ufone project

7/29/2019 Ufone Project

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S No. T o p i c Page #

01 Letter of Acknowledgement 03

02 Executive Summary 04

03 Introduction / Company Profile 0404 Company Analysis 05

05 Marketing Analysis 09

06 MARKETING MIX 1007 Market Segmentation 11

08 Target Market 11

09 Market Dominance 11

10 Market Differentiation 12

11 Environmental Analysis 11

12 Major Product Lines Market Segment 12

13 Growth Rate for the Entire Industry 12

14 Competitor Analysis 14

15 Competitors Market Share 18

16 Technological Analysis 18

17 Conclusion 19

18 References 19


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E X E C U T I V E S UMMARY

The overall consensus of industry analysts is that Pakistan is one of the countries with a huge untappedpotential for telecom growth and an attractive investment environment. Recently Business MonitorInternational (BMI) ranked Pakistan as a key destination for telecom growth. The BMI rankings takeinto account a number of factors including industry situation, growth potential, competitive landscapeand economy and political risks etc.The Pakistan market reached the 90 million subscriber mark in September 2008, almost double from2006 numbers. The growth slowed after that and at the end of November 2008 the total mobilesubscriber number was 90.5 million. Pakistan needs to increase telecom research and developmentwork within the country. China and India are in the process of becoming world major R&D centers fortechnology and telecommunication. Two top Chinese telecom equipment firms have announced theirplans to collaborate with Pakistan: Huawei is working with UET Lahore and ZTE will setup R&Dcenter in Islamabad. The goal of the policy makers should be to increase the rate of transfer oftechnology from abroad, broaden the pool of local skilled workforce and accelerate the local productionof telecom equipment and handset parts etc.PTCL was established to operate cellular telephony. The company commenced its operations, under thebrand name of Ufone, from Islamabad on January 29, 2001. Ufone continued on the path to success.The Company further expanded its coverage and has added new cities and highways. Ufone hasnetwork coverage in more than 5442 locations and across all major highways of the country. Ufone, awholly owned subsidiary of Pakistan Telecommunication Co. Ltd (PTCL), under the control ofETISALAT group of UAE. It has 21% of subscriber share and added the most lines (2.4 million) from2006-07. For those in Pakistan it is the one company where they can easily invest locally. Ufone ismaintaining its subscribers base in market.However the company needs a big push from its own ersETISALAT in shape of more investment to increase and enhance its network and its quality.

INTRODUCTIONCOMPANY PROFILEPakistan Telecom Mobile Ltd, operating under the brand name of Ufone a wholly-owned subsidiaryof PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. Since theoutset it has expanded its coverage and customer base at a rapid pace andestablished itself as one of the leading cellular service providers in Pakistan. Ufone is now consideredto be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. Thegrowth of cellular sector in Pakistan can also be attributable to good governance and conducive policiesof the government of Pakistan In connection with that in April 2006 Emirates TelecommunicationCorporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Corporation Ltdpart of the $2.6bn deal to buy a26% stake. The successful privatization of PTCL, and consequently Ufone, is hailed as ushering in anew era for telecommunications in Pakistan. As mobile users in the country have reached 88 million ata very rapid pace, Ufone has a subscriber base of nearly 17.5 million and a market share of nearly 21%.Ufone has seen a subscriber growth of over 10 million since July 2007 onto its network. Subsequentlythe growth in subscriber base caused a healthy trend in its revenues and margins. Ufone has alwaysplayed a pivotal role in the development of cellular


