Worldcal Strategy

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WORLDCALL TELECOM LIMITED
BUSINESS POLICY AND STRATEGY – ROJECT REPORT

UNIVERSITY OF CENTRAL PUNJAB
ACKNOWLEDGEMENT
We are very thankful to Allah Almighty who

has given us the power and ability to think
and judge the matters and then to make use
of the blessed abilities. Our most respectable
teacher Prof. G. Ahmad Rana is the only
source who directed us to apply our abilities
in the required direction. Thanks to our
parents and friends for their encouragement
and support. And to management of WorldCall
for their support in completing this project.

DEDICATION
“THIS REPORT IS DEDICATED TO ALL

BUSINESS STUDENTS”
We like to dedicate this report to all

business students who are struggling to
become business professionals and plan to
achieve the dreams of their parents. We
hope that they would extract useful content
out of this report and today we feel
honored to be able to help someone. May
ALLAH help all of us!
Table of Contents
Introduction............................................................................................9
Brief History.........................................................................................9
Situational Analysis............................................................................10
Structure of WorldCall........................................................................12
Location of offices.................................................................................13
Location of Head Office......................................................................13
Wireless Local Loop Main Office.........................................................13
WLL Helpline......................................................................................13
Number of Total Employees:-............................................................14
Legal Status and Nature of Business.................................................14
Type of Ownership.............................................................................16
Key Players........................................................................................17
Vision and Mission Statements.............................................................19
VISION:-..............................................................................................19
MISSION:-...........................................................................................19
Goals & Objectives of WorldCall 2009-2010:-.......................................20
GOALS:-..............................................................................................20
OBJECTIVES:-......................................................................................20
External and Internal Assessment........................................................21
STEPLE ANALYSIS...............................................................................21
Social factors.....................................................................................22
Technological factors.........................................................................23
Economical factors.............................................................................24
Political factors...................................................................................25

Legal factors......................................................................................26
Environmental factors........................................................................26
Porter’s five forces model.....................................................................27
Threat of New Entrants......................................................................27
Bargaining Power of Suppliers...........................................................28
Bargaining Power of Consumer..........................................................29
Threat of Substitute Products............................................................30
Rivalry among Competitors...............................................................31
EFE MATRIX...........................................................................................32
IFE MATRIX............................................................................................33
CPM.......................................................................................................34
SWOT ANALYSIS....................................................................................35
Strengths...........................................................................................35
Weaknesses.......................................................................................35
Opportunities.....................................................................................36
Threats...............................................................................................36
SWOT Matrix.........................................................................................37
SPACE MATRIX......................................................................................38
BCG Matrix............................................................................................42
IE MATRIX.............................................................................................43
GRAND STRATEGY MATRIX...................................................................45
Core Competencies Analysis................................................................47
Specific Specialties............................................................................47
Factors involved in success of world call (KSF)....................................48
CORPORATE CULTURE..........................................................................48
Strategies Undertaken at:....................................................................50
Corporate level:-................................................................................50

Types of diversifications they are following.......................................51
Related Business Diversification (only)..............................................51
Defensive Strategy..........................................................................51
Forward Integration.........................................................................51
Product / Service Portfolio Management.........................................52
Product Development Strategy.......................................................52
Market Development Strategy........................................................52
Business level strategies...................................................................53
WorldCall Data (EVDO Wireless Broadband)...................................53
WorldCall Voice (LDI Services)........................................................53
WorldCall Entertainment (Video On Demand).................................53
Functional/Management Strategies......................................................54
HRM...................................................................................................54
Administration....................................................................................54
Decision Making.................................................................................54
Quality Checking Department............................................................55
Motivation & Incentive Techniques:...................................................55
MARKET ANALYSIS................................................................................56
Segments And Target Market...............................................................57
WORLDCALL’s TARGET Market..........................................................57
7P’s of marketing..................................................................................58
PRODUCTS/SERVICES.........................................................................58
PRICING..............................................................................................62
DETAILS OF PACKAGE PRICING..........................................................63
PLACE / DISTRIBUTION.......................................................................66
PROMOTION.......................................................................................66
PEOPLE...............................................................................................67

PROCESSES........................................................................................68
PHYSICAL EVIDENCE..........................................................................69
MARKET SHARE.....................................................................................70
Market Share in LDI............................................................................70
Broadband Share...............................................................................71
WLL Market Share in Subscription.....................................................72
COMPETITIVE ANALYSIS.....................................................................73
COMPETITORS DETAIL........................................................................74
Main Marketing Strategies and Market Positioning............................78
Financial Analysis (30 June 2009).........................................................79
Key performance indicators...............................................................79
LIQUIDITY RATIOS..............................................................................80
EPS.....................................................................................................80
TURNOVER RATIOS............................................................................80
PROFITABILITY RATIOS:-.....................................................................81
ROI:-...................................................................................................81
Position on June 2009......................................................................82
OTHER STRATEGIES..............................................................................83
Research & Development..................................................................83
Production:.........................................................................................83
Procurement:-....................................................................................83
Problem Section....................................................................................84
Main Problems according to Management:-.......................................84
Main Problems according to our Analysis:-........................................85
Strategic Alternatives:-.........................................................................86
Solutions to solve the problems:-......................................................86
Implementation plan............................................................................87

Conclusion............................................................................................90
References:-.........................................................................................91
References:-
INTRODUCTION
BRIEF HISTORY
The Oman telecommunication company is the most reliable and
unique telecom and multimedia service provider in Pakistan which is
also known as Omantel. The world call telecommunication limited is
also the Omantel’s company.
The company’s word:-
“WorldCall launched its business in June 1996 with payphone

operations. A fundamental shift in technology and industry, innovation
and dedication led us to growth in diversified businesses with a range
of services designed to serve the needs of the local market. From
Cable Broadband to Wireless Broadband, from Cable TV to Video on
Demand, from LDI services and fiber optic network to wireless local
loop telephony, WC has crossed a number of milestones. WC offers an
array of services under three major service categories i.e. Data,
Entertainment and Voice.”
WorldCall Telecom Ltd. became an associate company of Omantel

after acquisition of major share holding by Omantel in 2008. Today,
WorldCall Telecom has become more innovative, dedicated, and
reliable company in Pakistan.
Status of Omantel:-
Oman Telecommunications Company (Omantel) is the largest

communication service provider in Oman. Any telephone call you
make, local or international, the SMS Messages, or internet services,
Omantel is the major and larger provider.

SITUATIONAL ANALYSIS
In 1996 First Capital Securities Corporation commenced to incubate

payphone operation named WorldCall Payphones Limited. The new
venture stood first in a communication revolution that was yet to hang
on the country. WorldCall perception of a changing business
environment placed them at the lead of a demand-led explosion of
payphones all over the country. WorldCall introduced their first
payphone in June 1996. They were one of the largest fixed line
payphone operator. With the expansion in telecom they have
continued to innovate. Over the years they have invested heavily in
new technologies and businesses.
In 1998 prepaid calling cards were launched by WorldCall Phonecards

under the brand name "Hello". In the following years WC provided its
dial-up internet services through WorldCall.com.
In 2000 WorldCall in Multimedia segment established a Hybrid Fiber

Coaxial (HFC) network in Lahore thus becoming the first Multi-service
operator in the country, providing cable television and Internet-over-
cable. WC cable TV in Lahore, is the last but largest entrant till now.
In 2003 WC launched a state of the art HFC network operation in

Karachi under WorldCall Broadband Limited. These are the largest and
only national networks capable of three features at the same time
(cable TV, high speed internet/data and telephony). WorldCall Telecom
Limited got Wireless Local Loop (WLL) license in the post deregulation
auction to provide WLL telephony in all 14 telecom regions of Pakistan
primarily in the 1900 MHz band. It has partnered with Samsung for a
CDMA 2000.
WC started service from Lahore in June 2005 which is now available in

over 40 cities. WC also acquired an LDI license and service
commenced at the end of 2004. WTL enjoys significant edge over
10

competition due to unused fiber optic capabilities available in the
telecommunication sector.
In April 2008, Omantel had acquired 65 percent shares of

