This action might not be possible to undo. Are you sure you want to continue?
RISK FACTORS GIVEN AT PARA 4.22, BEFORE MAKING ANY INVESTMENT DECISION.
SUBMISSION OF FICTITIOUS AND MULTIPLE APPLICATIONS (MORE THAN ONE APPLICATIONS BY SAME PERSON) IS PROHIBITED AND SUCH APPLICATIONS’ MONEY IS LIABLE TO CONFISCATION UNDER SECTION 18A OF THE SECURITIES AND EXCHANGE ORDINANCE, 1969.
Present Issue consist of 110,000,000 ordinary shares of PKR 10 each (20.85% of the enhanced paid up capital of PKR 5,274,746,200) with a Greenshoe option of up to additional 90,000,000 ordinary shares (14.58% of the enhanced paid up capital of PKR 6,174,746,200) in case of over-subscription at an Issue price of PKR 10/- per share to general public Advisor & Arranger
Joint Advisor & Arranger
National Bank of Pakistan Arif Habib Limited MCB Bank Limited Askari Bank Limited KASB Bank Limited Arif Habib Bank Limited Pearl Securities Limited Atlas Bank Limited Habib Bank Limited Bank of Khyber Allied Bank Limited Pak Oman Investment Co. Limited Faysal Bank Limited Wincom (Pvt.) Limited
UNDERWRITING, COMMISSIONS, BROKERAGE, AND OTHER EXPENSES The present Issue of 110,000,000 shares at a price of PKR 10 per share has been fully underwritten as follow: S. No. Name of the underwriters No. of shares Amount (PKR) 1 National Bank of Pakistan 20,000,000 200,000,000 2 Atlas Bank Limited 15,000,000 150,000,000 3 Arif Habib Limited 10,500,000 105,000,000 4 Habib Bank Limited 10,000,000 100,000,000 5 MCB Bank Limited 10,000,000 100,000,000 6 Bank of Khyber 10,000,000 100,000,000 7 Askari Bank Limited 7,500,000 75,000,000 8 Allied Bank Limited 5,000,000 50,000,000 9 KASB Bank Limited 5,000,000 50,000,000 10 Pak Oman Investment Co. Limited 5,000,000 50,000,000 11 Arif Habib Bank Limited 5,000,000 50,000,000 12 Faysal Bank Limited 2,500,000 25,000,000 13 Pearl Securities Limited 2,500,000 25,000,000 14 Wincom (Pvt.) Limited 2,000,000 20,000,000 Total 110,000,000 1,100,000,000
If, and to the extent, the Shares Underwritten are not subscribed and paid for in full by the Closing date for the public subscription, the Underwriters in terms of the underwriting agreements will, within 15 (fifteen) days of being called upon to do so by the Company, (i) subscribe and take up against full payment in cash or (ii) procure subscribers to subscribe and take up against full payment in cash, the shares remained unsubscribed subject to the maximum of the Shares Underwritten. In the opinion of the directors, the resources of the underwriters are sufficient to discharge their respective underwriting commitments. 3.1 BUY-BACK / REPURCHASE AGREEMENT THE UNDERWRITERS HAVE NOT ENTERED INTO ANY BUY-BACK / REPURCHASE AGREEMENT WITH THE COMPANY OR ANY OTHER PERSON IN RESPECT OF THIS ISSUE. ALSO, NEITHER THE COMPANY NOR ANY OF ITS ASSOCIATE(S) HAVE ENTERED INTO ANY BUY-BACK/REPURCHASE AGREEMENTS WITH THE UNDERWRITER(S) OR THEIR ASSOCIATE(S). THE COMPANY AND ITS ASSOCIATE(S) SHALL NOT BUYBACK/REPURCHASE SHARES FROM THE UNDERWRITER(S) AND/OR THEIR ASSOCIATE(S). 3.2 UNDERWRITING COMMISSION The underwriters have been paid an underwriting commission at the rate of 1.0 percent of the amount underwritten by them. In addition, a take up commission at the rate of 1.5 percent shall be paid to the underwriters on the value of shares required to be subscribed by them by virtue of their respective underwriting commitments. 3.3 COMMISSION TO BANKERS TO THE ISSUE
Commission at the rate of 0.50 percent of the amount collected on allotment in respect of successful
if any.000 Marketing & advertisement 35.000.4 BROKERAGE Brokerage shall be paid to the members of KSE.000 LSE listing fee and charges: Initial Listing Fee 1.50% Take up commission 16. 1.000 Balloters.000 Service Charges 50.000.applicants will be paid by the Company to the Bankers to this Issue for services to be rendered by them in connection with this Public Issue. LSE and ISE at the rate of 1. Transfers Agents and Share registrar fees 2.000 Annual Listing Fee 90.500.000 SECP Application and processing Fees 100.000 Miscellaneous costs 1.000 1.00% Brokerage commission 11.000 0.5 EXPENSES TO THE ISSUE Amount (Rupees) Expense Rate 1. publication etc.000 Service Charges 50.000 Legal Advisor Fee 500.000.500.800.000 Total 106. 3. No brokerage shall be paid to members of the stock exchanges in respect of shares taken-up by the underwriters pursuant to their underwriting commitments.000 CDC fees and deposits 500.000.50% Consultant to the issue fees 16.00% Underwriting Commission 11. 3.140. which may alter post-IPO. plus out-of-pocket expenses.000 Printing.000 Annual Listing Fee 50.000 1.500.000 Stamp duty 500.0 percent of the value of shares actually sold through them.000* *These amounts represent the estimated costs relating to the subscription amount.000. 13 .50% Bankers to the Issue commission 5.500.000 1.500.000 KSE listing fee and charges: Initial Listing Fee 2.
as it has successfully deployed the largest commercial and first nationwide 3. Wateen’s successful four years of operations in the telecom industry of Pakistan speak for itself. making Wateen an icon in the industry and presents ample proof of the robustness of Wateen.5 GHz WiMAX network in the world covering 22 cities and 1. Rapid customer take up has helped Wateen acquire over 150. Wateen has an established sales channel network with a well trained wireless operation team for installation and support which together can be leveraged to ensure critical momentum. Sales growth rate has been far steeper compared to the industry average. evident from the fact that Wateen enjoys over 60 percent share of the wireless broadband market. Wateen is also proudly the largest operator of Satellite services in the country with 500+ MHz in commercial use and now also providing Satellite bandwidth services to telecom operators in Afghanistan. infrastructure of Optic Fiber network spanning more than 10.000 km (including Government of Pakistan USF 1 projects) across all the four provinces of Pakistan including metro connectivity in 22 cities powering 3 of the 5 GSM operators in Pakistan. Wateen also has been acknowledged as the largest alternative LDI operator in Pakistan (with over 1 billion minutes of traffic volume) duly acknowledged by the regulating authority PTA. Wateen is owned by the Abu Dhabi Group. one of the leading business conglomerates in the United Arab Emirates (UAE) and is one of the largest foreign investor groups in Pakistan. Additionally. After successfully achieving this milestone.000 broadband customers over fiber with 2. on 4 th March 2005. Additionally. 12. The Company commenced its commercial operations in LDI segment on 1 May 2005. The business model of the Company was to initially focus on the wholesale telecom market by becoming the leading carrier’s carrier by providing Long Distance and International (LDI). Such remarkable performance has made Wateen the fastest growing telecommunication company in Pakistan. thus.100 sites.700 corporate links (including 26 of the 31 commercial banks) and relationship with almost all the major GSM and telecommunication companies in Pakistan as its customers. Wateen then focused on the consumer market through true broadband internet and telephony services as well as multimedia. It possesses efficient . national transmission network (over fiber and VSAT services) and telecoms infrastructure. TV broadcast services (through an affiliate) and value added services in Pakistan. The registered office of the Company is situated in Lahore.000 wireless broadband customers representing more than 60 percent of the total wireless broadband market.THE COMPANY WATEEN TELECOM LIMITED OVERVIEW Wateen Telecom Limited (“Wateen”) was incorporated in Pakistan under the Companies Ordinance 1984. Sales performance has also been quite encouraging and consistent with over 20.000 monthly additions to the broadband internet and telephony subscriber base reflecting acceptance of the technology and more importantly of Wateen’s brand value in the market.
000+ km on long haul across the country 1..(200 agents capacity) and robust pre/post paid billing system supported by a state of the art Business Intelligence (BI) system. • Largest alternative LDI operator in the country.e.700+ km metro in 22 cities in record duration • • • • • • Tele-housing / Co-location facilities in 70 cities Largest operator of Satellite services in the country (c.700+ enterprise links • • • • . STC.000+ subscribers on WiMAX and HFC 26 out of top 31 banks use Wateen data network connectivity with 1. Telenor for managed capacity and VSAT.and effective business processes including entire customer lifecycle management as well as the largest ISP call centre . Deployed fully redundant fibre optic network in record time • • 8. Mobilink for OFC joint preventive measures Corporates : Clients include 26 Banks. MOC Kuwait etc.000 house passes with 50%+ take-up of households within few months of launch Largest commercial and first nationwide WiMAX network rollout in the world covering 22 cities and more than 1.000+ broadband customers and 2. etc. CM Pak for dark fibre.700 links in other corporates Consumers: 150. The current market dynamics of the telecom industry lead towards a price war between all the players .600 of the 5. LDI services. All the GSM operators and almost 80 percent of the commercial banks in Pakistan are using Wateen’s services in one form or the other including but not limited to dark fiber / data connectivity.000 on-line branches connected 8 TV Channels 13 Telco & Carrier customers 150. That just shows the reliability and dependability of Wateen’s telecom network and further compliments Wateen’s vision to be a “Carrier’s Carrier”.100 sites (900 live) Major clients include Carrier : Warid. VSAT (Satellite transmission). Etisalat. 13 Telecos & Carrier over 2. over 1 billion minutes per annum including direct LDI routes / interconnects with major incumbents i.a natural result of a price war is increase in volume that will lead to higher capacity demand thus directly increasing business for Wateen’s services to the telecom and corporate industry and majority of these contracts with other telecom and institutional companies are based on a longer term basis. 8 Media companies. BT. 500+ MHz in use) Deployed triple play HFC infrastructure in Pakistan for 20.
8 billion and profit of PKR 2.a huge discount for the people of Pakistan to benefit from. Wateen has also entered into long term contracts with major vendors and customers thus securing certainty in future cash flows. Futhermore.1 billion since inception to November 2009 including management fee • Strategic vendor relationships. The said revaluation was only conducted for the management purpose and has not recorded in financial statement. their independent report suggested a replacement value of PKR 17.29 billion (current book value of these assets is PKR 1. preferential pricing and vendor deferment of $75m as a Greenfield project. Wateen also successfully closed one of the largest Islamic Financing deal of PKR 530 million in the same period. Congo and Bangladesh • Cisco top customer Advocacy partner in the Middle East. Moreover.64 billion) translating into intrinsic value of PKR 52. Such a high intrinsic value share will now be available through the IPO at par value of PKR 10. Wateen has secured $108 million dollars as vendor financing through reputable organizations such as MCC ($65 million) and ECGD ($43 million). Africa Region in 2006 • Established sales channel network which can be leveraged to ensure critical momentum • Well trained Wireless Operation team for installation and support • Tested business processes including entire customer lifecycle management • Largest ISP call centre . Enterprise Data Network) project in Uganda.5 billion • Successfully completed VAR / PS (IP telephony. EBITDA of PKR 5. Company delivered cumulative revenue of PKR 37. ARCH-e’-decon a leading valuer in the telecom industry was engaged to assess the current value of Wateen’s key strategic assets and after a thorough scrutiny of the assets comprising the company’s fiber optic network (long haul and metro) and WiMAX licenses. the massive boom in the mobile phone segment of telecom industry has . Data Centre. Wateen recently closed the largest syndicate financing transaction for 2009 raising PKR 4.5 billion.(200 agents capacity) • Robust pre/post paid billing system • State of the art Business Intelligence (BI) system in place Over the course of its operations. In addition to the above. While Pakistan’s telecom industry continues to take positive steps towards the development of telecom infrastructure in the country.0 per share . Wateen has successfully achieved strategic vendor relationships and preferential pricing. Company secured local funding to the tune of PKR 14 billion and short term facility of PKR 3.• SWAP deal of fibre with the incumbent for alternative redundancy • On an investment of PKR 2 billion. Wateen has secured $108 million dollars as vendor financing through reputable organizations such as MCC ($65 million) and ECGD ($43 million).5 per share.7 billion from leading banks in the industry even in these challenging times showing the confidence of the market in Wateen’s business model and operations. IP Contact Centre.
also provided significant momentum for expansion and development in other segments of telecom as well. 16 .