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market in Pakistan. For most part it has been a step ahead in introducing innovative products to themarket. Ufone was pioneer in launching the GPRS services and Multi-media Messaging Service(MMS) in Pakistan, including the lead in introducing GPRS international roaming and prepaidinternational roaming for these services in the Pakistani market. Currently Ufone has expanded its

product portfolio to include Black Berry handsets and providing one of the largest EDGE networks inthe country today. Ufone understands the need to communicate effectively and efficiently at all levelsof society, which is why various products are catering for the needs of the Pakistan corporate market. Itoffers services such as mobile office, Virtual Private Network (VPN), and a lot more to revolutionizedcommunication. Ufone provides International Roaming facility with more than 215 internationaloperators across 124 countries. Ufone has GPRS roaming agreements with more than 100 internationaloperators and also provides prepaid roaming facility to more than 15 destinations across the country.COMPANY ANALYSISOPERATIONAL ANALYSISUfones operational performance has been very encouraging. Despite the stiff competition in Pakistantelecom market which has led to reduction of prices to bare minimum level, due to its aggressivepolicies and exercising strict control over expenses the Company managed to improve its revenue andafter-tax profit by 87% and 54% respectively, as compared to last year. Future Plans keeping in viewthe growth potential of the cellular industry there is no option but to be aggressive in order to remain apotent force in the cellular industry. In order to extend cellular network Ufone has finalized a hugenetwork expansion contract amounting to about USD 550 million, which will enhance the subscriberscapacity by 10 million. This is the largest ever expansion project of Ufone. A strong focus of Ufone ison maintaining high quality of service, which is always a benchmark of Ufone, increasing usage andexploring new revenue streams on value added services, market visibility through various marketinitiatives to fulfill subscribers satisfaction and demand and above all to increase the value ofinvestment for the shareholders.Moreover, efficient working of the workforce in the organization makes it possible to lead the marketand maintain competitive edge over the competitors. The organizational operations can be clarified bystudying the nature of Ufones organizational structure and hierarchy.Organizational StructureThe organizational Structure at Ufone is Lean or Horizontal structure. One of the organizationalfunctions of Ufone in relation to its hierarchy is, the company is having Decentralized structure. Theflow of communication becomes easy and simple in such structure. It is divided into differentdepartments and every department has its head and all are interconnected. The concept ofDepartmentalization is effectively in practice at Ufone. There are different departments which areworking within their functional units to contribute towards the success of organization andto achieve the over all goal of the Organization. Ufone has 8 departments that are working efficientlyand all are interacting with each other to make it a much better company by satisfying its customersdemand. The structure of Ufone comprises of Board of directors who are beingreported by CEO, Chief Executive Officer. CEO is a great supervision to the 8 Major operations of thecompany. These operations are divided into departments that are:


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Finance DepartmentThe head of finance department is designated as CFO Chief Financial Officer or Vice president offinancial head.

Marketing DepartmentThe head of marketing department is designated as CMO- Chief Marketing Officer or Vice President ofMarketing Head. The department has further 3 subheads working in specialized manner according tothe skills and abilities of the employees.BrandsThere are basically two products of the Ufone which serves as the brands of the company. This sub-head is responsible for the execution of the Brand Activities. Ufone is performing thepromotional activities in Brands sub-head, including advertising over Electronic media and print media.The promotional strategies are made by the sub-head to get the implementation.Marketing Strategy and AnalysisThe sub-head is working in order to formularize the marketingstrategy according to the market requirement and consumer preferences. The analysis about the markettrend is done and the strategies are made in relevance. Moreover, competitors arebiggest source of reacting towards the marketing activities. Ufone is having a proactive marketingconcept in context of competition.VASValue Added ServicesVAS sub-head is responsible for proficient functioning of conveniences provided to the customers,these VAS are Virtual Private Network, Call Management, Missed Call Notification, Phonebook Saverand a host of Infotainment and Entertainment services.Information Technology DepartmentWhile being a part of information technology and telecommunications, Ufone is having a major

department of Information technology. The head of information technology is termed as CIO- ChiefInformation officers. IT department is working with the division of further 2 sub-heads.BillingThe billing department is responsible for aggregating CDRs and preparation of the postpaid billing forcustomer from system.

