Serial Number 1 2 3 List of illustrations Synopsis Introduction

CONTENTS
Page 1 Page 2 Page 3

 Acknowledgement, Sources and Methods 4 5 6 7 Mobilink Research Design and Results Mobilink Versus Ufone SWOT Analysis (Mobilink)  Strength  Weaknesses  Opportunities  Threats Recommendations Conclusion Summary Appendix
 Prepaid Tariffs  Questionnaire

Page 4 Page 6 Page 17 Page 18

8 9 10 11

Page 20 Page 20 Page 21 Page 22

12 13 14

Sources Glossary Index

Page 26 Page 27 Page 28

Serial Number
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

LIST OF ILLUSTARTIONS
Market share (Figure 1) Subscribers (table 1.1) Which mobile connection do you use(Figure 2) Which mobile connection do you think is the best(Figure3) Why is the Connection you choused is the best. (Figure 4) Suggestions For Mobilink (Figure 5) Suggestions For Ufone (Figure 6) Suggestions For Paktel (Figure 7) Suggestions For Insta (Figure 8) Suggestions For Warid (Figure 9) Suggestions For Telenor (Figure 10) Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14

Should other networks be allowed to start their business in Page 15 Pakistan (Figure 11) Peak call rates (Figure 12) Off-Peak Call rates (Figure 13) BCG Matrix (Figure 14) Life Cycle (Figure 15) Page 16 Page 16 Page 19 Page 19

2

Synopsis
In this report I will discuss the best mobile network company of Pakistan. According to my research findings and the survey I conducted the best company is Mobilink. First of all I will mention the research design and then the people who provided me the information. After that I will concentrate on the reasons that why Mobilink is the best and discuss what services and packages Mobilink is offering. Then the research design and results will be Explained and discussed in detail. 10 questions from the questionnaire are added in the report with proper tables and graphs. Then With the help of graphs call rates offered by different networks will be discussed. As Ufone is the only strong competitor to Mobilink the positive points of both Mobilink and Ufone will be mentioned. You will also find SWOT analysis, in which Mobilink will be analyzed.. You will also find BCG matrix and Life Cycle Figure which shows Mobilink is on the top. At the end Recommendations and conclusion will be given. Recommendations will be for both Mobilink and other networks. That how can Mobilink improve their services further and the strategies other network should adopt to reach the standard of Mobilink. Questionnaire will also be attached at the end. This Questionnaire carries the questions which were asked during the interviews.

3

Best Mobile Network in Pakistan

Introduction
There are different mobile networks in Pakistan. According to my research findings and the survey I conducted the best company is Mobilink GSM. Mobilink started their operations in the year 1994, this is an international company. I was authorized by Pakistan Telecommunication Authority to write a report on the best mobile network company of Pakistan. I have also Mention some recommendation which can help Mobilink to improve further and other companies can also achieve the same level of Mobilink. All these Recommendations are part of the survey I conducted of 200 people. This includes Doctors, Friends, Family and my collegues. The scope of my report is that PTA will be informed that why Mobilink is the best and they will advise the same strategies to the other networks. Acknowledgement, Sources and Methods In my research I conducted a detail survey and interviews. I visited different Network offices to collect information. The survey I did followed the quota sampling. I was told to interview 200 people. I am very thankful to the following people who helped me providing information about different networks. • • • • • • Mr. Amir Zeb (Ufone) Mr. Khizer Ilyas (Telenor) Mr. Yaseen Adeel (Mobilink) Mr. Fayaz (Warid) Mr. Shafiq Anjum (Paktel) Mr. Arif Durrani (Paktel)

Besides the survey the research was also carried out on internet and different sites were explored. In this report first different things about Mobilink has been discussed then the research work, which is followed by conclusion and finally the recommendations. Different visuals and tables are been shown to give a clear idea. The visuals added Includes the Survey Questions and their result.

