Introduction

Introduction of Telecom Industry in Pakistan.

Since the inception of Pakistan, basic telecom services were being provided by a monopolist,
previously called as Telephone and Telegraph department (T&T). The department was being run
by the Government and played multiple roles of regulator, policy maker and operator in the
country. The T& T department was later converted into a corporation. Although the corporation
was earning huge profits from the services, it was re-investing the same profits into the sector for
the provision of more telecom service but the investment was not enough. Further, with the
technological advancement, more and more telecom services were becoming available but there
was not enough money available with the corporation to install new telecom systems for the
provision of modern services. Resultantly, a digital divide prevailed in Pakistan and we remained
far behind our neighbors and other comparable countries in terms of telecom access.

Cellular mobile services in Pakistan were commenced in 1990s when two cellular mobile
telephone licenses were awarded to Paktel and Pak Com (Instaphone) for provision of cellular
mobile telephony in Pakistan. Currently there are four cellular players in the market, two with
GSM technology. Cellular subscribers though grew over the years however, due to partial
competition; cellular companies could not meet the growing demand in Pakistan.

Keeping in view the above factors, government of Pakistan has decided to move away from
monopoly situation in basic telephone and introduce more competition in the cellular market of
Pakistan. The year 2003-2004 is considered as a historical year in the history of
telecommunication in Pakistan. The telecom deregulation which started early this year in Pakistan
has revolutionized the whole industry. Significant landmarks are achieved and the local telecom
scenario is completely changed. Today all telecom services in Pakistan are open to competition
whereby incumbent monopolies will now be competing with telecom giants of the world working
in Pakistan. Telecom services consumers are forecasted to increase by many folds due to price
reduction under competition and price regulation of SMP operators by the Authority

PTA INITIATIVES FOR THE GROWTH OF THE TELECOM IN PAKISTAN

PTA extended number of incentives for the growth of sector which include drastic cut in royalty
for different services and introduction of CPP regime for mobile sector which boosted the growth
of the sector. However, still the penetration of cellular mobile and teledensity in terms of fixed
line in Pakistan is quite low when compared to the similar economies.
 Orascom Telecom

Orascom Telecom or Orascom Telecom Holding S.A.E. ("OTH") (LSE: OTLD) is

telecommunication company established in Egypt in 1998 and owned by Naguib Sawiris. The
first multinational Egyptian corporation, it is one of the core Orascom Group companies.

Orascom Telecom is a mobile telecommunications company with GSM operations in seven

countries in the Middle East, Africa and South Asia. It has a total population under license of
approximately 460 million with an average mobile telephony penetration of approximately 19%.
It is considered among the largest and most diversified network operators in the Middle East,
Africa and Pakistan. Orascom Telecom operates GSM networks in Algeria (Djezzy GSM), Egypt
(MobiNil), Pakistan (Mobilink), Iraq (IraQna), Bangladesh (Banglalink), Tunisia (Tunisiana) and
Zimbabwe (Telecel Zimbabwe). Orascom Telecom subscriber number reached over 40 million
subscribers as of June 2006.

Mobilink

Introduction: Mobilink GSM (PMCL), a subsidiary of ORASCOM Telecom which operates in

nearly 180 countries around the globe, started its operations in Pakistan in 1994, and has become
the market leader both in terms of growth as well as having the largest customer subscriber base
in Pakistan - a base of over 20 Million customers which is still growing. Mobilink is the first
cellular service provider to operate on a 100% digital GSM technology in Pakistan that also
provides state-of-the-art communication solutions to its customers.

Mobilink offers exclusively designed tariff plans that cater to the communication needs of a
diverse group of people, from individuals to businessmen to corporate and multinationals. It
offers prepaid and postpaid connections namely called JAZZ & INDIGO each of which has
further types.

In addition to providing communication services, it also offers a variety of value-added-services

to its customers. At the same time, Mobilink places high importance to its coverage, which is why
they cover their customers in over 1000 cities and towns nationwide, as well as in over 100
countries on international roaming service with the help of their roaming agreement with over
290 partners in those countries. In other words, as Mobilink say it themselves “we speak your
language… everywhere”.
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..Reshaping lives!

