Industrial Analysis of Telecom Industry + Mobilink strategies and opertions in Pakistan

1. ASSIGNMENT
Subject:
BUSIESS PLOICY AND STRATEGIC MANAGEMENT
Submitted To:
SIR KHURRAM
Submitted By:
Fatima Arshad

2. Executive Summary
The mobile industry of Pakistan has seen phenomenal growth in recent years. The total mobile
subscribers in 2007 were more than 63 million, a growth of more than 80% from the previous year. The
telecom sector of Pakistan was deregulated in 2003, and mobile industry being a part has seen
phenomenal growth ever since. Many analysts believe that Pakistan is one of the fastest growing
telecom markets in the world.
There were six diverse companies making the mobile industry of Pakistan, Mobilink being one of them.
Other companies include Ufone, Telenor, Warid, Zong and Instaphone. Mobilink enjoys being the
market leader with a 36% market share as of July, 2008.
Pakistan Mobile Communications Limited (PMCL) launched its operations in August 1994, under the
brand name of Mobilink. Initially it was a joint venture between Motorola and the Saif Group. Later on in
April 2000, Orascom Telecom bought 38.6% stake in PMCL, later increasing it to 68.69%. In April 2001,
Orascom Telecom took over management control of the company and as of December 31st, 2007,
Orascom Telecom owns 100% of the share capital of Mobilink.
Mobilink was awarded a 15-year license in July 1992 to establish and operate a digital cellular
telecommunication system using the GSM 900 standard. Mobilink has been growing its network ever
since, providing 2G, 2.5G, GPRS and EDGE compatibility. Mobilink is committed in providing the best
network to their customers, 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, 2007.
Pakistan Mobile Communications Limited (PMCL) or Mobilink is currently headed by President and CEO
Zouhair A. Khaliq. Mobilink’s headquarter is located in Islamabad and has eight different departments.
All major decisions regarding Mobilink are taken centrally in Islamabad.
Mobilink’s finances are as strong as its operations and customer base. For the year ended December,
2007, the total profit after taxation was more than Rs 4bn. Furthermore Mobilink’s fixed assets have
shown a rise in 2007, so have the long term liabilities and shareholder equity.
Mobilink being the market leader is also able to attract the most talented professionals. Its current
employee force consists of more than 4500 unique individual. Attracting customers is a tough job and
that is why the marketing department of Mobilink develops a number of marketing campaigns to attract
customers. Furthermore it also takes the help of a leading advertising agency of Pakistan and uses brand
ambassadors from various walks of life to promote its products and services.
The mobile industry provides three major product lines, which include the consumer packages, value
added services and corporate packages. The consumer packages include the postpaid and prepaid
packages; the value added services provide entertainment, information and a lot more to their
subscriber, while the corporate packages have been introduced to cater to the needs of large businesses
and corporate clients.
The mobile industry of Pakistan has witnessed phenomenal growth periods over the years. As of July
2008, the growth rate of the entire industry was more than 40%. There are four major competitors of

