Final Presentation Telenor

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Our Group Muhammad Usman Muhammad Bilal 90% Usman Younis Ahmad Arslan Butt Sohail Ashraf

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History • •

Stated in 1885 Started as government institute with name ”Telegrafverket” • In 1995 it change its name as Telenor • Providing services in 13 Countries worldwide • 7th largest mobile operator in the world • 164 millions subscribers in the world

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Telenor Pakistan Started its operations in March 1995 Almost owned 21% market share Creating 2,500 direct and 25,000-plus indirect employment opportunities More then 200 franchises 100,000 retailer outlets

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Telenor @ a Glance Total revenue in 2008 is 111 billion NOK 164 million subscriber worldwide in 2008 Have telecom operations in 13 countries 38,800 employees goes to work daily in 13 countries Average 75,000 new customers join us

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Telenor Portfolio Telenor providing following types of business

The Internet TV and Broadcasting Mobile Phone Services

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The Internet UMTS and Turbo 3G are its new products in market These services are inexpensive and fast for customers

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TV and Broadcasting Providing 200 TV channels services You can keep yourself updated on news, sports, entertainment and more, directly on your own mobile phone

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Mobile Phone Services

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Providing mobile phone services in 13 countries worldwide Quality services at low cost. 7th largest mobile operator in the world 164 millions subscribers in the world 10

Vision

Our Vision is Simple

We’re here to help 11

Mission Statement Telenor is Customer focused business mobile service operator/telecommunications company that seeks competitive advantage in quality and value added services in both prepaid and postpaid categories through state of the art technology

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Values

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Make it Easy

We are practical We don’t complicate things Every product is easy to understand and use We never forgot we’re trying to make customer’s lives easy

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Be Inspiring

We are creative We strive to bring energy to things we do We produce good looking ,modern and fresh products We are passionate about our customer and business

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Be Respectful

We acknowledge and respect local culture We don’t impose one formula worldwide We want to be a part of local communites wherever we operate We belive loyalty has to be earned

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Keep Promises

Everything we set out to do should work if it doesn't, we're here to help. • We're about delivery, not over promising actions not words.

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Objectives Our Main objectives are as follow: Objectives

2006-07

2015

ARPU (Average Revenue Per User)

$4

$6- $8

Market Share in terms of Subscribers

10%

40%

Market Penetration

9%

30%

Market Share in terms of Revenue

7%

30%

5% – 6%

10%

20%

90%

EBITA (Earning before Interest, Tax and amortization) Unprompted Brand Awareness

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Product and Services Following are our main services

Mobile Fun

Mobile Interaction

Mobile Commerce 19

Mobile Fun

Mobile Sports

Mobile Music

Mobile TV

Mobile Communities 20

Mobile Interaction

cont………..

CIC’s

Health Line

ApnaPCO

Tele Doctor 21

Mobile Interaction

Mobile Flight

Mobile MKT

Mobile at Se

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CIP

Mobile Commerce

CallBazaar

Bills Pay

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Research- the Future is Now The Telenor Research and innovation unit is an innovation hub for the Telenor Group They are working in three locations in Norway a satellite in Kuala Lumpur and Malaysia 236 people from 23 Countries are working on this project 24

There main Research areas are:

Wireless Broadband

FutureSIM

Connected Objectives 25

Researches

Connect and Services

Profitability in Emerging

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Marketing Segmentation Segmentation is the process of dividing the total market for a good or service into several smaller, internally homogenous groups. Since Telenor is a customer oriented and quality driven company, it segments its market on the basis of various different dimensions.

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Segmentation

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Market Segmentation & Product Positioning Market Segment Today

Future 4 years Estimate

Existing Products

Profitability %

Youth/ students

25%

27%

Djuice, TalkShawk

29%

Women

10%

20%

TalkShawk

21%

Financially Constraint

40%

23%

TalkShawk, Telenor Azadi

20%

Corporate/ SME

25%

30%

Post Paid Packages

30%

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SWOT Analysis

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Strengths Network quality & design Superior customer care Financial Strength Excellent Coverage & Distribution. Commercial Launch of LDI & mobile services Contract with Siemens & Nokia Brand image of Quality 31

Weeknesses Relatively low market share Low profit margins Negative cash flows in the initial years