Achievements

 ISO 9002 Quality Management System Certification for Billing, Engineering

Departments and CS Contact Center
 Implementation of a full Intelligent Network (IN) platform from Siemens for the Prepaid
platform
 Largest Call Center in Pakistan, which is there to assist the customers 24 hours
 Only cellular service in Pakistan to provide coverage on the M2 motorway
 Bilateral roaming in over 100 countries around the world with true international roaming
with over 300 operators across the globe
 First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry
Roaming services
 MOBILINK GSM's Short Message Service Center allows Vehicle Tracking and Fleet
Management services that are being provided by Tracker (Pvt.) Ltd., under the brand
name of C-Track, a company licensed by Pakistan Telecom Authority (PTA). Tracker
currently operates from Karachi but can provide these facilities at all those locations
where GSM coverage is available

NEW OFFERS

Mobi Greetings

Send a special greeting to your friends and Family using Mobilink World's Greeting Service.

Introducing a new code 0307

With our fast growing mobilink family, we take another step forward to introduce our new code
0307. All our four codes offer you the widest coverage, matchless connectivity and premium
customer services. So next time you make a call, SMS or MMS, Please dial the correct network
code (0300, 0301, 0302, 0306 or 0307) before your desired mobilink.
The 5 C’s Frame Work for Mobilink

Company

Mobilink pakistan Mobile Communications (Pvt.) Ltd, better known as Mobilink GSM, is a
telecommunication service provider in Pakistan. Mobilink's Head office is located in Kulsum
Plaza, Islamabad.Mobilink started operations in 1994 as the first GSM cellular Mobile service in
Pakistan by MOTOROLA Inc., later it was sold to ORASCOM, an Egypt-based multi-national
company. Salogan of company is “reshaping lives”.
(Nowadays in TV commercials Mobilink is also using the Slogan, “HUM BOLAN MUHABAT
KI ZABAN”, (Urdu).

By the end of the quarter the total network infrastructure consisted of approximately 4,860 cell
sites and 45 switches. Mobilink’s competitive advantage has been its aggressive retail presence.
Mobilink’s prepaid product sold under the brand Name Jazz is widely available in more than
1600 cities, towns and villages and 350 franchises all over the Pakistan.

Mobilink revenues increased by 50% year-on-year and 12% over the last quarter. has revenue of
total 250.2 million in 3rd quarter of 2006.

Customers

Mobilink has been embarking on an aggressive growth strategy. Mobilink closed 2003 with 2
million customers. In comparison Mobilink closed 2005 with more than 11 million subscribers.
Currently the subscriber base has increased to 21 million. This makes Mobilink the largest
telecommunication service in Pakistan. During the third quarter of 2006, Mobilink added over 3
million new customers to its network continuing its aggressive growth rate by adding an average
of 1 million customers per month
Mobilink introduced Jazz Octane; which was a significant step towards strengthening the Jazz
brand. The offer was aimed at the youth segment.During the first quarter,
Mobilink received the Research in Motion (RIM) award for the successful launch of the
BlackBerry service in Pakistan. As the exclusive provider of BlackBerry service in Pakistan,
Mobilink has a distinct advantage in the corporate segment over its competitors. BlackBerry
services, have allowed Mobilink to aggressively explore data revenue streams but also strengthen
its position in the voice market as well.
Mobilink launched a segmented offering for women under the brand name of Jazz Ladies First,
following the success of Jazz Octane, a youth oriented package plan. The package plans gives
discounts on longer calls and discounted rates during day time hours favored by women in
Pakistan
Competitors

there are five GSM companies in pakistan!

• Ufone
• Warid tel
• Telenor.
• Paktel

Ufone GSM is a Pakistani GSM cellular service provider, Its one of five GSM Mobile
companies in Pakistan, and is a subsidiary of Pakistan Telecommunication Company. After the
privatization of PTCL, Ufone is now owned by Etisalat. Ufone is spending 550 million US$ to
expand its network across the country.Ufone has a subscriber base of 8.9 million as of Sep 2006
and has network coverage in more than 750 cities.
Ufone also Offer the Prepaid and recently it has also introduce its Postpaid package also.

Paktel was the first ever company granted license to carry out cellular phone services in
Pakistan. . However after the launch and rapid success of Mobilink, it lost big market share, and
is living dangerously in this competitive advantage.

