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DOWNFALL OF Murtaza Shabbir MOBILINK BT-08-47



Ahmad Hannan

2 Downfall of Mobilink

Mobilink Pakistan, premium cellular company claims to have 30 million subscribers nationwide; the fact is Mobilink is the largest cellular company in Pakistan. Mobilink being the pioneers of introducing cellular networks in Pakistan established themselves as the major cellular company of Pakistan while covering almost every city of Pakistan. According to PTA new mobile subscriber’s statistics Mobilink, Pakistan largest cellular service, continues its downfall by losing 476,521 customers. The report has tried to illustrate and judge some of major reasons for downfall. This report contains information about factors and some strong competitive forces Moblink faced which resulted in crisis. Mobilink is major cellular company and will stand in first place many years to come. With professional approach and highly skilled staff behind Mobilink is the premier choice for subscribers nationwide. The only problem I see with Mobilink is the call rates which in my point of view are somewhat high. As the competition is growing I hope the rates will be cut down to attract more subscribers.

Bilal Chaudhry. it is He who gives Life and death and He has power over all things. I worked as a group leader with my co-workers: We interviewed Mobilink’s Managers.” (Al-Quran) All acclamation to Allah who has empowered and enabled us to accomplish the task successfully. help and guidance has been a real source of all our achievements in our life.3 Downfall of Mobilink Acknowledgement “To Him belongs the dimension of the Heavens and the earth. . I would like to thank respected Mr. I would like to thank all of Mobilink’s Crew for their help in all possible ways. Moreover. Employees. First of all we would like to thank our Allah Almighty who really helps us in every problem during the project. We would like to express our sincere and humble gratitude to Almighty whose Blessings. Corporate and Retail Customers and customers which once used Mobilink. visited PTA’s results to get to know what are some of reasons for such a storming downfall Mobilink faced. ZRO [Zonal Retial Officer] Multan for his deep concern and help for our topic. Under the supervision of respected Madam QuratulAin Beenish.

4 Downfall of Mobilink  Mobilink Table Of Contents  Mission statement  Values  History Of Mobilink  PTA  Mobilink  Orascom Telecom  Network  Organogram  Products of Mobilink  Growth Share Matrix  Downfall Of Mobilink  What is Downfall  Literature review  Public Voices   Major Downfall Reasons SWOT Analysis Of Moblink  Conclusion  Bibliography  Refrences  Anextures .

employees.5 Downfall of Mobilink Mobilink MISSION STATEMENT “To be the unmatchable mobile system of Communications in Pakistan this provides the best value to its customers.” Mobilink's Vision “To be the leading telecommunication services provider in Pakistan by offering innovative communication solutions of our customers while exceeding shareholder value and employee expectations” . business partners and Shareholders.

This commitment to delivering worldclass quality translates into unmatched service and value for our customers and all stakeholders. Respect for People: Our relationships drive our business. we recognize and fulfill our responsibility towards our country and the environment we operate in. empowerment and honor. We aspire to the highest standards and raise the bar for ourselves everyday. quality and value beyond their expectations. We respect and esteem our employees and all stakeholders. and treat everyone fairly. we strive to anticipate their needs and deliver service. Corporate Social Responsibility: As the market leader. and by honoring our commitments. They have placed their trust and confidence in us. Business Excellence We strive for excellence in all that we do. and with trust and respect. Trust & Integrity: At Mobilink. We take personal responsibility for our actions.6 Downfall of Mobilink Values Total Customer Satisfaction: Customers are at the heart of our success. We believe in teamwork. we take pride in practicing the highest ethical standards in an open and honest environment. In return. We contribute to worthy causes and are dedicated to the development and progress of the societ and y. .

