Internship Report

Nelum Shehzade
BBA 2004-2008
 ACKNOWLEDGEMENT

All the praise is for Allah, the most merciful and beneficent, who
blessed me with the knowledge, gave me the courage and allowed
me to accomplish this task. I am especially indebted to all my
teachers for instilling in me enough knowledge to be able to carry
myself efficiently during my internship.

Secondly, I am bound to thank all the staff of Telenor. In particular I

am grateful to Ms.Irem Jaffery (Customer Relations Manager), Mr.
Arif Noori (Executive Sales and Distribution), Mr. Malik Asad
(Manager Finance), Mr. Arshad Noori (Sales Supervisor), and all
KTOs ,their inspiring guidance, remarkable suggestions, constant
encouragement, keen interest, constructive criticism and friendly
discussion helped me to learn and enabled me to complete this
report efficiently.

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 DEDICATION

I dedicate this report to my parents and friends in recognition of

their worth and to my teachers who are the guiding force for me and
it is their effort and hard work that showed me the path of success
and prosperity which would be there for me for the rest of my life.

“Keep your dreams alive. Understand to achieve anything requires

faith and belief in yourself, vision, hard work, determination, and
dedication. Remember all things are possible for those who
believe.” - Merlin Olsen

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TABLE OF CONTENTS

EXECUTIVE SUMMARY...................................................................................................................................5
1. INTRODUCTION.............................................................................................................................................6
CENTRAL BACKGROUND INFORMATION.........................................................................................................................6
1.3 TELENOR IN PAKISTAN...................................................................................................................................12
a) Vision and Values...................................................................................................................................12
b) Largest direct European investment in Pakistan....................................................................................14
c) Highest (ARPU) in the market................................................................................................................14
d) Fastest growing mobile network.............................................................................................................15
e) Infrastructure expansion.........................................................................................................................15
f) Employment opportunities.......................................................................................................................15
g) Social and corporate responsibility........................................................................................................15
h) Achievements .........................................................................................................................................16
i) Future Projects........................................................................................................................................17
2. COMPANY ANALYSIS................................................................................................................................17
2.1 OPERATION ANALYSIS.....................................................................................................................................17
FINANCIAL ANALYSIS..............................................................................................................................................20
2.3 HUMAN RESOURCE ASSESSMENT......................................................................................................................21
MARKETING ANALYSIS.........................................................................................................................................23
ENVIRONMENTAL ANALYSIS......................................................................................................................26
INDUSTRY AND MARKET ANALYSIS..........................................................................................................................26
3.1.1. Major product lines ..........................................................................................................................26
3.1.2. Market Segmentation........................................................................................................................27
3.1.3. Growth Rate for Entire Industry.......................................................................................................29
3.2. COMPETITOR ANALYSIS.................................................................................................................................31
3.2.1. Major Competitors............................................................................................................................31
Market share of Competitors.......................................................................................................................33
Competitors Goals.......................................................................................................................................34
Competitors Strategies.................................................................................................................................34
TECHNOLOGY ANALYSIS.........................................................................................................................................35
Technical methods affecting industry..........................................................................................................35
Innovation ...................................................................................................................................................35
DEPARTMENT WORKED DURING INTERNSHIP....................................................................................39
IDENTIFICATION OF A MAIN PROBLEM..................................................................................................44
6. FINDINGS ....................................................................................................................................................45
CONCLUSION AND RECOMMENDATIONS...............................................................................................46
7. APPENDIX....................................................................................................................................................51
MONTENEGRO..........................................................................................................................................56

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Executive Summary

Internship was my first step in practical life, through which I learnt a

lot and it has aided me in being well equipped with valuable
experience that would help me once I enter the professional life
after the completion of my studies.

During the month of July and August 2007, I worked in Telenor as an

internee.
My association with this company was being a part of the Customers
Services Department. It was a great experience for me and it helped
me in realizing where my potential lies. What I learnt at Telenor over
the weeks was how to get along with the people that I have to work
with everyday, building relationships with people, building
confidence and improving my communication skills. This internship
has also prepared me for my future career in sales and marketing.
The experience has taught me responsibility, teamwork and how to
handle people in tough social situations. Even though the nature of
work was quite basic as an internee, nevertheless I got to see what
practical life is. This internship overall has been a great experience.

This report gives a profile of Telenor and an insight to analysis of

Telenor in terms of operations, finance, human resource and
marketing. Report also covers environmental analysis of industry ,
market and technologies .This report also reflects my learning and
experiences at Telenor along with my responsibilities and the tasks

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that I performed. Last part of the report consists of some
recommendations and suggestions that I have given.

1. Introduction

Central background information

a) What is Telecommunication?

Telecommunication is derived from Greek word “Tele” which means

over a distance, “Communicara” which means the ability to share.
Telecommunication literally means “the sharing of information over
a distance”. Telecommunication affects how and where you do
everything lives, work, play, socialize, entertain, serve, study, teach,
rest, heal and protect.

The process of transmitting or receiving information over a distance

by any electrical or electro – magnetic medium. Information may
take the form of voice, video or data.

b) Telecommunication in Pakistan

Pakistan Telecommunication Authority (PTA): -

Pakistan Telecommunication Authority being regulatory body is
promoting the telecom sector since 1997. The Authority is
responsible for regulating the establishment, operation and
maintenance of telecommunication system and provision of telecom
services in the country.

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It promotes and protects the interest of end users of
telecommunication services. Pakistan under World Trade
Organization (WTO) commitment is now ready to deregulate the
whole of telecom sector. Deregulation policy is in final stages and
will be announced shortly.

In the year 2002 – 03, the PTA has stepped forward to encourage
the telecom operators and transfer of technology in Pakistan.

In this regard, royalty of Internet Service Provider (ISP) has been

reduced from 4 to 0.66 percent of the annual gross revenue. For
card payphone service and cellular mobile service, it was reduced
from 4 to 2 percent respectively of grass revenue in the year 2001.

Similarly with the launching of prepaid connections by cellular

companies, the numbers of mobile phones subscribers have
reached to 2.5 million up to June 2002, showing a growth of 105.8
percent.

