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INTRODUCTIONHISTORY:

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 15 March 2005, and on 23 March 2005, Telenor started its services in

Lahore, Faisalabad and Hyderabad. Telenor has its Corporate headquarters in

Islamabad, with regional offices in Karachi and Lahore. On January 28, 2005,

Telenor established its first call centre in Lahore. Telenor is the 2nd largest networkof Pakistan after Mobilink.

The offi cial opening was held in Islamabad with the Ex-President of

Pakistan General Pervez Musharraf as the guest of honor and a Telenor delegation

headed by CEO Telenor Jon Fredrik Baksaas along with CEO Telenor Pakistan

Tore Johnsen. The inauguration call was made by Ex-President Pervez Musharaf to

the Prime Minister of Norway. Now CEO of Telenor Pakistan is Jon Eddy

Abdullah.

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TELENOR

Telenor Pakistan is the fastest growing mobile operator in Pakistan and

represents the largest Foreign Direct Investment in the country from Europe, in anyindustry, ever. The company is the first Greenfield mobile operation outside of

Norway by Telenor ASA, the parent group, with an investment of USD 2 billion todate. Increased competition from international operators like Telenor, within aninvestor-friendly and stable regulatory environment provided by GOP, has been amajor driver of growth and productivity in Pakistans economy, and has broughtdown end-user prices to among the lowest in the world.

Telenor ASA is an international provider of high qualitytelecommunications, data and media communication services. It ranks as one of the

biggest GSM service providers in the world with over 153 million subscribers. It isalso the largest provider of TV services in the Nordic region. It ranks as No. 25overall and No.5 in Europe in Business Week's global ranking of the top 100

performers in the technology industry. The Group is recognized as the best MobileTelecom company in the world by the Sustainability Yearbook 2008 and as the

No.1 mobile operator on the Dow Jones Sustainability Indexes (DJSI) 2007.Since its launch of services in March 2005, Telenor Pakistan has exceeded

all expectations: It has created the second largest mobile network and the largestand most advanced data network in the local market, turned into the second highestrevenue-generating mobile player with the highest Average Revenue Per User

(ARPU) in the market, and become the second largest mobile player in the marketwith 18 million active subscriptions in little more than 3 years of operations.During the first half of 2008, Telenor Pakistan added 3.24 million subscriptionsagainst the industry average of 1.63 million, taking 33% of the market share of netadditions over the period the highest in the mobile sector in Pakistan.

The company has created 2500 direct and more than 25000 indirectemployment opportunities with 100,000+ retail outlets and 200+ franchises inaddition. 99.9% of these employment opportunities belong to Pakistanis.

Initiated with a relief effort worth 95 million rupees in the

wake of the devastating earthquake of October 2005, TelenorPakistans community contributions have extended over the yearsto include education, empowerment, enterprise, and environment- with special focus on bringing the telecom promise within thegrasp of the most disadvantaged sections of the society.

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COVERAGETelenor covers a total of coverage area in more than 3000

cities, towns and highways throughout Pakistan, making it the

2nd largest GSM service provider in Pakistan. Telenor Pakistan

has more than 5,000 cell masts throughout Pakistan, making it the

2nd largest network in Pakistan. It has GPRS service and EDGE

service across its network in Pakistan. Telenor has a strategic

alliance with Nokia Siemens Networks for expansion in Pakistan.

Telenor currently has these dialing codes, 0342, 0343, 0344,

0345, 0346, 0347, and 0350.

Initially after the launch Telenor targeted small towns andrural areas of Pakistan to gain support of the people living there

in sight to become the 1st Mobile Operator to cover such areas.

PARTNERSHIPSOn 10 August 2007, Telenor Pakistan signed an agreement

with Ezetop to provide mobile credit to the Diaspora across the

world. Top-Up will be available in retail stores in the United

States, the United Kingdom, the United Arab Emirates, and Saudi

Arabia and online at their website.

