Escolar Documentos
Profissional Documentos
Cultura Documentos
SCIENCES
INTERNSHIP REPORT
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TABLE OF CONTENTS
1 INTRODUCTION..................................... ............................4
1.1 COMPANY PROFILE................................................................4
2 COMPANY ANALYSIS................................... ........................6
2.1 OPERATIONAL ANALYSIS............................6
2.2 HUMAN RESOURCE ANALYSIS...................14
2.3 MARKETING ANALYSIS.............................17
3 ENVIRONMENTAL ANALYSIS.....................27
3.1 INDUSTRY AND MARKET ANALYSIS............27
3.2 COMPETITOR ANALYSIS............................35
3.3 TECHNOLOGICAL ANALYSIS......................40
4 DEPARTMENT WORK PERFORMED ...........45
4.1 Reports and Presentations.......................45
4.2 Industry Issues...................................... ..53
5 IDENTIFICATION OF MAIN PROBLEMS.......55
EXECUTIVE 5.1 Activation Tax.........................................55
5.2 Withholding tax..................................... ..55
SUMMARY 5.3 Investment.............................................56
5.4 Devaluation of Currency .........................56
6 FINDINGS............................................. ..58
6.1 Network Connectivity Problem.................58
6.2 Dirty SMS............................................... .58
6.3 Rough/Unreal Ideas in Advertising............58
6.4 Too Much Advertisement..........................58
6.5 Advertising Budget..................................59
7 RECOMMENDATIONS...............................60
7.1 Installation of equipment with professional
engineers.....................................................60
7.2 Call Rates & SMS Bundle offer..................60
7.3 Attractive Advertising.............................60
7.4 Control on Advertising and Budget...........60
8 CONCLUSION................................ ..........61
9 REFERENCES .........................................62
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1 INTRODUCTION
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2 COMPANY ANALYSIS
2.1.1Organizational Structure
The organizational Structure at Ufone is Lean or Horizontal structure.
One of the organizational functions of Ufone in relation to its hierarchy
is, the company is having Decentralized structure. The flow of
communication becomes easy and simple in such structure. It is
divided into different departments and every department has its head
and all are interconnected.
The concept of Departmentalization is effectively in practice at Ufone.
There are different departments which are working within their
functional units to contribute towards the success of organization and
to achieve the over all goal of the Organization. Ufone has 8
departments that are working efficiently and all are interacting with
each other to make it a much better company by satisfying its
customers demand.
2.1.2Finance Department
The head of finance department is designated as CFO – Chief Financial
Officer or Vice president of financial head. There are further 4 sub-
heads in Finance Department:
• CNC
The department is responsible for Credit exposure for Ufone
postpaid connection. The department maintains the record of all
postpaid subscribers in order to ensure the subscribers validity.
• Accounts
The accounting head is responsible for the book keeping of the
records. The internal audits are done to ensure the stream lined
working of the processes as well as external audit by the
Accountancy firms.
• Revenue Assurance
There are Revenue Assurance policies & procedures being made
by the personnel. This assurance head also Liaise with other
departments, obtain, analyze and reconcile reports to ensure
prevention of revenue leakage. The sub-head also ensure error
free billing operations, deployment of key revenue assurance
applications/solutions, fraud management.
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2.1.3Marketing Department
The head of marketing department is designated as CMO- Chief
Marketing Officer or Vice President of Marketing Head. The department
has further 3 subheads working in specialized manner according to the
skills and abilities of the employees.
• Brands
There are basically two products of the Ufone which serves as
the brands of the company. This sub-head is responsible for the
execution of the Brand Activities. Ufone is performing the
promotional activities in Brands sub-head, including advertising
over Electronic media and print media. The promotional
strategies are made by the sub-head to get the implementation.
• Billing
The billing department is responsible for aggregating CDRs and
preparation of the postpaid billing for customer from system.
• IT Development
Any kind of IT development required by the company in billing or
CRM (Customer Relationship Management) module is done by IT
development team.
o Call Centre
Cal centre representatives are providing services, 24 hours
a day. The customers can contact the Ufone Call Center to
get answers to all their queries. Some of them include:
o Business Centre
The business centre of Ufone are offering various services to
their customers, they are basically company owned centre,
the business centre offers the SIM issuance and other
customer related issues, retention of customers and handling
requests for Mobile number portability.