The introduction of new services in terms of technology

advancement in the sector includes broadband Internet services,
General Packet Radio Services (GPRS) facility, and internet
connectivity on mobile phone. The PTA has issued 1,278 radio –
based licenses and granted permission to install 291 Spread
Spectrum Radio Lines.

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For the value added services, Pakistan Telecommunication Authority
has issued total 431 licenses including 177 licenses for card
payphone services and 121 for electronic information service.

For voice and data network services, 24 and satellite 8, trunk radio
services 12, store and forward fax service 9, video conference 1 and
25 data communication network services license were issued up –
till June 2003.

Telenor acquired the license for providing GSM services in Pakistan

in April 2004,

The license terms stipulate that by year 4, Telenor will cover 70% of
Pakistan's 297 administrative Tehsil headquarters. Telenor will fulfill
the license requirements and provide superior quality coverage.

Telenor has successfully signed interconnect agreements with all

four incumbents during December 2004, allowing its subscribers to
exchange voice and data with subscribers on all active mobile
networks including Paktel, Instaphone, Ufone, Mobilink and Warid
telecom.

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1.1 Company background

a) History of Telenor group

For over 150 years, telecommunications has played a vital part in

the development of modern Norwegian society. As the incumbent
provider, Telenor has been the driving force in the development of a
highly sophisticated home market and is now one of the largest
mobile operators worldwide.

b) The introduction of the telephone

The years of 1855 to 1920 was a pioneering period in the history of

Norwegian telecommunications. During two generations, the
Norwegian society experienced the introduction of three new means
of communications: the telegraph in the years of 1850, the
telephone around 1880 and wireless telegraphy – radiotelegraphy –

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at the turn of the century. The spread and use of telecommunication
was modest compared to later periods, but as entirely new features
they received a fair amount of attention.

c) Pioneer in mobile communications

Telenor is a pioneer in mobile communications. Manual mobile

telephony services were introduced in Norway in 1966, as a
forerunner to the automatic NMT system, which appeared in 1981.
Its digital successor, GSM, was introduced in 1993, and third
generation mobile network, UMTS, was launched for commercial use
in 2004.

d) Norwegian telecom becomes a public corporation

In 1994, Norwegian Telecom was established as a public

corporation. One year later, it changed its name to Telenor. In
December 2000, Telenor was partly privatised and listed on the
stock exchange.

e) International expansion

Telenor has undergone momentous change as a group – from being

a strong, national operator with significant international holdings to
be coming an international, world-class provider of mobile
communications services.

Telenor is organized into three business areas; Mobile operations

covering 12 countries, and Fixed-line and Broadcast services
covering the Nordic region.

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f) The Telenor Group 2007

• More than 143 million mobile subscribers worldwide .

• Strong subscription growth, particularly in Asian
operations.
• Ranked as the world seventh largest mobile operator.
• Revenues 2007: NOK 92,5 billion
• Workforce 2007: 35 800 man-years
• Listed on the Oslo Stock Exchange and head quarter in
Norway

g) Global opportunities

Telenor is one of the largest mobile operators worldwide with

ownership interests in 12 mobile operators across Europe and Asia,
and as a consequence a whole world of job-opportunities is opening
up.

Mobile operators and the markets in which Telenor operate are as

follows:

• Sonofon, Denmark
• Telenor, Norway
• Telenor Sweden
• Kyivstar, Ukraine
• Pannon, Hungary
• Promonte, Montenegro
• Telenor Serbia

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 • VimpelCom, Russia
• Telenor Pakistan
• DiGi, Malaysia
• DTAC, Thailand
• Grameenphone, Bangladesh

1.3 Telenor in Pakistan

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its

operations in Asia together with Thailand, Malaysia and Bangladesh.
Telenor Pakistan launched its operations in March 2005. Market
share of Telenor is 21% currently.

a) Vision and Values

Telenor Vision

Telenor vision is simple: We're here to help

We exist to help our customers get the full benefit of

communications services in their daily lives.

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The key to achieving this vision is a mindset where every one of us
works together: Making it easy to buy and use our services.
Delivering on our promises. Being respectful of differences.
Inspiring people to find new ways.

Core values of Telenor

Make it Easy
We're practical. We don't complicate things. Everything we produce
should be easy to understand and use. Because we never forget
we're trying to make customers' lives easier.

Keep Promises

Everything we set out to do should work, or if it doesn't, we're here

to help. We're about delivery, not over promising, actions not words.

Be Inspiring

We are creative. We strive to bring energy to the things we do.

Everything we produce should look good, modern and fresh. We are
passionate about our business and customers.

Be Respectful

We acknowledge and respect local cultures. We do not impose one

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formula worldwide. We want to be a part of local communities
wherever we operate. We believe loyalty has to be earned.

b) Largest direct European investment in Pakistan

Telenor as the single largest direct European investment in Pakistan,

is setting precedence for further foreign investments in the telecom
sector. The company has covered several milestones over the past
twenty eight months and grown in a number of directions, Telenor
has grown to become a leading telecom operator in the country. In
fiscal year 2006, it achieved nearly 200% growth in their subscriber
base – the highest in the industry by a wide margin.

c) Highest (ARPU) in the market

Since its launch of services in March 2005, Telenor Pakistan has

exceeded all expectations: It has created the second largest mobile
network and the largest and most advanced data network in the
local market, turned into the second highest revenue-generating
mobile player with the highest Average Revenue Per User (ARPU) in
the market, and become the second largest mobile player in the
market with 18 million active subscriptions in little more than 3
years of operations. During the first half of 2008, Telenor Pakistan
added 3.24 million subscriptions against the industry average of
1.63 million, taking 33% of the market share of net additions over
the period – the highest in the mobile sector in Pakistan.

