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A Report on:

TELENOR
A NEW INVESTOR IN
MOBILE INDUSTRY OF PAKISTAN

National University of Modern Languages

Subject: International Business


Submitted To: Madam Tajwar Ali
Submitted by: Course: MBA-IV

Group Members:

M. Awais
Kamran Nisar
Nazuk Rustam
Qadeer Ahmed Durrani
Rehan-ul- Manzoor Khokhar

Telenor Pakistan

Address
Telephone
Fax
Email
Web site
Position
Chief Procurement
Officer

Ground Floor, Saudi Pak Tower, 61 - A Jinnah Avenue, Islamabad, Pak


+92 51 280 0243
+92 51 280 0399
telenor@telenor.com.pk
http://www.telenor.com/pakistan
Contact name People
Kurt Severinsen

Main sites: Islamabad (HQ)


Main markets: Pakistan
Year established: 2004
Summary Of Main Activities
Telenor Pakistan acquired a nationwide GSM license in Pakistan in April 2004. It includes GSM,
GPRS and EDGE. The company plans to launch a mobile service platform including multimedia
services in April 2005.

Mobile networks and services


Cellular network operator
2nd-generation cellular network operator
GSM network operator
2.5G cellular network operator
EDGE & GPRS network operator

Mobile Networks And Services

Acknowledgement
This report is completed by the humble efforts done by all the group
members on the basis of information and knowledge that we gained from
our prestigious institution and the information that we got from the
relevant company. We would like to pay gratitude and thanks to all the
company employees who gave us information about our topic and we also
we want to thank our subject teacher Madam Tajwar Ali, who taught us a
lot about this subject and through which become able to make this
project.

Executive Summary
This report is about a mobile company Telenor. It is a multinational company and its
head office is in Norway. The company has its branches in 11 countries and is one of the
mobile leader companies in the international market. Now they have decided to expand
their business in Pakistan. In Pakistan they will introduce both mobile sets and connections.
The company has got the license-approved from the Government of Pakistan to work here.
They have stated their work and their plan is launch their product in market till March
2005.
In this report we have analyzed that as there are already four companies providing mobile
services to the customers. i.e. Mobilink, U-fone, Paktel and Istaphone, so how will Telenor
compete these companies and what strategies and plans it would make to progress in the
Market?
We got very little information from the Telenor Company office in Islamabad because they
said that the company is in working stage and it will not welcome any one to take
information relating to their future plans and other strategies until they launch their product
in the market. It is kept confidential by the company employees. Therefore the report is
made from the information and data gathered from the websites and the newspapers.
The first three chapters are based on the working of Telenor Company in their offices in
different countries, their product and services and their plans to launch in Pakistan because
Pakistan has a huge market of customers. The company had good experience of offering
affordable services to attract new customers in countries with fairly low mobile penetration.
It will bring healthy competition that will help improve service quality, reduce tariffs and
create employment opportunities and there is a lot of potential of cellular phone expansion
in Pakistan and the company want to make good operation as they already have experience
in this region. In short, the whole Pakistans telecom sector is likely to grow and improve
tremendously.
In next chapters we have explained about the Telenor setup in Pakistan, its SWOT analysis.
The analysis was based on the information we got and the trends of the mobile industry of
Pakistan. In the end we have given the problems that the company may face in future
because the time from which the company had got license of working in Pakistan. The other
mobile connection companies have lower down their rates up to zero and this appears to be

the biggest threat for the newly launching company. Then we have given some suggestion
that how the company can compete in the market and strategies it should follow.
We hope that if this report becomes the point of interest for the Telenor Company and they
just appreciate our suggestions, we will think that our work has some value and we have
succeeded in our task.

TABLE OF CONTENTS
Chapter no

Index

Page no

01

Introduction

01

02

Telenor Business Areas

05

03

Telenor in Pakistan

11

04

Telenors Satellite Fleet

14

05

SWOT Analysis

17

06

Problems and Solutions

21

Chapter # 1

INTRODUCTION

Elenor Mobil is Norway's leading provider of mobile services. The company


provides services to both the private and business markets, spanning from text and

image messaging to mobile exchange solutions.


