internship report mobilink final

Internship

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CHAPTER 1

INTRODUCTION OF STUDY

1.1 BACKGROUND OF STUDY

As part of the academic requirement for completing the program of Master of

Business Administration, students are required to under go two months of internship

with an organization. The selection of the organization is based on the choice of the

student. The institute then requires an internship report based on practical learning of

the student through that period of time.

This report is about Mobilink GSM (PMCL), a subsidiary of Orascom Telecom,

started its operations 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 30 million and growing

1.2 PURPOSE OF STUDY

a) The main purpose of the study is to gather relevant information to compile

internship report on Mobilink GSM (PMCL) Regional office North-2 and as a

whole network of Mobilink.

b) Another purpose of this Internship program is to learn and use the

management techniques acquired during the course, and find out the possible

solution of management problems faced by the organization.

c) To observe, analyze and interpret the relevant data in a useful manner.

d) To work practically in an organization and to develop interpersonal

communication.

Mobilink GSM, An Orascom Telecom Company 1

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1.3 SCOPE OF STUDY

As an internee my association with this company was being a part of the Sales

Operations Department. It was a great experience for me and it helped me in realizing

where my potential lies. What I learnt at Mobilink over the weeks was how to get

along with the people that I have to work with everyday, building confidence and

improving my skills. This internship has also prepared me for my future career in

Sales, Finance and Customer Relations so this internship has helped me a great deal.

The experience has taught me responsibility, teamwork and how to handle problems

occurring. Even though the nature of work was quite basic as an internee,

nevertheless I got to see what practical life is. This internship overall has been a great

experience. This report gives a profile of Mobilink and an insight into the Sales

Operation department where I was assigned to work. This report also reflects my

learning and experiences at Mobilink along with my responsibilities and the tasks

that I performed. Last part of the report consists of some recommendations and

suggestions that I have given.

1.4 LIMITATIONS OF STUDY

No matter how efficiently a study is conducted, it cannot be perfect in all respects.

This study was conducted in accordance with the objectives of the report completion.

The study may not include broad explanations of facts and figures due to the nature of

the research.

One of the major limitations while carrying out this research was the lack of

cooperation on the part of the management of Mobilink in providing the data

regarding the company and its policies.

Secondly, the limitation which affects the study is the restriction on mentioning every

fact of the company due to the problem of secrecy. In addition, the availability of


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required data was a problem as access to all the documents and files are limited to the

employees only.

Finally, the problem of short time period also makes the analysis restricted as one

cannot properly understand and thus analyze all the operations of any company in a

very short time of eight weeks.

1.5 RESEARCH METHODOLOGY

The methodology reported for collection of data is primary as well as secondary data.

Sources of my Primary data are Personal Observation and Interviews of Personnel.

And sources of my Secondary data are; previous internship reports, annual reports of

the organization, books, journals and Internet.

1.6 SCHEME OF STUDY

The report is arranged in the following sequence:

PART I

This is the introductory part of the report and has one chapter.

Chapter 1:

This is an introductory chapter which describes the background, purpose, scope,

methodology and scheme of the report. Different limitations faced in preparing the

report are also discussed.

PART II

This Part includes the review of Mobilink GSM (PMCL), a subsidiary of Orascom

Telecom. This Part is comprised of two chapters.

Chapter 2:


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This chapter covers a historical background and development of Telecom sector in

Pakistan. It also tells about the Pakistan Telecom Laws and the role of Telecom sector

in economic development of Pakistan. Management structure of Mobilink, different

services offered by Mobilink and departmentalization is discussed.

Chapter 3:

This is a detail chapter about my internship at Mobilink GSM, An Orascom Telecom.

In this chapter I have given a brief introduction about North-2 region. I have focused

on introduction of North-2, different franchises operating in the area, and services

offered at regional office are discussed in detail in this chapter.

PART III

This Part is about the analysis of Mobilink GSM, An Orascom Telecom and has one

chapter.

Chapter 4:

In this chapter I have done SWOT and Financial analysis of Mobilink GSM, An

Orascom Telecom. I have explained Strengths, Weaknesses, Opportunities and

Threats for Mobilink. I have carried out environmental analysis of Mobilink with the

help of industry & market, competitors and technology

PART IV

This is the final and conclusive part of the report and contains one chapter.

Chapter 5:

This is the last chapter of the report. I have mentioned different problems faced by

Mobilink GSM, An Orascom Telecom. After pointing out these problems I have

given some general recommendations.


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CHAPTER 2

INTRODUCTION OF MOBILINK, AN ORASCOM TELECOM

2.1 PAKISTAN TELECOM LAWS

At the time of independence the laws in force in Pakistan relating to

Telecommunication were “The Telegraph Act, 1885 (XIII of 1885)” and “The

Wireless Telegraphy Act, 1933 (VII of 1933)”. These were extended and adapted in

Pakistan through “The Adaptation of Central Acts and Ordinances Order, 1949″

(G.G.O. No. 4 of 1949) and Central Laws (Statute Reforms) Ordinance 1960 (XXI

of 1960).

The Act of 1885 was the primary governing telecommunication statute. There was a

joint Director General of Posts, Telegraph & Telephone under the Act of 1885. The

Act granted exclusive privilege to Government (Posts, Telegraph & Telephone [PTT]

Department to establish, maintain, working, licencing, regulating the Telegraph

within or any part of Pakistan. The government was the governing and controlling

authority of telecom sector in Pakistan. Likewise, The Wireless Telegraphy Act was

enacted in order to regulate the possession of wireless telegraph apparatus.

In 1962 Posts and Telegraph (Amendment) Act, 1962 (V of 1962) was enacted

which amended Telegraph Act, 1885, The Post Office Act, 1898 and The Wireless

Telegraphy Act, 1933. The purpose of the Amending Act was to split up the Postal

Department and the Telegraph and Telephone Department. The PTT Department


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slumbered for about 30 years with no active, substantial and innovative development

in telecom sector.

The arena of development, innovation and liberalization starts from 1990-1991. By

1991 the scenario changes, The Pakistan Telecommunication Corporation Act,

1991 (Act XVIII of 1991) was promulgated which created the independent statutory

corporation named “Pakistan Telecommunication Corporation (PTC)” and Telegraph

& Telephone Department was merged into PTC. The Corporation with perpetual

succession took over all the assets and liabilities of the PTT Department. In pursuance

to government competitive and liberalization policy in relation to telecom opened

field to private sector and PTC started out-sourcing few of its services i.e card

payphones services and pre paid calling card operations to private companies.

Although in the Act of 1991 there was no regulator in its true sense but attributes of

regulator, to some extent, were existent in PTC. The PTC was responsible in the field

of telecommunication for development, research, improvement in quality, advice to

government and determination of tariff subject to approval of government, maintain

liaison with foreign government and other obligations as any regulator performs.

In 1994 in order to further liberalize and open the telecom industry and to transfer the

telecommunication services to private sector and the matters connected thereto the

Presidential Ordinance “Telecommunication Ordinance, 1994 (Ordinance LI of

1994)” was promulgated on 13th July 1994. To promote, maintain fair competition

and regulate the telecom industry and telecom services the regulatory bodies “The

Pakistan Telecommunication Authority (PTA)”, “Frequency Allocation Board

(FAB) and “National Telecommunication Corporation (NTC)” were established.

The independent regulator (PTA) was established for the first time in the history of

telecommunication field in Pakistan under the 1994 Ordinance. The Ordinance also

caused the federal government to incorporate the “Pakistan Telecommunication

Company Limited (PTCL)” under the company ordinance, 1984 which replaced the


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PTC. The Company was provided the exclusivity to provide the basic telephone

services in Pakistan for a period of seven years.

The Ordinance of 1994 repealed The Telegraph Act, 1885 (XIII of 1885) and certain

sections of Pakistan Telecommunication Corporation Act, 1991. The 1994 Ordinance

was to face its constitutional death upon expiry of four month as declared in Article

89 of the Constitution of Islamic Republic of Pakistan 1973, therefore, before its

constitutional expiry life was given to it afresh through another Presidential

Ordinance No. LXXVII of 1994 dated 7th November 1994. This Presidential

Legislation under Article 89 of the Constitution continued until the Ordinance was

presented in the Parliament. The Presidential Ordinances are Ordinances Nos. (XXIII

of 1995 dated 7th March, 1995), (LXIII of 1995 dated 5th July, 1995), (CIII of

1995 dated 30th October, 1995) and Pakistan Telecommunication (Re-

Organization) Ordinance, 1995 (CXV of 1995) dated 27th November, 1995. (XXX

of 1996 dated 7th March, 1996) and Ordinance No. LXXVII of 1996 dated 4th

July, 1996. Every subsequent ordinance repealed the previous one. Finally the

“Pakistan Telecommunication (Re-organization) Act, 1996 (XVII of 1996)” was

passed on 17th October 1996.