WorldCall Telecom Limited for $200 million. The CEO WorldCall Mr
Salmaan Taseer led the WorldCall delegation Salman Taseer said that
WorldCall is the first company to launch payphone cards, High HFC
System and local loop in the country. WorldCall is positioned in a
unique way being the only real Multi Service Operator (MSO) in
Pakistan telecom landscape with proven track record and established
market position in various segments of its operations. WorldCall also
enjoys leadership position with consistent growth in its market share
for broadband connectivity and cable television.
Focus of rollout will principally target broadband segment with

sustained growth of voice services. This planned expansion coupled
with initial investment would see a decent inflow of capital into
Pakistan. Omantel is a publicly traded telecom company based in
Oman with diversified operations. However, acquisition of majority
stake in WorldCall is its first overseas venture.
11

12

STRUCTURE OF WORLDCALL
13

LOCATION OF OFFICES
LOCATION OF HEAD OFFICE

WorldCall Telecom Limited
67-C III, Gulberg III, Lahore, Pakistan
Tel: (92 42) 5872633-38
Fax: (92 42) 5755231
WIRELESS LOCAL LOOP MAIN OFFICE

Ibrahim Trade Center (Near Barkat Market)
1- Aibak Block, New Garden Town, Lahore
(92 42) 8464646
www.callwireless.com.pk
WLL HELPLINE
(92) 0800-19111
WC Net Helpline 109
14

NUMBER OF TOTAL EMPLOYEES:-
As of June 2009, around 1800 total employees work for WorldCall.
(More than 3000 before downsizing after acquisition of WorldCall by
Omantel, however these decisions were taken by the Omani top
management)
LEGAL STATUS AND NATURE OF BUSINESS

The Group consists of:
WorldCall Telecom Limited
WorldCall Telecom Limited ("the Company") is a public limited

company incorporated in Pakistan on 15 March 2001 under the
Companies Ordinance, 1984 and its shares are quoted on the Karachi
and Lahore Stock Exchanges.
WorldCall Telecom Ltd. group's principal activity is to provide

telecommunication services. It operates through two business
segments: Telecom segment provides operation and maintenance
services for payphone network. Broadband segment provides internet
over cable and cable TV services. The Group operates mainly in its
domestic market.
The Company commenced its operations on 01 December 2004 and is

engaged in providing Wireless Local Loop ("WLL") and Long Distance &
International ("LDI") services in Pakistan, operation and maintenance
of public payphones network and re-broadcasting international/national
satellite/terrestrial wireless and cable television and radio signals as
well as interactive communication and to establish, maintain and
operate the licensed telephony services. The Company has been
licensed by Pakistan Telecommunication Authority ("PTA") and
15

Pakistan Electronic Media Regulatory Authority ("PEMRA") for these
purposes.
16

Worldcall Telecommunications Lanka (Private) Limited ("the
Subsidiary") was incorporated in Sri Lanka and is a joint venture with
Hayleys Group to operate payphones. The principal activity of the
Subsidiary is the operation and maintenance of public payphones
networks. Payphones are installed at various shops/commercial
outlets. The Company holds 70.65% of voting securities in the
Subsidiary.
17

TYPE OF OWNERSHIP
A Subsidiary of Omantel
Before the acquisition and restructuring of WorldCall, the WorldCall

group was consisted of following companies:
• Worldcall Communications Limited
• Worldcall Phonecards Limited
• Worldcall Multimedia Limited
• Worldcall Broadband Limited
Omantel decided to consolidate WorldCall into a single company and

as a subsidiary of Omantel.
Foreign Subsidiary
Worldcall Telecommunications Lanka (Pvt.) Limited is a foreign

subsidiary of Worldcall Telecom Ltd.
18

KEY PLAYERS
Historically Salman Taseer remained the key player in WorldCall as a
Leader, CEO and Chairman.After the completion of acquisitions
Omantel plays important role at corporate level but WorldCall lacks
any leadership personality like Salman Taseer.
CEO of the Company
The current players are Babar Ali Sayed (CEO) former LDI Director
Operations. First time in the history of WorldCall the CEO is from
Technical Department, unlike previous CEOs with background in
Finance and Chartered Accountants. A current picture of MR. Babar Ali
Syed is below:
19

Board of Directors
• Dr. Mohammed Ali Mohammed Al-Wohaibi (Chairman)
• Salman Taseer
• Babar Ali Syed (CEO)
• Talal Said Marhoon Al-Mamari
• Saleem Jawad Jaffer Al-Khabori
• Sameer Hamed Nasser Al-Siyabi
• Abdullah Zahran Abdullah Al-Hinai
• Sumbul Munir
• Sulieman Ahmed Said Al-Hoqani
• Asadullah Khawaja (Nominee of Arif Habib Securities Ltd.)
20

VISION AND MISSION STATEMENTS
VISION:-
We at WorldCall are committed to achieving dynamic growth and
service excellence by being at the cutting edge of technological
innovation. We strive to consistently meet and surpass customers',
employees' and stake-holders' expectations by offering state-of-the-art
telecom solutions with national & international footprints. We feel pride
in making efforts to position WorldCall and Pakistan in the forefront of
international arena.
MISSION:-
In the telecom market of Pakistan, WorldCall to have an overwhelming
impact on the basis of following benchmarks:
• Create new standards of product offering in basic and value

added telephony by being more cost effective, easily accessible
and dependable. Thus ensuring real value for money to all
segments of market.
• Be a leader within indigenous operators in terms of market share,
gross revenues and ARPU within five years and maintain the
same positioning thereafter.
• Achieve utmost customer satisfaction by setting up high
standards of technical quality and service delivery. Ensuring the
most profitable and sustainable patterns of ROI (Return on
Investment) for the stake-holders.
21

GOALS & OBJECTIVES OF WORLDCALL
2009-2010:-
GOALS:-
• To redevelop an infrastructure which help company to implement
multi destination LDI operations
• To expand the wireless broadband network
• To secure advertisement revenue share through cable TV
network
OBJECTIVES:-
• To secure international terminations from the major countries of
Europe and USA; and establishments POPs (Point-Of-Presence,
Switch, Router, Billing system) using co-location.
• To establish head-ends(main transmission source) in 14 major
cities of Pakistan.
• WorldCall plans to expand its EVDO service in all the 50 major
cities of Pakistan.
22

EXTERNAL AND INTERNAL
ASSESSMENT
STEPLE ANALYSIS
The Telecom sector all around the world and especially in Pakistan has
experienced a tremendous growth in the last few years. The
telecommunication sector of Pakistan was awarded the status of
industry in 2005 and since then it has been one of the fastest growing
sectors of Pakistan quite eminent from various factors such as the
mobile density reaching 52.87 in April, 2008 and the number of mobile
subscribers reaching 85 million. (Source: Pakistan Telecommunication
Authority, Annual report 2007-2008).
23

SOCIAL FACTORS
Telecommunication is used in the professional and private sphere now
days.
✔ Better telecommunication services and telecommunication is now

becoming essential part of people lifestyle.
✔ Now people have become habitual of consuming new technology
products. Internet has become a real working tool; people use
Internet at home, at work.
✔ People are interested in more than just “Plain Old Cable/TV”
technologies… like Digital Cable TV, Video-On-Demand, and
Personal Video Recorders not just plain old TV due to frequent use
of internet.
✔ Young generation is getting more interest in wireless
telecommunication and spend more time in online social activities
like chatting, social networking.
✔ Telecommunication becoming an integrated part of our social life
style. People now like to use Facebook on their pc and on mobile,
allowing them to connect with their family and friends anytime
anywhere.
✔ Internet becomes an integral part of people social-lives.
✔ Online gaming is growing rapidly and the ever increasing gaming
competition all over the wold and in pakistan as well.
24

