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BAHAUDDIZAKARIYA UNIVERSITY MULTAN

Internship Report

Department Of Commerce

Submitted By: Muhammad Khawar
Roll No: 36s






E X E C U T I V E S UMMARY
The overall consensus of industry analysts is
that Pakistan is one of the countries with a huge
3 untapped potential for telecom growth and an
attractive investment environment. Recently
Business Monitor International (BMI) ranked
Pakistan as a key destination for telecom growth.
The BMI rankings take into account a number
of factors including industry situation, growth
potential, competitive landscape and economy and
political risks etc.
The Pakistan market reached the 90
million subscriber mark in September 2008,
almost double from 2006 numbers. The growth
slowed after that and at the end of November 2008
the total mobile subscriber number was 90.5
million.Pakistan needs to increase telecom
research and development work within the
country. China and India are in the process of
becoming world major R&D centers for
technology and telecommunication. Two top
Chinese telecom equipment firms have announced
their plans to collaborate with Pakistan: Huawei is
working with UET Lahore and ZTE
will setup R&D center in Islamabad. The goal of
the policy makers should be to increase the rate of
transfer of technology from abroad,
broaden the pool of local skilled workforce and
accelerate the local production of telecom
equipment and handset parts etc.
PTCL was established to operate cellular
telephony. The company commenced its
operations, under the brand name of Ufone, from
Islamabad on January 29, 2001. Ufone continued
on the path to success. The Company further
expanded its coverage and has added new cities
and highways. Ufone has network coverage in
more than 5442 locations and across all major
highways of the country. Ufone, a
wholly owned subsidiary of Pakistan
Telecommunication Co. Ltd (PTCL),
is now under the control of ETISALAT group of
UAE. It has 21% of
subscriber share and added the most lines (2.4
million) from 2012-13.
For those in Pakistan it is the one company where
they can easily
invest locally. Ufone is maintaining its
subscriber‟s base in market.
However the company needs a big push from its
owners ETISALAT in
shape of more investment to increase and enhance
its network and its
quality.
1 INTRODUCTION
1.1 COMPANY PROFILE
Pakistan Telecom Mobile Ltd, operating under the
brand name of „Ufone‟ a wholly-owned
subsidiary of PTCL commenced its operations
on 29th January 2001 as a GSM 900 service
provider. Since the outset it has expanded its
coverage and customer base at a rapid pace and
established itself as one of the leading cellular
service providers in
Pakistan. Ufone is now considered to be one of the
most active, aggressive and innovative players
in the mobile sector of Pakistan. The growth of
cellular sector in Pakistan can also be attributable
to good governance and conducive policies of
the government of Pakistan In connection with
that in April 2006 Emirates Telecommunication
Corporation, which is commonly known as
Etisalat, has assumed management control of
Pakistan Telecommunication Corporation Ltd –
part of the $2.6bn deal to buy a 26% stake. The
successful privatization of PTCL, and
consequently Ufone, is hailed as ushering in
a new era for telecommunications in Pakistan.
As mobile users in the country have reached 88
million at a very rapid pace, Ufone has a
subscriber base of nearly 17.5 million and a
market share of nearly 21%. Ufone has seen a
subscriber growth of over 10 million since July
2007 onto its network. Subsequently the growth in
subscriber base caused a healthy trend in its
revenues and margins. Ufone has always played
a pivotal role in the development of cellular
market in Pakistan. For most part it has been a
step ahead in introducing innovative products to
the market. Ufone was pioneer in launching the
GPRS services and Multi-media Messaging
Service (MMS)
in Pakistan, including the lead in introducing
GPRS international
roaming and prepaid international roaming for
these services in the Pakistani market. Currently
Ufone has expanded its product portfolio to
include Black Berry handsets and providing one
of the largest EDGE networks in the country
today. Ufone understands the need to
communicate effectively and efficiently
at all levels of society, which is why various
products are catering for
the needs of the Pakistan corporate market. It
offers services such as
mobile office, Virtual Private Network (VPN),
and a lot more to
revolutionized communication.
Ufone provides International Roaming facility
with more than 215
international operators across 124 countries.
Ufone has GPRS roaming
agreements with more than 100 international
operators and also
provides prepaid roaming facility to more than 15
destinations across
the country.
2 COMPANY ANALYSIS
2.1OPERATIONAL ANALYSIS
Ufone‟s operational performance has been very
encouraging. Despite
the stiff competition in Pakistan telecom market
which has led to
reduction of prices to bare minimum level, due to
its aggressive
policies and exercising strict control over
expenses the Company
managed to improve its revenue and after-tax
profit by 87% and 54%
respectively, as compared to last year.
Future Plans keeping in view the growth potential
of the cellular
industry there is no option but to be aggressive in
order to remain a
potent force in the cellular industry. In order to
extend cellular network
Ufone has finalized a huge network expansion
contract amounting to
about USD 550 million, which will enhance the
subscribers‟ capacity by
10 million. This is the largest ever expansion
project of Ufone.
A strong focus of Ufone is on maintaining high
quality of service, which
is always a benchmark of Ufone, increasing usage
and exploring new
revenue streams on value added services, market
visibility through
various market initiatives to fulfill subscribers‟
satisfaction and demand
and above all to increase the value of investment
for the shareholders.
Moreover, efficient working of the workforce in
the organization makes
it possible to lead the market and maintain
competitive edge over the
competitors. The organizational operations can be
clarified by studying
the nature of Ufone‟s organizational structure and
hierarchy.
2.1.1Organizational Structure
The organizational Structure at Ufone is Lean or
Horizontal structure.
One of the organizational functions of Ufone in
relation to its hierarchy
is, the company is having Decentralized structure.
The flow of communication becomes easy and
simple in such structure. It is
divided into different departments and every
department has its head
and all are interconnected.
The concept of Departmentalization is effectively
in practice at Ufone.
There are different departments which are
working within their
functional units to contribute towards the success
of organization and to achieve the over all goal
of the Organization. Ufone has 83 departments
that are working efficiently and all are interacting
with each other to make it a much better
company by satisfying its customers demand.
The structure of Ufone comprises of Board of
directors who are being
reported by CEO, Chief Executive Officer.
CEO is a great supervision to the 8 Major
operations of the company.
These operations are divided into departments that
are:
2.1.2Finance Department
The head of finance department is designated as
CFO – Chief Financial
Officer or Vice president of financial head. There
are further 4 subheads in Finance Department:
CNC
The department is responsible for Credit exposure
for Ufone postpaid connection. The department
maintains the record of all postpaid subscribers
in order to ensure the subscribers validity.
Budgeting and Planning
The department is working over the budgets, the
planning of budget and its reports to the
authorities. This head provides the annual
budget to be spent. The function of this head is
also to forecast any opportunities or threats
towards the organization. The reporting of the
budget is being done on the monthly basis
to the head of financial officer to keep the record
of the budgets. Relationship with banks are also
being maintained in order to get help in the
need time.
Accounts
The accounting head is responsible for the book
keeping of the records. The internal audits are
done to ensure the stream lined working of the
processes as well as external audit by the
Accountancy firms.