• Govt. Relations
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PTA – Pakistan Telecom Authority is the regulatory authority in
Pakistan concerning the network operators as well as
telecommunication practices. Ufone is also abiding the rules that
are being made by PTA. The relationship with PTA is also being
maintained as PTA is Govt. regulation.
2.1.6Engineering Department
The engineering department is Backbone of the company. The head of
the department is termed as CTO - Chief Technical Officers or Vice
president. The Engineering department is divided into 4 sub-heads
• IN – Intelligence Network
The Intelligent network’s main purpose is to take care of
charging of prepaid customers and has the balance updates of
each of the customer.
2.1.7Sales Department
The sales department at Ufone is headed by Vice president Sales. The
department is being divided into 3 main sub-heads.
• Corporate Sales
the division of the sales department is handling the sales for
executives or corporate clients. These clients are having postpaid
products with billing system.
• Franchises & Retail Outlets
this division is handling franchises and retail outlets with a
network of more than 365 franchises and 25 company-owned
customer service centers along with a distribution network of
150,000 outlets nationwide.
• Sales operations
Sales operations at the company have been set up to provide the
customers, quality services all under one roof so consumers can
walk in to any Ufone Sales & Service Center for services like:
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outsourcing with a help of a third party. Final selection takes
place after the candidate has been interviewed by the Manager
of the department who requires the new employee and then the
HR Manager.
• Training
Training & Development involves improving the knowledge, skills
and abilities of the individuals. A continuous training is
conducted inside Ufone to improve the performance of the
employee. There are two types of trainings conducted at Ufone:
In-house Training and External Training.
• HR Operations
o Orientation
o HR hiring / recruitment
o Selection Process
o Building Synergies
o Long-term Planning
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2.2 HUMAN RESOURCE ANALYSIS
2.2.1Management
In Ufone the hierarchy is very lean, in general the whole setup is
centralized all the matters are to be reported to the head office and all
the policies and targets are approved at the higher level. But at the
branch level the structure is decentralized.
2.2.2Personnel
There are about 150 employees who are working in the Ufone Head
Office and 2500 employees serving nationwide. All of them are very
devoted as they are given a wonderful learning environment to work,
pay offered to them is also very attractive and ample chance of
progress motivates them to work more. The job analysis is done on
targets assigned and daily routines. The employees are indeed very
satisfied and motivated.
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• Medical Facility to employee and his/her parents
• Paid Vacations
2.2.6Orientation
A newly hired employee is oriented so that he can get an idea about
the organizational setup so that he may feel at home. At Ufone
orientation plan covers the following points:
• Visits to different department of the company
• Company’s Policies, Rules and Regulations
2.3.1PRODUCT
Ufone understands the value of words and the need to communicate
effectively and efficiently at all levels of society, which is why
company’s primary focus is on U. Ufone offers, Prepay & Postpay
services in the Telecom sector.
• Ufone Prepay
• Ufone Postpay
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U-Circle
Prepay provides an easy way to call Friends & Family. Ufone is making
it easy for its consumers to call friends & family with U Circle. Now the
consumers can talk more for less with the most economical rates to
call their Ufone Circle.
U Share
Ufone Prepay customers can now share their balance with
each other through a simple SMS in 3 easy steps.
2.3.2PRICING
As compare to other telecommunication companies, Ufone offers its
services with lower and affordable rates. The price of product matters
in the market but low price with high density service is not an easy
task to accomplish. For the satisfaction of valued consumer Ufone
merged the low Price and high density services with wide network.
Both, the Prepay & Postpay tariff are being defined as follows:
Outgoing Call
rates / Off Peak 1.50/- 2.50/- 2.50/-
(10pm -7am
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Ufone Postpay provides you with matchless call plans to suit your
lifestyle and connectivity drive. Use your Ufone Postpay for business or
leisure and stay connected all the time.
Pricing Strategy
2.3.3PROMOTION
For the promotion of product, print media, electronic media, billboards,
broachers and leaflets has been utilized for the awareness of various
customers.