Infrastructure & Telehousing. HFC. within a short span of time. Concurrently. What products and services to offer to the target market? Should we fulfill demand and flow with the tide. TV. Hosted / Managed Solutions • Retail: Internet. Telephone) services followed by a GPON network in Pakistan. Wateen had created an entry barrier for the next entrant. Wateen has surpassed expectations and surprised the market by delivering a Next Generation Network (NGN) which offers affordability. another first-of-its-kind achievement followed. or should the path be driven by innovation? We chose the latter. VSAT. Yet the challenge remained. GPON) in Pakistan covering the entire country and more importantly available at affordable rates for customer service. these cities represented approximately 90% of the target market of the 5 million 2 internet users as predicted by industry experts.000 km optical fiber network infrastructure within such a short time. ISM Radio. financially and technologically. Lahore to deliver Triple Play (TV. Data. Not much time passed. Concurrently. With an incumbent in monopolistic dominance. Wateen had accomplished the fastest deployment of a multi-media Converged Network (Optical Fiber. More importantly. when Wateen deployed the World’s first 3. With almost every License available for telecommunication services approved and issued to Wateen by the Pakistan Telecommunication Authority (PTA). a multiple hub VSAT satellite network was put on air to enable transportation of information to places where no other telecommunication medium could be deployed that was not the end of the story.4 PRODUCT & SERVICES Wateen’s product portfolio can be broadly summarized as under: • Wholesale: Managed capacity / transmission media (OFC. Portal By commissioning a ready-to-use nationwide 10. the writing . enhanced Voice. deployed in Multan for triple play services. VSAT). VAS. Voice. and the market yearning for an alternative. Internet. That done.4. WiMAX Broadband. the latter paved the way. albeit a difficult route. a Hybrid Fiber Copper (HFC) network was deployed in DHA. VAR / PS. reliability and convenient scalability.5 GHz WiMAX Broadband network countrywide in 22 cities of Pakistan which represents over 70% of the urban population and where over 85% of the national GDP is generated.
convenient. The product roll-out commenced.e. let’s capture the market. bandwidth colloquially called speed. 4. or shall we say Content.Go Ahead. PTA. With a mobile phone industry booming. the broadband / data network segment growing. 4. ondemand scalable facility for transporting information. Wateen’s strategy was not to sell technology but to provide the best product line to customers so as to address their customer need at the right price. 5mn subs by 2014 Market. the stage was set for Wateen. and the voice (telephone service) market diversifying from the copper infrastructure to more flexible and conveniently usable and functionally superior products. with an insatiable appetite for capacity i.on the wall said .5 TARGET MARKET The market space being inherently diverse and vast necessitated a portfolio of products that should not only meet existing demand but should go beyond. Primarily the market sought and continues to seek better.35mn by 2013 2 19 . from one point to another. demand for access to the internet seeking exponential growth.
Mobile phone operators. Supported by the ever increasing growth of personal computer penetration in the county and laptops becoming more and more affordable. partying out to virtual social networking. succinctly describes this segments expectations. concurrent utilization of multiple telecommunication medium. multiple offices or outlets in the country. our strategy was to sustain focus on the customer by meeting and exceeding their expectation. geographically dispersed sites. and an estimated 5 million personal computer in use in Pakistan. primary research. research. approximately 70% consumed by 73 companies. and market demand factored in. lifestyle patterns demonstrate a changing pattern from talking to messaging and emails. from listening to watching. 24x7 availability. The Banking and Financial services industry is the largest member of this . Local Loop (LL) telephone service operators singularly consume the largest chunk of bandwidth capacity in the country. Wireless Local Loop (WLL) telephone service operators. from outdoor sports to electronic gaming. Internet Service Providers (ISPs). On the other side are the Corporate and Enterprise sectors of the national economy. The imperative for sustained focus warranted a comprehensive understanding the customer. high focus on quality of service supported by Service Level Agreements (SLAs). quasi anytime-anywhere service and the ubiquitous demand for low on price. and financially stable service provider. We call it the Enterprise segment. and of course to more serious social aspects of learning.000 classify to be Enterprises i. responsiveness to customer service. deliver innovative and functionally rich products. and sharing knowledge. decision making driven by value addition to business. nomadic or mobility of service i. Long Distance and International (LDI) telephone service operators. Very high consumption of bandwidth.e. convenience of scalability or upgrades in bandwidth. equally high availability of network. With 57. Market intelligence. approximately 2.000+ companies registered with the Securities and Exchange Commission of Pakistan (SECP). identified two large segments namely the Corporate and Carrier segment and Consumer segment. with rapid time to market. international connectivity. from audio to audio-video.With the market ready for to accept change for the better. The Carrier and Corporate segment is far more complex yet comfortably segmented. Data on consumer needs showed very high demand for internet access where consistent reliability.e.
The segment primarily demands access to internet and 20 . An estimated 350.000+ branches. SLA based service.000 outlets are estimated to represent other segment comprising Services and Distribution. and Manufacturing and Construction. price/performance. generates demand for Wateen network portfolio. Government and Defence. It is these very information systems and the desire to expand their reach to a larger customer base. business entities have recently made significant multi-million dollar investments in sophisticated information systems. With this segment’s customers demanding better service levels. primary and backup network facility. single window multiple medium availability preference. responsive. and flexibility of service provider to enable connectivity characterizes this segment. While another 6. reliable.segment with 9.000 entities make up this segment based on data available from SMEDA. Health and Education. and innovative products. A significant player in the market is the SME/SoHo segment. Secure.
the cost of acquiring customers is going down which means that the growth for Broadband and in turn WiMAX is going to be more and more profitable. with 1. both wireless and optical fibre (HFC/GPON) based technologies are clearly going to lead the show for Broadband growth in Pakistan. At present. and Mobilink.6 COMPETITION With Wateen’s product portfolio.telephone service with characteristics similar to the Enterprise segment with one difference. Pakistan currently presents extremely favorable demographics for broadband proliferation.700 KMs of carrier grade metro fibre. major players offering competition on consumer Internet and entertainment products includes PTCL. cellular operators. The breadth and depth of Wateen’s services often creates a situation where in a customer for one product is a competitor for another. Similarly. With such huge opportunity for Broadband proliferation and traditional technologies such as DSL showing limitations due to a network of copper lines laid out in most areas around 50 years ago and hence failing to support transfer of heavy data. who have a strong presence in the enterprise (large and small) segment. and fixed & wire line operators make up the competition. The closest competitor in terms product range is PTCL but it does not offer VAR (Value Added Reselling) and PS (Professional Services) that form an integral part of Wateen’s product portfolio for the provision of “one window operations”. . ISPs. Wateen with its presence in 22 cities is ideally positioned to take-over as the runaway leader in the Broadband market. On the business side. Wateen has many competitors for specific products but Wateen’s offering in the market is truly unique since no other singular player offers a similar product portfolio. OEMs and other ISPs such as CyberNet and SuperNet. Over 50% of the country’s population is between the ages of 15 and 24 with an overall Computer penetration of around 5 million and 4 million internet subscriptions. price is the eventual denominator. Wi-tribe. competitors in the WiMAX market such as Wi-tribe (present in only 3 cities) and Augere/Qubee and Mobilink Infinity (present in Karachi only) will take at least another 2 years to break into the market. Wateen also faces competition from system integrators. ZTE and Green packet enter the WiMAX market in Pakistan. 4. the biggest challenge is the classification of competition. The presence of substitute products such as GPRS and EDGE also puts the cellular operators in competition. whereas on the carrier side. Wateen has set-up a huge entry barrier for any other operator who would have serious difficulties in securing right of ways to match this number. On the consumer side. Huawei. LDIs. in addition to the competition offered by above mentioned players. As more and more vendors such as Motorola. it is the same entities that comprise the customer base. World Call.
Wateen also did not face any issues of legacy infrastructure and therefore built the best NGN (Next Generation Network) allowing it to offer differentiated products at a lower cost of delivery compared to its competitors.. 21 .
15 and 20 years IRU • SLA and O&M supported . 4. The product is positioned to match the insatiable appetite for bandwidth in the Carrier & Operator segment.e. creating an asset in the books of the customer. internet.1 Transmission / Capacity 4. Dark Fiber is leased to organizations seeking dark fiber connectivity on an IRU basis i. Feature • Nationwide and metropolitan fiber network • Very high capacity Benefit 10.7 PRODUCT PORTFOLIO Wateen offers a unique product mix allowing depth and breadth in its product portfolio to ensure we don’t just cater for customers needs but become part of the customers’ life.8. As Wateen was building a new company in a highly infant and fragmented market it leveraged its infrastructure and its key Unique Selling Proposition (USP) namely providing end to end solutions whether triple play for households (voice. This entails a long term investment by the customer. With Wateen’s nationwide optical fiber network capacity almost at an unlimited level. Wateen introduced this product in the market to gain high margins and a quick ROI from optical fiber network.e. Dark Fiber Advantage bandwid th • Availabl e on 5. TV & mobility) or targeted corporate solutions across all the business needs for urban and rural connectivity.4.2 Dark Fiber Never before had any telecommunication company in the country. with SLA and Operations and Maintenance (O&M) support.8 WHOLESALE PRODUCTS 4. making it operational by setting up the required equipment.8. supported by a long term contract. created a Dark Fiber / IRU product. specifically the mobile phone operators. Indefeasible Right of Use which varies from 3 years to 20 years. depending on customer preference. both preventive and corrective maintenance. Wateen only provides the customer with a pair of dark fiber and the customer is responsible for ‘lighting’ it up i.
ensuring high reliability and availability imposed through the Service Level Agreement (SLA). particularly voice traffic • 24x7x365 availability • Scalability without any additional CAPEX as customer base and demand • Addition of asset appreciate net worth of the company • Offer affordable products to customers • Grow market share 4. stretching up on the nationwide fiber network.• Ease of transporting high grows volume traffic.3 Lambda service Wateen Lambda service provides 10Gbps connectivity over fiber. The allocation of bandwidth over the lit-up Lambda is targeted to serve as the secondary/redundant link for the carrier. by ‘lighting’ up just a single wavelength from the full optical signal.8. 22 .
not . and 20 years IRU • SLA and O&M support Lambda service Advantage • Ease of transporting high volume traffic. DPLC provides for domestic transport within Pakistan. 10. This is where the role of DPLC. the supply required to fuel that growth will also increase. This model is mostly suitable for customers who have a traditional hub and spoke network topology. simply put. is a point-to-point “pseudo-wire” service.Feature • Nationwide network • High capacity bandwidth • Available on 5. 4. Wateen’s clear channel circuit or Layer 2 MPLS Virtual Private Network (VPN) also known as L2VPN. 15. whilst for an IPLC (International private leased circuit) various submarine cable systems are used.4 Managed Capacity Where customers seek lower capacities of bandwidth. All sites are connected to an aggregation site which serves as the regional hub resulting in a point to multipoint link between the aggregation site (the hub) and the remote sites (spokes). It is used to replace existing physical links based on TDM circuits. For DPLC (Domestic private leased circuit) Wateen uses its own Optical Fiber network both on the nationwide and metropolitan area networks. particularly voice and internet traffic • 24x7x365 availability • Scalability without any additional CAPEX as customer base and demand grows Benefit • Offer affordable products to customers • Grow market share 4.8. With the growth of consumer broadband.8. whereas IPLC provides transport across international destinations. Wateen offers managed capacity on its fiber and VSAT networks. IPLC. and IP-Transit comes in. is raw Internet bandwidth which operators and large organizations acquire to have presence on the Internet backbone. IP-Transit. Managed Capacity Advantage • Capacity available on nationwide and • End to End network Feature • • • • Metro network from E1 to STM64 (2Mbps to 10Gbps) • 24x7x365 availability Offered in 71 cities of Pakistan • No CAPEX required through fibre and VSAT Monthly service charge SLA and O&M supported Secure transmission Benefit • Save infrastructure costs and expense • Lower network management resources and expense • Offer same rates for Karachi and upcountry sites.5 DPLC & IPLC and IP Transit As the demand for consumer broadband grows.
