World Call Final Report Updated 6th May 2011 | Internet Access | Telecommunication

A Project on

WORLDCALL LIMITED
Submitted to: Mr. Salah Uddin
By: Group # 6 MUHAMMAD WASEEM AHMED ABID HUSSAIN MEMON FAISAL HAYAT ASIF ALI RAFIQUE-UR-REHMAN

TELECOM

8595 7629 12135 8508 8027 8042

In partial fulfillment of the requirement for the course STRATEGIC MANAGEMENT

WORLDCALL TELECOM LIMITED 5/14/11

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WORLDCALL TELECOM LIMITED

ACKNOWLEDGEMENT
We are very thankful to Allah Almighty who has given us the power and ability to think and judge the matters and then to make use of the blessed abilities. Our most respectable teacher Mr. Salah uddin is the source who directed us to apply our abilities in the required direction. Thanks to management of World Call for their support in completing this project.
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WORLDCALL TELECOM LIMITED 4 IQRA UNIVERSITY .

.................................................................................................17 VISION:-....................................................................................................................................................................................................................................24 Threat of New Entrants.7 Brief History.....................23 Porter’s five forces model.........................................................................................................11 WLL Helpline................................................10 Location of offices........20 Economical factors...............................................................................................................................................23 Legal factors..............................................Table of Contents Introduction................................................................................24 Bargaining Power of Consumer...........12 Legal Status and Nature of Business......................................................14 Key Players......................................17 MISSION:-..................19 OBJECTIVES:-...........................................................18 Suggested Correct Vision Statement:-.............................................................................................18 Goals & Objectives of WorldCall 2010:-................................11 Number of Total Employees:-.......................15 Vision and Mission Statements..............................20 Political factors..........11 Wireless Local Loop Main Office...........................................................................................................11 Location of Head Office.............8 Structure of WorldCall.................................................................................................................................................................20 PESTE(L) ANALYSIS..............................................19 GOALS:-...................24 Bargaining Power of Suppliers...............................................................................................................19 External and Internal assessment.............................................................................................................................21 Social factors..............................................................................................................................................21 Environmental factors......25 ....................12 Type of Ownership.....................17 ANALYSIS of MISSION STATEMENT.......................................................................7 Situational Analysis........................................................................................................................................................

.................................................................................................26 Rivalry among Competitors..............................................................................................................................................................................34 WorldCall Entertainment (Video On Demand)...............28 SWOT Matrix................................................33 Forward Integration....................................................................................................................................................29 BCG Matrix......34 WorldCall Voice (LDI Services)............................................................................................28 Threats................................................................33 Market Development Strategy..................................37 PRODUCTS/SERVICES......................32 Types of diversifications they are following.........................................................................................................................................31 Specific Specialties.........................................................31 Strategies Undertaken at:..............33 Business level strategies......................................................28 Opportunities.............................28 Strengths................................................................................................33 Product / Service Portfolio Management......................35 Segments And Target Market..........................................................32 Defensive Strategy................................................................34 WorldCall Data (EVDO Wireless Broadband).................................................................................................................33 Product Development Strategy.........................37 WORLDCALL’s TARGET Market...........................................................................................32 Corporate level:-..............................................................................................................38 PRICING..................32 Related Business Diversification (only)..................................................34 MARKET ANALYSIS....28 Weaknesses.....42 6 IQRA UNIVERSITY .......................................................................................26 SWOT ANALYSIS..............................................................................................................................................42 DETAILS OF PACKAGE PRICING.30 Core Competencies Analysis...................Threat of Substitute Products...................

.....55 PROFITABILITY RATIOS:-.54 Leverage Ratios:-............................................................................................................64 Conclusion...................44 PROMOTION.....................................................................................................................................................................................................................................................................................46 Market Share in LDI...........66 References:- INTRODUCTION 7 IQRA UNIVERSITY ..............................................54 TURNOVER RATIOS....PLACE / DISTRIBUTION........................................................56 Performance Overview:-................................55 Financial Overview:-......62 FUTURE PROJECTIONS..............................58 Main Problems according to our Analysis:-...............49 Financial Analysis.................................................................................57 Problem Section..................................................53 Key performance indicators.....................................................................................................................53 LIQUIDITY RATIOS..........................................................................60 Solutions to solve the problems:-.........................................................................................................................................................................60 Financial Measures.............................................................45 MARKET SHARE.............................................58 Main Problems according to Management:-....................................................................................................47 WLL Market Share in Subscription.............................................................45 PEOPLE..........................46 Broadband Share...........................................................................................................................61 Implementation plan................................................................................................................65 References:-..................48 COMPETITORS DETAIL...............................................................................................59 Strategic Alternatives:-........................................................

Any telephone call you make. Entertainment and Voice. The company’s word:“WorldCall launched its business in June 1996 with payphone operations. local or international. innovation and dedication led us to growth in diversified businesses with a range of services designed to serve the needs of the local market. and reliable company in Pakistan. Status of Omantel:Oman Telecommunications Company (Omantel) is the largest communication service provider in Oman. WC has crossed a number of milestones.BRIEF HISTORY The Oman telecommunication company is the most reliable and unique telecom and multimedia service provider in Pakistan which is also known as Omantel. 8 IQRA UNIVERSITY . from Cable TV to Video on Demand. from LDI services and fiber optic network to wireless local loop telephony. WC offers an array of services under three major service categories i. WorldCall Telecom has become more innovative.” WorldCall Telecom Ltd. Omantel is the major and larger provider. dedicated. Data. A fundamental shift in technology and industry. From Cable Broadband to Wireless Broadband. The world call telecommunication limited is also the Omantel’s company. the SMS Messages. became an associate company of Omantel after acquisition of major share holding by Omantel in 2008. Today.e. or internet services.

is the last but largest entrant till now. 9 IQRA UNIVERSITY .SITUATIONAL ANALYSIS In 1996 First Capital Securities Corporation commenced to incubate payphone operation named WorldCall Payphones Limited. In the following years WC provided its dial-up internet services through WorldCall. WorldCall Telecom Limited got Wireless Local Loop (WLL) license in the post deregulation auction to provide WLL telephony in all 14 telecom regions of Pakistan primarily in the 1900 MHz band. In 2003 WC launched a state of the art HFC network operation in Karachi under WorldCall Broadband Limited. These are the largest and only national networks capable of three features at the same time (cable TV. In 1998 prepaid calling cards were launched by WorldCall Phonecards under the brand name "Hello". providing cable television and Internet-over-cable.com. WC also acquired an LDI license and service commenced at the end of 2004. It has partnered with Samsung for a CDMA 2000. Over the years they have invested heavily in new technologies and businesses. In 2000 WorldCall in Multimedia segment established a Hybrid Fiber Coaxial (HFC) network in Lahore thus becoming the first Multi-service operator in the country. WC started service from Lahore in June 2005 which is now available in over 40 cities. They were one of the largest fixed line payphone operators. WC cable TV in Lahore. WorldCall perception of a changing business environment placed them at the lead of a demand-led explosion of payphones all over the country. WorldCall introduced their first payphone in June 1996. WTL enjoys significant edge over competition due to unused fiber optic capabilities available in the telecommunication sector. With the expansion in telecom they have continued to innovate. high speed internet/data and telephony). The new venture stood first in a communication revolution that was yet to hang on the country.