Some of the salient features of the Act of 1996 are:

•Creation of Regulator

• Regulation of Telecommunication Industry and Services

• Transfer of telecommunication regime to private sector

• Powers of Federal Government to Issue Policy Directives

• Licensing

• Establishment of PTCL as Company under the Companies Ordinance, 1984


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• Creation of National Telecommunication Corporation (NTC) to provide telecom

services to armed forces, defence projects, federal government, provincial

governments and local authorities etc.

• Formation of Frequency Allocation Board (FAB) with the responsibility of

allotment and management of frequency spectrum. The FAB replaced the Pakistan

Wireless Board established under “The Wireless Telegraphy Act, 1933″ and took

over the function of the Wireless Board.

• Creation of Pakistan Telecommunication Employees Trust with the object of to take

care of the interests of the employees of the Company.

2.1.1 Deregulation Policy 2003

Section 8 of the Act of 1996 empowers the federal government to issue policy

directives and PTA is under obligation to adhere and comply with the directives.

Deregulation implies the removal of control of the government. It also implies the

liberalization of the telecom market.

The exclusivity of Pakistan Telecommunication Company Limited (PTCL) to provide

basic telephone services under the Act of 1996 expired on 31st December 2002. In

July 2003 the Government of Pakistan (GoP) announced “Deregulation Policy for the

Telecommunication Sector”. The Policy sets out the following objectives :

• To increase service choice for customers of telecommunication services at competitive and affordable rates;

• To promote infrastructure development, especially infrastructure that will increase teledensity and the spread of telecommunication services in all market segments.

• To increase private investment in private sector.

• To encourage local telecom manufacturing/service industry.

• Recognizing the challenge to incumbent, PTCL.


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• Accelerate expansion of telecom infrastructure to extend services to un-served and under-served areas.

• Liberalize the telecommunication sector by encouraging fair competition amongst service provider.

• Maintain and effective well defined regulatory regime that is consistent with best international practice.

• Maintain consistency with Pakistan’s IT and Interconnect promotion policy of low prices for bandwidth to make internet access affordable.

• Safeguard Pakistan’s national and security interest.

2.1.2 Mobile Cellular Policy 2004

GoP has announced it Cellular Policy. The policy objectives are:

• Promotion of efficient use of radio spectrum;

• Increased choice for customers of cellular mobile services at competitive and affordable price;

• Private investment in the cellular mobile sector;

• Recognition of the rights and obligations of mobile cellular operators;

• Fair competition amongst mobile and fixed line operators;

• An effective and well defined regulatory regime that is consistent with international best practices;

In pursuance and compliance of the Cellular Policy, the Regulator has issued licenses

to the foreign companies.

2.1.3 Subordinate Legislations

The Act of 1996 sets and provides the broad framework, principles, authority and

functions of the Regulator etc. The Act is silent about how the various telecom

services, tariffs, interconnection guidelines and disputes arising therefrom, role and


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responsibilities of incumbent, accounting standards, reporting and problems faced by

the companies inter are to be regulated and controlled? To meet the various situations,

to control and regulate the services offered by the telecom companies and to create

the fair competition environment, the rules and regulations have been framed by the

Government and the Regulator. The various Rules, Regulations and Guidelines are:

i. Telecommunication Rules 2000

The Rules have been framed under Section 57 of the Pakistan Telecommunication

(Re-Organization) Act, 1996. The Rules provides for the procedure of licencing

procedure, its duration, renewal, modification, transfer, assignment or transfer and

termination. The Rules further provide the Interconnection procedure, basis terms and

conditions of Interconnection Agreement, Procedure in case of failure to agree and

arrive at Interconnection Agreement, Interconnection Charges, and dispute resolution

mechanism. The Rules also narrates the quality of services, exchange of information

between the two operators, Tariff etc.

ii. Access Promotion Contribution Rules 2004:

Means the contribution made by Long Distance International (LDI) operator/licencee

to Local Loop (LL) operator/licencee or Universal Service Fund (USF) created and

maintained by Federal Government. USF has been established for providing access to

telecom services to people living in un-served, underserved, rural and remote areas

etc.

iii. Card Payphone Service Regulations 2004:

These have been issued by PTA under Section 5 (2) (O) of the Act of 1996. The

Regulations deal with terms and condition of the licence, its modification, renewal

and termination, monitoring procedure, accounting & auditing, Inspection by PTA,


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responsibilities, assignment, complaint systems, code of commercial practices,

relationship with customers by the payphone operators and with other operators etc.

iv. Interconnection Dispute Resolution Regulations 2004:

The Regulations provide the comprehensive procedure of dispute resolutions between

the operators .

v. Other Regulations and Guidelines:

The Pakistan Telecommunication Authority has framed and issued certain other

regulations and guidelines. These are:

• Fixed Line Tariff Regulations 2004

• Vehicles Tracking Services Regulation 2004

• Burglar Alarm Services Regulations 2004

• Amateur Radio Services Regulations 2004

• Audio-tex Service Regulations 2004

• Non-voice Communication Network Service Regulations 2004

• Registration of Satellite Service Provider Regulations 2004

• Trunk Radio Services Regulations 2004

• Interconnection Guidelines 2004

• Access Promotion Regulation 2005

• Number Allocation and Administration Regulation 2005

• Mobile Number Portability Regulations 2005

2.2 TELECOM SECTOR OF PAKISTAN


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The telecom sector of Pakistan has seen phenomenal growth over the past few years.

According to the Pakistan Telecommunication Authority (PTA), the total mobile

phone subscribers in 2007 were more than 63 million, a growth of more than 80%

from the previous years. During 2006-07, the mobile sector generated Rs 133 billion

in revenues, an increase of 48% from the previous years and contributed Rs 63 billion

to the national exchequer in terms of taxes and regulatory fees. The telecom sector

contributed 2% to the GDP in 2005-06 and received more than $1.8 billion in foreign

direct investment (FDI) in 2006-07 , which is 35.6% of the total FDI in that period.

Furthermore, the telecom sector has also created over one million in jobs, since its

deregulation, making Pakistan one of the world’s fastest growing telecom markets.

The Pakistan Telecommunication Ordinance 1994 established the primary regulatory

framework for the telecommunication industry including the establishment of an

authority. Thereafter, Telecommunication (Re-Organization) Act no XVII was

promulgated in 1996 that aimed to reorganize the telecom sector of Pakistan. Under

Telecom Reorganization Act 1996, Pakistan Telecommunication Authority (PTA)

was established in January 1997 to regulate the establishment, operation and

maintenance of telecommunication systems, and the provision of telecom services.

The telecom sector was deregulated in 2003.

Currently there are six mobile operators operating in Pakistan, which include

Mobilink, Ufone, Telenor, Warid, Zong and Instaphone. Mobilink started its

operations in 1994 as the first GSM cellular mobile service in Pakistan, started by

Motorola Inc. Later it was sold to Orascom, an Egypt-based multi-national company.

Mobilink is the largest cellular service provider in Pakistan. Another company,

Pakistan Telecommunication Mobile Limited (PTML) is a wholly owned subsidiary

of PTCL, established to operate cellular telephony. The company commenced its

operations, under the brand name of Ufone from Islamabad on January 29 2001.

Later, as a consequence of PTCL’s privatization, 26% of its shares were acquired by


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Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the

management of Ufone had also been handed over to Etisalat.

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

Asia. Telenor Pakistan launched its operations in March 2005 as the single largest

direct European investment in Pakistan, setting precedence for further foreign

investments in the telecom sector. In 2004, Warid Telecom International LLC,

purchased a license for operating a nationwide mobile telephony network, (WLL) and

long distance international (LDI) for $291 million US dollars and was the first

venture of Warid Telecom International LLC. Warid Pakistan launched its services in

May 2005. On June 30th, 2007, Singapore Telecommunications Limited (SingTel)

and Warid Telecom announced that they had entered into a definitive agreement

subsequent to which SingTel will acquire a 30% equity stake in Warid Telecom for

an estimated $758 million.

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

pioneering overseas set up of China Mobile came through acquisition of a license

from Millicom to operate a GSM network in Pakistan. Millicom had initially bought

Paktel in 2003 from Cable & Wireless. Paktel was the first ever company granted

license to carry out cellular phone services in Pakistan. Currently CMPak is operating

in Pakistan under the brand name of Zong. Instaphone is another telecommunication

company in Pakistan. Instaphone was one of the pioneers of cellular industry in

Pakistan. Initially the company was owned by Millicom International; later on Arfeen

Group acquired it. Currently, the license of Instaphone has been terminated due to

non payment of license fee to PTA. The company under a renewed license is planning

to role out a countrywide CDMA mobile network and would be the only CDMA

mobile operator in Pakistan to launch first 3G services in Pakistan.

