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Contents

Chapter # Topic Page#


1 1
Introduction to Marketing
Concept of Marketing 1
Evolution of Marketing 2
Modern Marketing 4
Definition of Marketing 5
Main steps in Marketing Process 6
2 Introduction to the telecom 7
sector of Pakistan
Restructuring of PTCL 8
Mobile policy 2004 & tender 9
Telecom market overview 10
PTA & the development of Telecom 11
sector
Development of telecom sector in 15
Pakistan
Growth of telecom sector in Pakistan 20
3 A brief Introduction about 23
Mobilink and Paktel
About Mobilink 23
Vision 24
Values 24
Achievements 25
Human Resources 25
History of Paktel 26
Why Paktel 28
4 Introduction to GSM and 29
coverage of Mobilink
What is AMPS 29
What is GSM 29
Coverage of Paktel 30
Coverage of Mobilink 30
Comparison 31
5 Current mobile cellular 32
Landscape in Pakistan
Pakistan Mobile communication 32
Paktel Ltd 32
Pak telecom Mobile 33

1
Pak com LTD. Instaphone 33
Telenor 34
Warid Telecom 34
6 Designing Marketing Mix & 35
Customer segmentation
Marketing Mix 35
Target Market 36
Market segmentation 37
7 39
Price
What is Price 39
Pricing Segmentation 39
Mobilink‘s Packages 40
Prepaid Packages 40
Post-paid Packages 44
Paktel Packages 46
Prepaid Packages 46
Postpaid Packages 47
Comparison 48
8 50
Product
What is product 50
Mobilink‘s product 50
Prepaid 50
Postpaid 51
Value added services 52
Paktel‘s products 55
Prepaid Packages 55
Postpaid Packages 55
Value added services 57
Comparison 61
9 63
Promotion
Objectives 63
Advertising 64
What Mobilink communicates 64
What Jazz communicates 65
Brand identity 66
Advertising of Paktel 67
Communication of Paktel 68
Tango 68
Comparison 69
Publicity 71
2
Advertising versus Publicity 72
Sales Promotion 72
10 75
Place
Place strategy 75
Types of channels 75
Comparison 76
Marketing channels 78
11 Various strategies adopted by 79
Mobilink & Paktel
Competitive advantage 79
Winning Marketing Practices 80
Competitive advantage of Paktel over 81
Mobilink
Competitive advantage of Mobilink 81
over Paktel
Marketing strategies for competitive 82
advantage
Market leader strategies 82
Market follower strategies 83
BCG Matrix 84
12 Overall comparison 85
13 Results of our survey 89
14 SWOT Analysis & 90
Recommendations
Conclusion

3
Marketing, in economics, that part of the process of production and exchange
that is concerned with the flow of goods and services from producer to
consumer. In popular usage it is defined as the distribution and sale of goods,
distribution being understood in a broader sense than the technical economic
one. Marketing includes the activities of all those engaged in the transfer of
goods from producer to consumer—not only those who buy and sell directly,
wholesale and retail, but also those who develop, warehouse, transport, insure,
finance, or promote the product, or otherwise have a hand in the process of
transfer. In a modern capitalist economy, where nearly all production is
intended for a market, such activities are just as important as the manufacture
of the goods.
Concept of Marketing
Simply stated, the marketing concept means that an organization should seek
to make a profit by serving the needs of customer groups. The concept is very
straightforward and has a great deal of commonsense validity. Perhaps this is
why it is often misunderstood, forgotten, or overlooked.

The purpose of the marketing concept is to rivet the attention of marketing


managers on serving broad classes of customer needs (customer orientation),
rather than on the firm‘s current products (Product orientation) or on devising
methods to attract customers to current products (selling orientation). Thus
effective marketing starts with the recognition of customer needs and then
works backward to devise products and services to satisfy these needs. In this
way, marketing mangers can satisfy more effectively in the present and
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anticipate changes in customer needs more accurately in the future. This
means that organizations should focus on building long-term customer
relationships in which the initial sale is viewed as a beginning step in the
process, not as an end goal. As a result, the customer will be more satisfied and
the firm will be more profitable.
The principal task of the marketing function operating under the marketing
concept is not to manipulate customers to do what suits the interest of the
firm, but rather to find effective and efficient means of making the business do
what suits the interests of customers. This is not to say that all firms practice
marketing in this way. Clearly, many firms still emphasize only production and
sales. However effective marketing, as defined in this text, requires that
customer needs come first in organizational decision making.
One qualification to this statement deals with the question of a conflict
between consumer wants and societal needs and wants. For example, if society
deems clean air and water as necessary for survival, this need may well take
precedence over a consumer‘s want for goods and services that pollute the
environment. In short concept of marketing is
choosing and targeting appropriate customers
positioning your offering
interacting with those customers
controlling the marketing effort
continuity of performance
Evolution of Modern Marketing
The origins of marketing can be traced to people's earliest use of the
exchange process: barter (trading one resource for another-- for example, food
for animal pelts). To accommodate the exchange process, trading posts,
travelling salesmen, general stores, and cities evolved along with a national
monetary system.
During the later 1800's the Industrial Revolution marked the beginning of
the modern concept of marketing. Until this time, exchanges were limited
because people did not have surplus items to trade. With the onset of mass
production, better transportation, and more efficient technology, products
could be manufactured in greater quantities and sold at lower prices. People
began to turn away from self-sufficiency (such as making all of their clothes) to
purchases (such as buying a new suit or dress). Improved transportation,
densely populated cities, and specialization also enabled more people to
participate in the exchange process.
During the initial stages of the Industrial Revolution, output was limited and
marketing was devoted to the physical distribution of products. Because
demand was high and competition was low, companies did not have to conduct

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consumer research, modify products, or otherwise adapt to consumer needs.
Their goal was to increase production to keep up with demand. This was
known as the Production Era of marketing.

Once a company was able to maximize its production capabilities, it hired a


sales force to sell its inventory. At first, while the company developed its
products, consumer tastes or needs received little consideration. The role of
advertising and the sales force was to make the desires of consumer fit the
attributes of the products being manufactured. For example, a shoe
manufacturer would produce brown wingtip shoes and use advertising and
personal selling to convince consumer to buy them. The manufacturer would
not determine consumer tastes before making shoes and adjust output of those
tastes. This was known as the sales era of marketing.
As competition grew, supply began to exceed demand. A firm could not
prosper without input from marketing. A marketing department was created.
It conducted consumer research and advised management on how to design,
price, distribute, and promote products. Unless the firm adapted to consumer
needs, competitors might be better able to satisfy consumer demand and leave
it with surplus inventory. Although the marketing department participated in
company decisions, it remained in a subordinate or conflicting position to
production, engineering, and sales departments during this period of evolution
in marketing. This was known as the marketing department era.
In the past twenty years, many firms have recognized the central role of
marketing; and the marketing department has become the equal of others in
the company. At these firms, major decisions are made on the basis of
thorough consumer analysis. Competition is intense and sophisticated.
Consumers must be drawn and kept to the firm's brands. Company efforts are
integrated and frequently re- evaluated. This is known as the marketing
company era.

6
Modern Marketing
At all points of the modern marketing system people have formed
associations and eliminated various middlemen in order to achieve more
efficient marketing. Manufacturers often maintain their own wholesale
departments and deal directly with retailers. Independent stores may operate
their own wholesale agencies to supply them with goods. Wholesale houses
operate outlets for their wares, and farmers sell their products through their
own wholesale cooperatives. Recent years have seen the development of
wholesale clubs, which sell retail items to consumers who purchase
memberships that give them the privilege of shopping at wholesale prices.
Commodity exchanges, such as those of grain and cotton, enable businesses to
buy and sell commodities for both immediate and future delivery.
Methods of merchandising have also been changed to attract customers. The
one-price system, probably introduced (1841) by A. T. Stewart in New York,
saves sales clerks from haggling and promotes faith in the integrity of the
merchant. Advertising has created an international market for many items,
especially trademarked and labelled goods. In 1999 more than $308 billion
was spent on advertising in the United States alone. The number of customers,
especially for durable goods, has been greatly increased by the practice of
extending credit, particularly in the form of instalment buying and selling.
Customers also buy through mail-order catalogs (much expanded from the
original catalog sales business of the late 1800s), by placing orders to
specialized ―home-shopping‖ television channels, and through on-line
transactions (―e-commerce‖) on the Internet.
Services are marketed in much the same manner as goods and commodities.
Sometimes a service, like that of a repair person or physician, is marketed
through the same act that produces it. Personal services may also be brokered
by employment agencies, booking agents for concert or theatrical performers,
travel agents, and the like. Methods of marketing now include market research,
motivational research, and other means of determining consumer acceptability
of a product before the producer decides to manufacture and market it on a
large scale.

Definition of Marketing
Marketing includes identifying unmet needs; producing products and
services to meet those needs: and pricing, distributing, and promoting those
products and services to produce a profit.
‗Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably‘

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The Chartered Institute of Marketing
‗The right product, in the right place, at the right time, and at the right price‘

Adcock et al
‗Marketing is the human activity directed at satisfying
human needs and wants through an exchange process‘
Kotler 1980
‗Marketing is a social and managerial process by which individuals
and groups obtain what they want and need through creating,
offering and exchanging products of value with others‘
Kotler 1991
Simply put
Marketing is delivering customer satisfaction at profit.
Implications of marketing
Who are our existing / potential customers?
What are their current / future needs?
How can we satisfy these needs?
Can we offer a product/ service that the customer would value?
Can we communicate with our customers?
Can we deliver a competitive product of service?
Why should customers buy from us?
Successful marketing requires:
Profitable
Offensive (rather than defensive)
Integrated
Strategic (is future orientated)
Effective (gets results)

Some Misconceptions about Marketing


Misconceptions about Marketing
Marketer create needs, manipulate people to buy something they don't
want
Marketing = selling = advertising
Marketing = shoes polishing
Customer will favour those products that offer the most quality,
performance & innovative feature

8
The main steps in Marketing Management Process
Marketers see the marketing management process as consisting of five basic
steps that can represented as:
R STP MM I C
Where:
R = Research (i.e., market research)
STP = Segmentation, targeting, and positioning
MM = Marketing mix (getting known as the four P‘s .i.e. product, price,
place & promotion)
I= Implementation.
C = Control (getting feedback, evaluating results, and revising or improving
STP strategy and MM tactics

9
An overview of Pakistan’s telecom sector
Pakistan is a huge potential market that appears to be approaching the
tipping point of achieving rapid and sustainable growth. The government
recognizes that the low level of network penetration is an obstacle to broader
reforms of the economy and is deliberately moving to create a disciplined and
positive investment climate for the sector.
The Pakistan Telecommunication Authority is executing three bold changes:
introducing open licensing for basic services; restructuring the dominate
carrier, PTCL, with an eye towards swift privatization and introducing two
new mobile services providers in 2004 to complement the four existing
players already in the field.
Telecom policy environment
For many years Pakistan adopted a traditionalist approach to the
telecommunication sector. The state monopoly served as a cash cow: rate
rebalancing was largely ignored; international traffic was constrained;
investment was directed disproportionately towards rural areas; and taxation
on both carriers and consumer devices slowed market demand. Pakistan has
recently embraced drastic steps to reform the sector, best captured as three
broad themes:
Opening the market for basic fixed line services to competition through
minimal licensing requirements,
Renewing efforts to restructure and privatize Pakistan
Telecommunication Company Limited (PTCL), the incumbent operator;
and,
Updating its mobile sector policy, including introducing two new
operators in 2004.
While the changes are positive, Pakistan remains cautions in its approach to
industry reform. Whereas many countries are adopting unified licenses, and
genuinely technology neutral regulation, Pakistan has chosen to segment the
market according to local, long distance and mobile services. This
segmentation will create artificial distinctions between service types, skewing
both market demand and efficient distribution of investment capital.
The bench mark legislation for telecom is the Pakistan Telecommunication
(Re-organization) Act 1996. The law established the regulator, the

10
Pakistan telecommunication authority, PTA, created PTCL as statutory
corporation (which was later partially privatized through a public market
listing) and granted PTCL a monopoly over basic services until December 31,
2002. among others matters, the PTA was initially embedded within the
ministry of Information. With the appointment of current PTA chairman,
Major General (Retired) Shahzada Alam Malik in 2001, the PTA has
exerted its identity as an independent force.
Restructuring of PTCL
The government‘s efforts to restructure and privatize PTCL have been on-
again off again since 1991. It had an offer in the late 1990s for 26 percent
equity, reputedly totalling $3 billion, but held out in negotiations and
ultimately missed the unique global market window at that time.
PTCL and the government are contemplating different strategies options for
restructuring. Plans have been vetted for both a geographic and functional split
of operations. Analysts believe the most likely scenario is a break up into three
new companies, tracking with the firm‘s largest business units: local, long
distance and mobile. This approach mirrors the policy environment fashioned
for new competitive entrants.
From the government perspective, breaking up PTCL prior to sell-off will
help curtail the market power of any one single service provider, thereby
stimulating competition. Unbundling the sale will also likely increase revenues
for the government. The risk, of course, is that the mobile company PTML
(branded as “Ufone”), is proportionately more attractive than the other
business. According to AKD securities, PTML’s contribution of PTCL total
revenues is expected to rise to 12.5% over the next five years – and contribute
39% of PTCL‘s overall revenue growth. Future growth of mobile sector, both in
terms of subscribers and net revenue, will almost certainly outstrip demand for
fixed line services.
The target is to sell up to a 26% stake in PTCL; the government currently
holds 88 % of shares. Some estimates place the value of the tranche at around
$1 billion PTCL‘s net profit for the year ending June 2003 was 23 billion
rupees ($400 million).
Splitting up PTCL could take at least two years or longer, complicating hopes
for a quick disposal. Leading international investors that have publicly stated
their interest in the sale include Singapore Telecommunication Ltd.
Egypt orascom Telecom Holding, Saudi firm Oger and the Menara
Telecom consortium.
PTCL needs a fundamental shakeup of its corporate culture, and a massive
reduction in staff. A criminal proceeding began in march 2004 involving

11
senior PTCL and Mutt representatives regarding a 305,000 line network
between PTCL and china wan bao/ZTE dating from 1998.