IT DevelopmentAny kind of IT development required by the company in billing or CRM (Customer RelationshipManagement) module is done by IT development team.Customer Operations DepartmentOne of the departments to preserve the existing consumers, Ufone is having a department of Customer

operations; the head of this department is designated as VP COPs Vice president CustomerOperations. The department is having 2 further sub heads. Customer CareUfone provides customer care through Customer Care Center located in all key cities, across thecountry. Ufones customer care representatives are more helpful. They will not only resolveConsumers issues but also guide them into customizing Ufone, according to their needs. Customerscare is offered to through


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o Call CentreCal centre representatives are providing services, 24 hours a day. The customers can contact the UfoneCall Center to get answers to all their queries. Some of them include:

Bill enquiry (credit limit, expiry date etc.)Reporting of lost phoneNumber blocking in case of lost or stolen SIMsConnection status (active / inactive)TariffProducts informationUfone Sales & Service Center informationNearest dealer informationUfone coverage areasEmergency number informationInternational roaming informationValue added services informationMissed call alertsCall forwardingConference callFNF Activation / ChangesPost Pay Reward Redemption

o Business CentreThe business centre of Ufone are offering various services to their customers, they are basicallycompany owned centre, the business centre offers the SIM issuance and other customer related issues,retention of customers and handling requests for Mobile number portability.Govt. RelationsPTA Pakistan Telecom Authority is the regulatory authority in Pakistan concerning the networkoperators as well as telecommunication practices. Ufone is also abiding the rules thatare being made by PTA. The relationship with PTA is also being maintained as PTA is Govt.regulation.Engineering DepartmentThe engineering department is Backbone of the company. The head of the department is termed asCTO - Chief Technical Officers or Vice president.


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Sales DepartmentThe sales department at Ufone is headed by Vice president Sales. The department is being divided into3 main sub-heads.

Corporate Salesthe division of the sales department is handling the sales for executives or corporate clients. Theseclients are having postpaid products with billing system.Franchises & Retail Outletsthis division is handling franchises and retail outlets with a network of more than 365 franchises and 25company-owned customer service centers along with a distribution network of 150,000 outletsnationwide.Sales operationsSales operations at the company have been set up to provide the customers, quality services all underone roof so consumers can walk in to any Ufone Sales & Service Center.

Human Resource DepartmentHuman Resource department is being headed by the HR executive designated as Chief of Humanresource department. The department is working for the personnel in the organization. There are 3 mainsub-heads in the departmentRecruitment and Compensation BenefitsUfone has this policy of not mentioning the name of the company in a job advertisement. Usuallyhiring takes place through outsourcing with a help of a third party. Final selection takesplace after the candidate has been interviewed by the Manager of the department who requires the newemployee and then the HR Manager. A very effective way to retain an employee is to give himcompensation and benefits. At Ufone following benefits are given: Medical Facility to employee andhis/her parents and Paid Vacations, Gratuity, Provident fund etc. TrainingTraining & Development involves improving the knowledge, skills and abilities of the individuals. Acontinuous training is conducted inside Ufone to improve the performance of theemployee. There are two types of trainings conducted at Ufone:In-house Training and External Training.HR OperationsHR operations at Ufone include the working over all Human resource Functions that areo Orientationo Human Resource Planningo HR hiring / recruitmento Selection Processo Compensation and benefitso Training and Developmento Human Resource Information systemStrategic Planning Departmento This department directly reports to Chief Executive officer.o Ufone views strategy as an overall approach and plan. This department monitors the executions ofstrategic plans and goals across the business. So, Strategic Planning at company is the overall Planning


