Serial Number
CONTENTS
1
List of illustrations
Page 1
2
Synopsis
Page 2
3
Introduction
Page 3
Acknowledgement, Sources and Methods 4
Mobilink
Page 4
5
Research Design and Results
Page 6
6
Mobilink Versus Ufone
Page 17
7
SWOT Analysis (Mobilink) Strength Weaknesses Opportunities Threats
Page 18
8
Recommendations
Page 20
9
Conclusion
Page 20
10
Summary
Page 21
11
Appendix
Page 22
Prepaid Tariffs Questionnaire
12
Sources
Page 26
13
Glossary
Page 27
14
Index
Page 28
Serial Number
LIST OF ILLUSTARTIONS
1
Market share (Figure 1)
Page 4
2
Subscribers (table 1.1)
Page 5
3
Which mobile connection do you use(Figure 2)
Page 6
4
Which mobile connection do you think is the best(Figure3)
Page 7
5
Why is the Connection you choused is the best. (Figure 4)
Page 8
6
Suggestions For Mobilink (Figure 5)
Page 9
7
Suggestions For Ufone (Figure 6)
Page 10
8
Suggestions For Paktel (Figure 7)
Page 11
9
Suggestions For Insta (Figure 8)
Page 12
10
Suggestions For Warid (Figure 9)
Page 13
11
Suggestions For Telenor (Figure 10)
Page 14
12
Should other networks be allowed to start their business in Page 15 Pakistan (Figure 11)
13
Peak call rates (Figure 12)
Page 16
14
Off-Peak Call rates (Figure 13)
Page 16
15
BCG Matrix (Figure 14)
Page 19
16
Life Cycle (Figure 15)
Page 19
2
Synopsis In this report I will discuss the best mobile network company of Pakistan. According to my research findings and the survey I conducted the best company is Mobilink. First of all I will mention the research design and then the people who provided me the information. After that I will concentrate on the reasons that why Mobilink is the best and discuss what services and packages Mobilink is offering. Then the research design and results will be Explained and discussed in detail. 10 questions from the questionnaire are added in the report with proper tables and graphs. Then With the help of graphs call rates offered by different networks will be discussed. As Ufone is the only strong competitor to Mobilink the positive points of both Mobilink and Ufone will be mentioned. You will also find SWOT analysis, in which Mobilink will be analyzed.. You will also find BCG matrix and Life Cycle Figure which shows Mobilink is on the top. At the end Recommendations and conclusion will be given. Recommendations will be for both Mobilink and other networks. That how can Mobilink improve their services further and the strategies other network should adopt to reach the standard of Mobilink. Questionnaire will also be attached at the end. This Questionnaire carries the questions which were asked during the interviews.
3
Best Mobile Network in Pakistan
Introduction There are different mobile networks in Pakistan. According to my research findings and the survey I conducted the best company is Mobilink GSM. Mobilink started their operations in the year 1994, this is an international company. I was authorized by Pakistan Telecommunication Authority to write a report on the best mobile network company of Pakistan. I have also Mention some recommendation which can help Mobilink to improve further and other companies can also achieve the same level of Mobilink. All these Recommendations are part of the survey I conducted of 200 people. This includes Doctors, Friends, Family and my collegues. The scope of my report is that PTA will be informed that why Mobilink is the best and they will advise the same strategies to the other networks. Acknowledgement, Sources and Methods In my research I conducted a detail survey and interviews. I visited different Network offices to collect information. The survey I did followed the quota sampling. I was told to interview 200 people. I am very thankful to the following people who helped me providing information about different networks. • • • • • •
Mr. Amir Zeb (Ufone) Mr. Khizer Ilyas (Telenor) Mr. Yaseen Adeel (Mobilink) Mr. Fayaz (Warid) Mr. Shafiq Anjum (Paktel) Mr. Arif Durrani (Paktel)
Besides the survey the research was also carried out on internet and different sites were explored. In this report first different things about Mobilink has been discussed then the research work, which is followed by conclusion and finally the recommendations. Different visuals and tables are been shown to give a clear idea. The visuals added Includes the Survey Questions and their result.