Telenor Mobil was established in 1993 and provides services in both the GSM and NMT
networks. The NMT 450 network will be operational only throughout 2004. GSM covers
99.4% of the population in their homes (October 2004), and coverage is continuously
expanded. Telenor Mobil launched sound and image messaging (MMS) in 2002, and is
strongly committed to mobile Internet, m-Commerce and mobile data services. When
Telenor Mobil opens its third generation mobile network (UMTS) for commercial use,
the current services will be extended, faster and more advanced.

History
Telenor's origins go all the way back to 1855, and for 150 years the company has been
Norway's leading telecom player. In the 1990s, Telenor went from being a state
monopoly to become a commercial enterprise and the company is today positioned as an
innovative player in international mobile communications.
In 1994, the then Norwegian Telecom was established as a public corporation. In
December 2000, the company was partly privatized and listed on the stock exchange.
This transformation took place as a gradual adaptation to increasing competition in the
Norwegian telecom market after deregulation in the 1990s, with free competition for all
services from 1998. It has successfully defended its strong position in Norwegian
market.

Telenor's strong international expansion in recent years has been based on leading-edge
expertise, acquired in the Norwegian and Nordic markets, which are among the most
highly developed technology markets in the world. Internationalization was achieved on
the basis of strong positions in satellite communications, in mobile communications and
in domestic Internet activities. Telenor has been one of the world's leading suppliers of
satellite communications for many years. Norway and the Nordic region have been in
the forefront of the development of mobile communications, and Internet use has quickly
gained ground in this market.
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, is scheduled for commercial use within 2004.

Vision
Ideas that simplify

Mission
Telenors mission is to create value for shareholders through the serving of customers,
employees, partners and the general public interest. In long-term perspective a strong
market a customer focus, as well as a strong commitment to its employees and to the
society.

Core Values
Telenors three core values shall be at the heart of governing the conduct of its
employee-internally and externally:

Dynamic

It means having insight and active involvement, coupled with a capacity for
implementation

Innovative

It means continuously being on the lookout for new opportunities for development and
growth

Responsible

It means rasing realistic expectations, deliver as promised and stay committed to the
society, which its group is a part of.

Objectives And Strategy


Telenor believes that responsibility and trust are inseparable. It must have trusting
relationships with customers, owners, employees and society in general. Therefore a
determined effort is made to attend to the Group's responsibilities in society in a
comprehensive and innovative way.

Objectives
Telenor is committed to being both an industry leader in the management and
implementation of corporate social responsibility and to make this an integral part of its
business development. The three primary objectives for its social responsibility program
are:

Telenor's customers shall be confident that the Group runs its operations in an
ethically responsible manner

Investors expecting high standards of social commitment shall prefer Telenor

Telenor's employees shall be proud of the way in which the Group handles its
social responsibility

Strategy
Telenor is committed to meeting its corporate social responsibility in all activities. Its
efforts are based on it's Core Values; dynamic, innovative and responsible. In short, it
will be dynamic and innovative in the way it assume its responsibilities, and will be
responsible in innovation and conduct its business. Reaching these objectives is a
complex process demanding a broad approach throughout the corporation.

Geographical Scope

Over the last decade, Telenor has developed its position as a mobile operator with
substantial operations in 12 countries. At the end of 2003, the companies wherein
Telenor has ownership interests had a total of 34.8 million mobile subscriptions. The
mobile commitments outside Norway have become an increasingly important part of
Telenor's activity, and contributed to 24 per cent of the Group's external revenues in
2003.
The business areas each have defined geographical areas of priority outside Norway:

Telenor Mobile has selected countries in Europe and South East Asia as its
priority markets.

Telenor Networks has activities in Sweden, Russia and Eastern Europe.

Telenor Broadcast has defined the Nordic Region as its home market.

Mobile Operations

Mobile is Telenor's principal focus area for future growth. Continued development of the
mobile

activities

is

vital

to

the

Group's

positioning

as

an

international

telecommunications player.
Telenor has ownership interest in 12 mobile operations geographically concentrated in
selected countries in Europe and Asia. In 2003, 42% of its external revenues were
derived from the mobile operations. Telenor's commitments on the international mobile
arena are based on Telenor's acquired experience and skills, and on products and services
developed and shared within Telenor's family of mobile operations.