Mobile policy and 2004 Tender

On February 9, 2004, the PTA released an Information Memo random


announcing the tender for two additional mobile cellular licenses to
complement the four operators already in service. It also began circulating a
draft mobile cellular sector policy that out-lines the government‘s strategies
objectives. An auction was held on April 14, 2004 with winning bids
submitted by Norway based Telenor and UAE-based Warid Telecom. The
license fee is 291 million, estimated to be equivalent to approximately 28
times current monthly subscriber revenues.
While nominally a technology neutral competition, it is evident that the
government is taking a managed, interventionist approach to market forces.
The mobile tender made available 27.2 MHz of spectrum in the 900 MHz
and 1800 MHz frequency bands that are characteristically reserved for GSM.
Only minimal frequency was being made available in bands that support
CDMA or alternative technologies such as PHS. No allocation was made at
800 MHz and only 5 MHz of spectrum was allocated in the 1900 MHz
band.
The government appears to have adopted a “pro-GSM” strategy to the
deliberate exclusion of CDMA. In late 2003 the government approved for use
the Extended GSM (E-GSM) band at 890 MHz – 894.8MHz. E-GSM is a
seldom–developed technology scheme that does not have wide spread vendor
support. It also encroaches on frequencies that are more efficiently applied for
wire less local loop or full mobility services engineered explicitly for the 800
MHz band.
Americans firm of course produce systems for both GSM and CDMA are
positioned to compete as local market dynamic warrants. The more serious
policy issue is that the government is not enabling market force to flourish.
Instead, the bureaucracy is picking de facto technology standard through
bandwidth allocation, and is determining hoe radio source will be used.
It bears nothing that GSM provides are currently not allowed to deploy fixed
WLL applications, despite the technology‘s inherent ability to do so. In the
end, the government‘s own strategic objective of quickly raising tele density
from the current 2.9 % will be undermined by failing to encourage a market-
oriented spectrum plan.
Additionally, the spectrum policy does not encourage market innovation with
new technologies. For example, there is not now explicit provision for
unlicensed spectrum such as WiFi and similar bands, nor is there specific
12
endorsement of a petition process for industry participant to request new
allocation based on emerging technologies. By settling on a traditionalist
approach, the government is at risk of artificially constraining wireless
network supply, creating unnecessarily high service charges, and depriving the
economy of much needed stimulus from lower communication cost.
Government officials maintain that the current spectrum allocation plan is
the result, in part, of a past lack of discipline in making assignments. For
example, PTCL currently holds 40 MHz of spectrum 1900 MHz that it is
using for trunk microwave radio. The company will be required to retire some
of that capacity. Paktel, a GSM operator, will relinquish 20 MHz at 890
MHz.
The military will also free about 5 MHz of spectrum in the 800 MHz band,
opening up and estimated 25 MHz by 2005. All will be compensated by the
government.
Bringing structure to frequency assignments is highly commended, and a
proposed band plan and frequency monitoring for the Frequency Allocation
Board will be valuable. In the near term, however, the government is enacting
policy and defining the scope of market opportunity on the basic of narrow and
restrictive interpretation of technology potential.
As significant, the government has chosen to adopt an auction for the
spectrum in the current tender. Industry observers expect bids of $100
million, and some estimates for the value go much higher. Existing operators,
who obtained their frequencies through allocation, will be required to make
retroactive payment to match the new bids. The government thus hopes to
raise at least $600 million and possibly more, through the competition. The
government appears to clinging to its historical tendency of treating telecom as
an income source. Recent experience in global markets suggests that the
spectrum auction will constrain capital available for infrastructure expansion,
raise real costs of service, and dampen expansion by existing service providers.
Some observers expect litigation from one or more of the existing operators.
The government believes, however, that the transparency associated with an
auction process out weights potential abilities.
The net effect of introducing addition mobile competition is to in crease
mobile density from the current level of 2.3 percent. The PTA believes that
mobile customer base could increase 3 to 4 percent per year and mobile
phone density reach more than 10 percent in a few years time.

Telecom market Overview

13
As of November 2003, Pakistan had just over 4 million fixed telephone
lines in service, yielding a tele density of approximately 2.9%. The low
penetration is widely regarded to be a major impediment to economic growth.
PTCL installed around 1.19million fixed lines since June 2001 and plans to
add 690,000 new subscribers over the next two years; it is by far the
dominant operator.
The National Telecommunication Corporation (NTC) handles Government
and military communication and has nationwide presence with 72,000
customer access lines and a nationwide fiber backbone.
Additionally, the special communication organization (SCO), established I
1976, provides public network services to politically sensitive regions such as
the Azad Jammu and Kashmir and Northern areas. SCO operates a
network of about 60,000 lines.
According to PTA, as of 2002 total financial turnover for the sector was 2.2
billion. Of this, PTCL accounted for approximately 79%,mobile companies
earned 13 % ,internet service providers had 4 percent , and pay phone
companies (of which there are over 177 operators running 129,000 PCO
booths), 3 percent.
As estimated 60 to 70 percent of the population in rural areas has no
access to telecom services. According to the De-Regulation Policy, PTCL is
obliged to install no fewer than 83,000 new lines per annum in rural areas
and under served areas until end 2008. PTCL plans to widely adopt CDMA
WLL to accelerate build-out in rural areas.
In addition to PTCL, and the new franchises expected, Tele Card is pursuing
the fixed line market with CDMA wireless. The company, led by the Arfeen
Group, started as a pay phone operator in 1992, and has introduced public
call offices nation-wide. It went public in 1995 and became the first listed,
privately-owned telecom operator in Pakistan. Lately, it has established a joint
venture with Pakistan Telecommunication Company. To install and operate a
wire less local loop network. The project will be implemented in three phases,
at a total estimated cost of $126 million.

PTA and the Development of telecom sector


Pakistan Telecommunication Authority (PTA) was established under
Pakistan Telecommunication Reorganization Act 1996. The broad
objectives of the Authority are to promote availability of efficient and cist
effective telecom services and regulate the establishment, operation and
maintenance of modern telecommunication systems in Pakistan.
The authority is also responsible to watch the interests of consumers by
ensuring high quality service at affordable rates. Pakistan telecommunication

14
industry is in the process of transformation, spurning the age old state owned
monopoly to a deregulated competitive structure. PTCL‘s exclusivity for the
provision of basic telephony has virtually been abolished with the
announcement of de-regulation policy on 13th July, 2003. As such there is an
ample room for the expansion of telecom sector to meet the growing demand
of the people for telecom systems and services.
Tele density in Pakistan stands at 2.8%, which is quite low compared to
international standards. In contrast with urban localities, tele density in rural
areas of Pakistan is quits negligible. Over the years, PTA has taken concrete
steps and provided a number of incentives to the investors for the growth and
development of telecom sector. A liberal, transparent and non-
discriminatory licensing policy is being followed by PTA to provide a
liberalized environment for the promotion of telecom systems and services.
PTA‘s open licensing policy for value added services aims at fording a level–
playing field to all stake holders. PTA has issued a total of 521 licenses for
telecom services till May 2004. Out of these, 127 licenses were issued for
Electronic Information Services (EIS), 30 for non voice communication
network services, 275 for card pay phone services, 25 for data communication
services and one for video conferencing. Similarly, 22 HF/VHF/UHF private
land mobile/fixed, 6 in mar sat/satellite phones and 12 amateur licenses were
issued during the current year. Six satellite companies also registered
themselves with PTA.
The most significant development in the cellular market was the introduction
of Calling Parties Pays (CPP) regime, making incoming calls free on mobile
phones. This has changed the market scenario dramatically.
The customer based jump from 0.3 million in June 2000 to 3.87 million
in February 2004. PTA gave incentives to the operators by reducing royalty,
decreasing interconnection charges and airtime tariff. All these factors made
mobile phone affordable for a common man.
As a result, PTA accomplished the task of awarding two more licenses
through open and transparent bidding held on 14th April 2004.
Two licenses were issued at a total cost of US $582 million to the highest
bidders, M/S Telenor, a Norwegian telecom giant and UAE based Warid
telecom on 26th May 2004 after payment of 50 % of the total bidding by each
company.
Remaining 50 % of the bid amount will be deposit by the companies in equal
instalments in 10 years. The license awarding ceremony was witnessed by the
president General Pervaiz Mushrarraf, who expressed satisfaction at the
bidding process and hoped that the two companies would provide best and
affordable services to their subscribers in Pakistan.

15
Later, in a press conference the companies‘ representatives spelling out their
business plans stated that each company would make an investment of US $1
billion in the next couple of year as part of their business strategy.
Induction of new operator in fixed line telecommunication serves will
immensely increase tele density and bring at par with the regional countries in
5 years. The authority reduced air time tariff ceiling from 1st May 2002 to
Rs. 5.75 per minute.
CPP charges were also reduced from Rs. 3.68 to Rs. 3.22 per minute
(including GST). Reduction in CPP charges was aimed at providing some relief
to the fixed-line users for their calls addressed to the mobile networks.
Similarly, a considerable relief was provided to the cellular mobile operators
through reduction in PTCL‘s lease line and PTA‘s spectrum and royalty charges
in consideration of the fact that the industry should also share the relief with
the service users.
PTA also accorded approval to the reduction of fixed line call charges, giving
relief up to 23 % to the consumers. Besides, approval was also accorded to the
reduction of installation charges for urban and rural areas up to 73%.
To monitor performance of the service providers, the authority conducts
surveys from time to time to ascertain the quality of service (QOS) of cellular
mobile operators (CMTs) as well as those of Internet Services Providers
(ISP).
PTA has extended a number of incentives to the service providers for the
promotion of the industry.
For this purpose royalty payable by the cellular mobile operators under their
respective license was reduced from 4% to 0.5% of gross sales revenue minus
PTCL call charges and lease line charges.
PTA also facilitated interconnects arrangement among the four mobile
operators to enable mobile phone subscribers to send and receive SMS from
any mobile company in the country to the network of any other operator.
Besides, PTA reduced type approval fee from 55 to 33% on local
manufactured and imported equipment respectively.
The authority is striving hard for creating an enabling atmosphere and
providing a level playing field to the prospective investors well as expansion
and growth of this vital industry so that a common man could benefit from the
use of telecom facilities not only in urban areas but also in the remote and far
flung areas of country.
Mobile Phone Users Increasing

16
There was a time when obtaining a telephone connection for one‘s residence
or office took 5 to 10 years, besides extra ordinary efforts and use of powerful
approach in relevant quarters. Now the time has changed and due to entry of
mobiles and wireless phones companies people get telephone connection
within a few hours. Ten years age the concept of mobile, cellular and wireless
phones were something we only saw in the movies, or they were available to
very privileged. Each year, statistics shows that, on average since 2002,
10,000 people are getting connected to mobile phone networks around the
country.
Mobile phone is now everywhere. Large number of students in colleges,
universities and technical institutions and employed persons even in lower
grade businessmen, tailors, passengers in rickshaws, doctors are using it. It has
helped doctor make effective decisions everyday. People seem to be getting
more and more linked to this expending network of communication, and with
endless packages available.
Pakistan cellular industry started in mid-1990s after the government of
Pakistan, through the ministry of communication, issued two licenses to set up
and operate national cellular telephone network in the country.
The first of such licenses was awarded to Pakcom limited, operating under
the brand name of ‗Instaphone‘ and second one to Paktel limited, a joint
venture company, majority of it owned and operated by cable and wireless
PLC. Both companies were awarded these licenses for an initial period of 15
years. Both setup advance mobile phone services (AMPS) an analogue
standard based network covering a large part of urban Pakistan, subsequently,
Instaphone installed a digital version of analogue technology D-AMPS
whereas Paktel has recently been awarded GSM license for an initial period
of two years. The state telecoms regulator believes there is ―a huge unmet
demand‖ for mobile phones in Pakistan‘s 145 million people.
At present Pakistan has a fixed telephone penetration rate of 2.7. Telephone
lines per 100 people. After deregulation, the land line telephone penetration
is expected to raise 5.6 % or 9.0 million lines by the yeas 2010.
Pakistan currently has four mobile operators: Mobilink, Ufone, Paktel
and Instaphone. Two cellular companies currently operate analogue mobile
phone systems (APMAS) while two other run GSM network in Pakistan. The
total subscriber base was 3.8 million as on February 29, up from 1.4
million in June 2003.
The government is keen to expand the number of mobile users to at least 15
million, as part of its plans to attract upon $1.5bn worth of telecoms
investment in the next three years. At present the private sector owns more
than 80 percent of the market share, and would own even more the once
expansion plans are fully implemented.
17
Development of ICT in Pakistan
For long the planners failed to recognize the importance of
telecommunication in the economic development. It was assigned a very low
priority in the development program. Consequently international financial and
donor agencies sponsoring tele communication projects in a big way as a
crucial part of development. This was the era when the world was awakening to
the diminishing state of non renewable resources. It was established by various
independent studies that excessive and inequitable use of such resource was
having adverse effect on the environment and was cause of rampant and ever
increasing poverty in the world.
Key source of fossil energy and fresh water are fast decreasing and may cause
catastrophic consequences for the humanity if suitable mitigating steps are not
taken to address the issue. Therefore arose the concept of sustainable
development which emphasizes judicious and conservative use of these
perishable resources. Creating awareness of the concerns and consequent
threat to the mankind, it was recognized early on, was the function of poverty
alleviation, and delivery of health care and education to the disadvantage
sections and regions of the society. The telecommunication thus assumed
increasing importance in the milieu. Emergence of internet impacted the
situation in way undreamt of hitherto. It opened new vistas of ubiquitous
availability of information. Knowledge, expertise & distribution channels for
marketing.
The problem was, however, there existed wide gap of availability of digital
access to the telecommunication which was pre-requisite for exploiting the
benefits of information-society. This was recognized as a digital divide. Intense
negotiations, spanned over a period of two years following Tokyo Declaration,
in a multi stakeholder process that included governments, intergovernmental
agencies, NGOs, businesses and the media, a Declaration of principles and an
action plan was agreed at summit. The 1100 delegates agreed on the
―importance of ICTs as an essential requirement for an inclusive information
society and embraced the idea of universal, accessible, equitable and affordable
ICT infrastructure & services as a key goal‖.
The following aspects may be taken into account in the establishment of the
national targets, considering the different national circumstances:
1. Connecting villages with ICTs and establish community access points;
2. Connecting universities, colleges, secondary schools and primary schools
with ICTs;
18
3. Connecting scientific and research centres with ICTs;
4. Connecting public libraries, cultural centres museums, post offices and
archives with ICTs;
5. Connecting health centres and hospitals with ICTs;
6. Connecting all local and central government departments and establish
websites and email addresses;
7. Adapting all primary and secondary school curricula to meet the
challenges of information;
8. Society, taking into account circumstances;
9. Ensuring that all of the world‘s population has access to television and
radio services;
10.Encouraging the development of content and to put in place technical
conditions in order to facilitate the presence and use of all world languages
on the internet;
11.Ensuring that more than half the world‘s inhabitants have access to ICTs
within their reach.
Ministry of IT&T and PTCL have been conscious of the potential role of ICT
in the development of the country from the very out set. The present
government and especially the Minister of IT&T has been actively engaged in
expanding the reach of ICT in the country.
Following are some of the policy initiatives taken by the ministry to bridge the
digital divide:
Proclamation of Deregulation policies for fixed and mobile telephony
services, in pursuant whereof process for granting licenses to new
mobile, Long Distance & International (LDI) and Local Loop
operators is on the anvil.
The objective is to provide affordable telecommunication services with a
view to enhancing the teledensity in Pakistan which is the measure of
narrowing of digital divide.
The public sector universities have been inter linked via an educational
intranet. They have as well been assisted to set up their in house ISP
operations for the benefit of their student and academic community.
An E-government initiative has been launched to help Federal and
Provisional government departments and agencies to transact their
business using internet/intranet. This provides easy access to public to
access information and services rendered by the government.

19
Legal frame work is being put in place to create enabling environment
for E-business in consultation with all the stake holders.
Promotion of IT education in Pakistan, both in terms of delivery
standardization is being vigorously perused establishment of Virtual
University has been done to overcome the shortage of teaching recourses
&delivery channels.
Pakistan Telecommunication company limited (PTCL) has been on the
fore front of the government‘s effort to promote the ICT in the country
begin the incumbent provider of fixed telephony services PTCL has
been growing its network and services at annual rate of 6 – 7 %.
PTCL provides universal internet access from all of its 2760 exchanges.
This means delivering of internet call nearest ISP. POP on a unit local call
charges irrespective of distance and duration of the call. This has made it
possible for the customers all over Pakistan to benefit from internet. This
created enabling conditions for delivery of educational, medical & agriculture
advisory and marketing services through out the length and breadth of
Pakistan.

Punjab 1091
Sindh 202
NWFP 409
Balochistan 110
Total 1812
PTCL plans to provide 3 million phone during next financial year using
wireless and wire line facilities. This will give the desired fillip to the tele-
density in rural and urban areas. WLL is also aimed to revolutionize the
coverage of rural areas.
PTCL has been regularly restructuring its tariff for fixed telephony and
bandwidth to make its services affordable to end users. Downward revision of
line rent, international and national long distance rates are instances of the
initiatives PTCL implemented over the years.
Delivery of education and health care services could be paradigmatically
improved by an ingenious employment of ICT. Agriculture, animal husbandry,
agro based and handicraft cottage industries in the rural areas can benefit
substantially through delivery of advisory training and marketing services.
The concerned agencies and organizations can utilize this unprecedented
opportunity to bring about an economic revolution and push back the frontier
of poverty.