Time to time, Ufone promotes its services / schemes to their users and
general public via using various type of promotion channels. Through
the advertisements people get awareness about the product and are
able to choose the best one for fulfill their requirement in Mobile
Telecommunication.
• Electronic media
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advertisement of post pay has been very much attractive for the
business class customers with the slogan of endless possibilities.
• Print Media
• Billboards
• SMS Marketing
• Internet Marketing
There are users who are active
users. They are in continues
contact with www i.e web.
These users try to find the
solutions through internet.
Ufone website
(www.ufone.com) contains
bunch of information about the
product, services, coverage,
placement, and value added
services. Website is playing a
leading and significant role for the promotion of product. Ufone is
promoting its brand through cyber marketing in which they have
placed their brand’s slogans and latest reviews. For example they have
placed banner ads on various sites. The renowned community
FACEBOOK is also having its advertisements on the right pane of the
window.
2.3.4PLACEMENT
Ufone, being one of the leading cellular service providers has recently
launched its service in many new cities. Keeping up with its pace it is
rapidly expanding its network.
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Ufone keeps on adding new cities with same superior network that
continues to expand. Ufone covers all major cities of Pakistan now
consumers can enjoy comprehensive coverage in areas like the GT
Road, Super Highway & Motorway etc. So wherever they are in
Pakistan, Ufone keeps them connected.
2.3.5Market Segmentation
Ufone is segmenting the market according demographic segmentation,
i.e. on the basis of age groups. Ufone has segmented its product on the
basis of its features.
• Ufone Prepay is segmented for the youngsters, whit attractive
packages to their requirements
• Ufone Postpay is segmented for the people of mature age,
having their own business, belongs to business class or people
who are senior executives of the organizations
2.3.6Target Market
Ufone has the target market concerning youth in the nation. This target
market of youngsters comprises of the 40% population. Ufone is having
focused advertising towards the target market simultaneously focused
brand building over the market segment of youth.
Ufone is targeting the emerging segments of middle class in the
population to increase the number of subscribers as well as the
revenue generation from these subscribers
Ufone has also targeted the corporate class, for which Ufone is
customizing the packages in order to preserve the existing small but
profitable corporate of SME market segment.
2.3.7Market Dominance
Ufone is having a concept of Market dominance. Ufone is a measuring
the strength of its brand, product, service, and firm, relative to
competitive offerings. For being competitive in the market and while
following the strategies based on market dominance, Ufone has
become the LEADER, instead of follower or challenger of new offerings.
While being a leader of the various offerings, it has maintained the
marketing of its product within shortest span of time. This maintenance
has been done in order to make people aware about the latest
offerings of the Ufone.
2.3.8Market Differentiation
Due to aggressive competition in Pakistan mobile companies, the
operator needs to differentiate their product from others in order to
attract more and more customers. Ufone with its basic or core product
which is becoming homogenous with the other’s products is struggling
to introduce the differentiating offers for the consumers.
In the telecom industry, for differentiating the product means to bring
and implement some new and innovative technology. Technological
improvements at Ufone are continuous process. These practices of
bringing something new to the society at Ufone are emerging in the
context of GPRS and 3G services. Ufone is not only emerging
technologies but also maintaining a technological dominance for the
services it is providing.
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• Pocket Data Services
• Virtual Private Network
• Call Features
• Messaging Services
• U-Share
3 ENVIRONMENTAL ANALYSIS
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system where it blocked number of mobile handsets stolen or reported
theft by users.
3.1.1Major Product Lines Market Segment
MOBILINK
Mobilink is having two major products which have catered the market
of consumers. Each of the products is having its distinct services in
according to the segmentation of consumers.
• Indigo
Mobilink indigo is one of product of Mobilink Orascom Telecom
Company, this product line has been launched to attract the
executives of the companies, in order to facilitate them
according to their business requirements. Indigo offer the
business consumers to Enjoy value that remains unrivalled with
an enhanced indigo lifestyle that better delivers on thier
businesses and personal communication needs. Mobilink indigo
has provided their consumers with postpaid experience, with
several of distinctive facilities. Indigo is providing holistic
coverage with international roaming for the business executives
and superiors. Freedom plans are also one of the benefits to the
consumers as discounted airtimes to pursue the business
communication at the right time. Like all other products, the
Mobilink indigo is also providing instant customer care.
