RECONSTRUCTRING IN MOBILINK

Sadia the human resource manager of Mobilink is sitting in front of window

and taking the third cup of tea, she is worried over the decreasing motivation
due to downsizing since from 2010 of the employees. The employees are not
as committed as they used to be. The company has affected their morals
and has created the job insecurity for the workers. The turnout ratio of the
employees has also increased after the layoff process. It has increased up to
26% as compared to 16% since 2010 which is of serious concern for the
manager.
HISTORY OF MOBILINK
Pakistan mobile communications limited Mobilink, a subsidiary of Orascom telecom, started its
operations in 1994, and has become the market leader both in terms of growth as well as having
the largest customers subscribers base in Pakistan a base of over 28 million and growing.
Mobilink pride ourselves on being the first cellular service provider to operate on a100% digital
GSM technology in Pakistan that also provides state-of-the-art communication solutions
to its customers. Mobilink offers exclusively designed tariff plans that cater to
the communication needs of a diverse group of people, from individuals to
businessmen to corporate and multinationals. To achieve this objective,
Mobilink offer both postpaid indigo and prepaid Jazz solutions to our
customers. Compared to our competitors, both the postpaid indigo and
prepaid Jazz brands are the largest brands of their kind in the Pakistan
cellular industry. Mobilink rebranded itself in 2004 with a new logo and slogan, Reshaping
communication, while JAZZ also rebranded itself with a new logo and tag line of Aur Sunao.
Additionally, Mobilink Star was also re-launched as Mobilink Indigo. In the same year,
Mobilink World a collection of the most cutting edge value added services was launched and
Mobilink reached the 5 million subscribers mark. Mobilink offers Pakistans largest
distribution and contact centre networks and an unparalleled 6,500

kilometers of fiber optic backbone. At the same time, Mobilink places high
importance to its coverage which they cover 10,000+ cities and towns
nationwide as well as over 120 countries on international roaming service.

STATUS OF TELECOM SECTOR

In 2003-04, More than 50 % of market share is owned by Mobilink which is
now decreasing after deregulation and Ufone was to follow with a 16%
market share. 2004, when license was awarded to Telenor and Warid, the
market dynamics changed in 2005 with both the operators starting their
operations. The market share of the existing operators started shrinking. In
2007, when China Mobile took over Paktel, which is now known as Zong, the
competition in the market got tougher as it was expected that Zong with its
strong backing of the worlds largest mobile operator China Mobile will give a
tough time to the competitors in Pakistan. In terms of total subscribers during 200708 and 2008-09. Mobilink lost its share by 5.51% this year whereas the rest of the operators
increase in their market share. Telenor has the second highest share in the market (22.2%) in
terms of subscribers followed by Ufone (21%) and Warid Analyzing the market share of each
operator by revenue, Mobilink remained the leader, again followed by Telenor and Ufone.
During the reported year, all the companies lost their share in total revenue of the industry except
Ufone and Zong. In 2009-2010 the Mobilink has a maximum share of 32%
followed by Telenor and Ufone with 24% and 19.7% respectively. Comparing
this year's market share with 2008-09 it is obvious that the share of Warid
and Ufone have dropped by 1.9% points and 1.3% points. This drop in the
share of Ufone and Warid has been taken over by Mobilink and Telenor
whereas Zong maintains it share at 7%.Mobilink maintained its position as the leader
in subscriber market with 30.7% share in 2011though its share declined by 1.8 percentage points
compared to previous year when it was 32.5%.Market share of Telenor increased slightly to
24.5% at the end of June, 2011. The highest growth in market share for 2011 was shown by

CMPak which managed to increase its share from 6.8% last year to 10% during 2011. Market
shares of Ufone and Warid dropped again this year which were 18.9% and 16%, respectively. In
2012 Mobilink has decline to 29.9% at the end of 2012.CMPak achieve a market share of 14.4 %
through its aggressive marketing in less than in start its operations in Pakistan. Warid is
continuously decreasing its market share since 2009; currently it has the lower market share
11.2%.Ufone increase its market share by .10 % and its share is 19.9%.telenor also slightly
increase its share from 24.5% to 24.9%. In 2013 Mobilink has now declined to 28.9% at the end
of June 2013, whereas, Telenor was viewed as second largest player in cellular segment with
market share of 26.1% followed by Ufone with market share of 18.6% and CMPak, with market
share of 16.4%. Warid gradually has been losing considerable number of subscribers since 200809 and is currently lagging behind with lowest market share of 9.9% among all the cellular
mobile operators see exhibit (1).
Marketing strategy:
Mobilink is currently working on market oriented strategy. There are two main functions which
Mobilink is currently enormously focusing.
1. Cost management.
2. Quality of services.
Mobilink has been successfully built a superior relationship with their customers including
consumers and corporate. Mobilink is focusing on quality products not the variety of
product under a brand Mobilink is completely focusing on the need and wants of their
consumers and providing them all their needs according to their desires. Especially Mobilink has
a largest customer care centre than other service providers. Mobilink has 3 mainly customer
service center. Mobilink has largest call centers in Pakistan.
Promotion strategy:
Where the all networks get jammed, the only Mobilink connects you.Mobilink is using different
promotional mix like;

Advertisement

Personal selling

Sales Promotion

Direct Marketing

In personal selling Mobilink is selling Mobilink indigo, Mobilink PCO, and Blackberry.
Although the personal selling is two way communications so the Mobilink is communicating the
features and the value added services of the Mobilink. These products
Reshaping Lives Reshaping Lives actually need information by the customers so the Mobilink is
using this personal selling campaign for its products
THE SWAP AND MODERNIZATION CONTRACT
Mobilink sign agreements the most advanced commercial with vendors like Huawei
and Ericsson. The scope of these agreements includes installation of 3G
compliant network. Mobilink planned to deploy the most advanced commercial WiMAX
16e network to meet the country`s increasing broadband needs. The network will cover central
business districts and hot spots in the country`s six major cities, including Islamabad, Karachi,
Sialkot, Faisalabad, Lahore and Rawalpindi. Under the terms of the contract, Huawei will
provide Mobilink with a complete WiMAX network including base stations, an access service
network-gateway and a network management system. WiMAX (Worldwide Interoperability for
Microwave Access) is a telecommunications technology that enhances wireless data capabilities.
The service will allow Mobilink to provide its subscribers with high-speed Internet access and
services. It can also integrate Mobilink`s existing 2G networks with high-bandwidth capacity
networks in the shortest possible time, the vendors were also be responsible to
ensure maintaining network KPIs, power commitment, fuelling services, level
1 & Level 2 maintenance and managed services. Mobilink, as part of group
strategy will outsource major technical activities. Including the design,
purchase, deployment, and maintenance of next-generation mobile network
equipment and supporting services, for the next 5 years.

EMPLOYEES REACTION

A telephonic survey was conducted regarding employees reaction:

Madiha lodhi (specialist) was working in Mobilink for 7 years and twice
awarded as best employee of the year in my career and once best team
award by the Zohair Khaliq. Promoted last year and this time around got
more than 95 score in appraisal, terminated without any notice or ground
preparation. Mobilinks appraisal system is rogue, vague and fake process.
No feedback is given by the supervisors for improvement or warning for
improvement until next appraisal. Companies are destined to fail when they
do like this to their employees. Russians have not done well in Pakistan and
outside their own country so how they can do well with Mobilink which was
one of the profitable multinational businesses in the country with biggest
human resource number. But those companies who dont value their
employee dont get value in itself in the end.
Usman Tahir had been working with Mobilink for more than 5 years and had
always been devoted to my work. The work environment no doubt was good
for working and I was going along well with my work. However the
downsizing by Mobilink is really disappointing and unethical to be very
honest. I have been laid off without any proper reason or without any fault on
my side. To say that the company does not require me and my skills anymore
is totally ridiculous. People had been here for more than 10 years working
day and night and they do not deserve this behavior by any means. Exhibit
(2)
Afaq Ahmed (still working) The recent downsizing by the company in which
they laid off many of their permanent employees is really a threatening
policy by the company for the employees like me. Though I am still working
with the company but I feel no security of my job anymore. I never know the
coming day might turn out to be my termination day in the company. This is

really de- motivating for the employees working and the company must
provide assurance and security to their employees.
In the first phase the companies laid off 150 employees from whom 120 were
the contractual employees and remaining 30 were the permanent. So at that
level motivation and commitment among remaining employees was not
badly affected because the major portion of lay off was from the contractual
employees. In second Phase Company laid off 90 employees in whom 8 were
contractual based employees and remaining 82 were the permanent
employees. Due to this phase the motivation level of employees was badly
affected. They felt that there is no security of job in Mobilink. Some of the
employees said that due to these kinds of lay off there is more chance to
increase the unemployment level in the country. Company should manage
the resources by making the contract of exchange resources.

RESIGNATION PROCESS
Mobilink is freeing up its resources mainly from technical department by
laying off over 100 employees in a single go. Administration is reasoning the
lay-offs due to a restricting process of its technology division. As a result, the
company said, certain operational areas had become redundant, whereas
new functions have also emerged. Therefore, headcount is being reduced in
areas that are redundant, whereas hiring of different skill set is underway.
The company asked the employees to give resignations rather than
terminating them. The reason they put up for resignation was that the
company does not require their skills anymore. The employee who will give
resignation will be provided benefits see exhibit (3) otherwise they would
have to face the company in the court. Exhibits (4)
PROBLEMS FACED BY MOBILINK

Mobilink is a multinational company having thousands of employees from

different areas and having entirely different culture it faces a problem in its
day to day business activities. Here are some connectivity issues; the
temporary connectivity issue faced by Mobilink users was caused by
software problem that occurs because of up gradation of systems in Lahore.
Mobilink service was also affected after an exchange in Islamabad caught fire
resulting in down time of services for almost a day. These problems caused
serious effects on their customers. Mobilink in Lahore is a land office in
Pakistan which deals to the whole Pakistan. There are millions of messages
which come from customers and they have not enough time to read and
reply, thus it may a major barrier of communication between customers and
company. There is another problem regarding advertisement and marketing which are the
traditional and religious standards of Pakistan. Pakistan culture does not allow the marketers to
make very bold commercial and signboards for their company because it is considered as very
disgusting. Another problem which is faced by Mobilink in order to their advertising is the heavy
rates of taxes in Pakistan. Due to these heavy taxes company can't assign much capital in the
field of advertising and marketing. All divisions of Mobilink specially northern and central
divisions suffer damages of infrastructure due to flood in 2010. Mobilink infrastructure was hit
with damages to over 400 sites out of a total of 8,070 sites. Quality of service is very important
as far as mobile service providers, unfortunately there are complaints mobile users against the
big market players especially. PTA is the only regulatory authority in the telecommunication
industry, in the past PTA conducted a consumer survey to check the quality of service of mobile
service providers. Mobilink has been fined for poor quality of service as compare to other market
players. In this current situation Mobilink is now facing problems first of all in the customer
satisfaction area because as Mobilink sold over capacity connections in the market and secondly
with the entry of new market players that are Telenor and Warid a price war is going on and how
target the new potential customers as well as satisfying existing one to retain its market position.
CATEGORIES OF DAMAGE:

Erosion of boundary walls and tower bases.

Equipment damage due to water accumulation inside the site.(BSS, Trx, Power etc)
Feeder cables damage due to settlement of cable bridge foundation support.
Fiber cable Cuts on backbone and local fibers cables.
Microwave Backhaul disruption
Short circuits and power system damage including Generator damage
In rare cases tower foundation settlement issues have occurred.