3. Mobilink. Ufone is the closest with a market share of 21% in July 2008, followed by Telenor with 20%,
Warid by 18% and Zong by 5%.
Lastly I would say that Mobilink became the market leader by introducing new products and services
that took full advantage of new technologies over the years and I hope that it will tend to do so in the
coming future and provide stiff competition to any challenger that poses a threat to its leadership in the
market.
TELECOM INDUTRSY ANALYSIS
The telecom sector of Pakistan has seen phenomenal growth over the past few years. According to the
Pakistan Telecommunication Authority (PTA), the total mobile phone subscribers in 2007 were more
than 63 million, a growth of more than 80% from the previous years. During 2006-07, the mobile sector
generated Rs 133 billion in revenues, an increase of 48% from the previous years and contributed Rs 63
billion to the national exchequer in terms of taxes and regulatory fees. The telecom sector contributed
2% to the GDP in 2005-06 and received more than $1.8 billion in foreign direct investment (FDI) in 200607 , which is 35.6% of the total FDI in that period. Furthermore, the telecom sector has also created over
one million in jobs, since its deregulation, making Pakistan one of the world’s fastest growing telecom
markets.
The Pakistan Telecommunication Ordinance 1994 established the primary regulatory framework for the
telecommunication industry including the establishment of an authority. Thereafter,
Telecommunication (Re-Organization) Act no XVII was promulgated in 1996 that aimed to reorganize the
telecom sector of Pakistan. Under Telecom Reorganization Act 1996, Pakistan Telecommunication
Authority (PTA) was established in January 1997 to regulate the establishment, operation and
maintenance of telecommunication systems, and the provision of telecom services. The telecom sector
was deregulated in 2003.
Currently there are six mobile operators operating in Pakistan, which include Mobilink, Ufone, Telenor,
Warid, and Zong . Mobilink started its operations in 1994 as the first GSM cellular mobile service in
Pakistan, started by Motorola Inc. Later it was sold to Orascom, an Egypt-based multi-national
company. Mobilink is the largest cellular service provider in Pakistan. Another company, Pakistan
Telecommunication Mobile Limited (PTML) is a wholly owned subsidiary of PTCL, established to operate
cellular telephony. The company commenced its operations, under the brand name of Ufone from
Islamabad on January 29 2001. Later, as a consequence of PTCL’s privatization, 26% of its shares were
acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone had also been handed over to Etisalat.
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia. Telenor Pakistan
launched its operations in March 2005 as the single largest direct European investment in Pakistan,
setting precedence for further foreign investments in the telecom sector. In 2004, Warid Telecom
International LLC, purchased a license for operating a nationwide mobile telephony network, (WLL) and
long distance international (LDI) for $291 million US dollars and was the first venture of Warid Telecom
International LLC. Warid Pakistan launched its services in May 2005. On June 30th, 2007, Singapore
Telecommunications Limited (SingTel) and Warid Telecom announced that they had entered into a
definitive agreement subsequent to which SingTel will acquire a 30% equity stake in Warid Telecom for
an estimated $758 million.
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas set up of
China Mobile came through acquisition of a license from Millicom to operate a GSM network in
Pakistan. Millicom had initially bought Paktel in 2003 from Cable & Wireless. Paktel was the first ever

4. company granted license to carry out cellular phone services in Pakistan. Currently CMPak is operating
in Pakistan under the brand name of Zong. Instaphone is another telecommunication company in
Pakistan. Instaphone was one of the pioneers of cellular industry in Pakistan. Initially the company was
owned by Millicom International; later on Arfeen Group acquired it. Currently, the license of Instaphone
has been terminated due to non payment of license fee to PTA. The company under a renewed license is
planning to role out a countrywide CDMA mobile network and would be the only CDMA mobile operator
in Pakistan to launch first 3G services in Pakistan.
EXTERNAL ANALYSIS
Growth Rate of Entire Industry
The mobile industry has seen phenomenal growth over the years. Today there are five major
competitors competing for their subscriber base, increasing the services provided, reducing their call
rate and having aggressive marketing campaigns. Simply put, competition is heating up in the mobile
industry.
In July 2008, according to Pakistan Telecommunication Authority (PTA), the total subscriber base in the
mobile industry reached to more than 89 million to 89,325,296. This was an increase of 41.4% from
December 2007. Although this is phenomenal growth, analysts believe that it mould be even higher, if
taxes would have not increased, in the financial budget.
The mobile industry saw phenomenal growth from 2005-2006. According to PTA, on average 2.3 million
subscribers were added every month during 2006-07.
Furthermore, in 2003-04 the sector was offering 466,068 direct and indirect employments, which in
2006-07 more than doubled to 1,366,698 employments. Also the cellular mobile density or mobile
penetration in the total population has also increased over the years. In July 2008, the mobile density
reached 55.62%. It was 54.7% in Dec 2007 and 39.94% in Dec 2006, according to official figures.
Also during 2006-07 the revenue of mobile industry was Rs.133 billion, an increase of 48% from pervious
year
However, none the less, the growth has subsided since 2006, from 170.2% in December 2006 to 80.7%
in December 2007, the major reasons of which include the crackdowns on SIM registration, rising taxes
and the general economic conditions of the country.