15-20 Million May Have Cell Phones in Two to five Years

20
Cellular phone customer base is expected to increase to 15-20 million in the
next two to five years from the current 4millions subscribers.
In view of country‘s population of over 140 million, the 4 million
subscribers‘ base looks very tiny in terms of rising demand as only 3 percent
have mobile phones.
However, mobile phone operators now forecast a jump of 10-15 percent in
customer base from 3 percent in the next two to five years in view of their
on-going and future expansion plans and stiffening competition with the
arrival of two new mobile phone operators.
The current mobile phone operators in Pakistan include Pakistan Mobile
Communication Ltd (Mobilink), Paktel, Instaphone, and Pakistan Telecom
Mobile (U-fone). Besides U-fone, which is a 100% owned independent
subsidiary of Pakistan Telecommunications Corporation Ltd (PTCL), the other
operators have foreign investors.
These four companies currently provide mobile phone services in Pakistan,
where the government says that there is an urgent need to develop a more
efficient telecommunication infrastructure to meet future demand.
Director marketing, Mobilink, Bilal Munir Sheikh told from Islamabad
that the company, since its inception in 1994, has invested heavily in its
infrastructure to provide cellular communication service backed by best
available technology. It introduced the first GSM-based cellular service in
Pakistan. The plans for additional investment of $275 million are on going as
expansion of infrastructure is a continuous process. Mobilink‘s total
investment by the end of the current calendar year will touch $775 million.
One forecast of entire mobile phone customer base, he said ―the cellular
market size is estimated to be between 15-20 million within 3 to 5 years‖.
We aim to maintain our position as the market leader by continuously
upgrading and expanding infrastructure to provide the best level of service to
our growing sub scribers base,‖ he said.
Mobilink, having over 2.8 million subscribers, is heading to surpass the
PTCL subscribers base by the end of the current year. The current PTCL
subscriber base is 4.37 million.
To a query over plan to extended network in rural areas where Pakistan‘s
70% population lives, he said the company has been working continuously to
expand cellular services in the less developed cities of Pakistan so that the
majority of population can reap the benefit of cellular technology.
He said that the company is continuously adding new towns and cities to its
service network and currently had reach over 290 cities in Pakistan. By the
end of the current calendar year its service would have reached 350 towns
21
and cities. These cities are located all over Pakistan and very close to accessible
from rural areas as well. Moreover, the company is already providing coverage
on the major high ways including Motorway, GT Road and Indus
Highway.
Bilal said that the government has been very supportive of the cellular
industry and has come up with a new cellular policy that would help in its
growth. For the budget 2004-2005 the industry had proposed to the
government that activation charges for mobile phone connections should be
lowered. The proposal was accepted and activation charges were dropped from
Rs. 2,000 to Rs. 1,000.
Chief Executive Officer, Pakcom Limited (Instaphone), Lain Williams
thinks that currently there are about 4.5 million mobile users now. ―There
should be 12-15 million within two-three years,‖ he adds. ―The company has
over 550,000 subscribers and we now target to grow by one million
subscribers per year,‖ he told Dawn from Islamabad.
On future investment plans, Iain says that the company is still growing its
current time division multiple access (TDMA-network) - already covering more
than 185 cities. Further a major strategic investment going forward will be in a
new CDMA network (code division multiple access), an American Digital
Standard, that the company intends to install by the year-end.
The company has so far invested over 100 million in mobile phone sectors
of Pakistan and plans to invest with similar volume annually,‖ he says.
Instaphone chief says that the company is not threatened by two future
mobile operators. ―We welcome this competition this would only help grow the
market. There would be rooms for all operators to grow,‖ he says.
On future plans to extend your network in rural areas, he says the company
with now over 185 cities has a strong position in coverage.
To a query why his company has not emerged as a tough competitor for three
other mobile phone companies, Iain Williams says Insta has been an effective
operator and the company is in fact still the second largest operator based on
its prepaid products –Instaphone and InstaXcite.
The key weakness for Insta, he says, has been that TDMA handsets have not
been as varied and popular as GSM (global system mobile). Deposit the actual
service being as good as and frequently better than GSM service. CDMA
handset prices and range are better and Insta will become even more
competitive, he adds.
CDMA technology is the newest state of the art cellular technology and is now
being developed in North America, China and India. This technology is
superior to what is available with cellular networks in Pakistan today. He

22
claims his company as a unique amongst operators which offers 12 months
incoming free on its prepaid products besides the company has waived off
roaming charges within all regions expect north to south. Additionally Insta‘s
Xcite product gives the lowest outgoing airtime rates in the market.
Another player, Paktel has over 500,000 customers. A source said that the
company has invested over $200 million and plans further investment of
$150 million. Paktel is soon to overlay its existing systems with GSM with an
installed capacity of two million users, a source in Paktel said.
A number of senior executives of Ufone have been approached and
surprisingly ever executive ask this scribe to talk to other person or said that
today is holiday.
However, one of the Ufone executive claimed that the company, having a
current customer base of 1,850,000, has so far invested $300-350 million in
cell phone segment. The company is targeting another 2-2.5 million people
to have mobile phones in the next couple of months.
Meanwhile another Ufone executive did not agree with this estimate. He
claimed that Ufone subscriber base is close to one million and the company
plans another three to four million subscribers by the next year. He said the
company has so far invested $ 150 million.
Pakistan‘s population is 145 million people. One third of the population live
sin poverty, earning less than two dollars a day, according to United Nation
figures. Pakistan now has a fixed-line telephone penetration of 2.7 telephone
lines per 100 people. A Pakistan Telecommunication Authority (PTA) report
published in March predicted that one million mobile phone subscribers could
be picked up within six months.
After Deregulation, land line telephone penetration is expected to rise to 5.6
percent or 9.0 million lines by the year 2010. Mobile phone penetration is
projected to reach the same level earlier.
Mobile phones are going to surpass over 4 million land-based telephones as
the mobile phone subscribers number is expected to rise from 4 million to 7
million in 2005, according to PTA estimates. However, private sectors
estimates are that this would happen much earlier, most probably within the
next 12 months.
Growth Of Telecom Sector in 2004
Landscape of telecommunications is changing fast with the advent of state-
of-the-art technologies and rising nations are doing hard to keep themselves
abreast of emerging trends in the field of telecommunication. Convergence of
technologies has, at a rapid pace, revolutionized every field of human life and
so is the case with telecommunications. Pakistan is in no way an exemption to
23
this developing shift. The sector has witnessed enormous advancement with
the grant of two licenses to new cellular companies and several other licenses
for fixed line services, thus fetching huge foreign and local investment and
bringing momentous changes in socio-economic scenario of the country.
Telecom regulator, Pakistan Telecommunication Authority (PTA), through its
consistent and well calculated policies has bought about phenomenal progress
in this sector and has transformed the country into investors' paradise. As
latest figures show, Foreign Direct Investment (FDI) in telecom sector reached
US $ 207.1 million in 2004 which was just US $ 6.1 million in 2002.
Besides, US $ 5 to 8 billion FDI is expected in the next 3 to 5 years. The
influx of this heavy investment was occasioned because of the fact that PTA
had issued various telecom licenses during the year 2004 to foreign and local
telecom investors by winning over their trust and confidence and creating a
healthy competition among telecom operators, as mandated by the
Government of Pakistan in the Telecommunication Deregulation Policy 2003.
Cellular companies already operating in the country have significantly
reduced their tariffs in view of competitive environment in the offing. Those
operators also expanded their infrastructure to compete with the newly
inducted parties. The government also reduced activation charges from
Rs.2000 to Rs.1000 to facilitate the intending customers and boosting
growth of cell phone connections. The companies had withdrawn roaming
charges throughout the country. Owing to these measures, an Increase of 173
percent was manifest in mobile sector and total number of cell phone users
reached to 7.9 million by the end of 2004. Existing mobile companies had
provided more than 5.5 million new connections during the year. The mobile
teledensity has crossed 5.14 percent in Pakistan and according to
conservative estimates number of mobile phone users would touch the figure
of 15 million by December 2005. Lately, PTA had renewed license of
pioneer cellular company of Pakistan, Paktel for next 15 years against $ 291
million and allowed it to launch its GSM operation. With the operation of
existing and new companies, the customers would get varied choices and
enhanced quality of service at cheaper rates.
Numerous new licenses were also issued to national and multinational
companies providing fixed line telecommunication services to end PTCL mo-
nopoly in basic telephony during the year 2004. PTA awarded 12 Long Dis-
tance & International (LDI) licenses, 76 Fixed Local Loop (FLL) licenses
to 34 operators and 90 Wireless Local Loop (WLL) licenses to 15
companies. The process fetched as much as 14 billion plus through auction of
spectrum for WLL, and the initial processing fee for award of these licenses.
Fixed line telephone tariffs were reduced substantially to give relief to
consumers. Charges for new connection in rural and urban areas were
decreased by 73% and 44% respectively. Similarly, NWD call charges were
reduced by 25% and 1SD charges by 24%. Currently, Pakistan has 3.13%
teledensity in fixed telephony which was just 2.2 percent in year 2000. With
24
the issuance of fixed line licenses to the new operators, it is hoped that there
will be 12 million more customers during the next five years and teledensity
will become at par with other Asian countries.
In order to introduce genuine competition, encourage upcoming cellular and
fixed line operators to smoothly enter the market and thwart unscrupulous
practices in telecom business, PTA granted three companies the status of
Significant Market Power (SMP). The companies included PTCL, Special
Communication Organization (SCO) and Pakistan Mobile
Communication Ltd (Mobilink). Another milestone on the part of PTA was the
reduction of 45 percent interconnection charges by PTCL to facilitate new
operators. This decision was widely welcomed by telecom companies. PTA
prioritizes as its first and utmost responsibility to provide quality telecom
services to the customers. A Complaint Cell is established at PTA Head
Quarters to address the grievances of telecom consumers. The cell takes
appropriate action on complaints about telecom services. Complaints are
immediately forwarded to the concerned operators for their quick resolution.
Consumers can send their complaints to PTA by post, through e-mail, fax or
toll free number 0800-55055. As many as 5659 complaints were entertained
during the year 2003-2004. If one looks on the rapid growth of telecom
sector, it is evident that PTA did a lot in expanding telecom systems and
services and providing ample relief to the consumers during the last year. The
Authority always gave top priority to the consumers in the decision making
and regulation formulation process. PTA arranged public forums on various
issues concerning operators and consumers to gather their views and opinion
on various policies. Consumer-friendly policies were formulated on the basis of
conclusions arrived at those forums. Periodical surveys were conducted
throughout the country to examine the quality of service of various telecom
operators. Necessary remedial steps were also taken if service was not found
up to the mark.

25
About Mobilink
Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, which
operates 20 GSM network licenses in the Middle East, Asia and Africa, is
the market leader in providing state-of-the-art communications solutions to
4.3 million people in Pakistan. We can proudly boast of being the first
cellular service provider in Pakistan to operate on a 100% digital GSM
technology.
We offer tariff plans that are exclusively designed to cater to the
communication needs of a diverse group of people, taking into account
occasional users to businessmen. To achieve this objective, we offer both post-
paid and the prepaid (JAZZ) solutions to our customers. In addition to
providing advanced voice communication services, we also offer a number of
value added services to our valued subscribers. Keeping in mind our
customers' convenience, we have also bundled mobile handsets, sold either
independently or bundled in Get Set Go Pack.

Mobilink GSM started operations in the year 1994; from then on it has
shown enormous growth. At the time when it entered the market it was a small
player in the cellular market of Pakistan it is now the market leader both in
terms of growth as well as having the largest subscriber base in Pakistan

Vision
26
“To be the leading telecommunication service provider in Pakistan by
offering innovative communication solution for our customers while
exceeding share holder value and employee expectation.”

Values

1. Trust and Integrity:-


At Mobilink we strive to cultivate an open haviest environment. By
doing what we say, and saying what we do, we trust those around us, and
give them every reason to trust us.

2. Passion for business excellence:-


The outstanding performance of our employees is contingent upon
their will to do their best. This passion for business excellence eventually
translates into success for the Mobilink family.

3. Respect for People:-


Our attitude towards others speaks volumes for our personality- both
as individual as well as a company. At Mobilink, we encourage our
employees to after likeable attributes for others to regard, since respect for
others eventually helps are gain respect for oneself.

4. Commitment to Total Customer Satisfaction:-


At Mobilink, we realize that customer satisfaction from the core of
success. Therefore we focus our energies on giving all customers more than
they expect.

5. Responsible corporate citizen:-


At Mobilink, we continue to set benchmarks in terms of social
responsibility and community conscience. It is our duty to be accountable
towards the environment that we operate in.
Welcome to the New Mobilink
As we stand at the threshold of a new era of Communication in Pakistan,
Mobilink GSM is proud to share its renewed values and its new identity.
Mobilink GSM – Reshaping Communication
As Mobilink continues to grow, it is no longer just a cellular company but the
preferred choice of customers for their communication needs. Their new logo
the Mobilink World encompasses people‘s hopes, their wishes and their
dreams. Through their untiring efforts they commit to bringing these to reality
through their state-of-the-art systems. They bring people together.

27
Achievements
ISO 9002 Quality Management System Certification for Billing, Engineering
Departments and CS Contact Centre Implementation of a full Intelligent
Network (IN) platform from Siemens for the Prepaid platform.
Biggest Call Centre in Pakistan, which is there to assist the customers 24
hours.
Only cellular service in Pakistan to provide coverage on the M2 motorway.
Bilateral roaming agreements signed with 61 countries around the world to
have true roaming service operational in 151 operators of the world.
MOBILINK GSM's Short Message Service Centre allows Vehicle Tracking and
Fleet Management services that are being provided by Tracker (Pvt.) Ltd.,
under the brand name of C-Track, a company licensed by Pakistan
Telecom Authority (PTA). Tracker currently operates from Karachi but can
provide these facilities at all those locations where GSM coverage is available.
Mobilink has been nominated for the category of Best Mobile Operator of
the Year, Regional – India and Subcontinent Award at the Asian Mobile
News Awards 2004. Mobilink is the only Pakistani operator nominated in
this category, up against 4 companies from India and 1 from Bangladesh

Human Resources
At Mobilink, their belief is that "Our people are our greatest asset. We take
great pride in acknowledging the contribution each one of us makes.‖
We focus on People Development and for that we ensure:
Staff Mobilink with world class Professionals and ensure that the
right systems are in place to encourage them to develop to their full
potential.
Create a collaborative and mutually supportive work environment
that encourages people to grow.

28
Build a team of professionals who deliver expertise by participating
in business decisions.
Develop Performance Management and reward systems underlying
our Business strategy.
History of Paktel
Let us not mince words, this time graph will tell you all.

Paktel is the company that launched cellular technology and introduced


mobile telephony in Pakistan. Since then both our customers and Paktel have
come a long way in terms of the way Pakistanis communicate. From the basic
one-to-one voice communication, customers can now enjoy short messaging
(SMS), picture messages, polyphonic ring-tones, conference calling, call
forwarding and a host of other fabulous services.
Welcome to Paktel GSM
Welcome to the second generation of mobile communication. Welcome to the
next domain. Welcome to the most affordable GSM connection available in
Pakistan. Welcome to Paktel GSM.
Paktel GSM has been launched with a subscriber capacity of over 2 million
and the total coverage will be enhanced to 65 cities and towns across Pakistan
at this moment stats that are unheard of in the GSM sector.
Paktel GSM has ensured the most aggressive roll-out ever. We could have
launched in one city or two months back. But the philosophy of convenience,
connectivity, coverage and clarity forced us to wait and come out with a BIG
BANG.