Revenue Assurance
There are Revenue Assurance policies &
procedures being made by the personnel. This
assurance head also Liaise with other
departments, obtain, analyze and reconcile reports
to ensure prevention of revenue leakage. The
sub-head also ensure error free billing
operations, deployment of key revenue assurance
applications/solutions, fraud management.
2.1.3Marketing Department
The head of marketing department is designated
as CMO- Chief Marketing Officer or Vice
President of Marketing Head. The department
has further 3 subheads working in specialized
manner according to the skills and abilities of
the employees.
Brands
There are basically two products of the Ufone
which serves as the brands of the company.
This sub-head is responsible for the execution
of the Brand Activities. Ufone is performing the
promotional activities in Brands sub-head,
including advertising over Electronic media and
print media. The promotional strategies are
made by the sub-head to get the implementation.
Marketing Strategy and Analysis
The sub-head is working in order to formularize
the marketing strategy according to the market
requirement and consumer preferences. The
analysis about the market trend is done and the
strategies are made in relevance. Moreover,
competitors are biggest source of reacting
towards the marketing activities.
Ufone is having a proactive marketing concept in
context of
competition.
VAS – Value Added Services
VAS sub-head is responsible for proficient
functioning of conveniences provided to the
customers, these VAS are Virtual Private
Network, Call Management, Missed Call
Notification, Phonebook Saver and a
host of Infotainment and Entertainment services.
2.1.4Information Technology Department
While being a part of information technology and
telecommunications, Ufone
is having a major department of Information
technology. The head of
information technology is termed as CIO- Chief
Information officers. IT
department is working with the division of further 2
sub-heads.
Billing
The billing department is responsible for
aggregating CDRs and preparation of the
postpaid billing for customer from system.
IT Development
Any kind of IT development required by the
company in billing or CRM (Customer
Relationship Management) module is done by IT
development team.
2.1.5Customer Operations Department
One of the departments to preserve the existing
consumers, Ufone is having a department of
Customer operations; the head of this
department is designated as VP COPs – Vice
president Customer
Operations. The department is having 2 further
sub heads.
Customer Care
Ufone provides customer care through Customer
Care Center located in all key cities, across the
country. Ufone‟s customer care representatives
are more helpful. They will not only resolve
Consumers issues but also guide them into
customizing Ufone, according to their needs.
Customers care is offered to through
Call Centre
Cal centre representatives are providing services,
24 hours a day. The customers can contact the
Ufone Call Center to get answers to all their
queries. Some of them include:
Bill enquiry (credit limit, expiry da
Reporting of lost phone
Number blocking in case of lost or stolen SIMs
Connection status (active / inactive)
Tariff
Products information
Ufone Sales & Service Center information
Nearest dealer information
Ufone coverage areas
Emergency number information
International roaming information
Value added services information
Missed call alerts
Call forwarding
Conference call
FNF Activation / Changes
Post Pay Reward Redemption
o Business Centre
The business centre of Ufone are offering
various services to their customers, they are
basically company owned centre,
the business centre offers the SIM issuance and
other
customer related issues, retention of customers
and handling requests for Mobile number
portability.
Govt. Relations
PTA – Pakistan Telecom Authority is the
regulatory authority in
Pakistan concerning the network operators as well
as telecommunication practices. Ufone is also
abiding the rules that are being made by PTA. The
relationship with PTA is also being
maintained as PTA is Govt. regulation.
2.1.6Engineering Department
The engineering department is Backbone of
the company. The head of the department is
termed as CTO - Chief Technical Officers or Vice
president. The Engineering department is divided
into 4 sub-heads
BSS – Business Support System
The subhead is responsible for Radio Planning
and network
optimization.
NSS – Network Switching Subsystem
The Network Switching Subsystem, at Ufone
refers to as the GSM
core network, usually refers to the circuit-
switched core network,
which is being used by ufone GSM services such
as voice calls, SMS, and Circuit Switched Data
calls. There is also an overlay architecture on the
GSM core network to
provide packet-switched data services and is
known as the GPRS
core network. This allows mobile phones to have
access to
services such as WAP, MMS, and Internet access.
All mobile phones manufactured today have both
circuit and
packet based services, so Ufone as a network
Operator that is
having a GPRS network in addition to the
standard GSM core
IN – Intelligence Network
The Intelligent network‟s main purpose is to take
care of
charging of prepaid customers and has the balance
updates of each of the customer.
2.1.7Sales Department
The sales department at Ufone is headed by Vice
president Sales. The
department is being divided into 3 main sub-
heads.
Corporate Sales
the division of the sales department is handling the
sales for
executives or corporate clients. These clients are
having postpaid
products with billing system.
3
Franchises & Retail Outlets
this division is handling franchises and retail
outlets with a
network of more than 365 franchises and 25
company-owned
customer service centers along with a distribution
network of
150,000 outlets nationwide.
Sales operations
Sales operations at the company have been set up
to provide the
customers, quality services all under one roof so
consumers can
walk in to any Ufone Sales & Service Center for
services like:
Mobile Number Portability
Connection purchase
Bill payment
SIM Activation
Number blocking in case of lost or stolen
SIMs
Transfer of subscription
Changing access levels
Number change
Address change
SIM replacement
Product / package change
Activation of VAS
Connection closure
Handset & other mobile accessories
PIN / PUK code number inquiry
GPRS
IR activation
Missed Call Notification
Call Forwarding
Conference Call
FNF Activation / Changes
Post Pay Reward Redemption

2.1.8Human Resource Department
Human Resource department is being headed by
the HR executive
designated as Chief of Human resource
department. The department is
working for the personnel in the organization.
There are 3 main sub-heads in
the department
Recruitment and Compensation Benefits
Ufone has this policy of not mentioning the name
of the company in a job advertisement. Usually
hiring takes place through outsourcing with a
help of a third party. Final selection takes
place after the candidate has been interviewed by
the Manager of the department who requires the
new employee and then the
HR Manager. A very effective way to retain an
employee is to give him compensation and
benefits. At Ufone following benefits are
given: Medical Facility to employee and his/her
parents and Paid
Vacations, Gratuity, Provident fund etc.
Training
Training & Development involves improving the
knowledge, skills
and abilities of the individuals. A continuous
training is
conducted inside Ufone to improve the
performance of the
employee. There are two types of trainings
conducted at Ufone:
In-house Training and External Training.
HR Operations
HR operations at Ufone include the working over
all Human
resource Functions that are
o Orientation
o Human Resource Planning
o HR hiring / recruitment
o Selection Process
o Compensation and benefits
o Training and Development
o Human Resource Information system
Strategic Planning Department
o This department directly reports to Chief
Executive officer. o Ufone views strategy as an
overall approach and plan. This department
monitors the executions of strategic plans and
goals across the business. So, Strategic Planning
at company is the overall Planning that
facilitates the good management of a process.