5. According to this figure Mobilink Is at near to its maturity stage to remain in market they continueously
offer different packages according to the need of customers. Ufone, Telenor, Zong and Warid are at
growth stages while instafone and world call are do not exist in the market.
Recipie For Success
“Mobilink Leads With Slogan Of Understand, Invest And Innovate”
Understanding of the market, continuous investment and innovation is what has helped Pakistan Mobile
Company Limited – known for its brand name Mobilink – sustain the top position among the country’s
cellular mobile operators (CMOs), according to Farid Ahmad, company’s Vice President of Marketing.
Other telecommunication companies are also follow different competitive and strategic policies to
acquire market share and to achieve success.
Competitor Analysis of Mobilink
Major Competitors

6. o
Ufone
Pakistan Telecommunication Mobile Limited (PTML) is a wholly owned subsidiary of PTCL, established to
operate cellular telephony. The company commenced its operations, under the brand name of Ufone,
from Islamabad on January 29, 2001. Since its inception, Ufone changed the image of mobile phones
from a luxury only affordable by the elite, to a necessity affordable by the common man. Ufone’s
primary focus always remained on their valuable customers, introducing services over time to fulfill their
need and demands. Ufone’s slogan has always remained “It’s all about U”.
As a consequence of PTCL’s privatization in 2006, 26% of its shares were acquired by Emirates
Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been
handed over to Etisalat. Now, under the management of Etisalat, Ufone tends to concentrate on
customer needs and benefits and its management is even more determined than ever to be the leading
cellular player in the market, because Ufone has been known for providing superb propositions and
quality service to its customers and tends to keep that reputation in the future.
Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of
over 18 million in July 2008, according to PTA and a market share of 21% during the time period.
Currently, Ufone has network coverage in more than 750 cities, towns and across all major highways of
the country. It also provides international roaming to more than 195 live operators across 119
countries..
2.4.1.2 Telenor
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with
Thailand, Malaysia and Bangladesh. Telenor acquired the license for providing GSM services in Pakistan
in April 2004, and had launched its services commercially in Islamabad, Rawalpindi and Karachi on
March 15, 2005 and on March 23, 2005 Telenor started its services in Lahore, Faisalabad and
Hyderabad. Telenor’s investment in Pakistan is the single largest direct European investment in Pakistan.
By the end of July 2008, the total subscribers of Telenor exceeded 18 million, with a market share of
20%. Telenor’s network covers more than 3000 cities, towns and highways throughout
Pakistan.Furthermore, Telenor Pakistan has more than 5,000 cell masts throughout Pakistan, making it
the 2ndlargest network in Pakistan and 3rd in terms of customer base.
Telenor has a strategic alliance with Nokia Siemens Networks for expansion in Pakistan. With USD 1
billion already invested, Telenor has extended agreements with its vendors, including Nokia Semens for
network expansion and services until 2009. The agreements will result in USD750 million worth of
orders from Telenor Pakistan.
2.4.1.3 Warid
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. In 2004, Warid Telecom
International LLC, purchased a license for operating a nationwide mobile telephony network, (WLL) and
long distance international (LDI) for $291 million US dollars and was the first venture of Warid Telecom
International LLC. Warid Pakistan launched its services in May 2005 and is based in Lahore.
Abu Dhabi Group is one of the largest business groups in the Middle East and the single largest foreign
investor in Pakistan. Abu Dhabi Group entered into a strategic alliance with Singapore Telecom.
Subsequent to this transaction in July 2007, telecom giant SingTel acquired 30% percent equity stake in
Warid Telecom, Pakistan, for US$758 million- valuing the company at an enterprise value of $2.9 billion.
This partnership is part of a strategy to support Warid Telecom’s continued growth and to enhance its
market position.

