Nayatel Pvt Limited

Project Report

GROUP MEMBERS

 HAMZA TAHIR (2161006)

 FARAZ AHMED (9161072)
 GHULFAM ABBAS (2161055)
 NAVEED UR REHMAN (2171083)

SECTION

 GROUP-B (SUMMER 2020)

SUBJECT

● BUSINESS POLICY STRATEGY

SUBMITTED TO

▪ SIR ADNAN IFTIKHAR

SUBMISSION DATE

▪ 12-AUGUST-2020
Contents
ABSTRACT......................................................................................................................................3
INTRODUCTION............................................................................................................................4
VISION STATEMENT....................................................................................................................5
VALUES:..........................................................................................................................................5
PESTAL ANALYSIS.......................................................................................................................5
Political Factors:.........................................................................................................................7
Economic Factors:......................................................................................................................7
Social Factors:..............................................................................................................................8
Technological Factors:.................................................................................................................8
PORTER FIVE FORCE ANALYSIS:............................................................................................9
Intensity of Rivalry:...................................................................................................................9
Threat of Substitute Products:..................................................................................................10
Threats of new Entrants:.........................................................................................................10
Bargaining Power of Supplier:...............................................................................................11
Bargaining Power of Buyer:....................................................................................................12
VALUE CHAIN ANALYSIS:.......................................................................................................12
NAYATEL VALUE CHAIN:........................................................................................................13
SWOT Analysis:.............................................................................................................................14
Strengths:....................................................................................................................................15
Weaknesses:................................................................................................................................15
Opportunities:............................................................................................................................16
Threats:.......................................................................................................................................16
 ABSTRACT
The telecommunications revolution has arrived dating from the day broadband
services has been introduced in Pakistan, competition has accelerated and
sought out every nook and cranny of telecom products and services for both
consumers and businesses. From that day only 25 years ago, when consumers
were tied to a fixed phone with its fixed phone number, mobile and cellular
phones have proliferated to meet the demand for communication anytime,
anywhere in the world. Companies that have not foreseen change or kept up
are quickly consigned to the technological and financial graveyard. NayaTel
(Pvt) Ltd. has undertaken the project for laying optical fiber in Islamabad
which is the first of its kind and will be facilitating the entire Islamabad
specially the corporate sector and also the home users for enhancing their
abilities to compete with the world by enhanced telecommunication services.
This project basically is in depth analysis of the whole targets set by NayaTel
by providing a business plan including marketing, financial and human
resource planning and risk analysis for concluding the feasibility for the
project that NTL is involved in to complete for achievement of their targets of
advancing our telecommunication services specially internet, high definition
TV etc. It has been revealed from the whole business plan including current
market demands for high speed broadband services, and the sound key
professionals supported by sufficient investment with the projections of
elevated profits and thoroughly study of market competition and risk analysis
that this project is feasible to achieve high returns and will benefit our people
to enhance their capabilities to compete with the world out their.
 NAYATEL LIMITED
INTRODUCTION
NayaTel (Pvt) Ltd. (NTL) is a sister concern of Micro net Broadband (Pvt)
Ltd. (MBL), the company that launched first broadband service in Pakistan
in July 2002. Leveraging its rich expertise and experience of broadband,
MBL team conceived the idea of a most modern telecom network which
could take care of ever growing telecommunication needs of customers and
have the capability to cater for bandwidth requirements of next few decades.
The idea was transformed into reality when NTL launched South Asia's first
fiber to the home (FTTH)/fiber to the user (FTTU) network in Islamabad in
September 2006. 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. Covering over 90% areas of twin cities of Islamabad and Rawalpindi,
Nayatel's network offers ultra-broadband Internet, modern telephony and
digital video services to business and home users. Nayatel’s FTTH network
has transformed Islamabad into one of the most connected and optically
wired cities of the world. In line with traditions of MBL, NayaTel purely
focuses on quality and customer service. In fact, both MBL and NTL have
re-written the quality of service parameters in Pakistani context. As we've
been a trend setter in broadband, we've also set new quality standards totally
aligned with customers' expectations and requirements. Fair and ethical
business is hallmark of our corporate strategy. Customers' confidence earned
with hard efforts of last many years is our most prestigious asset and we
always go extra mile to protect this asset. This combination makes NTL as
most trusted and reliable telecom service provider of twin cities. NTL's team
has a passion to make Pakistan a prosperous nation using modern IT enabled
and cutting edge technology as tool for development. We strongly believe
 that our country and society can become a great contributor to the
knowledge based economy of 21st century by leveraging the talent and
intellect of young generation. NayaTel provides an information super
highway for this talent to access global knowledge repositories and business
opportunities, hence contributing towards national development.

VISION STATEMENT

To become a role model of trust, set highest standards of quality and add
value to the society.