Chapter # 2

TELENOR BUSINESS AREAS


Business Areas
The Telenor Group has activities in a number of areas in Norway, the Nordic Region and
internationally. Telenor has gone from being a national telecommunications operator to
become an international player with its main focus on mobile services.
In the continued development of its activities, Telenor will continue to build on the solid,
existing platform. The strong Norwegian position will form the basis for new growth. In
immature markets and with respect to new product ranges, Telenor will look for options
to position itself for the future. Growth will come through a strengthening of our
international commitments in growth markets.

Mobile
Mobile is Telenors business area for development and management of mobile service4s
within voice, data, Internet and cot net services in Norway and internationally

Broadcast

Broadcast is Telenor's business area for TV-distribution


via cable and satellite. Telenor operates the Norwegian terrestrial network for radio and
TV broadcasting and is the leading provider of satellite transmission to the Nordic region
via three geostationary satellites.

Fixed
Fixed is Telenor's business area for development, management and supply of
communications solutions based on the fixed network. Telenor has fixed network
operations in Norway, Sweden, the Czech Republic and Slovakia. As of 2003, the
Group's activities in Russia are run through an associated company.

Other Operations
The Telenor Group has activities in a number of areas in Norway, the Nordic Region and
internationally. Telenor has gone from being a national telecommunications operator to
become an international player with its main focus on mobile services.

Other Units
Telenor has substantial activities in addition to the three business areas, also including
various staff and support functions: EDB Business Partner, Telenor Satellite Services,
Telenor Satellite Networks, Teleservice, Telenor R&D, Telenor Key Partner, Telenor
Venture and Telenor Eiendom.

EDB Business Partner ASA


At year-end 2003, Telenor held an ownership share of 51.8% in EDB Business Partner
ASA. EDB Business Partner ASA is one of the Nordic region's leading IT groups, with
revenues in 2003 of NOK 4.3 billion and around 2,500 employees. EDB Business
Partner is a supplier of software solutions and offers management services with special
expertise in telecommunications, banking and finance. EDB Business Partner has a
strong presence in the Norwegian market, as well as in the US, Sweden, the UK,
Switzerland and Spain.

Satellite Services
Satellite Services is wholly owned by Telenor, and supplies satellite-based voice and
data services for use on land, in shipping and the offshore industry and in aviation.
Subsequent to the acquisition of Telenor Satellite Services Inc. (formerly COMSAT
Mobile Communications) in January 2002 and Marlink (formerly Sait Communications)
in 2001, Telenor Satellite Services has become one of the world's leading suppliers of

global, mobile communications solutions via satellite. The services are marketed through
a broad international chain of distributors as well as from own offices around the world.

Satellite Networks
Satellite Networks is wholly owned by Telenor, and supplies satellite-based
communication solutions and VSAT technology to the business market and national and
international organizations. The company's complete communications solutions
encompass network design, implementation, management and service. The services are
supplied through subsidiaries in Norway, the Netherlands, Slovakia and the Czech
Republic.

Teleservice
Telenor wholly owns Teleservice, and responsible for Directory Enquiries 1881,
International Directory Enquiries 1882, MeetAt 07777 (telephone and data conferences)
as well as other Contact Center services. The company aims at making information and
communications services easily accessible to users. In February 2002, the market for
directory enquiries was opened to competition in Norway, but Directory Inquiries 1881
still has a dominant position in the Norwegian market with 70% of the traffic.

Research And Development


Telenor Research and Development makes an important contribution to Telenor's valueadding services through strategic consultancy, innovation and improvement of existing
solutions. The research and development activity is mainly linked to future broadband
networks and mobile systems, as well as new services and customer solutions across
different networks. R&D also carries out work on new business models and takes part in
strategic processes in the Telenor Group. R&D is Norway's largest research community
in the field of ICT, and is regarded as one of the leaders in specific areas within
European research collaboration.

Telenor Key Partner


Telenor, and supplies technology-based administrative services to the groups business
areas and subsidiaries wholly own Telenor Key Partner. Telenor Key Partner is a driving
force in achieving standardization and quality improvements in the administrative
running of the whole Group. The company's services are based on viable business
principles and market-oriented prices.

Venture
Telenor Venture is seeking to create value through active ownership by investing in
companies in the fields of telecommunications and IT. Telenor Venture II ASA was
established in 2000 with the purpose of continuing and expanding the investment
activities, and in December 2002, Telenor Venture III was established to continue
activities formerly organized under Telenor Innovasjon AS and other parts of the Telenor
Group. Telenor's ownership share in Telenor Venture AS was sold at the end of 2003.
The ownership share in Telenor Venture II ASA is 50.1% and 100% in Telenor Venture
III AS. The Telenor Venture companies are managed and administered by TeleVenture
Management AS in which Telenor has an ownership share of 23.9%.