29
Countdown to GSM
Say hello to a new beginning with Paktel‘s countdown to GSM. Powered by
our commitment to setting new service standards, the GSM network coverage
will extend to at least 150 cities and towns of Pakistan in 2005.
With a subscriber capacity of at least 2 million and plans for the first GSM
test call in March, Paktel is all set to shake up the industry. So brace yourself
for the year 2005, the year of Paktel that will turn all else to history

Why Paktel?
Mobile communication is now a utility. You need your mobile phone. Paktel
GSM fulfills the needs of mobile users. But what does a consumer look for in
his mobile connection? This is the question that the Paktel team asked itself,
when we were planning for Paktel GSM launch.
Paktel, having a long tradition of reliability gives you:
30
 Coverage - at an affordable price
 Convenience - at an affordable price
 Connectivity - at an affordable price

31
What is AMPS
In 1983, the analog cell-phone standard called AMPS (Advanced Mobile
Phone System) was approved by the FCC and first used in Chicago. AMPS
use a range of frequencies between 824 megahertz (MHz) and 894 MHz
for analog cell phones. In order to encourage competition and keep prices low,
the U. S. government required the presence of two carriers in every market,
known as A and B carriers. One of the carriers was normally the local-exchange
carrier (LEC), a fancy way of saying the local phone company.
Carriers A and B is each assigned 832 frequencies: 790 for voice and 42 for
data. A pair of frequencies (one for transmit and one for receive) is used to
create one channel. The frequencies used in analog voice channels are typically
30 kHz wide -- 30 kHz was chosen as the standard size because it gives you
voice quality comparable to a wired telephone.
The transmit and receive frequencies of each voice channel are separated by
45 MHz to keep them from interfering with each other. Each carrier has 395
voice channels, as well as 21 data channels to use for housekeeping activities
like registration and paging.
What is GSM
Global System for Mobile Communications. GSM is the name of a land
mobile pan-European digital cellular radio communications system. GSM is
the pan-European standard for digital cellular telephone service. GSM
networks will be built as an alternative to current AMPS system and in the
future and will support enhanced data applications. GSM was designed for
European markets to provide the advantage of automatic, international
roaming in multiple countries. The SIM (Subscriber Identification Module)
card is a vital component in GSM operation. The user can store all relevant
data for the phone on a removable plastic card. The card can be plugged into
any GSM compatible phone and the phone is instantly personalized to the user
It is also used around the world. Developed in the 1980s, GSM was first
deployed in seven European countries in 1992. Operating in the 900MHz
and 1.8GHz bands in Europe and the 1.9GHz PCS band in the U.S., GSM
32
defines the entire cellular system, not just the air interface (TDMA, CDMA,
etc.). As of 2000, there were more than 250 million GSM users, which is
more than half of the world's mobile phone population.
Coverage of Paktel
At this time the coverage of Paktel Amps is about 170 cities. The Paktel GSM
covers about 67 cities. But Paktel aims to increase its service to about 150
cities by the end of this year

Coverage of Mobilink
At this time the pioneer of GSM in Pakistan covers about 300 cities all over
the Pakistan

33
Comparison
So Mobilink has the competitive edge in this regard as its coverage is in more
cities compared to Paktel GSM its service is in 233 more cities.

34
Pakistan mobile Communications Limited
Shareholders include Orascom Telecom 89% and Saif Group 11%.
Operators under the name of Mobilink.
GSM 900/1800 platform.
Commenced operations in August 1994; License renewal in July
2007

Total subscribers 4,200,000

Others
40%

Mobilink
60%

Source: PTA (subscribers as of December 2004)

Paktel Ltd
Paktel is 98% is owned by Millicom Inte’l Cellular (―MIC‖)
Paktel recently converted from D-AMPS technology to GSM 1800
Network.
Operates under the brand name of Paktel GSM.
Commenced operations in October 1990; License renewed in
October 2004 for 15 years.

35
Total Subscribers 488,343
Paktel
7%

Others
93%

Pak telecom Mobile


PTML is wholly owned subsidiary of PTCL.
Operates under Brand name of, ‘Ufone’.
GSM 900/1800 platform.
Commenced operations in January 2001; License renewal = April
2005

Total subscribers 1,750,000 Ufone


25%

Others
75%
Source: PTA (subscribers as of December 2004)
Pakcom Ltd. Instaphone
Sanbao Telecom an MIC subsidiary owns 62.5% of Pakcom.
Pakcom operates under the brand name of “Instaphone”.
Operates under the D- Amps technology.
Commenced operations in October 1990; License renewal = April
2005
36
Total subscribers 544,778
Instaphon
e, 8%

Others,
92%
Telenor
Largest provider of telecommunication services in Norway.
Developed its position as a mobile operator with substantial operations
in 12 countries.
Telenor has 34.8 million mobile subscriptions through the companies
wherein it has ownership interests.
Expected to begin operations in 1Q2005.
Warid Telecom
Owned by the Abu Dhabi Group which is led by His Highness Sheikh
Nahayan Mabarak al-Nahayan
Expected to operate in the 1Q2005

37
Marketing Mix
It is the set of controllable tactical marketing tools-product price play and
promotion –that firm blends to produce the response in the target market

38
Target Market
A set of buyers sharing common needs or characteristics that the company
decides to serve.
Target Market of Jazz
The target market of jazz is the youngsters of 16-25.

Target Market of Indigo


The target market of Indigo is the people are the professional and
businessman. Another target market of Mobilink Indigo is the cooperate
sector

Target Market of Call & Control


Call & Control is aimed at customers who currently fall between prepaid
and postpaid. These are customers who want the prestige and benefits of
postpaid with the control and convenience of prepaid. They could include
parents buying connections for their children, companies buying
connections for their sales force with the control of prepaid cards and so on.

Target Market of Paktel GSM Prepaid


The target market of Paktel GSM is individuals regardless of their age. It
suits to any age group and it fulfils the desires of all the people.
Target Market of Paktel GSM Post-paid
The target market of Paktel GSM is businessmen and professionals.
Target Market of Tango
The target Market of Tango is youngsters between the age of 16-25 who
find convenience and can‘t afford to pay much money but feel the need of
mobile phone.

39
Market Segmentation
Market segmentation is dividing a market into distinct groups of buyers
who have distinct needs, characteristics, or behaviour and who might
require separate products and or marketing mixes; dividing a market into
distinct groups with distinct needs, characteristics, or behaviour who might
require separate products and or marketing mixes.

Segmentation on the basis of Income


As in the case of mobile phone users we divide them according to the
income level. The age, gender and other factors account much less then
income. As income level increase their tendency to buy post-paid
connection is much high. Most of the people who have income above
40,000 and using mobile frequently using post-paid. The youngsters and
persons with low income mostly buy prepaid as it suits to them. The ratio of
prepaid and post-paid of Mobilink is 90% and 10% respectively. Similarly,
the ratio of prepaid and post-paid of Paktel is 92 and 8% respectively
people who are using call and control is 0.25%. The ratio of Tango in post-
paid connections is about 4 to 5 % only. By the year the
Segmentation on the basis of Age
The students, youngsters and people with low income prefer to buy
prepaid. First they afford them and secondly according to a survey they feel
pride to tell their fellow members that they have Jazz connection. Many
people especially youngsters who have two Sims and one of them is of
Mobilink they tell others that they have Jazz connection and mostly don‘t
tell about other. This is the reason that students have 30% of the total Jazz
connections. But it is not true in every case .You can easily found people
who are above 50 or 60 and using Jazz or Tango. The major
segmentation is still upon income and need.
Segmentation on the basis of Profession
According to survey the people who are on high posts and businessmen
whose calling rate is about 30 to 70 calls per day use prepaid and different
packages according to their needs. It is also seen that almost all cooperate
sector is grabbed by the Mobilink.

Behavioural Segmentation
Behavioural Segmentation is dividing the market into groups based on
consumer knowledge, attitude, use, or response to a product. As people
behaviours is based on their perceptions so Mobilink is taking advantage of
this as people‘s view and perception about Mobilink is much better then the
40
Paktel. People think and their past experience shows that the customer
services of Mobilink is much better and its coverage is more and the people
having Jazz and Indigo have better experience then that of Paktel. There
was a time when Paktel was having all these qualities. Now it is working on
changing the attitude and behaviour of the people as the people who use
Paktel GSM complaining a lot about its services so we can also segment the
market on the basis of behaviours as people behaviour also influences their
buying. Some people are inclined towards Jazz, Some towards Paktel it is all
because of their knowledge, attitude, use or response towards a product

41
What is Price?
Price is the amount of money charged for a product or service or the value
exchanged for the benefits of the product or service.
Pricing Strategies
There are five general pricing strategies which these companies adopt
Product line
Setting the price steps between various products in a product line items
based on cost difference between the products, customer evaluations of
different features, and competitor‘s price as in the case of post-paid many
packages are offered and on different prices as Mobilink & Paktel post-paid
packages are about 5 and all of them have different prices according to their
packages.
Captive Product
Pricing products that must be used with the main product as card is used
with the connection with mobile Phone
Product Bundle
Pricing bundles of products sold together. As connection plus card and
mobile phone altogether offers at low price.
Market Penetration
Set a low initial price in order to penetrate the market quickly and deeply to
win a large market share. This method adopted by the Paktel GSM after
conversion from AMPS in order to get maximum share Works when:
Market is highly price sensitive.
Production and distribution costs fall as sales volume increases.
Low price must help keep out the competition.

42
Price Adjustment
The following are price adjustments based on changing situations:

Discounts
Discount is straight reduction in price on purchases during a stated period of
time. As Paktel‘s and Mobilink bundle offers are included in discount

Psychological
Adjusting prices for psychological effects. Ex: Rs. 3999 vs. Rs. 4000 as set by
Paktel.

Value Pricing
It is the method of adjusting prices to offer the right combination of quality
and service at a fair price. As Mobilink claims that they are offering better
service and product and their price according to the services and products is
quite fair
Promotional
It is temporarily reducing prices to increase short-run sales. 1st Paktel
introduce the prices which were valid for only 31st December 2004. Now this
offer is extended.

Competition-based pricing
It is the process of setting prices based on the prices that competitors charge
for similar products. As Paktel set its price by seeing and keeping in view the
prices offered by competitor.
Mobilink’s Packages
Prepaid Packages
Jazz
Jazz is an amazing prepaid service that allows you freedom from monthly
bills and gives you complete control over your cellular expenditures. You
decide in advance when and how you want to spend. Jazz is simple easy and
lots of fun.
Jazz is extremely affordable, with features like:
No daily charges

Low outgoing rates


43
180 days validity of Jazz Scratch Cards

Jazz-Aur Sunao
Effective December 1st, 2004, Jazz tariffs were reduced from Rs. 5.75 per
minute to Rs. 4.75 per minute on all calls from Jazz to any other Mobilink
numbers. This tariff reduction served as an unparalleled advantage to our 4.5
million strong Jazz subscribers, who have to pay less to call within the
Mobilink family, 24 hours a day.

Tariff guide for Jazz package


Incoming Calls FREE
Outgoing Calls to Mobilink Rs.4.75/min
Number (24 Hrs.)
Outgoing Calls to other Rs.5.75/min
Number (24 Hrs.)
SMS(per message) Rs.2.00
On Call Services FREE
For Jazz: Mobilink to other cellular network charges

Distance Peak(7.00a.m.- Off- Late


Bands(Km) 9.30p.m.) Peak(9.30p.m.- Night(11.00p.m.-
11.00p.m.) 7.00a.m.)
25-80 Rs.2.00 Rs.1.00 Rs.1.00
80-160 Rs.5.00 Rs.4.00 Rs.2.00
44
160+ Rs.9.00 Rs.6.00 Rs.4.00

Call and Control


Call & Control is aimed at customers who currently fall between prepaid and
postpaid. These are customers who want the prestige and benefits of postpaid
with the control and convenience of prepaid. They could include parents
buying connections for their children, companies buying connections for their
sales force with the control of prepaid cards and so on. The media campaign
for the product will also emphasize these control and convenience features.

Call & Control is aimed at customers who currently fall between prepaid and
postpaid. It is meant for customers who want the prestige and benefits of
postpaid with the control and convenience of prepaid. They could include
parents buying connections for their children, companies buying connections
for their sales force with the control of prepaid cards and so on.

Tariffs for the package are:

Line Rent Free Minutes Peak Off Peak Late Night SMS Rate
Rs. 222 (+ Rs. 25 for SMS) 0 4.0 4.0 4.0 1.5
(Taxes Apply as Usual)

45
Postpaid LD charges apply as follows:

Distance Band Peak Off-Peak Late-Night


(KM) 0700-2130 2130-2300 2300-0700
25-80 2.0 1.0 1.0
80-160 5.0 2.5 2.0
160-
5.0 2.5 2.5
600
600+ 8.0 4.0 4.0

―Call & Control‖ is one more service from Mobilink aimed at providing our
customers a menu of tailored packages that

Postpaid other service charges

Postpaid Change of Number Existing Fees (Rs) Approved Fee (Rs)


Postpaid Change of Number 750 300
Postpaid SIM Replacement 700 300
SIM replacement /
350 300
Memory enhancement

Supplmentry Connection
Supplementary connection from indigo. Same connection same Bill Two
numbers. Imagine having all the post paid benefits your current indigo
connection-all over again? A supplementary connection is all this and more.
And because it will be billed on your existing monthly statement, there‘s less
paperwork and more control on top of having a great new number.

1. New supplementary package "Family" is introduced.

2. All calls between the supplementary and primary numbers will be charged at
50% of the airtime of the respective package.

3. Only one bill (addressed to the user of primary connection) will be generated
for both numbers.

Tariff details are given below

Family

46
Monthly charges 300
Free OG minutes 0
OG rate (Peak: 0700-
3.5
2130) / minute
OG rate (Off Peak: 2130-
3.0
0700)/ minute
Rate/min to discounted #
1.75
(peak)
Rate/min to discounted #
1.50
(off peak)
SMS 1.50
Postpaid Packages
Indigo

Life whispers. Life Laughs. Life talks. However you connect with life's
moments, a Mobilink Indigo connection is by your side. With countless, value
added ways to keep you connected. Mobilink Indigo is the new complexion of
communication. After all, only family really knows your true colours.

Tariff guide for Indigo Package


GSM Blue. Gone are the days of expensive mobile calls. Peak Airtime is Rs.3.75
ONLY!!!! Off-Peak Night time Airtime Rates of Rs.0.99 knock out competition
and surely give sleepless nights to people not using Paktel GSM.

Special launch Package-Prepaid


Package Daily Service Peak Out Late Night Air
Charges Going Air Time
Time
Paktel Blue Zero Rs.3.75 Rs.0.99

47
Post-paid Packages
Paktel GSM Post-Paid presents to YOU the best Cellular deal in town-Smart
Packages. Paktel GSM Smart packages give you the best mix of Line Rent,
Airtime Rates, Free Minutes and Free SMS.

Compare Paktel GSM Smart Packages with those of competition &you will
know why Paktel GSM Post-Package is a SMART choice.

What else, Paktel presents Night Time rates in your Talking Nights package-
rates as low as Rs.0.25 per minute.

Tariff(indigo Indigo Indigo Indigo Indigo Indigo


air time Basic 50 100 200 400
charges)
Line Rent 300 600 850 1,300 1,850
Free Minutes - 50 100 200 400
Outgoing Calls 3.50 2.90 2.60 1.90 1.00
Peak(7.00a.m-
9.30p.m.)
Outgoing Calls 3.00 2.20 1.80 1.50 1.00
off-
Peak(9.30p.m.-
7.00a.m.)
SMS(per message) 1.50 1.50 1.50 1.50 1.00
On call services Free Free Free Free Free

Additional Information
Other Network* Access Charges
Other network nationwide access Rs.2.00/minute
charges
International (ISD) access charges Rs.3.00/minute

Incoming Roaming Charges


No incoming roaming charges within your country .