MOST PREFERRED EMPLOYER2009

Telenor Pakistan has been awarded the 'Most Preferred

Employer' of Pakistan by a public poll in 2009. It was another

landmark for the company as it has gained immense support from

the country's people due to its strong marketing strategy and

flexible Codes of Conduct for its employees.

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TELENORS ACHEIVMENTSTelenor Pakistan has received several awards for its solid

performance in key areas of activities:

1 Federation of Pakistan Chambers of Commerce & Industrys Telecom Excellence Award in Foreign DirectInvestment in June 2006

2 Central Board of Revenues High Tax Payer Award 2004-5 in January 2006

3 The Pakistan Society of Human Resource Managements Preferred Graduate Employer Award for Most PreferredTelecommunications Company 2007 among MBA students

4 SAARC Communication Industry Conference 2007s Most Innovative Mobile Operator Award and MobileOperator with the Most Consumer Pull Award

5 Telenor Global Brand Award for the year 2007

6 All Pakistan Dawn Aurora Advertising Awards in three of five nominated categories in March 2007

7 The National Forum for Environment & Healths Annual Environment Excellence Awards 2008

8 Lahore Chamber of Commerce & Industries Appreciation Award for the Largest FDI and RawalpindiChamber of Commerce & Industries Achievement Award2008

9 The Helpline Trusts 2nd Corporate Social Responsibility Award 2008

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TELENORS CONECTIVITYTelenor Pakistan is committed

to bringing true mobile innovation tothe under-served masses of Pakistan.The company has picked up two

Universal Service Fund projects inorder to provide connectivity to the yetunconnected in the remotest areas ofPakistan. It aims to invest strongly forfurther network expansion into therural areas and for the rollout of thirdgeneration of mobile technology (3G)in Pakistan.

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PRODUCTSTelenor is providing eight prepaid packages and four postpaid packages.

TELENOR PACKAGES

Telenor Prepaid Packages

Telenor Talkshalk (Talk Shawk)A1

Telenor Talkshalk (Talk Shawk)Har Second

Telenor Talkshalk (Talk Shawk)Har Minute Telenor Talkshalk (Talk Shawk)

30 Second Djuice Djuice Jagtay Raho

Telenor Postpaid Packages

Persona EASY Persona SIMPLE Persona FREE

CURRENT SPECIAL TELENOR OFFERS

Telenor Sim Lagao Offer

Get 100 free minutes and 100 free SMS

Qualifying Customers:

Customers who have not done any activity since 10th February 2009 willbe able to avail this campaign

To check if you are part of the campaign: Call IVR 2222 or send an SMScontaining FREE to 2222

Call IVR 2222. (charges are Rs. 1 + tax per min) or Send an SMScontaining FREE to short code 2222 to avail the 100 free minutes and

100 free SMSs. (charges are Rs. 1 + tax) the 100 free minutes and 100

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free SMSs will be posted to the subscribers account with in the next 48hrs

Validity of Free Minutes & Free SMSs: 15 days after the free minutes andSMS have been posted to the subscribers account

If the qualifying customers have lost/damaged their SIM they can get areplacement SIM free of cost (Only once) from any Telenor Sales andService Centre or Franchise during the duration of this campaign

This Offer is being launched for all prepaid packages This is a limited time Offer The qualified subscriber will have to call IVR 2222 or send an SMS to

short code 2222. He will get 100 Free minutes and 100 free SMSs postedto his/her account. The 100 free minutes and 100 free SMSs will be

posted to the subscribers account within 48 hrs All prepaid customers who have not done any activity since 10th February

2009 will be able to avail this campaign

This offer is valid on following packages:Talkshawk per minTalkshawk 30 secTalkshawk per secTalkshawk A1djuicedjuice jagtay raho

MOBILE BANKINGIn 2008, Telenor bought Tameer Microfinance Bank

for its upcoming project related to Mobile Banking. They

named it 'easy paisa' and called the product is a part of

'Branchless Banking' and successfully launched the

product in 2009.

easy paisa Facilities

Utility Bill Payment (UBP)

Money Transfer (within Pakistan only but Inter Bank Monet Transfer is

also among future projects)

Mobile Wallet

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EASYPAISA BANKINGSERVICESMADEEASY

In 2009, Telenor Pakistan partnered with Tameer Micro Finance Bank to

introduce branchless banking for the first time in Pakistan.