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d) Fastest growing mobile network

Telenor is the fastest growing mobile network in the country, with

coverage reaching deep into many of the remotest areas of
Pakistan. In the most difficult terrains of the country, from the hilly
northern areas to the sprawling deserts in the south, at times
Telenor is the only operator connecting the previously
unconnected.

e) Infrastructure expansion

Telenor is keeping ahead by investing heavily in infrastructure

expansion. With USD1 billion already invested, Telenor has
extended agreements with their vendors for network expansion and
services until 2009. The agreements, with a potential to result in
USD750 million worth of orders from Telenor Pakistan, are some of
the biggest of their kind in the industry.

f) Employment opportunities

The company has created 2500 direct and more than 25000 indirect
employment opportunities with 100,000+ retail outlets and 200+
franchises in addition. 99.9% of these employment opportunities
belong to Pakistanis.

g) Social and corporate responsibility

Initiated with a relief effort worth 95 million rupees in the wake of

the devastating earthquake of October 2005, Telenor Pakistan’s
community contributions have extended over the years to include
education, empowerment, enterprise, and environment - with

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special focus on bringing the telecom promise within the grasp of
the most disadvantaged sections of the society.

In Pakistan the company came out with the first-ever Corporate

Responsibility report in the mobile industry last year, setting new
standards of transparency and responsibility. Telenor Pakistan is
well-recognized by the development sector in Pakistan for the
amount of Foreign Direct Investment it has brought to the country.

h) Achievements

Telenor Pakistan has received several awards for its solid

performance in key areas of activities:

• Federation of Pakistan Chambers of Commerce &

Industry’s Telecom Excellence Award in Foreign Direct Investment
in June 2006

• SAARC Communication Industry Conference 2007’s Most

Innovative Mobile Operator Award and Mobile Operator with the
Most Consumer Pull Award

• All Pakistan Dawn Aurora Advertising Awards in three of five

nominated categories in March 2007

• The National Forum for Environment & Health’s Annual

Environment Excellence Awards 2008

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• Lahore Chamber of Commerce & Industries’ Appreciation Award
for the Largest FDI and Rawalpindi Chamber of Commerce &
Industries’ Achievement Award 2008

• The Helpline Trust’s 2nd Corporate Social Responsibility Award

2008

i) Future Projects

Telenor Pakistan is committed to bringing true mobile innovation to

the under-served masses of Pakistan. The company has picked up
two Universal Service Fund projects in order to provide connectivity
to the yet unconnected in the remotest areas of Pakistan. It aims to
invest strongly for further network expansion into the rural areas
and for the rollout of third generation of mobile technology (3G) in
Pakistan.

2. Company Analysis

2.1 Operation analysis

In April 2004 Norwegian mobile telecoms operator, Telenor, bid for

and ultimately won a license to operate a cellular network in
Pakistan. The winning bid of $291 million secured one of two new
nationwide licenses in Pakistan for mobile operation. Telenor has
secured a 15-year license, which is renewable upon application for
the same fee; only 50% of the license fee is payable in the first year,

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and the balance over the next ten years. Additional fees for Telenor
include 2.5% of the annual gross revenue. The license covers the
operation of Global System for Mobile Communications (GSM),
General Packet Radio Service (GPRS) and Enhanced Data Rates for
Global Evolution (EDGE) technology for the network.

Pakistan has the sixth largest population in the world -

approximately 150 million. There are currently four mobile operators
in the country. Mobile penetration at the end of 2003 was just 2.3%
with a subscriber base of 3.4 million, while fixed line penetration
was approximately 2.4%. Many geographic areas in Pakistan are
without telephone coverage. To accompany recent positive
economic development in Pakistan and the inherently low mobile
penetration, high growth within the mobile segment is expected.

Telenor's previous activities in Asia have focused on the

development of mobile networks from scratch, and so the current
activity is a continuation of their previous successful strategy.
Telenor has formed a subsidiary company to operate the business in
Pakistan called Telenor Pakistan Pvt Ltd. Latest reports have
estimated the amount of investment in Pakistan mobile
infrastructure by Telenor to amount to $1 billion.

a) Mobile Infrastructure Contractors

Nokia supply the GSM Base Station Subsystem (BSS) solution, GPRS
core system and Network Switching Solution (NSS) DX 200i series,
which is easily upgradeable to 3G Wideband Code-Division Multiple
Access (WCDMA) technology in the future. In addition, Nokia also
provide turnkey implementation of the network including project

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management, network planning and design, site acquisition, civil
engineering and supply and installation of hardware and software.
They also provide software maintenance, emergency support,
hardware services and maintenance and training for Telenor
Pakistan personnel.

Siemens provide turnkey implementation of the new network

including supply and installation of all the infrastructure components
for setting up a GSM / GPRS / EDGE network. These include
switching technology, mobile transmission and receiving stations,
intelligent networks and GPRS hardware and software. Siemens
carry out network design, site acquisition, civil engineering and
project management. They also provide the initial operations
support service for the network and provide training in software
support and maintenance to Telenor Pakistan Personnel.

b) Licenses and network

Telenor Pakistan currently holds nationwide GSM 900/1800 licenses.

In addition the company holds a license to build and operate a
mobile network in Azad Jammu and Kashmir (AJK) and the Northern
Areas. Telenor Pakistan also holds a Long Distance and International
(LDI) license under which it provides nationwide and international
call services. After launching EDGE in August 2006, Telenor Pakistan
has the country's widest EDGE coverage, allowing access to high-
speed Internet and data services.

c) Management of Telenor

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The top management of Telenor comprise of versatile and highly
educated people to cater the need of company. Under the
supervision of top management, employees are highly motivated
and perform sophisticated and day to day operations.

The top management includes:

• Jon Eddy Abdullah, Chief Executive Officer

• Irfan Wahab Khan, Executive Vice President Corporate
Affairs & CEO LDI
• Lars Christian, Chief Marketing Officer
• Peter Dindial, Chief Technical Officer / Vice President
Technical Division
• Khalid Shehzad, Chief Information Officer / Vice President
IT Division
• Peter Kuncewicz, Chief Finance Officer / Vice President
Finance Division
• Nayab Baig, Vice President Human Capital Division
Ronny B. Naevdal, Vice President Strategy

A brief introduction of these effective brains is given in annexure.