Omantel is a publicly traded telecom company based in Oman with diversified operations. Omantel had acquired 65 percent shares of WorldCall Telecom Limited for $200 million. acquisition of majority stake in WorldCall is its first overseas venture. 10 IQRA UNIVERSITY . However.In April 2008. This planned expansion coupled with initial investment would see a decent inflow of capital into Pakistan. High HFC System and local loop in the country. WorldCall also enjoys leadership position with consistent growth in its market share for broadband connectivity and cable television. The CEO WorldCall Mr Salmaan Taseer led the WorldCall delegation Salman Taseer said that WorldCall is the first company to launch payphone cards. Focus of rollout will principally target broadband segment with sustained growth of voice services. WorldCall is positioned in a unique way being the only real Multi Service Operator (MSO) in Pakistan telecom landscape with proven track record and established market position in various segments of its operations.

STRUCTURE OF WORLDCALL 11 IQRA UNIVERSITY .

Gulberg III.LOCATION OF OFFICES LOCATION OF HEAD OFFICE WorldCall Telecom Limited 67-C III.com. New Garden Town. Pakistan Tel: (92 42) 5872633-38 Fax: (92 42) 5755231 WIRELESS LOCAL LOOP MAIN OFFICE Ibrahim Trade Center (Near Barkat Market) 1. Lahore. Lahore (92 42) 8464646 www.pk WLL HELPLINE (92) 0800-19111 WC Net Helpline 109. UAN (111-111-965) 12 IQRA UNIVERSITY .Aibak Block.callwireless.

Broadband segment provides internet over cable and cable TV services. 13 IQRA UNIVERSITY . 1984 and its shares are quoted on the Karachi and Lahore Stock Exchanges. The Company has been licensed by Pakistan Telecommunication Authority ("PTA") and Pakistan Electronic Media Regulatory Authority ("PEMRA") for these purposes.NUMBER OF TOTAL EMPLOYEES:As of December 2010. (More than 3000 before downsizing after acquisition of WorldCall by Omantel. The Group operates mainly in its domestic market. WorldCall Telecom Ltd. It operates through two business segments: Telecom segment provides operation and maintenance services for payphone network. group's principal activity is to provide telecommunication services. maintain and operate the licensed telephony services. The Company commenced its operations on 01 December 2004 and is engaged in providing Wireless Local Loop ("WLL") and Long Distance & International ("LDI") services in Pakistan. operation and maintenance of public payphones network and re-broadcasting international/national satellite/terrestrial wireless and cable television and radio signals as well as interactive communication and to establish. around 1800 total employees work for WorldCall. however these decisions were taken by the Omani top management)   LEGAL STATUS AND NATURE OF BUSINESS The Group consists of: WorldCall Telecom Limited WorldCall Telecom Limited ("the Company") is a public limited company incorporated in Pakistan on 15 March 2001 under the Companies Ordinance.

The principal activity of the Subsidiary is the operation and maintenance of public payphones networks. 14 IQRA UNIVERSITY . Payphones are installed at various shops/commercial outlets. The Company holds 70.Worldcall Telecommunications Lanka (Private) Limited ("the Subsidiary") was incorporated in Sri Lanka and is a joint venture with Hayleys Group to operate payphones.65% of voting securities in the Subsidiary.

Foreign Subsidiary Worldcall Telecommunications Lanka (Pvt.) Limited is a foreign subsidiary of Worldcall Telecom Ltd. the WorldCall group was consisted of following companies: • • • • Worldcall Communications Limited Worldcall Phone cards Limited Worldcall Multimedia Limited Worldcall Broadband Limited Omantel decided to consolidate WorldCall into a single company and as a subsidiary of Omantel.TYPE OF OWNERSHIP A Subsidiary of Omantel Before the acquisition and restructuring of WorldCall. 15 IQRA UNIVERSITY .

CEO and Chairman. CEO of the Company The current players are Babar Ali Sayed (CEO) former LDI Director Operations. Babar Ali Syed is below: 16 IQRA UNIVERSITY .After the completion of acquisitions Omantel plays important role at corporate level but WorldCall lacks any leadership personality like Salman Taseer. First time in the history of WorldCall the CEO is from Technical Department. A current picture of MR. unlike previous CEOs with background in Finance and Chartered Accountants.KEY PLAYERS Historically Salman Taseer remained the key player in WorldCall as a Leader.

Mr. Shehryar Ali Taseer 9. Mr. Mr. Samy Ahmed Abdulqadir Al Ghassany 5.Board of Directors 1. Talal Said Marhoon Al-Mamari 3. Saud bin Ahmed Al-Nahari 8. Mr. Asadullah Khawaja (nominee Arif Habib Securities Limited) 17 IQRA UNIVERSITY . Mr. Mr. Aimen bin Ahmed Al Hosni 7. Zafar Iqbal 6. Bernhard Heinichen 4. Mr. Mr. Mr. Mehdi Mohammed Al Abduwani 2.

VISION AND MISSION STATEMENTS
VISION:We at WorldCall are committed to achieving dynamic growth and service excellence by being at the cutting edge of technological innovation. We strive to consistently meet and surpass customers', employees' and stake-holders' expectations by offering state-of-theart telecom solutions with national & international footprints. We feel pride in making efforts to position WorldCall and Pakistan in the forefront of international arena.

MISSION:In the telecom market of Pakistan, WorldCall to have an overwhelming impact on the basis of following benchmarks: • Create new standards of product offering in basic and value added telephony by being more cost effective, easily accessible and dependable. Thus ensuring real value for money to all segments of market. • Be a leader within indigenous operators in terms of market share, gross revenues and ARPU within five years and maintain the same positioning thereafter. • Achieve utmost customer satisfaction by setting up high standards of technical quality and service delivery. Ensuring the patterns of ROI holders. most profitable and sustainable (Return on Investment) for the stake-

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ANALYSIS OF MISSION STATEMENT
WHO ARE WE?  Be a leader within indigenous operators in terms of market share, gross revenues and ARPU within five years and maintain the same positioning thereafter. WHAT WE DO?  Create new standards of product offering in basic and value added telephony by being more cost effective, easily accessible and dependable. Thus ensuring real value for money to all segments of market. WHERE ARE WE NOW?  Achieve utmost customer satisfaction by setting up high standards of technical quality and service delivery. Now in term Components: Customers  Product services  Markets  Technology  Concern for survival growth and profitability  Philosophy  Self concept  Concern for public image  Concern for employees

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SUGGESTED CORRECT VISION STATEMENT:• To be a leader in a telecom industry by being at cutting edge of technological innovation.

GOALS & OBJECTIVES WORLDCALL 2010:GOALS:-

OF

• To redevelop an infrastructure which help company to implement multi destination LDI operations • To expand the wireless broadband network • To secure advertisement revenue share through cable TV network

OBJECTIVES:• To secure international terminations from the major countries of Europe and USA; and establishments POPs (Point-OfPresence, Switch, Router, Billing system) using co-location. • To establish head-ends (main transmission source) in 14 major cities of Pakistan. • WorldCall plans to expand its EVDO service in all the 50 major cities of Pakistan.