The telecom sector was deregulated in 2003. the mobile sector generated Rs 133 billion in revenues. Mobilink Mobilink GSM (PMCL). .a base of over 28 million and growing.6% of the total FDI in that period. and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan . the telecom sector has also created over one million in jobs. Furthermore. the total mobile phone subscribers in 2007 were more than 63 million. The first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of-the-art communication solutions to its customers. a growth of more than80% from the previous years. since its deregulation. which is 35. Thereafter. operation and maintenance of telecommunication systems. started its operations in 1994. making Pakistan one of the world’s fastest growing telecom markets. During 2006-07. Pakistan Telecommunication Authority (PTA) was established in January 1997 to regulate the establishment. a subsidiary of Orascom Telecom. The Pakistan Telecommunication Ordinance 1994 established the primary regulatory framework for the telecommunication industry including the establishment of an authority.8 billion in foreign direct investment (FDI) in 2006-07 . The telecom sector contributed 2% to the GDP in 2005-06 and received more than $1. According to the Pakistan Telecommunication Authority (PTA). Telecommunication (Re Organization) Act no XVII was promulgated in 1996 that aimed to reorganize the telecom sector of Pakistan. Under Telecom Reorganization Act 1996.7 Downfall of Mobilink Pakistan Telecommunication Authority The telecom sector of Pakistan has seen phenomenal growth over the past few years. an increase of 48% from the previous years and contributed Rs 63 billion to the national exchequer in terms of taxes and regulatory fees. and the provision of telecom services.

Orascom Telecom took over management control of the company. we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers. Orascom telecom Mobilink launched its operations in August 1994 after it was founded in 1990 as a joint venture between Motorola and the Saif Group and awarded a license for mobile telecommunication system and services in July 1992. 2007. 2. Orascom Telecom indirectly owns 100% of the share capital of Mobilink through direct stakes held by wholly owned subsidiaries of OTH. By December 2007.5G. In April 2001. GPRS and EDGE compatibility. At the same time. we speak your language. both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry. providing 2G.8 Downfall of Mobilink Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people. Later on in April 2000. Compared to our competitors. In other words.69% by purchasing Motorola’s share in PMCL and Becoming the major shareholder of the company. Orascom Telecom bought 38. To achieve this objective. As of December 31st. which it later in February 2001 increased to 68.000+ cities and towns nationwide as well as over 130 countries on international roaming service. Mobilink places high importance to its coverage. Mobilink had achieved 39. everywhere. which is why we cover you in 10.6% stake in PMCL. from individuals to businessmen to corporate and multinationals. Mobilink has been growing its network. In addition to providing advanced voice communication services that makes the lives of millions that much easy. we also offer a host of value-addedservices to our prized customers. Mobilink was .8% in market share. making it the market leader in the mobile sector of Pakistan and had a customer base of more than 32 million by July 2008. Network Mobilink was awarded a 15-year license in July 1992 to establish and operate a Digital cellular telecommunication system using the GSM 900 standard and to offer telecommunication services in Pakistan.

Mobilink is committed in providing the best network to their customers. Organogram . Years of Business Cities Investment Switches Cell Sites Optical Cable Deployment Switch Types Radio Base Stations Intelligent Networks Microwave Equipment Operating Frequency SMSC 13 7000+ USD 1 Billion+ 66 6. Alcatel.300 5. which in recent times has expanded to more than 9000 cities and reaches over 66% of the total population and 99% of the urban population as of December 31st. 20076. Mobilink also launched its BlackBerry service in December 2005 through its GPRS platform. Huawei Motorola and Alcatel Siemens NEC and Alcatel 900/1800 MHz Logica CMG In addition.000 KM Nokia-Siemens.9 Downfall of Mobilink the first operator to start rolling out the Enhanced Data Rates for Global Evolution (”EDGE”) in Pakistan.

Administration & Security Ali Raza Mehdi Vice President Sales Jahanzeb Taj Vice President Marketing Bilal Munir Sheikh Vice President Customer Care Irfan Akram Vice President & Head of Broadband Business Division. Aamir Products .10 Downfall of Mobilink President and CEO Rashid Khan Chief Information Officer Tariq Rashid Vice President Human Resources. Mustafa Peracha Chief Technical Officer Ramy Reyad Kamel Vice President Corporate Affairs Agha Qasim Vice President/ Chief Strategy Officer Mr.