Eiendom Holding
Telenor wholly owns Eiendom Holding. At the end of 2003, the company managed
approximately 1 million square meters of owned and leased floor space spread out over
approximately 4,500 buildings. The company's main task is to ensure that the Telenor
Group has at its disposal sufficient premises to allow its main activities to be performed
in a cost effective manner.

Internal Processes

Telenor's primary focus regarding social responsibility is in internal operations,


providing its employees with a safe and positive working environment, encouraging
environmental awareness and promoting sound business ethics throughout the
organization. It is vital to Telenor that its management and workforce handle ethical
dilemmas correctly and adhere to the company's high standards when interacting with
customers, markets, public authorities and other stakeholders.

Telenor Share In Different Countries


Country

Company

Ownership Share

Norway

Telenor Mobil

100%

Sweden

Telenor Mobile

100%

Denmark

Sonofon

100%

Hungary

Pannon GSM

100%

Montenegro

ProMonte

100%

Pakistan

(License)

100%

Malaysia

DiGi

61%

Ukraine

Kyivstar GSM

56,5%

Bangladesh

GrameenPhone

51%

Thailand

DTAC

40,3%

Russia

VimpelCom

29%

Austria

ONE

17,5%

= Consolidated
= Non-consolidated
(Table shows the countries in which Telenor is providing services to its customers)

Links To Mobile's Portfolio


Telenor Mobile's Portfolio

Chapter # 3

Company

Country

Telenor Mobil

Norway

Telenor Mobile

Sweden

Sonofon

Denmark

Pannon GSM

Hungary

ProMonte

Montenegro

DiGi

Malaysia

Kyivstar GSM

Ukraine

GrameenPhone

Bangladesh

DTAC

Thailand

VimpelCom

Russia

One

Austria

TELENOR IN PAKISTAN
On April 14, 2004 Telenor acquired a nationwide GSM license in Pakistan. At present
this license for mobile operation includes GSM, GPRS and EDGE. Telenor's Pakistani
company will launch a world-class mobile service platform including multimedia
services within April 1, 2005.

The license terms stipulate that by year 4 we will cover 70 per cent of Pakistan's 297
administrative Tehsil headquarters and will naturally at least fulfill the license
requirements and provide superior quality coverage.
Telenor's Pakistani mobile operator will have headquarters in Islamabad and regional
offices in Karachi and Lahore.
The GSM Association among the 12 largest mobile operators in the world ranks Telenor
with 34.2 million subscribers at the end of March 2004, based on 100% figures from the
operations. Telenor has owner shares in mobile operations in 11 countries across Europe
and Asia in addition to the license in Pakistan. The family of mobile operations benefit
from economy of scale and sharing of knowledge and best practice initiatives across all
the companies. The CEO of the Telenor said:
We are proud to build mobile communication
infrastructure in Pakistan and very much look
forward to combining our experience in mobile
technology with the local Pakistani high level of
competence. Our primary aim is to offer top quality
mobile services and promote healthy competition in
the mobile market

Telenor Acquired GSM License In Pakistan


Telenor has won the auction in Islamabad for one of two new nationwide licenses in
Pakistan for mobile operation. Telenor's winning bid of USD 291 million, secures a 15year license, which will be renewable on application. Only 50% of the license fee is
payable in the first year, with the balance over ten years. In addition the licensee will 2.5
per cent of the annual gross revenue in fees. Existing operators will also have to pay the
same license fee on renewal of their licenses.

Norwegian cellular company, Telenor Mobile Communications, will invest $1 billion in


Pakistan in the next five to seven years as it and the UAEs Warid Telecommunications
signed formal agreements to provide mobile phone services in the country.
Both the companies signed the agreements with the Pakistan Telecommunication
Authority (PTA) after paying 50 per cent, or $145 million each, of fees for licenses
issued to them. Company had not yet finalized a pricing plan because it is more involved
in fulfilling license terms, selecting network suppliers and building the profile of the
service it would offer.
Jon Fredrik Baksaas, President and CEO of Telenor, Said:
"Acquiring the license in Pakistan is a continuation
of Telenor's activities in Asia. Historically Telenor
has successfully focused on start up of Greenfield
mobile operations. We look forward to becoming a
mobile operator in Pakistan and taking part in the
expected growth within the mobile segment",

Why Telenor Selected Pakistan

Norway's software & telecom firms had evinced keen interest in working closely
with Pakistani firms to forge joint partnerships in the telecom & IT sector.

