Wateen Wimax

1

Executive Summary: WiMAX is a Worldwide Interoperability of Microwave Access. WiMAX is described in IEEE 802.16e Wireless Metropolitan Area Network (MAN) standard which has recently been introduced in Pakistan by AD consortium Wateen. It is expected that WiMAX compliant systems will provide fixed wireless alternative to conventional DSL and Cable Internet. Wateen Telecom is using Motorola's WiMAX technology to provide wireless fixed broadband data services for residential and corporate use. The company is using WIMAX as a cost effective and fast-to-deploy broadband solution, as part of its strategy to create a world-class communications network in Pakistan. It brings you the ability to communicate and connect via voice with your family, clients and business partners seamlessly. But Wateen Wimax faced criticism by the customers due to some flaws in their technology and services. They couldn’t get that much appreciation in the market as the company was expecting. People were unaware of the technology that Wateen launched. The operation and installation services were not provided properly and people were dissatisfied due to lack of knowledge about product, operation and ineffective advantages they expected to get. The product price was high as they had high security charges.

2

Table of Contents: About The Report……………………………………………………………….……4 Corporate History…………………………………………………………………….4 Mission Statement……………………………………………………………………4 Wateen Telecom……………………………………………………………………...5 Wimax………………………………………………………………………………...5 Working of Wimax…………………………………………………………………...6 Functions of Wimax…………………………………………………………………..7 Wimax in Pakistan ……………………………………………………………………7 Threat of New Entrants………………………………………………………………..8 Product Life Cycle ……………………………………………………………….…...8 Product strategies……………………………………………………………………...9 Promotion strategies…………………………………………………………………..10 Pricing Strategies……………………………………………………………………..12 Placement Strategies………………………………………………………………….13 SWOT Analysis………………………………………………………………………14 Conclusion……………………………………………………………………………14 References…………………………………………………………………………….15

About The Report: 3

In this report we are focusing on the product information, how the Wimax technology has revolutionized the world and how particularly Wateen Wimax is working in Pakistan. The flaws in marketing strategies that Wateen adopted when their product was launched and the changes later on they made in their strategies to get a better market response.

Corporate History: Wateen Telecom is a part of Warid Telecom International LLC, an Abu Dhabi Group company led by His Highness Sheikh Nahayan Mabarak Al Nahayan. The group is one of the largest in the Middle East and has diversified business interests comprising oil and gas exploration, hospitality services, communications, banking, financial services, automobile industry and property development. The group has large investments and a strong presence in Pakistan Owing to the significant patronage from the Abu Dhabi Group, Wateen Telecom, as part of the Warid Telecom International Group Company, benefits from an eminent portfolio of distinguished shareholders of Warid Telecom International L.L.C.

Mission Statement: 

To provide affordable communication services that meets and exceeds customers' requirements

 To deliver high-quality, flexible and are innovative solutions that cost effective and conducive  To provide complete customer satisfaction on time, every time

Wateen Telecom: Wateen Pakistan’s largest communication company in the private sector has become the instrumental catalyst that has radically moved the country forward into a digital 4

revolution with its ability to seamlessly connect and enable smarter, faster, cost effective and flexible solution to reach its valued customers. Wateen offers a complete range of carriers’ class telecom and multimedia services like fixed wireless and mobile telephony, “always-on” broad band for data, internet and TV/multimedia along with the host of other value added services and applications to set the standards for a new era of communications and entertainment in Pakistan. Wateen’s focus has been on bringing in cutting edge technologies to better provide youth with the tools they need to progress providing high speed connectivity, and features. Rich solutions is the Wateen’s way of not just matching the fast growing needs, but also challenging the true potential growth that technology can offer.

Wimax: WiMAX, an approximate acronym of Worldwide Interoperability for Microwave Access, is a telecommunications technology that provides for the wireless transmission of data using a variety of transmission modes, from point-to-point links to full mobile cellular-type access. The technology provides up to 70 Mb/sec symmetric broadband speeds without the need for cables. The technology is based on the IEEE 802.16 standard also called Wireless MAN. The name "WiMAX" was created by the WiMAX Forum, which was formed in June 2001 to promote conformity and interoperability of the standard. The forum describes WiMAX as "a standards-based technology enabling the delivery of last mile wireless broadband access as an alternative to cable and DSL"(and also to High Speed Packet Access). Wimax is always on high speed wireless connection which gives you the ability to access your favorite websites faster and lets you experience the web at its maximum potential. With internet speed ranging from 128kbps to 2Mbps surfing internet is whole new experience with increased speed improved productivity and substantial cost saving. []

Working Of Wimax: .

5

Figure 1

In WiMax first the ISP would have their T3 or higher access. The ISP would then use line of sight antennas (Bridges) to connect to towers that would distribute the non line of sight signal to (MAN) residential/business clients. WiMax line of sight antennas operate at a higher Frequency up to 66mhz. Distribution antennas do not have to be in the line of sight with their clients. WiMax can operate right next to cell phone towers with no interference. WiMax networks are similar to Wifi in deployment. The Wimax Base station/Tower will beam a signal to a WiMax Receiver. Similar to a WiFi access point sending a signal to a laptop.