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Opportunities • • • • • • • •

Favorable Macroeconomic indicators Low cellular market penetration Inefficiency & poor performance of other mobile networks Co branding e.g. Ufone with ABN AMRO Strategic Alliances & Infrastructure Sharing Facilities E-commerce usage. Mobile Number Portability International Mobile Equipment Identity System 33

Threats Rolling Customers Privatizations & deregulations- increased competitions. Grey Traffic MNP mobile number portability Wireless technology at boom Public pay phones & calling cards usage where network is not available Propagandas attacking brand image 34

Marketing Strategies To deliver increased profitable growth To strengthen our performance culture across the Group To make responsible business a competitive advantage To provide a superior customer experience To ensure best practice benchmarking across the Group To drive change and constant renewal Improving our performance management Challenges ahead 35

To deliver increased profitable growth The Telenor Group aims to achieve a substantial revenue increase in the years to come The growth will mainly come from existing businesses We will seek to increase our core mobile and fixed voice revenues and explore broadband opportunities Telenor also invest in adjacent markets, such as

Basic financial services Machine-to-machine (M2M) communication worldwide 36

Strengthen our performance culture across the Group •

We will continue the successful practice of combining a local approach with global expertise

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In terms of Health, Safety and Environment (HSE), our objective is to improve working conditions and environmental management

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Local management teams will build a unique performance culture based on their own initiatives and in line with the

Telenor governance model Codes of Conduct vision and values our people policy the way we work across borders 37

Make responsible business a competitive advantage Corporate responsibility at Telenor is risk and linked to our core business Telenor has clearly defined targets on CO2 emissions from its operations Telenor has a strong track record when it comes to sustainable business

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Provide a superior customer experience our vision – we’re here to help we put customer experience at the top of the agenda our ambitions is to reach a situation where end-users’ brand preference is higher than the Telenor market share for all operating companies

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Ensure best practice benchmarking Telenor will undertake benchmarking and best practice sharing across the Group Achieve a higher reduction in the average operational cost per minute Telenor aims to achieve considerable continued growth in operating cash flow from all of its operations

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To drive change and constant renewal Broadband outside the Nordic countries Connected objects / M2M Telenor aims to establish a significant player in parts of the financial services industry for long-term growth. Telenor controls many valuable assets that can be further developed together with partners Our number one priority is to reduce CO2 emissions

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Improving our performance management Stronger link between the strategy process and performance monitoring Strategic objectives Ambitions monitored closely at both level

Company level Lower department level

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Challenges Ahead

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Global telecom industry is still growing and generating large profits Telenor expect usage of mobile and fixed voice communications to grow significantly Broadband also represents a huge growth opportunity There are challenging trends

Maturing markets Financial instability Pricing pressures as well as regulatory issues 43

Marketing Mix The set of tools that a firm uses to implement its marketing strategies are called Marketing Mix

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Product Homogeneity of markets Increase in number of regionalizing firms Identifiable international consumer segments

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Permotion The company should have the clear picture of the objectives for regional marketing communication strategy How the company can combine the different promotional tools and activities for the higher level of cost effectiveness Developed a standardized promotional package which is sufficiently flexible with the different ways in different cultures and norms • Package is also flexible in such a way, in which subsidiaries can develop their own marketing positioning related promotional strategy 46

Price Market survival Sales growth Market position Maximization of Profits Maintenance of product’s quality

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Place To manage the foreign channels of distribution is a key area in a company’s efforts to be more competitive in the market Products become more standardized across the world, the stability to compete on customer becomes more vital

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Competition As on 30 June 2008, Telenor Pakistan had a market share of approximately 20%. Five other mobile operators in Pakistan

Mobilink Ufone Warid Zong Instaphone

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Major Compotators

Compotator

Market Shares

Mobilink

37%

Ufone

20%

Warid

17%

Zong

4%

Insta Phone

0.4%

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Major Competitor Parameters

Mobilink

Telenor

Product Life Cycle

Maturity

Growth

Market share %

37%

20%

Coverage

2300 cities

2500 cities

Product Portfolio

Jazz Octane, Mobilink Indigo, Ladies First,

TalkShawk, Telenor Azadi, Djuice

Customer Base

305 million

164 million

Marketing Operations

Excellent

Good

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