VALUES:

• Honesty
• Mannerism
• Simplicity
• Sacrifice
• Discipline
• Knowledge

Organizational analysis can be divided into 4 main factors.

 PESTEL ANALYSIS
 Porter 5 FORCES ANALYSIS
 VALUE CHAIN ANALYSIS
 VALUE NETWORK
 SWOT ANALYSIS
 INNOVATION CAPABILITIES
PESTAL ANALYSIS

There are many areas in which the Environment may have an effect. For e.g.
ISPs are not responsible for content on their networks up to a certain point. If
a customer stores offensive material on their web site, the ISP has obligation
to know of its existence and to remove it. If another user complains about this
material, then the ISP can remove it without the compliance of the owner, or it
is seen as a publisher of the material, and then becomes responsible.
In Pakistan there is censorship of the Internet, and many users are concerned,
and ISPs are working in conjunction with the regulator (PTA) to try to
eliminate some content PEST (Political, Economic, Sociological and
Technological) analysis is a scan of the outside environment to try to spot
changes that might impact upon business.

Political:
High regulation
Responsibility for content
Access to schools, libraries, hospitals
Universal service

Economic:
GDP
Recession: Fewer computers bought?
Less spent by consumers and providers?

Sociological:
Language barrier
Reluctance to accept new/foreign technology
Demography: age (changing), ethnic mix
Geography: urban/rural
Technological:
Rapidly changing technologies & services
Fueled by the internet:
Transport, switching, backbone, local loop
Disruptive technologies
Reliance on technology

Political Factors:

In Past regulation of the Internet and associated businesses was low in

Pakistan. As the Pakistani government does not employ a sophisticated
blocking system, a limitation which has led to collateral blocks on entire
domains such as Blogspot.com and YouTube.com, it continues to block
websites containing content it considers to be blasphemous, anti-Islamic, or
threatening to internal security. Pakistan has blocked access to websites
critical of the government or the military.
In March 2020, the Pakistan government has taken the unusual step of touting
for firms it thinks could help build it a nationwide content-filtering service
capable of blocking up to 50 million websites.
The Pakistan Telecommunications Authority published a request for proposals
for the “deployment and operation of a national level URL Filtering and
Blocking System” which would operate on similar lines to China's Golden
Shield, or "Great Firewall"
Academic and research institutions as well as private commercial entities have
until 16 March to submit their proposals, according to the request's detailed
35-point system requirements list. Key among these is the following: "Each
box should be able to handle a block list of up to 50 million URLs (concurrent
unidirectional filtering capacity) with processing delay of not more than 1
milliseconds"
Economic Factors:

In any market, the GDP can be an indicator of the potential uptake of a

product or service.
However, a high GDP has not necessarily meant high Internet penetration.
Since telecommunications liberalization (2003 in Pakistan, 1998 in most of
Europe), there has been structural economic change within the sector. There
are many new entrants in all involved markets, and incumbents have begun to
lose out to new entrants that have been granted use of the incumbents,
networks.

Social Factors:

A language barrier may be a deterrent to many from the Internet. Although

other languages are now making their place on the Internet, there is still a
strong bias towards English, as the Internet has its origins in the US.
As other languages become commonplace on the Internet, the ISP market will
grow in more countries. The reluctance to accept new and foreign
technologies has stunted Internet growth in some countries with high GDP.
For example, Japan is a very wealthy country with an excellent
telecommunications infrastructure, but Internet penetration there has been
slow.

Technological Factors:

Internet technologies are developing and improving at an enormous rate. In a

feedback loop of sorts, new technologies are fueling new services, which in
turn are fueling new technologies.
Each part of the Internet (backbone pipes, routers, local loop) is becoming
faster, temporarily satisfying customer demand. Although many new
technologies have been hailed as the killer application (Asynchronous
Transfer Mode (ATM), videoconferencing, VoIP), these have not shown the
uptake expected of them. The phenomenon of the Internet could not have been
predicted, and so it would be folly for an ISP to assume that a new technology
capable of totally restructuring the industry may not appear. Such technology
would be regarded as disruptive.
Disruptive technologies can be seen as those that initially present package of
performance attributes that, at the outset, are not valued by existing customers.
Although the product area may be established, the disruptive technologies
„value proposition is usually very different from that which was previously
available. When launched, they will be targeted towards a whole new (and
non-existing) customer base, one that is happy to pay a lower price and is
willing to settle for lower quality.

PORTER FIVE FORCE ANALYSIS:

Michael Porter of the Harvard Business School has identified five basic
forces, which together describe the state of competition in an industry. These
forces are
The intensity of rivalry among competitors
The extent to which substitute products present a threat
The threat of new entrants to the market
The bargaining power of the industry’s suppliers
The bargaining power of the industry’s buyers.

