Internship Report for Mobilink

Submitted By: Usman

Ali BBA-6(B)
01-111052-094

1
 Table of Contents

1 EXECUTIVE
SUMMARY........................................................................................
........................3
2

INTRODUCTION.................................................................................
.........................................5
2.1 CENTRAL BACKGROUND
INFORMATION..................................................................................................
.........................5
2.2 COMPANY
BACKGROUND.................................................................................................
.......................................6
3 COMPANY
ANALYSIS.........................................................................................
..........................8
3.1 OPERATION
ANALYSIS.........................................................................................................
..................................8
3.1.1

Network.........................................................................................................
..........................................8
3.1.2 Operational
Departments.................................................................................................
........................9
3.1.3 Subscribers and Market
Share.............................................................................................................
...10
3.2 FINANCIAL
ANALYSIS........................................................................................................
..................................11
3.2.1 Operational
Results..........................................................................................................
.......................11
3.2.2 Balance Sheet
Results..........................................................................................................
..................12
3.2.3 Ratio
Analysis.........................................................................................................
...............................12
3.3 HUMAN RESOURCE
 ASSESSMENT..................................................................................................
..........................14
3.4 MARKETING
ANALYSIS........................................................................................................
.................................15
3.4.1 Electronic
Media............................................................................................................
........................15
3.4.2 Print
Media............................................................................................................
..................................16
3.4.3 Advertising Agency and Brand
Ambassadors........................................................................................16
4 ENVIRONMENTAL
ANALYSIS................................................................................ ........
..............18
4.1 INDUSTRY AND MARKET
ANALYSIS........................................................................................................
...................18
4.1.1 Major Product Lines Market
Segment....................................................................................................18
4.1.2 Growth Rate of Entire
Industry.........................................................................................................
......20
4.2 COMPETITOR
ANALYSIS........................................................................................................
................................21
4.2.1 Major
Competitors...................................................................................................
................................21
4.2.2 Their Market
Shares...........................................................................................................
.....................23
4.2.3 Their Goals and
Strategies......................................................................................................
................24
4.3 TECHNOLOGY
ANALYSIS........................................................................................................
...............................26
4.3.1 Technical Methods That Affect the
Industry...........................................................................................2. 6
4.3.2

Innovation.....................................................................................................
..........................................27
5 DEPARTMENT WORKED DURING
INTERNSHIP..............................................................................28
 5.1 ACTIVITIES DONE WITHIN CASH MANAGEMENT
DEPARTMENT............................................................................................28
5.1.1 Daily
Activities.......................................................................................................
.................................28
5.1.2 Occasional
Activities.......................................................................................................
........................29
5.1.3 Month End
Activities.......................................................................................................
........................30
5.2 TASKS PERFORMED DURING
INTERNSHIP....................................................................................................
................31
5.2.1 Daily
Activities.......................................................................................................
.................................31
5.2.2 Occasional
Activities.......................................................................................................
........................32
5.2.3 Month End
Activities.......................................................................................................
........................33
6 IDENTIFICATION OF A MAIN PROBLEM AND
FINDINGS.................................................................34
6.1 JOB ROTATION AND
ADVANCEMENT...............................................................................................
...........................34
7

CONCLUSION....................................................................................
.........................................34
8

RECOMMENDATION...........................................................................
.......................................35
9

APPENDIX........................................................................................
........................................36
9.1 WEB
RESOURCES....................................................................................................
.........................................36
9.2

REPORTS.........................................................................................................
..............................................36
9.3 ORGANIZATIONAL STRUCTURE
(EXTRACT).......................................................................................................
............37

2
 Table of Illustrations

Figures

FIGURE 1: COMPARATIVE FIGURES OF COVERAGE & CELL

SITES......................................................... .............9
FIGURE 2: PRINT ADVERTISEMENTS OF
MOBILINK..................................................... ................................16
FIGURE 3: PRODUCTS OFFERED BY DIFFERENT MOBILE
COMPANIES.............................................................. ..19
FIGURE 4: GROWTH RATES IN MOBILE INDUSTRY 2005- JULY
2008.................................. ...........................20
FIGURE 5: SEGMENTATION OF TOTAL SUBSCRIBERS IN JULY
08................................................................. .....23
FIGURE 6: SEGMENTATION OF TOTAL SUBSCRIBERS IN DECEMBER
07................................................... ...........23

Tables

TABLE 1: AN OVERVIEW OF MOBILINK’S

NETWORK...................................................... ..............................8
TABLE 2: NUMBER OF MOBILINK SUBSCRIBERS FROM 2005- JULY
2008.......................................... ...............10
TABLE 3: MARKET SHARES OF MOBILINK FROM 2005-
2007................................................. ....................10
TABLE 4: PROFIT COMPARISON BETWEEN 2007 &
2006.............................................. ...........................11
TABLE 5: BALANCE SHEET COMPARISON BETWEEN 2007 &
2006.............................. ................................12
TABLE 6: CURRENT RATIO COMPARISON BETWEEN 2006 &
2007....................................................... ........12
TABLE 7: FIXED ASSETS TURNOVER COMPARISON BETWEEN 2006 &
2007........................................ ............13
TABLE 8: DEBT RATIO COMPARISON BETWEEN 2006 &
2007.................................................. .................13
TABLE 9: RETURN ON COMMON EQUITY COMPARISON BETWEEN 2006 &
2007......................... ......................13
TABLE 10: DESIGNATIONS OF MOBILINK’S
EMPLOYEES........................................................ .......................14
TABLE 11: LIST OF BRAND AMBASSADORS OF
MOBILINK........................................................ ....................17
3
1 Executive Summary
The mobile industry of Pakistan has seen phenomenal growth in recent
years. The total mobile subscribers in 2007 were more than 63 million, a
growth of more than
80% from the previous year. The telecom sector of Pakistan was
deregulated in
2003, and mobile industry being a part has seen phenomenal growth ever
since. Many analysts believe that Pakistan is one of the fastest growing
telecom markets in the world.

Currently there are six diverse companies making the mobile industry of
Pakistan, Mobilink being one of them. Other companies include Ufone,
Telenor, Warid, Zong and Instaphone. Mobilink enjoys being the market
leader with a 36% market share as of July, 2008.

Pakistan Mobile Communications Limited (PMCL) launched its operations in

August
1994, under the brand name of Mobilink. Initially it was a joint venture
between Motorola and the Saif Group. Later on in April 2000, Orascom
Telecom bought 38.6% stake in PMCL, later increasing it to 68.69%. In April
2001, Orascom Telecom took over management control of the company and
as of December 31st, 2007, Orascom Telecom owns 100% of the share
capital of Mobilink. Mobilink offers both postpaid (Indigo) and prepaid (JAZZ)
solutions to their customers.

Mobilink was awarded a 15-year license in July 1992 to establish and

operate a digital cellular telecommunication system using the GSM 900
standard. Mobilink has been growing its network ever since, providing
2G, 2.5G, GPRS and EDGE compatibility. Mobilink is committed in
providing the best network to their customers, which in recent times
has expanded to more than 9000 cities and reaches over 66% of the
total population and 99% of the urban population as of December 31st,
2007.

Pakistan Mobile Communications Limited (PMCL) or Mobilink is currently

headed by President and CEO Zouhair A. Khaliq. Mobilink’s headquarter is
located in Islamabad and has eight different departments. All major
decisions regarding Mobilink are taken centrally in Islamabad. To assist with
the operations, operational departments are further located in all four regions,
including north, south and AJK.

Mobilink’s finances are as strong as its operations and customer base. For
the year ended December, 2007, the total profit after taxation was
more than Rs 4bn. Furthermore Mobilink’s fixed assets have shown a rise
in 2007, so have the long term liabilities and shareholder equity.

Mobilink being the market leader is also able to attract the most
talented professionals. Its current employee force consists of more than
4500 unique individual. Mobilink hiring takes place through its website and
is know for offering

4
competitive packages to its employees. Furthermore, it training and
appraisal programs are an essential part of the HR department.

Attracting customers is a tough job and that is why the marketing

department of Mobilink develops a number of marketing campaigns
to attract customers. Furthermore it also takes the help of a leading
advertising agency of Pakistan and uses brand ambassadors from various
walks of life to promote its products and services.