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that facilitates the good management of a process. Ufone strategic planning is providing the big pictureof companys operations and long term goals.o Forecasting the opportunitieso Building Synergieso Long-term Planningo Implementation of Strategic PlansMARKETING ANALYSISUfone is having 2nd largest number of subscribers. Ufone has been attracting the masses since the timeof its origination. Ufone is also known for its quick marketing.MARKETING MIXI have analyzed the marketing mix of the Ufone. Marketing mix includes the analysis of the firmsproduct, pricing, promotion and placement. Ufones marketing mix can bePRODUCTUfone understands the value of words and the need to communicate effectively and efficiently at alllevels of society, which is why companys primary focus is on U. Ufone offers, Prepay & Postpayservices in the Telecom sector.Ufone PrepayUfone prepay is the product segmented for the youngsters. They are segmented on the basis oftheir age and status. They recharge through the prepaid cards whenever they feel comfortable toload the cards.Ufone PostpayUfone Postpay is created for the executives and business class people, who require making callswithin the country or internationally for the business purposes. Business executives enjoy thebenefits and value added services connected with Postpay product of UfoneUfone For EveryoneThe telecom markets growing rate in Pakistan is higher than any Asian country. Ufone offers lowerrates and better network then other already established cellular companies. All living standards havebeen captured by Ufone, like Students, Labor and Businessmen, etc.Ufone aims to provide with wider coverage, superior connectivity, clear signals & voice quality to theirvalued customers.

U-CirclePrepay provides an easy way to call Friends & Family. Ufone is making it easy for its consumers to callfriends & family with U Circle. Now the consumers can talk more for less with the most economicalrates to call theirUfone Circle.U ShareUfone Prepay customers can now share their balance with each other through a simple SMS in 3 easysteps.Mobile Number PortabilityUfone welcomes consumers to bring their mobile number to the best service. Through Mobile NumberPortability (MNP), mobile phone subscribers can retain their mobile phone numbers when they changemobile operators. Therefore a 0300-xxxxxx or 0345-xxxxxxx can be a Ufone customer in the MNPregime.


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PRICINGAs compare to other telecommunication companies, Ufone offers its services with lower and affordablerates. The price of product matters in the market but low price with high density service is not an easytask to accomplish. For the satisfaction of valued consumer Ufone merged the low Price and high

density services with wide network. Both, the Prepay & Postpay tariff.Pricing StrategyPricing strategy plays very important role to acquire market share where giant competitors are alreadyworking and moving ahead. Ufone has implemented low pricing strategies to reach its objectives.Pakistans mostly population contains on Middle class and working class people. In this view the lowpricing strategy of Ufone gets attention of many customers. In the early age of Ufone launched, theydecide their logo by the people opinions that boost its products. An advertising campaign launchedshowingBakra Marketthat relates to middle class of Pakistan.PROMOTIONFor the promotion of product, print media, electronic media, billboards, broachers and leaflets has beenutilized for the awareness of various customers.Time to time, Ufonepromotes its services / schemes to their users and general public via using varioustype of promotion channels. Through the advertisements people get awareness about the product andare able to choose the best one for fulfill their requirement in Mobile Telecommunication. Market SegmentationUfone is segmenting the market according demographic segmentation, i.e. on the basis of age groups.Ufone has segmented its product on the basis of its features.Ufone Prepay is segmented for the youngsters, whit attractive packages to their requirementsUfone Postpay is segmented for the people of mature age,having their own business, belongs to business class or people who are senior executives of theorganizationsTarget MarketUfone has the target market concerning youth in the nation. This target market of youngsters comprisesof the 40% population. Ufone is having focused advertising towards the target market simultaneouslyfocused brand building over the market segment of youth. Ufone is targeting the emerging segments ofmiddle class in the population to increase the number of subscribers as well as the revenue generationfrom these subscribers Ufone has also targeted the corporate class, for which Ufone is customizing thepackages in order to preserve the existing small but profitable corporate of SME market segment.Market DominanceUfone is having a concept of Market dominance. Ufone is a measuring the strength of its brand,product, service, and firm, relative to competitive offerings. For being competitive in the market andwhile following the strategies based on market dominance, Ufone has become the LEADER, instead offollower or challenger of new offerings. While being a leader of the various offerings, it has maintainedthe marketing of its product within shortest span of time. This maintenancehas been done in order to make people aware about the latest offerings of the Ufone.