4
Mobilink According to my research findings and the survey I conducted Mobilink is the best mobile network company in Pakistan. Mobilink was the first GSM Company and started its operations in 1994. Customers of Mobilink are more then 14 million, Mobilink provides services in more then 750 cities and villages and it is only cellular service in Pakistan to provide coverage on the M2 motorway. Mobilink Vision is “To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations”. There are more then 20 million users of mobile networks and Mobilink has the highest rate of customers. Its market share is about 51.4%, which is shown in the Figure1, which also includes the market share of different mobile companies.
Market Share (Figure 1) 9.62
3.61
11.02 51.4 22.7 Mobilink
Telenor
Warid
Ufone
Zong
If we go through the Chart we can see Mobilink’s market share is 51 % which is the highest among the other companies. So this shows that Mobilink is ahead of the other companies, Ufone has about 22.7% of market share which makes them the runners up, other companies except Insta are new to the market so their market share is increasing. Insta is basically AIMS technology, and nowadays AIMS market is going down so Insta is basically on declining stage. However Insta is involve in niche marketing. There are about 5 GSM companies in Pakistan, because of which competition has increase, which is basically in favor of the customers. So the customers have different options to select, as different companies are coming up with different attractive packages. Because of cut throat competition the companies can not make abnormal profit. Now in last few years a great change has come up in the Mobile network sector, Customers are increasing day by day because of which different companies are trying different strategies to attract more
5
customers, the table 1.1 shows the increase in customers and the total subscribers of different networks.
Subscribers Mobilink
Ufone
Total
Growth Rate
112,000
306,493
15.39 142.29
Paktel
Instsphone Telenor
80,221
Warid
2000
114,272
2001
309,272
116,711
96,623
220,000
742,606
2002
800,000
350,000
218,536
330,000
1,698,536 128.73
2003
1,115,000
550,000
319,400
420,000
2,404,400 41.56
2004
3,215,989 801,160
470,021
535,738
5,022,908 108.90
2005
7,469,085 2,579,103 924,486
454,147
835,727
Nov-05
10,352,616 4,430,000 992,051
422,101
1,613,062 1,804,068 19,613,898 6.60
Dec-05
11,119,196 5,178,764 981,849 419,778
1,871,533 2,065,879 21,636,999 10.31
Jan-06
11,898,460 5,489,076 958,496
408,226
2,096,828 2,294,311 23,145,397 6.97
Feb-06
12,990,643 5,750,516 954,933
396,756
2,332,117 2,578,043 25,003,008 8.02
March-06
14,067,919 6,231,461 1,004,686 392,517
508,655
12,771,203 154.26
2,632,415 3,015,941 27,344,939 9.4
TABLE 1.1 (www.pta.gov.pk) In the table we can see that the highest numbers of subscribers are with Mobilink which makes them the market leader. In 2005 the growth rate is 154.26 that are because of the new companies coming in competition. The table clearly shows that people are more satisfied by the service provided by Mobilink. The company has offered different packages which are covering every class. The different packages offers are • Jazz • Indigo • World • BlackBerry These are different packages which includes post paid and pre paid. Mobilink also offers different packages such as BlackBerry for business man, so that they can easily control their business from anywhere in Pakistan. In value added services they are offering GPRS, WEB-SMS chat and power Tools. Power Tools includes news, tones, pictures etc. Now recently Mobilink International Roaming has launched GPRS Roaming for its subscribers visiting the United Kingdom. They are the first company to start its operations in Muzaffarabad in Azad Kashmir, after the earthquake. The company has got ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center Implementation of a full Intelligent Network (IN) platform from Siemens for the Prepaid platform. Mobilink provides roaming service in more then 100 countries. Their SMS center also provides help to track the vehicles, this services is provided by Tracker (Pvt.) Ltd. It is the only company which has four network codes they are 0300, 0301,0302 and 0306.They have about 14 Switches and more than 2,500 cell sites. Their connections are available all over Pakistan; they have their
6
franchises in different cities to address their customer complaints. For their Customers they have also launched a website (www.mobilinkgsm.com) .This Website has all the info about Mobilink.. The main attraction of the website is the free SMS service to any Mobilink number.