The quality of the software products being demonstrated indicates clearly that
Pakistan can position itself very strongly on the world map as far as this sector is
concerned

Telenor in Sindh is expected to generate much-needed jobs and uplift the


economic activity in the province.

Telenor is one of the two new entrants in the competitive mobile sector in
Pakistan, and this has paved the way for other Scandinavian countries to look at
Pakistan as a potential business partner.

Telenor is the 12th largest mobile operator in the world, and that they have
entered the Pakistani market after carefully evaluating the political and economic
risks.

Pakistan has a stable political environment, a legal framework that guarantees a


level playing field, and a formal regulatory structure; they all contribute to
companies such as Telenor entering the market in Pakistan.

The company will bring healthy competition that will help improve service
quality, reduce tariffs and create employment opportunities

The company had good experience of offering affordable services to attract new
customers in countries with fairly low mobile penetration.

On the whole Pakistans telecom sector is likely to grow and improve

There is a lot of potential of cellular phone expansion in Pakistan & the company
want to make good operation as they already have experience in this region.

Telenors Product To Be Launched In Pakistan


The table shown below provides us the information about the product, which will be
launched in Pakistan by the telenor and its date of launching. This shows that the
company had done its proper planning and they will invest properly in different areas of
Pakistan.
Operator Name:
Network Name:

Telenor Pakistan (Pvt) Ltd.


Telenor Pakistan (Pvt) Ltd.

Technology:
Handset Code:
Network Code:
Network Status:
Web Site:

Chapter # 4

GSM 900/1800
TELENOR
410 06
Planned March 2005
www.telenor.com/pakistan

TELENORS SATELLITE FLEET


Telenor's Paksat 1 Capacity
This is available through a framework contract with the National Telecommunication
Corporation of Pakistan for bulk purchase of capacity, enabling Telenor to offer marketbeating rates.
Paksat 1 provides low-cost high-quality satellite communications in both C-band and
Ku-band to Africa, the Middle East, and eastwards to Pakistan. The Paksat C-band
coverage and Paksat Ku-band coverage provide complimentary service areas.
Paksat 1's 30 C-band transponders and 4 Ku-band transponders provide the total range of
satellite communications capabilities. The satellite is in a fully stabilized geostationary
orbit at 38 degrees East longitude and carries high power payloads in both bands.
Paksat 1 transponders are priced well below normal market rates. The satellite is ideal
for use by businesses looking for low cost-of-entry to the satellite service market or to
leverage the advantages of satellite communications. ISPs can use the satellite as a
highly cost effective means to access the European or American Internet and to extend
their reach into remote areas where broadband terrestrial capacity is not available. The
satellite is also well suited for vide contribution and distribution.

Hughes Global Services (HGS) leased the satellite to the Government of Pakistan in July
2002. The satellite is in position at the Pakistani-licensed orbital location, 38 degrees
East longitude. Paksat 1 is operational and ready to offer services.
Paksat 1 has a scheduled service outage, which occurs during eclipse season - 44 days
twice a year - when the satellite loses sight of the sun. The outage is always centered on
satellite local midnight and ranges between a few minutes up to 2.5 hours at it's
maximum. During most of the eclipse season the satellite can be used for more than 22
hours per day giving annual availability greater than 97%. Business day uses are
unaffected by the outage, and since the outage is always around satellite local midnight
most users are unaffected. The chart below illustrates the high availability for the
service. Outside of eclipse season the satellite is available 24 x 7.

(The chart illustrates the high availability for the service)


While the scheduled outage reflects only a small degree of service unavailability, pricing
for Paksat 1 bandwidth is much lower than standard market rates and will be highly
competitive for all applications.

In short - Paksat 1 is a great opportunity but it wont be suitable for everyone because of
the scheduled outages. However, the capacity is priced to sell.

And to complete the picture...


Telenor can also provide:

Terrestrial connectivity

TV play out

MPEG encoding

Conditional access

A full range of IP services

Use of their existing uplinks in London, Oslo, Stockholm, Helsinki,


Copenhagen, Bratislava & Sofia.