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(Source: Pakistan Telecommunication Authority.7% in December 2010 and the number of mobile subscribers reaching 102 million. organization and has shown the moderate continuity in the policies regardless of changes in the political environment. ✔ PTA is highly autonomous govt. POLITICAL FACTORS ✔ The political environment of Pakistan is getting unstable & uncertain day by day so only the government decision and initiative measures are very important. Annual report 2010). ✔ PTA is striving hard and trying its best to provide equal competition opportunities in Telecom industry. 21 IQRA UNIVERSITY . can announce unexpected tax changes in Telecom industry. ✔ Decline in foreign investment is also the reason of political instability.EXTERNAL AND INTERNAL ASSESSMENT PESTE(L) ANALYSIS The Telecom sector all around the world and especially in Pakistan has experienced a tremendous growth in the last few years. The telecommunication sector of Pakistan was awarded the status of industry in 2005 and since then it has been one of the fastest growing sectors of Pakistan quite eminent from various factors such as the mobile density reaching 61. ✔ PTA convinced the government that raising taxes will not result in more money coming in – the reverse is actually true as the Pakistan government got less revenue. ✔ Govt.

✔ The disposable income of people getting low due to the price inflation of consumer goods & services. ✔ Internet becomes an integral part of people social-lives. Internet has become a real working tool. ✔ People are interested in more than just “Plain Old Cable/TV” technologies… like Digital Cable TV. allowing them to connect with their family and friends anytime anywhere. people use Internet at home. ✔ Now people have become habitual of consuming new technology products. ✔ Inflation is controlling by state bank and under strict eyes but unemployment rate is going up and up with the increase of level of poverty. People now like to use Facebook on their pc and on mobile. ✔ Better telecommunication services and telecommunication is now becoming essential part of people lifestyle. ✔ Online gaming is growing rapidly and the ever increasing gaming competition all over the world and in pakistan as well. social networking.ECONOMICAL FACTORS ✔ The ever increasing economical issues like inflation and the growing debt of Pakistan. ✔ Young generation is getting more interest in wireless telecommunication and spends more time in online social activities like chatting. ✔ Telecommunication becoming an integrated part of our social life style. at work. and Personal Video Recorders not just plain old TV due to frequent use of internet. TECHNOLOGICAL FACTORS 22 IQRA UNIVERSITY . ✔ High interest rate ~13% ✔ Decline in Telecom share in total GST due to low tariffs. Video-On-Demand. ✔ PTA report 2010 tells that telecom sector of economy is in a good shape and growing. SOCIAL FACTORS Telecommunication is used in the professional and private sphere now days.

Conference Calling. new VoIP technologies are changing the cost structure of the LDI business.✔ Telecom sector have technology with which they can compete in Pakistan and now companies are investing in their infrastructure to not only expand but also to upgrade their existing structure. ✔ Individuals and companies are recognizing the benefits of mobility of wireless broadband. ✔ The expertise of IT and Telecom industry has greatly reduce cost and time on the usage of products and services. ✔ Upcoming future wireless broadband technologies are changing the trends of internet usage. ✔ Innovations and development in telecom technologies has played a major role in the overall growth. firms are in search of reliable information systems. Wallpapers Animated pictures Polyphonic ring tones (WAP). ✔ Now a day. For example. Virtual Private Network (VPN). ✔ Pakistan’s telecom industry is one the fastest growing industries even compared to other countries. 23 IQRA UNIVERSITY . ✔ Currently mostly companies are providing Multi-media Messaging Services (MMS). Like Video Conferencing induced more demand for companies interested in online business meetings. General Packet Radio Service (GPRS). and Voice Mail at low price and some are also providing feature that one can see TV channels on their cell. Pocket Stocks. And for this telecom technologies playing vital role. Innovations and Developments in IT and Telecom can create and motivate new demands.

24 IQRA UNIVERSITY . ✔ Ecological Factors ✔ Natural Obstructions in Wireless Transmission ✔ Infrastructure usage facing difficulty due to the conditions of land.ENVIRONMENTAL FACTORS ✔ The telecommunication towers spoil the view especially of tourism places but no attention is paid towards this. LEGAL FACTORS ✔ Corruption and bribery in legal authorities suffers a telecom companies a lot to face difficulties ✔ PTA is the telecom industry regulator and their some objectives are: ✔ Telecom sector changed from monopoly to competition ✔ Protection of the rights of the companies competing with incumbents and to provide safeguards the interest of the users of the telecommunication services. ✔ The unbiased laws of telecom sector to establish healthy competition in market.

List of suppliers who intensely compete with each other to reach contracts with their business customers.PORTER’S FIVE FORCES MODEL THREAT OF NEW ENTRANTS Telecom is a very capital concentrated industry. entry into this industry means that the firms need access to huge amount of capital mainly to cover the fixed costs to lay and maintain a physical network (infrastructure. 25 IQRA UNIVERSITY . Although companies in this industry mostly tended to monopolies regulated by the government up to price controls and moderate to heavy taxation. Sometimes suppliers show flexible behavior to maintain the long term relationship with their profit oriented customers. which is both costly. and a tiresome job. As it is mandatory for the firms to get approval/licenses from PTA. regional licenses Expected Mergers and Acquisitions High fixed costs High Capital requirements Aggressive competition BARGAINING POWER OF SUPPLIERS There is intense competition between suppliers because of multimillion dollar contracts between Pakistani firms and mostly foreign suppliers. fiber optic cables etc) to the premises of customers. due to high setup costs and market dominations threat of new entrants is low because of: ➢ ➢ ➢ ➢ ➢ ➢ High Government restrictions or legislation Telecom licenses. The telecom industry is already dominated by major players and smaller manufacturers have to struggle. rights.

The increasing trend of communication like email. The prominent names in this industry include Cisco. Alcatel-lucent. ZTE. 26 IQRA UNIVERSITY . Nortel and Motorola. the suppliers do not have much power and have to negotiate gently with the telecom companies because of: ➢ High availability of substitute inputs ➢ Competitive suppliers of telecom equipment ➢ Low degree of differentiation of inputs. Firms are now more concentrating on providing after sales services. Consumers have very high buying power in telecom sector because though they have many options to choose from especially in Voice segment. enhanced the buyer’s power. With the outcome of economic crises and excess capacity and falling demand. Most of the products in the telecom sector industry have not much difference while some may have considerable differences. is declining the importance of voice services. messaging. Ericsson. and billing software makers are low. ➢ ➢ ➢ ➢ ➢ Switching to another product is simple Customers are price sensitive Consumers have high product knowledge Switching costs are low Availability of existing substitute products instant Plenty of choice of several technologies and other communication means available. Samsung.In an telecom industry the manufacturers of telephone switching /switch board equipment. Hawawie. network equipment. BARGAINING POWER OF CONSUMER Consumer have high power because customer influence in pricing and shifts towards other sellers if he/she is not satisfied with the quality or price of the product or services. fiber optic cables. due to high component standardization.

Many of the substitute products and services have emerged in voice. DigitalTv. Satellite. The intensity among current rivals is intense and they are mostly competing on technological bases to create competitive advantages. there is a strong likelihood that competition will gradually increase as new firms enter the industry. ➢ Companies can only grow by stealing market share away from competitors.THREAT OF SUBSTITUTE PRODUCTS There are many substitutes available in market. Mobile phones. In case of unsatisfactionwith any of the feature customers can easily switch to the other because he/she has the almost exact or the same kind of substitutes. and Instant Messaging etc. data and entertainment in telecom due to the technological breakthroughs. IP Telephony. ➢ Advertising intensity and spending are very high. ➢ Telecom industry with a very high growth. Email. Industry rivalry has become extremely intense with the emergence of new competing firms leading to price cuts across the industry. 27 IQRA UNIVERSITY . there are many existing competitors of world call. Wireless broadband. Some of these are more convenient and offer far greater value to the consumer and have diminished the importance of traditional fixed line phones. RIVALRY AMONG COMPETITORS Due to growth opportunities and government focus on the telecom sector. Switching power is high in telecom sector characterize by high technological developments and fast availability of alternative substitutes. Substitutes include Broadband.

