PESTEL Analysis

Telenor Group

companies are investing seriously in this fragment. Political In the context of the political stability: telenor grouuup is working on the continous building approach. Telenor (www. Telecom segment has changed the shape of communication everywhere and this is a hot issue in Pakistan now a days.3 per cent in India. Similarly Telenor and Warid. (India times 2007) Lets comes to the PESTEL Analysis following are the attributes where the telenor have been working in order to improve there business strategies more efficiently. the newly licensed operators are investing around USD 495 million and USD 325 million respectively during 2005-07 in addition to the license fees. Awais Ahmed Khan Leghari said the number of mobile phone users in the country runs in millions which indicates improved living standard of the people. Ufone (www. Due to the enormous competition among different companies of both services providers and mobile set providers. Taking about in the contaxt of the subcontinent the political conditions are the well established due to the . on roads and in market places in the Pakistan. India might be world’s fastest growing telecom market but the growth is deeper in Pakistan where a larger percentage of population has a mobile connection.com).mobilinkgsm. This is more than double of 14.waridtel. (Sargana 2005) EX Minister for information technology. Mobilink (www. He pointed out that telecom sector was in the midst of a revolution with the overall mobile phone subscriber base already hitting 20 million mark and registering a tenfold increase in the customer base which only a couple of years ago stood at 2.8 million. Pakistan has much higher mobile penetration of about 30 per cent.4 billion just in infrastructure and Mobilink alone are investing around USD 831 million in next three years. Currently there are five major companies operating in Pakistan. According to PTA (Pakistan Telecom Authority) telecom companies are going to invest more than USD 2.com). In contrast of a lower per head income and almost equal prices of handsets as well as call tariffs as in India. Telenor in next 5 years is going to invest approximately USD 1 billion in Pakistan. mobile phone is almost in reach of every common man in Pakistan and as a result of this brisk demand. easy and accessible communication.com).and Warid (www. (The News 2006) Every one from top business executives to daily wagers looks busy on mobile phones in offices. For the reason different companies are being attracted to invest heavily in this division. Telecom sector has emerged as a fast growing industry during past few years and now Pakistan is promising as one of the most progressive country where the number of mobile phone subscribers has reached 40 million.com).A Brief Overview of the Business Sector: World has become a global village and this is due to prompt.telenor.ufone.

pro-competition regime and a supportive environment for the entire Internet eco-system. Governments and regulators must ensure that a high quality regulatory regime is in place. The coeffi cient on average Mobile penetration is approximately twice as large as the 0.Democratic Government holding Judiciary strengthening Increased media freedom. a pro-investment. .1% of total GDP. dividends and expenditures on corporate responsibility (CR). it would boost the economic growth rate of that country to 5. up from BDT 28 billion in 2004. When the impact of the economy wide multiplier is included.2% . Taxation Policy:_ The mobile sector in Bangladesh contributed a total of BDT 260 billion to the economy in 2007. This is an increase of over 250% since 2004 and represents 2. Economics Factors Economy (pre–flood) Real GDP growth 2010 – 4. A regression is estimated for almost 60 developing countries in the Asia Pacifi c region. Deloitte estimates that a 10% increase in penetration could increase the GDP growth rate of 1.e. the value contribution in 2007 was BDT 128 billion up from BDT 39 billion in 2004. The rest is made up of wages. Meschi and Fuss (2005). by contributing to GDP. the largest contributors are taxes and regulatory fees (68%).2 per cent a year. An increase of 10 per cent in mobile penetration will boost the annual economic growth rate of a developing country by 1. Africa and Latin America. put in place clear and credible long-term plans. Of this value-add.59% increase in GDP found by Waverman. and by creating an infrastructure that allows the economy to develop further.2 per cent. Foreign Trade Regulation:_ Regulatory uncertainty reduces investment.2% of total GDP. i. representing 6. Deloitte estimates that the mobile communications industry contributed over BDT 91 billion of value add to the domestic economy in 2007. If the proportion of people with a mobile phone in a country whose economic growth rate is 4 per cent a year rises from 10 per cent to 20 per cent.1% as a core source of FDI. For this sample.

The use of mobile phones on the other hand. Support employment crated by outsourced work and taxes that the government subsequently spends on employment generating activities. for example: • Education: In remote places. fi xed phones have often never reached a suffi ciently high penetration to generate a signifi cant network effect. the Internet is expected to contribute: • 2. more than 247.In developing countries. Contribution to employment: Mobile services contribute to employment through several channels: Direct employment of the industry and related industries. webcams. and • Induced employment resulting from the above employees and benefi ciaries spending their earnings. more than 111.000 new jobs in Thailand Increased Internet penetration has the potential to generate significant economic benefits: In terms of overall GDP contribution in 2020. employment in related industries (indirect employment) constitutes a large proportion of the employment created by the mobile industry. Access can improve a number of social areas.000 new jobs in Serbia • 129. health care and rural development. . the Internet is an important infrastructural backbone.2 in Serbia Important social gains:_ Across all three countries. is continuously expanding and can therefore be expected to play the same crucial role for the economic development that fi xed phones had for developed countries.790 jobs have been created by the mobile industry in Bangladesh to date.000 jobs have been created by the industry to date in Pakistan. and creating more employment.8 in Thailand • 5. In Malaysia. Internet-based self-learning initiatives may supplement conventional forms of education. • Health care: In developing countries.6 percent in Bangladesh • 3. real-time communication via computers can facilitate health services to more people and increase the number of patients a physician can serve.000 new jobs in Bangladesh • 114. chiefly education. • 94. where shortage of doctors is a key constraint.

• The Internet can also be a valuable instrument in tracking of disease outbreaks and in emergency response situations. Technological: In all the six markets. • Insurance • Bill payment • Mobile top up • Salary disbursement • Corporate payments . for instance through connecting people in remote areas to basic utilities such as banking and health care. These include the new ways to introduced for securing the customers. As well the contribution to economic and social welfare. and promote business in previously underserved rural areas. New Discoveries: Telenor • Distribution network • Marketing and product management Tameer Microfinance Bank • License for branchless banking • Regulated by State Bank of Pakistan Legal: Telenor group has provide the product safty awareness to become more stronger in the industry. The Deloitte study found that the annual productivity increase in the six countries ranged from 6 per cent to 10 per cent. increase work flexibility. access to mobile communications can improve information flows. and by making it easier for people to communicate with friends and family in distant locations.

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