4

Mobilink
According to my research findings and the survey I conducted Mobilink is the best mobile network company in Pakistan. Mobilink was the first GSM Company and started its operations in 1994. Customers of Mobilink are more then 14 million, Mobilink provides services in more then 750 cities and villages and it is only cellular service in Pakistan to provide coverage on the M2 motorway. Mobilink Vision is “To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations”. There are more then 20 million users of mobile networks and Mobilink has the highest rate of customers. Its market share is about 51.4%, which is shown in the Figure1, which also includes the market share of different mobile companies.

Market Share (Figure 1)
9.62 11.02 51.4 22.7
Mobilink Telenor Warid Ufone Zong

3.61

If we go through the Chart we can see Mobilink’s market share is 51 % which is the highest among the other companies. So this shows that Mobilink is ahead of the other companies, Ufone has about 22.7% of market share which makes them the runners up, other companies except Insta are new to the market so their market share is increasing. Insta is basically AIMS technology, and nowadays AIMS market is going down so Insta is basically on declining stage. However Insta is involve in niche marketing. There are about 5 GSM companies in Pakistan, because of which competition has increase, which is basically in favor of the customers. So the customers have different options to select, as different companies are coming up with different attractive packages. Because of cut throat competition the companies can not make abnormal profit. Now in last few years a great change has come up in the Mobile network sector, Customers are increasing day by day because of which different companies are trying different strategies to attract more

5

customers, the table 1.1 shows the increase in customers and the total subscribers of different networks.

Subscribers Mobilink 2000 2001 2002 2003 2004 2005 Nov-05 Dec-05 Jan-06 Feb-06 March-06 114,272 309,272 800,000 1,115,000 116,711 350,000 550,000 Ufone Paktel 80,221 96,623 218,536 319,400 470,021 Instsphone Telenor 112,000 220,000 330,000 420,000 535,738 454,147 422,101 408,226 396,756 835,727 508,655 Warid Total 306,493 742,606 Growth Rate 15.39 142.29

1,698,536 128.73 2,404,400 41.56 5,022,908 108.90 12,771,203 154.26 1,613,062 1,804,068 19,613,898 6.60 1,871,533 2,065,879 21,636,999 10.31 2,096,828 2,294,311 23,145,397 6.97 2,332,117 2,578,043 25,003,008 8.02 2,632,415 3,015,941 27,344,939 9.4

3,215,989 801,160

7,469,085 2,579,103 924,486 10,352,616 4,430,000 992,051 11,898,460 5,489,076 958,496 12,990,643 5,750,516 954,933

11,119,196 5,178,764 981,849 419,778

14,067,919 6,231,461 1,004,686 392,517

TABLE 1.1 (www.pta.gov.pk) In the table we can see that the highest numbers of subscribers are with Mobilink which makes them the market leader. In 2005 the growth rate is 154.26 that are because of the new companies coming in competition. The table clearly shows that people are more satisfied by the service provided by Mobilink. The company has offered different packages which are covering every class. The different packages offers are • Jazz • Indigo • World • BlackBerry These are different packages which includes post paid and pre paid. Mobilink also offers different packages such as BlackBerry for business man, so that they can easily control their business from anywhere in Pakistan. In value added services they are offering GPRS, WEB-SMS chat and power Tools. Power Tools includes news, tones, pictures etc. Now recently Mobilink International Roaming has launched GPRS Roaming for its subscribers visiting the United Kingdom. They are the first company to start its operations in Muzaffarabad in Azad Kashmir, after the earthquake. The company has got ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center Implementation of a full Intelligent Network (IN) platform from Siemens for the Prepaid platform. Mobilink provides roaming service in more then 100 countries. Their SMS center also provides help to track the vehicles, this services is provided by Tracker (Pvt.) Ltd. It is the only company which has four network codes they are 0300, 0301,0302 and 0306.They have about 14 Switches and more than 2,500 cell sites. Their connections are available all over Pakistan; they have their

6

franchises in different cities to address their customer complaints. For their Customers they have also launched a website (www.mobilinkgsm.com) .This Website has all the info about Mobilink.. The main attraction of the website is the free SMS service to any Mobilink number.