Financial analysis

Telenor brings with it the initial investment of 2 Billion in Pakistan. In

Pakistan Telenor is very much successful and continuously
expanding its network infrastructure. Financial conditions of the
company are very stable.
Telenor Pakistan has announced excellent financial results for Q4
2007, with 2 million subscriptions added to its base within the 3-
month period.

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Most financial indicators of Telenor Pakistan are good: Revenues
have soared, subscriber share is steadily increasing. The EBITDA
(earnings before interest, tax, depreciation and amortization) is
positive for the first time, though the EBITDA margin is only 7%.
Another thing which needs to be noted that Telenor’s operating
losses have reduced in 2007. The company also grew its revenue by
18% in local currency from Q3 2007 and improved its EBITDA
margin by 17% from Q3 2007.

The average revenue per user (ARPU) has stabilized around Rs 280
per month for Pakistan - its low but that’s the reality of the market.

2.3 Human resource assessment

The company has created 2500 direct and more than 25000 indirect
employment opportunities with 100,000+ retail outlets and 200+
franchises in addition. 99.9% of these employment opportunities
belong to Pakistanis.

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Telenor offers exciting and challenging careers with competitive
pay, excellent benefits and exceptional advancement opportunities.
Telenor care about its employees and provide them with a relaxed
and enriching working environment. Telenor training and further
education programs ensure a high professional standard amongst
its employees. Telenor believe that a talented and loyal workforce
plays a crucial role in the organization’s ongoing business success.

Equal opportunities for all

Telenor maintains a policy of non-discrimination towards all

employees and applicants for employment. All aspects of
employment with Telenor are governed by merit, competence,
suitability and qualifications, and are not be influenced in any
manner by gender, age, race, color, religion, national origin or
disability. Today, Telenor workforce proves that; with 18% women
working at all levels in the organization, both foreign and local
educational backgrounds.

Focus on management development

Telenor's management and organization is imbued with joint values.

The Group Management has devised five leadership requirements
that apply to all managers in the Group, and all management groups
shall discuss what these requirements mean to them. The demands
are:

--Passion for business

--Change and constant renewal
--Operational excellence

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 --Empower people
--Integrity

All managers are subject to annual evaluations based on these

management criteria.

HC at Telenor Pakistan

Human Capital Division at Telenor believes in continuous

improvement and is taking the standards of service to the utmost
levels of excellence.

From providing the best administrative support to facilitate

employees work life to creating benchmark security solutions,
Telenor is a team of enthusiastic, energetic young people who are
geared to perform the best always.
Telenor managed to create a culture of passion for business,
operational excellence and constant renewal and committed to
assisting employees in exploring, developing and maximizing their
full potential, encouraging continuing education through internal
and external training and development opportunities.

Marketing Analysis

The marketing mix is the set of controllable, tactical marketing tools

that Telenor blends to produce the response it wants in the target
market. The many possibilities can be collected into four groups of

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variables known as the “four Ps”: product, price, place, and
promotion.

PRODUCT OR SERVICES

Telenor is offering mobile services having many more value added

features with it because of its EDGE/GPRS technology. It offers voice
conversation along with SMS, MMS, GPRS, WAP and video
conferencing. All services are based upon high quality and
considerable charges. Brand image is created out of the product or
services provided.

PRICE

price of each and every service of Telenor related to both prepaid

and postpaid are comparatively competitive.

Telenor is continuously coming up with new price offers and

packages to cater its different segments.

PLACE

Telenor believes on extensive distribution . Therefore it has

launched its services all over Pakistan covering all major cities,
highways and far flung untapped areas.

Telenor has partnered with oil marketing companies such as PSO,

Caltex and Total Parco to make Telenor Prepaid products & services
available at convenience stores located at their petrol stations.

Telenor is also operating Telenor branded shops located in large

retail outlets which sell Telenor Prepaid products & Services

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source: www.telenor.com.pk

Distribution is a competitive advantage for Telenor with that comes:

• High level of retail penetration –maximize sales

• Reinforce brand image & positioning
• Low distribution cost
• High channel loyalty through fair profitability for channels

PROMOTION

Telenor is spending large budget on promotion campaign.

Promotion mix includes the usage of all the tools like:

• Personal selling
• Public relations
• Sales promotion
• Advertisement (print,electronic,direct marketing and out of
home advertising)

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Before it’s starting of services commercial ads were aired through
electronic and paper media. Initially their ads gave the people an
opportunity to understand the company’s profile. Then after
launching it started its mega advertisement campaign.

There are different types of banners and billboards all across the
country on important public places. Telenor is distributing
pamphlets through service stations and big super stores.

Also there is big and comprehensive website of Telenor of Pakistan.

This website contains all relevant material which a customer wants
to understand .

Telenor uses every media to promote its product and value added
services.

Environmental Analysis

Industry and Market Analysis

3.1.1. Major product lines

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Telenor group has major product lines including, mobile telephony,
fixed line, broadband TV networks. But currently in Pakistan
Telenor’s only product is mobile telephony.
The two product lines according to product segments are:

• Prepaid packages (for women, youngsters, children )

----Talkshawk
----Djuice
• Post paid package (for corporate clients)
----Persona
Details of these product lines in given in annexure.

Hastily entering into the market Telenor focused on the following

differentiation strategy for its prepaid and post paid products:

• Superior quality service

• No time limit for incoming calls
• Easy load (recharge up to rupees 10 and from any place)

3.1.2. Market Segmentation

A segment is a group of people with similar wants which a company

sees as a potential differentiated lot.

Telenor has focused on effective segmentation for its marketing

efforts. It implied two types of segmentation techniques i.e.
demographic segmentation and geographic segmentation. Telenor
is currently focusing on all three strata of the society, i.e. upper,
middle and lower. It offers the rates of services as low as a
consumer imagines that it should be.

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Demographic segmentation

Telenor is trying to attract the customers of all age, income, and

occupations etc.

It offers value added services such as WAP, ring tone downloads etc.
to attract the youngsters. Further, it offers no maximum time limits
for recharging which is attractive for lower income group people.
Concept of easy load was very first time being introduced in
Pakistan to cater lower income strata and students.