Important Information
Voice Mail charges are Rs.1.00 per 15 seconds for retrieval of messages.
Relevant charges on forwarded calls are applicable. Additional surcharge of Rs

48
.3.00 per message will be charged outgoing international SMS. All PTCL and
other cellular operator charges apply .All taxes and duties apply.

Mobilink to PTCL NWD


For nationwide calls to PTCL numbers, PTCL charges are applied in addition
to airtime and NWD access charges, i.e. Airtime + PTCL charges + Rs.2
per minute NWD access charges.

Mobilink to other Operators NWD


For NWD calls to other operators, customers will be charged Rs.2 per
minute CPP in addition to Airtime, MLD and NWD access charges.

Paktel’s Packages
Prepaid Packages
Paktel GSM Pre-Paid offers a revolutionary package-Paktel

 S 200 is for conservative users who make 0-4 calls everyday.


 S 500 is for High End Users who make 5-15 calls everyday.
 S 1000 is for Premium Users for whom Paktel GSM mobile is their second office.

Smart Packages on Paktel GSM-Postpaid


Line 200 500 1000 1500 3000
Rent
Airtime 3.5 2.5 1.5 1 0.75
Rate
Free 0 60 150 500 2000
Minutes
Free 30 60 150 0 0
SMS
Talking 200 200 200 2000 200
Night
Fees
Talking 0.5 0.25 0.25 0.25 0.25
Night
Airtime

49
Comparison
This should be music to customers' ears that can in the future, look forward
to a new round of price and technology improvements. PakCom's CEO, Ian
Williams, projects that mobile usage has the potential for hitting the 10
million benchmark. In the race to increase market share, investment in value
added services and technology has gone hand in hand with competitive pricing
strategies. The three international companies, Mobilink, Instaphone and
Paktel, and Pakistani-owned Ufone, keen to outdo each other, offer
customers a range of segment-oriented cellular packages, pre-paid for the
price-conscious and post-paid, for a relatively higher-income niche. This
strategy has enjoyed considerable success with Mobilink's Jazz package,
enjoying approximately 4,500,000 subscribers. Scratch cards of all
companies are available in all denominations, ranging from 250 to 2000
rupees and are valid for one to six months. Starter-pack prices have also
tumbled, with Mobilink at 4,500 rupees, inclusive of all taxes along with free
airtime worth 300 rupees and Nokia 3310. Paktel too has followed suit,
increasing the validity times of its pre-paid Tango service cards and
introducing lower connection charges of 1000 rupees on its postpaid value
tariffs. Also starter-pack in just 3,999
Apart from the price war, companies are going in for a variety of marketing
gimmicks Not to be outdone, Paktel launched its family package, offering a
supplementary connection at half price and a discount of 50 per cent on calls
between the parent and supplementary line. Instaphone's Long Distant and
Access, open to also all Advanced Mobile Phone Service (AMPS) based phones
through a pre-paid card, allows for international calls with no security deposit.
Far and away, 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 service, followed closely by U-Fone, and
then by Paktel and then Instaphone. Given the fact that inter-network calls are
much cheaper than network to network calls, the largest companies attract
more customers, eager to reduce their bills. "Mobilink is the market leader in
the cellular industry," proclaims Haider. "We have the biggest network with
about more then 5,000,000 subscribers, and cover 330 cities with our 320
cell sites." Kamran Farooq, sales representative of United Mobile,
corroborates this claim. Mobilink package sales, he says, are the most popular
product, especially the Jazz package. "Prepaid packages are very popular,
because they are reasonable and very convenient to use. Mobilink benefits
from excellent coverage, with the widest network of easily accessible GSM
centers, and Connect Point of Sales Express Shops. Customer service too is
friendly, with an automated phone mechanism that directs customers to
particular departments, providing a choice of Urdu- or English-speaking
operators. Six phone lines dedicated to customer service, complement an
internal mobile number, compared to Paktel, Instaphone and Ufone customers

50
who have to rely on one, apart from an internal number which is often busy.
Ufone, keen to improve customer service, has recently introduced a new
location-based inquiry service designed to provide its customers with details of
the nearest pre-paid card outlet. Innovation and technological maturity too are
very important factors. People want convenience, to be able to use their phones
wherever they are, with as little hassle as possible. As such whichever service
provides the best line clarity and coverage, and of course competes effectively
in the price stakes will have an undisputed edge.
Companies, however, remain optimistic, looking to increase sales to two
million subscriptions by the end of the year. It seems as if, for basic cellular
services, the sky is still the limit. Now the mobile companies use another tactic
to attract the market that they don‘t tell the customer about the taxes. They
just grab them by telling the airtime charges. When customer buy the mobile
and load the card then he come to know that after loading first tax is deducted
then on every call he has to pay more money then the airtime as he has to pay
2.01 PTCL charges for 5 minutes and then 15% tax. What is the purpose of this
when he already pay the tax while after loading the card. It seems as if, for
basic cellular services, the sky is still the limit. U-Fone has the most
competitive airtime rates in the pre-paid market-Rs.3 against Rs.4.75 offered
by the market leader; but Paktel GSM offers 3.75 to all the networks whereas
the U-Fone offers this price of Rs 3 just U-Fone to U-Fone

Comparison of connection charges-Prepaid


Operators Connection Charges
Mobilink
Paktel 250
Comparison of Airtime charges

Operators Outgoing Calls Outgoing Calls Outgoing Calls


to same to other to PTCL
network Network
Mobilink 4.75/min 5.75/min
Paktel 3.75/min 3.75/min 3.75/min
*Exclusive of all Taxes

Comparison of SMS charges


Operators To same To other International Ringtones/Logos
network networks SMS
Mobilink 2.00 2.00 5.00
Paktel 1.50 1.50 5.00
*Exclusive of all Taxes
51
Comparison of Scratch cards available & their validity
Operator Scratch Cards
Mobilink 300 625 1000 1500 2000
Validity 1½ 6 Months 6 Months 6 Months 6 Months
Month
Paktel 300 600 1500
Validity 1½ 6 Months 6 Months
month

52
What is Product?
Product is, of course, the thing (or service) that you have to offer to the
customers. There are a number of thing about the product you should evaluate.
Functionality, Features & Benefits
In order to begin to understand the product from a customer‘s point of view,
list the functionality, the features, and the benefits that product has.

List functionality and features that could be added.

Prioritize each for the target market or market segments to determine the
development of the product going forward.

Mobilink’s Products

Prepaid Jazz
Jazz is an amazing prepaid service that allows you freedom from monthly
bills and gives you complete control over your cellular expenditure. You decide
in advance when and how much you want to spend. Load a scratch card
whenever you want to and start talking. Jazz is simple, easy and loads of fun.

Jazz is extremely affordable, with features like:

No daily charges
Low outgoing rates
180 days validity of Jazz Scratch Cards
Simply reactivate your deactivated Jazz connection

53
Effective December 1st, 2004, Jazz tariffs were being reduced from Rs.
5.75 per minute to Rs. 4.75 per minute on all calls from Jazz to any other
Mobilink numbers. This tariff reduction served as an unparalleled advantage to
our 4.5 million strong Jazz subscribers, who have to pay less to call within the
Mobilink family, 24 hours a day!

Call and Control


Call & Control is aimed at customers who currently fall between prepaid and
postpaid. These are customers who want the prestige and benefits of postpaid
with the control and convenience of prepaid. They could include parents
buying connections for their children, companies buying connections for their
sales force with the control of prepaid cards and so on. The media campaign
for the product will also emphasize these control and convenience features.

Supplementary connection
Supplementary connection from indigo. Same connection same Bill Two
numbers. Imagine having all the post paid benefits your current indigo
connection-all over again? A supplementary connection is all this and more.
And because it will be billed on your existing monthly statement, there‘s less
paperwork and more control on top of having a great new number.

Postpaid Indigo

Life whispers. Life Laughs. Life talks. However you connect with life's
moments, a Mobilink Indigo connection is by your side. With countless, value
added ways to keep you connected. Mobilink Indigo is the new complexion of
communication. After all, only family really knows your true colours

54
Value Added services

MOBILINK GSM has always been the market leader when it comes to
introducing state-of-the-art communication services and solutions for its
customers. Our Value Added Services makes your existing package more
attractive, all for your convenience.
You can now benefit from the services, which will give you all the freedom
you need, making mobile communications more exciting, convenient and
enjoyable. This section will walk you through services, which are not only
useful but also cost-effective for both your business as well as personal use.
These include the very basic yet indispensable services like V- Mail to the more
innovative and sophisticated ones like G-Mail, Internet Chat, Logo Composer
etc.
We are confident that our innovative and exciting new services will bring
about a revolution in the way you look at mobile communications.

Furthermore, by choosing any package plan (both post-paid and prepaid), you also qualify for
a host of „On Call Services‟ that includes CLI, Call Waiting and Call Forwarding.

Urdu Power Tools

Mobilink says that: ―Continuing with our tradition of launching innovative


yet consumer relevant services to add to our current portfolio, we are proud to
announce the launch of Power Tools in Urdu. This service will enable our
customers to avail the benefits of their favourite power tools, only this time in
their own language i.e. Urdu. The Urdu Power Tools menu is the first step in
introducing more services in our local language.‖

55
Ring tones/ Logos

The service allows the caller to download ring tones, operator logos or get any
picture message or screen savers. Ring tones are available for English, Urdu
and Punjabi songs. Screen savers, picture messages and logos are available in
all categories where the caller has the choice to choose the category.

Power Tools
Mobilink GSM phone has been transformed into an information centre. It
will now keep you updated with the latest headlines, weather updates, stock
index, entertainment news, horoscopes, sports and more, anytime, anywhere
in our coverage areas. Power Tools are by default activated, once you get the
connection, and will bring to you all the information that you can think of, on
your very own Mobilink GSM phone.
Caller Line Identification (CLI)
You can see the telephone number of the caller before you answer the call.
With most models of phones, your caller name will also be shown along with or
instead of their number, if you have their number stored in your mobile. You
then have the freedom to choose which calls you want to answer.

Call waiting/holding (CW)


You never have to miss an important call again. If you are already on a call
and someone else calls you, your phone will indicate through a beep and by
displaying the number/name of the caller that another call is trying to reach
you. You can then choose to place the current caller on hold and answer the
new call.

56
Call forwarding
Call Forwarding allows you to divert incoming calls to your Voice Mail or
another MOBILINK GSM number, when your mobile is busy, unreachable or
you don't want to be disturbed.
These basic but essential services are provided to all MOBILINK GSM
customers free of charge, and are automatically activated with your connection
(except for Call Forwarding on which nominal call charges apply as per
package plan).
V-MAIL
It is a voicemail service that allows callers to leave a message when you are
unable to take a call. It‘s an intelligent messaging service; if your phone is
switched off, in use or out of a coverage area, callers are diverted to your
Mobilink V-mail where they are asked to leave a message.
Mobilink V-mail is the economical solution. It saves more...
Free activation
No monthly line rent charges
50% reduced rates of Re. 1 per 15 seconds

Mobile Banking
Mobilink also launched of Mobile Banking Services with Standard Chartered
Bank, in an effort to further facilitate our valued customers. All Standard
Chartered customers who are also Mobilink subscribers can avail this service.
Customers would need to fill in a SMS M Banking Registration form available
at Standard Chartered Branches or download it from the link below, and drop
the forms at Standard Chartered Branches.

57
Paktel’s Products
Prepaid Packages
Paktel GSM Pre-Paid offers a revolutionary package-Paktel GSM Blue. Gone
are the days of expensive mobile calls. Peak Airtime is Rs.3.75 ONLY!!!! Off-
Peak Night time Airtime Rates of Rs.0.99 will knock out competition and
surely give sleepless nights to people not using Paktel GSM.

Tango

Tango is a prepaid package that was introduced when Paktel has not
launched its GSM. But now as Paktel has launched its GSM other prepaid
packages are introduced. Paktel tango was one of its famous packages before
its GSM launch. It is so affordable that Paktel company used to advertise IS
SAY SASTY SIRF KHAMOSHEE.
Paktel GSM
GSM Postpaid
Some luxuries in Life are Post-Paid
With considerably low line rent, the best mix of airtime rates, free minutes,
free SMS and value added services, Paktel GSM post-paid packages are a smart
choice

25% More Savings


Free Minutes
58
Free SMS
Smart Packages

Paktel GSM Post-Paid offers the following Smart Packages:

Smart 200
Smart 500
Smart 1,000

All you need to do to get a Paktel GSM connection is bring your NIC copy,
fill out a Customer Agreement Form and walk away with your Paktel GSM
Post-Paid connection after paying necessary charges*.
Charges include Security deposit, government activation tax and one month‘s
security advance.

Smart Packages
Paktel GSM Post-Paid presents to YOU the best Cellular deal in town-Smart
Packages. Paktel GSM Smart packages give you the best mix of Line Rent,
Airtime Rates, Free Minutes and Free SMS.

Compare Paktel GSM Smart Packages with those of competition &you will
know why Paktel GSM Post-Package is a SMART choice.

What else, Paktel presents Night Time rates in your Talking Nights
package-rates as low as Rs.0.25 per minute.
S 200 is for conservative users who make 0-4 calls everyday.
S 500 is for High End Users who make 5-15 calls everyday.
S 1000 is for Premium Users for whom Paktel GSM mobile is their
second office.

59
Value Added services
The list of Value Added Services is endless for you, our Post-paid subscribers.
We can start with Free SMS, which are part of your monthly package. Not to
forget free minutes that you get with Smart 500 and Smart 1,000 Paktel
GSM Offer you Maximum Value Addition

Caller Line Identification

 Call Waiting
 Call Forwarding
 Conference Calling
 Voice Mail
 International SMS
 PIN & PUK
 Additional Value Added
Services

Call Forwarding
Call Forwarding allows you to divert your incoming calls to another Paktel
number, when your mobile's off, unreachable or you don't want to be
disturbed. For details please call 304 from your Paktel GSM mobile.

Caller Line Identification


Caller Line Identification enables you to see the number of the caller on your
mobile screen before you answer the call. This way you can identify the caller
and choose to either attend or ignore the call. With most handsets, the name of
the caller is also displayed if you have it stored on your handset. The power of
communication is in your hands.

Call Waiting / Call Hold


Now you never have to miss an important call. If you are already on a call and
someone else calls you, your phone will indicate through a beep and CLI that
another caller is trying to reach you. You can then choose to place the current
caller on hold and answer the new call. If you choose not to attend the call it
will automatically be diverted to your Voice Mailbox.

60
Activate: * 43 # (One Time)
Deactivate: # 43 #

How to Toggle between 2 Calls?


Press 2 send/yes to alternate between two callers
Press 1 send/yes to release the active party, or simply press end/no while talking to the
party you wants to release.

Conference Calling

Your Paktel GSM mobile is your meeting room. With Conference Calling you
can talk to two different people on two different numbers at the same time. It's
just like having a meeting on phone, saving your precious time and money.

How to make a Conference Call?


Place first call and wait for the answer, while the first call is on the line, dial
second number and press send/yes

Press 2 send/yes to alternate between two callers


Press 3 send/yes to have a three party conversation
61
Press 1 send/yes to release the active party, or simply press end/no
while talking to the party you wants to release.

Voice Mail

Paktel GSM offers you Voice Mail services. Whenever you are unable to
attend a call, your caller can leave a message with Paktel GSM Voice Mail. So
now you can relax because even if your phone is switched off, in use or out of a
coverage area, callers are directly diverted to your Paktel Voice mail facility
where they can leave a message.