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SWOT ANALYSIS STRENGTHS ✔ ✔ ✔ ✔ ✔ ✔ ✔ Technical infrastructure HFC-cable Product range Working in major cities Reputation Balanced sales Reliable wireless broadband WEAKNESSES ✔ ✔ ✔ ✔ ✔ ✔ ✔ High dependence on Voice segment Weak marketing Lacking a proper long-term strategy Weak brand positioning Less focus on short-term profitability Infrastructure varies from location to locations ERP implementation taking too long OPPORTUNITIES ✔ ✔ ✔ ✔ ✔ Demand increased for backhaul network Cross-sell in major cities Increased demand for LDI and Broadband Privatization of government telecom projects PTA delayed 3G licenses THREATS ✔ ✔ ✔ ✔ Economy instability CaTV operators alliance Threat by WiMax or other 4G technologies Government policies 29 IQRA UNIVERSITY .

PTA delayed 3G licenses SO Strategies • • Market development of HFC-Cable (S3. Reputation 6. Less focus on shortterm profitability 6. Weak brand positioning 5. CaTV operators alliance 3. Reliable wireless broadband Weaknesses – W 1. Increased demand for LDI and Broadband 4. Threat by WiMax or other 4G technologies 4. Lacking a proper long-term strategy 4. O1) WO Strategies • Market Penetration and Product Development of Data services (O5. O3) Offer more B2B Data services (S1. HFC-cable 3. O2) Market development of Wireless Broadband (S7. Privatization of government telecom projects 5. High dependence on Voice segment 2. T1) Differentiation strategy for wireless broadband (S7. Demand increased for backhaul network 2. W4) Develop uniformity across infrastructure (O1. W2) Quickly integrate ERP to analyze churn-rate (T6. Infrastructure varies from location to locations 7. W5) 30 IQRA UNIVERSITY . ERP implementation taking too long “SWOT MATRIX” Opportunities – O 1. Government policies 5. Working in major cities 5. W6) • • • Threats – T 1. T2) Diversification of Products (S3. Balanced sales 7.✔ Increased consumer churn rate ✔ Heavy Price competition SWOT MATRIX Strengths – S 1. W7) Hold & Maintain (T1. W1) Brand development for broadband segment (O3. Increased consumer churn rate 6. Heavy Price competition ST Strategies • • • Market development of HFC-Cable (S3. Product range 4. Technical infrastructure 2. T6) WT Strategies • • • Highly Differentiated Products (T6. Weak marketing 3. Cross-sell in major cities 3. Economy instability 2.

BCG MATRIX STA h t o w r G h ig H 31 IQRA UNIVERSITY .

• The first company to introduce prepaid calling card services in the country. • Worldcall developed the first ever broadband HFC convergence Infrastructures in Pakistan – the only operator in Pakistan and one of the few in the region to provide a triple play (CATV. broadband internet. telephony) • Worldcall was the first operator in Pakistan to commission a state of the art next generation network (“NGN”) – covering long distance & international (“LDI”) inbound and outbound. This is a fully converged architecture enabling wireless solutions and hybrid fiber coaxial (HFC) telephony. IOC. • Premium WLL and LDI operator in Pakistan. 32 IQRA UNIVERSITY .CORE COMPETENCIES ANALYSIS The core competences that we have analyzed are • Strong Dark Fiber • Largest (hybrid fiber coaxial) HFC/Cable Operator (CATV. local loop (“LL”) / wireless local loop (“WLL”) telephony services. VoIP/MSAN Telephony) in Pakistan. SPECIFIC SPECIALTIES Worldcall has taken the lead in introducing innovative telecommunication services in Pakistan: • "Supervised Payphones" business model in Pakistan which is now being followed by many other operators – largest fixed line payphone infrastructure.

cable TV. Point-ToPoint corporate broadband services. WorldCall also has strategies at different levels.STRATEGIES UNDERTAKEN AT: CORPORATE LEVEL:As the other firms have strategies. Some of the services are as follows (Video on Demand. Currently the Company has several ongoing projects like HFC cable. People want now a day’s some modernized services and WorldCall is properly working to promote these kinds of services. They are introducing new and new things in this same line of business that have so many opportunities now a day in Pakistan. all aimed at provisioning of sophisticated data and video services. In corporate level strategies they basically discuss the current business status as well as the future of the current business. They are mainly concerned with: • What kind of businesses they want themselves in? • How they should manage all sectors or businesses? TYPES OF DIVERSIFICATIONS FOLLOWING RELATED (ONLY) BUSINESS THEY ARE DIVERSIFICATION WorldCall mainly focus in Related Business Diversification. Reasons for related diversification:33 IQRA UNIVERSITY . WorldCall has made its place in the current market by offering several and unique services. VSAT (satellite broadband) and DigitalTV which are in the different phases of roll out. In this same line of business they diversify their business and there diversification is very much effective for them. internet over cable). Then they decided in meetings. that in which sector they have to add something and in which sector they want to remove something. As many good and effective service of WorldCall the broadband service of WorldCall has good growth and opportunity.

They deliver increased network capacity to meet growing demand for wireless services and high-speed data services. CDMA2000 represents a family of ITU-approved. worldcall has developed its market after making analysis. Product Development Strategy The product development strategies are one of the most important strategies that should be in business if you want to survive in the market or in the business world. IMT-2000 (3G) standards and includes CDMA2000 1X and CDMA2000 1xEV technologies. Product / Service Portfolio Management WorldCall has successfully introduced True Video-On-Demand technology. They thought that this should be no more in their business.• To reduce the risk!!! • High Compatibility with technical infrastructure!!!!! • Support some losses in other segments!! Defensive Strategy WorldCall in September 2009 completed the divesture of its foreign subsidiary WorldCall Lanka. Forward Integration Although in a very poor state WorldCall is using Franchising as their forward integration strategy. Market Development Strategy In market development strategy you have to develop your market. CDMA(code division multiple access) is the fastest growing wireless technology and it will continue to grow at a faster pace than any other technology. They have also started WorldCall Wireless Broadband with EVDO technology in the product portfolio. Worldcall is also using product development strategies as it involves development of telecom services and products. They have first mover advantage in CDMA2000 based EVDO wireless broadband. however they do not have much control on their franchises. Another very effective service was pay phones and in 2009 officially phased out. It is the platform on which 2G and 3G advanced services are built. For example WorldCall EVDO Wireless Broadband was initially launched in Karachi followed by Lahore to other major cities including 34 IQRA UNIVERSITY .

BUSINESS LEVEL STRATEGIES WorldCall offers many services under than head of 3 Major Business Segments ✔ WorldCall Data ✔ WorldCall Voice ✔ WorldCall Entertainment WorldCall Data (EVDO Wireless Broadband) WorldCall is following differentiation strategy for WorldCall EVDO wireless because the size of market is large and the product is differentiated for its performance and mobility. Faisalabad. Multan and to inclusively to 50 major cities of Pakistan. Same is the expansion of Cable TV service to major cities of Pakistan.Gujranwala. WorldCall Voice (LDI Services) WorldCall is following cost-leadership strategy in LDI because of intense and dynamic price competition in LDI market WorldCall Entertainment (Video On Demand) WorldCall’s relatively new service is using “Focus-Value Strategy” because the target market is very small and product offers high degree of control with respect to traditional cable TV. 35 IQRA UNIVERSITY .