2.3 MOBILINK (PMCL), AN ORASCOM TELECOM


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Pakistan Mobile Communications Limited (PMCL) operates the leading GSM

network in Pakistan and provides a range of prepaid and postpaid voice and data

telecommunication services to both individual and corporate subscribers, under the

brand name “Mobilink.” Mobilink launched its operations in August 1994 after it was

founded in 1990 as a joint venture between Motorola and the Saif Group and awarded

a license for mobile telecommunication system and services in July 1992. Later on in

April 2000, Orascom Telecom bought 38.6% stake in PMCL, which it later in

February 2001 increased to 68.69% by purchasing Motorola’s share in PMCL and

becoming the major shareholder of the company. In April 2001, Orascom Telecom

took over management control of the company. As of December 31st, 2007, Orascom

Telecom indirectly owns 100% of the share capital of Mobilink through direct stakes

held by wholly owned subsidiaries of OTH. By December 2007, Mobilink had

achieved 39.8% in market share, making it the market leader in the mobile sector of

Pakistan2 and had a customer base of more than 32 million by July 2008.

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. To achieve this objective, Mobilink offer both postpaid (Indigo) and

prepaid (JAZZ) solutions to their customers.

Mobilink was also the first cellular service provider to operate on a 100% digital

GSM technology in Pakistan and also provides state-of-the-art communication

solutions to its customers. Mobilink’s network is the most extensive in Pakistan,

connecting more than 9000 cities across Pakistan, as well as over 120 countries on

international roaming service. Furthermore it reaches over 66% of the total population

and 99% of the urban population as of December 31st, 2007. Mobilink is also

developing its own optic fiber backbone, to provide its customers with highest level

of voice and data quality with more reliability4 and has invested more than $2.5

billion in its networks.


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2.3.1 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.

2.3.2 Mobilink’s Values

2.3.2.1 Total Customer Satisfaction

Customers are at the heart of our success. They have placed their trust and confidence

in us. In return, we strive to anticipate their needs and deliver service, quality and

value beyond their expectations.

2.3.2.2 Business Excellence

We strive for excellence in all that we do. We aspire to the highest standards and raise

the bar for ourselves everyday. This commitment to delivering world-class quality

translates into unmatched service and value for our customers and all stakeholders.

2.3.2.3 Trust & Integrity

At Mobilink, we take pride in practicing the highest ethical standards in an open and

honest environment, and by honoring our commitments. We take personal

responsibility for our actions, and treat everyone fairly, and with trust and respect.

2.3.2.4 Respect for People


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At Our relationships drive our business. We respect and esteem our employees and all

stakeholders. We believe in teamwork, empowerment and honor.

2.3.2.5 Corporate Social Responsibilty

As the market leader, we recognize and fulfill our responsibility towards our country

and the environment we operate in. We contribute to worthy causes and are dedicated

to the development and progress of the society.

2.3.3 Mobilink Operation Analysis

2.3.3.1 Network

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

digital cellular telecommunication system using the GSM 900 standard and to offer

telecommunication services in Pakistan. Before that, all previous operations were

using the AMPS technology. Since then Mobilink has been growing its network,

providing 2G, 2.5G, GPRS and EDGE compatibility. Mobilink was the first operator

to start rolling out the Enhanced Data Rates for Global Evolution (”EDGE”) in

Pakistan. In addition, Mobilink also launched its BlackBerry service in December

2005 through its GPRS platform. Furthermore, Mobilink’s license was renewed on

July 6th, 2007 for a further period of 15 years.

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

recent times has expanded to more than 9000 cities and reaches over 66% of the total

population and 99% of the urban population as of December 31st, 2007.

Table 2.1: An Overview of Mobilink’s Network


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Not only is Mobilink’s network very modern and technologically advance, but it is

also very competitive, when compared to other mobile networks.

Table 2.2: Comparative Figures of Coverage & Cell Sites


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2.3.3.2 Operational Departments

Mobilink was headed by President and CEO Zouhair A. Khaliq, who reports directly

to the Chairman and CEO of Orascom Telecom Naguib Sawiris. Furthermore the

operations of Mobilink are divided into eight different departments, which are as

follows:

1. Human Resource

2. Administration and Security

3. Sales

4. Marketing

5. Customer Services

6. Corporate Affairs

7. Technical

8. Finance

Furthermore, these departments are further divided into sub departments to ease

operations within Mobilink. Also all major decisions are taken centrally, in


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Islamabad. These decisions for example include, the financing required by Mobilink

(local and foreign), decisions regarding import of goods etc.

Furthermore, to assist the operations of Mobilink, which include more than 500

franchises and 16 Customer Services Center’s, operational departments are located in

all the four main regions:

1. North

2. South

3. Central

4. AJK

2.3.3.3 Subscribers & Market Share

Mobilink had a great advantage for years as being the only GSM mobile operator in

Pakistan, however with the entrance of Ufone in 2001 and later on by Telenor, Warid

and Zong, the competition in the mobile sector is heating up. However the subscriber

base Mobilink has remained steady and growing as seen in the table below:

Table 2.3: C Number of Mobilink Subscribers from 2005-July 2008

Although the number of subscribers has increased over the years, the same cannot be

said about the market share of Mobilink, which has gradually decreased over the year.

However, although the market shares of Mobilink might have decreased over the

years, but it still remains the market leader in the mobile sector. The market shares of

Mobilink are as follows:

Table 2.4: Market Shares of Mobilink from 2005-2007


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2.3.4 Products

Mobilink offers both Pre-paid and Post-paid services. They offer tariff plans that are

exclusively designed to cater to the communication needs of a diverse group of

people, taking into account occasional users to businessmen. To achieve this

objective, they offer both postpaid (Indigo) and the prepaid (JAZZ) services to their

customers.

Jazz is an amazing prepaid service that allows freedom from monthly bills and gives

complete control over the customer’s cellular expenditure. The user can decide in

advance when and how much he wants to spend. He can load a scratch card whenever

he wants to and start talking. Jazz is simple, easy and loads of fun.

In addition to providing advanced voice communication services, they also offer a

number of value added services to their valued subscribers.

Indigo is positioned on family platform, offering a wide range of products catering to

different needs. It comprises of a range of packages depending upon the usage levels

such as indigo initial and indigo 400 supplementary packages combine postpaid life

style with economical rates.

Call and Control is a hybrid product that offers prepaid convenience and postpaid

control and is suited for high-end prepaid users.

2.3.5 Value Added Services

GPRS

Mobilink Mustt Services


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SMS Messaging

Power Tools

Chat Services

Dedication Services

Power Tools

Mail Services

Info Services

IVR Ring tones/Logos

On Call Services

Missed Call Alerts

2.3.6 Sales Strategy

Mobilink is the first cellular operator to introduce the “franchise “concept in the

cellular industry in Pakistan and currently operates the largest franchise network in

Pakistan with over 250 franchises/national distributors (dealers operated service

centers). In order to extend its reach even further, Mobilink worked with its

franchisees to develop a network of over 500 sub dealers, these operate as point of

sales (POS) and are branded “Mobilink Connect”. Each franchisee is adequately

equipped to process sales, collect bills and offer customer services. All franchises

have trained sales and service staff fully capable of tackling sales challenges.

2.3.7 Core Competence

People at Mobilink believe that their Research & development department is its core

competence along with their workforce i.e. their employees. Mobilink is basically a

customer-oriented company and it always comes up with new features and products.

It surveys the markets and modifies its products according to the requirements and


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preferences of its customers. Mobilink has relatively rapid product development

processes that allow for timely updating and release of new products. It was the first

cellular company in Pakistan, which started working on 100% GSM technology.

At the end of the year 2007, Mobilink crossed its target of reaching up to 20 million

customers. At this achievement, all the employees at Mobilink got a month’s salary as

bonus in January 2008.


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CHAPTER 3

REVIEW OF MOBILINK REGIONAL OFFICE NORTH-2

3.1 MOBILINK NORTH-2

North-2 region covers most parts of NWFP. Regional office is situated in Peshawar.

Previously their office was in Tehkal, adjacent to KFC but now it is shifted to

University Road adjacent to Shiraz Gathering.

3.2 OPERARTIONAL DEPARTMENTS

Mobilink North-2 office was headed by Regional Commercial Director Sales Mr.

Aamir Aman Khan, who reports directly to the Vice President Sales Mr. Irfan Akram.

Furthermore the operations of Mobilink are divided into eight different departments,

which are as follows:

1. Administration and Security

2. Sales

3. Finance

4. Customer Services

5. Corporate Affairs

6. Marketing

7. Technical

8. Credit & Collection

Furthermore, these departments are further divided into sub departments to ease

operations within Mobilink. Also all major decisions are taken centrally, in


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Islamabad. These decisions for example include, the sales target, new markets, the

financing required by Mobilink etc.

3.3 AREA OF MY WORK AND EXPERIENCE

During my eight weeks of internship I performed many duties which added to my

experience and learning. All the tasks that I executed gave me a sense of

responsibility. Sometimes there was too much responsibility on me, too much burden

was there. At times things were slow, yet I wanted to work more.