The mobile industry provides three major product lines, which include the
consumer packages, value added services and corporate packages. The
consumer packages include the postpaid and prepaid packages; the
value added services provide entertainment, information and a lot more to
their subscriber, while the corporate packages have been introduced to
cater to the needs of large businesses and corporate clients.

The mobile industry of Pakistan has witnessed phenomenal growth periods

over the years. As of July 2008, the growth rate of the entire industry was
more than 40%. There are four major competitors of Mobilink. Ufone is the
closest with a market share of 21% in July 2008, followed by Telenor with
20%, Warid by 18% and Zong by
5%
.
I did my eight weeks internship at the cash management department
within Mobilink Treasury. Some of the work that I did during my internship
includes making the cash position, making transfer letters, making
encashment and international payments and working to open new accounts
of Mobilink.

The main problem that I identified during my internship period was the lack
of job rotation within the department and not keeping up with the
policies of job advancements. Some of the suggestions in this respect were
the introduction of compulsory job rotation within department, introducing
job specific training to employees and adhering to the criteria laid out
by the HR department for job advancements in complete faith.

Lastly I would say that Mobilink became the market leader by

introducing new products and services that took full advantage of new
technologies over the years and I hope that it will tend to do so in
the coming future and provide stiff competition to any challenger that
poses a threat to its leadership in the market.
5
2 Introduction

2.1 Central Background Information

The telecom sector of Pakistan has seen phenomenal growth over the
past few years. According to the Pakistan Telecommunication Authority
(PTA), the total mobile phone subscribers in 2007 were more than 63
million, a growth of more than
80% from the previous years. During 2006-07, the mobile sector generated
Rs 133 billion in revenues, an increase of 48% from the previous years and
contributed Rs
63 billion to the national exchequer in terms of taxes and regulatory
fees. The telecom sector contributed 2% to the GDP in 2005-06 and
received more than $1.8 billion in foreign direct investment (FDI) in 2006-07
, which is 35.6% of the total FDI in that period. Furthermore, the telecom
sector has also created over one million in jobs, since its deregulation,
making Pakistan one of the world’s fastest growing telecom markets.

The Pakistan Telecommunication Ordinance 1994 established the primary

regulatory framework for the telecommunication industry including the
establishment of an authority. Thereafter, Telecommunication (Re-
Organization) Act no XVII was promulgated in 1996 that
aimed to reorganize the telecom sector of Pakistan. Under Telecom
Reorganization Act 1996, Pakistan Telecommunication Authority (PTA) was
established in January 1997 to regulate the establishment, operation and
maintenance of telecommunication systems, and the provision of telecom
services. The telecom sector was deregulated in 20031.

Currently there are six mobile operators operating in Pakistan, which

include Mobilink, Ufone, Telenor, Warid, Zong and Instaphone.
Mobilink started its operations in 1994 as the first
GSM cellular mobile service in Pakistan, started by Motorola Inc. Later it was
sold to Orascom, an Egypt-based multi-national company. Mobilink is the
largest cellular service provider in Pakistan. Another company, Pakistan
Telecommunication Mobile Limited (PTML) is a wholly owned subsidiary of
PTCL, established to operate cellular telephony. The company
commenced its operations, under the brand name of Ufone from
Islamabad on January 29 2001. Later, as a consequence of PTCL’s
privatization, 26% of its shares were acquired by Emirates
Telecommunication Corporation (Etisalat).
Being part of PTCL, the management of
Ufone had also been handed over to Etisalat.

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its

operations in Asia. Telenor Pakistan launched its operations in March 2005
as the single largest direct European investment in Pakistan, setting
precedence for further foreign investments in the telecom sector.
In 2004, Warid Telecom International
LLC,

1Daily Times July 27,

2007

6
purchased a license for operating a nationwide mobile telephony network,
(WLL) and long distance international (LDI) for $291 million US dollars and
was the first venture of Warid Telecom International LLC. Warid Pakistan
launched its services in May 2005. On June 30th, 2007, Singapore
Telecommunications Limited (SingTel) and Warid Telecom announced that
they had entered into a definitive agreement subsequent to which
SingTel will acquire a 30% equity stake in Warid Telecom for an estimated
$758 million.

China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The

pioneering overseas set up of China Mobile came through acquisition of a
license from Millicom to operate a GSM network in Pakistan. Millicom had
initially bought Paktel in 2003 from Cable & Wireless. Paktel was the first
ever company granted license to carry out cellular phone services in
Pakistan. Currently CMPak is operating in Pakistan under the brand name
of Zong. Instaphone is another telecommunication company in Pakistan.
Instaphone was one of the pioneers of cellular industry in Pakistan.
Initially the company was owned by Millicom International; later on Arfeen
Group acquired it. Currently, the license of Instaphone has been
terminateddue to non payment of license fee to PTA. The company under a
renewed license is planning to role out a countrywide CDMA mobile network
and would be the only CDMA mobile operator in Pakistan to launch first 3G
services in Pakistan.

2.2 Company Background

Pakistan Mobile Communications Limited (PMCL) operates the leading GSM
network in Pakistan and provides a range of prepaid and postpaid
voice and data telecommunication services to both individual and
corporate subscribers, under the brand name “Mobilink.” Mobilink launched
its operations in August 1994 after it was founded in 1990 as a joint
venture between Motorola and the Saif Group and awarded a license for
mobile telecommunication system and services in July 1992. Later on in April
2000, Orascom Telecom bought 38.6% stake in PMCL, which it later in
February 2001 increased to 68.69% by purchasing Motorola’s share in PMCL
and becoming the major shareholder of the company. In April 2001,
Orascom Telecom took over management control of the company. As of
December 31st, 2007, Orascom Telecom indirectly owns 100% of the
share capital of Mobilink through direct stakes held by wholly owned
subsidiaries of OTH. By December 2007, Mobilink had achieved 39.8% in
market share, making it the market leader in the mobile sector of
Pakistan2 and had a customer base of more than 32 million by July
2008
3.

Mobilink offers exclusively designed tariff plans that cater to the

communication needs of a diverse group of people, from individuals to
businessmen to corporates

2Orascom Telecom Annual

Report 2007

3PTA
Website

7
 and multinationals. To achieve this objective, Mobilink offer both postpaid
(Indigo)
and prepaid (JAZZ) solutions to their
customers.
Mobilink was also the first cellular service provider to operate on a 100%
digital GSM technology in Pakistan and also provides state-of-the-art
communication solutions to its customers. Mobilink’s network is the most
extensive in Pakistan, connecting more than 9000 cities across Pakistan, as
well as over 120 countries on international roaming service. Furthermore it
reaches over 66% of the total population and 99% of the urban
population as of December 31st, 2007. Mobilink is also developing its own
optic fiber backbone, to provide its customers with highest level of voice
and data quality with more reliability4 and has invested more than
$2.5 billion in its
networks.

Mobilink Vision

"To be the leading Telecommunication Services Provider in Pakistan by offering

innovative Communication solutions for our Customers while exceeding
Shareholder value & Employee Expectations".

Mobilink's Values
Total Customer Satisfaction
Customers are at the heart of our success. They have placed their trust
and confidence in us. In return, we strive to anticipate their needs and
deliver service, quality and value beyond their expectations.
Business Excellence
We strive for excellence in all that we do. We aspire to the highest
standards and raise the bar for ourselves everyday. This commitment to
delivering world-class quality translates into unmatched service and value
for our customers and all stakeholders.
Trust & Integrity
At Mobilink, we take pride in practicing the highest ethical standards in an
open and honest environment, and by honoring our commitments. We take
personal responsibility for our actions, and treat everyone fairly, and with
trust and respect.
Respect for People
Our relationships drive our business. We respect and esteem our employees
and all stakeholders. We believe in teamwork, empowerment and honor.
Corporate Social Responsibility
As the market leader, we recognize and fulfill our responsibility towards our
country and the environment we operate in. We contribute to worthy
causes and are dedicated to the development and progress of the society
4Mobilink CEO Speaks About 2008 Plans
(www.telecompk.net)

8
3 Company Analysis

3.1 Operation Analysis

3.1.1
Network
Mobilink was awarded a 15-year license in July 1992 to establish and
operate a digital cellular telecommunication system using the GSM 900
standard and to offer telecommunication services in Pakistan. Before that,
all previous operations were using the AMPS technology. Since then
Mobilink has been growing its network, providing 2G, 2.5G, GPRS and EDGE
compatibility. Mobilink was the first operator to start rolling out the
Enhanced Data Rates for Global Evolution (”EDGE”) in Pakistan. In addition,
Mobilink also launched its BlackBerry service in December 2005 through its
GPRS platform. Furthermore, Mobilink’s license was renewed on July 6th, 2007
for a further period of 15 years5.