Voice Mail is your one stop solution:

No activation charges
No monthly charges
Rs. 1.5 per message retrieval

For details please call 304 from your Paktel GSM mobile.

PIN & PUK


Paktel provides added security to our valuable subscribers. Whenever you
switch on your mobile, feed in the PIN code 0000.

If an incorrect code is punched you will be required to punch in a PUK code.


You can request for the PUK code from our Call Center by dialing 111-222-111
or visiting your nearest Paktel Sales &Customer Services Center.

62
You can change your PIN code (from your handset) whenever you want for
added security. Paktel PIN & PUK Codes-another Value added feature –
introduced by the pioneers of Cellular Industry in Pakistan.

International SMS
Your Paktel GSM mobile connection is the most powerful communication
tool in your hand. Want to stay in touch with your loved ones living abroad,
want to wish your dad, brother working in the U.S, U.K, or Saudi Arabia…. You
can do all that with Paktel GSM International SMS.
Additional Value Added Services

All calls are local calls for you - our Paktel GSM subscriber. You can call any
Paktel GSM/TDMA number anywhere in Pakistan and be charged for a local
call.

Feel free to travel anywhere in Pakistan and receive calls free of charge. No
Roaming charges apply throughout Pakistan for Paktel GSM customers.

Talk whole night with your friends and loved ones at lowest rate.

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Comparison of Value Added services of Mobilink& Paktel
Value Added Services Mobilink Paktel
Urdu Power Tools YES
International SMS YES .
Logos/Ring tones YES YES
Power Tools YES YES
CLI YES YES
Call Waiting YES YES
Call Forwarding YES YES
V-Mail YES
Conference Calling YES YES
SMS Colours YES
Dedication Services YES
Fun Messaging YES
TV-SMS YES
Mobile Banking YES
Fax& Data Services YES
Stock Watch YES
G-Mail YES

Comparison
Increased competition during the past three years provided the impetus to
service providers to incorporate various fun elements to their service. A range
of value-added services have been developed, serving as a popular marketing
lure for customers susceptible to all that is trendy. A range of popular extras
such as caller line identification, voice mail, conference call and call waiting
facilities, compete with fun options such as a range of SMS, chat clubs, internet
email notifications, and internet connections. For the executive class these
options include fax and information services, instant news updates and
business features such as mobile banking. Mobilink and U-Fone have invested
heavily in these additions with Paktel and Instaphone lagging far behind.

So what will the technology race and heavy duty investment offer Pakistani
customers in the future? Prices of handsets and accessories have fallen
precipitously as companies struggle to increase their market share. "The
mobile phone is now more of a necessity and less of a luxury," says Saleem
Mahmood, media strategist at The Passage. "It is an essential communication
tool. As such customer's can look forward to more competition in pricing plans
and increased customer service." Intense competition in the western world has
led companies to offer throw away deals with free phones, discounted line
rental, and a host of free mobile accessories. These trends may very well be
mirrored in Pakistan once the market stabilises. With the proliferation of new
technologies and new innovations, Pakistani companies will also be attracted
by what they stand to gain by making their services more accessible. Muslim
64
Commercial Bank has already teamed up with Mobilink to offer a mobile
banking service. Customers of Mobilink and MCB can now make inquiries
about their account balance through their phones using the SMS messaging
facility, and are able to receive mini-statements. This venture has also provided
MCB with a unique advertising opportunity - they can now save on advertising
costs by texting their customers with the latest in products and services.
Mobile commerce might just change the way people work, giving companies a
more customer-focused look.

65
Promotion is the specific mix of advertising, personal selling, sales
promotion, and public relations a company uses to pursue its advertising and
marketing objectives.
Objectives
The objectives that are met by promoting are to move the target market
through the following phases:
Unawareness -> Awareness -> Beliefs/Knowledge -> Attitude ->
Purchase Intention -> Purchase
It is believed that consumers cannot skip over a phase, but they need to move
through them. Promotion is used to move the target market from one phase to
another to finally purchase.

Basic Elements of the Promotional Mix

Advertising

Direct Marketing

Interactive/
Interactive/
Internet
Internet Marketing
Marketing

Sales Promotion

Publicity/Public
Publicity/Public
Relations
Relations
Personal Selling

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Advertising –
Any paid form of non personal presentation and promotion of ideas, goods,
or services by an identified sponsor.
There are three goals of advertising. These goals are to: Inform, Persuade,
and Remind.

The traditional conceptual model for creating any advertising or marketing


communications message is the AIDA Model: get Attention, hold Interest,
arouse Desire, and then obtain Action.

The AIDA Model

Advertising Campaign of Mobilink:-

What Mobilink Communicates


Mobilink GSM – Reshaping Communication
The Mobilink World encourages people to talk to each other and form lasting
bonds with one another. Mobilink feels great pride in the fact that, the largest
cross section of people using mobile technology in Pakistan, share their joy,
their relief, their anger and sometimes their sorrow together as one nation,
using Mobilink‘s systems and facilities.
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Mobilink‘s new vibrant, rich and unique brand colours signify their re-birth
and their unique stature in the Pakistan telecom landscape and they resolve of
becoming a total communications‘ solutions provider. The rich, vibrant colours
are a reflection of the vast portfolio of new concepts and superior services that
they stand committed to bring to their customers and enrich their lives.
Today they are confident that they have all the essential building blocks in
place to take the dream forward and to play a leadership role in the rapid
growth and development of telecommunications in Pakistan. Their new look
and feel is reflective of their new vision and thinking. In 2003 they invested
upwards of US$ 200 million in improving their network and services. They
have already put in 7 switches, over 820 cell sites and new IN platforms for
better coverage and connectivity. In 2004 they were committing more than
US$ 250 million in technological upgrades, superior customer services,
improved coverage, 85 new cities and a portfolio of value added services
including 2.5G services and multi media messaging amongst a host of other
exciting offerings.
Their Customers remain their priority and in an effort to enrich their lives
they have put in place state-of-the-art call centres in Karachi and Lahore
where well trained staff is geared to answer complaints and queries, and a new
billing system is in the process of commissioning. They are constantly
expanding their nationwide franchise and distribution network and upgrading
them to offer customer services so that their customers can find a Mobilink
contact as near them as possible.
At Mobilink they believe their employees are their ambassadors. In 2004
alone, they are investing approximately a million dollars in training and
development of their employees so that they can better serve their valued
customers.
They feel confident in our abilities to provide superior services to our
customers because we know that we have put in the investment for the future.
This reflects our commitment to the people of Pakistan.
Join them in welcoming the new Mobilink look and vision; a vision of
bringing together the people of Pakistan and forming lasting bonds; a vision of
service to the people of this country and in so doing, offering them the World
as they see it. Join them in Reshaping Communication.
What Jazz Communicates
Jazz communicates to the young generation of our society. Its slogan “Jazz
Lao Life Banao” communicates to the young generation of our society. It is the
slogan of the young generation. As Jazz meanings are music, dance and
enjoyment. It‘s red and yellow colours depict life, energy and enthusiasm. This
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suits to the youth and youngsters. And red colour is also the colour of youth so
all these features attract our new generation. That‘s why you will notice that
almost all youngsters attract by Jazz and to buy Jazz connection is their
priority. So Mobilink communicate their message very effectively in the minds
of people

Brand Identity
Brand Identity is a combination of factors: Name, logo, symbols, design,
packaging, product or service performance, and image or
associations in the consumer‘s mind.
Another slogan of Jazz “Live Your Life” also hit the youngsters between the
ages of 16 to 25 who want to live their lives according to their own manners
.they want to live life according to the own principles so this slogan is also the
voice of youngsters.

As youngsters also have limited financial resources so this ad another time


attracts the youth. In this an incentive is given to the young people that they
could get connection the amount of scratch card so this incentive attracted the
large number of teenagers towards them and they bought Jazz connections
Another slogan of Jazz is “jiyo zara apnay style say” also hit to the young
people. As in this busy world when everyone busy in his own life and no one
have time for others and everyone wants that others adopt their style instead
thy adopt the style of others. So you will see that almost all people especially
used to say jiyo apnay style say means the way or manner in which you want to
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pass your life. So we can say that jazz create action desire, interest and
attention.
Advertising of Paktel
The New Paktel Blues:
Type Phase
The brain acknowledges and remembers shapes first. Reading is not
necessary to be able to identify shapes, but identifying shapes is necessary to
be able to read. Since simple and distinctive shape makes a faster imprint on
human memory, Paktel GSM logo is accordingly held fast.

Paktel GSM font is futuristic depicting a clear and modern approach. Simple
and in italics it depicts the move forward yet comes out as composed and a
coherent whole.
The new refined font coupled the tinge of dexterity transforms in to a flexible
outlook. The blue background gives the brand a young and fresher look,
whereas the type phase, illustrates the confidence, stability and corporate
image.
Colour
Colour is second in sequence; colour can trigger an emotion and evoke brand
associations. Paktel GSM.

Different people, different landscapes, different cultures, but one nation, one
common expression, one common voice, one choice-Paktel GSM- a brand that
understands your needs and speaks to your mind and heart.
Paktel GSM is young, progressive, energetic, genuine and honest, clearly
someone from your bunch of friends, who never lets you down and deeply
inclined to your side-a true companion and well wisher.

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Paktel GSM, a fresh dynamic and customized brand befitting your lifestyle in
order that you feel it as part of your life. A brand that you can always count on,
sincerely, that understands your needs, wishes and desires and helps you get
connected with your loved ones anywhere, anytime.
So break your blush, speak your heart out and be good to your expression as
Paktel GSM is all set to mesmerize you with the ever-entertaining journey of
life.
Communication of Paktel
The Paktel immense advertisement communicates that you can talk to
anyone any time from your Paktel connection .You can say others the secrets of
your heart and the voice of your heart and for this purpose you don‘t need to
wait. Anytime anywhere you can talk to them by using your Paktel GSM. When
we belong to one nation, one country, one land and one sky then why you wait
to talk to your love ones. Our soul is one our heart is one and we have only one
body. Whenever the memory and reminiscences of our loved one disturb us we
can talk to them. Now distance and boundaries doesn‘t matter. You can love of
your loved ones from all over the country. Although our destinations, aims and
goals are separate. But come and finish these distances and come close to each
other. And this is the voice of millions of Pakistanis
Tango
The communication of tango when compared to other products is very poor.
but there was a time when tango‗s slogan “is say sastee sirf khamoshee” attract a
lot of clients towards them and Paktel earn quite a large number of revenue
from this but now this product completes its life cycle and Paktel decided to
finish this product from the market. The total share of tango in the prepaid
customers of GSM is about 3 to 4%.

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Comparison of Advertising of Mobilink & Paktel
The commercial of Paktel is quite attractive when compared to Mobilink. The
whole advertisement campaign is given to “Red Communications”. Its T.V
commercial of Paktel GSM has the budget about 10 million in which different
cultures and people are shown. But the slogan of Paktel does not give any
specific meaning .People can‘t understand what they want to say until you will
hear the whole song then you will able to get some meaning. The ad has only
colours but it is senseless. Paktel is spending enormous money on its
advertisement.

They telecasted the Paktel song on GEO T.V before 8 O‘ clock news which is
one of the most favourite T.V Channels for about one month. On Eid-ul-Fitar
Paktel commercial is repeated after every 5 minutes .It looked that there was a
competition and a tussle between U-Fone and Paktel and each one try to
dominate other .They sponsored the transmission of many T.V channels as
I.M. On Eid-ul-Azha Paktel sponsored many T.V programmes on ARY and
Indus Vision. But the question arises that is all this create enough revenues? Is
their advertisement budget is more then the revenues they get? Is it effecting
people decision making? Is Paktel succeeding in snatching customers from the
market leader? If yes then why the customer base just increases from 351,170
to 488,343 in three months? The difference is 137,173 averages of 45,724
and average sale of connections per day is only 1,524 and Paktel according to
market share is still on 4th position.
The new T.V commercial of Mobilink Jazz now a days is very attractive. Now
a day Only Jazz ads are on air and new Jazz ad is also attractive but there was
a time when Mobilink T.V ad of Mobilink star was the most favourite T.V
commercial of many people. Its commercial of Mobilink Indigo is also very
attractive but Mobilink is penetrated and has made its position in the market
that it does not require a massive advertising. Its brand has made position on
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the minds of people now every cell phone user is well aware of Mobilink. The
slogans of Mobilink are very popular, well known and well understand.
Mobilink is doing its advertising in a very systematic manner so that its
message has been given very quickly to different segments of the society. Its
market share has grown very significantly and captures about 60% of total
Market share.

Comparison of Billboards of Paktel and Mobilink


When you will outside, you will see a lot of ads in the form of banners and
huge and gigantic billboards at many places attract your attention
automatically. There is huge billboard on the top of a century tower at Kalma
Chowk, which is one of the top places of advertisement in Lahore where the
view of the board is made from 4 sides. Mobilink occupy this silver place from
a long time whenever any new offer is given it is put over there. Paktel is also
not behind you will see there billboards at many places as on Canal at Barket
chowk, at Town ship entrance and at so many places
Comparison of Print Media and Brochures
Mobilink advertises its various ads in routine in many famous newspapers;
the new Jazz ad of Mobilink is coming in many newspapers on front paper
Paktel is not behind from Mobilink in any way. Whenever any offer is given in
the newspaper on the front paper and sometimes full page ad is given which
automatically attract the attention of people.

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This ad is published in dawn and in Jang newspaper on the front page about
20-25 days before in which Mobilink is offering the mobile of the year.
Publicity
Publicity is the generation of awareness about a product beyond regular
advertising methods.
Usually publicity is less costly than advertising because sometimes the
message is spread for free by a newspaper article or TV story.
Examples of Publicity
famous person photographed using your product or famous people in the
ads e.g. Film actor Shan in the commercial of Mobilink Indigo and Ali
Azmat in the ad of Paktel GSM

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your product mentioned in National News in a positive way e.g. various
articles published in newspapers in which telecommunication and cellular
trend is mentioned
When officially many events are celebrated as Basant now a days another
way of Publicity. Mobilink always celebrate its Basant in Faisalabad But
Paktel didn‘t celebrate Basant this year. Last year they celebrate it on the
top roof of Sidique trade centre. But many other displays were put on at
many places of Lahore

Advertising versus Publicity

Factor Advertising
Publicity
Control Great Little

Credibility Lower Higher

Reach Measurable Undetermined

Frequency Schedulable Uncontrollable

Cost High/Specific Low/Unspecified

Flexibility High
Low
Timing Specifiable Tentative

Sales Promotion
It is the short term incentives to encourage the purchase or sale of a product
or service
Major sales promotion tools used by Paktel and Mobilink are
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Point of Purchase (POP)
Point of purchase include displays and demonstrations that take place at the
point of purchase or sale e.g. at many franchises and dealers you will see the
huge posters and brochures of Paktel and Mobilink which attract the buyers
but unfortunately many retailers do not like to handle hundreds of brochures
and displays. Therefore, manufacturers have responded by offering better POP
material tying them within with television or print message, and offering to set
them up.

Price Pack
Price pack is reduced price that is marked by the producer directly on the
label or package. Price packs can be single package or two related products
banded together as Mobilink offers connection plus Rs 300 plus Nokia
3310 in just 4,500. Similarly, Paktel offers connection plus scratch card and
Nokia 3310 for just RS 3,999.

Premium
Premium is good offered either free or at low cost as an incentive to buy a
product. Mobilink is offering call and control on Indigo in which same bill,
same connection but having two numbers .You have to pay the line rent only
and the person who is having supplementary connection enjoys the benefits of
post-paid by using the scratch cards in prepaid form.
Direct Marketing
Direct marketing is the direct communication with the carefully targeted
individual consumers to obtain an immediate response.