• Jazz
Another product of Mobilink is JAZZ. The product is
segmented to cater the young profiles in the country.
Mobilink’s mostly sold product is JAZZ. As it is giving the
youngsters the joy and colour to their lives according tot
their requirement. Jazz is providing a bouquet of benefits in
the form of full services, attractive call rates and network
reliability, jazz liberates its jazz subscribers from the
shackles of silence, so that the consumers can better
express themselves. The product offers the prepaid
perspectives but the nature can be changed to postpaid as
well. Due to large sales of the product, its being used by the
subscribers of different ages.
TELENOR
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• Persona
Telenor is offering a great product deal for the business
managers and executives. The professional lives of the
subscribers are benefitted with the Persona cellular connection.
Persona is Postpaid connection and is giving the consumers with
instant connectivity, simple and uncomplicated billing and a host
of value added services with EDGE for the first time in Pakistan
and international roaming for the excutives in almost 125
countries.
• Djuice
Djuice is another telenor’s product, this product is Telenor’s
international youth brand and was first launched in Norway. Since
then, it has rocked youth in Sweden, Ukraine, Hungary &
Bangladesh. Pakistan is the addition to the djuice family, having
launched in March 2005. Since then, djiuce is attracting youth
with different services innovative in nature.
• TalkShawk
Telenor Talkshawk is the most famous among the telenor
products, the product is prepaid connection with various
conveniences. The talkShawk Connection of product is Prepaid
connection for its subscribers.The smartest package to call any
network, anytime with amazing call rates, freedom to recharge
through Easyload.
WARID TELECOM
• Consumer Postpaid:
• Consumer: Zem
• Warid Corporate
UFONE
• Ufone Prepaid
• Ufone Postpaid
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An endless possibility of Ufone Postpay is a connection that
connects with customers determination to conquer all odds.
impressive for another year and all companies together added more
than 25 million subscribers to their networks. Total subscribers crossed
88 million at the end of 2007-08.
During the year 2007-08, Telenor added about 7.4 million subscribers
as compared to 7.1 million in 2006-07. Mobilink comes second with the
addition of 5.7 million subscribers during the same period. Warid
telecom succeeded to add another 4.8 million subscribers this year.
Ufone added 4.0 million subscr-ibers in 2007-08 as compared to its
addition of 6.5 million in previous year1. CMPak entered the cellular
market with aggressive marketing and infrastructure roll out. Its growth
was negative previous year but this year it added 2.9 million
subscribers in last few months. Cellular Mobile penetration in Pakistan
reached 54.7% at the end of 2007-08, which is 15.3 percentage points
higher than the last year.
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Cellular Mobile
Penetration in all
provinces has increased
in last one year. The
province of Punjab
toped in numbers
though its total
teledensity is second to
Sindh. Total subscribers
in Punjab at the end of
June 2008 reached 52
million compared to 37
million in 2006-07.
Growth of cellular Sector subscribers remained highest in the province
of Baluchitsan where subscription grew by 57% in 2007- 08 with total
cellular subscribers approaching 2.2 million compared to 1.4 million in
2006-072. When compared with 2006-07 and 2007- 08, Cellular Mobile
penetration has increased by 36.8 percentage points in Punjab and its
total teledensity climbed to 58.0% at the end of 2007- 08, which was
42.4% in 2006-07. A significant improvement in Baluchistan has been
noted where its cellular Mobile teledensity has reached 27% in 2007-08
which was just 17% at the end
of 2006-07. This improvement is due to the special attention of
regulator and Government of Pakistan for this province in telecom
sector in last year.