11 Downfall of Mobilink 1. they offer both postpaid (Indigo) and the prepaid (JAZZ) services to their customers. The user can decide in advance when and how much he wants to spend. taking into account occasional users to businessmen.Mobilink WiMAX 7. Blackberry Services They offer tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people.Mobilink PCO 6.Stock Watch . not only Indigo and jazz mobilink have 13 more products given below.PIA Reservations 2. Jazz is an amazing prepaid service that allows freedom from monthly bills and gives complete control over the customer’s cellular expenditure.Mobilink BlackBerry 5. To achieve this objective.Conference Bridge 11. easy and loads of fun. He can load a scratch card whenever he wants to and start talking. Jazz Prepaid 2. Indigo Postpaid 3. Jazz is simple.PSO Cards 12.Mobilink Indigo 3. 1.Jazz Cricket SIM 10. Mobilink Jazz 4.Mobilink Game ON 9.Mobilink TV 8.

Chat Services 7.SMS Messaging 5.Corporate SMS VALUE ADDED SERVICES In addition to providing advanced voice communication services. IVR Ring tones/Logos 12. GPRS 3.Missed Call Alerts Strategic Business Units of Mobilink . Power Tools 9. 1.Mobilink Mustt Services 4.Fax Mail 15.Mail Services 10.Power Tools 6.SMS Advertiser 14.Info Services 11.Dedication Services 8.12 Downfall of Mobilink 13.On Call Services 2. they also offer a number of value added services to their valued subscribers.

13 Downfall of Mobilink • Jazz One • Jazz Budget • Jazz Ladies First • Jazz Easy • Jazz Octane • Mobilink Indigo • Mobilink PCO Classification of SBUs according to growth-share matrix: CASH COW •Jazz Ladies First •Mobilink Indigo •Jazz Budget STAR .

com “A sudden loss of wealth. rank. ruin” Merriam Webster .” www. or happiness.14 Downfall of Mobilink •Jazz One QUESTION MARK •Jazz Easy •Mobilink PCO DOG •Jazz Octane Downfall of mobilink What is downfall? “Failure that results in a loss of reputation” “a sudden decline in strength or number or importance.wordnet. reputation.

or hopes” www.dictionary.telecompk.6%. as of one's health.n et In pakistan the inflation is around 25% and prices for necessities of life have skyrocketed. In the past few years consumption was encouraged and that resulted in more consumer spending on phones (draining the foreign exchange) and on voice and data. Real gdp growth has fallen to 3. More first time users of mobile services signed up.15 Downfall of Mobilink “Something that causes severe impairment. government has raised . honor. Naturally telecom has taken a hit. Now with the rough patch in economy. Literature review effect of economic recession on Pakistan telecom babbar bhatti www.

we have not seen large scale work force reduction in Pakistan.16 Downfall of Mobilink taxes on handsets (to discourage import) and the services (to squeeze more revenue). Pakistan should do fine.overall environment determined by political and security situation 4. . Here are a few of the recent announcements from the global telecom media.000 Jobs Foreign direct investment in telecom sector of Pakistan drops Zulqernain tahir. Even in these times the growth and new services potential remains compelling because: 1. Over 100 million population are less than 30 year of age and they are highly likely to use tecnology and communication services 2. Regulator (PTA) continues to engage in reforms and is executing well The conclusion is that if the politics and security situation does not worsen. Other than the voluntary separation plans from PTCL. Business and investment friendly policies . • • • • • • • • AT&T to Slash Work Force Blackberry Sign-Ups Miss Target Global Mobile-Phone Sales to Fall Nokia Cuts Mobile Phone Mkt Forecasts Again Gartner: Smartphone Sales Slowdown To Continue Nortel cuts jobs and lowers forecast BT British Telecom Lay off Job Cut: fires 10000 Telecom Italia to Cut 4. Incomes are rising among certain sectors including middle income 3.