Research Design and Results
In my research I conducted a survey, some interviews and Internet search. In my survey I visited different network providers’ offices and collected some information regarding their company. I conducted about 200 Questionnaire Interviews from different people which included friends, family, Doctors and colleagues. Now I will discuss some of the important questions I asked in my survey. Q-1:- Which Mobile Connection Do You Use?

Mobilink 107

Ufone 50

Warid 21

Telenor 20

Paktel 3

Insta 1

Survey result for the users of different networks

120 100 80 Users 60 40 20 0

107

50 21 Mobilink Ufone Warid 20 3 Telenor Paktel 1 Insta

Mobile Connections

Figure 2

The Result of this question clearly shows that Mobilink has the highest Rate of customers, which is followed by Ufone. In 200 people survey, 107 people adopted Mobilink which shows that they have the largest market share.

7

Q-2:-Which Mobile network do you think is the best?

Mobilink 102

Ufone 48

Warid 24

Telenor 25

Paktel 0

Insta 1

Best Mobile Network According to Survey 120 100 80
Users

102

60 40 20 0 Mobilink

48 24 25 0 Ufone Warid Telenor Paktel
Mobile Networks

1 Insta

Figure 3

According to the Survey the best mobile network is Mobilink. 102 people have said Mobilink out of 200 which prove them the best in the market.

8

Q-3:- Why is the Connection you choused is best?

Mobilink Good service Low call rates Wide coverage Other 57 11 32 2

Ufone 25 19 4 0

Warid 7 14 2 1

Telenor 12 11 2 0

Paktel 0 0 0 0

Insta 1 0 0 0

Why is the connection you choused is best
60 50 40 Users 30 20 10 0 Mobilink Ufone Warid Telenor Paktel Mobile connection Insta Good service Low call rates Wide coverage Other

Figure 4

9

Most of the People who choused Mobilink think that Mobilink is best because of their good service and wide coverage. And people also choused Ufone because of their low call rates and good service. Q-4:- Your Suggestions for Mobilink to be the best in the market?

Mobilink Improve their service 61 Bring their Call rates down 123 Enhance their coverage 11 Other 5

Suggestions for Mobilink 140 120 100 Users 80 60 40 20 0 123 61 11 Improve Bring their Enhance their service Call rates their down coverage Suggestions 5 Other

Figure 5

In this question 123 people suggested that Mobilink should bring their call rates down and 61 suggested that they should improve their service then they can be the best in the market.

10

Q-5:- Your Suggestions for Ufone to be the best in the market?

Ufone Improve their service 116 Bring their Call rates down 53 Enhance their coverage 26 Other 5

Suggestions for Ufone
120 100 80 Users 60 40 20 0 116 53 26 5 Improve Bring their Enhance their service Call rates their down coverage Suggestio9n Other

Figure 6

In this Question 116 People Suggested that Ufone should improve their service and 53 said that they should bring their call rates down to be the best in the market.

11

Q-6:- Your Suggestions for Paktel to be the best in the market?

Paktel Improve their service 109 Bring their Call rates down 44 Enhance their coverage 40 Other 7

Suggestions for Paktel
120 100 80 Users 60 40 20 0 109

44

40 7

Improve their Bring their service Call rates down

Enhance their coverage

Other

Suggestions

Figure 7

In this question 109 People said that Paktel should improve their service and 44 people said that they should bring their call rates down to be the best in the market. 12

Q-7:- Your Suggestions for Insta to be the best in the market?

Insta Improve their service 131 Bring their Call rates down 31 Enhance their coverage 24 Other 14

Suggestions for Insta
140 120 100 80 Users 60 40 20 0 131

31 Improve their Bring their service Call rates down

24 Enhance their coverage

14 Other

Suggestions

Figure 8

13

As Insta is the only AIMS Company in Pakistan, about 131 people suggested that they should improve their service and 31 said that they should bring their call rates down to be the best in the market. Q-8:- Your Suggestions for Warid to be the best in the market?

Warid Improve their service 77 Bring their Call rates down 47 Enhance their coverage 73 Other 3

Suggestions for Warid
80 60 Users 40 20 0 77 47 3 Improve Bring their Enhance their Call rates their service down coverage
Suggestions

73

Other

Figure 9
As Warid is a new company about 77 people suggested that they should improve their service and 73 suggested that they should enhance their coverage to be the best in the market.