Research Design and Results In my research I conducted a survey, some interviews and Internet search. In my survey I visited different network providers’ offices and collected some information regarding their company. I conducted about 200 Questionnaire Interviews from different people which included friends, family, Doctors and colleagues. Now I will discuss some of the important questions I asked in my survey. Q-1:- Which Mobile Connection Do You Use?
Mobilink
Ufone
Warid
Telenor
Paktel
Insta
107
50
21
20
3
1
Survey result for the users of different networks
120 100 80 Users 60 40 20 0
107
50 21
20 3
Mobilink
Ufone
Warid
Telenor
Paktel
1 Insta
Mobile Connections
Figure 2
The Result of this question clearly shows that Mobilink has the highest Rate of customers, which is followed by Ufone. In 200 people survey, 107 people adopted Mobilink which shows that they have the largest market share.
7
Q-2:-Which Mobile network do you think is the best?
Mobilink
Ufone
Warid
Telenor
Paktel
Insta
102
48
24
25
0
1
Best Mobile Network According to Survey 120 100
102
80 Users
60
48
40
24
20 0
25 0
Mobilink
Ufone
Warid
Telenor
Paktel
1 Insta
Mobile Networks
Figure 3
According to the Survey the best mobile network is Mobilink. 102 people have said Mobilink out of 200 which prove them the best in the market.
8
Q-3:- Why is the Connection you choused is best?
Mobilink
Ufone
Warid
Telenor
Paktel
Insta
Good service
57
25
7
12
0
1
Low call rates
11
19
14
11
0
0
Wide coverage
32
4
2
2
0
0
Other
2
0
1
0
0
0
Why is the connection you choused is best 60 50 40 Users 30
Good service Low call rates Wide coverage Other
20 10 0
Mobilink Ufone
Warid Telenor Paktel
Insta
Mobile connection
Figure 4
9
Most of the People who choused Mobilink think that Mobilink is best because of their good service and wide coverage. And people also choused Ufone because of their low call rates and good service. Q-4:- Your Suggestions for Mobilink to be the best in the market?
Mobilink Improve their service
Bring their Call rates down
Enhance their coverage
Other
61
123
11
5
Suggestions for Mobilink 140 120 100 Users 80 60 40 20 0
123 61 11 Improve Bring their Enhance their service Call rates their down coverage
5 Other
Suggestions
Figure 5
In this question 123 people suggested that Mobilink should bring their call rates down and 61 suggested that they should improve their service then they can be the best in the market.
10
Q-5:- Your Suggestions for Ufone to be the best in the market?
Ufone Improve their service
Bring their Call rates down
Enhance their coverage
Other
116
53
26
5
Suggestions for Ufone 120 100 80 Users 60 40 20 0
116 53 26 5 Improve Bring their Enhance their service Call rates their down coverage
Other
Suggestio9n
Figure 6
In this Question 116 People Suggested that Ufone should improve their service and 53 said that they should bring their call rates down to be the best in the market.
11
Q-6:- Your Suggestions for Paktel to be the best in the market?
Paktel Improve their service
Bring their Call rates down
Enhance their coverage
Other
109
44
40
7
Suggestions for Paktel 120 100 80 Users 60 40 20 0
109
44
40 7
Improve their Bring their service Call rates down
Enhance their coverage
Other
Suggestions
Figure 7
In this question 109 People said that Paktel should improve their service and 44 people said that they should bring their call rates down to be the best in the market. 12
Q-7:- Your Suggestions for Insta to be the best in the market?
Insta Improve their service
Bring their Call rates down
Enhance their coverage
Other
131
31
24
14
Suggestions for Insta 140 120 100 80 Users 60 40 20 0
131
31 Improve their Bring their service Call rates down
24 Enhance their coverage
14 Other
Suggestions
Figure 8
13
As Insta is the only AIMS Company in Pakistan, about 131 people suggested that they should improve their service and 31 said that they should bring their call rates down to be the best in the market. Q-8:- Your Suggestions for Warid to be the best in the market?