MARKET ANALYSIS Telecom Sectors according to PTA : 36 IQRA UNIVERSITY .

affected by service providers' inability to quickly source and deploy infrastructure. but rollout has been slow. The Pakistani government has tried to encourage service providers to take advantage of rural service provision subsidies via the Universal Services Fund (USF). 37 IQRA UNIVERSITY .The Pakistan Telecommunications Authority (PTA) has forced the incumbent fixed-line and broadband operator Pakistan Telecommunication Company Ltd (PTCL) to enter a formal interconnection agreement with rival operators in the xDSL broadband market. BMI (Business Monitor Broadband Growth Now Possible For International) has Pakistan consistently identified cost Forecast Broadband Subscriber Growth. In India. 2007as being the single largest 2014 barrier to growth in the Pakistani broadband market. such services average US$16 per month. broadband services are available for US$8 per month. Further problems include the relatively high cost of PCs and laptops and a widespread lack of IT literacy. In Pakistan however. With the country's mobile operators electing to deploy wireless broadband mainly in urban areas. The broadband operators. have petitioned for reasonable access to PTCL's fixed-line network to help them reduce costs and offer more competitive tariffs. customers Source: BMI in many smaller population centres have little or no high-speed access to the internet. many of which are small and privately owned. where the government is actively pushing for growth.

SEGMENTS AND TARGET MARKET WORLDCALL’S TARGET MARKET 38 IQRA UNIVERSITY .

which includes Karachi (the largest metropolitan) & Hyderabad Current operations in over 40 cities of Pakistan: Lahore. Narowal. Burewala. Joharabad. Mardan. Sialkot. High speed data service EV-DO . Rahim Yar Khan. Hyderabad. Faisalabad. Jhelum.4 Mbps. Leiah.The largest fixed line payphone operator in Pakistan Introduced the highly successful ‘Supervised Payphone’ concept in Pakistan Technology: • Smart card based wireless payphones 39 IQRA UNIVERSITY . Kamoke. Khushab. Bahawalnagar. Sahiwal. Kharian. Gujranwala. Bahawalpur. Raiwind. Mandi Bahauddin. Hafizabad. Okara.WorldCall owns premium spectrum for Wireless Local Loop (WLL) in all 14 telecom regions in the country Telephony and Data services are being offered using wireless CDMA technology • Samsung is technology partner / vendor for latest CDMA 2000 1x solution for Phases I & II • Key technology partner for terminal equipment is LG Service launched from Lahore – June 2005 • EV-DO (Evolution Data Optimized – data rate upto 2.Wireless Local Loop:. 1x Evolution-Data Optimized (EV-DO or EVDO).PRODUCTS/SERVICES WLL . WorldCall’s service provides data rates upto 2. Sheikhupura. Dinga. Daska. is the wireless radio broadband data standard taken up by various CDMA service providers internationally. Gujrat. Sargodha. Muridke. Peshawar. Lalamusa. Pakpattan. Multan. Jalalpur. Sukkur. Jhang. Kasur.Wireless Broadband:Launched in June 2006. Pay Phone:. Khanewal.4 Mbps) launched in selected areas – July 2006 • HUAWEI Technologies is the vendor for Phase III rollout. Mianwali. Wazirabad. Vehari. Muzaffargarh.

WorldCall provides customers with the ability to lease dark fiber for high-speed. Fiber optic networks are pathways installed in conduits underground or on utility poles. 40 IQRA UNIVERSITY . dedicated fiber optic networks or offers availability of cable ducts for businesses to have their own network.• CDMA 2000 1x based wireless payphones Operating in both ‘Supervised’ and ‘Standalone’ segments WLL payphones have only recently been introduced and are cheaper and faster to deploy Extensive distribution network Highly trained sales and maintenance teams Positioning to be market leader in the overall fixed and wireless payphones market HFC (Hybrid Fiber Coaxial) – Broadband:.WorldCall has deployed Hybrid Fiber Coaxial (HFC) network in Karachi and Lahore. This gives Dark Fiber several distinct advantages over traditional telecommunications. Users of Dark Fiber choose the electronic equipment they wish to use and control their own light signal.

1 & 1. action. thriller. news & documentaries • 80+ analogue channels • Satellite & in-house channels 41 IQRA UNIVERSITY . IEC 60793-2-50 (type B 1. romance.3) and TIA/EIA-492 CAAB fiber • Flexible networks operating throughout the Single Mode fiber operating window (1300 nm – 1650 nm) • 24x7 Vigilance and Emergency Response teams for all fiber routes • The only Triple Play network provider conforming to ISO Standards WorldCall Cable Broadband:• • • • • • • • Portability & Mobility Plug & Play No power required Unlimited downloads Unlimited express upload & download Always on Does not need telephone line Economical packages WorldCall Digital TV:• • • • Superior picture quality Crisp and clear stereo sound 60+ channels On-screen channel guide WorldCall Cable TV:• Drama. C & D). B.652 (Categories A.Key Features: • 100% buried fiber and exclusive owned Right of Ways for Fiber Ducts • The most advanced quality Poly / Ethylene pipes/duct • Corning SMF-28e (enhanced) version fiber conforming to industry standards including ITU-T G.

IP telephony. • Future proof investment: nationwide long haul infrastructure and access 42 IQRA UNIVERSITY . • WorldCall has deployed state-of-the-art network based on IP technology and NGN (Next Generation Network) architecture with equipment from reputed names like Cisco sytems. • A cinematic addition to your on-screen entertainment • Absolute control with play-back options • 600+ hours of uninterrupted fun and excitement LDI . quality voice and data solutions for nationwide & international markets catering for both the wholesale and retail segments. providing a collection of movies and music over the CATV network in digital quality to endusers to choose from their homes. the services that can be offered include: ○ International Calls Origination and Termination ○ Nationwide (NWD) Calls Origination and Termination ○ Data & Value-added services like Corporate Solutions.• Latest movies WorldCall Video on Demand:WorldCall is the first to launch True VOD. Siemens and Nuera. VPN’s etc. Long Distance & International (LDI) • WorldCall was the first company to start LDI services – November 2004 • WorldCall provides cost / price effective. VOD service is ahead of pay-perview service by giving rewind/fast-forward/pause capability to the viewer.Long Distance International:WorldCall has acquired licenses from Pakistan Telecommunication Authority (PTA) for Long Distance & International (LDI) and Wireless Local Loop services (WLL). tailored to their individual requirements • Under the LDI license.

They use this strategy mainly for new products/services on the basis of quality differentiation. DETAILS OF PACKAGE PRICING Wireless Broadband:Activation Charges: Rs 1.WORLDCALL VIDEO-ON-DEMAND Competitive pricings:In competitive telecom industry customer switching rates are high worldcall is using competitive pricing strategy in its new worldcall broadband wireless evdo and worldcall wireless to keep up with the competition. When a product is new in the market or competition is low.PRICING WorldCall is using Cost-Based approach for pricing in its all business units for all products and services.299 Package Price 256 kbps Rs 1200 512 kbps Rs 1800 1 Mbps Rs 2500 43 IQRA UNIVERSITY . Worldcall Pricing strategy depends upon these factors like: • Degree of differentiation in product/service offered • Intensity of the competition • At the stage in which a product is in Product Life Cycle Premium pricing:Worldcall charges premiere pricing because they are using differentiation strategy in all of its business units. This approach is most commonly used in a competitive telecom industry. EG:. but not very high prices.