Behavioral segmentation

Telenor has also adopted a behavioral segmentation strategy. In

Pakistan buyer has sufficient knowledge of services that the mobile
companies are offering in a market. Due to this factor, they can
easily compare the price and value of services of any company. That
is why Telenor has shown to everyone through different means of
media of all of its facts and figures of portfolio.

People of Pakistan have an attitude towards low cost and good

quality. Observing that factor Telenor is trying to give the services
more than good.

Telenor is catering entire population. The basis target market

segments are as follows:

• Market dominated by low-end, low-ARPU customers

(largely untapped)
• Relatively large emerging middle class segment (Basic in
Telenor Terminology)

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 • Strong youth culture with needs similar to other markets
• Private postpaid almost non-existent
• Small but profitable (high ARPU) Corporate/SME segment
• Women a largely untapped segment

Addressing the Segments

• Telenor Group’s segmentation model has been adopted

and adapted to cover the Pakistani market.
• Extensive Market research has been conducted and is
updated on a regular basis
• Initial offerings targeted
–primarily at Basic Consumers (Middle ground, prepaid)
–secondarily at low end users
–third at Corporate/SME customers
• Going forward, the offerings, distribution and
communication will broaden and ultimately target all
relevant segments.

3.1.3. Growth Rate for Entire Industry

Telecom industry is booming throughout the country as two million

mobile subscribers are added every month throughout the last year.

Previous year the sector grew by 80 percent while average growth

rate in last four years has been more than 100 percent.

Network coverage of almost 90 percent of the total population of

Pakistan has made the industry even more attractive for foreign
investment. Industry analysts said that there is still a great margin
of growth in this industry, in 2003-04 the sector was offering
466,068 direct and indirect employments and now in 2006-07 it is

29
 more than double at 1,366,698 employment opportunities. An
intense competition is seen in the telecom sector and all the
companies are trying to take edge on each other, which is helping
the subscribers as they are getting advanced and new packages at
low prices. Here is a table depicting cellular subscribers in Pakistan.

CELLULAR SUBSCRIBERS
Growth
Mobilink Ufone Zong Instsphone Telenor Warid Total
Rate
2000 114,272 80,221 112,000 306,493 15.39
2001 309,272 116,711 96,623 220,000 742,606 142.29
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 2,579,103 924,486 454,147 835,727 508,655 12,771,203 154.26
2006 17,205,555 7,487,005 1,040,503 336,696 3,573,660 4,863,138 34,506,557 170.2
2007 26,466,451 14,014,044 1,024,563 333,081 10,701,332 10,620,386 63,159,857 80.70
2008 32,032,363 18,100,440 3,950,758 351,135* 18,125,189 15,489,858 88,019,812 39.4
July-2008 32,056,336 18,368,074 4,446,024 351,135 18,329,428 15,774,299 89,325,296
* Revised
Note: Including AJK & NAs
SCO Cellular Mobile Subscribers in AJ&K and NAs for Mar-08 are 172,531
Source: PTA 2008

According to the Pakistan Telecommunication Authority (PTA)

Industry Analysis Report 2007, out of 376 tehsils across Pakistan,
almost 77 percent are covered with mobile networks, bringing the
figure to 290.

In 2004 there were less than 2000 cell sites installed by all mobile
operators for provision of mobile services. Today total cell sites of all
mobile operators are more than 17,500.

The factors affecting favourable growth rate for telecom industry in

Pakistan are:
• High growth potential

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 • Forward looking telecom policy
• Investment friendly climate
• Good regulatory execution
• Acceptable political and economic situation

All these factors lead to growth of telecom industry in Pakistan. The

mobile density has been increased drastically. The table shows the
data of cellular mobile density and growth rate of industry.

CELLULAR MOBILE
DENSITY
Year Mobile Density
2000 0.22
2001 0.52
2002 1.16
2003 1.61
2004 3.29
2005 8.30
2006 22.21
2007 39.94
2008 54.70
July-2008 55.62
* Revised
Note: Including AJK & NAs
Source : PTA 2008
3.2. Competitor Analysis

3.2.1. Major Competitors

Today, Telenor faces the competition as follows:

Direct:

• Mobilink
• Ufone

31
 • Warid
• Zong

Indirect

• PTCL
• Calling card providers
• Wateen Telecom
• Worldcall wireless
• PTCL wireless
• Go CDMA
• Smaller WLL operators

32
Market share of Competitors

Market share of cellular companies in pakistan 2008

zong
4%
warid
17%
mobilink
37%

telenor
20%

ufone
source: PTA may,2008 22%

Mobilink

Mobilink’s share of market is down to 37percent. Mobilink is the

winner in the race to capture the lion's share of the mobile network
market, is Mobilink, with a notably higher volume of subscriptions
and a carefully targeted value-added services.

Ufone

The second largest operator in Pakistan is the Pakistan Telecom

operated U-fone, which had 16.16 million customers at the end of
2007. In terms of market share, it gained 22percent

Warid

33
Warid currently holds almost 17.29 percent market share in
Pakistani cellular industry, with 14.76 million customers as of April
2008.

Zong

China Mobile has injected more than $800 million into Pakistan’s
telecom sector after a landmark takeover of Paktel’s operations late
February 2007. Zong has been growing at a brisk pace, it has
captured a market of 4% in first few months of its launch with 5
million subscribers.

Competitors Goals
The collective goal of all the competitors of Telenor is to:
• Increase their market share by increased subscriber base.
• Increase network reliability and premium connectivity.
• Excellence in customer service
• Customer retention.
• Brand building.
• Seamless migration to the 3G technology.
• Ensure low cost operations

Competitors Strategies

34
The competitor’s strategies to compete in market and attain their
goals are as follows:
• Accuracy in billing
• Extensive coverage.
• Competitive pricing.
• New products for more market segments.
• Marketing initiatives.
• Expansion of high quality value added services.
• Strengthened GPRS/EDGE network.
• Use of a more contemporary style to give a more
approachable image
• Leveraging group knowledge building

Technology Analysis

Technical methods affecting industry

The current technical methods affecting the telecom and cellular
industry are as follows:
• 3G technology
• EDGE/GPRS
• Mobile broadband

Innovation

35
One of the competitive edge of Telenor is its innovation. Telenor
has work on the different innovative ideas for improving its services
and brand image in Pakistan. Following are some of the innovative
steps Telenor took:

Easy load
With entry into Pakistani market , Telenor was market leader in
introducing easy loads from rupees 10 to 1000 .