Customer database
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Customer database is an organized collection of comprehensive data about
individual customers or prospects, including geographic, demographic
psychographics and behavioural data. Mobilink is outdated all others in this
regard as it is maintaining a huge database of about 5 million customers and
in which it is maintaining the data about each and every call, its duration, date
of billing, time of paying bill, date and time of card loading and of which
denomination. In short all the history of the customer calling behaviour from
the first day of using Mobilink.
Telemarketing
Telemarketing is using the telephone to sell directly to customers. Mobilink
also win the game in this regard. It calls to its customer when hey first time got
the connection of Mobilink but this welcome call is given only to post-paid. But
very soon this welcome call will be given to prepaid customers also. Mobilink
also send SMS to its customers on many events and festivals. Mobilink also
send SMS and call its customers at the end of expiry of the grace period of the
card

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What is Place
Place is also known as channel, distribution. It is the mechanism through
which goods and/or services are moved from the manufacturer/ service
provider to the user or consumer.
According to Bucklin;
―A channel of distribution comprises a set of institutions which perform all of
the activities utilised to move a product and its title from production to
consumption.‖

Place Strategy
The part of the marketing mix concerned with:
– Getting the product from producer to buyer
– Physical transportation and handling
– Choice of sales outlets
– Intensity of market coverage

There are two basic channel decisions,

1. Does a company use direct or indirect channels? (e.g. 'direct' to a


consumer, 'indirect' via a retailer)
2. Single or multiple channels

Mobilink and Paktel use both direct and indirect channel of distribution,
their connections are available on their distributors as well as franchises and
retailers, so that they are using multiple channel of distribution .

Types of Channel
The consumer's source of purchase is mainly through the Distributors,
Franchise and retailers.

1. Distributors:-
Distributors are considered as the ―backbone” of a company. They break
down 'bulk' into smaller packages for resale by a retailer and also they sell
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connections to the customer at lower price than the company‘s customer
service centre gives. Both cellular companies Paktel and Mobilink have their
distributors in Hafeez Centre and Hall Road.

2. Franchise
Franchise is the ―A business contract in which an independent business (the
franchisee) sells or markets the products and/or services of a larger firm (the
franchiser). The franchisee receives training and marketing support from the
franchiser and pays a fee for ongoing support‖

Every Paktel and Mobilink Franchises extends a full range of services and
reliability that is associated with the Paktel & Mobilink brand. Each franchise
is adequately equipped to process sales, collect bills and offer other customer
services e.g. Scratch cards, Information on services and facilities and much
more…so that their customers can find a Mobilink & Paktel contact as near
them as possible.

Mobilink is the first mobile operator to introduce the ―franchise‖ concept in


the mobile industry in Pakistan, and currently operates the largest franchise
network in Pakistan with over 250 franchisee/national distributors. All
franchisees have trained sales and service staff, fully capable of tackling sales
challenges.

Paktel has 246 franchises all over the Pakistan All franchises have been
newly renovated. Paktel‘s franchise motto is ―we serve with a smile‖. They offer
Paktel‘s sales and customer services facilities under one roof for customer‘s
convenience.

Comparison
Mobilink has 15 and Paktel has 18 franchises in Lahore.

Mobilink Paktel
Dataderbar Garden Town
Shah Alam Thokar Niyaz Baig
Centre Point Bhatti
College Road Peco Road
Faisal Town Johar Town
Jail Road Jail Road(EFU building)
Shadman Shadbagh
Gulberg Gulberg
Main Boulevard(I.Q) Main Boulevard(defence)

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Link Road(M.T) Link Road(Shalamar)
Davis Road Baddian Road
Mulana Shauqat Ali Road Samanabad
Cantt. General Hospital
Ferozepur Road Yateeem Khana
Township Township
Shahdara
Emperos Road
Mall Road

3. Retailers
Retailers are also measured as an important channel of distribution.
According to a survey of Dawn, 48% cellular connections are sold through
retailers. The role of retailer in selling is important because:

Retailers will have a much stronger personal relationship with the


consumer.

The retailer will hold several other brands and products. A consumer
will expect to be exposed to many products.

Products and services are promoted and merchandised by the retailer.


The retailer will give the final selling price to the product

Retailers value a lot to the Mobilink, Paktel and other cellular companies. In
Every street and in every area of the country their retailers are available from
them customer can get scratch cards and connections. Mobilink and Paktel
entertain their retailers by offering them scratch cards and connections at
lower price.

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Marketing Channels

Company Company Company Company

Distributors Franchise

Distributors Retailers

Customer Customer Customer Customer

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Competitive Advantage
It is an advantage over competitors gained by offering consumers greater
value then competitors offer
Various strategies adopted by Mobilink and Paktel are
1. Penetrating Strategy
2. Focus Strategy
3. Differentiation Strategy
4. Market Development Strategy
1. Penetrating Strategy
It is a strategy for company growth by increasing sales of current products to
current market segment without changing the product.
Mobilink first priority is of penetration in the market because at this time
when its market share is quite high and two new companies will launch soon
then Mobilink is trying to make its customers loyal as much as they can.
2. Focus Strategy
In this the company focuses its effort on serving a few market segments well
rather then going after the whole market.
Although Mobilink first priority is of penetration but in the long run it‘s
planning to serve only few market segments.
3. Differentiation Strategy
In this the company is trying to concentrate on creating a highly
differentiated product line and marketing program so that it comes across as
the leader in the industry.
In this arena of cellular trend almost all companies are providing almost the
same products. But still Paktel and Mobilink still adopting differentiating
strategy as Paktel‘s Tango has some unique features which others don‘t have.
In late night Tango to Tango call is free. This service is unique and different as
it is not offered by any other cellular company. Similarly, Mobilink call &
Control is also unique as it is a unique combination of post-paid and prepaid.
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In this one connection you can get one supplementary connection then you
have to pay the line rent and other charges then you have to use it as prepaid
by using card. This system is very useful for U-Fone hit the market by
providing the services of GPRS and MMS services but Mobilink will launch its
services of GPRS and MMS in the start of March 2005. At this time this facility
is provide to at only official level to its employees only. So Paktel and Mobilink
both are striving for the new products and services. But Mobilink has some
advantage over Paktel as it has much more services than Paktel and its
coverage is also largest among the entire service providers in the country.
4. Market Development Strategy
A strategy for company growth by identifying and developing new marketing
segments for current company products.
This is the basic strategy of Paktel to increase its clientele as its share in the
market is lowest so it is trying its best to increase their customers because
there is a lot of potential in the market for new customers. Mobilink second
strategy after penetration is market development. It wants to increase its
customers but at the sane time want to retain only those customers who will
generate enough revenue and at the same time remain with them for a long
time
Are there Winning Marketing Practices
Besides winning business practices, is there a set of winning marketing
practices? One frequently hears of one liner formulas that promise marketing
success. Here are nine of more prominent one-liners:
1. Win through higher Quality
Everyone agrees that poor quality is bad for business. Customers who have
been burned with bad quality won‘t return and will bad mouth the company.
As all the cellular service provider companies have very poor services and most
of the time you find difficulty in connectivity. As long as Paktel was on AMPS
only its connectivity was considered to be best. But due to its conversion on
GSM its service is no longer considered to be good although its AMPS
customers are still quite satisfied with its service but GSM customers
continuously complaining the disturbance in the connection and
disconnection. On the other hand Mobilink connections also give errors or no
signals on any national event and religious festivals. But Mobilink first priority
is now good service and they want it at any cost.
2. Win through better Customer service
We all want good service. But customers define it in different ways. Every
service breaks down into a list of attributes like speed, cordiality, knowledge,

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problem-solving and so on. When we compare there services of Mobilink and
Paktel we will immediately come with a conclusion. There was a time when
Paktel customer services were very good but when they franchised their sales
and customer offices there services proved to be very poor. On the other hand
the customer services of Mobilink proved to be excellent. Even when you will
call to their call centre they will very politely provide the answers of your
queries. In short the Mobilink customer services are much better then that of
Paktel. The basic theme on which Mobilink wants to win the market is on
better connectivity and customer services.
3. Win through Lower Prices
Paktel was trying to snatch the market from market leader on the basis of
prices but its dream has been broken by U-Fone by lowering down its price
amazingly from Rs 5 to Rs 3.
4. Win through higher Market share
Generally speaking, market share leaders make more money than their lamer
competitors. They enjoy scale economies and higher brand recognition. There
is a ―bandwagon effect‖ and first time many buyers have more confidence in
choosing the company‘s product. That‘s why people are automatically attracted
towards Mobilink and especially the youngsters towards Jazz. Mobilink, no
doubt wins the market through its high share.
5. Win through continuous Product Improvement
Continuous product improvement is also a sound strategy. Mobilink is
working in this regard as it will offer the services of GPRS and MMS to its
customers in the start of March. Although U-Fone has an edge over all other
cellular companies in providing more value added services but Mobilink
finishes its competitive edge of U-Fone in this regard.

Competitive advantage of Paktel over Mobilink


The only competitive advantage of Paktel over Mobilink is low prices and the
pioneer in the cellular industry
Competitive advantage of Mobilink over Paktel
The Mobilink has many competitive advantages over Paktel. First is highest
market share second is pioneer of GSM and in GSM for about 11 years where as
Paktel in GSM is like a new born baby. Third advantage is superior customer
services and fourth is qualified professional staff. Fifth the most important and
last one but not least is people perception and brand loyalty for Mobilink

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Marketing Strategies for Competitive Advantage

Mobilink U-Fone

Strategy a Company
Adopts
Depends on Its
Instaphone Industry Position
Paktel

Market Leader
The firm with the largest share in the market is the market leader.
Mobilink with about 60% market share is the leader.
Market Leader Strategies
Expanding the Total demand
Market leader can expand the total demand of their products by
developing new users, new uses and more usage of the same product.
Mobilink is adopting this strategy in order to get the highest share in the
market. By adopting market development, they are maintaining their
highest share.

Protecting Market Share


The market leader also tries to maintain and protect its highest share in
the market by adopting various strategies. Mobilink also try to maintain its
share by providing superior customer services, trying to overcome its
weaknesses. The leader should ―plug hole‖ so that competitors can‘t jump
in.

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Market Follower strategies
Not all runner-up companies challenge the market leader. Challenges are
never taken lightly by the market leader. As in this case Paktel although the
market follower but challenges the Mobilink by lowering down their prices
and by massive advertising in order to attract the customer. Follower is not
the same is being passive or carbon copy of the leader. Each follower tries to
bring distinctive advantage to its target market as Paktel tries to get
customers on low charges.

Pull Strategy
Pull tactic is customarily based on an advertising campaign targeted to the
end consumer, i.e. is the person who is going to use the product - the person
who is going to use the mobile phone. In this competitive arena both Paktel
and Mobilink is adopting pull strategies to attract customers. The
advertising of both companies is massive and customer-oriented.
Push Strategy
Push" tactic is not based at the end consumer but at the other members of
the distribution channel. This can be done by means of special offers, trade
allowances, contractual agreements and other methods. All these methods
focus on stocking the middle person, i.e. the person between the
manufacturer and the end consumer. The both companies are providing
them enough incentive to their retailers and distributors so that they will
sell their more and more connections. In this the distributor and retailer
has been given commission on every connection so that when more and
more connections they sell more they got commission.

Competitor-centred company
Competitor-centred company is a company whose moves are mainly
based on competitor‘s actions and reactions. Paktel is a Competitor-centred
company as it‘s mostly decisions are made after the changes in marketing
strategies of Mobilink and U-Fone.
Market-Centred company
Market-centred company is a company that pays balanced attention to
both customers and competitors in designing its marketing strategies.
Mobilink is a Market-Centred company as it proved attention to its
customers and also keeps an eagle eye on changing marketing environment

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BCG Matrix

Relative Market Share


High Low

Stars Question Marks


?
High
Market Growth Rate

Indigo Paktel GSM


• High growth & share • High growth, low share
• Profit potential • Build into Stars or phase out
• May need heavy • Require cash to hold
investment to grow market share
Cash Cows Dogs
Jazz Tango
• Low growth, high share • Low growth & share
• Established, successful • Low profit potential
Low

SBU‟s
•Produce cash

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Gone are the days when a man could be judged by his shoes. With mobile
phones and different services provided by the cellular connection entirely
change the living style. Hot on the heels of the unique take-off in advanced
economies of modern communications technology, a world of innovation is
now at the fingertips of most of Pakistan's elite. The introduction of mobile
phones to Pakistan's shores has been a smashing success, if profit figures of the
four mobile network service providers are anything to go by. Demand it seems
has never been higher. And with an eager professional class quick to capitalize
on the business possibilities of the new technology, coupled with an increase in
the ranks of a fashion-elite ever keen to refine its yuppie airs, the sales of
mobile phones are soaring, posting almost incremental increases over the past
three years.

The mobile phone service has become integral part of the growth, success
and efficiency of any economy. The mobile industry has come a long way since
its lacklustre debut in the nineties. For Instaphone, Mobilink, Ufone and
Paktel - the four service providers in Pakistan - this has meant a huge increase
in research and development. The stakes are high, with each service jostling to
entrench its position in an ever expanding market. Investment has been heavy
in network expansion, with million dollar deals being cut with international
companies. This is good news for customers. A new world of competition in
pricing and technology has opened up, with a number of value added services
on offer, designed to lure a particular niche market. Whether in the form of a
chat club service for the young and trendy, or corporate club discount options,
the wonders of the latest mobile phones can include options such as mobile

88
banking, fax and information services, internet access, instant updates,
conference calling and g-mail.

Mobile telecommunications service providers operate in an environment of


intense competition and high customer turnover as Pakistan has awarded two
new cellular phone licenses to Warid Telecom of the UAE Syrian based Space
Telecom and Norway's Telenor Mobile Communications to meet the country's
growing demand for mobile phone services. Maintaining customer loyalty in
this market was a key challenge for the cellular companies, survey shows that
on the average, a person can only spare 30 percent of his/her income for
telecommunication needs. With the per capita income of $495, a person can
spare only $1.37 for all telecom services it is expected that mobile phone
subscriptions worldwide will increase to 15 to 20 times more in 5 years, and to
remain in the market consumer protection is a key consideration in the
introduction of competition to telecom markets.

The mobile phone business in Pakistan, however, with all its possibilities, is
still in its infancy. Far and away, 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, Mobilink enjoys 63% as the figures till December
2004 and Paktel having only 7% of the market share. Mobilink has more than
5.5 million subscribers where has Paktel only has 488 thousand subscribers all
over the Pakistan.

Now a days wireless world is GSM based instead of AMPS. Mobilink is the
pioneer of GSM in Pakistan telecommunication sector and operated from 1994
till 2005, where as Paktel shifted from AMPS to GSM in 2004. Mobilink has a
geographical coverage of more than 300 cities whereas Paktel offers GSM
coverage in only 67 cities. Both companies provide prepaid and post paid
packages at different rates. Paktel was considered as the cheapest call charger
connection with airtime 3.75/min but now Ufone offers 3.00/min. If we have
a look at the Mobilink call charges then Mobilink charged 4.75/min but the
question is: IS Price Enough To Win the market share or customer trust on
company or give more satisfaction to the customer? the answer would be
simply no.. Customer will happy from the company when they got the required
value and satisfaction. This is the main reason on the basis of which with the
higher call rate Mobilink still on the top, because Mobilink emphasize on the
better services whereas Paktel believe to win the market on price war.