Mobilink is committed in providing the best network to their customers,

which in recent times has expanded to more than 9000 cities and reaches
over 66% of the total population and 99% of the urban population as of
December 31st, 20076.

Table 1: An Overview of
Mobilink’s Network7

5Orascom Telecom Annual

Report 2007
6Orascom Telecom Annual
Report 2007

7Mobilink
Website

9
Not only is Mobilink’s network very modern and technologically advance,
but it is also very competitive, when compared to other mobile networks.

Figure 1: Comparative Figures of Coverage & Cell Sites8

8Orascom Telecom Investor Presentation November 2007

10
3.1.2 Operational
Departments
Mobilink is headed by President and CEO Zouhair A. Khaliq, who reports
directly to the Chairman and CEO of Orascom Telecom Naguib Sawiris.
Furthermore the operations of Mobilink are divided into eight different
departments, which are as follows:

1. Human Resource
2. Administration and Security
3. Sales
4. Marketing
5. Customer Services
6. Corporate Affairs
7. Technical
8. Finance

Furthermore, these departments are further divided into sub departments to

ease operations within Mobilink. Also all major decisions are taken
centrally, in Islamabad. These decisions for example include, the financing
required by Mobilink (local and foreign), decisions regarding import of goods
etc.

Furthermore, to assist the operations of Mobilink, which include more

than 500 franchises and 16 Customer Services Center’s, operational
departments are located in all the four main regions:

1. North
2. South
3. Central
4. AJK

3.1.3 Subscribers and Market

Share
Mobilink had a great advantage for years as being the only GSM mobile
operator in Pakistan, however with the entrance of Ufone in 2001 and later on
by Telenor, Warid and Zong, the competition in the mobile sector is
heating up. However the subscriber base Mobilink has remained steady
and growing as seen in the table below:
Table 2: Number of Mobilink Subscribers from
2005-July 20089
Year 2005 2006 2007 July-2008
Subscribers 7,469,085 17,205,555 26,466,451 32,056,336
% Change - 130.3 53.8 21.1

Although the number of subscribers has increased over the years, the same
cannot be said about the market share of Mobilink, which has gradually
 decreased over the

9PTA Website

11
year. However, although the market shares of Mobilink might have
decreased over the years, but it still remains the market leader in the
mobile sector. The market shares of Mobilink are as follows:
Table 3: Market Shares of Mobilink
from 2005-200710
Years 2005 2006 2007
Market Share 51.4% 46.3% 39.8%
Change - (5.1%) (6.5%)

3.2 Financial Analysis

No company can remain in business if it cannot sustain and grow its
profits and telecom companies are no exemption. If Mobilink wants to remain
the market leader in the mobile industry and wants to satisfy its customers, it
itself needs to remain a profitable company.

Mobilink is a private limited company and due to this reason, its

financial statements are not made public. However it does provide its
financial information to different financial institutions and companies that
have invested in Mobilink, examples include companies that have bought
TFC’s issued by Mobilink.

An extract of the Balance Sheet and Income Statement for the year 2007,
can be seen in the appendix.

3.2.1 Operational
Results

Table 4: Profit Comparison between

2007 & 2006
Description December 2007 December 2006
In Pak
Revenue 70,914,424,384 Rupees
55,871,865,120

10Orascom Telecom Annual Reports 2006-2007

12
Profit Before Interest & 15,603,089,144 12,545,001,838
Tax
Profit Before Taxation 6,976,257,786 7,372,726,009
Profit After Taxation 4,151,660,417 4,100,392,601

As major portion of Mobilink is on prepaid basis, including SIM sales,

securities and balance recharges the revenues for Mobilink have increased
from December 2006 to December 2007, this increase is because of the
large increase in the consumer base of Mobilink in 2007. The increase in
revenue has led to an increase in the profit before interest and tax, and
although the costs of services and selling and administrative charges in
2007 haveincreased from the past year, the increased revenue helped in
off setting the increase in the expenses.

Another problem in the profit and loss statement of Mobilink is the

increased financial charges or interest charges for the 2007. In the mid
of 2006, Mobilink issued a TFC more than Rs 3 billion, and the interest of
which is paid semi annually. Furthermore, most of Mobilink’s growth is
financed through long term loans, which have also increased in 2007,
increased the financial charges.

The increase in financial charges and provision of taxes in 2007, ultimately

lead to profit after taxation, which when compared to the profit of 2006, to
not increase by much. The increase is only 1.25% from the previous year.

3.2.2 Balance Sheet

Results

Table 5: Balance Sheet Comparison

between 2007 & 2006
Description December 2007 December 2006
In Pak
Fixed Assets 138,159,488,742 Rupees
104,896,145,585
Current Assets 16,313,779,738 18,193,085,605
Current Liabilities 51,742,026,278 50,934,936,367
Shareholders Equity 23,523,324,157 16,329,320,280
Long Term Liabilities 79,207,928,045 55,824,974,543

As the above table shows, there has been a significant increase in the fixed
assets of Mobilink in 2007; this has been due to the increase in the
property, plant and equipment, long term deposits and other receivables and
license fee. However, the current assets have decreased, but not by much.
This small decrease is mainly due to the decrease in stocks in trade.

13
The current liabilities have also increased in 2007, again by not by
much. This increase in current liabilities is associated with the increase in
short term financing and the current portion of long term financing.

The increase in shareholders equity is associated with the increase

in the shareholders equity and the increase in the accumulated profits,
while the increase in the long term liabilities is associated with the
large increase in long term financing and the license fee payable, which
was made due, to the renewal of Mobilink’s license.

3.2.3 Ratio
Analysis

3.2.3.1Current
Ratio

Table 6: Current Ratio Comparison

between 2006 & 2007
2007 2006
0.31:1 0.35:1

Current ratio is a liquidity ratio that measures how easily a company can pay
off its current liabilities using its current assets. For Mobilink although most of
its revenues are on a prepaid basis but still the current assets fall short to
pay off the current liabilities in both 2006 and 2007. Furthermore the
current ratio has fallen in 2007, which again shows that there aren’t
enough liquid assets to pay off the current liabilities and may affect
Mobilink’s solvency in the short term.

3.2.3.2Fixed Assets
Turnover
Fixed Asset Turnover, an asset management ratio, shows how effectively a
company uses its fixed assets. That is using its assets to generate sales.
Most of Mobilink’s assets are fixed, major of which include cell sites and
other equipment. As the figures show, the ratio has decreased in 2007, from
0.53 to 0.51.

Although the decrease is very small, the major reasons associated are
the large increase in the fixed assets and the small increase in sales. The
fixed assets rose by
29.3%, while the revenue rose by 26.3%. The major reason for the small
increase in the sales could be associated to the rather small increase in the
total subscribers in
2007, as compared to
2006.
2007 2006
0.51 0.53
Table 7: Fixed Assets Turnover Comparison between 2006 & 2007

14
3.2.3.3Debt Ratio

2007 2006
84.7% 86.7%
Table 8: Debt Ratio Comparison between
2006 & 2007
The Debt Ratio measures the percentage of funds provided by sources
other than equity. For Mobilink, most of its growth is funded through
long and short term financing, and even though Mobilink has expanded its
operations during 2007, but still the debt ratio fell in 2007, but only by 2%,
which is mainly because of the large increase in the total assets, when
compared to long term liabilities. The rise and fall of current liabilities and
currents assets respectively is not much.

3.2.3.4Return on Common
Equity

Table 9: Return on Common Equity Comparison

between 2006 & 2007
2007 2006
17.6% 25.1%

Return on common equity, a profitability ratio, measures the extent to

which the shareholders of a company are getting returns on their
investments. The ratio for Mobilink has decreased significantly in 2007, a
decrease of 7.5%. This decrease can be associated to the small income
available to the shareholder. Most of the net income has to be paid
out in financial charges, which leaves less or the shareholders, which
in 2007, expanded their investment in the company.

