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PROBLEMS WITH ZONG

Purchasing and initial problems
Zong's debut followed China Mobile's February 2007 purchase of Pakistan's fifth largest telecom operator, Paktel, from Millicom. Wang acknowledges that a gap between market developments in China and Pakistan as well as cultural differences have presented major challenges to China Mobile. The Chinese company also had to restrain its ambitions after its bid for all of Millicom's shares failed, apparently due to a price dispute.

Excessive budget
Wang thinks 2008 will be a crucial year for Paktel. Following the release of the Zong brand, the company is slated to expand operations. China Mobile plans to invest US$ 800 million in Pakistan in 2008 in a drive to improve Paktel's coverage and after-sales services. It has already spent US$ 860 million to improve and expand the Pakistani network.

Marketing
As far as the marketing is concerned, Salman Wassay, Director Marketing at Zong admitted that the rising competition was making that job extremely tough.

Call Center
There are couples of things where Zong is badly lacking, and I hope Zong’s higher authorities are aware of these. One is their call center… very ordinary, in fact worst of all. They need to scale up their work force. We were told that they are setting up a contact center in Lahore back in July, but there has nothing happened up till now. Callers are made to wait for hours to get responded. Also there are certain reports raising questions about their network - but i guess network issue will be taken care of by planned investment in coming year

8 (PKR 140 x 12 = 1680 + 352. 1 handset is going to cost you Rs. • The built-in on-net airtime worth PKR 1. 1 Only”.680 is only for ZONG to ZONG calls. 140 in first month and same in second and so on. . Now let’s calculate what actually Zong is offering.Deceptive Marketing . 2849 : -) Check Points: • • You cannot buy handset or the SIM alone. • Handset purchased under this deal would be functional with ZONG SIMs only. when they saw an AD in today’s newspapers which read “Rs. • Warranty can only be claimed from the customer service center it was purchased from. • The un-used airtime will not carry forward to next month. Other mobile network SIM will not work on this handset. which means you can consume free air time of Rs. and let me justify how Zong deceived (lied to) its customers As per Zong’s official website: Handset Price = PKR 499 ZONG SIM Pack = PKR 150 12 months on-net airtime = PKR 2.032. • ZONG Handsets comes with six month warranty.8 as tax) Advance Tax = PKR 168 Total Deal Price = PKR 2849 So this Rs.1 Mobile phone subscribers were once again deceived by Chinese Let Zong. means you will have buy the whole package Free Air Time will compass over 12 months. and you can not consume that in a single month. For example if a customer uses PKR 110 worth of airtime till month end then remaining PKR 30 worth of airtime will be lost (confiscated).

2 Mobilink. Sirf 50 Paisay per 30 Seconds”.• After 12 months customers will stop getting PKR 140 worth of monthly built-in on-net airtime. and none of us can take these looters to court. and Instaphone can be added for this offer. Telenor responded with A One. while the advertisement clearly stats “Koi bhi Number. last month. Two things are seen common amongst all cellular companies. Telenor. How many of Zong customers visit their websites? A 8 x 2 advertisement could be filled with complete information. Addition/ Modification of FnF will charge you PKR 15 + Tax. means you can’t add Zong Numbers…. regarding what actually the pricing would be for this package…. • • • Regular Rate: 75 Paisa per 30 Second FnF Number: 50 Paisa per 30 Second How to Activate Package: Call 907. Deceptive Marketing . Ufone. how can you communicate additional charges per minute? Yes they are charged for first 30 seconds. I am feeling pity on our country and our nation who are misguided every other day. • FnF number modification: No Information on Print AD. kicked off the war with Jazz one. Let’s look at the print ad and try to solve the equation. they are attacking each other…and at the same time deceiving their customers through un-clear advertising campaigns and claiming their packages as best one. I am not sure how many but at least million customers will be negatively affected by this. • Only numbers of Mobilink. And now Zong feeling the heat and joining the club with 8 Anay per Call offer. if you hang the call in 20 seconds that will cost you 50+40=90 paisa + taxes • You can select only one FnF number from any cellular network. for God Sake your pulse rate is 30 second. Koi bhi Network. an automated voice will guide you through the process (here you will be asked to enter one FnF number) Check points: • AD says 40 Paisas for first minute will be charged. The customer can use the handset and the SIM after 12 months by recharging account as per regular procedure. but their website says. Warid. . however both were defeated by Ufone’s Uwon.