TECHNOLOGICAL FACTORS
✔ Telecom sector have technology with which they can compete in
Pakistan and now companies are investing in their infrastructure
to not only expand but also to upgrade their existing structure.
✔ Currently mostly companies are providing Multi-media
Messaging Services (MMS), General Packet Radio Service (GPRS),
Virtual Private Network (VPN), Pocket Stocks, Conference Calling,
Wallpapers Animated pictures Polyphonic ring tones (WAP), and
Voice Mail at low price and some are also providing feature that
one can see TV channels on their cell.
✔ ndividuals and companies are recognizing the benefits of mobility
of wireless broadband.
✔ The expertise of IT and Telecom industry has greatly reduce
cost and time on the usage of products and services. For
example, new VoIP technologies are changing the cost structure
of the LDI business.
✔ Upcoming future wireless broadband technologies are changing
the trends of internet usage.
✔ Pakistan’s telecom industry is one the fastest growing industries
even compared to other countries.
✔ Innovations and development in telecom technologies has played
a major role in the overall growth.Innovations and Developments
in IT and Telecom can create and motivate new demands. Like
Video Conferencing induced more demand for companies
interested in online business meetings.
✔ Now a days firms are in search of reliable information systems.
And for this telecom technologies playing vital role.
25

ECONOMICAL FACTORS
✔ The ever increasing economical issues like inflation and the
growing debt of Pakistan.
✔ The disposable income of people getting low due to the price
inflation of consumer goods & services.
✔ PTA report 2008 tells that telecom sector of economy is in a
good shape and growing.
✔ Inflation is controlling by state bank and under strict eyes but
unemployment rate is going up and up with the increase of level
of poverty.
✔ High interest rate ~13%
✔ Decline in Telecom share in total GST due to low tariffs.
26

POLITICAL FACTORS
✔ The political environment of Pakistan is getting unstable &
uncertain day by day so only the government decision and
initiative measures are very important.
✔ Decline in foreign investment is also the reason of political
instability.
✔ PTA is highly autonomous govt. organization and has shown the
moderate continuity in the policies regardless of changes in the
political environment.
27

✔ PTA is striving hard and trying its best to provide equal
competition opportunities in Telecom industry.
✔ Govt. can announce unexpected tax changes in Telecom
industry.
✔ PTA convinced the government that raising taxes will not result in
more money coming in – the reverse is actually true as the
Pakistan government got less revenue.
28

LEGAL FACTORS
✔ Corruption and bribery in legal authorities suffers a telecom
companies a lot to face difficulties
✔ PTA is the telecom industry regulator and their some objectives
are:
✔ Telecom sector changed from monopoly to competition
✔ Protection of the rights of the companies competing with
incumbents and to provide safeguards the interest of the users of
the telecommunication services.
✔ The unbiased laws of telecom sector to establish healthy
competition in market.
ENVIRONMENTAL FACTORS
✔ The telecommunication towers spoil the view especially of
tourism places but no attention is paid towards this.
✔ Ecological Factors
✔ Natural Obstructions in Wireless Transmission
✔ Infrastructure usage facing difficulty due to the conditions of
land.
29

PORTER’S FIVE FORCES MODEL
THREAT OF NEW ENTRANTS
Telecom is a very capital concentrated industry, entry into this industry
means that the firms need access to huge amount of capital
mainly to cover the fixed costs to lay and maintain a physical network
(infrastructure, fiber optic cables etc) to the premises of customers.
As it is mandatory for the firms to get approval/licenses from PTA,

which is both costly, and a tiresome job. Although companies in this
industry mostly tended to monopolies regulated by the government up
to price controls and moderate to heavy taxation. The telecom industry
is already dominated by major players and smaller manufacturers have
to struggle, due to high setup costs and market dominations threat of
new entrants is low because of:
➢ High Government restrictions or legislation

➢ Telecom licenses, rights, regional licenses
➢ Expected Mergers and Acquisitions
➢ High fixed costs
➢ High Capital requirements
➢ Aggressive competition
30

BARGAINING POWER OF SUPPLIERS
There is intense competition between suppliers because of multi-
million dollar contracts between Pakistani firms and mostly foreign
suppliers.
List of suppliers who intensely compete with each other to reach

contracts with their business customers. Sometimes suppliers show
flexible behavior to maintain the long term relationship with their profit
oriented customers.
In an telecom industry the manufacturers of telephone switching

/switch board equipment, fiber optic cables, network equipment, and
billing software makers are low. The prominent names in this industry
include Cisco, Alcatel-lucent, Ericsson, Hawawie, ZTE, Samsung, Nortel
and Motorola.
With the outcome of economic crises and excess capacity and falling
demand, the suppliers do not have much power and have to negotiate
gently with the telecom companies because of:
➢ High availability of substitute inputs

➢ Competitive suppliers of telecom equipment
➢ Low degree of differentiation of inputs, due to high component
standardization.
31

BARGAINING POWER OF CONSUMER
Consumer have high power because customer influence in pricing and
shifts towards other sellers if he/she is not satisfied with the quality or
price of the product or services. Consumers have very high buying
power in telecom sector because though they have many options to
choose from especially in Voice segment.
Firms are now more concentrating on providing after sales services.

Most of the products in the telecom sector industry have not much
difference while some may have considerable differences.
The increasing trend of communication like email, instant messaging,

is declining the importance of voice services.
➢ Switching to another product is simple

➢ Customers are price sensitive
➢ Consumers have high product knowledge
➢ Switching costs are low
➢ Availability of existing substitute products
Plenty of choice of several technologies and other communication
means available, enhanced the buyer’s power.
32

THREAT OF SUBSTITUTE PRODUCTS
There are many substitutes available in market. In case of
unsatisfactionwith any of the feature customers can easily switch to
the other because he/she has the almost exact or the same kind of
substitutes.
Many of the substitute products and services have emerged in voice,

data and entertainment in telecom due to the technological
breakthroughs. Switching power is high in telecom sector characterize
by high technological developments and fast availability of alternative
substitutes.
Some of these are more convenient and offer far greater value to the
consumer and have diminished the importance of traditional fixed line
phones. Substitutes include Broadband, Wireless broadband, DigitalTv,
IP Telephony, Mobile phones, Satellite, Email, and Instant Messaging
etc.
33

RIVALRY AMONG COMPETITORS
Due to growth opportunities and government focus on the telecom
sector, there is a strong likelihood that competition will gradually
increase as new firms enter the industry.
there are many existing competitors of world call. The intensity among
current rivals is intense and they are mostly competing on
technological bases to create competitive advantages.
Industry rivalry has become extremely intense with the emergence of

new competing firms leading to price cuts across the industry.
➢ Companies can only grow by stealing market share away from

competitors.
➢ Telecom industry with a very high growth.
➢ Advertising intensity and spending are very high
34

EFE MATRIX
Key External Factors Weight Rating Score
Opportunities:-
Demand increased for backhaul network 0.04 2 0.08
Cross-sell in major cities 0.1 2 0.2
Increased demand for LDI and Broadband 0.05 3 0.15
Privatization of government telecom projects 0.09 2 0.18
PTA delayed 3G licenses 0.15 3 0.45
Threats:-
Economy instability 0.1 3 0.3
CaTV operators alliance 0.1 2 0.2
Threat by WiMax or other 4G technologies 0.11 1 0.11
Government policies 0.08 3 0.24
Increased consumer churn rate 0.12 3 0.36
Heavy Price competition 0.06 2 0.12
TOTAL 1 2.39
35

IFE MATRIX
Key Internal Factors Weigh Rating Scor

t e
Strengths:-
Technical infrastructure 0.09 3 0.27
HFC-cable 0.12 4 0.48
Product range 0.06 3 0.18
Working in major cities 0.06 3 0.18
Reputation 0.08 3 0.24
Balanced sales 0.08 3 0.24
Reliable wireless broadband 0.05 3 0.15
Weaknesses:-
High dependence on Voice segment 0.1 2 0.2
Weak marketing 0.01 2 0.02
Lacking a proper long-term strategy 0.1 2 0.2
Weak brand positioning 0.1 1 0.1
Less focus on short-term profitability 0.01 2 0.02
Infrastructure varies from location to 0.08 3 0.24

locations
ERP implementation taking too long 0.06 2 0.12
TOTAL 1 2.64
36

37

CPM
WorldCall PTCL Wateen Wi-Tribe
Weigh Ratin Scor Ratin Scor Ratin Scor Ratin Scor

t g e g e g e g e
Market 0.12 2 0.24 1 0.12 1 0.12 2 0.24

Share
Physical 0.08 3 0.24 4 0.32 2 0.16 3 0.24
Advertising 0.11 1 0.11 4 0.44 3 0.33 1 0.11
Pricing 0.13 2 0.26 2 0.26 2 0.26 3 0.39
Connection 0.03 4 0.12 4 0.12 2 0.06 2 0.06

