Mobilink, a leading telecom provider in Pakistan, has over 32 million subscribers and is a subsidiary of Orascom Telecom, which operates across multiple emerging markets. The document outlines Mobilink's mission, challenges such as economic downturns and infrastructure damages from floods, and strategic opportunities for growth including mergers and adopting new technologies. Recommendations focus on improving service, reducing costs, and leveraging partnerships to enhance market position amid intense competition.

1. LIVE CASE ANALYSIS Group Members: Hiba Ali 039.05 Noor ul ain Adnan 118.06 Faiza Gillani 058.07 Mumtaz Zulfiqar 305.07

2. Welcome to Mobilink

3. Case Summary Mobilink Introduction Orascom Introduction VimpelCom Telecom and Weather Investment Partnership Mission, Vision and Organizational Chart Pakistan Telecom Industry Mobilink Divisions and Services Internal Factors and Departments Industry and Competitors Mobilink Issues Highlighted Future Outlook Analysis Revised Mission, Vision & Organizational Chart Matrixes Conclusion and Recommendations

4. Mobilink, a subsidiary of the Orascom Telecom Holding Pakistan’s leading cellular and Blackberry service provider. Mobilink currently has more than 32.203 million subscribers Market Share 32.47% Mobilink employee strength of 4,500 Mobilink coverage 10,000+ cities and towns nationwide as well as over 140 countries on international roaming service

5. Orascom Telecom Holding S.A.E. (OTH) is part of the Orascom group of companies started in 1976 Orascom Telecom Holding S.A.E. (OTH) was established in 1998 OTH had exceeded 99.1 million subscribers as of August 2010 OT H has more than 15,000 employees. OTH is considered among the largest and most diversified network operators in the Middle East, Africa, and South Asia Orascom Telecom operating in 6 emerging markets OTH is having a population under license of 430 million & average penetration of mobile telephony across all markets of approximately 40%

7. Weather Investments S.p.A. (Weather), a major share holder 51.7% of ‘Orascom Telecom’ has joined hands with VimpelCom Ltd, a Russia based company This partnership led to 20.0% economic interest and an 18.5% voting interest in the enlarged VimpelCom group VimpelCom VimpelCom Ltd. group is headquartered in Amsterdam VimpelCom Ltd. has operations in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Georgia, Armenia, Kyrgyzstan, Vietnam and Cambodia Weather Investment Weather is owned 72.65% by Weather Investments II S.a.r.l. (which is itself owned by the Sawiris family) and the balance by certain financial investors

8. These figures are based as of end- February 2010. Rank Company Name Subscribers 1 China Mobile 522 M 2 Vodafone Group 333 M 3 Telefonica 202 M 4 AmericaMovil 201 M 5 Telenor Group 172 M 6 Deutsche Telecom 151 M 7 China Unicom 148 M 8 TeliaSonera 148 M 9 France Telecom 133 M 10 Bharti Airtel 125 M 11 MTN Group 116M 12 Mobile Telesystems 102 M 13 Reliance Communications 100 M 14 Orascom Telecom 99 M 15 AT&T 85 M

9. Mobilink’s Mission Statement “ To be the unmatchable mobile system of communications in Pakistan, providing the best value to its customers, employees, business partners and share holders” Mobilink's Vision “ To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations”

11. Economic downfall globally thus telecom industry is a prey Minimum revenue decrease in the Southern region Worldwide the industry is under recession thus going through the mergers and acquisitions Expansion is rare and telecom industry is into cost cutting cycle Telecom sector is vital to economy Economic crises and high inflation in Pakistan the growth is negative

12. Increasing concern for Security in Pakistan Regulatory Authorities Governmental Trade Policies The telecommunication industry of Pakistan suffered broad and deep damages to infrastructure due to the floods of 2010 current damage Rs.4.148 million, just from cellular operators