This actually disappointed me. 15 U. devices. I was shocked to learn that we have no code of conduct for advertising for print media. Their 3 years old kid was killed when he jumped into machine tub. She confirmed that there are some code of conduct saved by PEMRA or PTV but that’s scattered. and unfair or deceptive acts or practices in or affecting commerce.Federal Trade Commission Act. It does nothing…! See below what is being followed in US Unfair methods of competition in or affecting commerce. or cosmetics. They started off with a very impressive teaser campaign both in Print and Electronic media and then after launch series did the wonders. keeping in view the popularity that the Zong AD had gained since its launch. that they are more of concerned with the money they are getting from advertisers. Copied AD Zong has allegedly copied the theme and the content of a UK telecom company’s AD. the couple had won the law suite.S. I was told that there is a Consumer Protection Court in Rawalpindi. that court is just for the sake of formalities. Zong bouncing out from China mobile had been doing pretty well as far as TV and print advertising was concerned. that’s due to the interest of APNS.I just called this “Network for Consumer Protection”. And interestingly.C. and asked them if there is any good way to bug these cellular companies for ambiguous un-ethical advertisements. drugs. but the lady there told that there is no advertising law in Pakistan. As far as Zong TV commercial is . services.Section 12 of the act makes it unlawful to disseminate any false advertisement for “foods. I remember an American parents sued a Washing Machine Manufacturer for not exclusively mentioning that their washing machines are dangerous for children under 7. § 45(a). but at the same time.” . are hereby declared unlawful .

The first was an.concerned. smile but elegant. Here is the Zong’s AD that we see . The Ad looks to poke fun at competition and at the same time introduces Zong as a more affordable and more flexible service. two aspects particularly gained the attention. rather glowing TV Ad which shows a guy walking and talking about Zong. amusing. Our marketing gurus have also discussed the campaign. in a marketing forum.

Zong PACKAGES 12 Aanay Package: .

Only ZONG gives you the full truth at half the price. 3/100KB Rs. 15/MB *8 Aanay Offer MMS Mobile Internet * 40 paisas extra will be charged during first minute * 8 Aanay offer is only for one off-net number at a time and it can be changed any time * 8 Aanay offer can be selected by dialing 907 and each addition/modification will be charged at Rs. Happy hour can be modified once everyday. and say it all! To avail this offer please dial 907 from your ZONG number. say it to anyone. say it loud. • • • Happy hour needs to be activated by the subscriber.99 and for the first time in Pakistan you can change the hour everyday! Pay 30 Second Charging ZONG to ZONG ZONG to any other number SMS to any network Happy Hour ZONG Friends and Family numbers ZONG Friends and Family rate 75 Paisas 75 Paisas 75 Paisas Rs. Friends and Family rates will not be applicable during that hour.99 per hour 5 Numbers 50 Paisas 50 Paisas Rs. every action/modification will be charged at Rs5. 15 + tax * 30 Second Charging ZONG 12 Anay is available at all ZONG Sales and Services Centers and selected retail outlet across Pakistan.e.any hour. for those customers who have subscribed for happy hour. 8 Aanay/Call: 8 Aanay/call ANY NETWORK ANY TIME Just 50 paisas per 30 second People claim of simplicity and yet give you half the truth. This offer is available on 12 Aanay package only. Now make calls to any other mobile network for 8 aanay i.4. . So say it clear.Talk for an entire hour . 50 paisas per call and you can change that number any time you want. ALL CED and Taxes apply. Friends and family rate apply for 24 hours. for only Rs. You will have to pay 40 paisas extra for the first minute only. 4.