Speed
Quality 0.09 3 0.27 1 0.09 2 0.27 3 0.27
Mobility 0.08 3 0.24 3 0.24 3 0.24 3 0.24
Goodwill 0.09 3 0.27 4 0.36 3 0.27 2 0.18
Customer 0.12 3 0.36 3 0.36 2 0.36 2 0.24

Care
Financial 0.15 3 0.45 4 0.6 2 0.3 3 0.45

Position
Total 1 2.56 2.99 2.16 2.42
38

SWOT ANALYSIS
STRENGTHS
✔ Technical infrastructure
✔ HFC-cable
✔ Product range
✔ Working in major cities
✔ Reputation
✔ Balanced sales
✔ Reliable wireless broadband
WEAKNESSES
✔ High dependence on Voice segment
✔ Weak marketing
✔ Lacking a proper long-term strategy
✔ Weak brand positioning
✔ Less focus on short-term profitability
✔ Infrastructure varies from location to locations
✔ ERP implementation taking too long
39

OPPORTUNITIES
✔ Demand increased for backhaul network
✔ Cross-sell in major cities
✔ Increased demand for LDI and Broadband
✔ Privatization of government telecom projects
✔ PTA delayed 3G licenses
THREATS
✔ Economy instability
✔ CaTV operators alliance
✔ Threat by WiMax or other 4G technologies
✔ Government policies
✔ Increased consumer churn rate
✔ Heavy Price competition
40

SWOT MATRIX
Strengths – S Weaknesses – W
1. High dependence on
1. Technical Voice segment
infrastructure 2. Weak marketing
2. HFC-cable 3. Lacking a proper
“SWOT 3. Product range
4. Working in major
long-term strategy
4. Weak brand
cities positioning
MATRIX” 5. Reputation
6. Balanced sales
5. Less focus on short-
term profitability
7. Reliable wireless 6. Infrastructure varies
broadband from location to
locations
7. ERP implementation
taking too long
Opportunities – O SO Strategies WO Strategies

1. Demand increased for
backhaul network • Market development • Market Penetration
2. Cross-sell in major of HFC-Cable (S3, and Product
cities O2) Development of Data
3. Increased demand for • Market development services (O5, W1)
LDI and Broadband of Wireless • Brand development
4. Privatization of Broadband (S7, O3) for broadband
government telecom • Offer more B2B segment (O3, W4)
projects Data services (S1, • Develop uniformity
5. PTA delayed 3G O1) across infrastructure
licenses (O1, W6)
Threats – T ST Strategies WT Strategies

1. Economy instability
2. CaTV operators alliance • Market development • Highly Differentiated
3. Threat by WiMax or of HFC-Cable (S3, Products (T6, W2)
other 4G technologies T2) • Quickly integrate ERP
4. Government policies • Diversification of to analyze churn-rate
5. Increased consumer Products (S3, T1) (T6, W7)
churn rate • Differentiation • Hold & Maintain (T1,
6. Heavy Price strategy for wireless W5)
competition broadband (S7, T6)
41

SPACE MATRIX
The SPACE matrix is a management tool used to analyze a company.
It is used to determine what type of a strategy a company should
undertake. The Strategic Position & Action Evaluation matrix or
short a SPACE matrix is a strategic management tool that focuses on
strategy formulation especially as related to the competitive position of
an organization.
The SPACE matrix can be used as a basis for other analyses, such as
the SWOT analysis, BCG matrix model, industry analysis, or
assessing strategic alternatives (IE matrix).
SPACE MATRIX STRATEGIC MANAGEMENT METHOD
How do we get to the possible outcomes shown in the SPACE matrix?
The SPACE Matrix analysis functions upon two internal and two
external strategic dimensions in order to determine the organization's
strategic posture in the industry. The SPACE matrix is based on four
areas of analysis.
INTERNAL STRATEGIC DIMENSIONS:
• Financial strength (FS)
• Competitive advantage (CA)
EXTERNAL STRATEGIC DIMENSIONS:
• Environmental stability (ES)
• Industry strength (IS)
42

There are many SPACE matrix factors under the internal
strategic dimension. These factors analyze a business internal
strategic position.
The following are a few model technical assumptions:
- The CA and IS values in the SPACE matrix are plotted on the X axis.
- CA values can range from -1 to -6.
- IS values can take +1 to +6
- The FS and ES dimensions of the model are plotted on the Y axis.
- ES values can be between -1 and -6.
- FS values range from +1 to +6.
The SPACE matrix calculates the importance of each of these
dimensions and places them on a Cartesian graph with X and Y
coordinates.
WORLDCALL SPACE MATRIX
Financial Strengths +1 (worst) to +6 (best)
Return on investment +4
Liquidity +5
Working capital +5
Cash flow +4
Average 4.5
Environment Stability -1 (best) to -6 (worst)

Technological changes -2
Prices range of competing products -2
Barriers to entry -4
Competitive pressure -2
Average -2.5
43

Industry Strengths +1 (worst) to +6 (best)
Growth potential +5
Financial stability +3
Resource utilization +2
Ease of entry in market +4
Average 3.5
Competitive Advantage -1 (best) to -6 (worst)

Market share -2
Product quality -1
Customer loyalty -2
Control over suppliers -3
Average -2
Now add financial strength and environmental stability = +4.5-2.5 = 2

Add industry strength and competitive advantage = +3.5-2
=1.5
To explain how the SPACE matrix works, it is best to reverse-engineer

it. First, let's take a look at what the outcome of a SPACE matrix
analysis can be, take a look at the picture below. The SPACE matrix is
broken down to four quadrants where each quadrant suggests a
different type or a nature of a strategy:
○ Aggressive
○ Conservative
○ Defensive
○ Competitive
44

This particular SPACE matrix tells us that WorldCall is using
an aggressive strategy. WorldCall has a strong competitive position it
the market with rapid growth. It needs to use its internal strengths to
develop a market penetration and market development strategy. This
can include product development, integration with other companies,
acquisition of competitors, and so on.
45

BCG MATRIX
STA
H
rw
igh
oth
46

IE MATRIX
The Internal-External (IE) matrix is another strategic management
tool used to analyze working conditions and strategic position of a
business. The Internal External Matrix or short IE matrix is based on an
analysis of internal and external business factors which are combined
into one suggestive model.
The IE matrix is a continuation of the EFE matrix and IFE matrix

models.
The IE matrix is based on the following two criteria:
Score from the EFE matrix -- this score is plotted on the y-axis
Score from the IFE matrix -- plotted on the x-axis
The IE matrix works in a way that you plot the total weighted score
from the EFE matrix on the y axis and draw a horizontal line across the
plane. Then you take the score calculated in the IFE matrix, plot it on
the x axis, and draw a vertical line across the plane. The point where
your horizontal line meets your vertical line is the determinant of your
strategy. This point shows the strategy that your company should
follow.
On the x axis of the IE Matrix, an IFE total weighted score of 1.0 to 1.99
represents a weak internal position. A score of 2.0 to 2.99 is
considered average. A score of 3.0 to 4.0 is strong.
On the y axis, an EFE total weighted score of 1.0 to 1.99 is considered

low. A score of 2.0 to 2.99 is medium. A score of 3.0 to 4.0 is high.
47

Worldcall IE Matrix
We calculated IFE matrix for worldcall on the IFE matrix page. The
total weighted score calculated on this page is 2.64 which points at a
company with an average internal strength.
We also calculated the EFE matrix for worldcall on the EFE matrix
page. The total weighted score calculated for the EFE matrix is 2.39
which suggests a slightly less than average ability to respond to
external factors. Now we plot these values on axes in the IE matrix:-
This IE matrix tells us that our company should hold and maintain its
position. The company should pursue strategies focused on increasing
market penetration and product development
48