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Market DifferentiationDue to aggressive competition in Pakistan mobile companies, the operator needs to differentiate theirproduct from others in order to attract more and more customers. Ufone with its basic or core productwhich is becoming homogenous with the others products is struggling to introduce the differentiating

offers for the consumers. In the telecom industry, for differentiating the product means to bring andimplement some new and innovative technology. Technologicalimprovements at Ufone are continuous process. These practices of bringing something new to thesociety at Ufone are emerging in the context of GPRS and 3G services. Ufone is not only emergingtechnologies but also maintaining a technological dominance for theservices it is providing. Ufone is coming up with innovative products and becoming pioneertowards the new arenas. Ufone is launching innovative packages and products for enhancing itsrevenues. The basic focus of Ufone is to enhance its VAS- value added services. Ufone is providing asmuch as convenience to its consumers as they expect. Some of the value addedservices offered by Ufone areMissed Call NotificationPhonebook SaverMy Ufone Account ServicesInfotainmentUrdu Info ServicesTrivia QuizPocket Data ServicesVirtual Private NetworkCall FeaturesMessaging ServicesU-ShareENVIRONMENTAL ANALYSISINDUSTRY AND MARKET ANALYSISCellular Mobile segment of the industry is considered an engine of growth for telecom sector inPakistan. Cellular Mobile sector continued to add 2.1 million subscribers per month during the year2007-08.Cellular mobile operators continued their Aggressive marketing and network expansion. Competitionamong operators became more intensive with aggressive entry of CM Pak, a China Mobile subsidiaryin Pakistan. CM Pak with their brand Zong and Telenor have added significant Subscribers veryrapidly. Several cellular operators offered various Value Added Services at lower rates to attract morecustomers. The sector exhibited slow growth than year before. Cellular Mobile teledensity jumped from

39% in 2006-07 to 54.7% in 2007-08.Collective Revenues of the sector have grew by 35% in the year 2007-08 against a record growth of48% in the year 2006-07. Cellular subscribers grew by about 40% in the year 200708, as against 82%in 2006 -07 and more than 100% during 2005-06. Main reason for its slow growth could be the risinginflation which affects the affordability, higher taxes, saturation of the urban markets and low tariffs.Regulator remained vigilant in resolving all sector related issues. The most significant developmentwas the shift from 7 to 8 digit numbering plan, which was completed during 2007-08. It was a hugetask and PTA took it as a challenge. Not only all cellular MSC but also all fixed line switches have


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been enabled for 8 digits. It is consider as a great success of the regulator for implementing it in shortspan of time. Verification of unauthorized SIMs was another herculean task where tremendous progresshas been made. In collaboration with NADRA and mobile operators, PTA has devised a comprehensivemechanism to verify the SIMS. It was observed that approximately 7 million SIMS have not been

registered properly who were warned by PTA and operators were directed to register immediatelyotherwise face disconnection. PTA launched a media campaign in this regard along with strongwarning has been issued to unregistered user if they failed to register their connections, it will beblocked. Besides, PTA ordered closure of various Franchises who were not implementing the properprocedure for issuance of cellular mobile SIMs. PTA continued its IMEI system where it blockednumber of mobile handsets stolen or reportedtheft by users.Major Product Lines Market SegmentMOBILINKMobilink is having two major products which have catered the marketof consumers. Each of the

products is having its distinct services in according to the segmentation of consumers.IndigoJazzTELENORAnother international telecom giant in Pakistan industry is Telenor.Telenor is offering three products to its subscribers.PersonaDjuiceTalkShawkWARID TELECOMWaridtel is providing the products to its subscribers distinguishing them in consumers and corporateusers. For consumers Waridtel has segemented the pdocts in two product lines.Consumer Postpaid:Consumer: ZemWarid CorporateUFONEUfone is offering the products which are categorized on the basis of their connection nature. There arebasically two products of the Ufone which are facilitating the consumers.Ufone PrepaidUfone PostpaidGrowth Rate for the Entire IndustryThe growth rate of the Pakistans cellular industry can be measured through the number of subscribersin Pakistan. The growth of these subscribers can be analyzed through the provincial subscribers.


