INTERNSHIP REPORT
ON
AZAN COMMUNICATION
(TELENOR FRANCHISE)
BY
M. MUBEEN MUJTABA
2018-GCUF-87813
GOVERNMENT COLLEGE UNIVERSITY FAISALABAD
SAHIWAL CAMPUS
PAKISTAN
2022
1
IN THE NAME OF ALLAH, THE MOST BENEFICIENT,
THE MOST MERCIFUL
2
ACKNOWLEDGEMENT
All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and
beneficent who gave us courage to undertake and complete this task. We are very much
obliged to our ever caring and loving parents whose prayers have enabled to reach this
stage.
I am grateful to almighty ALLAH who made me able to complete the work presented in
this project. It is due to his unending mercy that this work moved towards success.
I am highly indebted to my Branch Manager MR. HUSSNAIN AHEER for providing
me an opportunity to analyze the franchise like “AZAN COMMUNICATION
(TELENOR FRANCHISE)" which is vital ingredient of BBA (Hons) program. I am
very great full to my teacher NIDA SYED for providing me guideline for the completion
of this project.
I feel great pride and pleasure on the accomplishment of this project.
M. MUBEEN MUJTABA
2018-GCUF-87813
Bachelor of Business Administration
G.C.U.F Sahiwal
DEDICATION
“The Holy Prophet Muhammad (S.A.W.W) from where all systems and
standards for quality can be downloaded directly, which are applicable
everywhere; from daily life to the dynamically changing business
environment.”
To My Loving Parents & My Teachers who taught me the true meaning of
life and whose endless support and kindness is beyond expression and words
may not just enoughto express my gratitude.
M. MUBEEN MUJTABA
2018-GCUF-87813
Bachelor of Business
Administration
G.C.U.F Sahiwal
TABLE OF CONTENTS
EXECUTIVE SUMMARY .................................................................................................... 2
1. INTRODUCTION.............................................................................................................. 2
1.1
CENTRAL BACKGROUND INFORMATION ..................................................................... 2
1.2
COMPANY BACKGROUND ........................................................................................... 5
1.3 TELENOR IN PAKISTAN ................................................................................................... 7
a) Vision and Values ........................................................................................................ 7
b) Largest direct European investment in Pakistan ......................................................... 8
c) Highest (ARPU) in the market ..................................................................................... 9
d) Fastest growing mobile network.................................................................................. 9
e) Infrastructure expansion .............................................................................................. 9
f) Employment opportunities ............................................................................................ 9
g) Social and corporate responsibility............................................................................. 9
h) Achievements ............................................................................................................. 10
i) Future Projects ........................................................................................................... 11
2. COMPANY ANALYSIS ................................................................................................. 11
2.1
2.2
2.3
2.4
3.
OPERATION ANALYSIS ............................................................................................... 11
FINANCIAL ANALYSIS............................................................................................... 13
HUMAN RESOURCE ASSESSMENT ............................................................................... 14
MARKETING ANALYSIS ............................................................................................ 15
ENVIRONMENTAL ANALYSIS ............................................................................... 17
3.1.
INDUSTRY AND MARKET ANALYSIS ......................................................................... 17
3.1.1. Major product lines............................................................................................ 17
3.1.2. Market Segmentation ......................................................................................... 18
3.1.3. Growth Rate for Entire Industry ........................................................................ 19
3.2. COMPETITOR ANALYSIS .............................................................................................. 21
3.2.1. Major Competitors ............................................................................................ 21
3.2.2.
Market share of Competitors .......................................................................... 22
3.2.3.
Competitors Goals .......................................................................................... 23
3.2.4.
Competitors Strategies .................................................................................... 23
3.3.
TECHNOLOGY ANALYSIS ......................................................................................... 24
3.3.1.
Technical methods affecting industry ............................................................. 24
3.3.2.
Innovation ....................................................................................................... 24
4.