The center area shown in diagram represents the rivalry in the industry. On the
left are the main traditional players in the industry, with an indication that
there is a large amount of consolidation occurring between these companies.
On the right are the areas in which the market is being fought.
Intensity of Rivalry:

As in Internet Broad industry, there is competition based on price. If one

company can do something as well as another, and for a cheaper price, then
the former will have an advantage and thus be successful in competition. In
Pakistan, there appears to be RS 1000 per month, which many companies are
offering. If we Move to Usage-Based Pricing, many companies are offering
the same deal – access and basic services, and so those that are doing it more
cheaply than others will attract customers. Otherwise, ISPs will have to offer
something special to differentiate them from others. As discussed already,
guaranteed quality of service is of great importance where real-time traffic is
concerned.
Although the market is much segmented, there are an enormous number of
companies providing Internet services. An explosion in the number of ISPs
over the last few years has meant intense rivalry within the industry. Because
there is such an enormous growth in the customer base, the market is still far
from saturation. This is an attraction to still more companies wishing to enter
the market.

Threat of Substitute Products:

There is a tremendous attraction for companies other than ISPs to offer

Internet access and services, especially if they know they can enter the
market at a high-level. Telco’s have the resources and Telecommunications
know-how to be successful in this industry. They are also aware of the
threats of not being a part of this industry, and are entering at tremendous
rate, either by acquisition, merging, or simply becoming ISPs. Although
many of these new companies will fail to survive in the long run, those that
find a niche market and provide satisfactory service will always have
sufficient customer base to continue.
Threats of new Entrants:

Due to the nature of the ISP market, the threat of new entrants is reasonably
strong. There are low barriers to entry - all that is needed to become an ISP
is a small amount of capital and some technical know-how. Much of the
ISP‟s activity can be outsourced, which can reduce initial costs. Regulation
in this area is low, meaning that anyone wanting to enter the market can do
so easily. Due to the concept of interconnection, companies need not own
any sort of network they can use other networks at a price. There have been,
and continue to be many new entrants to the market. In the last 18months,
the number of ISPs has leveled off. However, there have been a tremendous
number of mergers and acquisitions within that time, suggesting that for
every merger or acquisition there has been a new entrant. Although many of
these new companies will fail to survive in the long run, those that find a
niche market and provide a satisfactory service will always have sufficient
customer base to continue.

Bargaining Power of Supplier:

The suppliers to ISPs are those that own the networks. These tend to be
Telco’s and backbone providers. Backbone providers generally own what is
the absolute backbone of the Internet, and control routing and switching of
traffic. Telco’s sown the local loop copper pairs, which most customers use to
connect to their ISP, the lines that ISPs lease to connect to the Internet, and
much of the Internet backbone. Large ISPs are often the suppliers of capacity
to smaller companies.
Because it is impossible for every ISP to build their own entire network, it is
necessary that companies use the existing networks. They have to do this,
which gives the suppliers some power. However, because there are many
suppliers offering the same service, this competition has led to their power
being lessened.

Bargaining Power of Buyer:

Although an individual consumer has little or no say about how much an ISP
charges, due to the rivalry within the market, ISP generally have to offer their
services at reasonable prices. They will lose their customer base if they charge
more for a service someone else provides more cheaply. Switching costs are
low, and so churn rates are high. Businesses have a little more bargaining
power, particularly if they are a significant client of the ISP. However, if a
business’s happy with its ISP it is unlikely to change, and because there is
essentially no ability to backward integrate; the customers tend to have little
bargaining power.

VALUE CHAIN ANALYSIS:

NayaTel is a facilities based carrier. That means we build the network that we
operate and sell services associated with it. NayaTel is the first broadband
Fiber-to-the-User (FTTU) network in Islamabad, Pakistan. In the first phase a
state-of-the-art fiber optic network core was laid down and in the second
phase distribution ring was deployed. We have built a ring network that
completely encircles the business and residential areas in the metropolis. Our
core network is completely redundant and self-healing. The Metro Ethernet
services provided by NTL are based on Cisco Systems platform, an optimized,
carrier grade switching infrastructure designed specifically to support
advanced services over a fiber optic infrastructure. Our data center is equipped
with Cisco routers and high end Sun and Dell Servers. Our core switches
provide high capacity core functions as well as provide sub-second recovery
from many potential network outage events. NTL has deployed Access and
NGN platforms from Alcatel and world's best video head-end from Scientific
Atlanta to ensure quality and performance requirements of our customers. Our
passive optical equipment is supplied by world leaders of component
manufacturing, i.e., ADC and Corning.
Fiber networks clearly outweigh all other broadband options in
performance, security, and scalability.