Due to this reason. but also the size of average bandwidth pipe going into consumers households. IP-Transit has consistently seen triple digit growth in the last two years. 23 . IP-Transit will outgrow its current growth rate.3 million broadband subscribers by the year 2013. As per PTA’s forecast of over 4.only has broadband proliferation increased.
Axis. Wateen provides state of the art facilities for Colocation/Tele-housing. • Possibility of interconnects with various telecom operators abroad • Solicits inbound traffic towards the customer from ISPs. DELL. With this approach. This is the age of policy-based. voice and video capabilities. digitized voice. Financial. back up power and bandwidth capacity. IPLC and IP Transit Advantage • Can carry data. swift deployment and seamless integration. Wateen has now the largest market share in System Integrator in Pakistan for the last three years with its penetration in Services Providers. cost effective solutions generating quick ROI’s with expertise in design. Microsoft. fax. space. . with international project experience in the products of Cisco Systems.8. BARCO. Hospitals. EMC. video or any other form of digital transmission. The sites have a provisioning of inter carrier connectivity. Oracle. Industrial Sectors. to deploy their infrastructure.Feature • Nationwide and International connectivity • Available in Half as well as Full circuits • Offered on various bandwidth levels • Monthly service charge DPLC. This has enabled Wateen to be the leading Solution Provider in the market. Globitel. network-intensive. McAfee. offering customised. security. Educational. Hotels and Shopping Centre and SMEs. Yet it is unlikely that companies may find suitably skilled and specialized people in their own existing set up. at bandwidths from 64 kb/s to 1000 Mbps • 24x7x365 availability Benefit • Offer affordable products to customers for their domestic and international connectivity requirements. and vice versa 4.8. Schmid and other multiple leading technology providers. fire detection/suppression. and speedy and high bandwidth and business-critical multimedia applications that bring together secure data.7 System Integration Intricacy of IP and Unified Communication services is experiencing a spontaneous rise. IBM. Feature • Provision of inter carrier connectivity • Fire detection/suppression • Back up power and bandwidth capacity • Monthly service charge Co-location / Telehousing Advantage Benefit • 24x7x365 Technical Support • Closed Circuit Video • NOC performance monitoringmonitoring and Logging at • Carrier neutral environment entry points 4. Wateen has largest team of highly skilled and certified staff. Polycom.6 Co-location/Tele-housing For our strategic partners. Riverbed.
• Network Consultancy . Wateen provides nothing less than the very best to our clients in. Wateen’s Value Added Reselling (VAR) with its vision to be the number one System Integrator in the region.24 Product Offerings Value Added Reselling (VAR) In year 2009. solution providers. takes the lead in local market and excels in offering customized services for the planning. traditional resellers and vendor services arms. That enormous number includes IT consultants.gathering requirements • Product/Service Selection and Procuring • Integrating and deploying solutions Implementation • Transitioning to support & Operations 25 . implementation and optimization of IT/Telecom solutions including integration of multiple next generation technologies like: Feature • Mobility and Wireless Technologies • IP Telephony • Unified Communication • Collaboration Value Added Reselling Advantage • IP Contact • IT Solutions Industry Solutions • Secure Multi Protocol Label Switching Network IP/MPLS Benefit • Data Centre • EDN .Enterprise Data Network • IP Video Surveillance • Visual Communication/Video Conferencing Professional Services (PS) There is always need of right resources to understand the ultimate business objective. designing. designing. Wateen’s Professional Services deliver customized services for the planning. Wateen helps its clients to achieve optimum accelerated performance levels by deploying innovative solutions to complex problems. top 500 VAR companies generated a grand total of $600b even in the global recession. implementation. and optimization of IT/Telecom solutions based on business needs of the customer and the solutions offered in VAR technologies.
deployment. Network and Physical Security Product Line • Consultation. Hosted Solutions Feature Advantage Benefit • Low start-up cost. which add value to its customer in saving premise based system cost. Unified Communication.& Customer focus Winner of Cisco Advocacy Award for 2006 • Largest Business in Advance Technologies.Managed Network Services (MNS) Leading Technology providers have declared the “the future is Managed Services”. The Hosted model. like Security. UK based consulting analyst consulting firm. Wateen Telecom being the leading Hosted Solutions Provider in Pakistan offerings Hosted Data Centre and Hosted Contact Centre. Integrate and Managed Approach • Complete Managed Services Support • Designing Economical Solutions • Cisco Solutions Partner of the Middle East and Africa (MEA) region for Year 2008. has injected life into cash flows of thousands of businesses all across the globe. APAC. • Managed NOC Advantage • Customer services one umbrella can enjoy under all Benefit • The only Integrator with Service Edge System Providers • Easy to choose technology exactly meeting their business need • Focus on core business thus • Quick ROI • Consultancy with right consultants in achieving Business objectives. Ovium has declared that Managed Services market has grown to over $40 billion in year 2009. Wateen’s MNS offers services at rates such that our clients end up saving considerable amount of OPEX and CAPEX. investment in resources and money in building in-house data and contact centres. System Integration (VAR. small initial cash• No Capex at all and cost saving • Stretching Business for SMEs outlay with low total cost of integration and ongoing maintenance ownership relgardless of application or network complexity • Small monthly payments that come out • Flexible in scaling up and down of the operating budget instead • Ease of transition from a premise-based of the implementation. Wateen Solutions’ with its largest number of skilled and certified resources offers MNS that helps customers to focus solely on their core competencies while Wateen takes care of customer’s key value chain elements. with minimal financial capital budget or system impact Simplification of • Wateen’s responsibility for contingency planning requirements. a proven model in many western nations. PS & MNS) Feature • Complete suite of IP and Unified Communication. MEA and North America • Global reach in these areas Hosted Solutions The “Hosted” concept is relatively new to the market and has emerged as a cost saving alternative to traditional premise based solutions. . • End to End offering under one umbrella with most economical offerings • Pr-active monitoring • Improving Gross Margins with Services • Revenue Assurance • Customer loyalty • Customer Trust with extended coverage in three continents like. Customer Voice Portal and IP Video Surveillance.
model • Economical Operational Model other Wateen especially and DRs • Complimenting Products like connectivity • Saving HR overheads • Ensuring Services with high margins • Customer loyalty • Complimenting VAR Business • Pay as you grow Model • Flexible for Customer 26 .
For the premium seeking market. affordable and superior Broadband services.9 RETAIL PRODUCTS 4. There are currently 413.2 Data Portfolio With the lack of quality enabled data services due to infrastructural issues generated a large demandsupply gap in the market. Multan and Karachi in the near future. this growth is going to be sustainable as depicted by market dynamics presented below: Broadband Internet Advantage Feature Benefit • WiMAX Internet packages • Flexible and affordable packages• High reach that has brought in ranging from 256 Kbps to 1 that focus on customer needs volumes Mbps • Service offerings for the • Growth in market share • HFC and GPON Internet premium (niche) market as well • High ARPUs Packages ranging from 256 • Superior user experience • Customer Loyalty Kbps • Ease of paying bills for the • Differentiation as compared to to 4 Mbps customer competitive service offering • Download capped as • Reliability of service well as Unlimited download service offering • Online service and usage monitoring through a “Self Care Portal” • Tripple play services on HFC and GPON and Dual Play services on WiMAX • Account recharge through Scratch Cards.HFC and Gigabit Passive Optical Network . ATMs and POS machines • Home Delivery of scratch cards • Trained team of individuals who specialize in WiMAX and HFC/ GPON deployment 4.476 Broadband subscribers through WiMAX and Optical Fibre (Hybrid Fibre Coax . offer the consumer a unique taste of unmatched service excellence. making Wateen’s existing infrastructure very . PTCL added almost 148. Wateen at the same time added 135. Broadband services through HFC (Hybrid Fibre Coax) and GPON (Gigabit Passive Optical Network) in Lahore.9.000 DSL subscribers in the previous year growing at a rate of 248%.4. With service offerings in more than 22 cities and an experienced set of individuals who specialize in WiMAX services.1 Broadband Internet For a market that demanded reliable.GPON) deployments growing at a staggering rate of 349%. Wateen is miles ahead of current WiMAX players who merely learning the ropes at a time when the whole industry is growing at an explosive rate. Wateen and PTCL are major players in the Broadband market having a combined share of over 65%. Wateen has come in and completely revolutionized the way Broadband services are offered to the consumer.809 broadband subscribers in Pakistan.9.
which is offered in Layer 2. The product is offered on multiple platforms and on various bandwidths so that various bandwidth requirements could be fulfilled.advantageous. along with the flexibility of the client to request a change in bandwidth. For all our Enterprise customers virtual private network (VPN) provides a secure clear channel circuit . 27 . Layer 3 and Any-to-Any configuration to cater to various needs of different customers.
The recent growth in the telecom sector has been staggering with cellular & local loop operators competing over their share of basic voice services. Unlike the consumer segment. we also extend the convenience of a ‘one-stop’ solution for all the . business users are highly price sensitive.an affordable and high quality telephone service. user friendly call management features and empowering them through a self-care portal. can leverage its large and robust IP-based network to address these needs. As a result the current teledensity now stands at 63%. Wateen’s Fixed Line Telephony has been designed to meet and exceed the basic communication requirement of every customer .not only do our competitive tariff plans allow the customers the flexibility to address his needs. quality conscious and require customized solutions to meet their unique needs . Leveraging Wateen’s longhaul network and its LDI operations. Wateen provides its customers with reliable and superior services. PTCL and WorldCall with GSM & other service providers only operating at the fringe. Owing to the scale of their Long Haul & Metro networks the only main players in the Enterprise Telephony Segment are Wateen. Wateen’s fixed line telephony seeks to enrich the ‘Telephony Lifestyle’ of its subscribers by offering them high quality services. We put our customers first . are a testament to its commitment to best serve the Pakistani consumer market.and Wateen. ranging from basic digital voice to enhanced telephony. unlike its competition.3 Telephony .9.and to bridge the gap between the traditional services presently offered by various other operators and those that are required in the 21st century. a number that represents an extremely lucrative business opportunity for extending ‘enhanced’ telephony services to customers.Consumer Wateen’s Telephony service portfolio was developed in order to address the unmet needs of the Pakistani consumer . Wateen’s current services.Feature • Offered on multiple platforms • Offered on various bandwidth levels • Monthly service charge • SLA (99% or higher) and O&M supported • Secure transmission VPN Advantage • Scalability without any additional CAPEX as customer base and demand grows • End to End network • 24x7x365 availability • Provide the inroads for crossselling other portfolio products once an entry is made Benefit • Save infrastructure costs and expense • Stringent SLAs deliver availability of 99% or higher • One window operation for all connectivity needs due to IPconvergence • Lower network management resources and expense 4.
Fixed Line telephony Advantage • High quality of service • Flexibility to choose services according to needs • Transparency of charging • Convenience of managing a single number • Ability to differentiate our offering/ empower customer to get the most out of our service Feature • A robust network • Customer-centric tariff plans • Self-care portal • Keep your number for life • Innovative and user-friendly value added features Benefit • Greater customer satisfaction • Increased customer savings • Greater customer trust • Increased loyalty • Increased revenue potential 28 .telecommunication needs of our customers.