GRAND STRATEGY MATRIX
RAPID MARKET GROWTH
Any industry whose annual growth in sales exceeds 5% could

be considered to have rapid growth.
WORLDCALL GROWTH RATE
Growth rate = current sales – old sales * 100
Old sales
= 3992978 – 2110041 *100

WEAK STRONG
COMPETITIVE 2110041
COMPETITIVE
POSITION POSITION
= 89.24%
Which means that WORLDCALL located in Quadrant1 of the

grand strategy matrix are in excellent strategic position.
SLOW MARKET GROWTH

49

CORE COMPETENCIES ANALYSIS
The core competences that we have analyzed are
• Strong Dark Fiber

• Largest(hybrid fiber coaxial) HFC/Cable Operator (CATV, IOC,
VoIP/MSAN
Telephony) in Pakistan.
• Premium WLL and LDI operator in Pakistan.
SPECIFIC SPECIALTIES
Worldcall has taken the lead in introducing innovative
telecommunication services in Pakistan:
• "Supervised Payphones" business model in Pakistan which is now
being followed by many other operators – largest fixed line
payphone infrastructure.
• The first company to introduce prepaid calling card services in
the country.
• Worldcall developed the first ever broadband HFC convergence
Infrastructures in Pakistan – the only operator in Pakistan and
one of the few in the region to provide a triple play (CATV,
broadband internet, telephony)
• Worldcall was the first operator in Pakistan to commission a state
of the art next generation network (“NGN”) – covering long
distance & international (“LDI”) inbound and outbound, local loop
(“LL”) / wireless local loop (“WLL”) telephony services. This is a
fully converged architecture enabling wireless solutions and
hybrid fiber coaxial (HFC) telephony.
50

FACTORS INVOLVED IN SUCCESS OF
WORLD CALL (KSF)
The main factors that are involved in success of world call are given
below.
• Customer Service
• Customer oriented
• Technically Expertise
• Quality of Products /services
• Good Infrastructure
CORPORATE CULTURE
As every organization has its own culture, some norms and values,
same like that this organization has its own culture and values , as it is
an customer oriented organization it always focus on how to treat its
valuable customers. WorldCall also encourage the team work instead
of the one man show or the working of one man. They say it is their
duty to serve their shareholders in a very positive way with creating
the positive environment and also developing this positive
environment. They also focus on the training and development of the
employees.
As it is a flexible organization so the employees of WorldCall are

cooperative rather than the competitive and aggressive that’s why
they have strong culture in their organization and they mostly focus on
51

the outcomes that how they can achieve a better result according to
their expectations. There is also a very good and positive relationship
between the management whether it is a lower management or a top
management both are cooperative for each other, as a result of this
relationship even employees can participate in decisions ,there is no
restriction for the lower employees in decision making , so they can
take the consent of any person they want because the team work is
better than the one man show ,you can work so effectively through the
team.
They also focus on training and development of employees and also

encourage innovative working and innovative ideas and they try to
implement the ideas and innovations to bring the change.
• The dress code of WorldCall is same like other good

organizations, employees wear proper formal dresses, but last
day of week is a casual day .employees can wear casual dresses
also in main offices.
• The employees of WorldCall has better access to the top
management as I have told you before in the head of corporate
culture. Before, The accessibility to top management was low but
now it is in hands of Omantel so there is an easy accessibility
towards the higher management and it is better and in favour of
worldcall.
52

STRATEGIES UNDERTAKEN AT:
CORPORATE LEVEL:-
As the other firms have strategies, WorldCall also has strategies at
different levels. In corporate level strategies they basically discuss the
current business status as well as the future of the current business.
Then they decided in meetings, that in which sector they have to add
something and in which sector they want to remove something. They
are mainly concerned with:
• What kind of businesses they want themselves in?

• How they should manage all sectors or businesses?
53

TYPES OF DIVERSIFICATIONS THEY ARE
FOLLOWING
RELATED BUSINESS DIVERSIFICATION (ONLY)

WorldCall mainly focus in Related Business Diversification. As many
good and effective service of WorldCall the broadband service of
WorldCall has good growth and opportunity. In this same line of
business they diversify their business and there diversification is very
much effective for them. They are introducing new and new things in
this same line of business that have so many opportunities now a day
in Pakistan. WorldCall has made its place in the current market by
offering several and unique services. People want now a day’s some
modernized services and WorldCall is properly working to promote
these kinds of services. Some of the services are as follows (Video on
Demand, cable TV, internet over cable). Currently the Company has
several ongoing projects like HFC cable, Point-To-Point corporate
broadband services, VSAT (satellite broadband) and DigitalTV which
are in the different phases of roll out, all aimed at provisioning of
sophisticated data and video services. Reasons for related
diversification:-
• To reduce the risk!!!

• High Compatibility with technical infrastructure!!!!!
• Support some losses in other segments!!
Defensive Strategy
WorldCall in September 2009 completed the divesture of its foreign
subsidiary WorldCall Lanka. They thought that this should be no more
in their business.
54

Forward Integration
Although in a very poor state WorldCall is using Franchising as their
forward integration strategy, however they do not have much control
on their franchises.
Product / Service Portfolio Management

WorldCall has successfully introduced True Video-On-Demand
technology. They have also started WorldCall Wireless Broadband with
EVDO technology in the product portfolio. Another very effective
service was pay phones and in 2009 officially phased out.
Product Development Strategy

The product development strategies are one of the most important
strategies that should be in business if you want to survive in the
market or in the business world. Worldcall is also using product
development strategies as it involves development of telecom services
and products. They have first mover advantage in CDMA2000 based
EVDO wireless broadband. CDMA2000 represents a family of ITU-
approved, IMT-2000 (3G) standards and includes CDMA2000 1X and
CDMA2000 1xEV technologies. They deliver increased network
capacity to meet growing demand for wireless services and high-speed
data services. CDMA(code division multiple access) is the fastest
growing wireless technology and it will continue to grow at a faster
pace than any other technology. It is the platform on which 2G and 3G
advanced services are built.
Market Development Strategy

In market development strategy you have to develop your market,
worldcall has developed its market after making analysis. For example
WorldCall EVDO Wireless Broadband was initially launched in Karachi
followed by Lahore to other major cities including Gujranwala,
Faisalabad, Multan and to inclusively to 50 major cities of Pakistan.
Same is the expansion of Cable TV service to major cities of Pakistan.
55

BUSINESS LEVEL STRATEGIES
WorldCall offers many services under than head of 3 Major Business
Segments
✔ WorldCall Data
✔ WorldCall Voice
✔ WorldCall Entertainment
WorldCall Data (EVDO Wireless Broadband)

WorldCall is following differentiation strategy for WorldCall EVDO
wireless because the size of market is large and the product is
differentiated for its performance and mobility.
WorldCall Voice (LDI Services)

WorldCall is following cost-leadership strategy in LDI because of
intense and dynamic price competition in LDI market
WorldCall Entertainment (Video On Demand)

WorldCall’s relatively new service is using “Focus-Value Strategy”
because the target market is very small and product offers high degree
of control with respect to traditional cable TV.
56

FUNCTIONAL/MANAGEMENT
STRATEGIES
HRM
The HRM is well managed with complete processes of recruiting,
incentives, employee feedback, human capital retention and problem
management. Moreover the HR strategies are friendly or up to the
accordance, as the employee’s opinion have value, and providing
suitable working environment for the workers, to give them feel of
ease one day in a week is set for the casual dressing, so the HR
department is doing its work in a good manner.
ADMINISTRATION
The administration department plays vital role in record keeping and
smooth working of files and MIS systems. It is a back bone for the
company in decision making and other efficient working of other
departments. The record keeping process is one of the very important
and is being done in an appropriate manner. The files of different
projects, after the completion are being collected on a centralized
system and rechecked & maintained by the authorized person timely.
DECISION MAKING
Decision Making is now more decentralized as now there is a Regime of
Omantel.
57

QUALITY CHECKING DEPARTMENT
WorldCall has an active quality assurance department but to the
extent of quality assurance and maintenance. WorldCall quality
assurance dept. does believe in “prevention instead of correction”.
However the company still need to improve and there is space to
provide more qualitative services with their quality checking
department. As the company is also facing the threats and quality is
also one of them. But we cannot say that they are providing services at
poor stage, yet there is always room for improvement.
MOTIVATION & INCENTIVE TECHNIQUES:

When HELLO calling cards were at their boom stage WorldCall receive
3 bonuses in a year. On the other hand good HR strategies such as
handsome salary packages incentives provided in case of target
achievement and other appreciation activities are done to keep the
employees motivated.
58

MARKET ANALYSIS
Telecom Sectors according to PTA :
59

SEGMENTS AND TARGET MARKET
WORLDCALL’S TARGET MARKET
60

7P’S OF MARKETING
PRODUCTS/SERVICES
WLL - Wireless Local Loop:- WorldCall owns premium spectrum for
Wireless Local Loop (WLL) in all 14 telecom regions in the country
Telephony and Data services are being offered using wireless CDMA
technology
• Samsung is technology partner / vendor for latest CDMA 2000

1x solution for Phases I & II
• Key technology partner for terminal equipment is LG Service
launched from Lahore – June 2005
• EV-DO (Evolution Data Optimized – data rate upto 2.4 Mbps)
launched in selected areas – July 2006
• HUAWEI Technologies is the vendor for Phase III rollout, which
includes Karachi (the largest metropolitan) & Hyderabad
Current operations in over 40 cities of Pakistan:
Lahore, Gujrat, Kharian, Sheikhupura, Sargodha, Sialkot, Gujranwala,
Multan, Bahawalpur, Peshawar, Kasur, Faisalabad, Hyderabad,
Joharabad, Sukkur, Wazirabad, Lalamusa, Jhelum, Dinga, Mandi
Bahauddin, Rahim Yar Khan, Sahiwal, Bahawalnagar, Vehari, Okara,
Khanewal, Raiwind, Muridke, Khushab, Narowal, Pakpattan, Kamoke,
Muzaffargarh, Jalalpur, Jhang, Mardan, Burewala, Daska, Mianwali,
Leiah, Hafizabad.
High speed data service EV-DO - Wireless Broadband:- Launched

in June 2006. 1x Evolution-Data Optimized (EV-DO or EVDO), is the
wireless radio broadband data standard taken up by various CDMA
service providers internationally. WorldCall’s service provides data
rates upto 2.4 Mbps.
61

Pay Phone:- The largest fixed line payphone operator in Pakistan
Introduced the highly successful ‘Supervised Payphone’ concept in
Pakistan Technology:
• Smart card based wireless payphones

• CDMA 2000 1x based wireless payphones Operating in both
‘Supervised’ and ‘Standalone’ segments WLL payphones have
only recently been introduced and are cheaper and faster to
deploy Extensive distribution network Highly trained sales and
maintenance teams Positioning to be market leader in the overall
fixed and wireless payphones market
HFC (Hybrid Fiber Coaxial) – Broadband:- WorldCall has deployed
Hybrid Fiber Coaxial (HFC) network in Karachi and Lahore. WorldCall
provides customers with the ability to lease dark fiber for high-speed,
dedicated fiber optic networks or offers availability of cable ducts for
businesses to have their own network. Fiber optic networks are
pathways installed in conduits underground or on utility poles. Users of
Dark Fiber choose the electronic equipment they wish to use and
control their own light signal. This gives Dark Fiber several distinct
advantages over traditional telecommunications.
62

Key Features:
• 100% buried fiber and exclusive owned Right of Ways for Fiber
Ducts
• The most advanced quality Poly / Ethylene pipes/duct
• Corning SMF-28e (enhanced) version fiber conforming to industry
standards including ITU-T G.652 (Categories A, B, C & D), IEC
60793-2-50 (type B 1.1 & 1.3) and TIA/EIA-492 CAAB fiber
• Flexible networks operating throughout the Single Mode fiber
operating window (1300 nm – 1650 nm)
• 24x7 Vigilance and Emergency Response teams for all fiber
routes
• The only Triple Play network provider conforming to ISO
Standards
WorldCall Cable Broadband:-
• Portability & Mobility

• Plug & Play
• No power required
• Unlimited downloads
• Unlimited express upload & download
• Always on
• Does not need telephone line
• Economical packages
WorldCall Digital TV:-
• Superior picture quality

• Crisp and clear stereo sound
• 60+ channels
• On-screen channel guide
WorldCall Cable TV:-
• Drama, thriller, action, romance, news & documentaries
63

• 80+ analogue channels
• Satellite & in-house channels
• Latest movies
WorldCall Video on Demand:-
WorldCall is the first to launch True VOD, providing a collection of

movies and music over the CATV network in digital quality to end-users
to choose from their homes. VOD service is ahead of pay-per-view
service by giving rewind/fast-forward/pause capability to the viewer.
• A cinematic addition to your on-screen entertainment
• Absolute control with play-back options
• 600+ hours of uninterrupted fun and excitement
LDI - Long Distance International:-
WorldCall has acquired licenses from Pakistan Telecommunication

Authority (PTA) for Long Distance & International (LDI) and Wireless
Local Loop services (WLL). Long Distance & International (LDI)
• WorldCall was the first company to start LDI services – November

2004
• WorldCall provides cost / price effective, quality voice and data
solutions for nationwide & international markets catering for both
the wholesale and retail segments, tailored to their individual
requirements
• Under the LDI license, the services that can be offered include:
○ International Calls Origination and Termination
○ Nationwide (NWD) Calls Origination and Termination
○ Data & Value-added services like Corporate Solutions, IP
telephony, VPN’s etc.
• WorldCall has deployed state-of-the-art network based on IP
technology and NGN (Next Generation Network) architecture with
equipment from reputed names like Cisco sytems, Siemens and
Nuera.
64

• Future proof investment: nationwide long haul infrastructure and
access
PRICING
WorldCall is using Cost-Based approach for pricing in its all business
units for all products and services. This approach is most commonly
used in a competitive telecom industry. Worldcall Pricing strategy
depends upon these factors like:
• Degree of differentiation in product/service offered

• Intensity of the competition
• At the stage in which a product is in Product Life Cycle
Premium pricing:-
Worldcall charges premiere pricing because they are using

differentiation strategy in all of its business units, but not very high
prices. They use this strategy mainly for new products/services on the
basis of quality differentiation. When a product is new in the market or
competition is low.
EG:- WORLDCALL VIDEO-ON-DEMAND
Competitive pricings:-
In competitive telecom industry customer switching rates are high
worldcall is using competitive pricing strategy in its new worldcall
broadband wireless evdo and worldcall wireless to keep up with the
competition.
Charges:-
Activation Charges: Rs 1,299

Package Price
256 kbps Rs 1200
512 kbps Rs 1800
1 Mbps Rs 2500
65

DETAILS OF PACKAGE PRICING
Cable Broadband
Digital Cable TV
66

Telephone
67

68

Video On Demand
Cable TV Packages
69

70

PLACE / DISTRIBUTION
Extensive nationwide distribution network positioned to launch new
products as well as service existing ones
– 50 Offices
– 220 Cities
– 59,000 Points-of-sale
• Existing relationships with third party distributors to enhance

• penetration
• Ability to carry third party products – immense future potential
• Customer Service Centers
• World Call has customer care centers in major cities. Some of
These centers have the attractive exterior.
• Franchises
• Franchises are in the Poor conditions and World Call have no
control on franchises
PROMOTION
World call is not using intensive promotion strategy they are cutting
cost through the low advertising these
71

PEOPLE
An essential ingredient to any service provision is the use of
appropriate staff and people. Recruiting the right staff and training
them appropriately in the delivery of their service is essential if the
organization wants to obtain a form of competitive advantage.
Consumers make judgments and deliver perceptions of the service
based on the employees they interact with. Staff should have the
appropriate interpersonal skills, aptititude, and service knowledge to
provide the service that consumers are paying for. In fact these are the
people who make the differences among organizations.
In case of World Call, People includes
✔ Sales Representatives
✔ Staff of Customer Care Center
✔ Recovery Team
• For Cable TV and HFC Broadband
72