I did my 8 weeks internship at the sales operation section of the sales department of

Mobilink. The sales operation section is one of the three sections of the sales

department. The other departments are Direct Sales & Indirect Sales.

Direct sales deals with postpaid connections and Mobilink PCOs and sell them

directly to the customers. Indirect sales deals with the sales of prepaid connections,

scratch cards and jazz load through franchises

Sales operations keeps record of all sales related issues such as targets, target

achievement, daily sales report and also act as a bridge between franchise and all

other departments of Regional Office.

3.3.1 Sales Department Hierarchy


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Table 3.1: Structure of Mobilink Sales Department

3.3.2 Division of North-2 Zone

The North-2 Region was divided into eight zones. Each zone was headed by Zonal

Sales Manager having one coordinator to assist him. Total number of franchises in

North-2 is fifty six. Zone-1 covers eight franchises of Peshawar City Side; Zone-2

covers seven franchises of the areas near Peshawar such as Charsadda, Pabbi,

Nowshera, Lakki Marwat, Momand Agency; Zone-3 covers eight franchises of Kohat

Zone; Zone-4 covers eight franchises of DIKhan and Bannu Region; Zone-5 covers

five franchises of Peshawar Cantt, Town and Hayatabad; Zone-6 covers eight

franchises of Mardan Region; Zone-7 covers nine franchises of Swat Region; and

Zone-8 covers four franchises of Gilgit Region.

3.3.3 My Duties and Responsibilities

Sales operations department was headed by Regional Manager Mr. Ali Hassan Saeed

and I was reporting directly to him. During the eight weeks of my internship I was

given different projects and responsibilities. Some routine duties are as follows

Daily Scratch Card Requisition of all North-2 Franchises


RCDMr. Aamir Aman

RM OperationsMr. Ali hasan Saeed

RM Indirect SalesMr. Jamil Khan

RM Direct SalesMr. Riaz Khan

CoordinatorMutahar Ahmad

CoordinatorRammina rabbani

ZSMs of Six Zones

Coordinators

Coordinators

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Daily Jazz Load Requisition of all North-2Franchises

Daily CD’s Requisition of all North-2 Franchises

Daily PCO Requisition of all North-2 Franchises

Replacement of Jazz Load Sims (Valista Sims)

CDTM Entries

Analysis & Reporting of all the Requisitions & Products of Mobilink i.e. Scratch Cards, jazz Connections, Jazz Load and Jazz Load Sims

Apart from these routine duties I was given two projects;

First project was to collect the details of the customers having more than 10 numbers

against one NIC number and send that detail of such numbers to Lahore office to

change their ownership in the name of person using that number. Their were over 0.7

million numbers that needed change of ownership in one month and I had to meet the

deadline which I did.

Second project was to collect the data of all the shops in Peshawar City Area (Name

of shop, owner name, location etc.). For this project I was assisting the Coordinator

Sales Peshawar Zone Mr. Mohsin Iqbal. It took us about 15/20 days to collect all the

data needed.


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CHAPTER 4

ANALYSIS OF MOBILINK (PMCL)

4.1 SWOT ANALYSIS

4.1.1 Introduction

Overall evaluation of a company’s strengths, weaknesses, opportunities and threats is

called SWOT analysis.

SWOT analysis provides a good overview of whether a firm’s business is

fundamentally healthy or not. Proper understanding of SWOT analysis is essential for

good strategy making.

SWOT analysis is one of the most important steps in formulating strategy using the

organization mission as a context; managers assess internal strengths, distinctive

competencies and weakness and external opportunities and threats. The goal is then to

develop good strategies and exploit opportunities and strengths neutralize threats and

avoid weaknesses with an overall organizational goal to increase the wealth and value

of the organization.

4.1.2 Strengths

Franchise of Orascom, a well Known Egyptian telecom company is

considered very strong and reliable.

Being the oldest international telecom company, Mobilink has captured most

of the potential customers by penetrating in the early stages of market

development.(Now 28million)

Covering over 10,000 cities, towns and villages across the Pakistan.


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First operator to introduce IR for the people of Pakistan. Currently our

network covers more then 100 countries across the globe with over 300

roaming partners.

Human resources are considered as the asset of the organization.

Marketing strategies of Mobilink are more effective and more captivating than

any of its competitors present in Pakistan.

Ventures with well-known banks like MCB, Citibank for Mobilink banking

etc.

A very strong brand image

4.1.3 Weaknesses

Instead of all its strength still considered to be the most expensive telecom

company both in call rates and SMS as compared to the its competitors.

Engineering department of Mobilink is not that well competent as compared

to its new competitors.

With first expending customer based customer care facilities need to be

expended simultaneously for customer retention along side switch capacity

networks coverage.

4.1.4 Opportunities

Potential opportunity is there as telecommunication has become the need of

people all around the world.

The fourth expend its networks in the areas where other network have been

unable to reach.

To bring in more innovative services like Mobilink PCO, Mobile banking

lost /stolen phone information etc. this can be done by hiring fresh and

competitive staff.

Services in the future can be


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o Fixed Line Telephone

o Wireless

o Calling Cards

4.1.5 Threats

Biggest threats are the new competitors like Telenor who recently entered in

telecom market of Pakistan.

Employees retention is also issue of concern for Mobilink as most of the

employees get attracted by the more handsome salary paid by recently

happenings multi-nationals

Loss of loyal customer can be one of the issues as they are moving toward the

less expenses package of competitors.

Direct Indirect

Ufone PTCL

Telenor Calling Cards

Warid Wireless

Paktel

4.2 FINANCIAL ANALYSIS

No company can remain in business if it cannot sustain and grow its profits and

telecom companies are no exemption. If Mobilink wants to remain the market leader

in the mobile industry and wants to satisfy its customers, it itself needs to remain a

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

financial statements are not made public. However it does provide its financial

information to different financial institutions and companies that have invested in


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Mobilink, examples include companies that have bought TFC’s issued by Mobilink.

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

in the appendix.

4.2.1 Operational Results

Table 4.1: Profit Comparison between 2007 & 2006

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

balance recharges the revenues for Mobilink have increased from December 2006 to

December 2007, this increase is because of the large increase in the consumer base of

Mobilink in 2007. The increase in revenue has led to an increase in the profit before

interest and tax, and although the costs of services and selling and administrative

charges in 2007 have increased from the past year, the increased revenue helped in

off setting the increase in the expenses.

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

financial charges or interest charges for the 2007. In the mid of 2006, Mobilink issued

a TFC more than Rs 3 billion, and the interest of which is paid semi annually.

Furthermore, most of Mobilink’s growth is financed through long term loans, which

have also increased in 2007, increased the financial charges.


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

profit after taxation, which when compared to the profit of 2006, to not increase by

much. The increase is only 1.25% from the previous year.

4.2.2 Balance Sheet Results

Table 4.2: Balance Sheet Comparison between 2007 & 2006

As the above table shows, there has been a significant increase in the fixed assets of

Mobilink in 2007; this has been due to the increase in the property, plant and

equipment, long term deposits and other receivables and license fee. However, the

current assets have decreased, but not by much. This small decrease is mainly due to

the decrease in stocks in trade.

The current liabilities have also increased in 2007, again by not by much. This

increase in current liabilities is associated with the increase in short term financing

and the current portion of long term financing.

The increase in shareholders equity is associated with the increase in the shareholders

equity and the increase in the accumulated profits, while the increase in the long term


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liabilities is associated with the large increase in long term financing and the license

fee payable, which was made due, to the renewal of Mobilink’s license.

4.2.3 Ratio Analysis

4.2.3.1 Current Ratio

Table 4.3: Current Ratio Comparison between 2006 & 2007

Current ratio is a liquidity ratio that measures how easily a company can pay off its

current liabilities using its current assets. For Mobilink although most of its revenues

are on a prepaid basis but still the current assets fall short to pay off the current

liabilities in both 2006 and 2007. Furthermore the current ratio has fallen in 2007,

which again shows that there aren’t enough liquid assets to pay off the current

liabilities and may affect Mobilink’s solvency in the short term.

4.2.3.2 Fixed Assets Turnover

Table 4.4: Fixed Assets Turnover Comparison between 2006 & 2007

Fixed Asset Turnover, an asset management ratio, shows how effectively a company

uses its fixed assets. That is using its assets to generate sales. Most of Mobilink’s

assets are fixed, major of which include cell sites and other equipment. As the figures

show, the ratio has decreased in 2007, from 0.53 to 0.51.


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Although the decrease is very small, the major reasons associated are the large

increase in the fixed assets and the small increase in sales. The fixed assets rose by

29.3%, while the revenue rose by 26.3%. The major reason for the small increase in

the sales could be associated to the rather small increase in the total subscribers in

2007, as compared to 2006.