Warid Improve their service
Bring their Call rates down
Enhance their coverage
Other
77
47
73
3
Suggestions for Warid 80 60 Users 40 20 0
77
73 47 3
Improve Bring their Enhance their Call rates their service down coverage
Other
Suggestions
Figure 9 As Warid is a new company about 77 people suggested that they should improve their service and 73 suggested that they should enhance their coverage to be the best in the market.
14
Q-9:- Your Suggestions for Telenor to be the best in the market?
Telenor Improve their service
Bring their Call rates down
Enhance their coverage
Other
69
67
57
7
Suggestions for Telenor 70 60 50 Users 40 30 20 10 0
69
67
57
7 Improve Bring their Enhance their Call rates their service down coverage
Other
Suggestions
Figure 10
For Telenor about 69 people suggested that they should improve their service and 67 people suggested that they should bring their call rates down to be the best in the market.
15
Q-10:-Should other networks be allowed to start their business in Pakistan?
70Yes
No
195
15
Should other networks be allowed to opperate in pakistan 195 200 150 Users 100 50 0
15 Yes
No
Figure 11
In this question about 195 people said that new companies should be allowed to start their business in Pakistan because that will increase the competition and the services will improve.
16
Information About call rates In Figure 3, 4 and Table 1.3 the call charges are mentioned in detail. If you go through the table, the cheapest rate offered is by Warid when you call on the same network (Warid to Warid Calls are charged on 30 second duration). As Warid is comparatively new company so their network coverage is not available in most of the cities, but their service is good and in future Warid can give some tough competition to Mobilink. After that if we look at the calls to other networks and landline, Ufone is offering minimum rate (Peak). They are just offering 2.88 Rupees per minute. The problem with Ufone is that they cut 0.50 rupees on balance check and their scratch cards are just available in the range of 250 to 1000 Rupees, in which if you recharge your number by purchasing 250 Rupees card it will only work for 6 months. Then in Off-Peak rates Paktel is offering minimum rates, But Paktel is facing Service problem, and they don’t have their coverage in most of the cities. Mobilink rates are bit high because their service offered is the best available. But as the competition is increasing Mobilink will bring their charges down. Mobilink offers scratch cards in range of 100 to 2000 and all of them are valid for 1 year Peak CALL rates 25 20 Same network
15
Other networks
10
Fixed line International
5 0
Mobilink
Paktel
Warid
Figure 12 Off-Peak CALL rates 25 20 Same network
15
Other networks
10
Fixed line
5
International
0 Mobilink
Ufone
Paktel
Telenor
Warid
Insta
Figure 13
17
Mobilink Versus Ufone The only strong competitor for Mobilink is Ufone. Below are the different plus points of both the companies.
Mobilink
Ufone
Covering more then 400 cities
Covering more then 325 cities
More then 10 million customers
More then 4.5 million customers
Roaming facility in more then 100 countries
Roaming facility in more then 70 cities
Market leader
Lowest call and SMS rates
Mobilink market share is more then 52%
Ufone Market share is more then 22%
Three network codes 0300, 0301,0302 and 0306
Two network code 0333,0332
Offering both packages
Prepaid
and
Postpaid
Value added services • Web SMS • Ring tones • Pictures • Gup shup corner • GPRS • Logs • Yahoo messenger • SMS triva game • Lounge 144 • Dedication service • Fun messaging • Missed call alerts • Mobile Banking Mobilink has more then 200 franchises
Offering both Prepaid and Postpaid packages Value added services • Web SMS • GPRS • MMS • Ring tones • Logs • Java Games • SMS chat • Pay via SMS • SMS to television • Themes • PTCL SMS • SMS Games • Voice mail Ufone was the first company to launch GPRS in Pakistan
Mobilink was the first company to launch EVD (Electronic Voucher Distribution)
18
process first time in Pakistan.