(The pictures show Paksat 1 C-Band


coverage and
Ku-Band coverage of Telenor in
Pakistan)

Chapter # 5

SWOT ANALYSIS

Every company whether national or international performs SWOT analysis of its


resources before starting its operations in the market or entering into new market
Similarly Telenor has also done its SWOT analysis some of its major points are
explained below:

Strengths
1. Co-Operation And Obligations

Telenor works continuously to strengthen the Group's social responsibility


performance.

To facilitate this, Telenor will listen to, and widen its dialogue with customers,
investors, authorities, Non-Governmental Organizations (NGOs), experts and
other relevant stakeholders.

To underline the Group's commitment, Telenor supports the UN's Global


Compact

and

the

European

Telecommunications

Network

Operators'

Association's (ETNO) Environmental Charter.

2. Products And Services

Telenor is a driving force in creating, simplifying and bringing communications


solutions and content solutions to the market.

Its products and services are beneficial and enjoyable for users in all age groups,
serving customers with different needs and preferences and with different
functional abilities.

In information technology, the development is moving at a rapid pace, and it is


difficult to predict exactly how solutions will be received in the markets, and
equally difficult to predict what user patterns will look like. Who would have

thought that SMS should become such an integral part of the way young people
communicate?

Telenor is committed to assume responsibilities in respect of this development


and will closely consider the environmental, social and health-related impacts of
the Group's products and services.

They acknowledge their responsibilities to user groups that have special needs,
and recognize that parents and schools have special concerns regarding safe use
of information technology for young people.

Telenor also focuses on developing products and services of high utility value for
our society. Additional to the business areas' own product development

Telenor's Research and Development unit, Telenor R&D, also plays an important
role, not least through its projects focusing on the social aspects of information
and communications technology. Special emphasis is placed on users with
reduced functional abilities.

3. Comprehensive & Integrated Responsibilities

Telenor relies on building trusting relationships with customers, owners,


employees and society in general.

They are making a consistent effort to attend to the Group's corporate social
responsibility in a comprehensive and innovative way.

Telenor's ambition is to be a leading company in this field, and in the way will
integrate a socially responsible approach into its operations and business
development.

They seek an active dialogue with its stakeholders regarding Telenor's activities
and commitments related to its social responsibility.

Weaknesses
As the company has not yet started work in Pakistan so we cannot explain its weakness
and as the data gathered from its employees and management as well as from the web
does not shows any point, which appears to be its weakness.

Opportunities
1. Nokia Helps Telenor To Set Up GSM Network In Pakistan
Nokia, the worlds largest mobile phone maker, has signed a deal with Norways Telenor
to set up and run a GSM network in Pakistan, to commence operations in the second
quarter of 2005. No value for the contract was disclosed, but analysts said it was likely
to be worth over 100 million euros ($124 million).
The network will first cover central and northern Punjab. In addition to radio base
stations and infrastructure, the Finnish giant will deliver a complete turnkey network and
operate it on behalf of Telenor for three years. Telenor has agreed to set up a mobile
phone service covering 70% of its largest towns within four years.
Nokia will supply its complete GSM base station subsystem that can be smoothly
upgraded to 3G WCDMA. In addition Nokia will provide turnkey implementation of the
network, including site acquisition, civil works, network planning, implementation and
project management for fast quality ramp-up of the solution.

Nokia will also operate the BSS part of its network. Nokia will establish the network
operations to ensure the timely launch of the quality network.

2. Siemens To Build Mobile Network For Telenor In Pakistan


Telenor Pakistan has commissioned Siemens to build its GSM
network in the southern part of the country. Siemens Information
and

Communication

Mobile

will

provide

delivery

and

installation of all the infrastructure components for setting up the


network. Siemens is a German manufacturer of telecom equipment and is the largest
telecom solution provider in Pakistan. The order for Siemens mobile comprises turnkey
delivery and installation of switching technology, mobile transmission and receiving
stations (base stations), Intelligent Networks (IN) and GPRS hardware and software
components

3. Opportunities In Pakistan

It is having the Government support and help when needed

The company will introduce jobs in Pakistan

Network development is easy and PTCL support

Market is greater and the market is on growth stage and at some stages such as
on Eid and other ceremonial days U-fone and Mobilink are not satisfying the
customers requirements.