100 Rs.500 Rs.the banglow which size is more than 250 square yards is called SFU. 6.400 Rs. 5.100 N/A N/A N/A N/A New price Rs.000 Rs. 3. 1.000 Rs.Cable Broadband:- Download speed 512Kbps 1Mbps 2Mbps 4Mbps 6Mbps 8Mbps 10Mbps Old Price Rs.000 Digital TV:Digital TV Packages Digital TV Packages (For Existing Cable TV Customer) One Time Connection Rs.500 (Non-refundable) Charges Monthly Charges (DTV) Free Digital TV Packages (For New Cable TV & DTV Customer) One Time Connection Rs.3. Cable TV:Permis es Type SFU SFA MDU Installatio n 500 Free Free Free Subscripti on 400 325 800 800 2nd CAT V 150 100 Free Free 3rd CAT V 80 100 Free Free 4th CAT V 80 100 800 800 SFU (single functional unit):. Customer Premises Equipment (Cable Modem/Set Top Box) shall remain company property. 1. 700 Rs. 44 IQRA UNIVERSITY . 1.000 Rs. 4.500 (Non-refundable) Charges Monthly Charges (DTV) Free Installation Charges Free (CATV) Monthly Charges (CATV) As per described package Set-up cost is non-refundable. 1. 2.000 Rs. 8.

• Franchises 45 IQRA UNIVERSITY . 800/=.350 8.500 1.275 5% Half Yearl y Rs. 1. MDU(multi development unit):.275 15. 1.SFA (single functional apartment):. 1. PLACE / DISTRIBUTION Extensive nationwide distribution network positioned to launch new products as well as service existing ones – 50 Offices – 220 Cities – 59.30 0 15% Rs. 500/= will be applicable on every 4th CATV connection in SFU Video On Demand:Video On Demand Packages Primary Connection VOD & Digital Cable TV Monthly Rate VOD & Digital Cable TV Subscription Package Discount % age in Monthly Subscription Connection Charges: Monthl y Rs. Note: Rs. 1.000 (Non-refundable) Set-up cost is non-refundable. 03 CATV connections are allowed. Customer Premises Equipment (Cable Modem/Set Top Box) shall remain company property.000 Points-of-sale • • • • • Existing relationships with third party distributors to enhance penetration Ability to carry third party products – immense future potential Customer Service Centers World Call has customer care centers in major cities.425 4.500 Quarterl y Rs. Note: In Rs. Note: Installation charges Rs.the apartment in more than three floor building is called MDU.100 10% Yearly Rs. 25/= will be charged every month as infrastructure charges for DHA customers with 1st CATV Connection. 6.the banglow which size is less than 250 square yards and a apartment in three floor building is called SFA. Some of These centers have the attractive exterior.

In fact these are the people who make the differences among organizations.• Franchises are in the Poor conditions and World Call have no control on franchises PROMOTION World call is not using intensive promotion strategy they are cutting cost through the low advertising these. aptititude. In case of World Call. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills. PEOPLE An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. People includes ✔ Sales Representatives ✔ Staff of Customer Care Center ✔ Recovery Team • For Cable TV and HFC Broadband 46 IQRA UNIVERSITY . and service knowledge to provide the service that consumers are paying for.

983 Million 47 IQRA UNIVERSITY .047 Million out 21.MARKET SHARE MARKET SHARE IN LDI WorldCall share is 2.

BROADBAND SHARE Market share of Broadband technologies. with strong share in EVDO segment. 48 IQRA UNIVERSITY . WorldCall added highest number of subscribers in May 2010 with a figure of 20. its market share increased from 7% to 9%.230 additions. WorldCall owns most of HFC share.

In this quarter.5% over the same period to reach 306.053mn in October 2010.947 respectively affordable pricing plans bundled with low-cost mobile devices. representing a penetration rate of 70.5% from the 643. The popularity of mobile broadband services is likely due to more subscriber figures of WiMAX and EV-DO increased by 246. The number of DSL users grew by 96.665 and 181.3%. By contrast. Moreover..5% from 262.078mn subscribers in Pakistan by end-2015. While DSL remained the main technology used to access broadband services in the country. (Source: BMI) WLL MARKET SHARE IN SUBSCRIPTION Subscriber Share (WorldCall has 2nd Largest Share in WLL Subscription):- 49 IQRA UNIVERSITY . an increase of 63.892 in December 2009.6% and 708.661 in June 2009.“The number of mobile subscribers in Pakistan reached the 100mn mark in September 2010 and is expected to continue its growth momentum due to the relatively low penetration rate. alternative wireless solutions WiMAX and EV-DO are catching up fast. BMI has adjusted our mobile forecasts and forecast 136. Pakistan’s broadband subscriber base reached 1. two-thirds of the population reside in rural areas where fixed-line infrastructure remains poor and wireless broadband service therefore becomes an attractive and relatively cheaper method to bring connectivity to the underserved regions.

The Jordan market has a high potential for the wireless broadband service and wi-tribe is well positioned to capture the growth in this market. floated their brand wi-tribe in the starting of 2008 which is form to create demand and establish WiMAX networks in the Middle East.COMPETITORS DETAIL Burraq & Wi-tribe Qtel entered into a regional broadband wireless joint venture with ATCO in march 2007. and develop a strong platform for distribution of broadband content. Qtel had 78% stake in this overall venture. which evolved as a leading Middle Eastern conglomerate and one of the world's best leading wireless broadband services providers. In Pakistan. roll out excellent quality networks and services in targeted areas. wi-tribe has acquired a license in an auction and is getting ready to launch in 2008. In Jordan. Asia and Africa. Pakistan is an exciting market for 50 IQRA UNIVERSITY . This joint venture. wi-tribe acquired a 75% stake in Burraq Telecom which has licenses for WiMAX as well as international long distance. Wi-tribe intends to leverage Qtel's regional operating experience and multinational footprint.

including long distance international and wireless local loop. 51 IQRA UNIVERSITY . The company also has associated spectrum at different frequencies. Burraq Telecom Limited.broadband with very low penetration rates and huge potential for growth. Burraq has recently completed a limited rollout of its Broadband Wireless Access (BWA) network in all of Pakistan’s 14 regions. founded in 2004 is an established operator licensed to offer a full range of telecommunications services across Pakistan.

Words from Moblink”And it gives us great joy to welcome you to experience Mobilink’s evolution into a total telecommunications solutions provider. the leading Internet Service and Solutions Provider. is a subsidiary of Orascom Telecom Holding Company. Newest to the rank of life-changing innovative technologies is Mobilink Infinity. Mobilink GSM. a subsidiary of Orascom Telecom. the revolutionary next generation wireless broadband network. Internet access.” 52 IQRA UNIVERSITY . the largest integrated telecommunications services provider in the region.Mobilink Infinity & LINKDotNET:- LINKdotNET. next generation of telephony through Voice over IP and exciting cutting-edge services. This holds great prospects for all our valued customers in terms of value-added services. started its operations in 1994.