4.2.3.3 Debt Ratio

Table 4.5: Debt Ratio Comparison between 2006 & 2007

The Debt Ratio measures the percentage of funds provided by sources other than

equity. For Mobilink, most of its growth is funded through long and short term

financing, and even though Mobilink has expanded its operations during 2007, but

still the debt ratio fell in 2007, but only by 2%, which is mainly because of the large

increase in the total assets, when compared to long term liabilities. The rise and fall of

current liabilities and currents assets respectively is not much.

4.2.3.4 Return on Common Equity

Table 4.6: Return on Common Equity Comparison between 2006 & 2007

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

shareholders of a company are getting returns on their investments. The ratio for

Mobilink has decreased significantly in 2007, a decrease of 7.5%. This decrease can

be associated to the small income available to the shareholder. Most of the net income


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has to be paid out in financial charges, which leaves less or the shareholders, which in

2007, expanded their investment in the company.

4.3 HUMAN RESOURCE ASSESSMENT

Mobilink, the largest cellular company of Pakistan, is made of a team of over 4500 of

unique individuals. They are the best minds in the industry today, being exposed to

the best practices and an enabling environment.

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

as Mobilink’s. Capability building programs equip employees with all the skills and

techniques needed for them to realize their ambitions, while diversity and wellness

initiatives help employee’s further reach new heights and achieve their goals.

Mobilink’s hiring takes place through its website which is being powered with a

partnership with Rozee.pk, one of Pakistan’s premier website. This website provides

updated information on job openings, as and when they happen. Furthermore the

website is divided into three sections, all providing information accordingly:

Internship Candidates

Entry Level Candidates

Experienced Candidates

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

Table 4.7: Designations of Mobilink’s Employees


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Furthermore Mobilink employees receive a number of fringe benefits which include

gratuity funds, post paid mobile packages, credit cards and discounted memberships

with Citi Bank, employee loans, blackberry handsets, transport facilities for ladies,

health club and Jinnah Stadium memberships etc.

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

Training Calendars are published for employees, informing them about training dates

and their descriptions. These training sessions take place both within and outside the

city. Employees are even sent abroad for training. These include managers and

directors within Mobilink, to polish and enhance the management and leadership

skills further.

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

is no exemption. Mid Year and Yearly appraisal are conducted by line managers of

each employee. Input from the employee being appraised is also taken to enhance the

benefits of the appraisal activities. This input includes both their job objectives and

responsibilities but also suggestions on what line managers could do more for

support.

4.4 MARKETING ANALYSIS


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In today’s contemporary business world, marketing plays an important role. Mobilink

that has a number of competitors in the mobile industry, need to use their marketing

plan and strategies effectively to attract customer loyalty.

The marketing department at Mobilink anticipates, and satisfies the customer’s

communication needs. This includes consumer behavior research and translating this

research into services and pricing plans. The Marketing team also helps in identifying

new business opportunities and develops plans to exploit those profitably. It also

designs and implements brand strategies and communication plans.

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

following ways:

Electronic

Print

4.4.1 Electronic Media

The major way in which today’s organizations promote its products and services is

through television, not only because it’s economical but also because the visual and

audio aids help in promoting its product.

Mobilink uses an aggressive advertising campaign on television to promote its

products. These advertisements, while communicate an image of modernity and

newness, still tend to show the heritage of Pakistan. The heritage of Pakistan and its

people signifies Mobilink, as being the favorite cellular company of Pakistan.

Mobilink has also for years, has tried to create different personalities for its brands:

Indigo and Jazz, to distinguish them from other competing brands. Mobilink’s Indigo

brand relied heavily on two factors toward establishing its brand equity: brand

ambassadors that exuded style and sophistication, and a unique classy look that

permeate all forms of its Indigo brand communication. It also played on the


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aspirations of young business professionals through the atmosphere and the locales of

Indigo’s ads.

On the other hand, the Jazz brand creates an image of fun, catering more to the

youngsters and teens of the country. Not only that, it has also over the years created

an image of bond among the members of the Jazz members, achieved due to the

lowest rates and packages that Jazz has to offer. With Jazz advertisements, it’s all

about having a show and tell tableau.

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

radio. The website of Mobilink is built in a way to provide updated information about

its products, with dedicated pages for both its brands, Indigo and Jazz. Furthermore,

the website also contains a gallery feature, from where users can view a wide array of

print and television advertisement, created by Mobilink over the years. The use of

Radio has also been used to promote the packages of Mobilink. Advertisement on

radio, mostly inform listeners on the new packages and their details.

4.4.2 Print Media

Print advertisements are another major way in which Mobilink advertises its product

to the masses. Print media advertisements are printed in major English and Urdu

newspapers across Pakistan. The messages of these advertisements are mainly of new

packages that Mobilink may introduce over time.

Figure 4.1: Print Advertisements of Mobilink


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4.4.3 Advertising Agency and Brand Ambassadors

Mobilink uses the services of International Advertising (Pvt) Limited (IAL)

SAATCHI & SAATCHI. IAL was established in 1966. IAL clients include PIA,

P&G, Devan Mushtaq Motor Company (DMMC), PSO, Engro Foods Limited,

National Foods and Sony Ericsson etc. Furthermore, it became the first agency to

affiliate itself with an international agency- SAATCHI & SAATCHI, a top player in

the global advertising arena.

Furthermore, Mobilink uses its brand ambassadors to promote its products in both the

electronic and print media. These brand ambassadors come from the fields of acting,

modeling, singing and cricket and are few of the most famous and talented stars of

Pakistan. The brand ambassadors are as follows:


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Table 4.8: List of Brand Ambassadors of Mobilink

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

Sunita Marshall and Samina Pirzada have also appeared in Mobilink advertisements,

from time to time.

4.5 ENVIRONMENTAL ANALYSIS

4.5.1 Industry and Market Analysis

4.5.1.1 Major Product Lines Market Segment

Mobile Industry has been very effective in introducing new and innovative products

and services over the years. The major product lines can be segmented into, three

categories, which are as follows:

1. Consumer Packages

2. Value Added Services

3. Corporate Packages and Services

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

segment.

4.5.1.1.1 Consumer Packages


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The consumer packages of the mobile Industry include the prepaid and postpaid

packages being provided by the different cellular providers of Pakistan.

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

today by millions of Pakistani’s. Prepaid packages provide a sense of affordability,

whereby consumers have the option of only recharging their accounts, when needed.

This affordability has led to a massive increase in the prepaid subscriber base, with

everyone from housewives to teenagers; to electricians to small shop owners all using

prepaid packages. The main user segments of prepaid packages include the lower,

middle and middle upper class of the country. Furthermore, a number of people use

prepaid packages as a second number, which also include people from the upper

class.

Mobile companies today have used immense popularity of prepaid packages to

introduce packages that are targeted to different segment. These include Telenor’s

Djuice, targeted towards teenagers and young individuals and Mobilink’s Ladies

First, targeted towards house wives. Furthermore, packages that bill at 1min, 30

second and per second have also been introduced by mobile companies.

Postpaid packages were introduced, keeping in mind, the businessmen and

executives. Postpaid packages, due to their nature provided the benefits of

connectivity 24/7, without the fuss of scratch cards and recharge of accounts.

Furthermore, as competition rose in the mobile industry and new entrants came;

postpaid packages were made more affordable. The work of Warid in this concern is

an example, creating postpaid packages as affordable as prepaid ones. The main

market segments, towards which the postpaid packages are targeted, include small

and medium businessmen, industrialists, bureaucrats and people of the upper class.

However with the affordability of postpaid packages, people from the middle class

have also been seen using post paid packages.

4.5.1.1.2 Value Added Services


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Value Added Services have become an essential tool for generating revenues for

mobile companies today. Starting in the early years, from wallpaper and ring tones

download, today mobile companies provide a range of services to their customers.

Some of the popular services include, religion services, music services, which

includes song dedication, voice and timed messages, sports and cricket services, food

and recipe services, WAP/GPRS/EDGE, themes, wallpapers, games and ringtones

downloads, credit share, MMS, voice mail, email, missed call alert, conference call,

mobile TV, web2sms and many more.

Value added services have been designed by companies, so that there are services for

every segment of their users and that these services completely satisfy them, as and

when needed.

4.5.1.1.3 Corporate Packages and Services

Cellular providers in Pakistan are also providing corporate clients with services

catered to them. Corporate clients due to their huge operations have special

requirements. Mobile packages and tariffs; secure email and instant web connectivity,

being some of the most important issues.

Today mobile companies provide BlackBerry solutions, Mobilink and Warid being

forefront in this technology, furthermore to add to this innovative service, companies

today are providing SMS marketing feature, SMS management facility, fax mail,

Wireless connectivity through EDGE, private numbering plans, closed user groups

and mobile email to their corporate clients.

All above features and many more have helped corporate clients to manage their

operations effectively and efficiently.