Functions of Wimax: •

Wimax internet connections can be accessed at any distance.

•

The speed of Wimax is quite high and customers enjoy using it. 6

•

The WiMax system provides facilities of internet access through WiMax tower which is able to cover the larger area in the range of 8 thousand square kilometer.

•

WiMax provides connection. In the line-of sight there is a fixed antenna used at home top or office top to connect the network. The line-of-sight is static and connectivity is good. It gives you faster speed with less error.

•

Wimax also provides connection in non-line-of-sight. In this case you need small antenna in the computer to get the connection remotely.

Wimax in Pakistan: Wateen was launched in Pakistan on 16th December 2007. Currently, Pakistan has the largest fully functional WiMAX network in the world. Wateen Telecom installed the network with an initial rollout in seventeen cities throughout Pakistan using Motorola hardware technology to provide wireless fixed broadband data services for residential and corporate use. Wateen is also planning to expand its network and eventually cover 71 cities in Pakistan. Wateen WiMAX has been optimized to deliver multimedia, Internet, and voice traffic over wireless medium. Wateen WiMAX has thus enables the delivery of different types of content and applications through a single connection subscribers can use advanced telephony, surf the internet at super fast speed, make video calls and watch IP-TV through the comfort and ease affordable by a single connection. With Wateen’s WiMAX network you get access to •

Broadband internet services speed up to 2Mbps

•

Telephony services with a host of value added features

•

Secure high-speed data networks that are scalable and optimized as per customer requirements

Threat of New Entrants: Wateen was launched in Pakistan on 16th December 2007. At that time it was the only company offering Wimax so it enjoyed being a monopoly. Being the monopolist was the core competency of the company but Wateen did not take advantage of this position.

7

They had major flaws in their pricing, product and promotion strategies. Now Mobilink and PTCL (smart TV) have emerged as competitors in this market. PTCL Smart Line' is a fixed line service that allows customer the experience of telephony, Broadband and multi-channel TV service all at the same time, on the same line. Therefore no additional cable is required into the customer's premises to receive cable TV / Multi channel TV. Mobilink is a subsidiary of Orascom Telecom and Pakistan’s largest mobile service provider; they officially launched their Wimax service by the name of Mobilink Infinity. Because Mobilink has already got an established network and a huge existing customer base they would have no trouble competing with Wateen Telecom. Moreover they are charging quite reasonable prices and providing good customer service so it is surely a wake up call for Wateen because it may not see the light of day in the rest of the country.

Product Life Cycle:

. Wateen Wimax is currently in the introduction stage. Sales growth tends to be low at this stage. Promotional expenditures are at their highest ratio to sales as Product8

Awareness Advertising is done. In case of Wateen Wimax huge advertisement was done even before there product was developed and when they finally launched it, it was not at all like the image they had made in the minds of consumers. This brought a critically negative impact on the brand reputation. And the customer confidence was also shattered. Wateen was the first company to launch Wimax. It had a very good chance to capture the market as it had no competitors at the time but it failed due to the strategic mistakes it made. Currently it is trying to cope with these issues with the help of Warid and Bank Alfalah.[Keller]

Product Strategies: The target customers of Wateen are •

home users,

•

business users

•

carriers & operators

However their main revenue comes from business users because due to their high costs home users do not prefer it so they are targeting business users more than the others by providing advanced technology that is necessary for business sector. Wimax failed due to the following reasons: 1. Wimax was unable to capture signals in areas surrounded by trees and huge buildings. 2. Instead of focusing on the technology they were focusing on market share 3. Their sales representatives did not guide the buyers properly about the services, whenever a customer asked any question related to their product and WiMAX technology they failed to satisfy the ambiguities of the customers. 4. The cable service that they provided was not up to the mark. There were very few channels in it so generally people preferred their local cables.

Realizing all these facts they now 1. Have improved their customer service to some extent. 2. The signal problem has also been resolved. 9

3. People are getting aware of new technology wimax Wateen needs to work over these flaws in order to satisfy their target customers.

Promotion Strategies: Promotion is a very important element of marketing mix. Wimax promotes its products by: ADVERTISING: •

Bill boards in busy localities.