14

Q-9:- Your Suggestions for Telenor to be the best in the market?

Telenor Improve their service 69 Bring their Call rates down 67 Enhance their coverage 57 Other 7

Suggestions for Telenor
70 60 50 Users 40 30 20 10 0 69 67 57

7 Improve Bring their Enhance their Call rates their service down coverage Suggestions Other

Figure 10

For Telenor about 69 people suggested that they should improve their service and 67 people suggested that they should bring their call rates down to be the best in the market.

15

Q-10:-Should other networks be allowed to start their business in Pakistan?

70Yes 195

No 15

Should other networks be allowed to opperate in pakistan
195 200 150 Users 100 50 0 Yes 15 No

Figure 11

In this question about 195 people said that new companies should be allowed to start their business in Pakistan because that will increase the competition and the services will improve.

16

Information About call rates
In Figure 3, 4 and Table 1.3 the call charges are mentioned in detail. If you go through the table, the cheapest rate offered is by Warid when you call on the same network (Warid to Warid Calls are charged on 30 second duration). As Warid is comparatively new company so their network coverage is not available in most of the cities, but their service is good and in future Warid can give some tough competition to Mobilink. After that if we look at the calls to other networks and landline, Ufone is offering minimum rate (Peak). They are just offering 2.88 Rupees per minute. The problem with Ufone is that they cut 0.50 rupees on balance check and their scratch cards are just available in the range of 250 to 1000 Rupees, in which if you recharge your number by purchasing 250 Rupees card it will only work for 6 months. Then in Off-Peak rates Paktel is offering minimum rates, But Paktel is facing Service problem, and they don’t have their coverage in most of the cities. Mobilink rates are bit high because their service offered is the best available. But as the competition is increasing Mobilink will bring their charges down. Mobilink offers scratch cards in range of 100 to 2000 and all of them are valid for 1 year
Peak CALL rates 25 20 15 10 5 0 Mobilink Paktel Warid Same network Other networks Fixed line International

Figure 12
Off-Peak CALL rates
25 20 15 10 5 0 Mobilink Ufone Paktel Telenor Warid Insta Same network Other networks Fixed line International

Figure 13

17

Mobilink Versus Ufone
The only strong competitor for Mobilink is Ufone. Below are the different plus points of both the companies.

Mobilink
 Covering more then 400 cities  More then 10 million customers  Roaming facility in more then 100 countries  Market leader  Mobilink market share is more then 52%  Three network codes 0300, 0301,0302 and 0306  Offering both packages Prepaid and Postpaid

Ufone
 Covering more then 325 cities  More then 4.5 million customers  Roaming facility in more then 70 cities  Lowest call and SMS rates  Ufone Market share is more then 22%  Two network code 0333,0332  Offering both Prepaid and Postpaid packages  Value added services • Web SMS • GPRS • MMS • Ring tones • Logs • Java Games • SMS chat • Pay via SMS • SMS to television • Themes • PTCL SMS • SMS Games • Voice mail  Ufone was the first company to launch GPRS in Pakistan

 Value added services • Web SMS • Ring tones • Pictures • Gup shup corner • GPRS • Logs • Yahoo messenger • SMS triva game • Lounge 144 • Dedication service • Fun messaging • Missed call alerts • Mobile Banking  Mobilink has more then 200 franchises  Mobilink was the first company to launch EVD (Electronic Voucher Distribution)

18

process first time in Pakistan.