3.3 Human Resource Assessment

Mobilink, the largest cellular company of Pakistan, is made of a team of
over 4500 of unique individuals. They are the best minds in the industry
today, being exposed to the best practices and an enabling environment.

Employees at Mobilink are treated as a big family, where their growth

is as important as Mobilink’s. Capability building programs equip employees
with all the skills and techniques needed for them to realize their ambitions,
while diversity and wellness initiatives help employee’s further reach new
heights and achieve their goals.

Mobilink’s hiring takes place through its website which is being powered
with a partnership with Rozee.pk, one of Pakistan’s premier website. This
website provides updated information on job openings, as and when they
happen. Furthermore the website is divided into three sections, all providing
information accordingly:
Internship Candidates
Entry Level Candidates

15
 Experienced
Candidates

All employees at Mobilink are designated accordingly, which is as follows:

Table 10: Designations of Mobilink’s Employees
Grade/Employee Post Designation Description
Associate A-2 (Junior Associate) Entry Level/Fresh
Candidates
A-1(Senior Associate) Min 2 yrs. Experience
Required
Specialist S-2(Junior Specialist) Min 4 yrs. Experience
Required
S-1(Senior Min of 5-6 yrs. Experience
Specialist/Asst.
Required
Manager Manager)
M-2 Manager
M-1 Senior Manager/HOD of
Sub Departments
Director Departmental Head
Furthermore Mobilink employees receive a number of fringe benefits which
include gratuity funds, post paid mobile packages,
credit cards and discounted memberships with Citi Bank,
employee loans, blackberry handsets, transport facilities for ladies, health
club and Jinnah Stadium memberships etc.

Training of employees is taken an integral part of the HR department of

Mobilink. Training Calendars are published for employees, informing
them about training dates and their descriptions. These training sessions
take place both within and outside the city. Employees are even sent
abroad for training. These include managers and directors within
Mobilink, to polish and enhance the management and leadership skills
further.

Appraisal of employees is as important as training for any organization and

Mobilink is no exemption. Mid Year and Yearly appraisal are conducted by
line managers of each employee. Input from the employee being appraised
is also taken to enhance the benefits of the appraisal activities. This input
includes both their job objectives and responsibilities but also suggestions on
what line managers could do more for support.

3.4 Marketing Analysis

In today’s contemporary business world, marketing plays an important
role. Mobilink that has a number of competitors in the mobile industry, need
to use their marketing plan and strategies effectively to attract customer
loyalty.
16
The marketing department at Mobilink anticipates, and satisfies the
customer’s communication needs. This includes consumer behavior research
and translating this research into services and pricing plans. The
Marketing team also helps in identifying new business opportunities
and develops plans to exploit those profitably. It also designs and
implements brand strategies and communication plans.

The major ways in which Mobilink markets itself and its products are
through the following ways:

Electronic
Print

3.4.1 Electronic
Media
The major way in which today’s organizations promote its products and
services is through television, not only because it’s economical but also
because the visual and audio aids help in promoting its product.

Mobilink uses an aggressive advertising campaign on television to

promote its products. These advertisements, while communicate an
image of modernity and newness, still tend to show the heritage of
Pakistan. The heritage of Pakistan and its people signifies Mobilink, as being
the favorite cellular company of Pakistan.

Mobilink has also for years, has tried to create different personalities for its
brands: Indigo and Jazz, to distinguish them from other competing brands.
Mobilink’s Indigo brand relied heavily on two factors toward establishing
its brand equity: brand ambassadors that exuded style and sophistication,
and a unique classy look that permeate all forms of its Indigo brand
communication. It also played on the aspirations of young business
professionals through the atmosphere and the locales of Indigo’s ads.

On the other hand, the Jazz brand creates an image of fun, catering more
to the youngsters and teens of the country. Not only that, it has also
over the years created an image of bond among the members of the Jazz
members, achieved due to the lowest rates and packages that Jazz has to
offer. With Jazz advertisements, it’s all about having a show and tell tableau.

Other ways, in which Mobilink is marketing its products, is through its

website and radio. The website of Mobilink is built in a way to provide updated
information about its products, with dedicated pages for both its brands,
Indigo and Jazz. Furthermore, the website also contains a gallery feature,
from where users can view a wide array of print and television advertisement,
created by Mobilink over the years. The use of Radio has also been used to
promote the packages of Mobilink. Advertisement on radio, mostly inform
listeners on the new packages and their details.
17
3.4.2 Print
Media
Print advertisements are another major way in which Mobilink advertises its
product to the masses. Print media advertisements are printed in major
English and Urdu newspapers across Pakistan. The messages of these
advertisements are mainly of new packages that Mobilink may introduce
over time.
Figure 2: Print Advertisements
of Mobilink11

3.4.3 Advertising Agency and Brand

Ambassadors
Mobilink uses the services of International Advertising (Pvt) Limited (IAL)
SAATCHI & SAATCHI. IAL was established in 1966. IAL clients include PIA,
P&G, Devan Mushtaq Motor Company (DMMC), PSO, Engro Foods Limited,
National Foods and Sony Ericsson etc. Furthermore, it became the first
agency to affiliate itself with an international agency- SAATCHI &
SAATCHI, a top player in the global advertising arena12.

Furthermore, Mobilink uses its brand ambassadors to promote its products

in both the electronic and print media. These brand ambassadors come
from the fields of acting, modeling, singing and cricket and are few of the
most famous and talented stars of Pakistan. The brand ambassadors are as
follows:
Table 11: List of Brand
Ambassadors of Mobilink
Name Profession Brand Being Promoted
Iman Ali Model Jazz
11www.brandsynario.com

12IAL SAATCHI & SAATCHI website (www.ialideas.com)

18
Wasim Akram Cricketer Jazz
Vaneeza Ahmed Model Indigo
Zainab Qayum Model Indigo
Shan Actor/Model Indigo
Strings Singers Mobilink World

Furthermore, stars like Shahid Afridi, Shoaib Malik, Shakeel, Behroze

Sabzwaari, Sunita Marshall and Samina Pirzada have also appeared in Mobilink
advertisements, from time to time.

19
4 Environmental Analysis

4.1 Industry and Market Analysis

4.1.1 Major Product Lines Market

Segment
Mobile Industry has been very effective in introducing new and innovative
products and services over the years. The major product lines can be
segmented into, three categories, which are as follows:

1. Consumer Packages
2. Value Added Services
3. Corporate Packages and Services

These product lines have a range of different services, catering to different

market segment.

4.1.1.1Consumer
Packages
The consumer packages of the mobile Industry include the prepaid and
postpaid packages being provided by the different cellular providers of
Pakistan.

Prepaid packages, due to their nature is the most common type of

package being used today by millions of Pakistani’s. Prepaid packages
provide a sense of affordability, whereby consumers have the option of only
recharging their accounts, when needed. This affordability has led to a
massive increase in the prepaid subscriber base, with everyone from
housewives to teenagers; to electricians to small shop owners all using
prepaid packages. The main user segments of prepaid packages include
the lower, middle and middle upper class of the country. Furthermore,
a number of people use prepaid packages as a second number, which also
include people from the upper class..

Mobile companies today have used immense popularity of prepaid

packages to introduce packages that are targeted to different segment.
These include Telenor’s Djuice, targeted towards teenagers and young
individuals and Mobilink’s Ladies First, targeted towards house wives.
Furthermore, packages that bill at 1min, 30 second and per second have
also been introduced by mobile companies.

Postpaid packages were introduced, keeping in mind, the

businessmen and executives. Postpaid packages, due to their nature
provided the benefits of connectivity 24/7, without the fuss of scratch
cards and recharge of accounts. Furthermore, as competition rose in the
mobile industry and new entrants came; postpaid packages were made
more affordable. The work of Warid in this concern is an example, creating
postpaid packages as affordable as prepaid ones. The main market
segments, towards which the postpaid packages are targeted, include small

20
and medium businessmen, industrialists, bureaucrats and people of the upper
class. However with the affordability of postpaid packages, people from the
middle class have also been seen using post paid packages.