Carrierpre-select (CPS) is an innovative product providing the end users of different operators the flexibility to choose the carrier for calling international. Wateen Video Conferencing Advantage • Ability to differentiate our service & convenience of usage • High service quality • Potential for a large subscriber base • Convenience & flexibility for the customer/ low barrier to entry Feature • Video-enabled service using video phone sets • A robust nationwide network • Multiple Last mile access • Support for Multiple enduser devices Benefit • Increased customer loyalty through a more satisfying user experience • Increased revenue due to a ‘larger On-Net family’ • Increased penetration 4.9. Wateen Video Telephony will allow users to not only talk to one another but at the same time see each other.1 Wateen Audio Conferencing Growing from the basic human need to interact. An affordable product for the mass consumer market. which also contributes to the LDI wholesale margins. all with the convenience of a normal voice call. where the end user benefits from cheaper rates with high quality voice and the operator enjoys additional revenues and increased subscriber base.3 Carrier Pre Select (CPS) In addition to its focus on developing ‘enhanced’ services. Wateen audio conferencing services allow home users with a hassle-free tool to communicate with anyone and everyone in their social networks . This service generates over 5 million minutes per month.3.3. Imagine ‘virtually’ sitting across each other despite being hundreds of miles apart. local or nationwide numbers. Wateen video telephony seeks to add that ‘visual’ touch to simple voice conversations.speaking to many family members in different countries simultaneously or carrying out a group study session without ‘actually’ being present together is all easier than it sounds. Wateen provides CPS services to various different LL and GSM service providers.2 Wateen Video Telephony Leveraging our network. Wateen realizes that significant revenue potential of ‘basic’ voice services targeting the masses. imagine never missing a smile again.18.104.22.168. Wateen Audio Conferencing Advantage • Innovative and userfriendly • Ability to quickly cater to increased market demand • Service offering can be extended to subscribers of other operators Feature • A high-end Audio Conferencing solution • Low cost Network Scalability • A ‘standalone’ service Benefit • Greater customer satisfaction resulting in Increased service uptake • Grow market share • Increased revenue potential 4. Carrier Pre Select Advantage Feature Benefit • Freedom to select a carrier before • Ability to use best tariffs available • Increase service uptake calling from the market • Increased revenue and margins • Hassle free dialing • Ease of use through ‘swap’ deals • A’single’ billing for CPS & other • No minimum monthly/daily • Increased brand usage usage commitment awareness through joint promotions • 24x7 customer support • Greater customer with satisfaction .
GSM vendors 29 .
. PRI & SIP. can leverage its large and robust IP-based network to address these needs. Calling card services received the brand of the year award in the first year of launch and captured a major share of the market within the first 6 months. Similarly. Wateen. where additional profits are generated through the wholesale service. a benefit that Wateen will continue to pass on to its customers and shareholders. unlike its competition. IDD • Available in multiple denominations • Excellent customer support • Ability to use from public phone Benefit • Better service usage • Increased revenues • Increased brand awareness due to massive ‘grass roots’ level service uptake 4.and Wateen. is well placed to benefit from this trend.4 Telephony . PTCL and WorldCall with GSM & other service providers only operating at the fringe.4. Unlike its competitors.9. There is an increased predisposition of the business community to reduce their costs and adopt new costeffective technologies. quality conscious and require customized solutions to meet their unique needs .4. all Wateen users will find Wateen’s services tailor made to meet their needs. This service also contributes to the LDI (Long distance & international) wholesale business.9. 4. Mobile. Wateen’s Enterprise Services portfolio has been designed to address the needs of all our business users . business users are highly price sensitive.9. WCard Advantage • User convenience • Increased savings for the customer • No minimum monthly/daily usage commitment • Increased customer satisfaction Feature • Nationwide availability • Easy to use • Affordable tariffs for NWD. Wateen’s network allows for a reduced time to the market in wake of any potential changes in the regulatory environment.1 Trunking Solutions Wateen provides cost-effective & easily scalable trunking solutions to business users currently using a PBX (Private Branch Exchange) for communication.3.Corporate / Enterprise Owing to the scale of their Long Haul & Metro networks the only main players in the Enterprise Telephony Segment are Wateen. Wateen’s strength lies in its ability to provide its services as one of many PBX interfaces such as POTS. through its customer-centric offerings that guarantee convenience & savings.from a large corporation with offices nationwide looking to reduce communication costs to a small business seeking to improve its professional outlook. Wateen is also unique in its ability to quickly meet evolving needs of the Pakistani business community and that too without incurring significant marginal CAPEX.4 Calling Card / Calling Account WCard is a multi function card that enables customers to use it as a calling card from other operators in addition to top up their Wateen pre-paid account. These trunks will terminate both inbound calls and complete external (off-site) calls that originate from ‘behind’ the PBX. Unlike the consumer segment.
POS solutions) • Ability to offer add-on services. while maintaining geographically dispersed locations. a private numbering plan (or extension numbers) is used for communication within the office.9. such as UANs. DID-DOD Numbers etc. • Single line. advantages and benefits of Wateen UANs are listed below: . Direct Inward Dial (DID) / Direct Outward Dial (DOD) numbers are logical PSTN numbers that can be ‘mapped’ onto a private numbering plan.g. In a typical PBX environment. FAX.Trunking Solutions Feature • Support multiple termination interfaces (SIP. UAN are 9 digit numbers that start with the digits 111. by allowing Wateen to become a one-stop solution for all the business needs of a customer.direct outward dial numbers Feature • Provide a separate number to customer facilitation each individual in the organization • Choose between DID only or • DOD only service Advantage Benefit • Flexibility to choose any Wateen • Complete • number for DID-DOD. PRI. to generate an additional revenue stream and to utilize the Wateen network already in place. allowing ‘internal’ users in an organization to directly receive or make a call. with the capability to cater to exact customer needs • Complete customer satisfaction and increased revenue streams • Complete customer facilitation and easy to manage operations Direct Inward Dial / Direct Outward Dial (DID-DOD) service adds to the Enterprise Telephony Product portfolio. single number.2 Universal Access Numbers (UANs) Universal Access Numbers (UAN) services were initiated to complete the Enterprise Telephony Product portfolio. Direct inward dial . A few of the features. bypassing an auto-attendant or an operator. UANs enable customers to use a single and easy to remember number for incoming calls. • Complete customer satisfaction regardless of the DID .4. supports multiple channels Advantage • Flexibility to choose from multiple interfaces without having to invest in additional hardware • One window operation for all telephony needs • Scalability without any additional CAPEX as customer base and demand grows Benefit • Wider target market. POTS) • Interoperability with standard solutions & services (e.DOD with a one window operation number provided Scalability without any additional • Provide solutions that cater to the customers needs CAPEX as customer base and demand grows 4. from the and easy to manage operations available lists Flexibility to select any extension.
4 Wateen Video Telephony Solutions For business users. 4.3 Hosted PBX Hosted PBX is an alternative to the traditional PBX model whereby a company’s telephone operations reside with and are managed by the service provider. Multi-site businesses can avail Wateen video telephony solutions to not only conduct their business operations more effectively but also enjoy significant reductions in their travel expenses.from a low cost ‘soft’ video client to premium quality video phones. Wateen Video Telephony Solutions Advantage device s Feature • A robust nationwide network • Video-enabled service using video phone sets • Multiple Last mile access • Support for Multiple enduser Benefit • High service quality • Ability to differentiate our service • Potential for a large subscriber base • Convenience & flexibility customer/ low barrier to entry for the . install.9. Wateen’s Hosted PBX solution will be a scalable. install. window operation for all Ensure complete business support and services efficiency through customized routing • Scalability without any additional CAPEX as customer base and demand grows 4. Benefit • Customer can choose interfaces that best suit their need • Advance PBX features without having to buy . video communication is no longer a luxury but a business need. Hosted PBX Feature • Support for Hybrid solution trunking • Support over multiple trucking PBX in interface companies Advantage • No additional cost of a interface • Compatible with existing the market to facilitate in migrating to Hosted PBX.4. cost-effective and feature rich solution which will allow customers to avail advanced PBX features without having to buy.UANs Feature • Provide a single number for all incoming calls • Access to the Universal Access Number from all major cities Advantage Benefit • Customized routing options • Increase in customer facilitation • Complete the enterprise and satisfaction with a single telephony portfolio with the number to dial flexibility to cater to all market needs • Flexibility to choose from a • Complete customer facilitation single location for UAN and satisfaction with a onetermination or multiple locations.4. maintain or upgrade PBX hardware • Customized Self Care portal • Round the clock support. Additionally. this service will also allow small businesses to achieve the look and feel of larger entities. maintain or upgrade PBX hardware.9. The service leverages Wateen’s network to offer a high quality of service and allows the business users to choose the end-user device of their choice .
• Increased savings to business users due to a reduction in travel expenses • ‘Brand’ enhancement due to innovati ve product offering • Increased penetration & revenue 32 .
For the first time in Pakistan.4. Instead the called party pays for call charges. unlike traditional ad-hoc (3-6 persons) conferencing facility provided by Cellular or Fixed Line service providers.5 Content & Media Wateen has taken home entertainment seriously and has brought a variety of value added services to its customers.9. Wateen’s Electronic Fax (e-Fax) service will allow its users to send and receive faxes using a Wateen LL number without a fax machine.4. Callers are charged a higher rate on their phone bill.9 digit non-geographic numbers that start with the digits 0800. Music Portal. initiating.9. irrespective of whether conference participants are based in Pakistan or abroad. Wateen brings it all to its customers under one roof as a one stop shop for world class entertainment. news. legal selection of songs ranging from classic to techno. managing & terminating multi-party conferences. thereby enabling us to reach out to any and every business. Wateen Audio Conferencing services will offer easy-to-use. Online Gaming.a telephone service (0900 numbers) that provides recorded information or live conversation for callers similar to 1-900 number service in the U. analogue phones & GSM handsets. Under this umbrella. which is then split between the service provider and the network operator whose network is used for originating calls to the said PRS number. rock to heavy-metal.5 Audio Conferencing Wateen’s audio conferencing services will enable businesses to effectively deal with their internal and external clients especially for multi-site businesses. Wateen is providing the largest. the Wateen Audio Conferencing service would be accessible from a wide variety of end points including PC soft phones. The portal is broken down into the major segments Wateen Music Portal and Wateen Infotainment portal. Wateen brings analogue and digital TV. With a huge selection of music which is backed and supported by its partnership with Arvato under the brand name Getmo. TV or internet. Whether someone wants online gaming. allowing for mobility & greater confidentiality without any CAPEX. music. Callers do not pay any charges for calling 0800 numbers when dialed from anywhere within the country. with a catalogue large enough to suit everyone’s tastes. Wateen’s portals are an innovative project. IP phones. This will allow users to maintain a database of communication through fax. Infotainment Portal and many other first of its kind entertainment products. Audio Conferencing Feature • A high conferencing solution • Low cost end audio Advantage • Innovative and user friendly • Ability to quickly cater to increased market demand • Service offering can be extended to subscribers of other operators Benefit • Greater customer satisfaction resulting in Increased service uptake • Grow market share • Increased revenue potential network A 'stand scalability • alone' service Wateen’s other planned Enterprise Telephony services include: Toll free numbers . browser based solution for scheduling. 4. Premium Rate Service (PRS) . Wateen’s infotainment portal is designed to be the one stop solution to all online needs for a home user. within and outside Wateen’s network. the usability of which spans through the entire internet user community of Pakistan. They have quickly become one of the most visited sites in the county. Wateen has been able to bring legal music to Pakistan for the first time. Plus.S. .
Keeping that in mind. 33 .to hold contests every year and the winners have participated on international forums.The World Cyber Games . Wateen’s Online Gaming (WOG) service is designed to link the gamers together for a richer gaming experience both at domestic and international levels.Internationally. Wateen has teamed up with the only International Gaming event . the gaming industry is worth USD 10 Billion and is the fastest growing entertainment sector in the world.