4.5.1.2 Growth Rate of Entire Industry


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The mobile industry has seen phenomenal growth over the years. Today there are five

major competitors competing for their subscriber base, increasing the services

provided, reducing their call rate and having aggressive marketing campaigns. Simply

put, competition is heating up in the mobile industry.

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

subscriber base in the mobile industry reached to more than 89 million to 89,325,296.

This was an increase of 41.4% from December 2007. Although this is phenomenal

growth, analysts believe that it would be even higher, if taxes would have not

increased, in the financial budget.

The mobile industry saw phenomenal growth from 2005-2006. According to PTA, on

average 2.3 million subscribers were added every month during 2006-07.

Furthermore, in 2003-04 the sector was offering 466,068 direct and indirect

employments, which in 2006-07 more than doubled to 1,366,698 employments. Also

the cellular mobile density or mobile penetration in the total population has also

increased over the years. In July 2008, the mobile density reached 55.62%. It was

54.7% in Dec 2007 and 39.94% in Dec 2006, according to official figures.

Also during 2006-07 the revenue of mobile industry was Rs.133 billion, an increase

of 48% from pervious year However, none the less, the growth has subsided since

2006, from 170.2% in December 2006 to 80.7% in December 2007, the major reasons

of which include the crackdowns on SIM registration, rising taxes and the general

economic conditions of the country.

4.5.2 Competitor Analysis

4.5.2.1 Major Competitors


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4.5.2.1.1 Ufone

Pakistan Telecommunication Mobile Limited (PTML) is a wholly owned subsidiary

of PTCL, established to operate cellular telephony. The company commenced its

operations, under the brand name of Ufone, from Islamabad on January 29, 2001.

Since its inception, Ufone changed the image of mobile phones from a luxury only

affordable by the elite, to a necessity affordable by the common man. Ufone’s

primary focus always remained on their valuable customers, introducing services over

time to fulfill their need and demands. Ufone’s slogan has always remained “It’s all

about U”.

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

by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the

management of Ufone has also been handed over to Etisalat. Now, under the

management of Etisalat, Ufone tends to concentrate on customer needs and benefits

and its management is even more determined than ever to be the leading cellular

player in the market, because Ufone has been known for providing superb

propositions and quality service to its customers and tends to keep that reputation in

the future.

Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a

subscriber base of over 18 million in July 2008, according to PTA and a market share

of 21% during the time period. Currently, Ufone has network coverage in more than

750 cities, towns and across all major highways of the country. It also provides

international roaming to more than 195 live operators across 119 countries.

Currently Ufone is under the agreement with Huawei, which will provide its future

oriented Energy GSM solution to expand Ufone's network to cover over 2200 cities,

towns, villages and all major highways in the country. The network also allows Ufone

subscribers to enjoy high-speed wireless data service and enables the telecom service

provider to evolve into 3G smoothly.


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4.5.2.1.2 Telenor

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

Asia together with Thailand, Malaysia and Bangladesh. Telenor acquired the license

for providing GSM services in Pakistan in April 2004, and had launched its services

commercially in Islamabad, Rawalpindi and Karachi on March 15, 2005 and on

March 23, 2005 Telenor started its services in Lahore, Faisalabad and Hyderabad.

Telenor’s investment in Pakistan is the single largest direct European investment in

Pakistan.

By the end of July 2008, the total subscribers of Telenor exceeded 18 million, with a

market share of 20%. Telenor’s network covers more than 3000 cities, towns and

highways throughout Pakistan. Furthermore, Telenor Pakistan has more than 5,000

cell masts throughout Pakistan, making it the 2nd largest network in Pakistan and 3 rd

in terms of customer base.

Telenor has a strategic alliance with Nokia Siemens Networks for expansion in

Pakistan. With USD 1 billion already invested, Telenor has extended agreements with

its vendors, including Nokia Siemens for network expansion and services until 2009.

The agreements will result in USD750 million worth of orders from Telenor Pakistan.

4.5.2.1.3 Warid

Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. In

2004, Warid Telecom International LLC, purchased a license for operating a

nationwide mobile telephony network, (WLL) and long distance international (LDI)

for $291 million US dollars and was the first venture of Warid Telecom International

LLC. Warid Pakistan launched its services in May 2005 and is based in Lahore.

Abu Dhabi Group is one of the largest business groups in the Middle East and the

single largest foreign investor in Pakistan. Abu Dhabi Group entered into a strategic

alliance with Singapore Telecom. Subsequent to this transaction in July 2007,


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telecom giant SingTel acquired 30% percent equity stake in Warid Telecom,

Pakistan, for US$758 million- valuing the company at an enterprise value of $2.9

billion. This partnership is part of a strategy to support Warid Telecom’s continued

growth and to enhance its market position.

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

enjoyed 4th position in the market with a market share of 18%. In June 2008, Warid

Telecom announced it would invest $1.5 billion by end of this year and $2.5 billion

by end of 2009 to expand and modernize its network in Pakistan.

4.5.2.1.4 Zong

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

pioneering overseas set up of China Mobile came through acquisition of a license

from Millicom to operate a GSM network in Pakistan. With ambitious plans to cater

to the fastest growing Pakistani market and to win over the ever demanding Pakistani

customer, CMPak's edge comes from the experience and expertise of running the

world's largest telecom service and the commitment they make to setting quality and

customer relations standards. ZONG is the first International brand of China Mobile

being launched in Pakistan.

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

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

2007, Paktel was renamed to CMPak and then, on 16th May 2007, China Mobile

announced that it had upped its stake in CMPak to 100%. It later re-branded Paktel to

Zong.

In July 2008, the total subscribers of Zong were more than 4 million and enjoyed 5 th

position in the market with 5% share in the market. So far CMPak has invested more

than US$ 700 million in the telecom sector in Pakistan and an additional US$ 800

million will be invested till the end of year 2008.


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4.5.2.2 Their Market Shares

According to official figures in July 2008, there were a total of 89m subscribers

(89,325,296) in the mobile industry, Ufone had 18 million (18,368,074) subscribers

and was second in market share to Mobilink, followed closely by Telenor with

18,329,428 subscribers, a difference of just 38,646 subscribers. This difference was

3,312,712 subscribers at the end of 2007. Warid was forth with 15 million

(15,774,299) subscribers. Warid has also lost to Telenor in terms of market share

since 2006, when it was third in the industry. In July 2008, Zong had 4 million

(4,446,024) subscribers and was fifth overall. Instaphone had only 351,135

subscribers during this time.

In 2007, Ufone still remained second (14,014,044) in terms of mobile subscribers and

Telenor third (10,701,332), followed closely by Warid (10,620,386), which remained

forth. Zong was fifth (1,024,563) and Instaphone sixth (333,081). The total

subscribers in 2007 were 63 million (63,159,857).

4.5.2.3 Their Goals and Strategies

4.5.2.3.1 Ufone

Ufone is one of the major competitors of Mobilink and has sustained a good market

share over the years. It has remained second overall for a number of years. However

just recently, Telenor, which had gained third position in 2006, in the industry, is

giving strong competition to Ufone and even achieved second position in the first

quarter of 2007.

The main goal of Ufone is to provide its customers with the most effective and

efficient manner of communication. The main goal of Ufone has always been of

providing its customers with the state of the art services at the most simplest rates in

the industry. Its goals have always revolved around U (its customers), which can be

seen in its punch line or slogan “it’s all about U”. Furthermore, by accomplishing its


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goal, Ufone would be able to sustain its market share in the industry and remain in the

second position and defend its position from competitors like Telenor.

The main strategies of Ufone to accomplish their goals surround around providing

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

first mobile company to stop charging for incoming calls, first to introduce GPRS,

first to start bundle SMS packages and recently its call rates have greatly reduced and

have become even simpler. Furthermore its commitment can also been seen from the

fact that it’s slogan of “it’s all about u” has not changed over the years.

4.5.2.3.2 Telenor

Telenor since its inception in 2005, has been an aggressive company, trying to gain

market share from other competitors, first it took the third position from Warid

(another company that started in 2005) in 2007 and is now giving stiff competition to

Ufone (currently second13) and is favorite in gaining the position from its rival

company.

The main goal of Telenor is to help its customers get the full benefit of

communications services in their daily lives. This is also reflected in their vision,

which is “we’re here to help”. The main goal of Telenor is to provide services, which

take use of the latest technologies and are also new to the industry, thus providing

their customers with the full benefits of communications, which other companies are

not able to provide. Telenor’s slogan or punch line also reiterates their goal which is

“the smart call”. Henceforth, by accomplishing its vision, Telenor would be able to

take the second position in the industry and can then provide competition to the

market leader-Mobilink.

The strategies used by Telenor to achieve its goals is by being creative, that is

providing new and modern services, that take advantages of new technologies but are

also easy to understand and use. Some of the creative products introduced by Telenor


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over the years include: Easy Load, Smart Share, mobile TV, largest network of

EDGE, Pic Share, international packages like Djuice and many more. All these

services are very creative, never been introduced before and helping all its customers

around Pakistan.