•

Newspaper ads

•

Below the line Advertisement

Wimax is a new technology in the world and it has yet to prove in the market. Moreover it has many issues regarding product awareness, delivery and its usage since it has been launched. Marketing communication and advertising is considered as strategic decision during the launch of the product and it should be handled with care. It brings a negative impact on brand reputation if the product or services are launched aggressively by spending and putting too much effort in heavy advertisements without product or services placed in the market. It is just like misleading the customers. Such campaign brings adverse effect on brand image instead of building it. The product like WiMax which is still in the introductory stage has to struggle a lot in getting a market share Such mistake at the launch can severely disrupt the company’s and brand’s image within early adaptors of the product. Wateen has placed two ads in print media. One was related to the product launch aggressively offered all the products in line with core focus on triple play. The new website of Wateen is far better than the previous one because it offers product & marketing information in detail which can help customers to know about Wateen product better. However on practically calling the Toll Free number on next day of advertisement, one finds a telemarketer with inadequate information on all the products and delivery time of 2 months. Prospects are being asked to register online and are being told that sales team will contact them in 6 to 8 weeks. While doing advertisement during product launch, companies must behave strategically realistic when the market is competitive and buyers have become knowledgeable. Wateen 10

does have some exciting projects and plans ahead and they are acting quite aggressively but enterprises like Wateen Telecom, must advertise product/service offering only when the product is ready to deliver instead of advertising plans on paper. The second advertisement from the campaign was based on good advertising strategy. It focused on corporate image of company and the feeling that there is a new entrant who will be offering value services in Telecom Sector. The services that is new for the customers in Pakistan. The advertisement was not offering anything in particular and hence is the right Pre-Launch Ad before products are practically ready for delivery. Wateen also has successfully managed to bring certain corporate giants on board including Telenor, Bank of Punjab, Warid, Callmate etc and these names were illustrated on the advertisement, thus strengthening the company’s image as promising and trustworthy player.

Pricing Strategies: Wateen provides its home users with the following packages.

11

Figure 2

[] The pricing strategies of Wateen Wimax were not very good. They were charging Rs.8000 as their upfront payment which was too high. Potential customers were not willing to pay such a high price for a new product. Most people thought of it as a sly marketing plan, which is usually followed by most companies; they charge you high fees initially so that even if a user isn’t satisfied with the service, he’ll think thrice before switching to another service. Wateen soon recognized the problems with their pricing strategies by the poor market response. They reconsidered their prices and tried to lower them to match the customer expectations but they are still not low enough to gain positive market response.

Placement Strategies: Wateen is located in 17 cities throughout Pakistan. The phases have been covered with a total route of 350 plus kilometers. 12

First Phase Lahore, Karachi, Islamabad, Faisalabad Second Phase Multan, Sahiwal, Gujranwala, Sukkar, Hyderabad, Quetta, Abbotabad, Jehlum, Peshawar, D.I. Khan, Sialkot, Gujrat and Sargodha. 1800 1600

1611

1400 1200 1000

852

800 600 400

294

North 220

200

129

112

76

70

63

47

40

35

33

32

23

21

20

0

Figure 3: City wise sales in North 1200 1064 1000

800

South

600

400

200 40

27

6

0 Karachi

Quetta

Hyderabad

Sukker

Figure 4: City wise sales in South

SWOT Analysis: Strengths •

It has a low cost potential to deploy and operate, especially for rural areas.

•

It is based on proven OFDM techniques.

•

Support high bandwidth and QoS guarantee mechanism for low latency IP application.

Weaknesses •

There are a lot of security issues

•

Is not up to the customer expectations

•

The revenues are immature 13

. Opportunities •

Underserved DSL kind network infrastructure or no broadband access at all.

•

Positive attitude from government and local providers.

•

In some countries, 3G licenses are still not issued.

Threats •

DSL technologies widely deployed in urban and suburban areas, also higher Initial cost of WiMAX deployment than DSL and Cable access mode.

•

Restricted and immature regulation and policy environment.

•

Low penetration of population and low ARPU.

Conclusion: For a company to be successful it must follow the marketing mix strategies in an effective manner. However Wimax technology introduced by Wateen was not a successful launch. Being the first such technology it should have been able to capture a large market but due to its poor marketing strategies and services they failed. Currently they have resolved the flaws in their product to a great extent by revising their marketing strategies and taking consumers preferences into consideration. Its competitors are emerging in the market but by taking advantage of their strong financial background they can still capture a large market share. WiMAX service providers believe that if PTA allows them to give WiMAX access to mobile users which will lead to 4G then the communication among the general public or across the globe will become cheaper then ever in Pakistan but it would effect the business of other mobile networks. However in the near future more international ventures are expected to emerge in WiMAX market of Pakistan, then PTA will surely consider them to give mobility services

References: •

http://www.wateen.com/

•

http://greenwhite.org/2007/09/07/wateen-fumbles-with-wimax-launch-campaign/ 14

•

http://greenwhite.org/category/marketing-adv/

•

http://telecompk.net/2007/08/31/wateen%E2%80%99s-strategic-mistake-inproduct-launch/

•

http://telecompk.net/2007/12/15/wateen-announces-wimax-tariffs

•

http://www.wikipedia.org/

•

http://techlahore.files.wordpress.com/2007/12/wimax.gif

Books: Marketing Management by Philip Kotler and Kevin Keller

15