PROCESSES
• The Process to get Wireless Broadband
✔ Customer have to request to a franchise/customer care
• From their customer knows about all Terms &
Conditions
• The EVDO device remains property of WorldCall
✔ Fills the form
✔ Copy of NIC must be attach
✔ Make payment
✔ Receives the device along with manual & accessories
• The Process of changing package of EVDO
73

PHYSICAL EVIDENCE
Customer Care
Most WC Customer Care attract exterior in order to attract the

customer and as a physical evidence. Other than this the offices of WC
are no less lavish enough to give a feel of Hi-fi Brand to the customers
visiting. The Head office is also well guarded in reference to security
and are having heavy protocols for the executive staff.
74

MARKET SHARE
MARKET SHARE IN LDI
WorldCall share is 1,227 out 21,983 Million
75

BROADBAND SHARE
Market share of Broadband technologies, WorldCall owns most of HFC
share, with strong share in EVDO segment.
76

WLL MARKET SHARE IN SUBSCRIPTION
Subscriber Share (WorldCall has 2nd Largest Share in WLL

Subscription):-
77

COMPETITIVE ANALYSIS
Entertainment
Voice Data
& Media
LDI National (DialUp/Broadba

nd)
WorldCall
PTCL
NAYAtel
Wateen
Mobilink Infinity + LinkDotNet [Orascom]
Burraq + Wi-Tribe
Zong
Telenor
78

COMPETITORS DETAIL
Burraq & Wi-tribe
Qtel entered into a regional broadband wireless joint venture with

ATCO in march 2007, which evolved as a leading Middle Eastern
conglomerate and one of the world's best leading wireless broadband
services providers. This joint venture, floated their brand wi-tribe in the
starting of 2008 which is form to create demand and establish WiMAX
networks in the Middle East, Asia and Africa. Qtel had 78% stake in
this overall venture.
Wi-tribe intends to leverage Qtel's regional operating experience and

multinational footprint, roll out excellent quality networks and services
in targeted areas, and develop a strong platform for distribution of
broadband content.
In Jordan, wi-tribe has acquired a license in an auction and is getting

ready to launch in 2008. The Jordan market has a high potential for the
wireless broadband service and wi-tribe is well positioned to capture
the growth in this market. In Pakistan, wi-tribe acquired a 75% stake in
Burraq Telecom which has licenses for WiMAX as well as international
long distance. Pakistan is an exciting market for broadband with very
low penetration rates and huge potential for growth.
Burraq Telecom Limited, founded in 2004 is an established operator

licensed to offer a full range of telecommunications services across
Pakistan, including long distance international and wireless local loop.
The company also has associated spectrum at different frequencies.
Burraq has recently completed a limited rollout of its Broadband
Wireless Access (BWA) network in all of Pakistan’s 14 regions.
79

Mobilink Infinity & LINKDotNET:-
LINKdotNET, the leading Internet Service and Solutions

Provider, is a subsidiary of Orascom Telecom Holding Company,
the largest integrated telecommunications services provider in the
region.
Mobilink GSM, a subsidiary of Orascom Telecom, started its

operations in 1994. Newest to the rank of life-changing innovative
technologies is Mobilink Infinity, the revolutionary next generation
wireless broadband network. Words from Moblink”And it gives us great
joy to welcome you to experience Mobilink’s evolution into a total
telecommunications solutions provider. This holds great prospects for
all our valued customers in terms of value-added services, Internet
access, next generation of telephony through Voice over IP and
exciting cutting-edge services.”
PTCL & Ufone:-
80

Pakistan Telecommunication Corporation Limited (PTCL) which started
to operate in January 2001 under the brand name ‘Ufone’ was
wholly owned by Pakistan Telecom Mobile Limited (PTML). After this
privatization Ufone became a part of the Emirates Telecommunication
Corporation Group (Etisalat) in 2006. PTCL is Direct Competitor with
WorldCall in Ptcl EVO Wireless Broadband, Ptcl SmartTV, Ptcl vFone,
Ptcl Broadband and LDI. In fact the real cut to cut competition
between Worldcall and PTCL is witnessed since many years.
Wateen & Warid:-
Wateen Telecom is a Pakistani telecommunication company based

in Lahore, Pakistan and is a sister concern of Warid Telecom.
Wateen Telecom is the Abu Dhabi Group's latest communication

investment in Pakistan. With the collaboration of Motorola, they plan
on deploying a WiMax country-wide network across Pakistan. After the
successful launch of Warid Telecom in Pakistan, which has a subscriber
base of over 10 million customers in 145 cities, Wateen Telecom has
been set up to become the leading "Carrier's Carrier" providing
services based on quality, reliability and affordability in the
communication and media sector. Wateen is committed to bring Next
Generation services to your doorstep... today.
81

NayaTel:- (IN ISLAMABAD ONLY)
NayaTel (Pvt) Ltd. (NTL) is a sister concern of Micronet

Broadband (Pvt) Ltd. (MBL), www.dsl.net.pk the premier and
leading DSL broadband service provider in Islamabad and Rawalpindi.
Leveraging its rich expertise and experience of broadband, MBL team
conceived the idea of a most modern telecom network which can take
care of ever growing telecommunication needs of customers and have
the capability to cater for telecommunication requirements of at least
next three decades. The idea was transformed into reality when NTL
launched South Asia's first fiber to the home (FTTH) in Islamabad
in September 2006. This real triple play project is unique in its nature
as it serves complex networking needs of mission critical businesses
yet so simple that it has become a symbol of prestige for quality
conscious home users. Covering over 90% areas of Islamabad and
business areas of Rawalpindi Cantonment, Nayatel's network offers
ultra broadband Internet, modern telephony and digital video services
to business and home users.
Fiber-to-the-User is 21st century architecture for delivering multiple

services (Voice, Video and Data) to the customer premises. This
technology involves laying down fiber optic cable from the carrier's
facilities to the customer premises. With the ever-decreasing price of
Fiber Optic and the rising cost of copper, use of copper cables
worldwide is on the decrease. Fiber Optic cables have near-unlimited
capacity for carrying data at speeds not supported by Copper media.
82

MAIN MARKETING STRATEGIES AND MARKET
POSITIONING
These are the strategies that World call is using:
• Product Development
• Market Development
• Market Penetration (recently not)
• Decent launching and Advertisement
• Quality And Innovative Products
• Horizontal integration
• Forward Integration
83

FINANCIAL ANALYSIS (30 JUNE 2009)
KEY PERFORMANCE INDICATORS
Net Profit After Tax (NPAT) (226,976)
Depreciation & Amortization* 596,992
RATIOS
Gross Profit Margin % (Gross Profit ÷ Net Sales) 16.18%
Operating Profit Margin % (Net Operating Profit ÷ Net Sales) 1.31%
Net Profit Margin % (NPAT ÷ Net Sales) -5.69%
Debt Coverage (Times) [ (NPAT + Depr.) ÷ (CMLTD + Interest) ] 0.65
Interest Coverage (Times) (Net Operating Profit ÷ Interest Exp) 0.31
Current Ratio (Current Assets ÷ Current Liabilities) 0.91 : 1
Debt To Equity Ratio [ LTD ÷ (LTD + Equity) ] * 100 26 : 74
Inventory Days (Inventory ÷ COGS) x 365 18
0.05
Payable Turnover (Sales ÷ Trade Creditors) 1.44
Receivable Turnover (Sales ÷ Trade Debtors) 2.61
Return On Equity % (NPAT ÷ Net Worth ) -2.04%
Return On Assets % (NPAT ÷ Total Assets) -1.03%
Receivable (Days)
140
(Trade Debts ÷ Net Sales) x 365
Payable (Days)
254
(Trade Creditors ÷ Net Sales) x 365
Cash Flow Statement
Cash Flow from Operating Activities 97,440
Cash Flow from Investing Activities (319,248)
Cash Flow from Financiang Activities 42,860
84

LIQUIDITY RATIOS
Current Ratio = Current assets/current liabilities
3,629,295/3,970,047
= 0.91:1
Quick ratio = current assets-inventory/current liabilities
=3,629,295-168,907/3,970,047
=0.87:1
Cash ratio = cash/current liabilities
=278,552/3,970,047
=0.07
EPS
Loss per share= (0.26)
TURNOVER RATIOS
Fixed asset turnover= Sales /net fixed assets
=3,989,910/18,478,991
=0.21
Total assets turnover = sales/total assets
=3,989,910/22,108,286
=0.18
85