DEPARTMENT WORKED DURING INTERNSHIP. ............................................ 27
5.
IDENTIFICATION OF A MAIN PROBLEM .......................................................... 30
6.
FINDINGS ...................................................................................................................... 31
6.
CONCLUSION AND RECOMMENDATIONS ........................................................ 32
7.
APPENDIX ............................................. ОШИБКА! ЗАКЛАДКА НЕ ОПРЕДЕЛЕНА.
1
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.
1. Introduction
1.1
Central background information
2
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 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.
3
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.
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.
4
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.
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c) Pioneer in mobile communications
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 privatized 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
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 jobopportunities is opening up.
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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
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 help our customers get the full benefit of
in
their
communications services
daily
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.
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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
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.
8
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.
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
9
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
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
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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.
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 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.
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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 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:
12
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.
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.
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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 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
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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.
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.
15
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.
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
16
PROMOTION
Telenor is spending large budget on promotion campaign.
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.
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
17
----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)
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
18
has shown to everyone through different means of media of all of its facts and figures of
portfolio.
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.
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.
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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
2000
2001
2002
2003
2004
2005
2006
2007
2008
July-2008
* Revised
Ufone
Zong
Instsphone
114,272
80,221
112,000
309,272
116,711
96,623
220,000
800,000
350,000
218,536
330,000
1,115,000
550,000
319,400
420,000
3,215,989
801,160
470,021
535,738
7,469,085 2,579,103
924,486
454,147
17,205,555 7,487,005 1,040,503 336,696
26,466,451 14,014,044 1,024,563 333,081
32,032,363 18,100,440 3,950,758 351,135*
32,056,336 18,368,074 4,446,024 351,135
Telenor
Warid
835,727
508,655
3,573,660 4,863,138
10,701,332 10,620,386
18,125,189 15,489,858
18,329,428 15,774,299
Total
306,493
742,606
1,698,536
2,404,400
5,022,908
12,771,203
34,506,557
63,159,857
88,019,812
89,325,296
Note: Including AJK & NAs
SCO Cellular Mobile Subscribers in AJ&K and NAs for Mar-08 are 172,531
Source: PTA 2008
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
20
Growth
Rate
15.39
142.29
128.73
41.56
108.90
154.26
170.2
80.70
39.4
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
0.22
2000
0.52
2001
1.16
2002
1.61
2003
3.29
2004
8.30
2005
22.21
2006
39.94
2007
54.70
2008
55.62
July-2008
* Revised
3.2. Competitor Analysis
Note: Including AJK &
NAs
3.2.1. Major Competitors
Source : PTA 2008
Today, Telenor faces the competition as follows:
Direct:
Mobilink
Ufone
Warid
Zong
Indirect
PTCL
Calling card providers
21
Wateen Telecom
Worldcall wireless
PTCL wireless
Go CDMA
Smaller WLL operators
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 value-added services.
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Ufone
The second largest operator in Pakistan is the Pakistan Telecom operated U-fone, which had
16.16 million customers at the end of 2007. In terms of market share, it gained 22percent
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
3.2.4.
Competitors Strategies
23
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
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
24
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.
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.
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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.
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 floodaffected 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 Red
Crescent Society to help collect
blood
donations from Telenor
employees.
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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.
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
27
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.
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
and the customers ordering prepaid connections 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.
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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
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.
Managing Visitors
29
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.
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
30
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 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
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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 masses
of Pakistan. 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.
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 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
32
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.

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
33
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.
34
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
35
Annexure
Key financial figures - Telenor Pakistan
36
Annexure
source: capital markets day 2008.
Annexure:
37
Telenor product line :
38
Annexure
Mobile operators and the markets in which Telenor operates.
Bangladesh
Hungary
Montenegro
Pakistan
Serbia
Denmark
Malaysia
Norway
Russia
Sweden
Ukraine
Thailand
39
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
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
40
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.
41