Largest EDGE/GPRS data network

Telenor Pakistan has taken the lead by offering host of data services
through Pakistan’s largest EDGE/GPRS data network. It offers
services like Mobile TV, Ask Telenor, Teledoctor, local and
international MMS, PicShare and wireless laptop connectivity,
providing greater benefit to the end user.

Using EDGE, operators can handle three times more subscribers

than GPRS, triple their data rate per subscriber, or add extra
capacity to their voice communications.

Mobile TV

Telenor Pakistan offers Mobile TV offer. The service enables

customers to watch TV content on their GPRS/EDGE-enabled
handsets anywhere, anytime. This is a unique and innovative
service in Pakistan, and at par with only a few other mobile
operators in the region.

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PixSense Multimedia Management Solution for Mobile
Subscribers

For the first time in Pakistan, Telenor’s PicShare service gives users
a unique new way of sharing their memories online and through
their mobile handset.
Telenor Pakistan, which has taken the leadership role in the industry
by offering a platform which helps its subscribers manage their
media transparently and also allows building of mobile user
communities thereby building a more lasting relationship with their
subscribers.

Telenor Pakistan & Opera Software

Telenor Pakistan and Opera Software have partnered to provide

users with a uniquely powerful and efficient Internet experience.
Starting immediately, Telenor Pakistan customers can surf the Web
with the revolutionary Opera Mini browser.

Environmental benefits

Telenor is the first in industry to have started using solar energy to

power a commercial site.

Crisis interventions

• Within hours of the most tragic catastrophe to hit Pakistan

in its history, Telenor Pakistan activated its efforts to help
the earthquake survivors.

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• Telenor Pakistan made a sizable donation to Shaukat
Khanum Memorial Trust in order to support the cause of
treating cancer patients.
• Telenor Pakistan contributed to a fundraiser for the
restoration of the historic Rohtas Fort.
• Telenor Pakistan, continuing with its efforts to provide
relief to the flood-affected people, has distributed food and
drinking water to almost 10,000 families in the badly-hit
areas of Sindh and Balochistan.
• The Corporate Responsibility unit recently teamed up with
Pakistan Red Crescent Society to help collect blood
donations from Telenor employees.

38
 Department worked during internship.

Departments in Telenor

I did my internship in the Telenor franchise Bank Road ,Saddar,

where following departments are currently working:
• Customer Care

Telenor franchise’s main department is customer care.

Satisfying customers queries and facilitating with products and
information is the task performed by this department.
• Sales and Distribution Department

Marketing department in Telenor franchise was responsible for

sales and distribution to business clients. Telenor franchise
expand sales by distributing sims to authorized dealers and
easyloads to small shops in vicinity of local people. Marketing
department keep a record of all such sales and provide the
business customers with latest offers and products to reach to
masses.
• Finance Department

The finance department was very small and looks after the
daily expenditures and sales of franchise. Payroll of the
employees is also made by this department. At the closing of
everyday the manager reports to Telenor Business centre on
mall road, Rawalpindi for the profits or losses.

Tasks performed at Telenor customer care Department.

39
During my six weeks of internship I performed many duties in
Telenor customer care department which added to my experience
and learning. All the tasks that I executed gave me a sense of
responsibility. Sometimes there was too much responsibility on me;
too much burden was there. At times things were slow, yet I wanted
to work more because I had blurred the lines between work and fun.
I performed following tasks and duties during my Internship:

Customer Service department

Telenor know how important it is that customers receive a

satisfactory service from their staff at all times. I was briefed by
customer care manager Ms. Irem Jafferey how to behave with
customers. Some of the important things in customers department
that I was told to do are:

• Be polite, helpful and treat customers with respect.

• Listen carefully in order to understand and respond to
customers needs.
• Give customers name and wear a name badge.
• Give them an explanation of customers actions
• Provide accurate product information on all Telenor
Pakistan services and products, and answer customer’s
questions correctly and quickly.
• Keep promises and be honest.
• Encourage customers to give their feedback.

Service Connection activation

40
Telenor customers deserve quick response when they first order
their services. Therefore to, assure that I filled the new connection
form by verifying information from customers NIC and the
customers ordering prepaid connections can have service activated
within a few minutes of fulfilling all the ordering requirements.

Easy load

At Telenor I did easy load for customers in the first few days of my
internship. Every transaction generates a number and I keep record
of all the transactions of the day. This information was used for daily
closing accounts of franchise.

Dispute Resolution

Telenor franchise efforts are focused on quick and appropriate

action that is necessary to solve the problem and satisfy customers.
My duty was to satisfy customers by providing proper information.
My supervisor guided me on every problem that came my way from
arrogant and rude customers to serious disputes.

Billing Information

I gave billing information to post pay customers by entering the

mobile number in data base of Telenor. I also reconnect the service
if due to delinquency, the service was disconnected. Billing and
other account information to settle any valid complaints was also
given to customers on request.

Security and Confidentiality of Information

41
Telenor make every effort to protect customers’ privacy and to
assure a secure network for the confidentiality of their information.
In addition customers’ personal information is safe with telenor and
be strictly guarded as per laws of Pakistan. For this purpose I was
given special lesson and I signed un undertaking for not disclosing
and misusing information.

Making Phone Calls for Confirmations

Meetings, seminars, trainings and dinners are held frequently in
Telenor where management throughout Pakistan is invited.. The
duty of HR Department is to invite employee usually through email.
My job was to make phone calls to the Management of Telenor
franchise reminding them about the meetings and confirming
whether they are going to make it or not. I handed over to my
supervisor, the names of all those people who wouldn’t be able to
come.