3.2 COMPETITOR ANALYSIS
3.2.1MAJOR COMPETITORS
MOBILINK
• Strengths
Market Leader (Market share) • Weakness
Most exposed to loss of customers
• Largest Network Coverage • Weak customer care
• Strong Brand (Jazz) • Billing issues & hidden charges
• High %age of high end • Technical issues due to mix of old &
customers new infrastructure and multiple
• Low network dependency on 3rd vendors
Party (own backhaul fibre & LDI) • Slow process due to OT
• On net advantage • Internal bureaucracy
• Can charge price premium • Unsustainable opex structure
• Strong media presence • 3
• Financial muscle through strong 35
top line
• Experienced & dynamic team
Opportunities Threats
Opportunities Threats
TELENOR
Telenor are the fastest growing mobile network in the country, with coverage
reaching deep into many of the remotest areas of Pakistan. In the most difficult
terrains of the country, from the hilly northern areas to the sprawling deserts in the
south, at times we are the only operator connecting the previously unconnected.
• Global Operator
• Strengths
Aggressive rollout of network Weakness
• Brand consistency • Top management “Non-Pakistani”
• Strong retail network • Single Vendor
• Employee loyalty (HR) • High Capex & Opex cost
• Quick reaction to competitors • ZTE equipment in northern area
• 100% equity financed operation (untapped market)
• Long term vision for profitability
• Strong & effective marketing
• Strong vendors (Nokia siemens)
• Maintaining substantial growth
in revenue
Opportunities Threats
Opportunities Threats
WARID TELECOM
Opportunities Threats
• Blackberry to attract high end • Market reaching maturity
market • Socio/economic indicator
• Synergies with group companies • PTA regulations
(BAL /Wateen / Wincom) • HR (FnF)
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• Singtel buyout of major stake in
company
• Brand revamping
ZONG
Zong is the first International brand of China
Mobile being launched in Pakistan. It is meant to
empower and liberate the people of Pakistan in
every nook and corner of the country. It will
become a part of their hearts, their minds and
bring about a change in their lives that every one desired but few
thought would be possible.
The core essence of ZONG is to allow people to communicate at will,
without worrying about tariffs, network coverage, capacity issues or
congestion. ZONG will be supported by ground breaking
communications, trend setting customer service and an unmatched
product offering which will redefine rules of the game and establish
ZONG as a serious contender for the number one spot.
Strengths Weakness
Opportunities Threats
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3.2.2COMPETITORS MARKET SHARE
Market share of operators is considered an important tool to gauge the
level of competition in any sector of the economy. Marker shares of
Cellular Mobile Operators indicate that market is moving toward
perfect competition where the share of major operators are declining
and new entrants are able to grab more share in the market. During
the year 2007- 08, Telenor has emerged as fastest growing operator
who has improved its market share from 17% in 2006-07 to above 21%
slightly higher than Ufone who also has 21% market share. On the
other hand, the leading mobile operator, Mobilink is loosing its
Significant Marker Power place rapidly and its
• Mobile Sector
• Fixed Line Sector
• Wireless Local Loop Sector
• Payphone Services
• Internet Services
3.3.1Technological Problem
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enormously telecom companies must tie their hands together to share
their infrastructure to minimize the expenses.
Estimates, suggest that there are more than twenty thousand telecom
towers in he country that worth millions of dollars. Market study
predicts that at least 20% telecom towers are erected with no
competitor's presence, which can be shared amongst the cellular
operators. Telecom infrastructure sharing can not only shave the fat off
an operator's capex but also opex costs as well, can be vital in coming
days. All operators' under the umbrella of government must unite to
gain the benefits of network sharing.
3.3.2Innovation
Pakistan Telecom has a lot more to achieve, the industry may further
expand and lower tariffs can also be achieved. The present players
have many chances to take lead, as consumers are more well-aware
about their purchase decision concepts such as connectivity, coverage,
voice quality and value added services and will only go for the best
packages available. Broadband in the last mile, Value added products
and content development are rather barely explored markets and offer
a great deal to an aggressive investor. 3G services in major cities
would take a slow start but will catch on fairly well and will be a major
contributor in satisfying consumer’s needs provided these are offered
at affordable cost with easy access, availability, reliability and with
abundant content.
Our Industry already has LL (Local Loop), WLL (Wireless Local Loop),
LDI (Long distance and International), and ISP (Internet Service
Provider) players and WiMax; 3G cellular systems are expected be a
part of this Industry soon. Many actions have been started to make 3G
services casual in society.
Recommendations
3G - the major force for broadband penetration. The following are some
of the recommendation for the growth of 3G broadband market in
Pakistan.