Waridtel user base is growing with lowest package rates of Waridtel it is becoming hot favorite
telecom company of Pakistan. Waridtel focus on its cheap rates more rather than services.It is the
fastest growing company in pakistan. Warid coverage is almost in 121 cities

Telenor Telenor acquired the license for providing GSM services in Pakistan in April 2004, and
has launched its services commercially in Islamabad, Rawalpindi and Karachi on March 15,
2005. Telenor has become the second largest cellular network in Pakistan by launching over 500
destinations in just over a year

Market Share

Paktel, 4%
Telenor, 12%

Warid, 16% Mobilink, 48%

Ufone, 21%
Collaborators

The most important collaborators for mobilink are there 350 franchises across Pakistan
Mobilink has a wide range of voice and data products that help you keep in touch at home and
when traveling

Motorola has signed a major deal with Orascom Pakistan (Mobilink) to replace its existing
legacy home location register (HLR) with Motorola’s home location server (HLS). The HLS is a
highly reliable, next generation home location register that simplifies the network, resulting in
lower capital and operating expenses than a traditional switch-based solution. It is highly scalable
and will also offer added capacity to fulfill Mobilink requirements to cope with subscriber growth
and demands for new applications.
Mobilink becomes the first operator in Pakistan to introduce Maritime Roaming for its
subscribers through collaboration with MCP (Maritime). In June Mobilink, Pakistan's largest
cellular company embarked on the mission of reviving cinema culture in Pakistan. For this
purpose, they joined hands with Box Office, Pakistan's leading film distribution company.

Mobilink other collaborators and Affiliates includes:

 Motorola
 Samsung
 Sony Ericsson
 Muslim Commercial Bank Limited
 UBL
 Blackberry
 Citibank
 Standard Chartered

Context
Marketing Objectives
Survival
Profit Maximization
Sustain Market Share
To be the leading Telecommunication
Services Provider in Pakistan
“4 P’s” Frame work

• Product
• Pricing
• Place
• Promotion

PRODUCTS

Mobilink GSM, is a telecommunication service provider in Pakistan. Mobilink’s prepaid

product sold under the brand Name Jazz and corporate postpaid product under brand name
Indigo.

Prepaid

JAZZ:

Step into the world of Jazz, the largest prepaid brand in Pakistan, which is now an essential part
of the lives of millions of individuals. It provides you with the highest level of affordability, not
only by virtue of price, but also through its unique features of freedom, convenience and control
over one's budget. And Mobilink Jazz offers many different packages to its customers like, Jazz
Budget, Jazz Easy, Jazz Octane, Jazz Ladies First.

Jazz Budget:

Mobilink Jazz introduced the Jazz Budget Package, the most economical way to talk to any
Mobilink number in Pakistan . This all time low package enables customers to stay connected
with more than 20 million customers at the lowest rates.
Keeping in view the fact that Mobilink customers make 7 out of every 10 calls to a Mobilink
number the new package is specifically customized to offer customers the lowest rates to call the
largest mobile network in Pakistan.

Jazz Octane:

Mobilink Jazz introduced another Prepaid package with the name of “Jazz Octane”. you will go
crazy with the lowest ever SMS rates, get thrilled with lower late night rates, hook onto the
coolest rates for three favourite numbers.
Jazz Ladies First:

For the first time ever, a package designed especially for ladies – Jazz Ladies First is your
command on the very best. From sizzling recipes to tips on looking your best are all an SMS
away. Remarkably low calls rates & to top it all, feel free to shop well within your budget with
Jazz Ladies First discount card.

International Roaming:

Jazz goes "International" with the launch of its international roaming facility in the United
Kingdom and Saudi Arabia. Jazz has introduced yet another "First" in the industry by offering
International roaming in the UK, which is among the top 3 traveled destinations in the world.

• No security deposit and zero activation charges

• Convenience with One Number, One SIM Card
• Free incoming SMS
• Multiple recharge options
• Balance Check through *111#

Mobilink PCO:

For the first time ever Mobilink brought Mobilink PCO, a revolution in its own right that shall
surely set apace the way its consumers communicate at the grass root level. Mobilink PCO is a
fixed wireless phone that has special PCO functions capability. It consists of two LCD's that helps
customers to keep a tap on the duration and the costing of the calls they make.
Mobilink PCO does not only give its consumers higher returns on a very low investment but it
will also create a world of better prospects in terms of a consistent source of income for them.
With this unit Mobilink customers can experience even higher returns even though the investment
in terms of capital is very minimal.