Ufone strategic planning is providing the big
picture of company‟s operations and long
term goals.
o Forecasting the opportunities
o Building Synergies
o Long-term Planning
o Implementation of Strategic Plans
2.2 HUMAN RESOURCE ANALYSIS
Currently there are over 1500 permanent
employees working in Ufone
nationwide. On the entry level the HR Department
is mostly taking MBA graduates. According to
Ufone their belief is that "Their people are their
greatest asset”. The HR team takes great pride in
acknowledging the contribution of each
employee. Ufone focuses a lot on HR
Developmen nt and for that the HR team ensures:
Staff of Ufone consists of world class
Professionals and Ufone ensures that the right
systems are in place to encourage people
to develop to their full potential
Collaborative and mutually supportive work
environment is
created that encourages people to grow
Team of professionals is built which delivers
expertise by
participating in business decisions
Performance Management and Reward
Systems are developed which underlies the
Business strategy of Ufone
A clearly defined Recruitment & Selection
policy is defined
The need for Training & Development of
employees is assessed
Compensation & Benefit plan is developed
which ensures that employees are motivated
2.2.1Management
In Ufone the hierarchy is very lean, in general the
whole setup is
centralized all the matters are to be reported to the
head office and all
the policies and targets are approved at the higher
level. But at the
branch level the structure is decentralized.
2.2.2Personnel
There are about 150 employees who are working
in the Ufone Head Office and 2500 employees
serving nationwide. All of them are very
devoted as they are given a wonderful learning
environment to work,
pay offered to them is also very attractive and
ample chance of progress motivates them to
work more. The job analysis is done on targets
assigned and daily routines. The employees are
indeed very
satisfied and motivated.
2.2.3Recruitment & Selection
Recruitment is the process of gathering a pool of
candidates for an organizational vacancy.
Selection is the process of short listing only the
qualified candidates who are fit for the job. In
terms of recruitment and selection it is
important to consider carrying out a thorough job
analysis to determine the level of skills/technical
abilities, competencies, flexibility of the
employee required etc. And HR at Ufone
follows these criteria. Ufone policy of recruitment
is very simple, if at any time there is a vacancy,
due to retirement, resignation, if
employees opted for the golden handshake or the
death of an employee, the management of the
branch will inform the head office
about the vacancy. The head office will place an
advertisement in all major newspaper with the
all necessary information required to be
furnished by the applicant. Ufone has this
policy of not mentioning the name of the company
in a job advertisement. Usually hiring takes
place through outsourcing with a help of a third
party. Ufone mostly hires employees
through Pioneer Services and Sydiat Haider
Associates. Final selection takes place
after the candidate has been interviewed by the
Manager of the
department who requires the new employee and
then the HR Manager.
On the joining day, the employee has to submit
the following
documents to the HR Department:
Joining Report
Copies of educational and professional
degrees/certificates
Reference Letter
Three copies of recent passport size
photographs



2.2.4Training & Development
Training & Development involves improving the
knowledge, skills and abilities of the
individuals. A continuous training is conducted
inside Ufone to improve the performance of the
employee. There are two
types of trainings conducted at Ufone:
I n-house Training: In-house training is
customized training
which is only for Ufone employees.
External Training: External training is carried
out through
trainers in training institutes.
2.2.5Compensation & Benefits
A very effective way to retain an employee is to
give him
compensation and benefits. At Ufone following
benefits are given:
15
Medical Facility to employee and his/her
parents Paid Vacations
2.2.6Orientation
A newly hired employee is oriented so that he can
get an idea about the organizational setup so
that he may feel at home. At Ufone
orientation plan covers the following points:
Visits to different department of the company
Company‟s Policies, Rules and Regulations
2.2.7Human Resource Information System
(HRIS)
At Ufone profiles of all the employees
containing data relating their payroll, leaves,
benefits etc is saved in a database known as HRIS.
Ufone uses a locally procured HRIS which is to be
upgraded using Enterprise Resource Planning
(ERP).
2.2.8Human Resource Planning
Planning provides a guideline to accomplish an
activity. At Ufone the
HR team plans everything so that the outcomes
and results can be
perceived before the plan is actually implemented.
This makes the
planning more accurate and efficient; it also saves
time and money.
3
2.3MARKETING ANALYSIS
Ufone is having 2nd largest number of subscribers.
Ufone has been
attracting the masses since the time of its
origination. Ufone is also
known for its quick marketing.
MARKETING MIX
I have analyzed the marketing mix of the Ufone.
Marketing mix
includes the analysis of the firm‟s product,
pricing, promotion and
placement. Ufone‟s marketing mix can be
2.3.1PRODUCT
Ufone understands the value of words and the
need to communicate
effectively and efficiently at all levels of society,
which is why company‟s primary focus is on U.
Ufone offers, Prepay & Postpay
services in the Telecom sector.
Ufone Prepay
Ufone prepay is the product segmented for the
youngsters. They are segmented on the basis of
their age and status. They recharge through the
prepaid cards whenever they feel comfortable to
load the cards.
Ufone Postpay
Ufone Postpay is created for the executives and
business class people, who require making calls
within the country or internationally for the
business purposes. Business executives enjoy the
benefits and value added services connected with
Postpay product of
Ufone
Ufone For Everyone
The telecom market‟s growing rate in Pakistan is
higher than any Asian country. Ufone offers lower
rates and better network then other already
established cellular companies. All living
standards
have been captured by Ufone, like Students, Labor
and Businessmen,
etc.
Ufone aims to provide with wider coverage,
superior connectivity, clear
signals & voice quality to their valued customers.
U-Circle
Prepay provides an easy way to call Friends &
Family. Ufone is making
it easy for its consumers to call friends & family
with U Circle. Now the
consumers can talk more for less with the most
economical rates to
call their Ufone Circle. U Share
Ufone Prepay customers can now share their
balance with
each other through a simple SMS in 3 easy steps.
Mobile Number Portability
Ufone welcomes consumers to bring their mobile
number to the best service. Through Mobile
Number Portability (MNP), mobile phone
subscribers can retain their mobile phone numbers
when they change mobile operators. Therefore
a 0300-xxxxxx or 0345-xxxxxxx can be a
Ufone customer in the MNP regime.
2.3.2PRICING
As compare to other telecommunication
companies, Ufone offers its
services with lower and affordable rates. The price
of product matters
in the market but low price with high density
service is not an easy
task to accomplish. For the satisfaction of valued
consumer Ufone
merged the low Price and high density services
with wide network.
Both, the Prepay & Postpay tariff are being
defined as follows:
Ufone to Ufone 0.90 0.60 0.50 0.40
Ufone to Other Mobile
Operators 1.15 1.10 1.10 0.90
Ufone to PTCL & WLL
Network 1.00 0.80 0.70 0.60
SMS Charges
Ufone to Ufone 0.50 0.50 0.50 0.50
Ufone to Other Mobile
Operators 1 1 1 1
Free offers
Free Minutes 0 200 400 1000
Free SMS 0 25 50 100
Security Deposit
Local & Nationwide 750 1,000 1,500 2,500
International Dialing 2,500 2,500 3,000 5,000
International Roaming 15,000 15,000 15,000 15,000





Highlights of Recent Earning Report

For the first quarter 20s13-14 ending October 30,
2013s Ufone profit before
tax was Rs.7.7 billion with net Profit of Rs.5.1
billion, which is 7% lower than
that of the corresponding quarter of last year. For
the full year 2012-13 after
tax profit was Rs 20.78 billion which was 22%
less than previous year‟s profit.