7. In July 2008, Warid’s total subscribers were more than 15 million subscribers and enjoyed 4th position in
the market with a market share of 18%. In June 2008, Warid Telecom announced it would invest $1.5
billion by end of this year and $2.5 billion by end of 2009 to expand and modernize its network in
Pakistan.
2.4.1.4 Zong
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas set up of
China Mobile came through acquisition of a license from Millicom to operate a GSM network in
Pakistan. With ambitious plans to cater to the fastest growing Pakistani market and to win over the ever
demanding Pakistani customer, CMPak's edge comes from the experience and expertise of running the
world's largest telecom service and the commitment they make to setting quality and customer
relations standards. ZONG is the first International brand of China Mobile being launched in Pakistan.
On 22nd January 2007, Millicom International Cellular S.A. announced that it would sell its 88.86 percent
stake in Paktel Ltd. to China Mobile for $284. On 4th May 2007, Paktel was renamed to CMPak and then,
on 16th May 2007, China Mobile announced that it had upped its stake in CMPak to 100%. It later
rebranded branded Paktel to Zong.
In July 2008, the total subscribers of Zong were more than 4 million and enjoyed 5th position in the
market with 5% share in the market. So far CMPak has invested more than US$ 700 million in the
telecom sector in Pakistan and an additional US$ 800 million will be invested till the end of year 2008.
Their Market Shares
According to official figures in July 2008, there were a total of 89m subscribers (89,325,296) in the
mobile industry, Ufone had 18 million (18,368,074) subscribers and was second in market share to
Mobilink, followed closely by Telenor with 18,329,428 subscribers, a difference of just 38,646
subscribers. This difference was 3,312,712 subscribers at the end of 2007. Warid was forth with 15
million (15,774,299) subscribers. Warid has also lost to Telenor in terms of market share since 2006,
when it was third in the industry. In July 2008, Zong had 4 million (4,446,024) subscribers and was fifth
overall. Instaphone had only 351,135 subscribers during this time.
PORTER’S FIVE FORCES MODEL
THREATS OF NEW ENTRANT:
In today’s increasingly competitive world, Mobilink has a great place in Telecom Industry. But they have
a threat from Zong which established almost 5 years back and it launched one of the most successful
and aggressive campaigns and achieved 6% market share.

8. Competitors:
UFONE :
PTCL (100%)
Inception
2005
Technology
GSM-900/1800
Major Shareholder
Telenor (100%)
Inception
2005
Technology
GSM-900/1800
Major Shareholder
Abu Dhabi Group (100%)
Inception
2007
Technology
GSM-900/1800
Major Shareholder
ZONG:
GSM-900/1800
Major Shareholder
WARID :
2001
Technology
TELENOR :
Inception
China Mobile (100%)
Bargaining Power of Supplier:
It might look like telecom equipment suppliers have considerable bargaining power over Telecom
Company. These are enough vendors, arguably to dilute bargaining power
Customer Bargaining Power:
Mobilink has high fixed cost for high initial R & D and minimal incremental cost hence they would like to
keep their sales volume high in order to recover as much fixed cost as possible. Due to all these resons
bargaining power of customer is high in this industry.
Threats of Substitute Product
The existence of close substitute product increase the propensity of customers to switch to alternatives
in response to price. The substitute product of mobilink are given below :
o
o
o
o
o
Bradband
V wireless
Mobilink PCO
Mobi cash
Blackberry

9. PEST ANALYSIS
Political Factors:
The political factors that are affecting the Mobilink’s policies are as follows:
o Political environment of Pakistan is unstable in the current situation.
o Due to instability in Politics, Pakistan is in very critical position due to this foreign trader is not
interested to invest in Pakistan in these circumstances.
o In this year budget, Government imposes heavy taxes on telecommunication sector and they
increase the taxes more than double and now it is 21% on every call.
o Government strict the policies for the new connection and they give punishment to those retailers
who have done the fake sales due to this sale of new connections are declining.
Economical Factors:
Following are the economic factors which are affecting the whole industry:
o As there is instability in politics, economic conditions are also in a very bad condition.
o Inflation rate is going high and high and the value of Rupee is going down and it proves as very
drastic for the economics of country.
o Unemployment rate is going up and up with the increase of level of poverty.
o Marketer should consider long term and short term state of a trading market.
Socio Cultural Factors:
The Socio Cultural Factors which can affect Mobilink’s policies are as follows:
o As Pakistan is an Islamic country and people are very strict in case of Islam anything against the
philosophy of Islam on either print or electronic media are treated as against Pakistan.
o In metropolitan cities women are doing work along with their other responsibilities but other than
metropolitan it is difficult for women to convince their parents and spouses for work.
o Mobilink should targeting upper-end of market mostly published and aired their advertisement in
English language.
o Most of the people dislike anything extra-ordinary or something which sabotage their culture or
sub culture.
o As there are different languages spoken in Pakistan so, Mobilink should give their customer
assistance in all of these languages.
o Mobilink has introduced the Jazz Ladies First package which typically segments the females so;
they should also segment the market on the basis of age.
o As most of the population of Pakistan lies in low income range therefore they should target those
customers and give them cheapest possible package.
o As the lifestyle of people living in big cities are changing so they need more value added services in
their connections.