Tariff Details of all the Mobilink Jazz Prepaid Packages:

• JAZZ BUDGET

Jazz Budget Tariffs

Details Rates

Outgoing calls to any Mobilink number Rs. 0.99 / 30 seconds

Outgoing calls to all mobile networks in Pakistan Rs. 3.25 / min

Outgoing calls to all Landline numbers in Pakistan Rs. 3.25 / min

SMS (Jazz to Mobilink) Rs. 1.0 / SMS

SMS (Jazz to other networks) Rs. 1.5 / SMS

• JAZZ OCTANE

Jazz Octane Tariffs

Details Rates

Outgoing calls - Any Mobilink number Rs. 3.00 / min

Outgoing calls - To Landline numbers(inclusive Rs. 3.35 / min

of interconnect charges)

Outgoing calls - Other mobile networks(inclusive Rs. 4.35 / min

of interconnect charges)

Outgoing Calls to any 3 Favourite Mobilink Rs. 0.99 / min

numbers*

SMS (per Message)*** Jazz to any Mobilink 25 paisas

number

SMS (per Message)*** Jazz to any other Rs. 1.50 / SMS

network in Pakistan

Late Night Option - All Mobilink numbers ** Rs. 1.50 / min

On Call Services (CLI, Call Waiting, Call Free

Forwarding)

Daily Charges Rs. 1.00

Favorite Numbers Offered 3 (Three)

Favorite numbers addition/modification Rs. 50 + tax / number

• JAZZ LADIES FIRST

Tariff Details

Details Rates

Outgoing calls - Any Mobilink number(1st Minute) Rs. 3.00 / min

Outgoing calls - Any Mobilink number(2nd minute Rs. 1.50 / min

onwards)

Outgoing calls - Any Mobilink number ( 3pm-6pm Rs. 1.50 / min

)

Outgoing calls - To Landline numbers(inclusive of Rs. 3.35 / min

interconnect charges)

Outgoing calls - Other mobile networks(inclusive Rs. 4.35 / min

of interconnect charges)

SMS based Value Added Services Subscription Rs. 30 / month

SMS (Push based Value Addes Services) Rs. 2.00 / SMS

SMS - Any mobilink number Rs. 1.00 / SMS

SMS - Any other network Rs. 1.50 / SMS

 ISD Calls (Zone 1 / Zone 2) 3 + Zone Rates

Postpaid

INDIGO

Mobilink Indigo ignited an evolution in the communication industry redefining the essence of
the post paid services in Pakistan . The brand delicately caters to the need of its customers,
symbolizing the vision of connecting the subscribers in every aspect of life.
Indigo postpaid offers following services:

Blackberry Service:

BlackBerry is the leading wireless enterprise solution offered by Research in Motion Ltd. (RIM)
that keeps mobile professionals connected to people and information while on the go. It is a
proven platform that provides users around the world with secure, wireless access to a full suite
of business applications including:

 Email
 Phone
 SMS
 Web
 Organiser features

Corporate SMS:

Corporate SMS is an SMS Broadcast Application that enables corporate users to Send, Manage
and schedule message broadcasts to multiple recipients on any mobile and land line number in
Pakistan

Traiff Details for Mobilink Indigo.

Details Freedom Freedom Plan Freedom Plan Freedom Freedom
Plan 1 2 3 Plan 3+ Plan 4
Weekend
Rs/min 0.99 0.75 0.63 0.50 0.40
Tariffs
F&F Charges Rs/min 0.99 0.75 0.63 0.50 N/A
Air Time
Rs/min 2.00 1.50 1.25 1.00 0.60
Charges
Free Minutes Monthly 0 100 400 800 1200
Line Rent Rs 0 100 400 900 1500
SMS Rs/msg 1.00 1.00 1.00 0.75 0.50
Free SMS Monthly 10 15 20 25 30
 Piricing

Pricing is a very tactical option for Mobilink. in general there are 2 types of pricing
stratergies undertaken.

• Skim Stratergy.
• Penetration Stratergy.

Since its establishment in 1994, Mobilink followed a Skim Stratergy i.e to focus on those
customers with high value. Skimming the cream off the top of telecommunication market. At start
Mobilink used to sell there GSM connection for round about RS.4000.
However the dynamics of the telecommunication markets have changed a lot, because of the new
entrants. These new entrants used a Penetration Pricing stratergy to generate lots of sales, at a
lower price and capturing a large number of cellular service users in a short span of time.