Dividend of Rs 3 per share was awarded which
corresponds to an impressive dividensd yield of
12.3%.
Pricing Strategy
Pricing strategy plays very important role to
acquire market share where giant competitors
are already working and moving ahead.
Ufone has implemented low pricing strategies to
reach its objectives. Pakistan‟s mostly
population contains on Middle class and working
class people. In this view the low pricing strategy
of Ufone gets attention of many customers. In
the early age of Ufone launched, they
decide their logo by the people opinions that boost
its products. An advertising campaign launched
showing Bakra Market that relates to
middle class of Pakistan.
2.3.3PROMOTION
For the promotion of product, print media,
electronic media, billboards, broachers and leaflets
has been utilized for the awareness of various
customers. Time to time, Ufone promotes its
services / schemes to their users and
general public via using various type of promotion
channels. Through
the advertisements people get awareness about the
product and are
able to choose the best one for fulfill their
requirement in Mobile
Telecommunication.
Electronic media
Ufone is making use of electronic media
through Television advertisements. Ufone is
having its great deal of advertisement on
television, to aware its consumers about the
latest product offerings. The interesting part
is that Ufone is sticking with its humorous
appeal and is doing really good in it. Ufone
is famous for its own style of humorous
advertisements which are truly becoming the talk
of the town. Ufone is
motivated with providing best ads to people with
quick service.
Advertising campaign is special and impressive
than other cellular
companies, like concept, models, colors scheme
and visualizing. The
advertisement of post pay has been very much
attractive for the business class customers with the
slogan of endless possibilities.
Print Media
Ufone is actively providing its advertisements in
print form as well. They are using various ways as
a means of promoting the brand. Ufone‟s
advertsisments can be seen
in newspapers and magazines. Ufone is vigorous
in attracting people and making them upo date
about any new information through print media as
well.
Billboards
Billboards (Including skyscrapers) are the
key sources for the promotion of Ufone.
Ufone is also in practice with placing
billboards to the prominent areas, which are
having the most contact
of the people. These billboards are the reminders
of the brand through
which people get attracted. New packages or any
updates about the
product features are displayed. Different kind of
advertisement can be
seen on Television and billboards. Ufone is also a
co-sponsor of Cricket
World Cup 2007. Moreover, the shops title boards
are also being
sponsored by Ufone over all Pakistan. Now retail
stores and shops have
also “adopted” the mobile brands. People are
seeing fabric stores, toy
stores and even doctor‟s offices displaying the
phone company brand
signboards.
SMS Marketing
Ufone is not only making a use of electronic
media as its promotional
activities. But Ufone is also doing marketing of its
new packages, their
updates, any new offerings through SMS. Ufone is
committed to retain
its existing customers to get switched to other
network operator.
Through SMS marketing, Ufone is making its
consumers aware, with
new items launched and easy way to exercise
those facilities by Ufone.
Internet Marketing
3
There are users who are active
users. They are in continues
contact with www i.e web.
These users try to find the
solutions through internet.
Ufone website
(www.ufone.com) contains
bunch of information about the
product, services, coverage,
placement, and value added
services. Website is playing a
leading and significant role for the promotion of
product. Ufone is
promoting its brand through cyber marketing in
which they have
placed their brand‟s slogans and latest reviews.
For example they have
placed banner ads on various sites. The renowned
community
FACEBOOK is also having its advertisements on
the right pane of the
window.
Call operators of customer service department are
professional and
proficient to resolve consumer problems and they
are 24 hours
available to respond customer‟s query.
2.3.4PLACEMENT
Ufone added 4.0 million subscribers in 2013-14
as compared to its addition of 6.5 million in
previous year. Ufone has added the highest
number of cell sites in 2013-14 and that addition
was 1,827 new cell sites during 2013-14. With
addition of these, Ufone total cell sites have
reached to 3,471. Ufone is the network operator
which Operates with a network of more than 365
franchises and 25 company-owned customer
service centers along with a distribution
network of 150,000 outlets nationwide. Ufone is
covering over 5442 key destinations. Ufone is the
ultimate
means to stay connected wherever business takes
consumers allowing seamless roaming through the
network providing the best nationwide
coverage. Ufone, being one of the leading cellular
service providers has recently
launched its service in many new cities. Keeping
up with its pace it is rapidly expanding its
network. Ufone keeps on adding new cities with
same superior network that
continues to expand. Ufone covers all major cities
of Pakistan now
consumers can enjoy comprehensive coverage in
areas like the GT
Road, Super Highway & Motorway etc. So
wherever they are in
Pakistan, Ufone keeps them connected.
Ufone’s Network Up gradation
Under the agreement, Huawei will provide its
future-oriented EnerG
GSM solution to expand Ufone's network to cover
over 1,500 cities, towns, villages and all major
highways in the country. The network also
allows Ufone subscribers to enjoy high-speed
wireless data service. The GSM contract for
Ufone also include Huawei's new generation
GSM dual density BTS that feature high
integrated and receiving sensitivity to improve the
network performance and lower the cost of
network construction and O&M expenditure. In
addition, Huawei will provide Mobile
Softswitch solution based on the advanced R4
architecture to satisfy Ufone's network
expansion requirements, enables the telecom
service provider to evolve into 3G smoothly
2.3.5Market Segmentation
Ufone is segmenting the market according
demographic segmentation,
i.e. on the basis of age groups. Ufone has
segmented its product on the
basis of its features.
Ufone Prepay is segmented for the youngsters,
whit attractive
packages to their requirements
Ufone Postpay is segmented for the people of
mature age,
having their own business, belongs to business
class or people
who are senior executives of the organizations

3 ENVIRONMENTAL ANALYSIS
3.1 INDUSTRY AND MARKET
ANALYSIS
Cellular Mobile segment of the industry is
considered an engine of growth for telecom
sector in Pakistan. Cellular Mobile sector
continued
to add 2.1 million subscribers per month during
the year 2013-14. Cellular mobile operators
continued their Aggressive marketing and
network expansion. Competition among operators
became more
intensive with aggressive entry of CM Pak, a
China Mobile subsidiary in
Pakistan. CM Pak with their brand Zong and
Telenor have added significant Subscribers very
rapidly. Several cellular operators offered
various Value Added Services at lower rates to
attract more customers. The sector exhibited
slow growth than year before. Cellular Mobile
teledensity jumped from 39% in 2012-13 to 54.7%
in 2013-14. Collective Revenues of the sector
have grew by 35% in the year 2007-
08 against a record growth of 48% in the year
2012-13. Cellular subscribers grew by about
40% in the year 200708, as against 82% in
2006 -07 and more than 100% during 2005-06.