Warid 15. The reason of decline in the subscriber-base is said to be imposition of high taxes. By August this year. the PTA report reveals that subscribers' growth rate has also registered a decrease of 61 per cent this year as compared to the corresponding period last year. It is learnt that major investment by the leading operators may not resume even next year owing to prevailing economic and political uncertainty. 2008 Dawn news According to the third quarterly report of the Pakistan Telecommunication Authority (PTA). However.9. the total FDI in the sector was $1.438.3 million.6. By June last year. .8 million and Instaphone 321. A mobile user has to pay almost 31 per cent in terms of taxes/service charges which is at least 14 per cent higher than anywhere in the world.17 Downfall of Mobilink Oct 22.6 million in 2008. and. Now every customer has to pay Rs5 more in terms of service charges to the mobile phone company on topping every recharge of Rs100. The stiff competition among cellular companies has compelled them to lower their call rates with an aim to capture subscribers' market. The PTA report further reveals that teledensity of mobile phones has only reached 55 per cent in the country.824. which is also resulting in decrease in their profitability. the operators are of the view that 'current uncertain situation' has played a major role in keeping the FDI at bay. It belies the claim of those even in the PTA that 'around 90' per cent of the total population of the country now has cell phone coverage. secondly. The number of PTCL subscribers has also reduced from 4.5 million by Aug this year. an increase of only 11 per cent to that of registered in 2007. the local financial market has enabled them (operators) to generate sources locally.5 million. the report says. Ufone 18.6 million to 4.3 million in 2007 which dropped to $1. total subscribers were 63 million and the number has risen to 89. The authority maintains that main reason behind the decline is that cellular operators have already invested huge amounts to roll out the infrastructure.4 million this year. Telenor 18. Zong 4. Mobilink has a subscriber-base of 31. On the other hand.134.

”[8] . will surely put the existing big boys of cellular services in Pakistan like Mobilink and Ufone on high-alert and may be give them sleepless nights. deplorable services and deceptive marketing practices”[6] “Mobilink. On the financial front the operator is going through a crisis bringing the jobs of many on stake and has been fined in past with millions of rupees by PTA for interrupted service. the market leader. the Pakistani incumbent.50. detested packages. It is seen that out of the 20.”[7] “Statement from the China Mobile Chairman that China Mobile sees their Pakistan operations as a valuable experience for its subsequent international ventures. saw a drop in mobile subscriber base which fell from 28.000 have been blocked by PTA after they were identified as illegal SIMs.000 subscribers driven by interrupted service and blocking of illegal SIM by Pakistan Telecommunication Authority (PTA).000 have ported their numbers to other subscribers and the rest 12. Mobilink has been facing such problems due to poor quality of services.315 million to 28.000. 00.18 Downfall of Mobilink Public voices about downfall “Mobilink.The subscribers with Mobilink are seen to be using number portability more than any other Pakitani operator.”[5] “Not only sales and number of SIMs are a part of strategic failure of Mobilink but also its policies including highly hiked operational expenses.50.116 million during January-February 2009. Mobilink’s subscriber base now slided from 32 million to 30 million.000 subscribers. has lost more than 2. 7.

Wateen.19 Downfall of Mobilink “Mobilink. Mobilink face financial crises. The products and services they are working on and will be offering soon are: 1. IPTV 4. Video Telephony”[9] “Mobilink forcly terminated their one thousand employees in all over Pakistan from administration and security department without any notice. VAS Portal (with music. They are now "stealing" ideas from their biggest rivals. Online gaming service (I wonder how they are going to put up so many servers) 2. movies and stuff) 5. once the market leader in innovation and new ideas has not been able to find a single new idea for its WiMAX services.”[10] . IP Video Surveillance 3.

Due to increased economical recession even corporate sector is turning towards affordability.20 Downfall of Mobilink Major downfall reasons Affordability versus availability: Higher operational Cost Mobilink started with owned technological resources which increased operational cost. They started with their own network lines throughout covered areas. Higher operational cost resulted in higher amount to be paid from lower end customer. As people started using Jazz. 5+ GST per hour 11pm-6am. Major customer share is now related to Middle and lower class of Pakistan. The higher cost started acting as downfall with the increased competition and availability of cheaper networks. The whole corporate sector faced this problem with greater intensity. Mobilink took quite a long time to get back to improved infrastructure but it lost Customer’s satisfaction Level. Detested packages: Loss of reliability Mobilink offered a packaged named JAZZ LADIES FIRST. Mobilink offered high incentives for its employees as well as high amount towards advertisement campaign and brand imagery by focusing on uptodated service centers and head office interiors. The package consisted of lower rates of Rs. This package was innovation in Telecom sector and attracted a huge amount of customers. the mobilink’s infrastructure was not capable enough to carry out such a huge load once the clock ticked 11 pm. .