Motorola is known around the world for innovation in communications. Headquartered in San Jose. The company develops technologies. • network products(FTTx. California. Stockholm in Sweden.18. Moscow in Russia and Bangalore in India in addition to those in Beijing. Wateen Telecom selected Motorola's WiMAX and IMS core technology to build its next-generation wireless broadband network in 2006. Optical. Shenzhen. A Fortune 100 company with global presence and impact.000 employees and annual revenue of $36. Motorola had sales of $36. is an American multinational corporation that designs and sells consumer electronics. Nanjing. • applications and software(IN. Mobile Softswitch. mobile devices and Bluetooth accessories. Major products are designed based on Huawei's ASIC chipset and utilize shared platforms to provide quality and cost-effective products.18.11 billion as of 2009. products and services that make mobile experiences possible. 4. CDMA2000 1xEVDO/CDMA2000 1X. With Motorola's global experience and services expertise. Hangzhou and Chengdu in China. Cisco has more than 65. 4.3 CISCO Cisco Systems. cable modems. Huawei's global R&D centers are located in Silicon Valley and Dallas in USA. enterprise mobility solutions. • core network products ( IMS. Routers. Cisco has a proven track record of successfully capturing market transitions. Huawei's products and solutions encompassing: • Wireless products (LTE/HSPA/WCDMA/EDGE/GPRS/GSM. Motorola is committed to delivering next generation communication solutions to people.18. BOSS). Wateen also selected Motorola's managed services capability which ensures the service provider focus on critical resources. Shanghai.1 Motorola Limited Motorola is a global communications leader powered by a passion to invent and an unceasing commitment to advancing the way the world connects. digital set-tops. LAN Switch). TD-SCDMA and WiMAX). NGN ). Company’s portfolio includes communications infrastructure. mobile data service.2 Huawei Technologies Company Limited Huawei is a leading global telecommunications solutions provider with long-term partnerships with operators around the world. Inc. helping to increase operational efficiencies and match the pace of rapidly advancing technologies. • as well as terminals(UMTS/CDMA).4. USA. businesses and governments. Its passionate employees and unmatched R&D capabilities enable them to react swiftly and effectively to meet their customers' needs with a comprehensive and customized set of end-to-end solutions and products.6 billion in 2007. .18 SUPPLIERS & PARTNERS INFORMATION Key suppliers of the Company are as follows: 4. Wateen's WiMAX network was deployed in 17 major cities within a short time span of just nine months. xDSL. networking and communications technology and services.
and the most recent market transition of Collaboration and Web 2.0 technologies.Beginning in 1997 with the reality that Voice and Video would all be one. 56 . moving to the Networks of Networks in 2000 and the Network becoming the platform for all related technologies and the core of customer solutions.
making it one of the top R&D spenders in the world. 4. engineers. Cisco has evolved from Enterprise and Service Provider solutions to addressing customer needs in many other segments including Small. a vision of using distributed and embedded intelligent technologies to make communities and business work more effectively and efficiently. and sales professionals in over 170 countries. Consumer and Commercial. It has been nicknamed "Big Blue" for its official corporate color. Polycom solutions have become critical to companies and organizations trying to win in today's increasingly competitive world. instantly. IBM manufactures and sells computer hardware and software (with a focus on the latter).000 employees worldwide. based technology company and has eight research laboratories worldwide.2 billion a year in R&D. consultants. The company is one of the few information technology companies with a continuous history dating back to the 19th century.18.4 IBM International Business Machines.S. The network has truly become the platform for providing one seamless. technology and IT consulting corporation headquartered in Armonk. nine National Medals of Technology. and offers infrastructure services. and five National Medals of Science. hosting services.Over time. IBM has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years. Cisco is committed to innovation and research and development is a core component of our corporate culture. With over 407. they shorten chains of communication over distance. Cisco spends nearly $5. Today. As a chip maker. Polycom provides the complete suite of a face-to-face meeting that include hearing each other (audio). IBM is the largest and most profitable information technology and services employer in the world according to the Forbes 2000 list with sales of greater than 100 billion US dollars. and consulting services in areas ranging from mainframe computers to nanotechnology. transparent customer experience. and continuously enable innovative products and services. IBM has been well known through most of its recent history as the world's largest computer company and systems integrator. Polycom makes meeting over distance just as productive as being there. Polycom is the sole provider of integrated. The company has scientists.5 Polycom Polycom provides the most life-like experience for communication and remote meetings from anywhere to anywhere. is a multinational computer. IBM employees have earned five Nobel Prizes. IBM holds more patents than any other U. four Turing Awards. end-to-end unified collaboration solutions that help organizations meet both productivity and cost containment challenges. North Castle. Polycom enable rapid and collaborative decision-making. seeing each other (immersive telepresence and video) and showing each other things (content). United States. Its business agenda since 2008 has been focused on "Smarter Planet". New York. Polycom leverages the . abbreviated IBM.18. As the market leader in unified collaboration solutions. 4.
Recently we raised the bar yet again. MS is committed long term to the mission of helping their customers realize their full potential. Washington. Last year we delivered our vision for collaboration with best-of-breed Voice over IP and Video over IP products. Just as MS constantly update and improve our products. licenses.6 Microsoft Microsoft is a multinational computer technology corporation that develops. manufactures. USA. its most profitable products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software among many other user friendly applications and systems. and supports a wide range of software products for computing devices. We have over 600 patents either issued or pending approval and over 15 million lines of active code across our product portfolio. 57 . Headquartered in Redmond. 4. MS wants to continually evolve company to be in the best position to accelerate new technologies as they emerge and to better serve our customers.growing organizational demand for collaboration. Polycom UltimateHD™ technology. by becoming the only provider of the ultimate high definition solution.18.
4. IP/MPLS core.2 billion during June 2004 . Wateen’s projections are in line with research recommendations. which would have an impact on telecoms / media operators including Wateen. resulting in lower revenues and EBITDA.22. This may be a result of: (a) Pakistani ISP market growing at a rate lower than projected (b) Lower than projected market share for Wateen (c) Greater competition may result in higher subscriber churn rates to other operators ARPUs from subscribers may also be lower than projected. Mitigant: Successive governments in Pakistan have taken a very positive stance to the telecommunication industry.22 RISKS AND MITIGANTS The Company wishes to highlight the following risk factors. The GOP strongly believes in the development of communication infrastructure of Pakistan and is expected to fully support Wateen’s endeavor to make telecommunication.1 Regulatory risk Pakistan Telecom Authority (PTA) or other regulators / government bodies may modify regulations. in terms of addressable market. There has historically never been any incident of dispute or imposition of penalty or fine on Wateen. Its vision is to become the number one systems integrator worldwide by providing lifecycle solutions in emerging technologies such as IP Contact Center. representing over 40 percent of total FDI in the country.2 Market risk There is a risk that Wateen’s subscriber base may be lower than projected. Wateen is fully compliant with all licensing terms as set out by PTA including service quality. The regulatory environment is still opaque. attracted the attention of the GOP. PTA has established itself as a strong independent regulator introducing a number of initiatives to facilitate growth of the industry. In the financial model. which may affect the returns on investment in the Company: 4. affecting the profitability of the sector as a whole. especially broadband. Ltd (with majority holding of Wateen Telecom) is a Systems Integration Company specializing in diversified solutions and services to optimize technology for business needs. 4. OSS/BSS and HFC networks..10 percent within the next five years. The company’s immense experience and immaculate approach guarantees competitive edge to valued customers within and beyond the region.22. Mitigant: With a teledensity of approximately 4 percent and a population of 168 million. . After 2004.June 2007 period.7 National Engineers System Integrators National Engineers Pvt. overall weighted average ARPU assumptions have been made on a conservative basis. IP Telephony. easily available and affordable in the country. the broadband telecom market of Pakistan shows tremendous potential for growth. the success of the industry. It is imperative to realize that price war as well as subsidy war regarding connections governs the acquisition strategy of most of the operators in Pakistan.18. Thus. PTA and the GOP’s positive stance towards the telecom industry has resulted in the industry attracting record foreign direct investment (“FDI”) of USD 4. PTA may introduce tariffs and fees that may have a financial impact on the Company.4. which imposed a tax on the sector. Research estimates suggest broadband penetration to reach 8 percent . signaled by high rates of revenue growth.
Wateen will also aim to provide better products and customer service than the other operators. Although Wateen is the first entrant in the WiMAX market in Pakistan. taking into account subscriber’s switching tendency. is expected to be superior to other potential operators in the country. . high network quality bundled with excellent customer service which will reduce the churn rate. However. its network quality as provided by two top class vendors. Motorola and Huawei. average churn rate is conservatively projected to drop as Wateen intends on providing innovative products.Wateen has projected the average churn rate to increase during the initial phase of operation.
4. WiMAX brings the most advanced developments in wireless broadband access technology at a reasonable cost by spurring severe competition among manufacturers and driving down the cost of equipment. Furthermore. On Wateen’s Board of Directors. It should also be noted that WiMAX technology is becoming a widely acceptable digital system worldwide. The financial expenses will be a function of the LIBOR and KIBOR interest rates over the tenor of the loans. Overall the sponsors also remain committed to ensuring the success of the Company given that they have already invested USD 35 million in equity and have committed to inject further equity in the future. professional and experienced teams in Pakistan. Mitigant: Wateen has one of the most diversified. The members of the management team have the relevant experience both in the local as well as international telecom markets and have worked for premier organizations across the globe. It is anticipated that Wateen will have very few issues in adjusting to the business environment in Pakistan. such as HSDPA (3G). As a result.e.3 Interest rate risk Wateen will have substantial amount of FCY and LCY debt. Wateen’s relationship with its vendors and sponsor financial strength has placed the Company in an advantageous position. the operations of Wateen are . 4. In this respect. the operators run the risk that the equipment used to provide services may become obsolete rather quickly. Wateen has the best quality resources in all functional areas therefore management risk is minimized.6 Foreign exchange risk Wateen has arranged debt from a local syndicate of banks in parallel to the offshore facility. thus.4 Technology risk The global and local telecommunications industry is one of the fastest growing industries in the world. Wateen will also be evaluating the merits of derivate instruments to mitigate this risk. there are various other competing / emerging technologies available with similar capabilities to WiMAX.22.22.4. USD. the offshore facility is denominated in foreign currency i. Furthermore.5 Management risk The risk that Wateen’s management team may not have necessary skills to manage the typical risks inherent in successfully operating WiMAX services as the first entrant in a market like Pakistan. Mitigant: Accurate and timely decision making and financial ability to meet substantial capital expenditure required to upgrade equipment is considered imperative to sustain growth and to ensure continued profitability. the technological risk is largely mitigated. which is a market with similar characteristics. An increase in interest rates would adversely impact Wateen‘s ability to service its debt obligations and also its ability to meet the financial covenants. there is a good representation of telecom sector experts who bring with them vast experience that will be beneficial to Wateen. Given that majority of Wateen’s revenues will be in PKR. 4. the management of Wateen has had the experience of establishing Warid telecom operations in Pakistan.22. Mitigant: Various scenarios have been run on the financial model for Wateen to assess strength of the business model. as it would be able to transfer best practices from past experience.22. In order to hedge interest rate risk. This debt is denominated in PKR whereas.
therefore highly 63 .
Wateen plans to deliver innovative products and services based on an efficient distribution system with excellent promotional activities. The projected market share has been set based on the operations of the new entrant. will be managed by providing the very best of customer services. Although Pakistan follows a democratic form of Government. Mitigant: Although Wateen is the first entrant in the wireless broadband sector in Pakistan. 4.22. Additionally. electoral problems have persisted in the past and have affected the general public. Several sensitivities have been run in the financial model and currency rate variation has been assumed on the conservative side. as it is one of the major contributors to the success of the nation. FTT(x) and Channels businesses come into effect. having sustained the competitive . With the entry of Orascom and Qtel into the broadband telecom market.7 Political risk Political instability has been one of the major impediments for the development of Pakistan. The Wateen brand already has a recognizable recall in the market. Wateen is fully aware of the prevailing currency risk associated with its business in Pakistan. The business plan for Wateen is based on realistic assumptions and sensitivities have been run. Customer satisfaction. with its operators being amongst the largest tax contributors to the government. and this carries significant weight since Wateen is a significant investment of members of the royal family of UAE. Mitigant: Wateen currently has a natural hedge given that revenues from inbound LDI operations & VSAT are USD denominated and these currently contribute approximately 50 percent of revenues. the management of the company is fully aware of the competitive pressures that might stem from the existing and potential operators.8 Competition risk Competition in the telecom sector is fierce and this is evident from the various marketing activities of the existing telecom operators in the country. it is expected that importance of the development of the telecom sector will be recognized. Wateen will also be evaluating the merits of derivate instruments to mitigate this risk. which is the core to the success of the business. 4.vulnerable to exchange rate fluctuations. Substantial depreciation of the PKR against USD may lead to cash flow constraints which may affect the Company’s ability to deliver desired objectives. going forward LDI contribution to total revenues will be significantly lower as revenues from expansions in WiMAX. the management of Wateen has been involved in launching Warid Pakistan where the company has experienced phenomenal growth in a market which has many similarities to this segment. Management is confident that. Furthermore.22. However. successive governments in Pakistan have enjoyed very cordial relations with the royal family of UAE. competition has escalated to a new level. Mitigant: Regardless of the government in power.
they have the experience to compete the other operators in the market. with 64 .pressures in Pakistan’s cellular market.