3G licensing
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R&D Fund
The R&D fund is not being used for sectors benefit and it is
recommended that either the R&D fund is abolished or reduced to a
logical level with considering historical utilization with respect to
growth in cellular industry. The scope and utilization of the R and D
fund needs to focus on:
Major Tasks
The work I have done in the PMO department was related with
analyzing the strategies of the company. The department – Strategic
Planning And PMO is concerned with planning for the strategies, the
future perspectives and managing the business operations.
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understanding. The reports were not only to provide a minor help to
the supervisors but also to aware the internees about the state of
telecom industry in various aspects. The reports were not much
complex and complicated. It was required to provide a 4 or 5 pages
report within 5 days.
MOBILINK
Mobilink, an SMP operator has reduced its tariffs for different packages.
Recently, Mobilink has also introduced Jazz One package in which its
subscribers can call at very attractive rates. Mobilink has reduced off-
net tariffs of Jazz Budget, Jazz Octane and Jazz Ladies First packages in
February 2008. For Jazz Octane package, on-net tariff has been
reduced from Rs. 2.50 to Rs. 2.40 per minute whereas off-net tariff is
reduced from Rs.2.99 to Rs. 2.50 per minute. Similarly, off-net tariff for
Jazz Ladies First package has also been reduced from Rs. 2.99 to Rs.
2.50 per minute respectively. Moreover, Mobilink introduced “Apna Jazz
Connection ON Karein” promotion which was specifically made for
those who did not get the chance to experience lowered Jazz tariffs.
Mobilink posted an unconditional Rs. 30 worth of balance for those who
did not used Jazz connection since
For SMS , Mobilink has offered three different SMS packages (only from
Mobilink to Mobilink) to its prepaid customers where it has offered
unlimited SMSes for one month for Rs. 100, 500 SMS in 15 days for Rs.
50 and 100 SMSes for Rs. 15 in 7 days. Mobilink also introduced Club
Red promot ion for its subscribers who wanted red carpet treatment.
Under this offer, Jazz subscribers who crossed the monthly usage
threshold of Rs. 1,000 got 50% discount on all calls to Mobilink
numbers for the remaining days of the month. China Mobile launched
three prepaid packages in April 2008.
CM PAK
CM Pak is offering one free number in which subscriber can make free
on-net calls (from 12 am to 7 am) for a lifetime. Up to 10 family
members can be added in free package. Happy Hours has been offered
in 12 Aanay Package which can be modified once everyday. Charges
for modification of Happy Hours are Rs. 5. It has also introduced 8
Aanay ( 50 paisas) offer in which its subscriber can call to other
networks at Rs. 1.40 (for the first minute) and Rs. 1.00 per minute
(from second minute onwards). CM Pak offered 1,000 SMS per day with
charge of Rs. 3.00 to its prepaid customers irrespective of the network.
TELENOR
Telenor launched a value-added service (VAS) by the name of 'Telenor
Auto Advance'. This unique service allowed Telenor prepaid customers
to continue the call even after their balance exhausts. The service was
activated free of charge for all Telenor prepaid customers. Telenor Auto
Advance Service can be extremely useful in emergency situations
where one call can make the difference. Subscribers on the move, far
from a recharge location or simply out of cash can benefit from this
service. Under the service, when a subscriber reaches the end of his
balance, the call will continue without disconnection and the balance
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will be adjusted in next recharge. Telenor Auto Advance is only
available for voice calls at the moment. Recently, Telenor also launched
Ask Telenor and Tele Doctor 1911. Telenor launched free unlimited on-
net calls offer (from 11 am to 2 pm) for limited time period. Service
activation charges for the said promotion were Rs. 49 (exclude tax).
Telenor received overwhelming response on this promotion. Recently
Telenor has launched SMS Fulltime offer for its prepaid customers in
which its subscribers can send up to 10,000 On-net SMS with charge of
Rs. 99/-. Telenor's Djuice subscribers can now make free calls (from
1am to 6am) at 5 friends and family numbers with daily charge of Rs.
3.99. It may be noted that call setup charge of Rs. 0.05 per call is also
applicable for these free calls.
WARID
Recently, Warid Telecom has launched Pakistan Package wherein its
subscribers can avail 50 free on-net minutes and 500 SMS/MMS for Rs.