Opening a bank account can be a tedious process, and using conventional

bank services is not always efficient or practical. Easypaisa, however, makes it

easy and secure for ordinary Pakistanis to pay bills, transfer money and even

open a mobile bank account without having to cue up at the bank at

inconvenient opening hours.

MONEYTRANSFER

Sending money in Pakistan has been extremely difficult. One needs toobserve bank timings, lengthy paperwork and queues at the counter.In Pakistan,any person can use easypaisa services by visiting their nearest easypaisaauthorized shop, Telenor Franchise, Telenor Sales & Service Center or TameerBank branch.

BILLPAYMENT

If a customer wants to pay a utility bill he or she simply hands over thebill and the payment to the shopkeeper, who immediately processes the bill andwires a receipt to the customers mobile. The whole process takes less than aminute.

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MOBILEBANKACCOUNT

In February 2010, easypaisa launched the new service Mobile Accounts.These are virtual bank accounts that work just like a normal bank account. Userscan go to any of the thousands of easypaisa shops in Pakistan to deposit orwithdraw cash from their easypaisa Mobile Account. They can also pay bills,transfer money, view checking account balance and the last five transactions,manage their pin codes and more.

EASIERACCESSTOBANKINGSERVICES

Considering that 89 per cent of the adult population in Pakistan has no

bank account and 62 per cent use mobile phone services, easypaisa aims toprovide financial inclusion for the urban as well as the rural population.

FINANCIALEMPOWERMENT

Easypaisa will allow users across the board to access convenient andsecure financial services. In an environment where only 12 per cent of the adult

population is formally served with financial services, easypaisa will promisetremendous financial empowerment, said Jon Eddy Abdullah, Chief Executive

Officer in Telenor Pakistan. Easypaisa online services have been approved bythe State Bank of Pakistan.

POWER B ILL

Telenor introduces a unique, innovative and state-of-the-art web based portal -Persona Power Bill for providing simplified and unified billing details toSMEs and Corporate Customers.

Using Persona Power Bill, customers can see the summarized billing details of

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all the employees of their company in a single "Consolidated Invoice".

Moreover, Persona Power Bill also provides various Billing Analysis Reports.Admin departments of SMEs or Corporates can conduct various analysis like,

Split of bill across various dimensions e.g., voice/sms/dataPrice Plan AnalysisSeparate Bill for Official and Personal CallsMonthly Summary Report

Persona Power Bill - One StopBilling Analysis Solution

Persona Power Bill enable customer to:

Have more Visibility to analyze usage trends of employeesImplement Control measures in his company regarding mobile usage.

Use application forReporting purposesEnsure Transparency in billing.

Benefits of Persona Power BillPersona Power Bill helps customer is numerous ways

Saving on Time & Efforts:Using Persona Power Bill, Admin staff can do the billing analysis of all

employees of company within few minutes - thus saving time and leavingadmin department with more time to focus on other official matters.

Saving of Costs:Persona Power Bill gives Admin department of SMEs and Corporate customersmore control & visibility on spending of their employees, which enables them

to control their costs. By Persona Power Bill, companies can reduce theirmonthly bill considerably.

Saving of Resources:By Using Persona Power Bill, Corporate Customers wont require separate

resources to conduct analysis on cellular spending of employees.

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MARKET STRUCTURETelenor is a provider of mobile communications services. The company's

majority shareholding is held by Norway government which ownership share of54% at the end of FY2008. The company is also the largest provider of TVservices in the Nordic region. It provides mobile services, fixed line services and

broadcasting services. The company primarily operates in Norway. It isheadquartered in Fornebu, Norway and employs 38,800 people. The companyrecorded revenues of NOK97,194 million ($17,487.1 million) during thefinancial year ended December 2008 (FY2009), an increase of 14% over 2008.

