This document proposes that electronic media conglomerates in Pakistan diversify into providing converged communication services, like telecom operators. It argues they are better positioned than telecom operators to do so due to regulations favoring local ownership. The proposal involves a phased strategic roadmap: 1) Becoming a content aggregator 2) Providing ICT-enabled services as a third-party service provider 3) Entering the telecom sector either as a mobile virtual network operator or by acquiring licenses and spectrum to become a mobile network operator through infrastructure sharing agreements. This would allow electronic media companies to sustainably leverage their brand recognition and local content expertise.

1. CONCEPT PROPOSAL
MEDIA COMPANY LED- MVNO
Diversification Strategy for
Electronic Media Conglomerate –
Provision of Converged Services
(ICT & Broadcasting Services) in
Pakistan

2. Hypothesis & Business Proposition
 Hypothesis
“Taking the advantage of the robust Information and Communication
Technologies (ICT) Infrastructure and enabling provisions of IT & Telecom
Sector De-Regulation Policies in Pakistan; Electronic Media Conglomerate
are better positioned to provide the Converged Services (voice, data,
broadcasting and other ICT enabled services) than that of Telecom
Operators”
 Potential Benefits:
Electronic Media Conglomerates should diversify their business for
provision of converged services for:
 Sustainability through diversification and strategic alliances;
 Improved performances in terms of revenues and market value;
 Competitive edge through strategic positioning of organization based on
opportunities in business environment and alignment of resources
(“Capabilities-organizational ability to mobilize resources” and “Social Capital-
leverage social networks to attract strategic alliances”)

3. Enabling Provisions of Policies of De-Regulated IT &
Telecom Sector for Electronic Media Conglomerates
 Electronic Media Company may provide Telecommunication
Services as Mobile Virtual Network Operator (MVNO) as envisioned
in De-Regulation Policy and Framework devised by Pakistan
Telecommunication Authority;
 Electronic Media Company may provide Branch-less Banking
financial services:
 In the capacity of Third Part Service Provider (TPSP) as per the GoP
Policy on Mobile Banking and State Bank Regulations OR
 By acquiring a Bank in line with Telecom Operators strategy to provide
services with full control in current Bank-Led Branchless Banking
Model as per State Bank of Pakistan (SBP) Regulations;
 Based on strength to project the idea/service more effectively than
any other player; Electronic Media may provide IT & IT Enabled
Services (ITeS) and can provide multiple services within Pakistan
and abroad. Pakistan Software Export Board and Ministry of
Commerce are encouraging and facilitating the Private Sector
initiatives to increase the trade in services

4. Why Electronic Media Conglomerates are
better positioned than Telecom Operators?
 Most of the dominant telecom operators in Pakistan are 100% foreign
equity based companies thereby attracting restrictions in The PEMRA
Ordinance, 2002.
 Only PTCL has IPTV license because of the fact that majority shares are still
with GoP and Public at large;
 Operators have concentrated efforts towards the banking sector and might
affect their core business in the long run
 “Light touch” is the basic principle of Telecom and IT sector regulations in
which all telecom operators have flourished and Corporate Governance is
designed accordingly.
 Telecom operators depends heavily on Electronic Media for advertisement
of the services/packages/applications to influence clients’ perception and
huge budget is being spent on this account.
 Brand recognition and power is less as compared to bid media
conglomerates
 Telecom operators’ lack “Local Content” and rely more on “YouTube and
Facebook etc.” and has very limited control over the content
management. Rather they have to advertise over these on-line platforms
for clients’ retention and attraction.

5. Phased Strategic Road Map
• Step-I: Provision of enabling platform of “Professional and User-
Generated Content Aggregation” in the capacity of Content Aggregator;•
• Step-II: Provision of enabling platform for telecom network agnostic ICT
enabled services such as “E-Health”, “E-
Education”, “IPTV”, “branchless/mobile banking” “services in the
capacity of Third Party Service Providers (TPSP);•
• Step-III: Depending upon level of aggressiveness and confidence in
internal capabilities of the EMC; following two strategies may be
adopted:
– Provision of voice, video and data services on mobile devices
(mobiles/tablets) through SIMs with their own brand in the capacity of
Mobile Virtual Network Operator (MVNO); OR
– Provision of converged services in the capacity of Mobile Network Operator
(MNO) by “acquiring the license and spectrum in upcoming auction of 3G
spectrum” and “Infrastructure Sharing Agreements with existing operators”

6. New Model for Telecom Operators-
Need to identify “Weakest Link”

7. Business Model-Electronic Media
Conglomerates
TPSP
Content & ICT Enabled
Value Added Services
& Applications
Broadcasting/IPTV
Single Media (ICT Infrastructure) of Telecom Operators