It was also expected that a rapid roll out by wireless technology (WLL) would compensate the declining fixed line penetration. The leading mobile operator. However most of the operators took cost cutting measures including optimization of human resources.5 GHz and invested on new technology like WiMax. A huge investment is required to roll out new generation of fiber networks in Pakistan. This gives a major opportunity to large scale investors to secure their investments in Pakistan in this segment of the industry.26. the WLL operators like Wateen and Witribe have smartly diverted their resources to Broadband expansion in 3. most of the fixed line operators could not roll out the infrastructure maintaining the incumbent operator still the dominant player with its old copper based infrastructure a main hurdle in the sector's growth. Among cellular mobile operators. Due to new emerging services. Despite these difficulties. Issues like Right of way and lack of unbundling also proved as major hurdles in the fixed line sector's growth. Teledensity of the country jumped to 62% in 2008-09 showing a growth of over 5% over the previous year. revenue and teledensity.GROWTH OF TELECOM SECTOR IN PAKISTAN Despite slow down in economy. After issuing a number of licenses to the fixed line operators. Furthermore.1 Mobile sector . the regulator believed that the market forces would play their due roll for its expansion. operators continued making investment in infrastructure expansion. Unlike the expectations. the sectors revenue grew by 19% in 2008-09 which pose confidence in Government and regulators' policies. Ufone was the only operator reporting a profit while the rest landed with negative earnings. This too caused slow growth in the fixed line sector. cut in employees' perks and freezing employment temporarily to avoid negative impact of economic slowdown on the sector. which too did not happen due to lack of investment by WLL operators. this could not happen. but unfortunately. which placed unprecedented burden on the operators’ import bills. telecom sector continued to grow positively in terms of subscription. Mobilink slipped from green to red in earnings because of the falling exchange rate and rapid drop in the subscribers' base. 4. During the year 2008-09 the sector's financial health could not be improved in accordance with the expectations owing to heavy taxes and falling exchange rates. A dismal situation in fixed line penetration is the major area of concern for the policy makers and the regulator in Pakistan.
Telenor (Norway). As for competitive environment in the sector. there is escalation in mobile penetration up to 57. a UAE based company.3 million. whereby undercutting each other for Voice and SMS services is resulting into higher financial 72 . Since the market shares of all the operators have marginal difference and the gap between the market leader (Mobilink) and the rest of the operators is rapidly narrowing. Warid Telecom (Abu Dhabi Group). there is intense competition among all 5 operators. These companies have heavily invested in Pakistan to lay down the infrastructure and take mobile services to every nook and corner of the country. the sector has recovered from slow growth of past few months. With the encouragement of Government of Pakistan and best efforts by the regulator as well as the determined mobile operators. the companies are now getting into a price war. as the total mobile subscribers have reached to 94. with more than 90% of the country having mobile service access. Nonetheless.4%.Pakistan mobile market hosts some of the world's largest and most experienced telecom companies including Orascom. China Mobile and Etisalat.
the total mobile penetration stands at 58. now being offered by WLL and Mobile operators as well e. With a small investment and a suitable place. international financial turmoil and saturation in metropolitan areas caused less increase in penetration. all the operators continued to increase the number of cell sites and extend coverage across the country. Wireless Local Loop (WLL) has been able to make its mark on the telecom industry by winning the customers' trust. Stock Market Updates.341 cell sites. ending up at 7. the operators have now started sharing the cell sites.518.893). Huge investments are underway for fiber deployment in rural areas of Pakistan. showing a growth of 6. if the mobile penetration in Pakistan is compared to that of the regional countries including India. 4. while the previous year. contrary to that.burden on the companies. that would help industry to improve ARPUs. Voice Messaging. By the end of the reported year.088) and Ufone (4. while VAS decreased from 8% to 7%. Music Library.2 Fixed Line sector The figure below shows that Fixed Local Loop lost its stake in total basic services revenue by 14% this year. As the companies had been aggressively expanding their networks and offering attractive packages during the past two years. GPRS services. Nevertheless. Pakistan remains far ahead of them. however. any common man could buy a wireless PCO and start business especially in rural areas where cellular revolution is yet to make a mark. Mobilink has maximum cell sites (7. WLL market share slightly increased from 7% to 8%. the average growth remained more than 50%.g. Mobile Internet. Sri Lanka and Bangladesh. In the reported period. Although there were some areas in the NWFP and Balochistan almost prohibited for the operators to install their BTS. The operators have come to launch a range of value added services like Mobile banking. Decrease in VAS share in the total revenue of telecom services was primarily due to VAS facilities. With a strong encouragement by the PTA. PTCL still maintains its virtual monopoly in the fixed line sector despite introduction of many new FLL companies. Intense competition.088 cell sites all across the country.903). Although WLL revenue share is the smallest in the basic services chart. but the companies quite courageously kept on increasing their cell sites by sending their vendors to install BTS in high risk areas for the provision of telecom services to the locals of those areas. Zong has erected 4. Comparing to that of 2007-08. it is a major contributor in the overall local loop subscriber . minimum tariffs and reduced investments by the operators could have resulted into less network expansion in the country. Mobile operators kept on expanding their service areas.124 cell sites in the country. Today. Internet.2%. the number stood at 21.903 cell sites erected in a year's time. Utility Bills Payment. and new subscribers also continued to join the networks. In a short span of time. thus showing a growth of 31%. etc. there were 28. however.4% this year.26. whereas LDI increased its share by 16%. followed by Telenor having 6. which helped the operators to install maximum cell sites during this period. Worldcall and Telecard have been able to penetrate into the market by offering viable business solutions in the form of PCOs. followed by Telenor (6. Wireless service providers such as PTCL. In contrast.
as revenues increased. As a result. Long Distance & International (LDI) operators have been in quandary for the last few years due to high settlement rates and alarmingly high grey traffic. However. LDI sector experienced truly exceptional growth last year. During 2008-09. the basic services will hopefully grow over time. With strong focus of companies on triple play services. revenue 73 . especially in rural areas.base. illegal traffic reduced and call rates improved. PTA took control of the situation initiating a number of steps in close coordination with LDI stakeholders.
Currently. GreatBear. SMS. wireless internet and variety of handsets are the main advantages of WLL companies as rural subscribers can enjoy these services as a viable alternative to fixed line services. especially in rural areas where PCO is the easiest and cheapest way to s tart a business.share of LDI in basic services jumped to 39% as compared to the last year's 23%.3 Wireless Local Loop Wireless local loop is an important part of Pakistan's telecom sector as it provides a feasible last mile solution for rural telephony due to relatively low cost of deployment and maintenance. which still lag behind in terms of rural penetration. 4. Wateen has launched its wireless business with strong marketing campaigns and attractive tariffs for triple play services.4 Long Distance & International (LDI) LDI is an essential component of Pakistan's telecom structure as it has the responsibility of providing affordable and reliable media for worldwide telecom access.26. Companies like PTCL.14 LDI operators were awarded licenses to carry international traffic to and from Pakistan. Link Direct and MyTel gearing up to stage a tough competition in the coming years. WLL is a big success. there would be a . The emergence of new operators has proved as an important factor development of WLL sector.26. 4. as they are pushing the existing giants like PTCL.669 cities/towns/villages including AJK & NAs. During the telecom sector's liberalization in Pakistan. Telecard. Prepaid billing. The project of Deployment of Monitoring & Reconciliation of International Telephony Traffic (M&RITT) has streamlined the traffic record. The falling quality of fixed line services is also paving the way for wireless solutions to capture the local loop market. It was expected that LDI market would flourish because of a large number of Pakistani nationals working abroad. 9 WLL operators are providing services to over 11. Worldcall and Telecard to improve their coverage and service standards. billing and detection/ blocking of illegal IPs which had a huge influence in increasing the traffic volumes on LDI networks. Worldcall and PTCL have established their mark as major players in WLL market with Wateen. Pakistan opened the WLL market in 2003 by awarding 93 licenses to 16 operators for 14 telecom regions across the country.
Currently. The POP's have increased from 178 in the previous year to 189 for new installations of DVCom and expansions by Multinet.heavy traffic from the countries like Saudi Arabia. Europe and Middle East and the offshore IT business would also grow with availability of reliable media on cheap rates. the USA. there are 09 companies providing LDI services via 163 Points of Presence (POP's) all across Pakistan.9 billion minutes in the year. The Authority launched “Monitoring and Reconciliation of International Telephony Traffic (M &RITT)” facility. deteriorating economic conditions and illegal traffic hampered the growth of this important sector. high competition. Total international traffic (incoming and outgoing) reached 8. The LDI operators carried a record amount of international traffic to and from Pakistan during 2008-09. which is 25% more than that of the last year. Most of the companies have met the license condition of 14 POP's with Worldcall having 24 POP's. 74 . which could automatically detect IP addresses involved in illegal termination and also block them. These initiatives combined with the PTA's successful raids against illegal operators all around Pakistan gave a new life to the LDI sector as revenues and traffic volumes reached a record high this year. Wi-tribe and 4B Gentle. however. the UK. PTA took notice of the situation closely working with LDI operators to improve the scenario.
PTCL. 145% and 109% respectively. LinkDirect. All operational LDI companies showed positive growth in 2008-09. PTCL leads the share in traffic by a clear margin in both mobile and fixed line termination of incoming traffic while World Call and Wateen proved to be leaders among new LDI operators. and a steady rise is expected in the coming quarters in this regard.727 subscribers during 2008-09. Pakistan has been experiencing astounding proliferation of broadband in the past two years.26.International Outgoing traffic increased by 73% from last year and a total of 2. Therefore. which is negligible when compared to 163% growth of 2007-08.5 Broadband Internet It is estimated that there are approximately 19 million internet users in the country. the overall incoming traffic volumes were kept at bay. Wateen.35million broadband subscribers in Pakistan.9 billion minutes were originated from local networks. PTA estimates that by end of 2013 there will be 4. Wi-tribe and 4B Gentel were the major players with a combined share of 81%. PTCL leads the race by adding almost 148.809 broadband subscribers in Pakistan as compared to 168.5 billion minutes in 2007-08. Wateen and 4BGentel indicated significant growth rates of 189%. Total international incoming traffic reached 6 billion minutes. as compared to 5. This shows growth of 9% in 2008-09. There are currently 413. Wateen and WorldCall are major players in the Broadband market of Pakistan having a combined share of over 79%. Telecard and Wi-tribe are also emerging as important players in the total international incoming LDI market. 2008. Figure28 shows volume of total international incoming traffic terminated on fixed and mobile networks during 2008-09. The incoming traffic to Pakistan stabilized due to massive crackdown against illegal operators across the country. PTCL achieved a remarkable growth rate of 145% adding almost 600 million more minutes this year.082 in June. Broadband subscriber base grew by 146% adding 245. In terms of market share of new LDI operators in total international outgoing traffic. Deployment of monitoring facility at PTA reduced the illegal traffic to a considerable extent this year but the high settlement rate balanced out the positive effects of reduction in gray traffic.000 DSL subscribers showing 248% growth rate in the . 4. Witribe.