4.1.1.2Value Added
Services
Value Added Services have become an essential tool for generating
revenues for mobile companies today. Starting in the early years, from
wallpaper and ringtones download, today mobile companies provide a range
of services to their customers.
Some of the popular services include, religion services, music services,
which includes song dedication, voice and timed messages, sports and
cricket services, food and recipe services, WAP/GPRS/EDGE, themes,
wallpapers, games and ringtones downloads, credit share, MMS,
voice mail, email, missed call alert, conference call, mobile TV, web2sms
and many more.

Value added services have been designed by companies, so that there are
services for every segment of their users and that these services completely
satisfy them, as and when needed.

4.1.1.3Corporate Packages and

Services
Cellular providers in Pakistan are also providing corporate clients with
services catered to them. Corporate clients due to their huge
operations have special requirements. Mobile packages and
tariffs; secure email and instant web
connectivity, being some of the most important issues.

Today mobile companies provide BlackBerry solutions, Mobilink and Warid

being forefront in this technology, furthermore to add to this
innovative service, companies today are providing SMS marketing feature,
SMS management facility, fax mail, Wireless connectivity through EDGE,
private numbering plans, closed user groups and mobile email to their
corporate clients.

All above features and many more have helped corporate clients to
manage their operations effectively and efficiently.

Figure 3: Products Offered By Different

Mobile Companies
21
22
4.1.2 Growth Rate of Entire
Industry
The mobile industry has seen phenomenal growth over the years. Today
there are five major competitors competing for their subscriber base,
increasing the services provided, reducing their call rate and having
aggressive marketing campaigns. Simply put, competition is heating up in
the mobile industry.

In July 2008, according to Pakistan Telecommunication Authority (PTA),

the total subscriber base in the mobile industry reached to more
than 89 million to
89,325,296. This was an increase of 41.4% from December 2007. Although
this is phenomenal growth, analysts believe that it mould be even higher, if
taxes would have not increased, in the financial budget.

The mobile industry has seen phenomenal growth over the years, as
seen below:

4.2 Competitor Analysis

4.2.1 Major
Competitors
4.2.1.1Ufon
e

Pakistan Telecommunication Mobile Limited (PTML) is a wholly owned

subsidiary of PTCL, established to operate cellular telephony. The
company commenced its operations, under the brand name of Ufone,
from Islamabad on January 29, 2001. Since its inception, Ufone changed the
image of mobile phones from a luxury only affordable by the elite, to a
necessity affordable by the common man. Ufone’s primary focus always
remained on their valuable customers, introducing services over time to
fulfill their need and demands. Ufone’s slogan has always remained “It’s all
about U”.

As a consequence of PTCL’s privatization in 2006, 26% of its shares were

acquired by Emirates Telecommunication Corporation (Etisalat). Being
part of PTCL, the management of Ufone has also been handed over to
Etisalat. Now, under the management of Etisalat, Ufone tends to
concentrate on customer needs and benefits and its management is even
more determined than ever to be the leading cellular player in the market,
because Ufone has been known for providing superb propositions and
quality service to its customers and tends to keep that reputation in the
future.

Ufone has maintained itself as the 2nd largest cellular operator in Pakistan
with a subscriber base of over 18 million in July 2008, according to PTA and a
market share of 21% during the time period. Currently, Ufone has network
coverage in more than
750 cities, towns and across all major highways of the country. It also
provides international roaming to more than 195 live operators across 119
countries.

Currently Ufone is under the agreement with Huawei, which will provide its
future- oriented EnerG GSM solution to expand Ufone's network to cover
over 2200 cities, towns, villages and all major highways in the country. The
network also allows Ufone subscribers to enjoy high-speed wireless data
service and enables the telecom service provider to evolve into 3G
smoothly.

4.2.1.2Telen
or
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations
in Asia together with Thailand, Malaysia and Bangladesh. Telenor acquired
the license for providing GSM services in Pakistan in April 2004, and had
launched its services commercially in Islamabad, Rawalpindi and Karachi
on March 15, 2005 and on March 23, 2005 Telenor started its services in
Lahore, Faisalabad and Hyderabad.

24
Telenor’s investment in Pakistan is the single largest direct European
investment in
Pakistan
.
By the end of July 2008, the total subscribers of Telenor exceeded 18 million,
with a market share of 20%. Telenor’s network covers more than 3000
cities, towns and highways throughout Pakistan. Furthermore, Telenor
Pakistan has more than 5,000 cell masts throughout Pakistan, making it the
2nd largest network in Pakistan and 3rd in terms of customer base.

Telenor has a strategic alliance with Nokia Siemens Networks for

expansion in Pakistan. With USD 1 billion already invested, Telenor has
extended agreements with its vendors, including Nokia Semens for network
expansion and services until
2009. The agreements will result in USD750 million worth of orders from
Telenor
Pakistan
.
4.2.1.3Wari
d
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel
Group. In
2004, Warid Telecom International LLC, purchased a license for
operating a nationwide mobile telephony network, (WLL) and long distance
international (LDI) for $291 million US dollars and was the first venture of
Warid Telecom International LLC. Warid Pakistan launched its services in
May 2005 and is based in Lahore.

Abu Dhabi Group is one of the largest business groups in the Middle East
and the single largest foreign investor in Pakistan. Abu Dhabi Group entered
into a strategic alliance with Singapore Telecom. Subsequent to this
transaction in July 2007, telecom giant SingTel acquired 30% percent equity
stake in Warid Telecom, Pakistan, for US$758 million- valuing the company at
an enterprise value of $2.9 billion. This partnership is part of a strategy to
support Warid Telecom’s continued growth and to enhance its market
position.

In July 2008, Warid’s total subscribers were more than 15 million

subscribers and enjoyed 4th position in the market with a market share of
18%. In June 2008, Warid Telecom announced it would invest $1.5 billion by
end of this year and $2.5 billion by end of 2009 to expand and modernize its
network in Pakistan.

4.2.1.4Zon
g
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The
pioneering overseas set up of China Mobile came through acquisition of a
license from Millicom to operate a GSM network in Pakistan. With
ambitious plans to cater to the fastest growing Pakistani market and to win
over the ever demanding Pakistani customer, CMPak's edge comes from
the experience and expertise of running the world's largest telecom
service and the commitment they make to setting quality and customer
relations standards. ZONG is the first International brand of China Mobile
being launched in Pakistan.

On 22nd January 2007, Millicom International Cellular S.A. announced that

it would sell its 88.86 percent stake in Paktel Ltd. to China Mobile for
$284. On 4th May

25
2007, Paktel was renamed to CMPak and then, on 16th May 2007, China
Mobile announced that it had upped its stake in CMPak to 100%. It later
rebranded branded Paktel to Zong.

In July 2008, the total subscribers of Zong were more than 4 million and
enjoyed 5th position in the market with 5% share in the market. So far
CMPak has invested more than US$ 700 million in the telecom sector in
Pakistan and an additional US$ 800 million will be invested till the end of year
2008.

26
4.2.2 Their Market
Shares
According to official figures in July 2008, there were a total of 89m
subscribers (89,325,296) in the mobile industry, Ufone had 18 million
(18,368,074) subscribers and was second in market share to Mobilink,
followed closely by Telenor with
18,329,428 subscribers, a difference of just 38,646 subscribers. This
difference was
3,312,712 subscribers at the end of 2007. Warid was forth with 15
million (15,774,299) subscribers. Warid has also lost to Telenor in terms of
market share since 2006, when it was third in the industry. In July 2008,
Zong had 4 million (4,446,024) subscribers and was fifth overall.
Instaphone had only 351,135 subscribers during this time.

Figure 5: Segmentation of Total

Subscribers in July 08
In 2007, Ufone still remained second (14,014,044) in terms of mobile
subscribers and Telenor third (10,701,332), followed closely by Warid
(10,620,386), which remained forth. Zong was fifth (1,024,563) and
Instaphone sixth (333,081). The total subscribers in 2007 were 63 million
(63,159,857).

Figure 6: Segmentation of Total Subscribers

in December 07

4.2.3 Their Goals and

Strategies

4.2.3.1Ufon
e
Ufone is one of the major competitors of Mobilink and has sustained a good
market share over the years. It has remained second overall for a
number of years. However just recently, Telenor, which had gained third
position in 2006, in the industry, is giving strong competition to Ufone and
even achieved second position in the first quarter of 2007.