The increase in revenues was mainly related to growth in the Asian

operations and broadcast segment, in addition to the acquisitions of Tele2 in

Denmark and IS Partner in EDB Business Partner. The operating profit of the

company was NOK15,182 million ($2,731.5 million) in FY2008, an increase of

1.3% over 2007. Its net profit was NOK13,065 million ($2,350.7 million) in

FY2008, a decrease of 27.5% over 2007.

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ASIAISAMAJORCONTRIBUTORTO TELENORS SUCCESS

According to a recent article in Telecom Insight, Norways Telenor isbecoming an increasingly significant global mobile player. The article states thatWhereas two years ago, approximately 40% of its customers were fromScandinavia, this figure has fallen to about 10% as of September 2006. Incontrast, Asia, where it only had operations in Malaysia (DiGi) andBangladesh(Grameen Phone) at the beginning of 2004, now accounts for overhalf of Telenors entire wireless subscriber base.

Telenors wholly owned subsidiary Telenor Pakistan launched GSMmobile services on 15 March 2005. Telenor acquired the license to build and

operate a mobile network in Pakistan in at a price of USD 291million. Currently total investment is around USD 1 billion with a market shareof 11%.

SHAREIN CELLULAR MARKET

http://www.telenor.com.pk/http://www.telenor.com.pk/

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In june 2009, telenor has 22.15 % share in the cellular market ofPakistan. Due to its business policies, telenors share in the cellular market ofPakistan is growing rapidly.

According to telecom analysts entrance of Telenor and Warid intensifiedcompetition in Pakistan mobile market significantly.Both Mobilink and Ufone were slow to respond with the result that Warid andTelenor made substantial gains in market share. This shows the growth potentialof Pakistans mobile market.

SMS GROWTH RATE

An example of increased competition ofdifferent cellular companies in Pakistan isSMS. When Mobilink introduced Octane,Telenor reciprocated with Djuice with evenlower rates for text. With the introduction ofDjuice, the growth rate of SMS was increasedand in September 2007, the number of SMSsent was 1000 millions, while in june 2009,number of SMS sent was 6000 millions.

Through Djuice, sms can be send to any network with the cost of only 0.23

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paisas. This cost is very low as compared to others, this became the cause ofgreat increment of sms send by telenor.

Telenor also introduced 30 second billing which in my opinion ended up

confusing many consumers. Telenor has also introduced EDGE data serviceswhich should contribute to better revenues and it may lead the way to 3Gservices in Pakistan.

GROWTHOF CELLULAR MOBILES INPAKISTAN

Pakistan 's mobile cellular industry has witnessed phases of dramaticchanges over the years. Initially, licenses for operating mobile cellular servicesin Pakistan were awarded to M/s Pakcom Pvt. Ltd. (Instaphone) and Paktelsimultaneously in 1990. Mobile Technology, being new in the country, mademobile phone a luxury till the late 1990's. However, with the introduction ofMobilink in Pakistan 's telecom sector that introduced GSM technology gavemobile users a choice to switch over from AMPS to GSM. Major changes in themobile industry however, took place with the introduction of fourth mobile

operator U-fone by the incumbent PTCL in 2001 and introduction of CPP

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regime. A healthy competition resulting in the decline of mobile service prices,increased coverage and better quality of service.

The above figure shows yearly increase in number of mobile subscribers.In 1999-2000, there were only 0.3 million cellular mobile subscribers which

jumped to 2.4 million by 2002-03 as a result of introduction of CPP regime andaddition of another mobile operator (Ufone). Mobile subscribers continued torise at an unprecedented pace, reaching 5.0 million by 2003-04. Majorturnaround is witnessed when the mobile companies started giving free mobileconnections and bearing the cost of government levies themselves. In a short

period of 10 months, more than 5 million new subscribers were added to the list,reaching over 10.5 million by end April 2005. In 2010 the number of mobilesubscribers in Pakistan was following: