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Introduction

Zong that is providing both Zong 3G Packages and Zong 4G LTE Packages in Pakistan, with
the claim that Zong is the blazing fast internet provider.

PEST ANALYSIS
Introduction
A PEST analysis for the telecommunications industry needs to be divided into the four
categories:
1.
2.
3.
4.

Political,
Economic,
Social and
Technological.

Each of these subcategories of a PEST analysis help build up an idea of the framework that helps
macro-environmental factors used in the environmental scanning component of strategic
management. A PEST analysis is part of the external analysis that is carried out when doing
market research, and gives an idea of the macro-environmental factors that a company needs to
keep in consideration.

PEST Analysis of Pakistan Telecommunication Sector:

Pakistan is on the verge of Telecom revolution Pakistan continues to be one of the fastest
growing telecom markets in the world.
Reforms introduced by successive Pakistani governments over the last decade have
dramatically changed the nature of telecommunications in the country.
The Pakistani telecom sector has attracted more than $9 billion in foreign investments.
During 2007-08, the Pakistani Communication sector alone received $ 1.62 billion in
Foreign Direct Investment (FDI) about 30% of the countrys total foreign direct
investment.
By March 2009, Pakistan had 91 million mobile In addition to 3.1 million fixed lines,
while as many as 2.4 million are using Wireless Local Loop connections
Pakistan is ranked 4th in terms of broadband Internet growth in the world, as the
subscriber base of broadband Internet has been increasing rapidly with the total base
crossing 170,000 in the country. The rankings are released by Point Topic Global
broadband analysis, a global research centre.
Pakistan according to PC World was amongst those top five countries with the highest
SMS traffic processed with 763 million SMS during 2008-09. In terms of year-on-year

growth, Pakistan traffic volume grew by 253 percent compared to last year during the
same period.
The contribution of telecom sector to the national exchequer increased to Rs 110 billion
in the year 2007-08 on account of general sales tax, activation charges and other steps as
compared to Rs 100 billion in the year 2006-07.
According to Government Board of Investment, Cellular Phone Subscribers in 2008-09
are 91,400,000.
The Telecom sector all around the world and especially in Pakistan has experienced a
tremendous growth in the last few years.
The telecommunication sector of Pakistan was awarded the status of industry in 2005 and
since then it has been one of the fastest growing sectors of Pakistan.
The mobile density reaching 52.87 in April, 2008 and the number of mobile subscribers
reaching 85 million. (Source: Pakistan Telecommunication Authority, Annual report
2007-2008).

Political Analysis
The political factors of the telecom industry are the ways that the government intervenes on the
industry. Government laws put restrictions on the tariffs and phones that the telecommunications
industry produces and all new technology must adhere to a strict set of government rules. Goods
and services provided by the telecom industry also need to fit the safety and privacy government
regulations.
In Pakistan Telecom sector is playing a very important role in whole country and vastly
spreading day after day. So it is also affects by government rules and regulation like other
sectors.
The political arena has a huge influence upon the regulation of businesses, and the spending
power of consumers and other businesses. Some political factors are:
Un Stable political environment in Pakistan.
Government policy influence laws that regulate or tax on telecom.
Anti-trust regulations
Price regulations
Rapid change in regulations
Changing Government's policies on telecom sector.
Essential Requirement Case
1. A license issued by telecommunications regulation authority is required to commence
business in that area; the number of players is thus restricted.
2. Need to adhere to numerous health & safety regulations in order to comply with expected
standards.

3. Mobile telecom service providers do not have 100% freedom in pricing issues.
4. Due to the sensitive nature of the operations within the industry, governments would
generally not allow 100% share holding by foreign investors in the local mobile
telecommunications industry.

Government is also supporting telecom industry by providing environment that is


investor friendly for telecommunication sector.
Government is also supporting telecom industry.

Economic Analysis
Economic growth, inflation and interest rates can all have an impact on the telecommunications
industry. Rival telecom businesses need to stay competitive but most have had to raise prices
during the global recession. Different companies will try to beat others by offering limited time
offers on some of the latest mobile phone handsets.
Telecom sector has been played an important role in our economy during the previous 5 to 6
years and help to increase efficiency in telecom sector.

In fiscal year 2008-09 saturation in the market and global financial crisis the total
investment decrease 47% in telecom sector of Pakistan which is a huge deficit in telecom
sector of Pakistan.
Despite the global crisis the telecom sector continuous to grow positively in term of
subscription and revenue.
Operators speedily rolled out their infrastructure reaching out to meet of the population.
But still huge are remain where investment opportunities exist.
Marketers should consider long term and short term state of a trading market.
Inflation is controlling by state bank and under strict eyes but unemployment rate is going
up and up with the increase of level of poverty.
Economic instability is worsening day by day as liquidity crunch is prevailing in the
world.

Investment in telecom sector

In 2008-09 operators total US $1.6 billion worth of investment has been made by all
operators in Pakistan.
Pakistan provide profitable environment for investment for foreign investors to invest in
telecom sector of Pakistan.
Due to profitable environment, telecom sector attract US $815 million in 2008-09 which
was a big investment during this financial crisis period.

Revenue and growth rate from telecom sector

In last 6 months of 2009, telecom sector received over US $143 million. This was 18% of
total Foreign Direct investment in Pakistan.
Telecom revenue showed 19.8% growth during 2008-09 but in 2007-08 it showed 18.2%.
Cellular mobile sector continued to be the leader in telecom revenue, whose share came
out to be 64% in total revenue of telecom sector of Pakistan
Cellular mobile growth rate is 17% in 2008-09.
Government of Pakistan reduce GST/FED rate from 21% to 19.5%.
Telecom sector contribute to National exchequer112 billion in 2008-09 but in 2007-08 it
was 111 billion.

Social Analysis
Some of the biggest social factors that have affected the telecom industry are those considered
with career attitude and safety.

The career expectation is increasing as the increase in on-the-go business careers has led
to an increase in desire for mobile phones that will alert for messages, phone calls and
emails. They also need to have the facility to carry out conference calls, instant
messaging and a host of other career focused features.
Growth rate of population of Pakistan is increasing at an alarming rate increasing the
usage of cell phones.
Safety regarding mobile phones also needs to be taken into consideration by the industry.
Phones with hands-free features for cars are a must in the current environment.
As Pakistan is an Islamic country and people are very strict in case of Islam anything
against the philosophy of Islam on either print or electronic media are treated as against
Pakistan.
Most of the people dislike anything extra-ordinary or something which sabotage their
culture or subculture.
Companies who are targeting upper-end of market mostly published and aired their
advertisement in English language.
In metropolitan cities women are doing work along with their other responsibilities but
other than metropolitan cities it is difficult for women to convince their parents and
spouses for work.

Technological Analysis
The rate of technological change is important within the telecommunication industry.
Revolutionary technological changes and discoveries are having a dramatic impact on telecom
industries.
New Products

New models of phones and communication devices are being produced at an alarmingly
fast rate.
The companies involves in the communications industry in respect to Pakistan are in a
constant race to be the first to have the newest phones with the latest technology.

Investment

Companies have technology with which they can compete in Pakistan and now
companies are investing in their infrastructure to not only expand but also to upgrade
their existing structure.

Focus on Technological Efforts

Mobile telecommunication technology has made several different products like,


Walkman, Paging, Use of postal mail, Alarm clocks, Mobile / SMS banking.
Advanced features and services such as cameras, MP3 players, multimedia messaging,
email and mobile have been added.
The industry by using technology creates several risk related situations especially with
regards to network security & system operations.

Productivity Improvements through Automation

Currently all companies except Zong & insta phone are providing Multi-media
Messaging Services (MMS), General Packet Radio Service (GPRS), Virtual Private
Network (VPN), Pocket Stocks, and Conference Calling, Wallpapers Animated pictures
Polyphonic ring tones (WAP), and Voice Mail at low price and some are also providing
feature that one can see TV channels on their cell.
Now days, due to the sophisticated nature of technologies that exist within the
telecommunication industry, it has allowed & facilitated new ways of working for
individuals as well as creating new business opportunities.
Mobilink shifted its whole network from 900 MHz to 1800 MHz offer value added
services like General Packet Radio Service (GPRS), Multimedia Messaging services
(MMS) and Virtual Private Network (VPN) etc.

Segmentation
Segment 1

Segment 2

Segment 3

Segment 4

Segmen
t5

Segment 6

Segment 7

Segment 8

Segment 9

Segment evaluation (1-5)

Target audience (1-5)

7ps
Product
Zong is offering eight (8) 3G, 4G Monthly Packages, each packages details are explained below:
1. Zong Monthly Mini 3G, 4G Package
2. Zong Monthly Basic 3G, 4G Package
3. Zong Monthly Premium 1-3G, 4G Package
4. Zong Monthly Premium 2-GB 3G, 4G Package
5. Zong Monthly Premium 4-GB 3G, 4G Package
6. Zong Monthly Premium Plus 10-GB 3G, 4G Package
7. Zong Monthly Premium Plus 20-GB 3G, 4G Package
8. Zong Monthly Premium Plus 30-GB 3G, 4G Package
They are providing weekly package also
Quality
They claim to be a fastest network with speed that one else could be given right now
Image
They are new brand launch in June 2015 they are building a good image amoung people
Features
Providing different MBS and GBS packages with a affordable price,
Zong 4G lte wingle also introduce, wifi usb drive
Customer service
111-222-111, Zong user 310
Availability
It is a new feature available in 7 main cities in Pakistan

Price
Zong Weekly 4G LTE Packages:
Charges: Rs. 70
Data: 700 MBs
Validity: 7 Days
Benefits

Pakistan cheapest price rates.

Customer based pricing strategies.

Monthly price plans are available.

Rewards on the usage.

Monthly package

2 GB

Rs.350

30 days

4 GB

Rs.650

30 days

10 GB

Rs.1500

30 days

20 GB

Rs.2500

30 days

30 GB

Rs.3500

30 days

Place
Zong is launch the high-speed LTE services in 7 cities, namely Islamabad, Rawalpindi, Lahore,
Karachi, Faisalabad, Peshawar and Quetta Zong franchisees, and the coverage of both Super 3G
and 4G LTE from Zong will be expanded gradually in the months to follow. The initial launch
targets the 7 major cities, where we have the vast network coverage which ensures the
availability of the fastest data speeds,

Promotion
Public relations:

The audience got in the mood to let loose and enjoy the celebration as Sonu Dangerous
took the stage with his enthralling dance performance,

Fashion show casing Pakistani

The Zong 4Glte launch was a perfect display of classic silhouettes in a technologically
savvy environment which continued with a sit-in dinner, followed by a live performance
by musics most notable band,

RDB who flew all the way from UK for the launch and surely got the audience on its
feet. The credit for a phenomenal show goes to Frieha Altaf and her team at Catwalk
Event Management & Productions.

Advertising

Media advertisement is an important part in any kind of customer oriented activity, there
media activates create a major role in creating awareness among people

Sale promotion

Zongs free call on one number package, they introduced it a month earlier than they
started advertising it. Meanwhile, it remained in what you can say beta version.

There is another example, when Mobilink offered Rs. 1 per min call, which was
responded next day by Telenor with a similar offer. Ufone in a week or so came up with
U won, while Zong took 2 months to start Rs. 1 per min call. It shows how calmly they
observe market trends before launching

Process

You will have to get a 4G SIM to enjoy 4G service. You can get 4G SIM from:

CSCs, Franchises

Order it online and get it delivered at home.www.zong.com.pk/4g/sim

Service blue print

Website
Parking

Guard

TV ads

Bill boards
Waiting

Franchise
Reception

Seller (

Seller (