SWOT Analysis (Mobilink) (Strength Weaknesses Opportunities Threads)

19

 Strength
      Market leader/Market share Coverage in more then 750 cities and villages Extra services Aggressive marketing strategies Quick response to complaints Brand Image

 Weaknesses
   At times poor service At times no Network coverage A bit Expensive

 Opportunities
   International Market Better service in Future Diversification  Fixed line Telephone  Wireless  Calling cards  Threats  Direct     Ufone Telenor Warid Paktel •

Indirect  PTCL  Calling Cards  Wireless

BCG MATRIX (Figure 14)

20

Life Cycle (Figure 15)

Recommendation
After the research and the survey I conducted these are the following recommendations for every network. 21

Mobilink should  Bring their CALL and SMS rates down.  Improve their Service  Offer MMS. Ufone should  Improve its service.  Bring their call rates down  Increase the time period on 250 Rupees scratch card.  Bring their International call charges down. Warid should  Increase its network coverage to more cities.  Improve its service. Telenor should  Increase its network coverage to more cities.  Bring down their call rates  Decrease their international call rates. Paktel should  Improve their service.  Increase their network coverage to more cities.  Decrease their call rates Insta should  Improve their service.  Increase their network coverage.  Offer some attractive packages.  Try to switch to GSM

Conclusion
The research conducted by me thorough survey and interviews, I here by conclude that Mobilink is the best mobile network company in Pakistan. They have highest number of customers because they are offering the best possible services to them. That’s why they are the market leader among all the mobile companies.

22

Summary
Currently there are different mobile network companies operating in Pakistan. According to my research findings Mobilink is the best Mobile Network company. In this Report I have mentioned different point’s which shows that they are the best in the business. My report is based on the Tariff provided by PTA till 3rd January 2006.In the start of the Report you will find different packages offered by Mobilink and their achievements. After that few visuals and tables are been shown, they are the result of the survey I conducted through questionnaires. The report has the subscribers list which has been taken from the official site of Pakistan Telecommunication Authority.

As Ufone is the only strong competitor to Mobilink, Positive points of both the companies are mentioned. Further you will see SWOT analysis in which Mobilink was analyzed. The Companies strong points, their weaknesses, the opportunities for Mobilink and the companies which are threat to Mobilink are mentioned in SWOT analysis.

At the end you will find BCG matrix and Life cycle, which clearly shows the position of Mobilink. In BCG Matrix Mobilink is a Cash Cow and In Life Cycle Mobilink is at Maturity Stage.

Appendix
Prepaid Tariffs as of January 3, 2006 (www.pta.gov.pk) 23

Mobili Ufone Paktel Insta nk Peak &Peak Off- Peak & Off- P OffOffPeak peak eak peak peak Local & Long Distance Calls to Same Network (Rs. per min.) Airtime 2.70 2.50 1.50 3.00 1.80 3.99 0.99 15% GST 0.41 0.38 0.23 0.45 0.27 0.60 0.15 Total 3.11 2.88 1.73 3.45 2.07 4.59 1.14

Telenor Warid Peak OffPeak &Peak Offpeak

2.45 0.37 2.82^

2.00 0.30 2.30

1.50 0.23 1.73

Local & Long Distance Calls to Other Cellular Network (Rs. per min.) Airtime 4.70 2.50 2.50 3.00 1.80 3.99 0.99 3.45 Interconnect 0.00 0.00 0.00 0.00 0.00 1.60 1.60 0.00 15% GST Total 0.71 5.41 0.38 0.38 0.45 2.88 2.88 3.45 0.27 2.07 0.84 6.43 0.39 2.98 0.52 3.97

3.00 0.00 0.45 3.45

2.75 0.00 0.41 3.16

Local & Long Distance Calls to Fixed-line Network (Rs. per min.) Airtime 4.70 2.50 2.50 3.00 1.80 3.99 0.99 3.45 Interconnect 0.00 0.00 0.00 0.00 0.00 2.01 0.52 0.00 15% GST Total 0.71 5.41 0.38 0.38 0.45 2.88 2.88 3.45 0.27 2.07 0.90 6.90 0.23 1.74 0.52 3.97

3.00 0.00 0.45 3.45

2.75 0.00 0.41 3.16

International Calls (Rs. per min.) Airtime 2.70 2.50 2.50 Access Charge 0.00 Int’l Long Dis. 5.00 15.00 15% GST 1.16 &2.66 Total 8.86 20.36 0.00 0.00