Once you have confirmed your identity you are allowed to subscribe to your subscriber network. Mobilink sat back and did’nt put forward any special competiting package for a long period of time.21 Downfall of Mobilink Deceptive marketing practices: Lack of quick response With the arrival of Zong.. Now if you buy a new SIM. the competitors in market [Ufone. a large number of subscriber base who were illegally using SIM’s was destroyed. blocked usage of illegal SIM’s. PTA. ID card no. connects operatot to the database of NADRA. By the launch of MNP. you have to dial 789 and the operator may ask u about your Identity Card No. A china Mobile Company. warid. Mobile Number portability: Blockage of illegal SIM use Pakistan telecommunication Authority. but mobilink did’nt put forward any innovative package for the particular service to compete in market. Telenor] focused on introducing lower rates for Smart Messaging Service. SMS is now a craze for a major customer group especially teen agers. According to NAWA e WAQT 3 Million people in Pakistan are still using Illegal SIM’s. . Meanwhile customers moved toward cheaper packages. Then operator will ask you few questions about your identity for example your Mother’s name etc.

Mobilink's short message service center allows Vehicle Tracking and Fleet (VTF) Management services. A very strong brand image Highest market share not only in terms of number of subscribers but also in terms of revenue.000 cities. Only company offering corporate packages . • Economy of scale. • Mobilink and Muslim Commercial Bank have made a combined effort in order to maximize the ease and the satisfaction of their respective customers by offering them all banking services from their very own mobile handset. Mobilink is offering Motorola Timeport Triband (TT) handsets on rental basis. Mobilink has signed bilateral roaming agreements with 50 operators around the world to have true roaming service operational in over 42 countries of the world. In order to facilitate its international Roaming subscribers traveling to USA and Canada. • Large number of corporate customers. towns and villages across the Pakistan[10] First operator to introduce IR for the people of Pakistan Only cellular service in Pakistan to provide coverage on the M2 motorway.22 Downfall of Mobilink Swot analysis of mobilink Strengths: • • • • • • • • • • • Considered very strong and reliable Captured most of the potential customers (28 million and growing) Covering over 10. These sets are available at all Mobilink's Customer Service centers.

23 Downfall of Mobilink Weakness of mobilink • Currently providing not good quality service because of changing their network from 900 MHz to 1800 MHz. • Most expensive telecom company both in call rates and SMS • Engineering department of Mobilink is not that well competent as compared to its new competitors • Customer retention Side is weak due to expensive packages Opportunities: . • Fewer advertisements now days.

Employee retention is also issue because mobilink fired 1000 employees in October 2008. • Current price war may reach at a position where only brand names survive. • Due to expensive quality of service now a days customers can shift to other companies.24 Downfall of Mobilink Can expand its networks in the uncovered areas Services in the future can be  Telephone  Wireless  Calling Cards Mobile Phone Banking Before start of new companies can target as many new customers as they can. Loss of loyal customer  • • . • Wireless local loop service providers too targeting areas which are less developed. • New companies can offer packages for corporate customers in better way. Can lower prices to make business difficult for new companies • • • Threats: New market players are coming in near future.

With professional approach and highly skilled staff behind Mobilink is the premier choice for subscribers nationwide.25 Downfall of Mobilink Conclusion Mobilink still has power and Brand Image as well as corporate Impression. Mobilink is major cellular company and will stand in first place many years to come. . It still needs a long time period and recession to get beaten by competing companies. warid-takes-top-level/ 2. www. Daily] 5.wirelessfederation. Bibliography MNP Moibile Number portability PTA Pakistan telecommunication Authority .pta. Pakistan Telecommunication Authority [www. http://www. Downfall of Mobilink References PTA. July www.zenblog.