20. MINOR ISSUES All divisions of Mobilink, specially Northern and Central Divisions suffered damages to infrastructure due to the floods in 2010. The merger of Mobilink and LinkDot.Net was recent major project for PM department. The issue of identical IDs for employee is current faced in the company many of Mobilink employees and LinkDot.Net employees have similar name hence same IDs, this is creating a confusion for the ID recognition software. Customer care service at night time from Karachi was shifted to Lahore and Islamabad. Due to Sindhi callers, the call centre based in Islamabad and Lahore couldn’t handle the calls due to the communication barriers. Thus, call centre was again shifted to Karachi which handled all the Sindhi callers. Rests of the callers were handled by the call centre in Lahore and Islamabad. Mismanagement due to extensive network within the country which is resulting in poorer coverage. Previously major portion of budget was for engineering and IT department but now more budgets are being allocated to sales and marketing department.

21. The Finance and Accounting Department faced issue of capital acquisition, being private limited company Mobilink has to go for debt financing and current high interest rates due to economic downturn. Mobilink heavily invests in training their employees though with the recent cost cutting strategy there is severe cut on the employee training budget. The launch of SIEBAL initially worked well later software couldn’t connect with dial-up connection. Therefore the franchises in small towns and villages couldn’t connect to it. The Mobilink management has to think of how to direct a company into more customer oriented operation, how to operate the company on sound economic principles and how to streamline the company’s image by issuing a communication strategy to support the business strategy of One Company – One Profile. Mobilink is looking for ways to organize and manage the company to comply with the high quality of services demanded by the customer.

22. Mobilink’s Revised Vision Same as original Mobilink’s Mission Statement Evaluation Customers Yes ‘ providing best value to its customer’ Products or Services Yes ‘ mobile system of communications’ Markets Yes ‘ in Pakistan’ Technology No - Concern for Survival, Growth and Profitability No - Philosophy Yes ‘ providing best value’ Self – Concept Yes ‘ unmatchable’ Concern for Public Image No - Concern for Employees Yes ‘ providing bets value to its employees’

23. Mobilink’s Revised Mission Statements We anticipate consumer need and deliver outstanding products and services that improve people's lives Delighting customers with a wide range of products and services in the communication industry with the best people and improved quality via virtual and innovative technology through providing growth opportunity We are dedicated to provide the highest possible level of value to our customers, employees, community and investors Mobilink being friend of nature is working toward creating a prosperous society and tidy world Contribute to meet global standards at competitive price and committed to act in highest ethical manner with the rights and dignity of others

25. WEAKNESSES STRENGTHS THREATS OPPORTUNITIES

26. Largest Market Share & Highest number of Subscriber in Pakistan Blackberry usage soars Strong Brand Image, Indigo leading Postpaid brand and Mobilink Jazz singular pioneer pre-paid brand; & sweep two super brands award 2009 & Pioneers with GSM Technology Wide Network Coverage of 10,000 cities in Pakistan and over 100 countries with International Roaming Engineering and Technological stability at Mobilink along with competent employees Current ratio of company to meet its obligations improved in 2009 to 1.18 from 0.93 Concern for society and adapt to work environment needs; active CSR and only cellular operator to be awarded 6th Environmental Excellence Award by NFEH

27. ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center First mobile operator in Pakistan to offer extensive GPRS Roaming and BlackBerry Roaming services & Best extensive Network Infrastructure; optical network and satellite links Exponential growth in Revenue in first 3 quarter of 2010 Only cellular service in Pakistan to provide coverage on the M2 motorway and implementation of full intelligence network (IN) platform from Siemens for the prepaid platform Mobilink's Short Message Service Center allows Vehicle Tracking and Fleet Management services Largest Call Center in Pakistan, which is there to assist the customers 24 hours

28. Total Assets Turnover and Fixed Assets Turnover had been low for 3yrs, in 2009 TAT & FAT is 0.09 and 0.22 respectively In 2009, Mobilink ranked in top 100 telecom companies worldwide - 3rd among the 'Brands punching above their weights' ahead of Airtel, Tata Indicom and Reliance Continuous and latest employee training approaches Effective and Rapid Communication within Management Partnership with MCB to offer all banking services to Mobilink customers via their handsets