The main goal of Ufone is to provide its customers with the most effective
and efficient manner of communication. The main goal of Ufone has always
been of providing its customers with the state of the art services at the
most simplest rates in the industry. Its goals have always revoloved around U
(its customers), which can be seen in its punch line or slogan “it’s all about U”.
Furthermore, by accomplishing its goal, Ufone would be able to sustain its
market share in the industry and remain in the second position and defend its
position from competitors like Telenor.

The main strategies of Ufone to accomplish their goals surround around

providing services that fulfill the needs of the society at all levels of the
society. Ufone was

27
the first mobile company to stop charging for incoming calls, first to introduce
GPRS, first to start bundle SMSpackages and recently its call rates have
greatly reduced and have become even simpler. Furthermore its
commitment can also been seen from the fact that it’s slogan of “it’s all about
u” has not changed over the years.

4.2.3.2Telen
or
Telenor since its inception in 2005, has been an aggressive company, trying
to gain market share from other competitors, first it took the third
position from Warid (another company that started in 2005) in 2007 and is
now giving stiff competition to Ufone (currently second13) and is favorite in
gaining the position from its rival company.

The main goal of Telenor is to help its customers get the full
benefit of communications services in their daily lives. This is also
reflected in their vision, which is “we’re here to help”. The main goal of
Telenor is to provide services, which take use of the latest technologies and
are also new to the industry, thus providing their customers with the full
benefits of communications, which other companies are not able to
provide. Telenor’s slogan or punch line also reiterates their goal which is
“the smart call”. Henceforth, by accomplishing its vision, Telenor would be
able to take the second position in the industry and can then provide
competition to the market leader-Mobilink.

The strategies used by Telenor to achieve its goals is by beingcreative,

that is providing new and modern services, that take advantages of new
technologies but are also easy to understand and use. Some of the
creative products introduced by Telenor over the years include: EasyLoad,
SmartShare, mobileTV, largest network of EDGE, PicShare, international
packages like Djuice and many more. All these services are very
creative, never been introduced before and helping all its customers
around Pakistan.

4.2.3.3Wari
d
Warid started its operations in May 2005, and enjoyed a good market share
in the industry, however it has lost its subscribers to its competitors in
recent years, leading to its loss of position in the industry. The main goal of
Warid is to maintain and strengthen its current market share and increase
to positions, which it earlier held in the industry.

The major strategy used by Warid is to create a sense of confidence

among its customers that it is the best network for their lives. That is it
provides the best calling and sms rates, including the value added
services. Its slogan, “life ka network” also provides emphasis to this point.
Warid had earlier efficiently promoted its postpaid packages as affordable
as its prepaid packages, a strategy that increased its postpaid customers
significantly in

13As of July 2008 (PTA

figures)

28
the mobile industry, at a time when overall post paid connections were
decreasing. Currently its agreement with SingTel will also provide emphasis
to its goals and associated strategies.

4.2.3.4Zon
g
Zong, a recent entrant in the mobile industry is a subsidiary of China Mobile.
Zong’s inception was the result of the takeover of Paktel by China Mobile in
2007. Being a new entrant in the mobile industry, its goal is to gain market
share, currently Zong is a small part of the industry, but however it aims
to increase its market share reach above 10% by 2010.

The main strategy of Zong in this concern is to allow people to communicate

at will, without worrying about tariffs, network coverage, capacity issues or
congestion. Its slogan “Say it All”, provide the emphasis to their strategy.

Currently Zong is providing packages with the lowest call rates. Furthermore
it has also introduced features, which were not present earlier. These
include change of happy hours, changing SMS packages and internet
packages on the discretion of its customers.

4.3 Technology Analysis

4.3.1 Technical Methods That Affect the

Industry
Mobile networks are one of the most technical aspects of any mobile
company and the technology changes affecting the networks have changed
considerable, since the first mobile company Paktel was introduced in
Pakistan.

Paktel’s networks ran on Advanced Mobile Phone System (AMPS). AMPS

was the analog mobile phone system standard developed by Bell Labs.
AMPS were a first- generation cellular technology that usedseparate
frequencies, or "channels", for each conversation. AMPS used
considerably more computing power in order to select frequencies; however
cell centers couldflexibly assign channels to handsets based on signal
strength, allowing the same frequency to be re-used in various locations
without interference. However it suffered from some weaknesses
when

29
compared to today's digital technologies. Since it is an analog standard, it
was very susceptible to static and noise and had no protection from
eavesdropping using a scanner.

However with the introduction of Mobilink in 1992, Pakistan’s mobile

industry entered into the second generation of mobile networks with
GSM. GSM (Global System for Mobile Communications) is the most popular
standard for mobile phones in the world. Its promoter, the GSM Association,
estimates that 82% of the global mobile market uses the standard. Its
ubiquity makes international roaming very common between mobile phone
operators, enabling subscribers to use their phones in many parts of the
world. GSM differs from its predecessors in that both signaling and speech
channels, which are digital, and thus is considered a second generation (2G)
mobile phone system. This has also meant that data communication was
easy to build into the system. GSM also pioneered the short message
service (SMS), which is now supported on other mobile standards as well.
Most GSM networks operate in the 900 MHz or 1800 MHz bands.

Currently all mobile networks of Pakistan have entered the 2.5G. Mobile
networks entered the 2.5G, by implementing the General Packet Radio
Service (GPRS). It is a packet oriented mobile data service available to users
of GSM. GPRS can be used for services such as Wireless Application
Protocol (WAP) access, Short Message Service (SMS), Multimedia
Messaging Service (MMS), and for internet
communication services such as email and World Wide Web access. Later
on, Enhanced Data rates for Global Evolution (EDGE) was introduced,
EDGE is an upgrade that provides a potential three-fold increase in
capacity of GSM/GPRS networks. Although EDGE is a 3G technology, but it
is considered a part of 2.5G technologies, however sometimes separately
referred to as 2.75G.

Currently the Pakistan Telecommunication Authority is planning to

launch 3G licenses in Pakistan, starting from the end of 2008. 3G
networks enable network operators to offer users a wider range of more
advanced services while achieving greater network capacity through
improved spectral efficiency. Services include wide-area wireless voice
telephony, video calls, and broadband wireless data, all in a mobile
environment. Additional features also include HSPA (High Speed Packet
Access) data transmission capabilities able to deliver speeds up to 14.4Mbit/s
on the downlink and 5.8Mbit/s on the uplink. Furthermore 3G networks
offer a greater degree of security than 2G predecessors.

4.3.2
Innovation
The mobile industry of Pakistan is considered by many as the most
innovative industry of Pakistan. Innovation means introducing new things or
methods, and the mobile industry has kept this promise by introducing new
and innovative services for years.

In recent years, most of the innovative services have been introduced by

Telenor;
these services being innovative took the Pakistani market by storm and
have

30
become part of our daily lives. Examples of these services include
Easyload and Smartshare. Although Telenor is seen as the most innovative
company right now, we cannot diminish the contributions of other
competitors to the Pakistani mobile industry. Some of the innovative
services introduced by the different service providers are as follows:

Introduction of dynamic SIM’s by Ufone

Introduction of GPRS capabilities of Ufone
Introduction of voice controlled services by
Mobilink Introduction of Bundle SMS packages
by Ufone Introduction of voice SMS by Telenor
Introduction of emergency credit buying by Mobilink
Introduction of dedicated website for downloads by
Warid Introduction of credit share by Telenor
Introduction of BlackBerry services by
Mobilink Introduction of mobile television by
Telenor Introduction of caller tunes by
Mobilink Introduction of backup of contact
lists by Ufone

These and many more services have helped make the mobile industry
what it is today. With innovations, being the hallmark of the mobile
industry of Pakistan, future prospects are bright. Also with swap of mobile
operators becoming very easy using Mobile Number Portability (MNP), and
competition based on tariffs, innovation becomes a must to create a
competitive advantage. Furthermore, introduction of
3G services in the years to come would also increase the innovative
service provided by the mobile operators. Future innovation would take
advantage of the current network capabilities and additional benefits of 3G
networks, including the high speed data transfer services.

5 Department Worked During Internship

I did my 8 weeks internship at the cash management section of the
treasury department of Mobilink. The cash management section is one of
the three sections of the treasury department. The organizational
structure extract of the finance department can be seen in the appendix of
the report.