Threats

As we know that there are already four mobile companies working in Pakistan so this is
a biggest threat for the new company. The information that media and news papers show
us is that when Telenor got the license to invest in Pakistan, the already present
companies had lowered down their rates in the market.
U-fone and Mobilink had almost made the connection charges up to zero and the cost of
the prepaid and postpaid cards is also lower down to a large extend. People belonging to
the lower-middle class as well as lower class people have also taken connections. In a
home every member has a connection and about 75% of the people have mobiles. In
Pakistan this is the biggest threat for the company

Chapter # 6

PROBLEMS AND SOLUTIONS


In previous chapters the information about the company and their plans to invest in
Pakistan was given along with the SWOT analysis with respect to the Pakistans Mobile
Industry and the customers demand. In this chapter we will state down the problems that
the company may face in future when they launch their products in the market along
with some suggestions to tackle with these problems. Here the word suggestions has
used instead of solutions because we can just suggest solutions to the company and if
they like our suggestions and act upon it then it will act as solutions for them. The below
are the problems and their suggested solutions

Problems

The biggest problem is of the four main competitors that are already working in
the mobile industry of Pakistan i.e. Mobilink, Paktel, U-fone and Instaphone.
They all have captured the market and are introducing new features in the
services day by day

As it is an international company so how will they build their reputation in the


hearts of their customers because the customers consider mostly foreign
companies as costly?

The already prevailing mobiles have introduced so much new functions and
lowered down their cost to a large extend so what strategies Telenor will have to
use to become a market leader among these companies

How they will develop in the market?

The PTCL has given license to two more international companies to make further
investments in the mobile sector, this will also become a hurdle for Telenor

They have decide to launch connections in Sindh and other lower areas but how
will they attract the customer over their because in those areas the customers are
mostly illiterate and it will be difficult for them to understand this media
language.

Suggestions / Solutions
These were some problems that Telenor can face in future. Although these were very few
but it will take time to be solved. Now we will give the suggestions to solve these
problems and these suggestions are based on the proper analysis to this company as well
as the other companies and the demands and requirements of the customers.

The company should introduce itself with some new package such as free
connections along with mobile for period such as a month

It should adopt strong marketing strategies to advertise it in market

In peak days such as Eid and other ceremonies the mobile services become very
poor and the customer face problems while calling to their relatives and friends.
Telenor should build a strong network, which will provide best quality service
even in these days.

Even though the already serving mobile are providing value added service to
their customers but they should introduce more and latest services for the
customers

Promotional strategies must be introduced and used

As it is an international company so they should lower down or finish the


international roaming charges

The lower rates on calling from one connection to other means if we call from
Telenor to U-fone etc. the lower rate should be offered

They are also giving jobs to the people so they should offer good job package
means which have high chances of progress, training and high salary with
benefits in it

In many areas such as highways and hilly areas like Murree, Swat, Kaghan etc
mobile dont respond and the service become limited so they should capture
those area market instead to entering into the city where already service is
present.

The customer service should be good and all the customers are treated on the
equality bases

In undeveloped areas they should make their helping centers where they should
teach the customers how to operate the mobiles

They should start work in undeveloped areas because it will result in the
increasing of employment in those areas and the people will be motivated
towards study

They should also participate in the donation schemes of Pakistan which work for
the welfare of humanity such as donating to Sukhat Khanam Memorial Trust,
Free medical camps & other schemes which help for the welfare of the society

They should introduce new education relating to satellite study and mobiles etc
which is insufficient and costly in Pakistan

It should work on customer friendly basis and not on money making basis

The group's research and development efforts must create new ways of
simplifying the everyday life of its customers, which benefits society.

Telenor should seek to innovate responsibly, through careful consideration of the


ethical, environmental and health-related effects of its products and services.

It should provide its employees with a safe and positive working environment,
encouraging environmental awareness and promote sound business ethics
throughout the organization.

It is vital that its management and workforce handle ethical dilemmas correctly

Conclusion
The above were some suggestions given which can be helpful for the company to enter
in the new market and progress. In the continued development of its activities, Telenor
should continue to build on the solid, existing platform. The strong Norwegian position
should form the basis for new growth. In immature markets and with respect to new
product ranges, Telenor should look for options to position itself for the future. Growth
will come through a strengthening of its international commitments in growth markets.

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