Main reason for its slow
growth could be the rising inflation which affects
the affordability,
higher taxes, saturation of the urban markets and
low tariffs. Regulator remained vigilant in
resolving all sector related issues. The most
significant development was the shift from 7 to 8
digit numbering plan, which was completed
during 2013-14. It was a huge task and PTA took
it as a challenge. Not only all cellular MSC but
also all fixed line switches have been enabled
for 8 digits. It is consider as a great
success of the regulator for implementing it in
short span of time. Verification of unauthorized
SIMs was another herculean task where
tremendous progress has been made. In
collaboration with NADRA and
mobile operators, PTA has devised a
comprehensive mechanism to verify the SIMS.
It was observed that approximately 7 million
SIMS have not been registered properly who
were warned by PTA and operators were
directed to register immediately otherwise face
disconnection. PTA launched a media campaign
in this regard along with strong warning has
been issued to unregistered user if they failed
to register their connections, it will be blocked.
Besides, PTA ordered closure of various
Franchises who were not implementing the proper
procedure for issuance of cellular mobile SIMs.
PTA continued its IMEI
UFONE
Ufone is offering the products which are
categorized on the basis of
their connection nature. There are basically two
products of the Ufone
which are facilitating the consumers.
Ufone Prepaid
Ufone Prepaid is consumers brand, vibrant,
innovative and
unique, with an identity that‟s entirely its own.
Ufone prepaid is attracting the youth of Pakistan.
Ufone
recognizes the need of consumers to stay in touch
with friends
and family which is why Prepaid scratch cards are
available in
four denominations to suit their budget; so
consumers can
charge their phone easily with their pocket.
Ufone offers value added services; sending the
MMS to various
contacts, There‟s Voice mail for when subscribers
are unable to
attend their calls, ofcourse consumers need to
keep in touch with
friends all the time and calling isn‟t always
convenient, that‟s
where SMS‟s come in; so consumers can put their
thumbs to
good use. Consumers can download all sorts of
cool picture
messages, wallpapers, ring tones, logos and what
not from the
Ufone website onto your cell phone.
Ufone Postpaid
An endless possibility of Ufone Postpay is a
connection that
connects with customers determination to conquer
all odds.
Ufone Postpaid is a brand that keeps up with
consumers,
understanding their drive for victory in the
business arena and your sense of belonging in
your personal life. So thesegmentation is based on
the business superiors and high
profiles. On the road to success, Ufone Postpaid is
a brand for those who expect more from life,
from themselves and from their phones, so turn
your mobile communication into the unique
experience you always wanted. Ufone aims at
providing consumers with the most superior
mobile phone services, widest quality network
& best customer services for consumers on their
journey to success. Ufone Postpaid is designed to
suit your life style & communication drive.
3.1.2Growth Rate for the Entire Industry
The growth rate of the Pakistan‟s cellular industry
can be measured
through the number of subscribers in Pakistan.
The growth of these
subscribers can be analyzed through the provincial
subscribers.
Subscribers
Growth and
Penetration
Cellular Mobile sector has shown an impressive
growth over the years.
Pakistan has been one of the fastest growing
mobile markets among
the emerging telecom Markets. Subscription of
subscribers remained
impressive for another year and all companies
together added more
than 25 million subscribers to their networks.
Total subscribers crossed 88 million at the end
of 2013-14. During the year 2013-14, Telenor
added about 7.4 million subscribers as
compared to 7.1 million in 2012-13. Mobilink
comes second with the addition of 5.7 million
subscribers during the same period. Warid
telecom succeeded to add another 4.8 million
subscribers this year. Ufone added 4.0 million
subscr-ibers in 2013-14 as compared to its
addition of 6.5 million in previous year1. CMPak
entered the cellular
market with aggressive marketing and
infrastructure roll out. Its growth
was negative previous year but this year it added
2.9 million subscribers in last few months.
Cellular Mobile penetration in Pakistan
reached 54.7% at the end of 2013-14, which is
15.3 percentage points higher than the last year.
Despite impressive addition of cellular subscribers
by operators during 2013-14, Cellular Mobile
market could not maintain its growth patterns
of the last 3-4 years. Generally, the growth of
subscribers has declined considerably in 2013-
14, which is evident in Table - 7. Total subscribers
growth has been reported 40% in 2013-14, which
has declined from 82% in the year 2012-13.
Growth of cellular subscribers has declined
by all major companies. Mobilink growth
declined registered from 53% to 22% while
Telenor growth has declined from 199% in
2012-13 to69% in 2013-14. CMPak
has entered the market recently and has shown
positi
Market Leader (Market share)
Largest Network Coverage
Strong Brand (Jazz)
High %age of high end
customers
Low network dependency on 3rd
Party (own backhaul fibre & LDI)
On net advantage
Can charge price premium
Strong media presence
Financial muscle through strong
top line
Experienced & dynamic team
Most exposed to loss of
customers
Weak customer care
Billing issues & hidden charges
Technical issues due to mix of
old &
new infrastructure and multiple
vendors
Slow process due to OT
Internal bureaucracy
Unsustainable opex structure
Opportunities Threats
Opportunities Threats
TELENOR
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.
The company has covered several milestones
over the past twenty eight months
and grown in a number of directions, Telenor
have grown to become a leading
telecom operator in the country. In fiscal year
2006, Telenor achieved nearly 200%
growth in our subscriber base – the highest in
the industry by a wide margin.
Telenor are the fastest growing mobile network
in the country, with coverage
reaching deep into many of the remotest areas of
Pakistan. In the most difficult
terrains of the country, from the hilly northern
areas to the sprawling deserts in the
south, at times we are the only operator
connecting the previously unconnected.
Strengths Weakness
Extensive rural market presence
Geared for 3G
(Substantial high end customer base)
Presence in international
financial
market
(No hurdle in International borrowing)
Able to hire cream resources
from
mkt
Use of MVNO to increase
revenue
New Revenue streams
(Mobile advertisements/ mobile
commerce etc.)
Industry reaching maturity
Higher probability of churn in
the industry
Customer loyalty low in the
industry
MNP major loser in industry
Price war can hit more
Global Operator
Aggressive rollout of network
Brand consistency
Strong retail network
Employee loyalty (HR)
Quick reaction to competitors
100% equity financed operation
Long term vision for
profitability
Strong & effective marketing
Strong vendors (Nokia siemens)
Maintaining substantial growth
in revenue
Top management “Non-
Pakistani”
Single Vendor
High Capex & Opex cost
ZTE equipment in northern area
(untapped market)
3
Geared to Challenge No. 1
position
Employer of Choice
3G part of their business case
Geo/socio/economic factors
Religious elements opposition
Irrational behavior of industry
(Zong)
3.2.2COMPETITORS MARKET SHARE
Market share of operators is considered an
important tool to gauge the level of competition
in any sector of the economy. Marker shares of
Cellular Mobile Operators indicate that market is
moving toward perfect competition where the
share of major operators are declining and new
entrants are able to grab more share in the market.