3.75 0.00

3.99 18.00 0.00 0.00 0.60 2.70

& 3.45 9.00 8.00 & & 18.00 17.00 0.00 0.00 0.00 7.00 &0.00 18.00 & 1.57 &1.35 3.22 2.70 0.00 & 1.20 & 2.55

&18.0 18.00 18.00^^ 0 3.08 3.08 0.56 & 3.15

&23.5 23.58 3.45 & 24.15 4.59 8 20.70

& 12.02 10.35 9.20 & & & 20.70 19.55 24.67

BEST MOBILE NETWORK
24

SURVEY (Questionnaire)
This survey is to know about the best mobile network company in Pakistan and what should other networks do to become the best. NOTE: Please make sure that you select only one option. For Questions 8 – 14 you can select more then one option.

1. Your Name? ___________________________________

2. Your Age group?  15-30  3. Your Gender?  Male  Female 51-So on  31-50

4. Are You a Mobile User?  Yes  No

5. Which Mobile Connection do you Use?    Mobilink Ufone Telenor    Warid Paktel Insta

6. Which Mobile Network do you think is the Best?

25

     

Mobilink Ufone Telenor Warid Paktel Insta

7. As there are many mobile companies in the market, do u think because of the competition the services are improving?   Yes No

8. Why do you think the network you suggested is best?     Good Service Low call rates Wide coverage Other _________________________

9. Your suggestions for Mobilink to be the best in the market?     Improve their Service Bring their call rates down Enhance their coverage Other _________________________

10. Your suggestions for Ufone to be the best in the market?     Improve their Service Bring their call rates down Enhance their coverage Other _________________________

11. Your suggestions for Paktel to be the best in the market?     Improve their Service Bring their call rates down Enhance their coverage Other _________________________

26

12. Your suggestions for Insta to be best in the market?     Improve their Service Bring their call rates down Enhance their coverage Other _________________________

13. Your suggestions for Warid to be the best in the market?     Improve their Service Bring their call rates down Enhance their coverage Other _________________________

14. Your suggestions for Telenor to be the best in the market?     Improve their Service Bring their call rates down Enhance their coverage Other _________________________

15. What do you think should other Mobile Companies be allowed to start their business in Pakistan?   Yes No

16. Do you think when new companies will come in the market the service will improve?   Yes No

Please submit this Survey paper before 15th April 2006. Thank you for your cooperation.

27

Sources Acknowledgements
Mr. Fayaz Muhammad Sales Executives Sales & Marketing Warid Telecom (Pvt) Ltd Fardeen Plaza, University road Peshawar. Mr. Arif Durrani Sr.Field sales Manager Paktel Telecom (Pvt) Ltd Opposite to Green shadi hall Sader. Peshawar Mr. Amir Zeb Ufone Telecom Fakher-e-Alam Road, Peshawar cantt. Mr. Khizer Ilyas Consultant to Telenor Islamabad. Mr. Yaseen Adeel Mobilink Telecom (Pvt) Ltd Near askari bank. Sadder Peshawar Mr. Shafiq Anjum Paktel Peshawar

Websites www.mobilinkgsm.com www.pta.gov.pk www.ufone.com www.paktel.com www.telenor.com www.waridtel.com

28

Glossary
Activities Behavior Balance Poise Business Action Booster Jab Certification Guarantee Expenses Operating cost Franchise Permit Indigo Connection Network System Subscribers Users Marketing Selling Tariff Tax Niche Focus Tax Toll

29

Index

AIMS page 4 BlackBerry Page 5 Booster Page 7 Brand Image Page 10 Calling cards Page 10 Certification Page 5 Engineering Departments Page 5 Franchises Page 5,9 GPRS Page 5, 9 GSM Page 3,4 Indigo Page 5 Intelligent Network Page 5 International Roaming Page 5 Jazz Page 5 Market leader Page 5, 7, 9, 10 Market share Page 4 , 9 , 10

Mobilink World Page 5 MMS Page 6, 9, 13 Niche marketing Page 4 PTA Page 3 Scratch cards Page 9 Subscribers Page 4 , 5 Switches Page 5 Tariff Page 2, 3, 6 Tracker Page 5 Web SMS Page 9 Wireless Page 10

30