SWOT Analysis (Mobilink) (Strength Weaknesses Opportunities Threads)
19
Strength
Market leader/Market share Coverage in more then 750 cities and villages Extra services Aggressive marketing strategies Quick response to complaints Brand Image
Weaknesses
At times poor service At times no Network coverage A bit Expensive
Opportunities
International Market Better service in Future Diversification Fixed line Telephone Wireless Calling cards
Threats
Direct
Ufone Telenor Warid Paktel
•
Indirect PTCL Calling Cards Wireless
BCG MATRIX (Figure 14)
20
Life Cycle (Figure 15)
Recommendation After the research and the survey I conducted these are the following recommendations for every network. 21
Mobilink should Bring their CALL and SMS rates down. Improve their Service Offer MMS. Ufone should Improve its service. Bring their call rates down Increase the time period on 250 Rupees scratch card. Bring their International call charges down. Warid should Increase its network coverage to more cities. Improve its service. Telenor should Increase its network coverage to more cities. Bring down their call rates Decrease their international call rates. Paktel should Improve their service. Increase their network coverage to more cities. Decrease their call rates Insta should Improve their service. Increase their network coverage. Offer some attractive packages. Try to switch to GSM
Conclusion The research conducted by me thorough survey and interviews, I here by conclude that Mobilink is the best mobile network company in Pakistan. They have highest number of customers because they are offering the best possible services to them. That’s why they are the market leader among all the mobile companies.
22
Summary Currently there are different mobile network companies operating in Pakistan. According to my research findings Mobilink is the best Mobile Network company. In this Report I have mentioned different point’s which shows that they are the best in the business. My report is based on the Tariff provided by PTA till 3rd January 2006.In the start of the Report you will find different packages offered by Mobilink and their achievements. After that few visuals and tables are been shown, they are the result of the survey I conducted through questionnaires. The report has the subscribers list which has been taken from the official site of Pakistan Telecommunication Authority.
As Ufone is the only strong competitor to Mobilink, Positive points of both the companies are mentioned. Further you will see SWOT analysis in which Mobilink was analyzed. The Companies strong points, their weaknesses, the opportunities for Mobilink and the companies which are threat to Mobilink are mentioned in SWOT analysis.
At the end you will find BCG matrix and Life cycle, which clearly shows the position of Mobilink. In BCG Matrix Mobilink is a Cash Cow and In Life Cycle Mobilink is at Maturity Stage.
Appendix Prepaid Tariffs as of January 3, 2006 (www.pta.gov.pk) 23
Mobili Ufone Paktel Insta nk Peak &Peak Off- Peak & Off- P OffOffPeak peak eak peak peak
Telenor Warid Peak OffPeak
Local & Long Distance Calls to Same Network (Rs. per min.) Airtime 2.70 2.50 1.50 3.00 1.80 3.99 0.99 15% GST 0.41 0.38 0.23 0.45 0.27 0.60 0.15 Total 3.11 2.88 1.73 3.45 2.07 4.59 1.14
&Peak Offpeak
2.45 0.37 2.82^
2.00 0.30 2.30
1.50 0.23 1.73
Local & Long Distance Calls to Other Cellular Network (Rs. per min.) Airtime 4.70 2.50 2.50 3.00 1.80 3.99 0.99 3.45 Interconnect 0.00 0.00 0.00 0.00 0.00 1.60 1.60 0.00
3.00 0.00
2.75 0.00
0.52 3.97
0.45 3.45
0.41 3.16
Local & Long Distance Calls to Fixed-line Network (Rs. per min.) Airtime 4.70 2.50 2.50 3.00 1.80 3.99 0.99 3.45 Interconnect 0.00 0.00 0.00 0.00 0.00 2.01 0.52 0.00
3.00 0.00
2.75 0.00
0.45 3.45
0.41 3.16
15% GST Total
15% GST Total
0.71 5.41
0.71 5.41
0.38 0.38 0.45 2.88 2.88 3.45
0.38 0.38 0.45 2.88 2.88 3.45
International Calls (Rs. per min.) Airtime 2.70 2.50 2.50
3.75
Access Charge 0.00
0.00
Int’l Long Dis. 5.00 15.00 15% GST 1.16 &2.66 Total
8.86 20.36
0.00 0.00
0.27 2.07
0.27 2.07
&18.0 18.00 18.00^^ 0 3.08 3.08 0.56 & 3.15
0.84 6.43
0.90 6.90
0.39 2.98
0.23 1.74
0.52 3.97
3.99 18.00 0.00
& 3.45 9.00 8.00 & & 18.00 17.00 0.00 0.00 0.00
0.00
7.00 &0.00 18.00 & 1.57 &1.35 3.22 2.70
0.60 2.70
&23.5 23.58 3.45 & 24.15 4.59 8 20.70
0.00 & 1.20 & 2.55
& 12.02 10.35 9.20 & & & 20.70 19.55 24.67
BEST MOBILE NETWORK 24
SURVEY (Questionnaire) This survey is to know about the best mobile network company in Pakistan and what should other networks do to become the best. NOTE: Please make sure that you select only one option. For Questions 8 – 14 you can select more then one option.