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Subscribers Growth and PenetrationCellular Mobile sector has shown an impressive growth over the years. Pakistan has been one of thefastest growing mobile markets among the emerging telecom Markets. Subscription of subscribersremained impressive for another year and all companies together added morethan 25 million subscribers to their networks. Total subscribers crossed 88 million at the end of 2007-08. During the year 2007-08, Telenor added about 7.4 million subscribers as compared to 7.1 million in2006-07. Mobilink comes second with the addition of 5.7 million subscribers during the same period.Warid telecom succeeded to add another 4.8 million subscribers this year. Ufone added 4.0 millionsubscr-ibers in 2007-08 as compared to its addition of 6.5 million in previous year1. CMPak entered thecellular market with aggressive marketing and infrastructure roll out. Its growth was negative previousyear but this year it added 2.9 millionsubscribers in last few months. Cellular Mobile penetration in Pakistan reached 54.7% at the end of2007-08, which is 15.3 percentage points higher than the last year. Despite impressive addition ofcellular subscribers by operators during 2007-08, Cellular Mobile market could not maintain its growthpatterns of the last 3-4 years. Generally, the growth of subscribers has declined considerably in 2007-

08, which is evident in Table - 7. Total subscribers growth has been reported 40% in 2007-08, whichhas declined from 82% in the year 2006-07. Growth of cellular subscribers has declined by all majorcompanies.Mobilink growth declined registered from 53% to 22% while Telenor growth has declined from 199%in 2006-07 to 69% in 2007-08. CMPak has entered the market recently and has shown positive growth.

Cellular Mobile Penetration in all provinces has increased in last one year. The province of Punjabtoped in numbers though its total teledensity is second to Sindh. Total subscribers in Punjab at the endofJune 2008 reached 52 million compared to 37 million in 2006-07. Growth of cellular Sector subscribersremained highest in the province of Baluchitsan where subscription grew by 57% in 2007- 08 with total

cellular subscribers approaching 2.2 million compared to 1.4 million in 2006-072. When compared with 2006-07 and 2007- 08, Cellular Mobile penetration has increased by36.8 percentage points in Punjab and its total teledensity climbed to 58.0% at the end of 2007- 08,which was 42.4% in 2006-07. A significant improvement in Baluchistan has been noted where itscellular Mobile teledensity has reached 27% in 2007-08 which was just 17% at the end of 2006-07.This improvement is due to the special attention of regulator and Government of Pakistan for thisprovince in telecom sector in last year.COMPETITOR ANALYSISMAJOR COMPETITORSUfone is facing competition from 4 network operators operating within Pakistan, among which, warid

and telenor and multinational organization.MOBILINKMobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in 1994, and hasbecome the market leader both in terms of growth as well as having the largest customer subscriberbase in Pakistan - a base of over 31 million and growing. Mobilink pride ourselves on being the firstcellular service provider to operate on a 100% digital GSM technology in Pakistan that also providesstate-ofthe- art communication solutions to its customers.


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Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diversegroup of people, from individuals to businessmen to corporate and multinationals. To achieve thisobjective, we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to ourcustomers. Compared to our competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the

largest brands of their kind in the Pakistan cellular industry. In addition to providing advanced voicecommunication services that makes the lives of millions that much easy, we also offer a host of value-added-services to our prized customers. At the same time, Mobilink places high importance to itscoverage, which is why we cover you in 10,000+ cities and towns nationwide as well as over 130countries on international roaming service. In other words, we speak your language, everywhere.