During the year 2012- 13, Telenor has emerged
as fastest growing operator
who has improved its market share from 17% in
2012-13 to above 21%
slightly higher than Ufone who also has 21%
market share. On the
other hand, the leading mobile operator, Mobilink
is loosing its
Significant Marker Power place rapidly and its
Share has declined by about 5 percentage points
and reached 36% in
2013-14 compare to 41% in 2012-13. CMPak is
also growing very fast
and it has added 2.9 million subscribers, which is
an impressive
number and one could hoped that in future it will
grab more market
share. CM Pak has added more subscribers in last
few months and it
has continued its aggressive media campaign
along with infrastructure
rollout which helping it to grab more market share
in short span of
time.
3.3 TECHNOLOGICAL ANALYSIS
Telecommunication sector in Pakistan
The telecommunications sector at the global level
is passing through
rapid technological developments and an
increasingly liberal policy
environment. The same holds true for Pakistan
where the sector has
been exposed to reforms witnessing a significant
expansion of both
fixed and mobile networks and striking
improvements in quality.
3
Pakistan may be categorized among those Asian
economies which have partially privatized the
state owned telecom sector while
deferring the introduction of full scale competition
to a future time. There exists a service
competition rather than network competition. To
inculcate and strengthen the concept of a market
driven economy, thegovernment of Pakistan
established an independent regulator with the
name of Pakistan Telecommunications Authority
(PTA) in 1996. Afterwards a lot of
achievements had been made in Pakistan telecom
sector. Although tremendous growth has taken
place in the Pakistan telecom
sector but most of it can be attributed to the
cellular growth. Fixed line
is still awaiting a take off. Similarly Value Added
Services have grown but are still a drop in the
bucket. Now that the competition has been
introduced in the telecom sector some very
positive impact have been observed on the
growth of the sector in a short span of time which
is expected to continue to grow for at least next
five years if the daring
investors influx continue as in the last 3 years. The
growth of Pakistan
telecom sector with the usage of technology can
be seen in the sectors
of
Mobile Sector
Fixed Line Sector
Wireless Local Loop Sector
Payphone Services
Internet Services
3.3.1Technological Problem
Electricity – A technical disturbance
Power crisis is leaving worst financial impacts on
telecom sector like
any other business domain of the country. With
increasing competition,
decaying service prices, investment pressure for
3G rollout, emergence
of new players and growing operational expenses,
power shortage in the country has fanned the
fire in shaking telecom investors. An immediate
and effective re-evaluation of business strategy
should be carried out in order to lessen the
effects of this dilemma. With considerable
geographic spread and a populous rural track,
telecom companies are working vigorously to
expand their network reach to far flung areas of
the country. The current business scenario, where
the rise in cost of primary and uninterrupted
power supply has amplified enormously
telecom companies must tie their hands together
to share their infrastructure to minimize the
expenses. Estimates, suggest that there are more
than twenty thousand telecom towers in he
country that worth millions of dollars. Market
study predicts that at least 20% telecom towers
are erected with no competitor's presence,
which can be shared amongst the cellular
operators. Telecom infrastructure sharing can not
only shave the fat off an operator's capex but
also opex costs as well, can be vital in coming
days. All operators' under the umbrella of
government must unite to gain the benefits of
network sharing.
3.3.2Innovation
The implementation of latest technology
Pakistan Telecom has a lot more to achieve, the
industry may further
expand and lower tariffs can also be achieved. The
present players
have many chances to take lead, as consumers are
more well-aware
about their purchase decision concepts such as
connectivity, coverage,
voice quality and value added services and will
only go for the best
packages available. Broadband in the last mile,
Value added products
and content development are rather barely
explored markets and offer
a great deal to an aggressive investor. 3G
services in major cities
would take a slow start but will catch on fairly
well and will be a major
contributor in satisfying consumer‟s needs
provided these are offered at affordable cost
with easy access, availability, reliability and with
abundant content. Our Industry already has LL
(Local Loop), WLL (Wireless Local Loop),
LDI (Long distance and International), and ISP
(Internet Service
Provider) players and WiMax; 3G cellular systems
are expected be a
part of this Industry soon. Many actions have been
started to make 3G services casual in society.
The recent focus of the industry is the
proliferation of broadband services at
affordable rates throughout the nation. The latest
technology of 3G mobile communications (mobile
broadband) has been earmarked and PTA will
soon be inviting applications for 3G spectrum
auction. This technology will increase operating
capacity and revenues by using HSPA
technology; at the same time it will also provide
superior and high speed broadband services, video
telephony, internet,
video streaming, high quality mobile TV and a
number of value added
3
services. The players are focusing on mass
advertisement, offering
expanding coverage, customer services and unique
and attractive
packages.
R&D Fund
The R&D fund is not being used for sectors
benefit and it is
recommended that either the R&D fund is
abolished or reduced to a
logical level with considering historical utilization
with respect to
growth in cellular industry. The scope and
utilization of the R and D
fund needs to focus on:
1. Establish of local manufacturing of handsets
2. Subsidy on alternate uses of energy and local
development
3. Training and development of human resources
for call centers
and research and telecom education
4. Development of local content and software
development.
3
4 DEPARTMENT WORK
PERFORMED
I did my internship at Ufone in Strategic Planning
& Program
Management Office (PMO) Department. The
department directly
reports to the Chief Executive Officer (CEO) and
major responsibilities
of the department are as following:
Defines the organization‟s corporate goals and
objectives.
Collects and evaluates internal and external
information that may affect the organization‟s
present and future state.
Develops the organization‟s long range
(strategic) and shortrange (operating) plans
Identification & development of Synergies
Development & implementation of Strategic
Initiatives at
business level
Overview the implementation of the Strategic
plan & other initiatives through the PMO
division.
Major Tasks
The work I have done in the PMO department was
related with analyzing the strategies of the
company. The department – Strategic
Planning And PMO is concerned with planning
for the strategies, the future perspectives and
managing the business operations.
4.1 Reports and Presentations
The activities I performed in the department were
concerned with
making reports and presentations. I had been
assigned a task to make
a report on the
Tariffs comparison of the network operators
in telecom
industry.
Pricing comparison of the network operators
in telecom
industry.
Coverage Comparison of the industry
While making different strategies in order to gain
maximum market
share, it is immensely important to examine the
existing situation of
the company to head towards the lead. So the
internees were given
such projects to provide the picture of market state
according to their
understanding. The reports were not only to
provide a minor help to
the supervisors but also to aware the internees
about the state of
telecom industry in various aspects. The reports
were not much
complex and complicated. It was required to
provide a 4 or 5 pages
report within 5 days.

4.1.1Tariffs comparison of Industry
My first report to the supervisors was, drawing the
comparison
between the network operators on the basis of
their tariffs. Each
network operator is providing a unique and
attractive form of tariffs
differentiated from each other. So I gathered the
information from the
websites of the network operators. I have also
gained a great help from
the annual reports of Pakistan Telecom Authority.
UFONE
Ufone has introduced ULoan where it has offered
a facility to customers to avail a loan in order to
make an important call if and when they run
out of credit. Uloan facility is available only for
voice calls. The loan amount will be deducted
from the next recharge e.g. UTop Up & Card
Recharge. Only customers with a balance less than
Rs .2.50+tax can avail the ULoan service.