26 % in terms of broadband penetration. 75 . With the expansion of fixed line and wireless technologies. the higher the penetration level. its growth rate is almost similar to PTCL which proves the success of wireless broadband technologies. its penetration level is very low.6 Broadband Penetration Broadband is still an emerging technology rather than an established industry in Pakistan. An estimate by Business Monitor International reveals that Pakistan's broadband subscribers will reach up to 21 million by end of 2013. it is believed that the broadband penetration levels of Pakistan will increase over time as well. Resultantly. lack of local content and applications and deteriorating standards of fixed line parameters. Currently. Although Wateen added 46. therefore. This growth trend depicts the fierce competition among the DSL and wireless technologies which is a healthy sign for broadband proliferation in the country. It is imperative from this example of PTCL that broadband penetration is directly related to the network expansion of broadband operators. It may seem a negligible number but it is encouraging to see that the broadband adoption rate is rising exponentially. PTCL has the highest share in broadband market. The more the coverage. 4. Pakistan stands at only 0.804 subscribers in the previous year. PTCL owns the biggest broadband coverage area with DSL available in more than 167 cities. The reasons for low penetration include the focus of operators on big cities rather than rural areas.previous year.26. low literacy rate.
where investment opportunities exist. data and voice.8 Telecom Sector Investments Owing to economic slowdown. of which the cellular mobile share is about 75%.8 million in 2007-08 to US$ 82. the rest of all of the sectors have reduced the level of their investment.for the first time in history which is a great incentive for new customers. Broadband connection charges for 1Mbps connection dropped below PKR 1000/. However. During the year 2008-09. Telecom sectors' contribution to national exchequer rose to PKR 112 billion in 2008-09 compared to PKR 111 billion the previous year. 4. Resultantly little space has been left to spend on infrastructure expansion. EvDO. making its share in total tax revenue as 6-7% per annum. PTA took cognizance of the situation and suggested to the tax authorities and the . HFC holds a 9% share in the broadband market as compared to 25% in the 2007-08. The sector has been overburdened with taxes by contributing over 31% of its revenue through GST and Withholding Tax. WLL and manufacturing etc.11 million in 2008-09. 4. Worldcall has been major the player in CableTV with almost 30. a total of US$ 1.26. Intense competition in the market is also compelling the companies to broaden their scale of advertisement in print and electronic media and improve quality of service. HFC share has been declining over the past years due to introduction of better technologies like WiMAX. there still remains huge areas like Broadband. During the current year. Another benefit of this competition has been the reduction of Customer Premises Equipment (CPE) charges which shall be a huge factor in wireless broadband proliferation in Pakistan. FTTx and no significant competition in the market.6 billion worth of investment has been made by all the operators.Broadband companies are investing heavily in product marketing and promotional campaigns to attract more customers.9 Taxes The telecom sector contributes 1-2% in the total GDP. It allows optical fiber cable and coaxial cable to be used in different portions of a network to carry broadband content. reaching out to most of the population.26. the total investment in the telecom sector during 2008-09 reduced by nearly 47%. Mobilink has also started broadband services via its brand “Mobilink Infinity” in Karachi which has been an instant hit in the city. The WLL has marginally increased investment from US$ 52.26.562 subscribers till June 2009. 4. saturation in the market and global financial crisis.7 Hybrid Fiber Coaxial (HFC) HFC is a telecommunication technology being utilized mostly by CableTV providers. such as video. Following major tax measures were introduced in the budget for the fiscal year 2008-09: • GST/FED rate was revised from 15% to 21% for telecom sector while this raise was only 16% for rest of the economy • Import duty on mobile handsets was imposed @ PKR 750 per mobile hand set (PKR 500 custom duty and PKR 250 Regulatory duty) • Activation Tax on cellular Mobile Sector continued @ PKR 500/ per new connection The enhancement in taxes along with economic slowdown had an adverse impact on telecom sector. Emerging companies like Wi-tribe are even offering free trial periods of up to seven days to catch the attention of potential customers.000 subscribers while Wateen also jumped in with its own HFC network and added 6. the sector continued to contribute handsome amount in national kitty through various taxes and regulatory charges. Despite the fact that the operators have speedily rolled out their infrastructure.
Further it was suggested that Activation Tax @ PKR 500. Particularly it was emphasized that FED/GST that was raised from 15% to 21% for telecom sector needs to be reduced and take par with rest of the economy i. which is liable on every new connection. PTA's efforts. however.e. Further it was apprised to the Government of Pakistan that imposition of PKR 750 tax on import of mobile handsets has increased the mobile acquisition cost in Pakistan which needs to be reduced. is a hurdle in the growth of the mobile sector and it should be abolished.Prime Minister that Government of Pakistan should reduce taxes on the sector. 16%.. proved fruitful. as the Government provided the following relief in taxes to the operators in the budget 2009-10: 76 .
There was only 9% increase in FED/GST collection from cellular mobile sector in 2008-09 compared to 30% growth of last year and 50% growth in the previous year. During the year 2008-09.e. The cellular mobile sector continued to be the leader in telecom revenue.5 billion. GST is one of the main taxes collected from the telecom sector and cellular mobile leads in paying this tax.• GST /FED rate on telecom sector was brought down from 21% to 19. The tax measures introduced in this budget were welcomed by the regulator as well as the operators as they would have far reaching impact on the sector. the government has reduced the GST/FED rate from 21% to 19. The cellular mobile sector showed about 17% positive growth during the fiscal year 2008-09.5%. 4. the rate of growth of FED/GST collection from telecom sector declined in 200809 compared to previous years due to high rates. which is 11% higher than the previous year.10 Telecom Revenue The telecom sector revenue showed a 19.5% • Activation Tax rate was reduced from PKR 500 to PKR 250 per new connection • Custom duty on import of Mobile handset was decreased from PKR. The FBR is expected to collect extra revenue from the sector during 2009-10. Keeping view the difficulties being faced by the sector. The sector has contributed over PKR 49 billion as GST in fiscal year 2008-09. besides providing relief to cellular mobile operators in Activation Tax by 50% i.8% growth during 2008-09 compared to 18. However. This will certainly enable the sector to contribute more to GST collection in the next year. 500 to PKR 250 per set while the Regulatory duty on import of handsets @ PKR 250 was withdrawn • Initially PKR 20 tax per SMS was proposed.2% in previous year. the telecom sector generated revenue to the tune of PKR 333. .26. from PKR 500 to PKR 250 per new connection.9 billion compared to the last year's PKR 278. whose share came out to be 64% in the total telecom revenues. contributing nearly 82% of the total GST annually. however it was later on abolished.
PART 5 5 FINANCIAL INFORMATION 5.1 AUDITOR’S REPORT UNDER SECTION 53(1) READ WITH CLAUSE 28 OF SECTION 2 PART I OF THE SECOND SCHEDULE TO THE COMPANIES ORDINANCE. 1984. FOR THE PURPOSE OF INCLUSION IN THE PROSPECTUS OF WATEEN TELECOM LIMITED 78 .
3. The objects for which the Company is established are :1. operating. III. apparatus and equipment or cellular telecommunication systems. installers. II. To carry on all or any of the business of inventors. international services (LDI). marine and computers and all improvements. sounds.MEMORANDUM OF ASSOCIATION THE COMPANIES ORDINANCE. subject to approval of Concerned Authority. processors and distributors of speech. or are used in conjunction with. managers. telex. long distance. signals or data in all forms. information. operating. To carry on all or any of the business of running. managing and dealing in services and facilities for communication of all kinds including. 2. operators and proprietors or. telecommunication systems. without limiting the generality of the foregoing. The name of the Company is WATEEN TELECOM LIMITED. use. teleprinter. 1984 MEMORANDUM OF ASSOCIATION OF WATEEN TELECOM LIMITED I. satellite. Images. telephone. printed or visual or pictorial matter of all kinds and news. without limiting the generality of the foregoing. music. in connection with or ancillary to. agents. intelligence and message of all kinds. and of managers. received or processed including. local loop network either through wireless or otherwise and to provide all related services. managing . operators. received or processed and all services connected therewith. developers. lay down Long Haul Network. carriers. services and facilities which incorporate. developments and replacement thereof. facsimile. cellular. stations and exchanges for all types of telecommunication and or communication howsoever produced. brokers and consultants in all business connected with communications arid information however produced transmitted. designers. television. telegraph. conductors and performers of and advisers. radar. and dealers in systems. The Registered Office of the Company will be situated in the Province of the Punjab. To carry on all or any of-the business of supplying providing. transmitted. of receivers. manufacturers. transmitters. apparatus and equipment including national and international roaming Facilities.
services. design. use or are used in conjunction with. To invent. 4. or designed for use in. acquire. apparatus. equipment and apparatus for the purposes of communications of all kinds including. install. refurbish. with the aid of. assemble. export alter. maintain. supplying and dealing in services and facilities of all kinds which incorporate. and anything 115 . sell.' utilise. hire out. without limiting the generality of the foregoing. data processing. produce. or capable of. or ancillary to. transmission or reception of messages and signals (including but not limited to data. plant and equipment as the case may be. develop construct. or in any way utilising. in connection with. supply and otherwise deal in plant. systems. manufacture. plant. operate. in conjunction with (direct or indirect) to. renovate. manage. computers operating. managing. in information storage of retrieval or process control.and supplying data processing and information retrieval systems (whether or not remotely located and including but not limited to telex systems) and systems utilising the capture storage processing. recondition. in conjunction with. facilities. equipment and apparatus which is intended for. all or parts of telecommunications. in connection with or ancillary to systems of such descriptions as aforesaid or any of the apparatus and equipment comprised therein. testy import. erect. sounds and visual images) by.
works. training and management services concerning or connected with anything that the Company does in the exercise of its power or has power to do. import. To acquire. offices. laboratories. maintain. market researchers and to provide services including new value added services. plants. piers. plants. roads. To provide services and systems including. telex. depots stores. design. cables. telemessage. without limiting the generality of the foregoing. telegram. laboratories. facilities and establishments and generally to engages in research and development for the benefit of the Company and for other persons and to turn to account the results thereof. recondition. factories. execution. warehouses. and to promote the conduct by other persons of. or in which the Company has gained or developed expertise in the course of its business. field stations. aircraft. produce. facsimile. sell. messengers. telephone. construct. commercial agents. test. carrying out or control thereof and to take any lease or enter into any working agreement in respect thereof. and to conduct. operate. telephone operators. equipping. working. hire out. 8.capable of being used for or in connection with our ancillary to such plant. supply and otherwise deal in any stations. letter. refurbish. processing and forwarding of signals. erect. documentation and . 5. 7. develop. testing sites. to act as business and office managers. install. To carry on the business-of inventors and researchers. management. satellites. answering. workshops. sounds and information by telephone cellular. renovate. exchanges. transmitting. dwelling houses and other buildings. calling and related services and computer bureau for the control machinery utilizing telecommunication or date processing facilities. research and development in connection with any of the activities of the Company authorized in this Memorandum and in any otter area which might benefit the business of the Company or of person having or likely to have dealing with the Company: to establish. ships and vessels of all kinds wharves. alter. construction. mail order bureaux. installations or facilities of all kinds which may seem directly or indirectly to advance the Company's interests and to contribute to or subsidies or otherwise assist or take part in the design. wireless telegraphy and or any other means of communication. utilise. manage. export. advisory. administration. assemble. improvement. control. (including submarine cables). equipment and apparatus as aforesaid. maintain and operate research stations. in connection with the reception. and to provide training and educational courses. voicemail. manufacture. 6. secretaries. development. To provide for the benefit of the persons consultancy. maintenance.