10. Technological Factors:
Following are the technological factors which company should concern:
o Companies have technology with which they can compete in the Pakistan and now companies are
investing in their infrastructure to not only expand but also to upgrade their existing structure.
o Mobilink is now moving towards WiMax technology through which there will be wireless telephone
and broadband technology.
o Mobilink has shifted its whole network from 900MHz to 1800MHz.
o They are also doing research regarding 3G technology.
o Mobilink is providing largest variety of value added services (VAS) in Pakistan.
In 2007, Ufone still remained second (14,014,044) in terms of mobile subscribers and Telenor third
(10,701,332), followed closely by Warid (10,620,386), which remained forth. Zong was fifth (1,024,563)
and Instaphone sixth (333,081). The total subscribers in 2007 were 63 million (63,159,857).
INTRODUCTION AND HISTORY OF PARENT COMPANY
Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was established in 1998 and has
grown to become a major player in the telecommunication market.
OTH is considered among the largest and most diversified network operators in the Middle East, Africa,
and South Asia, and has acquired in early 2008 a license to operate mobile services in North Korea.
Orascom Telecom is a leading mobile telecommunications company operating in six emerging markets
having a population under license of 430 million with an average penetration of mobile telephony across
all markets of approximately 40%. OTH operates GSM networks in Algeria (Djezzy), Pakistan (Mobilink),
Egypt (Mobinil), Tunisia (Tunisiana), Bangladesh (Banglalink) and Zimbabwe (Telecel Zimbabwe).
In Pakistan, the Pakistan Mobile communications Ltd (“Mobilink”) started its operations in 1994 and,
until early 2001, had a market share of 40%. In April 2001, OTH took over management control of the
company. As the market leader, Mobilink today serves over 35 million subscribers, representing a
market share of 38.5% (as of March 2008).
OTH has positioned itself as a leader in the region for its diverse GSM operations with various GSM
support and Internet operations. One of OTH's main strategies is to create its own non- GSM
subsidiaries to act as a backbone of support for its regional GSM operations.
OTH established a strong presence in the GSM Association (the world's leading wireless industry
representative body) only five years after its inception. OTH's Chairman and CEO, Mr. Naguib Sawiris,
was selected to join the GSM Association's CEO Board in 2002. OTH's stocks are traded on the Cairo and
Alexandria Stock Exchange (CASE), (under the symbol ORTE.CA, ORAT EY) and on the London Stock
Exchange (where its GDR is traded under the symbol ORTEq.L, OTLD LI)

11. Introduction Of Mobilink
Pakistan, the Pakistan Mobile communications Ltd (“Mobilink”) started its operations in 1994. Mobilink
is the market leader and provides the most extensive network coverage across Pakistan through an
integrated technology infrastructure in more than 10,000 cities, town and villages. The head office of
Mobilink located at Blue area, Islamabad. Its branch offices are located in Lahore, Karachi, Faisalabad,
Rahim Yar Khan, Sukkher, Peshawar, Quetta, Swat, Kohat, etc
Mobilink has three main contact centers in three region of Pakistan. As for the customers centers there
are about 2000 to 25000 customer service centre all over the Pakistan. There are about 5000 employees
working in Mobilink on permanent and temporary basis, In other words Mobilink can say….
“WE SPEAK YOUR LANGUAGE …… EVERYWHERE “
Vision of Mobilink
"To be the leading Telecommunication Services Provider in Pakistan by offering innovative
Communication solutions for our Customers while exceeding Shareholder value & Employee
Expectations".
Mission of Mobilink
To be the unmatchable mobile system of communication in Pakistan, providing the best value to its
customer, employees and business partner and shareholder. “

12. Goals and Objectives
To expand the business.
To Provide better service to people in the field of telecommunication.
Retaining as the role of a leading telecommunication company.
Attract maximum customers and satisfy them.
Excel in meeting customer needs.
Seek employee involvement, continuous improvement and enhanced performance
goals.
Values of Mobilink
Total Customer Satisfaction
Customers are at the heart of our success. They have placed their trust and confidence in us. In
return, we strive to anticipate their needs and deliver service, quality and value beyond their
expectations.
Business Excellence
We strive for excellence in all that we do. We aspire to the highest standards and raise the bar for
ourselves every day. This commitment to delivering world-class quality translates into unmatched
service and value for our customers and all stakeholders.
Trust & Integrity
At Mobilink, we take pride in practicing the highest ethical standards in an open and honest
environment, and by honoring our commitments. We take personal responsibility for our actions,
and treat everyone fairly, and with trust and respect.
Respect for People
Our relationships drive our business. We respect and esteem our employees and all stakeholders.
We believe in teamwork, empowerment and honor.
Corporate Social Responsibility
As the market leader, we recognize and fulfill our responsibility towards our country and the
environment we operate in. We contribute to worthy causes and are dedicated to the development
and progress of the society