Place

For Mobilink place basically means how Mobilink creates and handles its marketing channels.
For Mobilink these marketing channels serve the following basic functions, which are

• Product Information
• Product Quality assurance
• Lot size
• Availability
• After sale service

Product Information is basically creating awareness of Mobilink’s service to its present and
potential customers. This is basically done through advertising through electronic and print
media.

Product Quality Assurance is basically knowing the perceptions about its service from its
customers. And continuing with the methods to make its service better to satisfy their customers.
This is done by getting feedback from its customers on regular basis.

Lot Size is ability to buy in small quantities. Mobilink allow its consumers to buy in small
quantities from its franchises.

Availability to make sure that Mobilink has sound and strong retail presence. This is also done
through its Franchises.
After sale service is also done by Customer Care Dept. & franchise
SWOT ANALYSIS

SWOT stands for

• Strength
• Weakness
• Opportunities
• Threats

STRENGTHS:

Due to the extremely wide network of Mobilink it has various strengths. These
strengths are as follows:

Large Market Share In Pakistan:

As we know Mobilink has a very large market share in Pakistan as compared to its
competitors. The reason is that it has large number of customers and provides variety of services.

Maximum Number of Customers:

Another major strength of Mobilink is that it has the largest
number of customers, i.e more than 20 million. Unlike the other competitors it actually don’t has
a problem to cover a wide market share because it has a one which is much greater as compared
to those of its competitors.

Wide Network Coverage:

Mobilink covers more than 350 Towns & Cities which makes it ahead
of its competitors and a network providing the widest coverage.

Brand Image:
The brand image of Mobilink is itself a strength which is enough at the moment to
compete with its competitors.

Stable Market Conditions:

The market conditions of Moblink have been stable ever since it has
stepped in Pakistan. Such stable conditions help the company to proceed further and pay more
attention to other issues which can be threatening,.

Technically Stable:
Mobilink has excellent peace of technology which is its major strength and
is one of the reasons of the companies success & being consistent. Technology is also helpful in
decreasing the man power and if it is used efficiently &effectively it reduces the chances of
errors.
 WEAKNESS:

Different customers have various problems with the service of Mobilink:

High Rates:
Most of the current Mobilink customers have a problem with the high call rates
of Mobilink. Its competitors are providing the same services at comparatively low prices which is
threatening for Mobilink.

Network Problem:
Sometimes the customers face problems regarding the network. Most of the times when another
service is used to connect with Mobilink, connectivity becomes a major issue. This may represent
the marketing strategy of the company or

Mismanagement Due to Large Network:

Poor Customer Service.

OPPORTUNITIES

• Different Promotional Packages:

In this part Mobilink has aleardy done quite good work and it can still do better by
introducing more packages as it has introduced in the recent years like, Jazz Load, Jazz
Ladies First, Mobilink PCO’s, Coporate SMS etc.

• Sponsorships for Local & International events:

Mobilink has always been on the forefront when it comes to supporting arts and culture
in Pakistan. And sponsorship of these kind of events can help in a higher brand image

• Investing & Development Opportunities:

Because of unsaturated market investing and development opportunities are very High.

• Unsaturated Market:

The telecommunication market in Pakistan is not saturated so there is still a lot of room to
capture new potential customers and to generate more revenues.

• Changing Marketing Mix:

THREATS
Highly Competitive Market:

Because of a lot of competitors present in the market it has become difficult for mobilink
to rule the telecommunication service in Pakistan as it was doing a few years before.

Changes In Technology:

As the cellular technology is changing day by day, Mobilink will need to remain upto
date with the technology to survive in this competitive environment.

High Tariffs:
Such high Tariffs of Mobilink are the biggest threats to it.

Recommendations

• Mobilink can invest more in human resource development so that they can provide its
customers with a better service.
• Mobilink will get a good response from its customers and other people if its tariffs are
reduced. Mobilink is a market leader in spite of the high tariffs as compared to their
competitors, so reducing tariffs will surely attract more customers.
• Currently Mobilink is covering about 400 cities in Pakistan, which is indeed a very big
network. Investing in research and development will surely eliminate the management
problems which Mobilink is facing because of its vast network.
• Mobilink is operating in a highly competitive market where it has many competitors e.g.
ufone, warid etc, therefore any wrong decision will lead Mobilink to suffer heavy loss
because market challengers always strive to increase market share and become market
leader.