PTCL & Ufone:Pakistan Telecommunication Corporation Limited (PTCL) which started to operate in January 2001 under the brand name ‘Ufone’ was wholly owned by Pakistan Telecom Mobile Limited (PTML). which has a subscriber base of over 10 million customers in 145 cities. they plan on deploying a WiMax country-wide network across Pakistan. Pakistan and is a sister concern of Warid Telecom. In fact the real cut to cut competition between Worldcall and PTCL is witnessed since many years. Wateen & Warid:Wateen Telecom is a Pakistani telecommunication company based in Lahore. With the collaboration of Motorola. After the successful launch of Warid Telecom in Pakistan. Ptcl vFone. reliability and affordability in the communication and media sector. PTCL is Direct Competitor with WorldCall in Ptcl EVO Wireless Broadband.. Ptcl Broadband and LDI. Ptcl SmartTV. today.. 53 IQRA UNIVERSITY . Wateen is committed to bring Next Generation services to your doorstep. After this privatization Ufone became a part of the Emirates Telecommunication Corporation Group (Etisalat) in 2006. Wateen Telecom is the Abu Dhabi Group's latest communication investment in Pakistan. Wateen Telecom has been set up to become the leading "Carrier's Carrier" providing services based on quality.

Video and Data) to the customer premises.net. modern telephony and digital video services to business and home users. Nayatel's network offers ultra broadband Internet. The idea was transformed into reality when NTL launched South Asia's first fiber to the home (FTTH) in Islamabad in September 2006. Fiber-to-the-User is 21st century architecture for delivering multiple services (Voice.pk the premier and leading DSL broadband service provider in Islamabad and Rawalpindi. 54 IQRA UNIVERSITY . Fiber Optic cables have near-unlimited capacity for carrying data at speeds not supported by Copper media. This real triple play project is unique in its nature as it serves complex networking needs of mission critical businesses yet so simple that it has become a symbol of prestige for quality conscious home users.NayaTel:. With the ever-decreasing price of Fiber Optic and the rising cost of copper. (NTL) is a sister concern of Micronet Broadband (Pvt) Ltd.dsl. This technology involves laying down fiber optic cable from the carrier's facilities to the customer premises. www. Covering over 90% areas of Islamabad and business areas of Rawalpindi Cantonment.(IN ISLAMABAD ONLY) NayaTel (Pvt) Ltd. use of copper cables worldwide is on the decrease. (MBL). Leveraging its rich expertise and experience of broadband. MBL team conceived the idea of a most modern telecom network which can take care of ever growing telecommunication needs of customers and have the capability to cater for telecommunication requirements of at least next three decades.

803 Million) 11 days 38.28 -0.167 Million) 8 days 46.02 16% -6% 0.74 : 1 0.06 : 1 (1.143 Million Depreciation and Amortization 2009 -491 Million 4.04% -0.32% 0.46 : 1 0.75 times 3.58% -15.70 times -6.17 times 3.04% -3.] [( LTD ÷ (LTD + Equity) ] * 100] [cash ÷ current liabilities ] [ Current Assets – Current Liabilities ] [(Inventory ÷ COGS) x 365] [(Sales ÷ Inventory)] [(Sales ÷ Trade Creditors)] [(Sales ÷ Trade Debtors)] [(NPAT ÷ Net Worth )] [(NPAT ÷ Total Assets)] [(Trade Debts ÷ Net Sales) x 365] [(Trade Creditors ÷ Net Sales) x [(NPAT) ÷ No.47 : 1 0.75 : 1 0.80 : 1 0.02 : 1 (4.584 Million RATIOS Gross Profit Margin % Net Profit Margin % Debt Coverage (Times) Interest Coverage (Times) Exp)] Current Ratio Liabilities)] Quick Ratio Debt To Equity Ratio Cash Ratio Working Capital Inventory Days Inventory Turnover Payable Turnover Receivable Turnover Return On Equity % Return On Assets % Receivable (Days) Payable (Days) 365] EPS Outstanding] [(Gross Profit ÷ Net Sales)] [(NPAT ÷ Net Sales)] [(NPAT + Depr.58 -1.02% 92 days 98 days [(Current Assets-Invt.40 : 1 0. Liab. Of Shares -1.33 -0.97 times -0.02% 99 days 226 days 0.57 Cash Flow Statement 55 IQRA UNIVERSITY .147 Million 6.FINANCIAL ANALYSIS KEY PERFORMANCE INDICATORS 2010 Net Profit After Tax (NPAT) -1.)÷Curr.) ÷ (LTD + Interest)] [(Net Operating Profit ÷ Interest 11.69 times 1.61 times 3.03 [(Current Assets ÷ Current 0.

Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities 1.535 Million -1.206 Million -434 Million 1.489 Million -1.889 Million 126 Million 56 IQRA UNIVERSITY .

02 : 1 0. Receivable (Days) [(Trade Debts ÷ Net Sales) x 365] 99 days 92 days • Average Collection Period is increased by 7 days. 57 IQRA UNIVERSITY . Cash Liquidity Ratio [ cash ÷ current liabilities ] 0.17 times • It tells us how World call manages its inventories.69 times 46. Receivable Turnover [(Sales ÷ Trade Debtors)] 3.74 : 1 • It tells us that current liabilities could be 40% paid off through Quick Liquidatable Assets. TURNOVER RATIOS Inventory Turnover [(Sales ÷ Inventory)] 38.97 times • It tells us the collection pattern of the World Call.40 : 1 0.70 times 3. Quick Ratio [(Current Assets .80 : 1 • It tells us that current liabilities could be 75% paid off through current assets.Inventory) ÷ Current Liabilities] 0.LIQUIDITY RATIOS Current Ratio [(Current Assets ÷ Current Liabilities)] 0.06 : 1 • It tells us that current liabilities could be 2% paid off through Cash Inventory Days [(Inventory ÷ COGS) x 365] 11 days 8 days • Inventory sold out period is increased to 11 days from 8 days last year. 226 days 98 days Payable (Days) [(Trade Creditors ÷ Net Sales) x 365] • Average payable period is increased by 128 days.75 : 1 0.

58 IQRA UNIVERSITY .75 times • It tells us the firm’s pattern of payment to suppliers.Payable Turnover [(Sales ÷ Trade Creditors)] 1.61 times 3.

04% -0.32% last year.28 • It tells us how many times Current Maturing Long-term Debt could be paid off through current earnings.42% last year. Interest Coverage (Times) [(Net Operating Profit ÷ Interest Exp)] -1. PROFITABILITY RATIOS:Gross Profit Margin % 11.32% -6% • Tells us profitability after consideration o all revenue and expense. (ROI) Return On Assets % -3.03 • It tells us how many times interest can be paid through Operating Profit. The GP Margin is decreased by 4.47 : 1 • World call maintain his debt to equity ratio almost constant as last year. Debt To Equity Ratio [( LTD ÷ (LTD + Equity) ] * 100] 0.LEVERAGE RATIOS:Debt Coverage (Times) [(NPAT + Depr. it decrease by 9.46 : 1 0.02 -0. taxes and non-operating items. Return On Equity % [(NPAT ÷ Net Worth )] -6. Net Profit Margin % [(NPAT ÷ Net Sales)] -15.04% • Tells us the rate of return on Stockholder’s Investment. including interest.58 0.58% [(Gross Profit ÷ Net Sales)] 16% • It tells us the ability of the World Call to control cost of goods sold which might be occur through increase in prices.) ÷ (CMLTD + Interest)] 0.02% 59 IQRA UNIVERSITY .02% [(NPAT ÷ Total Assets)] -0.