13. Organizational Structure Of Mobilink
Management Profile

14. President and CEO
Rashid Khan
Chief Strategy Officer
Tariq Rashid
Chief Commercial Officer
Bilal Munir Sheikh
Vice President Customer Care
Irfan Akram
Vice President Corporate Affairs
Agha Qasim
Chief Technical Officer
Ramy Reyad Kamel

15. Vice President Mobile Financial Services
Jahanzeb Taj
Chief Information Officer
Irfan Farooq
Vice President Human Resources & Administration
Sadia Ahmad
Chief Financial Officer
Andis Locmelis
Vice President Marketing
Farid Ahmed
Company Analysis
Operation Analysis

16. 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. Before that, all previous operations were using the AMPS technology. Since then Mobilink has
been growing its network, providing 2G, 2.5G, GPRS and EDGE compatibility. Mobilink was the first
operator to start rolling out the Enhanced Data Rates for Global Evolution (”EDGE”) in Pakistan. In
addition, Mobilink also launched its BlackBerry service in December 2005 through its GPRS platform.
Furthermore, Mobilink’s license was renewed on July 6th, 2007 for a further period of 15 years.
Mobilink is committed in providing the best network to their customers, 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, 2007.
Not only is Mobilink’s network very modern and technologically advance, but it is also very competitive,
when compared to other mobile networks.
DIVISIONS OF MOBILINK
Organizational structure of Mobilink is geographically divided into three Divisions North,
South, and Central. Each division is further divided into Business Units that are as follows
o North is divided into North I (Islamabad and Surroundings) & North II (Peshawar,
FATA)
o
Central into Central I, II, III & IV (Consist of Lahore, Faisalabad, Multan & Gujranwala Regions)
o South into South I & II (Karachi, Hyderabad and Queta
Operational Departments
Mobilink is headed by President and CEO Zouhair A. Khaliq, who reports directly to the Chairman and
CEO of Orascom Telecom Naguib Sawiris. Furthermore the operations of Mobilink are divided into eight
different departments, which are as follows:
1. Human Resource
2. Administration and Security
3. Sales
4. Marketing
5. Customer Services
6. Corporate Affairs
7. Technical

17. 8. Finance
Furthermore, these departments are further divided into sub departments to ease operations within
Mobilink. Also all major decisions are taken centrally, in Islamabad. These decisions for example include,
the financing required by Mobilink (local and foreign), decisions regarding import of goods etc.
Subscribers and Market Share
Mobilink had a great advantage for years as being the only GSM mobile operator in
Pakistan, however with the entrance of Ufone in 2001 and later on by Telenor, Warid and
Zong, the competition in the mobile sector is heating up. However the subscriber base
Mobilink has remained steady and growing as seen in the table below:
Table 2: Number of Mobilink Subscribers from 2005-July 2008
Year
2005
2006
2007
July-2008
Subscribers
7,469,085
17,205,555
26,466,451
32,056,336
% Change
-
130.3
53.8
21.1
Although the number of subscribers has increased over the years, the same cannot be said
about the market share of Mobilink, which has gradually decreased over the year. However,
although the market shares of Mobilink might have decreased over the years, but it still
remains the market leader in the mobile sector. The market shares of Mobilink are as
follows:
Table 3: Market Shares of Mobilink from 2005-2007
Years
2005
2006
2007
Market Share
51.4%
46.3%
39.8%
Change
-
(5.1%)
(6.5%)
Marketing Analysis
In today’s contemporary business world, marketing plays an important role. Mobilink that has a number
of competitors in the mobile industry, need to use their marketing plan and strategies effectively to
attract customer loyalty.
The marketing department at Mobilink anticipates, and satisfies the customer’s communication needs.
This includes consumer behavior research and translating this research into services and pricing plans.
The Marketing team also helps in identifying new business opportunities and develops plans to exploit
those profitably. It also designs and implements brand strategies and communication plans.
The major ways in which Mobilink markets itself and its products are through the following ways:
o Electronic
o Print

