developed performance
planning, management and evaluation systems in addition to introducing developmental
activities at Packages and Unilever Bestfoods in the past. He has headed the HR
departments of Packages Ltd., Unilever Bestfoods, SHV, and Avari Renaissance Hotel.
Nayab Baig has an MA in Human Resource Management from the University of
Westminster, UK.
54
55