4.5.2.3.3 Warid

Warid started its operations in May 2005, and enjoyed a good market share in the

industry, however it has lost its subscribers to its competitors in recent years, leading

to its loss of position in the industry. The main goal of Warid is to maintain and

strengthen its current market share and increase to positions, which it earlier held in

the industry.

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

customers that it is the best network for their lives. That is it provides the best calling

and sms rates, including the value added services. Its slogan, “life ka network” also

provides emphasis to this point.

Warid had earlier efficiently promoted its postpaid packages as affordable as its

prepaid packages, a strategy that increased its postpaid customers significantly in the

mobile industry, at a time when overall post paid connections were decreasing.

Currently its agreement with SingTel will also provide emphasis to its goals and

associated strategies.

4.5.2.3.4 Zong

Zong, a recent entrant in the mobile industry is a subsidiary of China Mobile. Zong’s

inception was the result of the takeover of Paktel by China Mobile in 2007. Being a

new entrant in the mobile industry, its goal is to gain market share, currently Zong is

a small part of the industry, but however it aims to increase its market share reach

above 10% by 2010.


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

without worrying about tariffs, network coverage, capacity issues or congestion. Its

slogan “Say it All”, provide the emphasis to their strategy. Currently Zong is

providing packages with the lowest call rates. Furthermore it has also introduced

features, which were not present earlier. These include change of happy hours,

changing SMS packages and internet packages on the discretion of its customers.

4.5.3 Technology Analysis

4.5.3.1 Technical Methods That Affect the Industry

Mobile networks are one of the most technical aspects of any mobile company and

the technology changes affecting the networks have changed considerable, since the

first mobile company Paktel was introduced in Pakistan.

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

analog mobile phone system standard developed by Bell Labs. AMPS were a first

generation cellular technology that used separate frequencies, or "channels", for each

conversation. AMPS used considerably more computing power in order to select

frequencies; however cell centers could flexibly assign channels to handsets based on

signal strength, allowing the same frequency to be re-used in various locations

without interference. However it suffered from some weaknesses when compared to

today's digital technologies. Since it is an analog standard, it was very susceptible to

static and noise and had no protection from eavesdropping using a scanner.

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

entered into the second generation of mobile networks with GSM. GSM (Global

System for Mobile Communications) is the most popular standard for mobile phones

in the world. Its promoter, the GSM Association, estimates that 82% of the global

mobile market uses the standard. Its ubiquity makes international roaming very

common between mobile phone operators, enabling subscribers to use their phones in


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many parts of the world. GSM differs from its predecessors in that both signaling and

speech channels, which are digital, and thus is considered a second generation (2G)

mobile phone system. This has also meant that data communication was easy to build

into the system. GSM also pioneered the short message service (SMS), which is now

supported on other mobile standards as well. Most GSM networks operate in the 900

MHz or 1800 MHz bands.

Currently all mobile networks of Pakistan have entered the 2.5G. Mobile networks

entered the 2.5G, by implementing the General Packet Radio Service (GPRS). It is a

packet oriented mobile data service available to users of GSM. GPRS can be used for

services such as Wireless Application Protocol (WAP) access, Short Message Service

(SMS), Multimedia Messaging Service (MMS), and for internet communication

services such as email and World Wide Web access. Later on, Enhanced Data rates

for Global Evolution (EDGE) was introduced, EDGE is an upgrade that provides a

potential three-fold increase in capacity of GSM/GPRS networks. Although EDGE is

a 3G technology, but it is considered a part of 2.5G technologies, however sometimes

separately referred to as 2.75G.

Currently the Pakistan Telecommunication Authority is planning to launch 3G

licenses in Pakistan, starting from the end of 2008. 3G networks enable network

operators to offer users a wider range of more advanced services while achieving

greater network capacity through improved spectral efficiency. Services include

wide-area wireless voice telephony, video calls, and broadband wireless data, all in a

mobile environment. Additional features also include HSPA (High Speed Packet

Access) data transmission capabilities able to deliver speeds up to 14.4Mbit/s on the

downlink and 5.8Mbit/s on the uplink. Furthermore 3G networks offer a greater

degree of security than 2G predecessors.

4.5.3.2 Innovation


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The mobile industry of Pakistan is considered by many as the most innovative

industry of Pakistan. Innovation means introducing new things or methods, and the

mobile industry has kept this promise by introducing new and innovative services for

years.

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

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

part of our daily lives. Examples of these services include Easyload and Smartshare.

Although Telenor is seen as the most innovative company right now, we cannot

diminish the contributions of other competitors to the Pakistani mobile industry.

Some of the innovative services introduced by the different service providers are as

follows:

Introduction of dynamic SIM’s by Ufone

Introduction of GPRS capabilities of Ufone

Introduction of voice controlled services by Mobilink

Introduction of Bundle SMS packages by Ufone

Introduction of voice SMS by Telenor

Introduction of emergency credit buying by Mobilink

Introduction of dedicated website for downloads by Warid

Introduction of credit share by Telenor

Introduction of BlackBerry services by Mobilink

Introduction of mobile television by Telenor

Introduction of caller tunes by Mobilink

Introduction of backup of contact lists by Ufone

These and many more services have helped make the mobile industry what it is today.

With innovations, being the hallmark of the mobile industry of Pakistan, future

prospects are bright. Also with swap of mobile operators becoming very easy using

Mobile Number Portability (MNP), and competition based on tariffs, innovation

becomes a must to create a competitive advantage. Furthermore, introduction of 3G


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services in the years to come would also increase the innovative service provided by

the mobile operators. Future innovation would take advantage of the current network

capabilities and additional benefits of 3G networks, including the high speed data

transfer services.

4.5.4 Strategies at Mobilink

Major strategies employed by the organization at various levels are

4.5.4.1 Corporate Level Strategy

As their corporate level strategy, they have entered into partnerships with different

organizations.

On the basis of findings, it appears that for the past few years (1999-2003), Mobilink

had a focus on internal growth. All this is evident from the fact that since the

deregulation of the mobile service industry of Pakistan, Mobilink has undertaken

various efforts to ensure that it changes its stance from concentrating on its existing

market to growing its market presence. The main reason for this change is mainly to

keep up with the competition and to retain and increase its market share. This

transition is obvious in Mobilink’s repositioning itself and hitting the market with a

new face with the catchphrase “Reshaping communication”

With the threat of new entrants into the industry after the deregulation, Mobilink’s

strategy took a new turn. To keep abreast with the company, Mobilink took the

following steps during the last 2 years:

Expanded its international roaming Service scope in 14 more countries

including Vietnam, Germany, Bangladesh, Ukraine, Iran, Venezuela, Nigeria,

South Africa, Ethiopia, Uganda, Sudan, Bahrain, Caribbean Islands. Bilateral

roaming agreements signed with 100 countries around the world to have true

roaming service operational in 151 operators of the world.


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PROMOTIONAL CAMPAIGNS LAUNCHED

o JAZZ BUNDLE OFFERS: These bundles include a handset, a JAZZ

connection and airtime worth Rs. 200

o INTERNATIONAL SUMMER PROMOTION: Discounted

international tour packages to Sri Lanka, Malaysia and Maldives

o “JAZZ-AUR-SUNAO”, “LIFE MEIN JAZZ LAO” (a change in the

marketing strategy)

o Indigo packages deliver nation wide cellular freedom at local Call

rates

o Exclusive deals to 6 northern area destination including Chitral,

Galliat, Hunza, Kaghan , Skardu and Swat.

o Roam the World: year long promotion including travel to the Holy

Land in Ramadan, avail amazing offers at the Dubai Shopping

Festival, be a part if the FIFA World Cup in Germany or visit Paris,

Milan, London and NY.

4.5.4.2 Business Level Strategy

As their business level strategy it has focused on Differentiation strategy ever since

it started. Mobilink has always made successful attempts to distinguish their products

or services from other in the industry. They make their product unique through:

4.5.4.2.1 Advertising

Highly creative people in the marketing dept

Billboards, TV commercials, bringing in famous personalities from media to

endorse their packages

4.5.4.2.2 Distinctive Product Features

Value added services


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Online billing

GPRS enabled

Mobilink also started 3 friend and family number with a charge of 2.25/min

still expensive as compared to Warid but giving incentive to subscriber there

is an additional cost of RS 25 to add friends and family number.

International roaming: Bilateral roaming agreements signed with 100

countries around the world to have true roaming service operational in 151

operators of the world.

4.5.4.2.2 Exceptional Service

There are certain areas of Pakistan where PTCL connections are not available;

the PTCL cables have not reached yet, but Mobilink has its service in those

areas.

Providing services in 413 cities

Best customer service in the cellular market: Biggest Call Center in Pakistan,

which is there to assist the customers 24 hours.