To carry on all or any of the business of operators. sell supply and otherwise deal in directories. pictures. stationery and other documents or material. visual or audible form and forms capable of being used by. 11. journals. periodicals. books. To accept. without limiting the generality of the foregoing. dispose of and use advertising time and space in any media. design. fire and smoke alarm systems and patrols and surveillance of property 10.material for employees of the Company and for other persons in matters which in the opinion of the Company and for other persons in matter are connected with. 9. 12. publish. intruder. computes. to acquire. magazines. or concern or are of benefit to the business and activities of the Company or which utilize the Company's communications systems or services. transmit. in or in connection with. produce. publish. transmit. display. To acquire. produce and undertake 116 . distribute or reproduce in any form whatsoever advertisements and publicity and promotional material of the Company. To detect and investigate crimes relating to the business of the Company and to conduct prosecutions for offences pertaining to the business of the Company. print. providers of and advisers in connection with security and alarm facilities. photographs. systems. brochures. print and reproduce in any form whatsoever including. apparatus and services of all kinds including. and to buy. without limiting the generality of the foregoing. to develop.
sell. . alter. event. 15. tools. install. promote. any of the business of the Company or which in the opinion of the Company may be conveniently or advantageously dealt with by the Company in. erect. supply. organisations and bodies concerned with activities connected or associated with any of the business of the Company. or may be. recondition. fittings. computers. directly or indirectly. and sponsor any product. assemble. images and signals of all kinds as permissible under the law. develop. to provide services of all kinds to such organisations and bodies and to negotiate and enter into national and international agreements arid standards relating to matters of concern or interest to the Company or persons represented by. design. plant. test. 13. to make.permanent or semi permanent form. manage. connection or association with any of its objects or any of its subsidiaries. advance or publicize any activity of the Company. capable of being conveniently or advantageously carried on or done in connection or conjunction with any business of the Company authorised in this Memorandum or may be likely. cables or otherwise) and making. acquire. substances. sell.and international. To invent. machinery. maintain. repair. To establish. individual or publication which in the opinion of the Company will promote. to undertake. maintain and otherwise deal in facilities. renovate. knowledge or expertise. plant. construct. purchase.advertising. buy. export. public relations and publicity consultants and agents. operate. To represent persons at meetings of local. record. To carry on any other related business or activity and do anything of any nature whatsoever which the Company considers is. hire. furniture. sell. things. produce. supply and otherwise deal in all kinds of equipment apparatus. apparatus and equipment used or designed for use for the purposes of receiving and broadcasting or otherwise transmitting (by wireless telegraphy. manufacture. accessories. hire out. hire out. materials. publicity and promotional campaigns and competitions for itself. to enhance the value of or render profitable or more profitable or turn to account or exploit any of the Company's assets or utilise its skills. manage. producing. refurbish. utilize operate. hire. or in connection with. 14. products. appliances. 16. import. components. recording replaying or reproducing programmes. produce. and replaying or reproducing sounds. hire out and deal in sound and other products of all kinds (whether pre-recorded or not) for recording in. and generally to carry on the business of advertising. service. which are required or are likely to be required by the Company or otherwise persons for the purposes of. articles. (hardware and software). closed circuits. national . or haying dealing with the Company.
calculated to benefit the Company or the holding company of the Company or any subsidiary of the holding company or any subsidiary of the Company. property. commercial names and designations formulae. copyrights. the property. whether by personal obligation or by 117 . develop. in order to secure the performance of any contracts. inventions. money on deposit and advance payments with or without allowance of interest thereon subject to the conditions restrictions imposed under any law. 18. purchase or otherwise acquire any patents. 19. or any secret or other information as to. licenses. any invention or secret process of any kind and to use. assets and rights (present and future) of the Company or without any such security and upon such terms as to priority or otherwise as the Company shall think fit and to receive. or grant licenses in respect of. trademarks. obligations or commitments.17. with or without consideration. To apply for and take out. or otherwise turn to account or deal with. exercise. designs. concessions and the like (and any interest therein) or any exclusive or limited right to use. rights or information so acquired as permissible under the law. To enter into any guaranties contract of indemnity or surety ship. secret process. To raise equity or loans or borrow money or secure or discharge any debt or obligation of the Company in such manner as may be though fit by the Company and in particular. services marks. but without limiting the generality of the foregoing by the issue of securities of any kind or mortgages or charges (fixed or floating) founded or based upon all or any part of the understanding. patent rights.
from. liabilities. To make appropriate rule. regulation. regulation or other authorization or enactment which may seem calculated directly or indirectly to benefit the Company and to oppose any bills. To sell. both present and future or by special assignment or to transfer or convey the same absolutely or in trust as may seem expedient and to purchase. To apply for. acquire by grant. concession. dispose of or transfer the business. 23. 28. debenture stock. asset. To purchase or otherwise acquire and undertake and guarantee the whole or any part of the business. To accept securities of any person or any property or interest therein of whatsoever nature in payment or part payment for any services rendered or for any sale or supply made to. execute. finance. by laws. 22. negotiate. assignment. property rights. firm or company carrying on any lawful business. To advance. hire or avail the services of suitable and appropriately qualified personnel. right privilege. order. To draw. 27. and in particular. accept. To guarantee. sell and deal in bills of exchange. property and undertaking of the Company or any asset or part thereof for any consideration. bonds. To insure any property. but without limiting the generality of the foregoing. matter or interest and against any potential liability or loss of the Company or of any other person and the life or health of any person for the benefit of the Company. redeem or pay off any such securities. obligations and securities issued by or in favour of any person or company and in this respect create mortgage or charge over whole or any part of the property assets of the Company. carry out and enjoy any license. 26. rule. make. to sell or otherwise dispose of any of the debts due or to become due to the .mortgaging or charging all or any part of the undertaking. lend or deposit money. proceedings or applications which may seem calculated or likely directly or indirectly to prejudice the interests of the Company or persons having dealings with the Company. the performance of contracts and obligations or to give any guarantee in relation to the payment of any loan. and to give credit or financial accommodation to any person with or without taking any security therefore and upon other terms as may be thought fit by the Company but in furtherance of objects of the Company. To employ. there under. 25. transfer purchase of otherwise. 24. to apply for promote and obtain (alone or with others) any statute. cheques and promissory notes and other negotiable or transferable instrument in relation to the business of the Company. 21. property and assets present and future of the Company. 29. aid in and contribute towards carrying the same into effect and do all things required by the Company. obligations or performance of any person. secure. guidelines or procedures to undertake the business of the Company in an efficient manner. issue. authority. and to exercise. any such person. which the Company may seem fit to accept. by law charter. charter or power which any person may be empowered to grant. franchise. and to pay for. or debt owing. buy. legislative enactment. for the purposes of implementing the business of the Company and to make rules governing the service of the aforesaid personnel with the Company. endorse. 20. discount.
Company to factors or others for collection and to enter into any obligations or recourse or otherwise in connection therewith. 30. To promote, establish, acquire, subscribe to or take any interest in, alone or with others, any company, body corporate, fund, trust, or other person or body of person whether incorporated or not and whether or not having objects similar to those of the Company.
31. To purchase or otherwise acquire all or any-of the business, property and liabilities of any person carrying on a business including all or any part of the purposes without the objects of the Company or a business which in the opinion of the Company may be conveniently or advantageously carried on by the Company or a business having rights in assets the acquisition of which is in the opinion of the Company likely to be in its interest, and to conduct, carry on and expand or liquidate and wind up any such business. 32. To enter into any carry into effect any arrangement or agreement for partnership or joint working in business or for the sharing of profits or for amalgamation with any other person or entity including, without limiting the generality of the foregoing, any arrangements for equity participation in the Company or any roaming agreements within or outside Pakistan and any interconnection agreement with all/or any telecom operators including Pakistan Telecommunication Company Limited. 33. To establish agencies and local boards in Pakistan and elsewhere in any part of the world and to regulate and discontinue the dame, to procure the registration of recognition of the Company in or under the laws of, any place outside Pakistan. 34. To establish, purchase, maintain and contribute to any pension, provident funds, trusts, schemes, entities, or policies for the benefit of, and to give of procure the giving of pensions, annuities, allowances, gratuities, donations, emoluments, benefits of any description (whether in kind or otherwise), incentives, bonuses, assistances (whether financialor otherwise) and accommodation in such manner and on such terms as it thinks fit to, and to make payments for or towards the insurance of, any individuals who are or were at any time in the employment of, or directors, or officers of (of held comparable or equivalent office in), of acted as consultants, or advisers to or agents for, the Company or any company which is its holding company or is a subsidiary of the Company or any such holding company, or any person to whose business the Company or any subsidiary of the Company is, in whole or in part, a successor directly or indirectly or any person which is otherwise allied to or associated with the Company and to other individuals whose service has been of benefit to the Company or who the Company considers have a moral claim on the Company, and the spouses, widows, widowers, families and defendants of any such individuals as aforesaid; and to establish provide, manage and maintain and provide financial assistance to welfare, sports and social faculties, associations, clubs, funds and institutions which the Company considers likely to benefit of further the interest of any of the aforesaid individuals and spouses, widows, widowers, families and defendants of any such aforementioned individuals, and to manage, maintain, support and provide financial assistance to any such facility, association, club, fund or institution which has been established, provided for managed, maintained, supported or subscribed to by any person to whose business the Company or any subsidiary of the Company is, in whole or in part, a successor. 35. From time to time to subscribe or contribute (in cash or in kind) to, or to promote, any charitable, benevolent or useful object of a public character or any object
which may in the opinion of the Company be likely to, directly or indirectly further the interests of the Company, its employees or its members. 36. To do all or any of the matters hereby authorized in any part of the world either alone or in conjunction with, or as factors, contractors, trustees, principals and to act as secretary, registrar or adviser or consultant to any person, and to act as trustees of any kind and to undertake and execute any trust. 37. To pay and discharge all or any expenses, costs and disbursements, to pay commissions and to remunerate any person for services rendered or to be rendered in connection with the formation, promotion and flotation of the Company and the underwriting or placing or issue at anytime of any securities of the. Company or of any other person 38. To issue, allot and grant options over securities of the Company for cash or otherwise or in payment or part payment for any real or personal property or rights therein purchased or
the Company or as security for or indemnity for or towards satisfaction of any liability or obligation undertaken and agreed to be undertaken by or for the benefit of the Company. dispose of.5 Million. turn to account. 40. leasing. 41. or of any Global Depository Receipts pertaining to the securities of the Company. for any obligation (even if less than the normal value of such securities) or for any other purpose. It is declared that no withstanding anything contained in the foregoing object clause of this Memorandum of Association nothing contained there shall be construed as empowering the Company to undertake or indulge in business of banking company. To sell of dispose of the undertaking of the Company or any part thereof in such a manner and for such considerations as the Company may think fit and in particular for shares. It is declared that the Company shall be registered with the Board of investment in due course. To apply for assist in. or otherwise deal with all or any part of the property and rights of the Company. 43. debenture stock and securities of any other company whether promoted by the Company or otherwise and to improve. or for the benefit of. banking. Generally to do all such other things as in the opinion of the Company are or may be incidental or conducive to the attainment of the above objects or any of them provided same are not contrary to law in force. iii) the Company shall not market real estate projects unless title of property is transferred to its name. iv) the Company shall not be allowed to transfer the land obtained by its on lease basis to any other foreign company unless specifically permitted be the Federal and the concerned Provincial Government. managing agency or insurance business directly or indirectly as restricted under the law or any unlawful operation.otherwise acquired by the Company or any services rendered to or at the request of. process. and to engage advisors. on any stock exchange in any part of the world. lease. The objects of the Company as specified in each of the foregoing paragraphs of this Clause except only if and so far as otherwise expressly provided in any paragraph) shall be separate and distinct objects of the Company and shall not be in any way limited by reference to any other . if i) the amount of foreign equity investment in the Company shall be at least USD 0. procure and obtain the listing of any of the securities of the Company or of any derivative securities of the Company. To invest the moneys and utilize the property and assets of the Company not immediately required in such a manner as the Company may from time to time determine. manage. 39. develop. consultants or agents. 44. 42. ii) a minimum 40% of the equity shall be held by a Pakistani Company or local individuals in the Company. investment. and to do all acts and things necessary or incidental for the same. exchange.
000/. V. IV. 1984 and to increase.(Rupees Ten Billion only) divided into 1.each. reduce and/or reorganize the capital and to divide shares in the capital into several kinds and classes and to consolidate or subdivide the shares and to issue shares for higher or lower denominations.000.000 (One Billion) ordinary shares of PKR 10/.paragraph or the order in which the same occur or the name of the Company. The Company shall have the power to vary. The liability of the members is limited.000. in such manner as may be permitted by the Company Ordinance.000.000. 120 . modify or abrogate any such rights. The Authorized Capital of the Company is PKR 10. privileges or conditions.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.