18. PRODUCTS Of MOBILINK
Mobilink Product Lines
Mainly there are four product lines of Mobilink with each having separate target markets
and positioning.
· Mobilink Indigo
· Mobilink Jazz
· Mobilink World
· Mobilink PCO
MOBILINK INDIGO
Mobilink re-launched its postpaid services on the 11th of May, 2004 under the brand name,
Indigo. Indigo ignited an evolution in the communication industry redefining the essence of
the post-paid services in Pakistan. The brand delicately caters to the need of its customers,
symbolizing the vision of connecting the subscribers in every aspect of life. Indigo says:
“In life you come across some exceptional people, who, like you, appreciate only the
finer things in life. When it comes to creating a bond and staying connected to them
count on Indigo for its unrivalled premium post – paid connectivity to get you
through”.
Indigo Offerings
Indigo
BlackBerry
Citi Mobilink Credit Card
Call& Control
Indigo Reward
Indigo Genie
Target Market
Indigo targets the upper business class that is not concerned with the cost but want
convenience, quality and a brand image that suits their personality. Who doesn’t want fun
or music but want a brand that is “Competent” and Indigo is well satisfying the desires of its
corporate customers. Introducing Blackberry connect through which businessmen can take

19. their office anywhere, share attachments etc. That is why Indigo customers are loyal to the
brand and hesitate to switch to other connections. It can be said that Indigo enjoys the
benefits of a monopoly in the corporate sector.
Mobilink Jazz
Jazz is an exciting and energetic offering of Mobilink, targeting specifically those
enthusiastic teenagers, middle class and the youth market of the country, wishing to enjoy
freedom, fun, lower rates and a package that matches their personality.
Jazz Offerings
o
o
o
o
o
o
o
Jazz Budget
Jazz Octane
Jazz Ladies first
Jazz Easy
Jazz Share
Jazz Load
Jazz Advance
Mobilink World
Mobilink World is the Value Added Services Brand for Mobilink. These services are not just
fun, but also help its customers with their business needs. Whether it's a Bolo SMS they
want to send to a friend or a ring tone they want to download to customize their phone
with, Mobilink World has something special for them.
Mobilink World Offerings
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Mobi Safe
Holy Sayings
Corporate SMS
Mobi Greetings

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SMS Scheduler
SMS Game Time
Bolo SMS
Mobitunes
G:i:30
WAP Portal
Mobilink Edge
Mind Reader
CricVideo
International SMS Chat
Ring Tone Club
Target Market
Mobilink World is the Value Added Services Brand for Mobilink and its target market is its
whole customer base:
“Mobilink World services are not just fun, but also help you with your business needs.
Whether it's a Bolo SMS you want to send to a friend or ring tone you want to
download to customize your phone with, Mobilink World has something special just
for you.”
Mobilink PCO
For the first time ever Mobilink has brought Mobilink PCO, a revolution in its own right that
shall surely set apace the way its consumers communicate at the grass root level. Mobilink
PCO is a fixed wireless phone that has special PCO functions capability. It consists of two
LCD's that helps customers to keep a tap on the duration and the costing of the calls they
make.
This latest venture from Mobilink is aimed at bringing prosperity and happiness for all the
people throughout Pakistan. It's a complete self-employment solution for the people of
Pakistan, fulfilling their dreams and aspirations.
Mobilink PCO does not only give its consumers higher returns on a very low investment but
it also creates a world of better prospects in terms of a consistent source of income for
them.
Mobilink PCO claims
“Wherever you are, throughout Pakistan whether the remotest deserts of Sindh or the
spectacular peaks up north expect unparallel coverage from your Mobilink PCO”

21. With this unit customers experience even higher returns even though the investment in
terms of capital is very minimal. Mobilink PCO no doubt is a world of opportunities within
itself.
· Exceptional coverage and the ease of its wireless technology-carry it wherever you wish
· Load the free jazz card provided and embark on a successful business venture right away
· Benefits from after sales services
BCG Growth Rate Matrix
STAR.
CASH COW.
?
DOG
High Low
High
Mobilink
Market
Growth
Rate
Low
Mobilink Market Share