Recently, Ufone has enhanced Uloan amount
to Rs. 5.00+tax. It has launched “Paanch ka
Pandrah package”. In this
promotion, each 5 minutes call gave the next 10
minutes absolutely free. In this offer, there are
no daily charges and customer will be charged
@ Rs. 1.125/30 seconds for Ufone to Ufone and
1.25/30second for all other fixed and mobile
networks. Ufone has recently
launched another promotion in which its prepaid
subscribers can now
call five friends and family numbers absolutely
free from midnight to 7
am by just paying a nominal daily charge of
Rs.1.99 (excluding 15%
GST). Ufone also launched unlimited SMS (up to
5,000 SMS) offer to its
subscribers at Rs.150 to all networks with 30 days
validity. Through
this promotion, Ufone subscribers can share their
thoughts, exchange
jokes and chit chat with their friends. Ufone, in
line with other
operators, has launched another package “Uwon”
in which its
subscribers can call to any other Ufone number at
Rs.1.00 per minute.
Off-net tariffs of Uwon package are Rs.1.60 per
minute.
4.1.2Pricing comparison of network Operators
The second report I had submitted was to
compare the pricing of the different network
operators on the basis of Calls rates, Value Added
services, Quality provided over Voice calls and
SMS. I have made a Pricing Strategy Matrix
also, in order to position all network operators.

Pricing Versus Quality
Below is the summary of
the Quality of Service
Survey conducted by
PTA.
Voice Call
Ufone has a very high
voice call service quality
Calls
Same Network Off
Network
Fixed Line
Network International
Ufone
Prepay 2.50 2.50 2.50 19.54
Public Demand 1.98 1.98 1.98
Mobilink
Jazz Budget 1.80 1.98 1.98 23
Jazz Easy 2.10 2.50 2.50 23
Jazz Octane 2.40 2.50 2.50 23
Jazz Ladies 2.50 2.50 2.50 23
Telenor
Djuice 2.82 3.44 3.44 Not available
Talk Shawk 2.3 2.3 2.3 Not available
Network
Accessibility
(%)
Service
Accessibility
(%)
Call
Completion
Ratio
(%)
Mobilink 99.8 98.9 97.2
Ufone 99.4 97.2 95.9
Telenor 99.1 98.2 93.3
in terms of network and service accessibility.
However, it needs to
improve its call completion ratio.
SMS
Ufone has one of the highest sms service
accessibility.
Pricing for Value added Services
The table below shows pricing for value added
services of different
mobile operators. These prices are inclusive of
21% GST. The prices
highlighted in blue depict the lowest and the
prices in red depict the
maximum for each category in the market.
Service
Accessibility (%)
Mobilink 100
Ufone 99.9
Telenor 100
VAS Mobilink Ufone Telenor
To Same Network 1.00 0.50 1.00
To Other Network 1.50 1.00 1.00
International SMS 5.00 1.50 5.00
MMS Activation
Charges (Rs.) Not Available Free Free
MMS Per Incoming /
Outgoing Message 6.00
5.00
5.00
GPRS Per MB 18.00 15.00 15.00
Balance Inquiry Free 0.50 Free
3
Pricing Strategies Matrix
I have placed the major network operators in the
Pricing Stratgy Matrix
on the basis of the pricing information. Also about
Ufone calls rates,
sms rates and quality we can conclude that:
Ufone has priced its sms rates low and
provides a high sms
service quality to penetrate the market.
Due to high quality of service Ufone has
priced its call rates at
cost plus premium price.
4.1.3Coverage comparison of the industry
Another finding about the coverage of the mobile
network operators in
the industry was being assigned. I had completed
this report on the
basis of showing the graphical representation of
market share by each
company, the number of cell sites they have
covered, number of
franchises over all the country, and the population
covered in the rural
areas.
51
Economy Penetration
UFONE
TELENOR
Skimming Premium
WARID
JAZZ
Low QUALITY High
Low
PRICES
Market Share:
The market share of mobilink was the highest
during the year 07-08. Telenor and Ufone showed
the same maret share by 21%. Warid had a market
share of 18% and Zong had 4%.

Franchises:
The Grsph is showing the number of stores or
farnchises existed by each company. The
major stores are of Mobilink followed by Ufone.
Cell Sites
During the year 2007-2008, the cell sites by
each operator is shown in the graph
Coverage
The population covered in the rural areas
concerning the cities, towns and villages are
shown in the graph. The value is in thousand
(000).
4.2 Industry Issues
With annual growth around 100% for some years
now, the mobile
telephone market in Pakistan has been
experiencing a period of strong and sustained
development. However, Pakistan is suffering
important economic turbulences which will
have a direct impact on foreign
operators in the country.
Some of the reasons are:
The decline in Rupee value against the US
Dollar, the decrease in
the interconnect charges and lower priced tariffs
have resulted in an overall decrease of ARPU in
US Dollar terms.
The ongoing economic and political turmoil
along with the worsening of security conditions
in Pakistan have caused an increased outflow of
capital from the country, causing the Rupee
value to decline a further 13% against US Dollar
in the third quarter.
In light of the worsening economic conditions
and the lack of prudent policies, the
international rating agencies like S&P and
Moody‟s have recently downgraded Pakistan‟s
sovereign rating.In the period of 2007-2008 the
mobile sector has been characterized
by:
Falling ARPU
Steady subscriber and revenue growth
although a slight
decrease in growth has been appreciated from the
previous year.
Intense competition by new international
players coming to the
market recently.
Network deployment in the regions to
increase addressable
market as a measure against falling ARPUs.
Mobile services, despite high costs, still grow
rapidly. Subscriber
numbers increased from 68,000 in 1996 to 3.3
million by end-2013;
since then the subscriber base has surged to reach
80 million in early
2007 and surpass 95 million in 2008. Penetration
had reached the 58%
mark, but judging by the commercial activity in
the market there was
still room for expansion. While progress has been
made in the
regulatory area, some rigidity in policies had been
slowing growth.
5 IDENTIFICATION OF MAIN
PROBLEMS
The main problem in the current era faced by
the telecom industry in Pakistan is increased
taxes imposed by government. The companies
existing in telecom sector are facing major decline
due to the fact. In the budget, government had
increased the rate of GST on telecom sector
significantly and analysts are of the view that it
may have an advance impact on telecom usage
and resultantly, the GST collection may drop
considerably from the sector. So far, the
Government
revenue from telecom sector in terms of taxes is
increasing continuously since 2004-05 after the
liberalization of the sector. During the year
2013-14 mobile segments contributed more than
Rs. 79 billion to national exchequer in the form
of taxes, which is 25% higher than
the last year. In terms of GST sector has
contributed about Rs. 37 billion, which is 30%
more than of the last year. However, the growth of
the GST collection from cellular mobile sector has
declined from 50% in 2012-13 to 30% in the
year 2013-14. The main reason for this decline
in GST collection growth rate could be low tariffs,
closure of over 10 million SIMs and increased
rates of GST. However, the complete impact
of increased GST will be captured in next years
because the rate has been increased at the end
of year.
5.1 Activation Tax
Activation tax is charged @ Rs. 500/- per new
connection and it has been the major demand of
the industry to remove this tax because
operators are unable to pass on this tax to
consumers due to competition in the market.