31
The importance of cash management is immense for a company, including
Mobilink. If at any time a company fails to payoff an obligation when it is due,
because of the lack of cash, the company is insolvent and insolvency is the
primary reason firms go bankrupt. Efficient cash management means more
than just preventing bankruptcy. It improves the profitability and reduces the
risk to which the firm is exposed.

At Mobilink, the main responsibilities of the cash management sections

include the collection, concentration, and disbursement of cash. It includes
its efforts of timely collection of income from its major sales centers and
franchises. Revenues attained from international roaming partners are
needed to be encashed efficiently as well. Furthermore, paying off the
liabilities generated through daily operations and financing activities and
finally developing short-term investment strategies for Mobilink. Some of
the activities done within cash management are as follows.

5.1 Activities Done Within Cash Management Department

5.1.1 Daily
Activities

5.1.1.1Opening Cash
Position
The opening cash position is created daily and contains the following
sections:

1. Cash in hand: Contains the closing balances of all the major

franchises and sales centre’s of Mobilink. It is added to identify the
amount of money that would come into the bank accounts of
Mobilink. There are more than 500 major franchises and business
centres in this list.
2. Details: The details contain the major bank accounts of Mobilink.
These include the major current and saving accounts in which
major collection comes. There are more than 40 such different
accounts. Furthermore some accounts are for specific purposes, for
example MCB account is used to pay commissions for the franchises
and NBP-Mirpur is used to pay the taxes in AJK. Furthermore different
saving accounts pay different interest rates, Askari Bank with the
highest of 13.65%.
Other categories include the DSRA (Debt Servicing Reserve
Accounts); these are used for debt servicing of long term loans.
These are saving accounts, with the purpose of collecting money till
the repayment amount is achieved, after which, as a part of
standing instructions, the following collections are transferred to
main saving or current accounts. Cash Margin Accounts, these are
lien marked accounts for specific purposes like credit cards and
different guarantees. Overdraft Accounts, these includes the
number of accounts, with which Mobilink has overdraft facilities.
Fixed Deposit Accounts, theses are the accounts with which
Mobilink has some fixed deposits, if any. Short Term Loan
Accounts, theses are the accounts used when Mobilink wants any
short term loans. Foreign

Currency Accounts, there is only one foreign currency account of

Mobilink, which is with CitiBank and is used for off shore marketing
expenses and international receipts. Sinking Fund Accounts,
maintained by Mobilink, contains funds

32
 that are set aside to pay the license fee, paid out to PTA and
Utility
Accounts, to pay utility bills of Mobilink are the other types of
accounts.
3. Liabilities: In this section, major liabilities for the month are recorded
in the following categories: taxes, commissions, payroll, and
repayment of loans, roaming partner’s payments, payments against
Form M and Link Direct International (LDI), a subsidiary of
Mobilink payments. The liabilities are updated as needed, with
amounts; bank used for paying off and date of payment.
4. Cheque Float: In cheque float, the major liabilities of different
vendors are recorded. They are divided into three different
regions, which include Islamabad, Karachi and Lahore. The
intimidation of the cheque’s released comes from the accounts
payable department, while the clearance coming from daily bank
statements. All payments of vendors are made from CitiBank.
5. LC and IC’s: This section includes the Import Contract (IC) and
Letter of Credit (LC) payments that have to be paid out for the
foreign transactions that take place with Mobilink. The intimation
comes from the Trade department of Mobilink Treasury.
6. The Main and Forecast summary: The Main Summary includes
both the revenues and liabilities of Mobilink on a given day, while
and the Forecast Summary is made for the current & following month.

5.1.1.2Cash
Transfers
The cash transfer take place every day and includes the transfer of
collections and payment from and to different banks. The major collection of
funds takes place in Allied Bank Limited, Habib Bank Limited, Standard
Chartered Bank and United Bank Limited. These banks receive the most
collection on daily basis but pay less interest, thus all collections from
these banks are transferred to a bank that pays more interest, currently
transferring to Askari Bank, as it pays a better interest rate of 13.65%. . Also
transfer of collection funds from other banks can take place as and when
required by Mobilink. Furthermore all transfer of funds for paying off liabilities
take place from ACBL to the bank required. These transfers for paying off
liabilities take place as required, and are not usually on daily basis.

5.1.2 Occasional
Activities

5.1.2.1Encashme
nt
Occasionally, international roaming income is received by Mobilink from
other cellular operators around the world. However as these receipts
are in foreign currencies and are thus needed to be encashed, on an
intimidation from the bank. Furthermore according to the SBP Foreign
Exchange Policy, companies can only keep 35% of the total foreign
exchange earned in their foreign currency accounts, the remaining 65%
needs to be converted to PKR.

33
5.1.2.2International
Payments
Furthermore occasionally Mobilink has to pay for international roaming
charges to international cellular operators or other international
payments, like paying for training activities for Mobilink employees.
Payments can either be made by debiting the foreign currency account
maintained with CitiBank or by debiting the PKR account and obtaining
foreign currency exchange rate against that amount and paying off the
liability.

5.1.2.3Account
Opening
As needed, the department will open new accounts with banks as needed,
which could be for specific reason, for example the new HSBC overdraft
account or just to facilitate the vendors or franchises of Mobilink.
Furthermore requirements with current banking accounts are changed as
and when required, including the interest rate offered, lien marked and
overdraft facilities. Document required for account opening are as follows:

1. Account opening form duly signed by the CEO

2. Request letter on company letter head
3. NTN Certificate
4. Certificate of Incorporation
5. Memorandum and Article of Association
6. CNIC and Passport of all Board of Directors and Signatories
7. Signature cards signed by all signatories and stamped
8. Form 29
9. List of board of directors
10.Board resolution

5.1.2.4Credit
Cards
Mobilink provides corporate AMEX card to directors and above. Activities
regarding credit card applications, their payments and limits enhancement
etc are handled by the department.

5.1.3 Month End

Activities
5.1.3.1Interest Income
Sheet
The interest income is calculated for those accounts that either pay
interest semi annually or on the 1st of each month. There are total 8 banks
in this list, including Bank Alfalah and NIB. Furthermore this includes the
TDR’s booked by Mobilink. All this information is passed onwards to the
accounts department of Mobilink.
5.1.3.2OD
Sheet
Mobilink takes on overdraft facilities daily from different banks, which gets
off set from the collection, however sometimes it is not offset and remains
outstanding. On the outstanding amount, interest payments are to be paid
and are calculated at the

34
month end and passed on to the accounts payable department. However the
actual payments are made on quarterly basis while accrual is calculated on
monthly basis.

5.1.3.3Calculation of Cash Flow

Statement
Cash Flow Statement consists of three major
parts:

1. Capex (Capital Expenditures)

2. Opex (Operating Expenditures)
3. Financial Charges
Revenue information is received from the revenue monitoring department
(Finance Operations) bifurcating the total revenue earned form
postpaid and prepaid connections. Average revenue earned is 7-8 Billion
PKR. Furthermore information regarding financial charges is taken from
the financing department of Mobilink Treasury.

5.2 Tasks Performed During Internship

5.2.1 Daily
Activities
5.2.1.1Creating Opening Cash
Position
Updating the balances of the major current and saving accounts
maintained by Mobilink, these include accounts maintained in CITI, DB
ACBL, ABL, HBL, SCB, UBL, MCB, NBP, NIB, FBL and RBS. Furthermore
balances are also taken of accounts from whom any payment may be due,
to assess the funds, to be transferred on the next day. Some accounts are to
be adjusted like SCB account is to be adjusted to the lien marked amount.

Updating the cheque float, this includes adding new cheques released on
that day. The information of the new cheques released, is received from the
accounts payable department and then using the DB direct & CITI bank’s
website to see the cheques that have been cleared from the CITI’s current
accounts maintained in Islamabad, Lahore and Karachi. Furthermore,
updating the cash in hand section as and when information is received. The
information is received from the operations department within the finance
department, and as the information of more than 500 franchises and sales
centers is not easy to get daily, the information is only updated 2 or 3
times a week.

5.2.1.2Cash
Transfers
After calculating the amount of liability to be paid out from various banks
on the following day, transfer letters are prepared to transfer funds to the
bank in which they are required. Furthermore, all major collections, that
comes from four major banks, which includes Allied Bank, United
Bank, Habib Bank and Standard Chartered, is transferred to Askari Bank
daily. The instructions for fund transfers are

35
on the same day pay order basis and all instructions to the banks are
forwarded through fax and then confirmed.