Strengths WeaknessMarket Leader (Market share)Largest Network CoverageStrong Brand (Jazz)High %age of high end customersLow network dependency on 3rdParty (own backhaul fibre & LDI)On net advantageCan charge price premiumStrong media presenceFinancial muscle through strong top lineExperienced & dynamic teamMost exposed to loss of customersWeak customer careBilling issues & hidden chargesTechnical issues due to mix of old & new infrastructure and multiple vendors

Slow process due to OTInternal bureaucracyUnsustainable opex structureOpportunities ThreatsOpportunities ThreatsTELENORTelenor Pakistan launched its operations in March 2005 as the single largest direct Europeaninvestment in Pakistan, setting precedence for further foreign investments in the telecom sector.The company has covered several milestones over the past twenty eight months and grown in anumber of directions, Telenor have grown to become a leading telecom operator in the country.In fiscal year 2006, Telenor achieved nearly 200% growth in our subscriber base the highest

in the industry by a wide margin.Telenor are the fastest growing mobile network in the country, with coverage reaching deepinto many of the remotest areas of Pakistan. In the most difficult terrains of the country, fromthe hilly northern areas to the sprawling deserts in the south, at times we are the only operatorconnecting the previously unconnected.


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Strengths WeaknessExtensive rural market presenceGeared for 3G (Substantial high end customer base)Presence in international financial market (No hurdle in International borrowing)Able to hire cream resources from mktUse of MVNO to increase revenueNew Revenue streams (Mobile advertisements/ mobile commerce etc.)Industry reaching maturityHigher probability of churn in the industryCustomer loyalty low in the industryMNP major loser in industryPrice war can hit moreGlobal OperatorAggressive rollout of network

Brand consistencyStrong retail networkEmployee loyalty (HR)Quick reaction to competitors100% equity financed operationLong term vision for profitabilityStrong & effective marketingStrong vendors (Nokia siemens)Maintaining substantial growth in revenueTop management Non-PakistaniSingle VendorHigh Capex & Opex costZTE equipment in northern area (untapped market)Geared to Challenge No. 1 positionEmployer of Choice3G part of their business caseGeo/socio/economic factorsReligious elements oppositionIrrational behavior of industry (Zong)Opportunities ThreatsOpportunities ThreatsWARID TELECOMWarid Pakistan launched its services in May 2005. Within 80 days of launch Warid Pakistan claims tohave attracted more than 1 million users. According to Pakistan Telecommunication Authority,currently Warid Telecom has 16.15 million subscribers as of September 2008. It is ranked as the fourthlargest operator in Pakistan. Warid Pakistan claims it has the largest "postpaid" subscriber base inPakistan. On June 30th, 2007, Singapore Telecommunications Limited (SingTel) and Warid Telecomannounced that they have entered into a definitive


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agreement subsequent to which SingTel will acquire a 30 per cent equity stake in Warid Telecom for anestimated $758 millionvaluing the company at an enterprise value of $2.9 billion.Strengths WeaknessOpportunities ThreatsSingtelInternational partnerPrice perceptionPostpaid baseGovernment links/influenceAffinity partners (BAL)Owned Backbone InfraEricsson Network infralimited presence of HauwaiDis-organized teamHigh Bad debtsWeak distribution structureLow brand imageCurrent network footprintLimited telecom experienced managementBlackberry to attract high end marketSynergies with group companies (BAL /Wateen / Wincom)Singtel buyout of major stake in companyBrand revampingBidding for 3G licenseMarket reaching maturitySocio/economic indicatorPTA regulationsHR (FnF)ZONGZong is the first International brand of China Mobile being launched in Pakistan. It is meant toempower and liberate the people of Pakistan in every nook and corner of the country. It willbecome a part of their hearts, their minds and bring about a change in their lives that every one desiredbut few thought would be possible. The core essence of ZONG is to allow people to communicate atwill, without worrying about tariffs, network coverage, capacity issues orcongestion. ZONG will be supported by ground breaking communications, trend setting customerservice and an unmatched product offering which will redefine rules of the game and establish ZONG

as a serious contender for the number one spot. Strengths WeaknessOpportunities ThreatsChina mobile financial strengthClear strategy to achieve market shareLong term vision for profitability