Data Entry
The customer care department daily receives different types of
forms and data including Sim registration forms, Sim replacement
forms, feedback forms, complaint forms etc. My task was to enter
the data in Telenor database.

Dispatching Letters
Telenor is a centralized organization in which every decision has to
go through the head office. So a lot of letters, applications and
recommendations were dispatched daily to Telenor head quarters to
Lahore, and Karachi. My supervisors only mentioned the city and it
was my job to write the postal address of Telenor office on an

42
envelope containing the document and deliver it at the reception to
be dispatched.

Managing Visitors
Many people came to visit the customer care department for
solution of their complaints. I gave information to the customers
and solve the problems by providing them effective and sufficient
guidance. In customer care department, customer is always given
more priority and respect, and we listen to them with all ears. It was
my duty to satisfy customers on their all queries regarding calling
call rates, package conversion, VAS, compatibility of handsets and
enabling GPRS on their number according to their requests.

Working with Documents

Office work is all about papers and documents. My supervisors
always required arranging and rearranging documents. I helped
them in their work by stapling and unclipping documents. I also
make many photocopies of documents. I also faxed papers and
documents all over the country and sometimes outside the country.
Scanning was also a everyday job for me, I used to scan documents
and papers and sometimes those documents were to be faxed to
other offices of Telenor.

43
Identification of a main problem
I was appointed for internship at a Telenor franchise at bank road
sadder .This franchise is also carrying out distribution activities for
the Telenor business centre mall road sadder.

The main problem this franchise faced is of a small place according

to the customer traffic. This franchise also caters the customers
from Fateh Jang . So a lot of people came with complaints and
problems to this franchise. The place to accommodate these people
is very much insufficient. There are no waiting seats for people, as a
result people have to wait while standing for their turns in long que
for long time periods. This creates a negative image of the
company.

Another problem with the franchise is that franchise has a limited

access on customer service database. Franchise can only perform
general customer care tasks like generation of new numbers,
complaint registration, solving minor issues like activating value
added services etc. call , sms or mms details and transferring of
number on other name and on other confidential issues franchise
has no access. So when some customers asks for such services
,franchise has to divert them to business centre .

Another problem faced by me and employees at customer care

department is of arrogant and rude customers. Special training is

44
given to people who are serving the customers directly. Staff at
customer care department was also not enough. Franchise is
dealing with so many customers each single day but due to small
place , no of employees is also few. This adds extra burden and
stress to the employees serving to customers. Some times this lead
to demotivation of employees. Also the shift timing is 8 hours which
makes customers representatives very tired as there are no official
breaks in between.

6. Findings
While working with Telenor , I learned practical knowledge of the
business world. I find it interesting to relate my bookish knowledge
with the practical things.
Following are my findings regarding Telenor :

• Telenor is the biggest investor in telecom industry with a

FDI of 2 Billion initially, 3.6 Billion to date and still
investing more.
• Currently according to PTA 2008 ,Telenor has a market
share of 20%.
• The company has created 2500 direct and more than
25000 indirect employment opportunities with 100,000+
retail outlets and 200+ franchises in addition. 99.9% of
these employment opportunities belong to Pakistanis.
• Telenor is an innovator , quality oriented and customer
focused company.

45
 • Telenor believes on good governance and corporate
responsibility.
• Telenor focus on reaching masses with extensive
distribution strategy.
• The Telenor outlook for 2010-2011 is :
 SIM penetration above 70%
 Market share above 25%
 EBITDA in mid thirties

Conclusion and Recommendations

Telenor Pakistan is the fastest growing mobile operator in
Pakistan.

Telenor Pakistan is committed to bringing true mobile innovation to

the under-served masses of Pakistan. Telenor Pakistan’s community
contributions have extended over the years to include education,
empowerment, enterprise, and environment - with special focus on
bringing the telecom promise within the grasp of the most
disadvantaged sections of the society.

The company has created 2500 direct and more than 25000 indirect
employment opportunities with 100,000+ retail outlets and 200+
franchises in addition. 99.9% of these employment opportunities
belong to Pakistanis.

Telenor is a place where one can live his dreams and pursue a
career that reflects his skills and passions. Telenor gives flexibility
for change, the opportunity to learn, and providing career options
with endless possibilities.

46
Some of the recommendations for Telenor according to my
understanding are:

 Franchise must be given full access on customer service

database of Telenor.

 There must be rewards and acknowledgement for the best

franchise in zone to increase motivation level of franchise
employees.

 Refresher courses for the staff are most important in any

international organization. All the employees of franchise
should have these courses according to their requirement.
Foreign experts can also be called for this purpose.

 Every year some of the employees should be sent for training

to other countries and employees from other branches or main
office should be brought here in the franchise. So that they can
observe the right things.

 There were too many internees in customer care department,

the company has to meet a certain quota of internees and this
load is maximum during summers. What this does is makes
the environment inefficient and extremely relaxed. This matter
requires attention.

 Such system should be designed that every employee who has

some problems with his supervisors can communicate it to the
higher management and some steps must be taken to improve
that.

47
 There was a fine line between employees and internees, and
though that is understandable, the system seemed much
closed at times.

 Because of better opportunities in market, a high turnover of

skilled human resource has been seen in Telenor . Serious
efforts are needed to arrest this trend. More and more
incentives should be given to the employees other than just
medical facility and paid leaves.

 The period of internship should be divided into the number of

departments in Telenor . The internee should be given
timetable mentioning the number of days he has to work at
different places in the office. Once in a while, in each
department internee should be given a lecture by the manager
of the department about operations of the department. This
would increase the learning of the internee.

 The fact that there were two sales offices in the building (one
on the 2nd floor and one in the ground), led to work related
confusion and hence mishaps. Proper communication and
planning should be there.

 Distribution of work is not on equity basis in franchise, work

has not been allocated properly some workers have to work
hard and have to work in late hours without any extra reward.
So I suggest that steps should be taken to allocate the work
properly.

48
 All the employees in the customer care department are over-
burden with work and responsibility. The customer care
department requires more employees.