5.2.1.3Other
Activities
Filing the photocopies of the transfer letters that were faxed daily was
another task that I performed. Furthermore original transfer letters were
also needed to be sent out to the respective banks and also updating the
payments file daily were some of the other tasks performed daily.

5.2.2 Occasional
Activities
5.2.2.1Encashmen
ts
As soon as Citi bank provides us with a notification on an encashment, a
conversion rate is asked, to convert the 65% of the total amount to Pakistani
rupee. When the bank provides us with the detail, an inward remittance
rate sheet is made, which shows the total remitted amount, the 35% and the
65% amount of the amount, in both foreign currency and Pakistani rupee.
Furthermore a letter to Citibank is also made, issuing them the
authority to convert and transfer the 65% of the encashment into the
account and also transferring the 35% of the amount to the dollar account
of Mobilink.

Lastly a Form R is made to notify the SBP that 65%of the total amount has
been converted to Pakistani rupee, as stated by the foreign exchange
ordinance of Pakistan and lastly all the above letters are attached, with
the original notification letter and then sent to Citi bank to go through with
the transaction. As part of my internship, I had to make all these letters and
then send them to the bank.

5.2.2.2International
Payments
As stated earlier, international payments are made either on international
roaming charges or international charges made by the different departments
of Mobilink.

As soon as our department receives the Payment Authorization Form (PAF),

which is used for inter department expenditures and approvals, with the
completion form and the original invoice, a payment order and a purchase
requisition or the original invoice for non departmental expenditures, the
department issues an letter to the bank for the payment, including the
amounts and all banking details like the SWIFT No, beneficiary bank name
and the account title.

Furthermore a Form M is also submitted to bank, which gives them the

authority to debit our PKR account and buy the foreign currency at a
conversion rate agreed. These letters are then forwarded to the bank, for
the transaction to take place. As part of my internship, I had to make all
these letters and then send them to the bank.

36
5.2.2.3Account
Opening
Mobilinkoften open accounts as to help out with operation, including,
during my internship with Barclays and UBL. As a task, all the main items
were provided to the banks. The main items provided to
these bank included the Memorandum and Articles of Association, Letter of
Incorporation, Board Resolution, Form 29, which shows tells about the
director of a company and the NIC or passports of all the people in the
board of resolution and NTN certificate. All these documents
are attested by the company secretary of Mobilink and are provided to the
bank, with the bank account opening form and request letter from Mobilink.

5.2.2.4Credit
Cards
Credit card of SCB AMEX are provided to all directors and above of the
company and when they want to either increase their limits or wanted to
give out advance payment s into their credit cards because they were going
abroad, or any other expense, letter of authorization are sent to the
Relationship manager handling the Mobilink AMEX card. These letters of
authorizations are made after discussions with the HOD and his final signing
of the letters. As part of my internship tasks, I had to make these letters of
authorization.

5.2.3 Month End

Activities
5.2.3.1Interest Income
Sheet
Each month all the banks to which interest was accrued are calculated.
First all of the bank statements for the period are collected from the accounts
department and then using the applicable rates, all the balances are added
to the interest income sheet and the interest income is calculated. As
part of my internship, I had to calculate the interest amount for the month.
37
6 Identification of a Main Problem and Findings

6.1 Job Rotation and Advancement

The main problem that I have identified within the treasury department as a
whole is the lack of job rotation within the department and not
enacting on the job advancement rules.

According to my findings, no official job rotation takes place within the

treasury department, even though the employees informally try to learn
about the working of other departments through their peers. They show
keen interest in learning new things as all the operations within the
department are interlinked.

Furthermore the only time, officially, when an employee is told about the
working of another part of the department, is only when he is moved to that
part, for example, when an employee initially working for trade department
is transferred to off shore financing because of shortage of employee. This
learning should not be considered as a job rotation, because this shift is
permanent for that given employee.

Furthermore, at Mobilink, the rules and procedures for job advancements

are laid out however it has been seen that junior executives, especially
those at associate level are not promoted to specialist levels, even though
they have fulfilled the main requirement- years of experience with Mobilink.
This creates dissatisfaction within the employees.

7 Conclusion
The mobile industry has seen phenomenal growth over the year, showing
growth rate of more than 80% in 2007. This growth is not new to the
industry, as previous years have shown substantial growth as well. This
growth is a direct result of the increased competition in the mobile
industry, resulting into better services at reduced rate. Furthermore, this
has favorably affected our economy as a whole, generating revenues for
the government, through direct and indirect taxation and creating
employment opportunities for the people. The mobile industry of Pakistan is
considered by a majority of prospective employees as the best industry for a
job.

Although the mobile industry has seen substantial growth over the years,
many observers feel that the industry may become saturated and will show
lower growth rates as a result of increased taxation and the general
economic conditions of Pakistan. Although the concerns may be valid to
some extent, but with PTA, introducing the 3G platform in the coming
years and a major part of our population still without mobile connectivity,
especially in distant villages, there is still optimism that the mobile industry
will not become saturated and there is still place for competition in the
industry.

38
Mobilink has been in operation since 1994, and since then has become the
market leader by providing its customers with the state of the art products
and services. Mobilink has for years enjoyed a good market share of the total
industry; its current market share is 36%14.

Even though Mobilink has been a market leader, for so many years,
providing the most technological advanced products and services, it has for
a number of years been facing strong competition from Telenor and
Ufone, which has resulted in a decrease of its market share. This has led
Mobilink to a policy of diversification, by introducing products like Mobilink
PCO and WIMAX services. Although Mobilink has diversified, it still is
providing competitive products and services for its core products-Jazz
and Indigo.

Finally, internships are an important part of the academic program, as they

provide us with the practical experience during our academic career. I am
very grateful that I received an internship at Mobilink as it was a great
learning experience on how a multinational company works and further
improved my skills of team working and critical decision making.

8 Recommendation
As identified earlier, the problem that I identified was the lack of job rotation
within department and not enacting on job advancement rules and
procedures. Some of the recommendations to this problem are as follows:

Firstly I would recommend that the department officially start job

rotation. The major benefit of which would include even more
motivated employees, with enhanced skills.

One of the major arguments against job rotation is that without it,
employees will perform only one task and will become specialized in
that particular job. Furthermore, the argument also suggests, that
with job rotation, only general information is imparted to employees,
not essentially helpful in doing complex tasks. However, in today’s
business environment, multitasking is becoming more and more essential
and thus rotation becomes essential in making employees multitask.

Furthermore, the organization structure of the treasury department makes it

easy for job rotation, as all sub departments major functions are interlinked to
each other and mostly all departments currently have more than one
associate employee, except cash management.

Secondly I would also suggest that specific job related training should
also be imparted to the employees, this would have an additional
benefit of further
14July
2008

39
improving their current skills and knowledge, while attaining new
through job rotation. Also professional counseling programs should also
be started to provide employees with the information, regarding future
prospects at Mobilink and in the mobile industry.

Lastly, I would suggest, that Mobilink adheres to its job advancement

procedures because for an employee that has worked with Mobilink for
more than 2-3 years, they should be awarded with the fruits of job
advancement, as I believe that the criteria of job advancements currently
used is a standard in most MNC’sand job advancements are a part of
career growth. Furthermore, job advancement s
will create future leaders for Mobilink.

9 Appendix

9.1 Web Resources

Wikipedia (wikipedia.com)
Articles used:
○ Mobilink
○ Ufone
○ Telenor Pakistan
○ Warid Telecom (Pakistan)
○ Paktel
○ China Mobile (Pakistan)
Mobilink (mobilinkgsm.com)
Pakistan Telecommunication Authority
(pta.gov.pk) Ufone (ufone.com)
Telenor
(telenor.com.pk)
Warid (waridtel.com)
Zong (zong.com.pk)
Orascom Telecom
(otelecom.com) The News
(thenews.com.pk)

9.2 Reports
Orascom Telecom Annual Report 2007
Orascom Telecom Annual Report 2006
Mobilink’s Balance Sheet and Income Statement15
15For internship report only, not to be
copied.

40
9.3 Organizational Structure (Extract)

41