Payable turnover= sales/ trade creditors
= 1.44
Receivable turnover= sales/ trade debtors
=2.61
PROFITABILITY RATIOS:-
Net Profit Margin = Net Income / Sales
=-5.69%
Gross Profit Margin = Gross Profit / Sales
=16.18%
ROI:-
Return on Assets = Net Income / Total Assets
=-1.03%
Return on Equity = Net Profit after tax/ Net Worth
=-2.04%
Debt-To-Equity Ratio
=26:74
86

Position on June 2009
The Company showed the revenue of 3,990 million for the period which
is really doubled the revenue of the same period last year. This rise in
revenue was the outcome of the contribution made by the higher
volumes of international .
The services launch in new areas also led to important and prominent
rise in revenue as compare to last period. GP ratio however decline
from 26.48% to 16.18% as direct cost has an increase of 116%.
The rise in revenue was not only because of launching new services,
the company also reduced its operating expenses to 30 million as
compare to last period. If the analysis for the performance of quarter
ended 30june 2009 is made separately, it would be clear that company
was able to record the operating profit of Rs. 90.316 million.
As a result, the company had to face an impairment loss of Rs. 168

million and this loss resulted in net loss after tax of Rs 227 million.
(Source: Internet)
87

OTHER STRATEGIES
RESEARCH & DEVELOPMENT
Worldcall has an in–house IT department but do not have a proper R&D
department because its suppliers are more indulged in the
technological changes taking place in the industry.
PRODUCTION:
Worldcall is not physically producing any product.
PROCUREMENT:-
The process of procurement is not very simple. It is a lengthy process,
while internal hiring is given first preference but the interview process
is not at all exempt. However recruiting is quite fair. The candidates
are well analyzed and assessed in the overall process. Usually Fresh
candidates are often not preferred but exceptions are always there.
88

PROBLEM SECTION
MAIN PROBLEMS ACCORDING TO

MANAGEMENT:-
✔ Omantel has totally changed system of management for the
company.
✔ Reducing of advertisements expense due to pressure of cost
cutting.
✔ Same reasons for not having large Marketing staff.
✔ Omantel emphasizing on ERP
✔ The delay in process of initiating an ERP.
✔ ERP is time-consuming process.
✔ New Mangers are involved into current issues of the company.
✔ Previously they were multiple companies now all of the accounts
have be reorganized and similar accounts have to be merged.
89

MAIN PROBLEMS ACCORDING TO OUR
ANALYSIS:-
✔ Giving unusual importance to LDI from very beginning.
✔ Branding and Positioning not done through proper process.
✔ Very weak franchising strategies.
✔ Franchises strength missing.
✔ Heavily lacking Long term strategies.
✔ We observe lack of coordination between different Departments.
✔ Lack of use of BCG MATRIX for their product portfolio.
✔ Market Penetration was earlier used in Voice segment but now
being avoided.
✔ Complains by customers due to conflict in network capacity and
sale.
✔ Loosing potential buyers due to less Advertising.
✔ Less Promotional strategies and sales staff.
✔ No ERP, inappropriate CRM and Professional Accounting Software.
✔ Omantel is not involving low level staff in business matters.
✔ Movement from a traditional system to a fast pace competitive
system.
90

STRATEGIC ALTERNATIVES:-
SOLUTIONS TO SOLVE THE PROBLEMS:-
✔ The change process must be moved top to down gradually by
Omantel.
✔ Every level of Management must be involved in the change
process.
✔ Delays in ERP (SAP) must be overcome by WC, by diverting their
focus on ERP implementation on preference basis.
✔ Reengineering is preferable solution to WC over all problems.
✔ Using of BCG MATRIX is very important for WC to understand
their DOG and STAR products.
✔ Branding and positioning must be revised for many segments.
✔ Customer complaints and customer churn rate can be reduced by
sensible installing of networks and selling.
✔ Co-ordination between many Departments must be improved as
soon as possible.
✔ Omantel is coming up with Fresh Long term plans which are a
good sign; well it is highly needed and must be implemented with
unanimous agreement.
✔ The avoidance of market penetration will not benefit WC in long
run, thus WC must behave more Competitive.
✔ WC must buy professional software either relaying on Microsoft
Office.
✔ First of all, franchising strength must be increased all over the
country, then Franchises must be made more modern and must
be made more productive in reference to services and sale.
✔ Omantel must refrain from such act which creates a perception of
job insecurity between the employees.
✔ WC having very strong physical network, the only need is timely
maintenance and proper resource utilization.
91

IMPLEMENTATION PLAN
The implementation plan is discussed and suggested according to
different segments of the company:-
Overall Segment:-
Voice Segment:-
Data Segment:-
92

Entertainment Segment:-
93

CONCLUSION
WorldCall is a competent telecom company in Pakistan with huge

infrastructure and backed by strong parent company Omantel. It has
strong potential to compete and grow as a leading diverse telecom
company. We have gone through thorough analysis of WorldCall and
studied every aspect of the company, we have recommended
strategies, solutions to major problems faced by WorldCall. We also
provided three year implementation plan that represent a clear growth
strategy for WorldCall.
94

REFERENCES:-
PTA Reports
http://www.worldcall.net.pk
http://www.worldcall.com.pk
http://pakng.wordpress.com/pakistan-telecom-laws/
http://telecompk.net/
http://telecompk.net/2009/08/20/swot-analysis-pakistan-telecom-
industry/
http://goutham.wordpress.com/2008/02/07/us-telecom-industry-
analysis/
95


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BUSINESS POLICY AND STRATEGY – ROJECT REPORT

We are very thankful to Allah Almighty who

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

“THIS REPORT IS DEDICATED TO ALL

We like to dedicate this report to all

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

The company’s word:-

“WorldCall launched its business in June 1996 with payphone

WorldCall Telecom Ltd. became an associate company of Omantel

Oman Telecommunications Company (Omantel) is the largest

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

In 1996 First Capital Securities Corporation commenced to incubate

In 1998 prepaid calling cards were launched by WorldCall Phonecards

In 2000 WorldCall in Multimedia segment established a Hybrid Fiber

In 2003 WC launched a state of the art HFC network operation in

WC started service from Lahore in June 2005 which is now available in

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

In April 2008, Omantel had acquired 65 percent shares of

Focus of rollout will principally target broadband segment with

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

LOCATION OF HEAD OFFICE

67-C III, Gulberg III, Lahore, Pakistan

Tel: (92 42) 5872633-38

Fax: (92 42) 5755231

WIRELESS LOCAL LOOP MAIN OFFICE

1- Aibak Block, New Garden Town, Lahore

(92 42) 8464646

WC Net Helpline 109

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

LEGAL STATUS AND NATURE OF BUSINESS

WorldCall Telecom Limited

WorldCall Telecom Limited ("the Company") is a public limited

WorldCall Telecom Ltd. group's principal activity is to provide

The Company commenced its operations on 01 December 2004 and is

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

Before the acquisition and restructuring of WorldCall, the WorldCall

• Worldcall Communications Limited

• Worldcall Phonecards Limited

• Worldcall Multimedia Limited

• Worldcall Broadband Limited

Omantel decided to consolidate WorldCall into a single company and

Worldcall Telecommunications Lanka (Pvt.) Limited is a foreign

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

CEO of the Company

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

• Dr. Mohammed Ali Mohammed Al-Wohaibi (Chairman)

• Babar Ali Syed (CEO)

• Talal Said Marhoon Al-Mamari

• Saleem Jawad Jaffer Al-Khabori

• Sameer Hamed Nasser Al-Siyabi

• Abdullah Zahran Abdullah Al-Hinai

• Sulieman Ahmed Said Al-Hoqani

• Asadullah Khawaja (Nominee of Arif Habib Securities Ltd.)

BUSINESS POLICY AND STRATEGY – ROJECT REPORT

• Create new standards of product offering in basic and value