22. Mobilink claims all its products as Star with the highest Market Growth Rate and highest Market
Share,
SWOT ANALYSIS
Strengths:
Following are the vital strengths of Mobilink:
o Market Leader in the Telecommunication industry with 41% market share.
o Mobilink is pioneer of GSM technology in Pakistan.
o Mobilink has largest network coverage in Pakistan and covering 9000+ cities, villages and towns.
o International roaming in over 120 countries with more than 300 partners operator worldwide.
o Mobilink is at more competitive on experience curve.
o Having strong brand equity across the country.
o Premium brand image and Exclusive Black Berry Services.
o Highly skilled, energetic and motivated professionals.
o The working environment is very good.
o The environment is vey conducive.
o Only Mobilink has JSA technology through this retailers can verify the customer’s NIC from NADRA.
o Mobilink has good competitive processes and procedure of operations.
o Helpline in different languages.
o Mobilink PCO.
o Unmatched Value Added Services.
o 57 Million Minutes per day.
o 91% of the companies in KSE 100 Index are powered by Mobilink Indigo.
o City Mobilink Credit Card.
o Security system is very good there are separate security department for this purpose.
o Mobilink fulfill the Corporate Social responsibilities
Weaknesses:
Following are the weaknesses of Mobilink:
o Mobilink is expensive in comparison to other networks.
o Network problem and voice quality is still a big issue.
o There is lack of interdepartmental communication.
o Billing mistakes in indigo bills is common.
o Mostly process are not efficient in the routine jobs.
o There is no proper software available for Inventory system.

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Instead of using powerful tools of database they are still using flat file system and MS-Access with
some extent.
Although there is conducive environment but there is still a yes boss culture up to some extent.
Here TC matters a lot.
Fewer Advertisements now a day.
Opportunities:
Mobilink has the following opportunities:
o They have an opportunity to provide different value added services like e-banking, online
transactions, money transfer and stock exchange.
o By focusing on quality they can position their product on the basis of high quality product.
o Mobilink is offering new services such as WiMax.
o By revising their pre paid packages by lowering the prices of SMS and other networks they can
increase the retention of customers.
o They are opportunity to provide the facility of internet connectivity to your laptop or pc through
Sim.
o Being a market leader they can make head to head competition to their competitors and to make
them out of market.
o By organizing events for some social causes they can improve the image of company.
o Mobilink can increase its market share by entering new market segments.
o Mobilink has an opportunity to add further products to its existing product line.
Threats:
The factors which can be threatened to Mobilink are as follows:
o Due to increasing demand of HR in telecommunication sector Mobilink’s employees are switching
towards their competitors.
o By the expansion of network in that place where there is no network coverage of Mobilink, Telenor
is getting the advantage of increasing subscribers in that market.
o Telenor have packages like djuice and talk shawk in prepaid connection have threatened the Jazz
Octane and Jazz prepaid by their exciting offers.
o Due to the arrival of Zong most of the Mobilink’s customers are switching toward it due to their
exiting packages.
o Wateen has installed brand new technology WiMax and though this they get USP while Mobilink is
now thinking about that technology.
o Due to intense competition Mobilink is losing its market share.
o Telenor has introduced H-Stick through which by inserting the Sim in that device you can connect
through internet at your laptop or PC.
o Political and economical instability and terrorism in the country.

24. Suggestions and Recommendations
Following are some suggestion for the organization that should be adapt by the organization.
Establish Research and Development Department.
Ensure Network quality.
Focus on subscriber retention.
Better customer incentive plan.
Training on regular basis in order to keep employees up to date and motivated.
Innovation in technology.
Lower SMS rates to other networks.
Drastic revision in indigo tariff specifically in terms of prices.
To cover all of those sites where other operators have coverage while Mobilink doesn’t.
To provide more training programs for technical employees.
Improvement in Customer Services.
Employee retention plans needs to be more efficient.
Should introduce new brands.
Appendix
Web Resources
·Wikipedia (wikipedia.com)
Articles used:
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Mobilink
Ufone
Telenor Pakistan
Warid Telecom (Pakistan)
Paktel
China Mobile (Pakistan)
Mobilink (mobilinkgsm.com)
Pakistan Telecommunication Authority (pta.gov.pk)
Ufone (ufone.com)
Telenor (telenor.com.pk)
Warid (waridtel.com)
Zong (zong.com.pk)
Orascom Telecom (otelecom.com)
The News (thenews.com.pk)
Reports
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Orascom Telecom Annual Report 2007

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Orascom Telecom Annual Report 2006
Mobilink’s Balance Sheet and Income Statements