60 IQRA UNIVERSITY .57 • Tells the earning per common share.33 [(NPAT) ÷ No.• Tells us the efficiency in managing investment in assets in order to generating profits. EPS -1. Of Shares Outstanding] -0.

The Company was not able to sustain the revenue levels which it achieved last year. The depleting margins aggravated the position as the cost of operations continuously soared on account of macro-economic instability. delay in roll outs and tariff adjustments in response to price wars.147 million. redemption of Rs. Despite all endeavors of cost rationalization on the part of management. the direct and operating costs remained high on account of heavy depreciation charges. network maintenance expenses and rising cost of doing business. which leads a company to have loss for the period. 71 million against TFC-II was also accomplished. However the desired targets in these segments too could not be materialized due to delay in expansion and upgrade plans. and inflationary trends prevailing in the economy. The LDI segment of the Company remained under pressure due to lower APC (Access Promotion Contribution) charges and termination rate instability. The decline of international segment was partly compensated as the Company strengthened its position in the data and EVDO segment.464 million which was 11% lower than the last year total. but honoring of such heavy commitments to financial institutions in time can be seen as a good gesture. Another thing came as the Company closed TFC-III redemption worth Rs 817 million in Oct 2010. The price cuts forced due to the gravity of competition and lower traffic volumes adversely impacted the revenue lines. The Company posted revenue of Rs 7. Primarily the fall came due to decline in international termination. The finance cost also showed 42% increase due to exposure to high cost borrowings. These hefty payoffs nevertheless led to accumulation of some other liabilities on the balance sheet. Subsequent to that. Fall in the overall revenue together with high levels of costs led to closure of period with net loss of Rs 1. The decline in revenue together with higher cost levels translated to operating loss of Rs 762 million. 61 IQRA UNIVERSITY .Financial Overview:The year remained somewhat dismal on the front of financial performance. energy crises.

62 IQRA UNIVERSITY . Performance Overview:The EVDO expansion project was also successfully conducted during the year and the presence in seven major cities across the country was effectively accomplished. the Company increased number of sites and upgraded the existing sites as well. The first phase of funding comprising term facility of US $35 million against corporate guarantee of Omantel has been successfully accomplished subsequent to year end. All procedural requirements in this regard have been successfully complied with. To support the scale of operations and to meet the customer requirement for fast and reliable services.On the other hand. the mitigation of hefty liabilities will not only ease the finance cost burden but would also spare resources for productive usage in turn leading to further enhancement in the cash generating ability of the Company. The decline in debt servicing costs will also improve the profitability in the years ahead.

✔ Previously they were multiple companies now all of the accounts have been reorganized and similar accounts have to be merged. 63 IQRA UNIVERSITY .PROBLEM SECTION MAIN PROBLEMS ACCORDING TO MANAGEMENT:✔ Omantel has totally changed system of management for the company. ✔ ERP is time-consuming process. ✔ Reducing of advertisements expense due to pressure of cost cutting. ✔ Omantel emphasizing on ERP ✔ The delay in process of initiating an ERP. ✔ New Managers are involved into current issues of the company. ✔ Same reasons for not having large Marketing staff.

✔ Very weak franchising strategies. inappropriate CRM and Professional Accounting Software. ✔ No ERP. ✔ We observe lack of coordination between different Departments. ✔ Loosing potential buyers due to less Advertising. ✔ Omantel is not involving low level staff in business matters. ✔ Franchises strength missing. ✔ Heavily lacking Long term strategies. ✔ Market Penetration was earlier used in Voice segment but now being avoided. 64 IQRA UNIVERSITY . ✔ Branding and Positioning not done through proper process. ✔ Less Promotional strategies and sales staff. ✔ Lack of use of BCG MATRIX for their product portfolio.MAIN PROBLEMS ACCORDING TO OUR ANALYSIS:✔ Giving unusual importance to LDI from very beginning. ✔ Complains by customers due to conflict in network capacity and after sale services.

STRATEGIC ALTERNATIVES:SOLUTIONS TO SOLVE THE PROBLEMS:✔ The change process must be moved top to down gradually by Omantel. and then Franchises must be made more modern and must be made more productive in reference to services and sale. ✔ Co-ordination between many Departments must be improved as soon as possible. the only need is timely maintenance and proper resource utilization. ✔ WC having very strong physical network. ✔ Using of BCG MATRIX is very important for WC to understand their DOG and STAR products. ✔ Every level of Management must be involved in the change process. ✔ Business Process Reengineering is preferable solution to WC over all problems. ✔ Customer complaints and customer churn rate can be reduced by sensible installing of networks and sales. ✔ The whole experience of the customer from the first interaction at the touch point to the consistent usage of the service will be enriched. thus WC must behave more Competitive. by diverting their focus on ERP implementation on preference basis. ✔ Omantel is coming up with Fresh Long term plans which are a good sign. ✔ Branding and positioning must be revised for many segments. ✔ Delays in ERP (SAP) must be overcome by WC. franchising strength must be increased all over the country. ✔ The avoidance of market penetration will not benefit WC in long run. ✔ WC must buy professional software. ✔ First of all. well it is highly needed and must be implemented with unanimous agreement. ✔ Omantel must refrain from such act which creates a perception of job insecurity between the employees. 65 IQRA UNIVERSITY .

✔ The planned network upgrades and expansions will ensure delivery of seamless. ✔ Cut down Direct Costs as well as Operating Costs. ✔ Long-term Debt should be paid as soon as possible. which results in heavy financial cost. 66 IQRA UNIVERSITY . But we suggest some important measures that World Call should take in order to cope up with the current loss scenario. FINANCIAL MEASURES The whole Financial Projection for Worldcall is out of the scope of this report. ✔ Manage Cash in that manner so Working Capital should become positive. ✔ Sales should be increased with the rapidly increase in subscribers which results in increase in ARPU (Average Revenue per User). high quality and reliable services to end users ✔ The process of creating awareness about the Company's portfolio and building an image of reliability and quality will also be addressed with a keen vision.

IMPLEMENTATION PLAN The implementation plan is discussed and suggested according to different segments of the company:Overall Segment:- Voice Segment:Data Segment:- Entertainment Segment:- 67 IQRA UNIVERSITY .

5% for FY2010/11. Although the country scored relatively well on the Industry Rewards and Risks segment. While we upgraded the country’s headline growth forecast figure to 1. we note the country faces significant downside pressure on the macroeconomic front.” (Source: BMI) 68 IQRA UNIVERSITY .FUTURE PROJECTIONS Pakistan continued its decline on BMI’s Business Environment Ratings for the Asia-Pacific region.

We have gone through thorough analysis of WorldCall and studied almost every aspect of the company. It has strong potential to compete and grow as a leading diverse telecom company. we have recommended strategies. 69 IQRA UNIVERSITY .CONCLUSION WorldCall is a competent telecom company in Pakistan with huge infrastructure and backed by strong parent company Omantel. We also provided three year implementation plan that represent a clear growth strategy for WorldCall. solutions to major problems faced by WorldCall.

wordpress.REFERENCES:PTA Reports http://www.worldcall.net/2009/08/20/swot-analysis-pakistantelecom-industry/ ✔ http://goutham.worldcall.pk ✔ ✔ ✔ ✔ ✔ ✔ 70 IQRA UNIVERSITY .com/2008/02/07/us-telecomindustry-analysis/ ✔ http://propakistani.pk http://www.net/ http://telecompk.com/pakistan-telecom-laws/ http://telecompk.wordpress.pk http://pakng.net.com.

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