Activation tax collection has increased from
Rs. 17.57 billion in 2012-13 to Rs. 19.18 billion in
2013-14 which is 11% higher than the previous
year. Among the operators, Mobilink is
contributing about one fourth of the total
activation tax, which has market share in
subscribers over 37%. Telenor contribution was
reported around 28% whose market share in total
subscription is 21%. Ufone share in activation
tax was reported 16% while it has market
share in total subscribers is similar to that of
Telenor. It indicates that Ufone addition is
lower than the Telenor.
5.2Withholding tax
Withholding tax is an advance income tax, which
may be adjusted at the end of the year. Cellular
Mobile sector contributes a huge sum of
amount in the form of withholding tax to FBR.
During the year 2013-14, cellular mobile
companies deposited over Rs. 23.2 billion, which
is 33% higher than the last year. Mobilink has
deposited over Rs. 10.1 billion in
this head, which is 44% of total WHT deposited to
FBR in 2013-14. Telenor's share in total WHT
was 25% who deposited over Rs. 5.8 billion
during 2013-14
5.3 Investment
In this competitive market, operators are bound to
increase the investment to get more shares of
subscribers. In last 5 years, cellular
mobile operators have invested over US$ 8.4
billion in Pakistan which has created large
number of employment opportunities all across
the country. During 2013-14, Cellular players
invested over US$ 2.3 billion, which is 12%
lower than the previous year. During theyear
2013-14, Mobilink invested over US$ 919
million while Telenor invested over US$565
million. CMPak is another operator who started
expanding lately and invested over US$ 200
million in last few months. Warid and Ufone
invested US$ 480 and US$ 232 million
respectively during the year 2013-14.
5.4 Devaluation of Currency
Devaluation of Pakistani currency has further
exacerbated the financial
position of the industry. Particularly those
operators who are engaged in rapid
infrastructure rollout and dependent on foreign
loans from off shore sources have to bear loss
due depreciation of currency. Devaluation of
local currency has increased the cost of doing
businessconsiderably. Moreover, low tariffs and
increased tax rates could also
be responsible factors for low profit margins in the
industry. However, the revenue growth seems
quite comfortable of alloperators though it
lower as compared to previous years. In the year
2013-14, revenuegrew by 35% compare to 48%
last year. Among the operators, Telenor
is the most efficient operator in terms of revenue
generation who has increased about 97%
revenue in 2013-14 compared to previous year
and reported Rs. 45 billion revenues in the fiscal
year 2013-14. Mobilink earned about Rs. 80
billion revenues, which is 24% higher
than the last year.
6 FINDINGS
I observed a trend of aggressive marketing and
advertisement by the mobile operators in
Pakistan. They proudly announce 50 paisa, 3
paisa, 1 paisa call rates. Trying to one-up other
competitors, the advertisements emphasize the
lowest possible rate to grab the consumer
attention. In reality the low rates being
advertised come up with many conditions. To
figure it out one has to read the fine print carefully
that usually marked with * (asterisk). I think
this is unfair to the consumers and we need to
criticize this trend which some may characterize
as deceptive marketing.
Pakistan has remarkable growth in
telecommunication industry. It is
found that 75% population of Pakistan has mobile
phones and the
counting is increasing day by day. PTA recorded
customers are about
88 million. This is huge craze in mobile industry.
Since I am working on this project, I found some
irregularities:
6.1 Network Connectivity Problem
People are worried about cellular service
they often complaint that
cellular operators are not willing to enhance their
services. Caller feels disturbance, busy network,
and unauthorized call ending.
6.2 Dirty SMS
Cellular operators provide bundle SMS /
MMS offers which results huge
load on networks. Bundle offers also cause dirty
and unethical jokes
and SMS.
6.3 Rough/Unreal Ideas in Advertising
Many cellular service companies are using rough
ideas for TV advertisement. Specially prepaid
products are not belonging to realities. The
imagination is not attractive and not belongs to
human.
6.4 Too Much Advertisement
Cellular companies are having bombardment of
advertisement on TV channels. People are
fading up with this type of unnecessary
advertisements.
6.5 Advertising Budget
Companies are spending Millions dollars for in
favor of advertising but
they don‟t pay attention for the improvement in
network or service. Although Ufone‟s
Management has signed Rupees 550 million
contract to spend its operation in interior areas
and villages of Pakistan but there is still more
amount required to provide better service for
customers.
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7 RECOMMENDATIONS
7.1Installation of equipment with professional
engineers
Cellular companies must understand the worth of
their presence in the
market. If there is a growth, there is immense
competition. Cellular
companies should pay attention on the service
which is providing to
customers. They just spend on their network
growth but don‟t realize
the value of service. Advanced Technological
equipment should be
installed with professional engineers this will
benefit the consumers.
7.2 Call Rates & SMS Bundle offer
Companies should minimize the call rates instead
of SMS rates. Low
SMS rates causing dirty and non-sense jokes
which is building unsecured society. Adults are
wasting their time in sending and receiving
unnecessary messages on mobile phone.
7.3 Attractive Advertising
After having comments on advertising campaigns
with different living standards, I observed that
companies are not efficient in advertising.
Mostly cellular advertisers are using rough and
unreal ideas which are not changing consumer‟s
perception towards any cellular service.
Marketers should convince in polite way instead
of Bhangra style. Companies should implement
the effective advertising strategies which affect
the consumer and easily deliver message.
7.4 Control on Advertising and Budget
Too much advertising lost its importance;
companies should control the spots of
advertising. They should avoid too much
repetition of ad.
People faded up and don‟t want to watch ads.
They should educate the people and give proper
complete message against call rates and other
value added services. Companies spend much
money on advertising campaigns; they should
control it and pay attention on service.
8 CONCLUSION
Telecom industry is most growing industry of
Pakistan still huge investment required for
coverage. The market also has strong
competition after the entrance of China Mobile
Company as player. Competitors are hiring
professionals to entertain the consumer which is
resulting technological implementation and value
added services. Ufone is a place where one can
live his dreams and pursue a career
that reflects his skills and passions. People in
Ufone give flexibility for change, the
opportunity to learn, and providing career options
with endless possibilities The managers at
Ufone believes that all employees have a right
to offer input and be involved in helping their
organization grow.
All departments are working together and they
wants to create a work environment in which
employees can improve their minds,
continuously learn, gain professional growth and
feel inspired by similarly motivated individuals.
The Ufone takes pride in providing the best
possible working environment. They take a
constant interest in ones progress by conducting
evaluations and offering the support and
resources one needs. I reveal some
complications in “Findings”. It has been analyzed
that people are concerned about call rates they
do not prefer any particular company.
Consumer searches good service with lowest call
rates, although companies are minimizing call
rates this will result more growth in the market
and to meet the customer needs by satisfying
them.
9 REFERENCES
The information has been gathered through the
various sources
including
Ufone – Department of Strategic Planning
Pakistan Telecommunication Authority –
Annual Reports
2012-2013
www.ufone.com
www.telecompk.net
www.pta.gov.pk .
www.propakistani.com
www.financialdaily.com