29. Service issues with customers - average to below average service Mismanagement due to large network Huge Expenses incurred, high cost of material and other expenses High Tariffs as compared to competitors & expensive service quality both call rates and sms Call Blockage service still not offered Sort of bureaucratic style of Management; biasness by intermediate bosses ARPU for pre-paid declined from 1.8 to 1.6 but for post-paid inclined to 1.3 from 1.2 Customer Retention

30. Promotional Packages Sponsorships for local and International events Changing Marketing Mix Investment and Development Opportunities Improved Customer Service and Value Added Services Economic Influx both globally and locally Global Telecom Industry growth is predicted, both supply push and demand pull, pursuit of expansion Adoption New Technology; Mobile Wallet and Gift Cards Merger with VimpelCom; Opportunity to be Global 5th Largest Telecom Company

31. Adopting to MVNO and MVNE services Local handset manufacturing Adoption to UTMS- 3G technology up coming in Pak Exchange Rate Fluctuation

32. Intense Competition – Telenor, Ufone, Warid & Zong Inconsistent and Adhoc Regulatory Environment and Adverse Trade Policies of Pakistan Market Saturation of subscribers Political Instability and Security Concern Increasing maintenance cost Skilled labor attracted to competitors via better benefits High Tax Rates Price war between brands in telecom industry Natural Disaster; like the recent flood caused huge losses and the previous earthquake

33. Low Priced promotional packages (O1,O3,S1,S4&S9) Improve Service and gain Market Share via Adopting MVNO, MVNE & UTMS technology (O1,O5,010,O12,S4,S5,S8&S10) More Sponsorships in games other than cricket and football (O2,O3 & S3) Partnering with Corporate Clients (S1,S2,S18,O3&O5) Effective & Efficient distribution Channel (S1,S3,S4,S5,O3&O4) Increased Celebrity Endorsement (O3 & S3)

34. Construct layers of target market for better service quality and gaining lost customers and retaining the existing, like corporate segment, middle segment and lower segment (W1,W7,W8,O1&O5) Employee Benefit programs and non-financial benefits like 'Employee of the Month' (W10 & O4,O13) Backward Integration over their infrastructure vendors and suppliers to reduce cost and expenses (W3,O4) Offering services like competitors such as Call Block Service (W5,O3&O4) Customer Representative (W1,W8&O3) Gain competitive advantage via increasing service speed and response time to customer (W1,W7,W8,O3&O8)

35. Merger with VimpleCom means Mobilink - Telenor Merger (S1,S3,S4,S5&T1) Infrastructure Disaster Sustainable (S4,S5,S8&T9) Following differentiation strategy via product innovation and development (S1,S3,S4&T8) Acquisition of Warid Telecom in Jan 2011 (S1,S3,S4,S5,S8&T1)

36. Segmentation of network and coverage in order to improve service (W2,W8&T1)

38. IFE weighted score – 3.13 EFE weighted score – 3.25 CPM Mobilink – 3.44 Telenor – 3.36 Ufone – 2.81

43. Strategy 1 “ Improve Service and gain Market Share via Adopting MVNO, MVNE & UTMS technology” Strategy 2 “ Backward Integration over their infrastructure vendors and suppliers to reduce cost and expenses”

44. Continuous decline in market share and subscriber base in last 3-4years Company's financial conditions are good even in economic down turn yet have been incurring huge expenses The Strategies Mobilink should focus on are: Adopting Innovative Technology; mobile wallet and gift cards– Product Development and Mobilizing the brand Global Expansion in Emerging Markets – Market Development Concentrate on providing better and reliable service – Market Penetration Concentrate on consumer retention and gaining market share – Market and Product Development & Penetration Backward Integration over venders for reduction in infrastructure maintenance cost and other expenses

45. Earlier 2010, Orascom had talks with MTN for mergers and acquisitions too – failed due to some other than Mobilink subsidiaries The company is trying to maintain an iconic status of its brands but it is either going to be Mobilink- Telenor merger or something better for the telecom industry Pakistan Mobilink is also to takeover Warid in January 2011 It is now more a Pakistan’s telecom sector future than only two major companies merger in Pakistan