Exhibit (1)

Market share 2007-08

telenor; 21%
mobilink ; 36%
warid; 18%
CM PAK; 5%

ufone; 21%

Market share 2008-09

telenor; 22%
mobilink ; 31%
warid; 19%
CM PAK; 7%

ufone; 21%

Market share 2009-2010

CMPak; 6%
Warid; 15% Mobilink; 29%

Ufone; 18%
telenor; 31%

Market Share 2010-11

Telenor; 24%

Mobilink; 31%

Warid; 16%
CM pak; 10%

Ufone; 19%

Market Share 2011-12

Telenor; 25%Mobilink; 30%

Warid; 11%

Ufone; 20%

CM Pak; 14%

Market share 2012-2013

CMPak; 16%
Mobilink; 29%
Warid; 10%
Ufone; 19%
telenor; 26%

Exhibit (2)
Mansoor Ali Shah
Past

Operation Supervisor at Mobilink

Education

Preston University

Karachi University

South City Institute of Management & Technology

Mansoor Ali Shah, Manager at Mobilink GSM's

Over 10 years experience of Customer Care (Contact Center & Operations)

Overall 12 years of job experience in service industry
Customer-focused and performance driven
More than 4.5 years of experience as a call center Floor Manager position
6 Month experience as IRU (Investigation & Resolution Unit) Manager (Backend

Support
Department)
Over 4 years of experience as a call center Operations Supervisor
1 year experience as a call center Administrator
Excellent Analytical and Reporting skills
Ability to examine problems effectively and suggest solutions

Good Interpersonal skills

Effective communication skills, both oral and written in Urdu and English
Good team building and time management skills
Computer literate (Proficient in MS office and Windows work environment)

Kashif Ali
Operation Manager in Mobilink
Specialties: Good Analyst, People Manager, Good in Excel and PowerPoint Presentations
Education

Becon house school system

Behria University
Lead a team comprised of more than 200 employees
Lumps University
Overall 8 years of job experience.
Lead a team comprised of more than 200 employees
Over 6 years of experience as a call center Operations Supervisor
1 year experience as a call center Administrator
Excellent Analytical and Reporting skills
Ability to examine problems effectively and suggest solutions
Good Interpersonal skills
Effective communication skills, both oral and written in Urdu and

English
Good team building and time management skills
Self-Motivated

Exhibit (3)
Salary of 6 months

Mobile connection
Provident funds
Medical resistance along with parents
1300 cc cars for senior managers

TEACHING NOTES

RESTURCHING IN MOBILINK
Synopsis:
Rashid khan the president and CEO of the company sign a contract with Ericsson and Huawei
the agreements includes installation of 3G compliant network. The network will cover central
business districts and hot spots in the country`s six major cities, including Islamabad, Karachi,
Sialkot, Faisalabad, Lahore and Rawalpindi. The service will allow providing subscribers with
high-speed Internet access and services. the vendors were also be responsible to ensure
maintaining network KPIs, power commitment, fuelling services, level 1 & Level 2 maintenance
and managed services for the next 5 years. Mr. Rashid khan makes a contract due to rapidly
decreasing its market share. Company is outsourcing its major resources so the vender higher
their own technical engineers so Mobilink downsize its technical staff because they dont need
their skills anymore. Some of the employees quite the company due to the downsizing trend of
the company. Some of the employees feel that they have no security of their jobs. They
never know the coming day might turn out to be their termination day in the
company. They will not go to court because in their contract paper one
clause is mention that company can terminate any employee at any time.

Suggested Asked Questions

Q1: The collaboration of Mobilink with Ericson and Huawei help to increase the market
share?
Q2: Should employees join such jobs where their jobs will at employer choice?
Q3: `How show Mobilink motivates its existing employees to words a better job
performance?

REFERENCES:
http://en.wikipedia.org/wiki/Mobilink,

http://www.mobilinkgsm.com/about-us/
http://www.pta.gov.pk/index.php?option=com_content&view=article&id=361&Itemid=590
http://business-finance.blurtit.com/111157/what-are-the-marketing-problems-faced-by-mobilinkwithin-pakistan
http://tribune.com.pk/story/129126/mobilink-experiences-network-problems/