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Decent brandChinaInfluence on governmentPerception of china CheapLack of international management experienceTime of entry5th operatorIssues with distribution structureLack of Onnet volume3G makes sense for businessUse of MVNO to add to revenues streamBuy out of operator InstaYouth marketUnable to meet customer expectationMarket reaching maturitySocio/economic indicatorIndustry can strongly reactPTA regulationsTeam developmentCOMPETITORS MARKET SHAREMarket share of operators is considered an important tool to gauge the level of competition in anysector of the economy. Marker shares of Cellular Mobile Operators indicate that market is movingtoward perfect competition where the share of major operators are declining and new entrants are ableto grab more share in the market. During the year 2007- 08, Telenor has emerged as fastest growingoperator who has improved its market share from 17% in 2006-07 to above 21% slightly higher thanUfone who also has 21% market share. On the other hand, the leading mobile operator, Mobilink is

loosing its Significant Marker Power place rapidly and itsShare has declined by about 5 percentage points and reached 36% in 2007-08 compare to 41% in 2006-07. CMPak is also growing very fast and it has added 2.9 million subscribers, which is an impressivenumber and one could hoped that in future it will grab more market share. CM Pak has added moresubscribers in last few months and it has continued its aggressive media campaign along withinfrastructure rollout which helping it to grab more market share in short span of time.TECHNOLOGICAL ANALYSISTelecommunication sector in PakistanThe growth of Pakistan telecom sector with the usage of technology can be seen in the sectors ofMobile SectorFixed Line SectorWireless Local Loop SectorPayphone ServicesInternet Services


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Telecom industry is most growing industry of Pakistan still huge investment required for coverage. Themarket also has strong competition after the entrance of China Mobile Company as player. Competitorsare hiring professionals to entertain the consumer which is resulting technological implementation andvalue added services. Ufone is a place where one can live his dreams and pursue a career that reflectshis skills and passions. People in Ufone give flexibility for change, the opportunity to learn, andproviding career options with endless possibilities The managers at Ufone believes that all employeeshave a right to offer input and be involved in helping their organization grow.All departments are working together and they wants to create a work environment in which employeescan improve their minds, continuously learn, gain professional growth and feel inspired by similarlymotivated individuals. The Ufone takes pride in providing the best possible working environment. Theytake a constant interest in ones progress by conducting evaluations and offering the support and

resources one needs. I reveal some complications in Findings. It has been analyzed that people areconcerned about call rates they do not prefer any particularcompany. Consumer searches good service with lowest call rates, although companies are minimizingcall rates this will result more growth in the market and to meet the customer needs by satisfying them.

9 REFERENCESThe information has been gathered through the various sources includingUfoneDepartment of Strategic PlanningPakistan Telecommunication AuthorityAnnual Reports 2007-2008www.ufone.comwww.telecompk.netwww.pta.gov.pk.www.propakistani.comwww.financialdaily.com
http://www.ufone.com/http://www.ufone.com/http://www.ufone.com/http://www.telecompk.net/http://www.telecompk.net/http://www.telecompk.net/http://www.pta.gov.pk/http://www.pta.gov.pk/http://www.propakistani.com/http://www.propakistani.com/http://www.propakistani.com/http://www.financialdaily.com/http://www.financialdaily.com/http://www.financialdaily.com/http://www.financialdaily.com/http://www.propakistani.com/http://www.pta.gov.pk/http://www.telecompk.net/http://www.ufone.com/

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