4.5.4.2.3 New Technology

Introduced GSM tech- bye to AMPS?

GPRS system – fast and inexpensive

MOBILINK GSM 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.

Their differentiation strategy is usually targeted at people who are not particularly

concerned with price, so it can be quite profitable e.g. indigo and blackberry are

relatively expansive packages; blackberry is mainly targeted for the business class


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who can afford it. In this way, the revenue generation remains high. Mobilink offers

tariff plans that are exclusively designed to cater to the communication needs of a

diverse group of people, taking into account occasional users to businessmen. To

achieve this objective, mob offers both postpaid (Indigo, relatively expensive) and the

prepaid (JAZZ, relatively inexpensive) solutions to their customers.

4.5.4.2.4 Low Cost Strategy

Mobilink does not follow a low cost strategy. Mobilink is a giant in Pakistani mobile

industry Tel. Since it first started its operations, it has been focusing its products on

the upper strata of the society. That is why its rates are higher than its competitors,

Ufone, Warid, Telenor, etc.

4.5.4.3 Functional Level Strategy

4.5.4.3.1 Sales and Marketing

Differentiation Advantage:

Because they target the customer groups they offer tariff plans that are

exclusively designed to cater to the communication needs of a diverse group

of people, taking into account occasional users to businessmen. To achieve

this objective, they offer both postpaid (Indigo) and the prepaid (JAZZ)

solutions to their customers

The marketing department immediately identifies and responds to the

customer needs.

4.5.4.3.2 Commitment to Total Customer Satisfaction:

Customers are at the heart of my success. They have placed their trust and confidence

in us. In return, I strive to anticipate their needs and deliver service, quality and value

beyond their expectations.


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4.5.4.3.3 Passion for Business Excellence:

I strive for excellence in all that I do. I aspire to the highest standards and raise the

bar for myself everyday. This commitment to delivering world-class quality translates

into unmatched service and value for my customers and all stakeholders.

4.5.4.3.4 Trust & Integrity:

At Mobilink, I take pride in practicing the highest ethical standards in an open and

honest environment, and by honeying my commitments. I take personal

responsibility for my actions, and treat everyone fairly, and with trust and respect.

4.5.4.3.5 Respect for People:

My relationships drive my business. I respect and esteem my employees and all

stakeholders. I believe in teamwork, empowerment and harmony.

4.5.4.3.6 Responsible Corporate Citizen:

As the market leader, I recognize and fulfill my responsibility towards my country

and the environment I operate in.


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CHAPTER 5

FINDINGS AND RECOMMENDATIONS

5.1 FINDINGS & PROBLEMS

The findings are the facts that I have discovered from the analysis of the Mobilink

and in the light of those findings I have given the suggestions, which are realistic and

adoptable for the organization. After critically analyzing both the operations and

financial data of Mobilink I have summarized the findings of the report. These

analyses are mainly based on my practical working & experience at the Mobilink

during internship.

5.1.1 Job Rotation and Advancement

The main problem that I have identified within the SALES department as a whole is

the lack of job rotation within the department and not enacting on the job

advancement rules.

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

even though the employees informally try to learn about the working of other

departments through their peers. They show keen interest in learning new things as all

the operations within the department are interlinked.

Furthermore the only time, officially, when an employee is told about the working of

another part of the department, is only when he is moved to that part, for example,

when an employee initially working for sales operation department is transferred to

off indirect sales because of shortage of employee. This learning should not be

considered as a job rotation, because this shift is permanent for that given employee.


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Furthermore, at Mobilink, the rules and procedures for job advancements are laid out

however it has been seen that junior executives, especially those at associate level are

not promoted to specialist levels, even though they have fulfilled the main

requirement- years of experience with Mobilink. This creates dissatisfaction within

the employees.

5.1.2 Unequal distribution of work

Work is not equally distributed. On one hand some employees have to work all day

without relaxing while some others have very little to do. This not only creates

confusion among employees but also hurting and disturbing the overall setup of the

company. And above all it results in dissatisfaction among customers as well.

5.1.3 Lack of staff

Staff of the indirect sales is less and workload is too much on the existing staff

especially in operations due to which they are unable to give proper time to their

franchises.

5.1.4 Mismanagement of Internees

At Mobilink the selection of internees was based on nepotism basis. Some internees

even did not hold a commerce or business qualification, but they were working due to

some relationship with manager or some other employee of branch. Moreover there

was no proper plan to train the internees.

5.1.5 Favoritism and Nepotism

The promotions are mostly powered by senior’s favoritism or depend upon their wills

and decision. This adds to the negative factors, which denominate the employees thus

resulting in affecting their performance negatively.


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5.1.6 Limited authority

Employees have very limited authority; they have to take the approval from

management authority for every thing that is out of routine which is very time

consuming.

5.2 CONCLUSION

The mobile industry has seen phenomenal growth over the year, showing growth rate

of more than 80% in 2007. This growth is not new to the industry, as previous years

have shown substantial growth as well. This growth is a direct result of the increased

competition in the mobile industry, resulting into better services at reduced rate.

Furthermore, this has favorably affected our economy as a whole, generating

revenues for the government, through direct and indirect taxation and creating

employment opportunities for the people. The mobile industry of Pakistan is

considered by a majority of prospective employees as the best industry for a job.

Although the mobile industry has seen substantial growth over the years, many

observers feel that the industry may become saturated and will show lower growth

rates as a result of increased taxation and the general economic conditions of

Pakistan. Although the concerns may be valid to some extent, but with PTA,

introducing the 3G platform in the coming years and a major part of our population

still without mobile connectivity, especially in distant villages, there is still optimism

that the mobile industry will not become saturated and there is still place for

competition in the industry.

Mobilink has been in operation since 1994, and since then has become the market

leader by providing its customers with the state of the art products and services.


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Mobilink has for years enjoyed a good market share of the total industry; its current

market share is 36%.

Even though Mobilink has been a market leader, for so many years, providing the

most technological advanced products and services, it has for a number of years been

facing strong competition from Telenor and Ufone, which has resulted in a decrease

of its market share. This has led Mobilink to a policy of diversification, by

introducing products like Mobilink PCO and WIMAX services. Although Mobilink

has diversified, it still is providing competitive products and services for its core

products-Jazz and Indigo.

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

with the practical experience during our academic career. I am very grateful that I

received an internship at Mobilink as it was a great learning experience on how a

multinational company works and further improved my skills of team working and

critical decision making.

5.3 RECOMMENDATIONS AND SUGGESTIONS

As identified earlier, the problem that I identified was the lack of job rotation within

department and not enacting on job advancement rules and procedures. Some of the

recommendations to this problem are as follows:

Firstly I would recommend that the department officially start job rotation. The major

benefit of which would include even more motivated employees, with enhanced

skills.

One of the major arguments against job rotation is that without it, employees will

perform only one task and will become specialized in that particular job. Furthermore,

the argument also suggests, that with job rotation, only general information is

imparted to employees, not essentially helpful in doing complex tasks. However, in


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today’s business environment, multitasking is becoming more and more essential and

thus rotation becomes essential in making employees multitask.

Furthermore, the organization structure of the treasury department makes it easy for

job rotation, as all sub departments major functions are interlinked to each other and

mostly all departments currently have more than one associate employee, except cash

management.

Secondly I would also suggest that specific job related training should also be

imparted to the employees, this would have an additional benefit of further improving

their current skills and knowledge, while attaining new through job rotation. Also

professional counseling programs should also be started to provide employees with

the information, regarding future prospects at Mobilink and in the mobile industry.

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

because for an employee that has worked with Mobilink for more than 2-3 years, they

should be awarded with the fruits of job advancement, as I believe that the criteria of

job advancements currently used is a standard in most MNC’s and job advancements

are a part of career growth. Furthermore, job advancement s will create future leaders

for Mobilink.

Thirdly the policy makers of Mobilink should reconsider their call and SMS rates as

they are no more a monopoly in the country now they are to face competition, which

by no regard is easy.

Lastly I will say that human being are prone to experiment; same is the case here as

more telecom companies are entering the competition people are moving more

towards them so for the skew of retaining their customer Mobilink should become

more dynamic by introducing new and more customer friendly packages.


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REFERENCES

Wikipedia (www.wikipedia.com)

Mobilink (www.mobilinkgsm.com)

Pakistan Telecommunication Authority (www.pta.gov.pk)

Ufone (www.ufone.com)

Telenor (www.telenor.com.pk)

Warid (www.waridtel.com)

Zong (www.zong.com.pk)

Orascom Telecom (www.otelecom.com)

The News (www.thenews.com.pk)

Articles used:

o Mobilink

o Ufone

o Telenor Pakistan

o Warid Telecom (Pakistan)

o Paktel

o China Mobile (Pakistan)

Reports

o Orascom Telecom Annual Report 2007

o Orascom Telecom Annual Report 2006

o Mobilink’s Balance Sheet and Income Statement


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