 When a new employee becomes a part of Telenor , he is not

properly oriented. Telenor has this policy of orientation but it
only includes visits to departments and knowing about the
policies and rules of the company. I suggest a proper
orientation and socialization session should be there for a new
employee so that he may feel comfortable with his new
organization.

 The late seating of employees has been observed in Telenor

franchise distribution department and many employees work
overtime after office hours. They should be properly
compensated for their work especially during the overtime
period. This would be encouraging for all the employees.

49
 Special thanks to:

Ms. Irem Jaffery

Telenor Customer relations Manager

Customer Care Department

Telenor franchise, Bank Road, Saddar

Mr. Arshad Noori

Telenor Sales Supervisor

Mr. Usman Hassan

CW & PWR IMPL NORTH

References:

www.telenor.com
www.telenor.com.pk
www.pta.gov.pk

50
7. Appendix

51
Annexure

Key financial figures - Telenor Pakistan

52
Annexure

source: capital markets day 2008.

53
Annexure:

Telenor product line :

54
55
Annexure
Mobile operators and the markets in which
Telenor operates.

Bangladesh Denmark

Hungary Malaysia

Montenegro Norway

Pakistan Russia

Serbia Sweden

Ukraine

Thailand

56
Annexure

Top management of Telenor

Jon Eddy Abdullah, Chief Executive Officer

Jon Eddy Abdullah has more than 15 years of experience in the telecommunications
industry. He has been working with both infrastructure vendors as well as several mobile
operators, most recently as Chief Operating Officer in Maxis Telecommunications,
Malaysia, and Chief Technology Officer DiGi Malaysia. Jon holds a Bachelor of Science
(Electrical Engineering) from Montana State University, USA.

Irfan Wahab Khan, Executive Vice President Corporate Affairs & CEO LDI

Irfan heads the Corporate Affairs & CEO LDI Division and supervises the Regulatory &
Interconnect, Legal Affairs, Public & Government Affairs, and Corporate Communications
departments. He has extensive international experience of working in the mobile cellular
industry having worked with Orange UK, T-Mobile USA, Telecordia Technologies USA,
Nortel Networks, Ericsson Philippines, and the Ministry of IT & Telecommunications
Pakistan. Irfan has served as a Director on PTCL's Board and was Vice Chairman of GSM
Alliance, North America. Irfan Wahab Khan has an MSc in Mobile Communications from
the University of Westminster, UK.

Lars Christian, Chief Marketing Officer

Lars-Christian Iuel rejoins the Telenor Group following a two-year stint with Cell One,
Namibia's well-known mobile operator. He was appointed Cell One's CEO in 2007 from
his previous position as the company's CMO. Lars was Senior Executive Vice President,
Private Products, Telenor Nordic when he left in 2006. He joined Telenor ASA in 1996.
With 12 years management experience Lars has a wide range of knowledge of the industry.
He has a Cand. Merc (MBA) from University of Aalborg, Denmark, an MBA from
University of Sheffield, UK, and can speak English, Norwegian, Danish and German.

Peter Dindial, Chief Technical Officer / Vice President Technical Division

Peter heads the Technical Division which comprises the Network Planning & Design,
Implementation, Operations & Maintenance, Real Estate & Site Acquisition, Technology
and Strategy, and E2E QA departments. He was previously responsible for the
development of the Real Estate & Site Acquisition department. He has been Operational
Advisor to CEO Telenor Pakistan, and has worked on a broad range of commercial and
technical operational issues. He has also been responsible for managing the CEO's Office.
Prior to joining Telenor Pakistan, Peter was the Chief Operational Advisor for Promonte,

57
Telenor’s operations in Serbia and Montenegro. Peter began his career with British
Telecom (BT) in the UK where he worked for nine years. He spent the next 10 years on
various international assignments including working with StarHub in Singapore and
Ericsson in Malaysia. Peter Dindial has an MBA, and a BA in Business and Finance from
the University of South Bank, London.

Khalid Shehzad, Chief Information Officer / Vice President IT Division

Khalid heads the Information Technology Division and manages the Business Support
System, IT Operations, and IT Security departments. Before joining Telenor Pakistan as
CIO in June 2004, Khalid worked in Tanzania as a CIO for Celtel International which
caters to both mobile and fixed line customer needs. Khalid has the distinction of being
noted as IT Director of the Year for Western Wireless International in 2000, and Employee
of the Year at Millicom International in 1996. He began his career 14 years ago, and has
worked extensively in the international telecom sector with companies such as Motorola,
Millicom, AT&T Wireless, Western Wireless, Celtel Intl, and with Ufone. Khalid Shehzad
has a BSc in Computer Sciences from UCLA USA and an MBA from IBA Karachi.

Peter Kuncewicz, Chief Finance Officer / Vice President Finance Division

Peter heads the Finance Division and supervises the Business Planning & Finance,
Accounts, Procurement, Treasury, Financial Operations, Revenue Assurance & Fraud
Management, Credit Control, and SOA departments. Peter comes from a CFO / CIO's
position from Star Foods S.A. Poland, an FMCG company, where he worked from 1996 to
2006. He held the position of Controller Procurement and IT Project Manager at Bahrain
Telecommunications from 1987 to 1996. Peter also has experience in the building
materials, electronics and pharmaceutical industries. He is a member of the United
Kingdom Chartered Institute of Management Accountants. Peter Kuncewicz has an MSc in
Business Planning and Finance from the University of Salford, England, and a first degree
in Biology from the University of Sussex, England.

Nayab Baig, Vice President Human Capital Division

Nayab heads HC Division and oversees the People Excellence & Business Process
Improvement, Safety and Security , and Organizational Support Services departments. He
has extensive human resource management experience having developed performance
planning, management and evaluation systems in addition to introducing developmental
activities at Packages and Unilever Bestfoods in the past. He has headed the HR
departments of Packages Ltd., Unilever Bestfoods, SHV, and Avari Renaissance Hotel.
Nayab Baig has an MA in Human Resource Management from the University of
Westminster, UK.

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59