NAYATEL VALUE CHAIN:

Nayatel's FTTU network deployment is linked with a GIS based in house built
application for effective monitoring and trouble shooting. Our Network
Monitoring System (NMS) continuously monitors all active components and
business customer connections in our network. Any service impacting event
generates an instant notification to our on-call engineers. Our 24 hour TAC
(Technical Assistance Center) can also escalate problems directly to a level
ensuring prompt response.
Nayatel's redundant network enables both large and small companies to
concentrate on their end customers rather than on IT-intensive management
activities. We deliver an unbeatable combination, a fast, secure, reliable
network and a tenacious and highly qualified problem-solving professional
team with years of Internetworking experience. NayaTel provides one stop
solution to meet your need for high-speed Internet access, reliable telephone
services with advanced features, point to point circuits or VPNs and digital
quality Cable Television. NTL recognizes your need to stay ahead of the curve
and provides flexible, reliable and affordable solutions for your business and
home use. Nayatel's FTTU network provides scalability, service neutrality
while preserving QoS, and manageability, which requires distinct type of
Internetworking devices designed to meet demands of carrier fiber
infrastructure, while at the same time offers level of sophistication that the
customer applications and needs demand. Broadband Passive Optic Network
(BPON) Nayatel's FTTU network uses Broadband PON (BPON); which is
widely used technology to deploy Fiber-to-the-User (FTTU) services. BPON
(Broadband PON) is a standard based on APON. It adds support for WDM,
dynamic and higher upstream bandwidth allocation, and survivability. Why
Fiber-to-the-User (FTTU) services?
Internet community finds new and compelling broadband applications
continually which drive the insatiable requirement of amount of bandwidth
which the users want for Internet services.
FTTU removes the service bottlenecks of Last Mile and First Mile
challenges.
Currently in Pakistan optical fiber connectivity is established within PTCL
telephone exchanges and between cities. The local loop, i.e., access to
customer premises from telephone exchange is all copper, which has
limitations in terms of bandwidth and serious quality issues. This 'First Mile'
or 'Last Mile' is and will remain a bottleneck that needs to be addressed to
enable customers to take advantage of services of 21th century and beyond.

SWOT Analysis:

The SWOT analysis is the process of analyzing organizations and their

environments based on their strengths, weaknesses, opportunities, and threats.

Strengths:
 Related Business: NayaTel is already in telecom business and has
developed technical and managerial capabilities.
 Innovation: Broadband is an innovative addition as far as Pakistani
market is concerned. It is in line with the policy of the company to tap
the markets where consumer’s needs are not being addressed.
 Brand Equity: The Company has an established brand name.
 Extensive distribution channels: NayaTel has extensive distribution
channels for the distribution of its new service.
 Market oriented: Company’s comparative advantage lies in already
accumulated knowledge, experience and data in the field
 Financial muscle: NayaTel has sufficient resources to invest in the
new project.

Weaknesses:
 Unpredictable market: Pakistani market is very unstable.
 Unskilled workforce: Specialized training is required for workforce
and management to cope with new challenges emerging from the
introduction of the new service.
 No existing alliances: The Company is making alliances with certain
new suppliers for he equipment etc. which, at present it does not have.
 Low initial returns: Return on investment is initially low.
  High turnover rates: The Company has not been able to retain good
employees for long term. It would also hamper the ability of the
company to handle the launch of new service successfully if the
turnover rate does not come down.

Opportunities:
• Expansion: The biggest opportunity in the Pakistani market is that
there are certain areas where the services of competitors cannot reach.
In those areas there are sufficient people who need the services the
company plans to offer. So, there are sufficient unmet needs in the
market which can be catered through the service.

• Growth in the market: The market for information

technology/broadband service is growing with the growth of middle
income segment in Pakistan. These customers are increasingly
demanding better services.

Threats:
 Short product life cycle: The Company would have to continually
innovate given the nature of the industry. Face pace of technological
developments might render the service obsolete in few years and it
might be replaced by more advanced technology.
 Downturn in economy: The downturn in Pakistani economy might
have impact on disposable income of the population which might not be
inclined to spend much on the entertainment activities. General
wellbeing of economy always has favorable impact on all the
businesses.
 Little potential differentiation: It is expected that other competitors
would enter the market. It might start price war between NayaTel and
potential competitors. In that case there would be very less
 differentiation NayaTel would be able to offer given the nature of the
service.
 Increased bargaining power of suppliers: The Company would need
vital alliances with suppliers and other partners. They might be
suppliers of the competitors. Suppliers bargaining power might increase
in that case making input costs high and leaving the company in
difficult position.
 Uncertain demand: It is very difficult to estimate the exact demand for
the service. There might be variation which could result in losses for the
company.
 Employee retention: NayaTel might lose its key personnel to other
competitors.
References
www.nayatel.pk/
www.pta.gov.pk
www.ptcl.com.pk/
http://propakistani.pk/