Increased competition during the past three years provided the impetus to
service providers to incorporate various fun elements to their service. A range
of value-added services have been developed, serving as a popular marketing
lure for customers susceptible to all that is trendy. A range of popular extras
such as caller line identification, voice mail, conference call and call waiting
facilities, compete with fun options such as a range of SMS, chat clubs, internet
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email notifications, and internet connections. For the executive class these
options include fax and information services, instant news updates and
business features such as mobile banking. Mobilink and Instaphone have
invested heavily in these additions with Paktel and Ufone lagging far behind.

With each network hoping to throw out the sales of the other, the revolution
in new technology provides another means of competition. Encouraged by the
rising market for cellular phones, all networks have undertaken massive
technological development and continue to do so with a combined expenditure
of US 120 million dollars this year

In the success of a company, employees attitude towards customers really


means because customers are the assets of the company. Mobilink and Paktel
both has customer service centres/franchise, but performance and attitude
vise Mobilink with its well educated and trained staff take the lead over the
Paktel, Mobilink‘s Customer service too is friendly, with an automated phone
mechanism that directs customers to particular departments, providing a
choice of Urdu- or English-speaking operator, whereas Paktel‘s staff is not
fully trained in the dealing with customers and always make customers wait for
their services and take or sometimes not attend phone from toll free numbers
to answer the customers complaints. It is in the PTA report that Mobilink, is
the only mobile company took steps for the betterment of quality.

Advertising is a manner to differentiation of competence. There are many


products very similar in the market. Companies inform to the audience about
which characteristics have their product, which are different to others. By
way of advertising companies can send this information easily to the audience.
Many television commercials feature catchy jingles (songs or melodies) or
catch-phrases that generate sustained appeal, which may remain in the minds
of television viewers long after the span of the advertising campaign. For
cellular companies like Mobilink, Paktel, Ufone advertisement has a great
worth. Although Paktel add ―Dil Tu AIk hai‖ is appreciated by the people but
that does not make any sense, brand image is very weak. Paktel will have to
elaborate the features benefits and highlight these in their advertisements to
increase the awareness amongst the target market. The attribute of clarity,
coverage and connectivity will have to be highlighted in the ads of the
campaign, whereas in the Mobilink adds they enhanced the services provided
by the company.

Now the question arises that Mobilink has the higher connection charges
and higher call rate than the Paktel, Ufone and Instaphone then Why
Mobilink still the market leader?? The reputation of the company is partially
based on the people perception, People considered Paktel as old brand and
confused about their services whereas Mobilink elaborate its brand and its
services in the minds of the people very nicely so that they become loyal with
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the Mobilink. To be the victor in telecommunication sector Paktel has to
concentrate on their services.

The expected competitors of the mobile companies are Al-Warid and


Telenor. Though GOCDMA and PTCL wireless connections effect the
cellular industry, but they are not strong threat for the existing mobile
companies because they will be useful and useable only in a described or
specific area (10-25kms).But if a person wants to call beyond the particular
area PTCL wireless and GOCDMA are of no use, that time only a mobile has
value for the customer because they has mobility and you can call wherever
you want to. In other words at that time only mobile companies will be your
companion.

Al-Warid and Telenor are the new cellular companies which start giving their
connections in the first quarter of this year. Telenor is considered as the
strong competitor for the cellular industry than Al-Warid because it has a
powerful cellular background as it is the leading cellular company in Norway
and Bangladesh and having 55% market share in Bangladesh and develop
its position as mobile operator in 12 countries. But if we talk about Al-Warid
owned by the Abu Dhabi group (Sheikh Nahayaan Mubarak Al-Nahayaan), we
don‘t find any cellular background.

So what will the technology race and heavy duty investment offer Pakistani
customers in the future? Prices of handsets and accessories have fallen
precipitously as companies struggle to increase their market share. "The
mobile phone is now more of a necessity and less of a luxury," Intense
competition in the western world has led companies to offer throw away deals
with free phones, discounted line rental, and a host of free mobile accessories.
These trends may very well be mirrored in Pakistan once the market stabilises.
With the proliferation of new technologies and new innovations, Pakistani
companies will also be attracted by what they stand to gain by making their
services more accessible. Muslim Commercial Bank has already teamed up
with Mobilink to offer a mobile banking service. Customers of Mobilink and
MCB can now make inquiries about their account balance through their
phones using the SMS messaging facility, and are able to receive mini-
statements. This venture has also provided MCB with a unique advertising
opportunity - they can now save on advertising costs by texting their customers
with the latest in products and services. Mobile commerce might just change
the way people work, giving companies a more customer-focused look.

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Kindly fill the form with the correct information and return back to the investigator.
If you have any difficulty in filling the form kindly ask the investigator instead of filling
it wrongly.

Age group
a) 16-25 b) 26-35 c) 36-45 d) Above 45

Gender
a) Male b) Female

Occupation
a)Business b)Salaried c) Student d)Others

Income level
a) below10,000 b)10,000-25,000
c) 25,000-40,000 d) above 40,000

1) How long you are using mobile? ___________________

2) What type of connection you have?


a)Prepaid b)Postpaid
And of which cellular company?
a) Mobilink
b) Paktel
c) Ufone
d) Instaphone

3) Which feature you consider while buying your connection?


a) Airtime
b) GPRS
c) Connectivity
d) Connection Charges
e) Value added services (online billing etc)

4) Do you buy your connection for?


a) Company reputation
b) Geographical coverage
c) Advertisement
d) Reference Group

5) How you find the services of your connection?


a) High
b) Medium
c) Low

6) You mostly use your mobile phone for?


a) Calling
b) SMS
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c) Utilities

7) Have you ever quit from one connection to another? Yes_________ No___________
a) Mobilink to ____________
b) Ufone to ____________
c)Paktel to ____________
d)Instaphone to____________

8) How many connections you have and of which mobile companies?

___________________________________________________________________________
_

9) Which mobile company you think is best?


a) Mobilink
b) Paktel
c) Ufone
d) Instaphone
Why?
___________________________________________________________________________
_____

10) Are you satisfied with your connection?


a) Yes
b) No

11)How do you find the customer services of he company of which you are using
connection??
a)Excellent
b)Good
c)Satisfied
d)Poor

12)Which cellular company’s commercial attracts you most?


a) Mobilink
b) Paktel
c) Ufone
d) Instaphone

13)If new company will offer better service and package will u switch over from your
existing connection?
a) Yes
b) No

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14)Recommendations for your cellular company

___________________________________________________________________________
____

___________________________________________________________________________
_____

___________________________________________________________________________
_____

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Mobilink

Strength
Highest market share.
Brand Loyalty
Highest coverage
Low connection charges
Excellent customer services.
Aggressive Advertisement
Trained & qualified staff
Superb internal environment
Tremendous information systems and having huge customer databases.
First-rate company reputation so people creates good word of mouth
about Mobilink.
Trained and qualified staff.
Weaknesses
Poor connectivity especially at festivals and events
Balance deduction is not reliable.
High rates with comparison to other companies
Decisions made by head office so there is a delay in decision making.
Opportunities
To reduce prices
Increase customers on the basis of company reputation and by reducing
prices, as there is a huge potential in the market.
Increase its geographical cities
More and better advertisement
Increase sale to post-paid customers by giving them incentives.

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Threats
Upcoming mobile companies i.e. Telenor & Al-Warid especially Telenor
because it has vast experience in cellular industry and largest cellular
service provider in Norway.
WLL companies as GO CDMA & wireless of PTCL.
U-Fone as it has lowest charges and totally Government owned so has
full support from Government.

Paktel

Strengths
Low prices.
Packages like free 100 SMS.
Newly introduced GSM.
High connectivity.
Aggressive advertisement.
Low connection charges.
Many bundle offers at lowest prices compared to Mobilink.
Weaknesses
Low market share.
AMPS connections are not convertible GSM connections.
Low geographical coverage.
Balance is not deducted according to advertisement.
Very poor customer services.
Call centre does not reply.
Poor connectivity of GSM, line distortion.
Untrained & unqualified staff.

Opportunities
To increase market share.
To increase areas of geographical coverage.
To shift all numbers from AMPS to GSM.
To increase sale of post-paid connections.
Introduce Mobile banking.
Introduce GPRS & MMS.
Provide more value added services.
Increase customers through better customer services.

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Threats
Market leader i.e. Mobilink.
Upcoming mobile companies i.e. Telenor, Al-Warid.
Low brand loyalty of Paktel customers.
U-fone totally owned by Government has much lower prices.

Recommendations

Mobilink
To improve connectivity at special occasions like Eid & Basant etc.
To make reliable the system for deducting the balance for both prepaid
and post-paid customers.
To provide SMS free of cost to further attract customers.
To make advertisement more strong.
To reduce their prices in order to attract more customers.
To introduce cards of lower denominations & their validity.
They should provide online services.

Paktel
To increase the coverage areas.
To improve the services further.
To make the balance deductive method more reliable.
To advertise more directly.
To show all the charges including tax & PTCL charges instead of only
showing the airtime/min in the advertisement.
To make their customers brand loyal by providing them with best
services.
To improve the quality of customer services.
To introduce such exciting services like GPRS & MMS.
Not to provide customer services on the franchises.
To provide more value added services.
They should update their website.
Customer care numbers should respond.
They should introduce a system to convert the AMPS connections to
GSM connections without changing the numbers.

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Conclusion

We have seen the over all performance of both the companies i-e Mobilink &
Paktel. From all the above information and the research we have conducted by
our selves it is clear that in spite of the fact that Paktel is trying its best to grab
the market share by lowering the prices frequently, but still Mobilink is the
best. Mobilink is the market leader and is also admitted by all other mobile
companies too. In spite of the fact that the Paktel is the oldest mobile company
in Pakistan it has not done much to capture the market share. The main for
this what we think is that there customers have no brand loyalty, they
themselves say it. And the same reason apply to Mobilink for its big market
share that is, its customers are brand loyal. According to news report Mobilink
has invested recently $400 billion in year 2005. So now it has a total
investment of mor4e than a billion dollars. According to an estimate total
number of people using mobile phone in Pakistan are 80 lakh of which 50 lakh
are using Mobilink. Paktel has tried its best through its advertisement to
attract the customers but instead of all this it has not successfully achieved its
objective. The other thing is that it has senseless advertisement. It does not
clearly communicate what it should. On the other hand Mobilink ‘s
advertisement is quite sensible and people can clearly understand what they
want to communicate.

Although Mobilink also has some weaknesses like customers are very
unsatisfied with its services on special occasions like Eid etc, whereas the
customers of Paktel have no such complaints. Another major drawback of
Mobilink is that its prices are still high than any other company in Pakistan.
But still a lot of people use Mobilink specially its Jazz package because a lot of
people think that it is affordable. Its affordability can be judged with the fact
that today a ‗gawala, a chicken seller or a vegetable seller‘ is using Jazz. Jazz
has become so popular now a days that almost 50-60% people li8ke to have
Jazz. Especially more youngsters are using Jazz. It may be due to the fact that a
lot of their family members and friends are using Jazz and they can talk to
them at much lower rate if they too are using Jazz. Mobilink has also done
segmentation for its customers. It has done income segmentation. It hits
individuals and youngsters who have low income for its prepaid packages-Jazz
and hits corporate base and business people with high income for its postpaid
packages. Mobilink also believe to charge different prices from different people
i-e geographical pricing. On the other hand Paktel hits only individuals and
does not believe in geographical pricing. When we talked to a representative of
Mobilink, he told us that price war is not a solution, customer want better
customer services and a quality service, what Mobilink is try to provide. The
thinking of Paktel people is quite different in this regard. They say that
customer want services and low airtime charges. Now we can judge by
ourselves whose strategy is best by analyzing the way these companies are
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making progress. Mobilink want customers that are good pay master and long
lasting. The Mobilink marketing manage3r Mr. Awais said that the brand
name of Mobilink make it the market leader and differentiate the company and
its brands from its competitors. And we think this is quite right. In answer to a
question that how you encourage your customers to use your connection a
manager of Mobilink said, ― by extensive advertisement and quality of service‖
and the manager of Paktel answered the same question ― by lowering prices‖.
So the main problem with Paktel people is that they consider the prices and the
airtime charges as the most important factor. However, this is not the case in
reality. People want good services and like the company that cares for the
customers on which Mobilink is focusing .
In the end we will recommend for the Paktel to change its strategy from
focusing on just lowering the prices to customer care and better services.
Although Mobilink is a market leader but it should also improve its services
specially connectivity at different occasions and complete its upgrading as soon
as possible so that people facing problems in connectivity may not face it more.

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Summary
Comparison of Mobilink & Paktel
Gone are the days when a man could be judged by his shoes. With mobile phones and
different services provided by the cellular connection entirely change the living style. The
mobile phone service has become integral part of the growth, success and efficiency of any
economy. It is expected that mobile phone subscriptions worldwide will increase to 15 to 20
times more in 5 years, and to remain in the market consumer protection is a key consideration
in the introduction of competition to telecom markets.
Mobile telecommunications service providers operate in an environment of intense
competition and high customer turnover as Pakistan has awarded two new cellular phone
licenses to Al-Warid and Telenor to meet the country's growing demand for mobile phone
services.
Now a days cellular world is GSM based instead of AMPS. Mobilink is the pioneer of
GSM in Pakistan telecommunication sector and operated from 1994, where as Paktel the
pioneer of cellular industry in Pakistan started in 1990, shifted from AMPS to GSM in 2004.
Mobilink has a geographical coverage of more than 300 cities whereas Paktel offers GSM
coverage in only 67 cities.
Products: Both companies provide prepaid and post paid packages at different rates.
Mobilink‟s packages
Prepaid packages: - Jazz
Postpaid packages: - Call & Control, Indigo
Paktel‟s packages
Prepaid packages: - Tango, Paktel GSM prepaid
Postpaid packages: - Paktel GSM postpaid
Price: Paktel is considered as the cheapest call charger connection with airtime 3.75/min and
Mobilink charges 4.75/min. Mobilink emphasize on the better services whereas Paktel believe
to win the market on price war. But price war is not the solution.
Place: Mobilink and Paktel use both direct and indirect channel of distribution, their
connections are available on their distributors as well as franchises and retailers, so that they
are using multiple channel of distribution. Mobilink operates more than 250 franchisee all
over the Pakistan whereas Paktel has 246 franchisee in Pakistan.
Promotion: Mobilink and Paktel are adopting various promotion strategies in order to attract
the customers, one of them is through TV ad, Paktel ad “Dil Tu AIk hai” is appreciated by the
people but that does not make any sense, brand image is very weak. Paktel will have to
elaborate the features benefits and highlight these in their advertisements to increase the
awareness amongst the target market. The attribute of clarity, coverage and connectivity will
have to be highlighted in the ads of the campaign, whereas in the Mobilink ads they enhanced
the services provided by the company.

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SWOT Analysis:
Mobilink:
Strengths
Highest market share.
Highest coverage
Excellent customer services.

Weaknesses
Poor connectivity especially at festivals and events
Balance deduction is not reliable.
High rates with comparison to other companies.
Opportunities
To reduce prices.
More and better advertisement.
Increase sale to post-paid customers by giving them incentives.
Threats
Upcoming mobile companies i.e. Telenor & Al-Warid especially Telenor because it has
vast experience in cellular industry and largest cellular service provider in Norway.
Paktel:
Strengths:
Low prices.
Packages like free 100 SMS.
Weaknesses:
Low market share.
AMPS connections are not convertible GSM connections.
Low geographical coverage.
Opportunities:
To increase market share.
To increase areas of geographical coverage.
Increase customers through better customer services.
Threats:
Market leader i.e. Mobilink.
Upcoming mobile companies i.e. Telenor, Al-Warid.
Conclusion:
In the end we will recommend for the Paktel to change its strategy from focusing on just
lowering the prices to customer care and better services. Although Mobilink is a market leader
but it should also improve its services specially connectivity at different occasions and
complete its upgrading as soon as possible so that people facing problems in connectivity may
not face it more.

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