15.00 per day. Warid also launched SMS craze in which its subscribers
can send 2000 free SMS/MMS (on-net as well off-net) at Rs. 150/-.
Sunday craze is another promotion by Warid in which subscribers can
make unlimited free calls on Sundays from 8 am to 12 pm at a weekly
subscription of Rs. 15/-. In infinite craze, Warid subscribers can make
free calls from 12 am to 7 am to one Warid number and unlimited
SMS/MMS from 12 am to 7 am across Pakistan with daily charge of Rs.
10/-. In the period of last few months. Warid has also offered number of
value added service to its prepaid customers that counts, Zem Talky,
Zem committee,
We can see that Ufone has priced its calling rates of same, other and
Calls
Off Fixed Line
Same Network International
Network Network
Ufone
Mobilink
Telenor
fixed line networks, somewhere between the highest and the lowest
rates in the industry. However, as far as the rates for the international
calls are concerned they are the lowest in the industry.
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in terms of network and service accessibility. However, it needs to
improve its call completion ratio.
SMS
Mobilink 100
Ufone 99.9
Telenor 100
The table below shows pricing for value added services of different
mobile operators. These prices are inclusive of 21% GST. The prices
highlighted in blue depict the lowest and the prices in red depict the
maximum for each category in the market.
MMS Activation
Not Available Free Free
Charges (Rs.)
Low
Economy Penetration
UFONE
P
TELENOR
R
I
Skimming Premium
C
WARID
E
JAZZ
S
I have placed the major network operators in the Pricing Stratgy Matrix
on the basis of the pricing information. Also about Ufone calls rates,
sms rates and quality we can conclude that:
• Ufone has priced its sms rates low and provides a high sms
service quality to penetrate the market.
• Due to high quality of service Ufone has priced its call rates at
cost plus premium price.
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Market Share:
Franchises:
Cell Sites
Coverage
• Falling ARPU
• Steady subscriber and revenue growth although a slight
decrease in growth has been appreciated from the previous year.
• Intense competition by new international players coming to the
market recently.
• Network deployment in the regions to increase addressable
market as a measure against falling ARPUs.
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5 IDENTIFICATION OF MAIN PROBLEMS
The main problem in the current era faced by the telecom industry in
Pakistan is increased taxes imposed by government. The companies
existing in telecom sector are facing major decline due to the fact.
5.2 Withholding
tax
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Withholding tax is an advance income tax, which may be adjusted at
the end of the year. Cellular Mobile sector contributes a huge sum of
amount in the form of withholding tax to FBR. During the year 2007-08,
cellular mobile companies deposited over Rs. 23.2 billion, which is 33%
higher than the last year. Mobilink has deposited over Rs. 10.1 billion in
this head, which is 44% of total WHT deposited to FBR in 2007-08.
Telenor's share in total WHT was 25% who deposited over Rs. 5.8
billion during 2007-08
5.3 Investment
In this competitive market, operators are bound to increase the
investment to get more shares of subscribers. In last 5 years, cellular
mobile operators have invested over US$ 8.4 billion in Pakistan which
has created large number of employment opportunities all across the
country. During 2007-08, Cellular players invested over US$ 2.3 billion,
which is 12% lower than the previous year. During theyear 2007-08,
Mobilink invested over US$ 919 million while Telenor invested over US$
565 million. CMPak is another operator who started expanding lately
and invested over US$ 200 million in last few months. Warid and Ufone
invested US$ 480 and US$ 232 million respectively during the year
2007-08.
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7 RECOMMENDATIONS
Ufone is a place where one can live his dreams and pursue a career
that reflects his skills and passions. People in Ufone give flexibility for
change, the opportunity to learn, and providing career options with
endless possibilities The managers at Ufone believes that all
employees have a right to offer input and be involved in helping their
organization grow.
All departments are working together and they wants to create a work
environment in which employees can improve their minds,
continuously learn, gain professional growth and feel inspired by
similarly motivated individuals. The Ufone takes pride in providing the
best possible working environment. They take a constant interest in
ones progress by conducting evaluations and offering the support and
resources one needs.
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9 REFERENCES