1. Your Name? ___________________________________
2. Your Age group?
15-30
31-50
51-So on
3. Your Gender?
Male
Female
4. Are You a Mobile User?
Yes
No
5. Which Mobile Connection do you Use?
Mobilink Ufone Telenor
Warid Paktel Insta
6. Which Mobile Network do you think is the Best?
25
Mobilink Ufone Telenor Warid Paktel Insta
7. As there are many mobile companies in the market, do u think because of the competition the services are improving?
Yes No
8. Why do you think the network you suggested is best?
Good Service Low call rates Wide coverage Other _________________________
9. Your suggestions for Mobilink to be the best in the market?
Improve their Service Bring their call rates down Enhance their coverage Other _________________________
10. Your suggestions for Ufone to be the best in the market?
Improve their Service Bring their call rates down Enhance their coverage Other _________________________
11. Your suggestions for Paktel to be the best in the market?
Improve their Service Bring their call rates down Enhance their coverage Other _________________________
26
12. Your suggestions for Insta to be best in the market?
Improve their Service Bring their call rates down Enhance their coverage Other _________________________
13. Your suggestions for Warid to be the best in the market?
Improve their Service Bring their call rates down Enhance their coverage Other _________________________
14. Your suggestions for Telenor to be the best in the market?
Improve their Service Bring their call rates down Enhance their coverage Other _________________________
15. What do you think should other Mobile Companies be allowed to start their business in Pakistan?
Yes No
16. Do you think when new companies will come in the market the service will improve?
Yes No
Please submit this Survey paper before 15th April 2006. Thank you for your cooperation.
27
Sources Acknowledgements Mr. Fayaz Muhammad Sales Executives Sales & Marketing Warid Telecom (Pvt) Ltd Fardeen Plaza, University road Peshawar. Mr. Arif Durrani Sr.Field sales Manager Paktel Telecom (Pvt) Ltd Opposite to Green shadi hall Sader. Peshawar Mr. Amir Zeb Ufone Telecom Fakher-e-Alam Road, Peshawar cantt. Mr. Khizer Ilyas Consultant to Telenor Islamabad. Mr. Yaseen Adeel Mobilink Telecom (Pvt) Ltd Near askari bank. Sadder Peshawar Mr. Shafiq Anjum Paktel Peshawar
Websites www.mobilinkgsm.com www.pta.gov.pk www.ufone.com www.paktel.com www.telenor.com www.waridtel.com
28
Glossary Activities Behavior Balance Poise Business Action Booster Jab Certification Guarantee Expenses Operating cost Franchise Permit Indigo Connection Network System Subscribers Users Marketing Selling Tariff Tax Niche Focus Tax Toll
29
Index
AIMS page 4
Mobilink World Page 5
BlackBerry Page 5
MMS Page 6, 9, 13
Booster Page 7
Niche marketing Page 4
Brand Image Page 10
PTA Page 3
Calling cards Page 10
Scratch cards Page 9
Certification Page 5
Subscribers Page 4 , 5
Engineering Departments Page 5
Switches Page 5
Franchises Page 5,9
Tariff Page 2, 3, 6
GPRS Page 5, 9
Tracker Page 5
GSM Page 3,4
Web SMS Page 9
Indigo Page 5
Wireless Page 10
Intelligent Network Page 5 International Roaming Page 5 Jazz Page 5 Market leader Page 5, 7, 9, 10 Market share Page 4 , 9 , 10
30