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Telenor’s Corporate DNA
Users:
• Telenor is truly customer centric. They believe in
understanding their customer’s needs which have
changed and are changing constantly therefore
continuously driving them to innovate in terms of
products and services. The users of Telenor comprise
Prepaid customers; youth/ Students, Women, Financially
Constraint and Postpaid customers; Corporate/ SME
Business they are in:
The overall teledensity in the country has reached 23.1 percent at the end
of April 2006, as compared to mere 2.3 percent in 1999-2000
Similarly, foreign investment in the telecom sector has crossed
US $ 1 billion during first three quarters of 2005-06
When compared to Other South Asian countries Pakistan’s
telecom sector is on the second position in terms of growth.
•Telecom comes under the services sector and its share in the
services sector has increased from 3.1% in 2000-01 to 3.8% in
2005-06
•In the overall GDP, the share of the Telecom has reached 2%
in 2005-06, having increased from 1.6% in 2001-02
Foreign Direct Investment in the Telecom sector
During 2005-06, telecom sector received over US $ 1.9 billion FDI and emerged as
the only sector of the economy to attract such a huge investment
Privatization proceeds of PTCL (US $ 1,184 million) and network expansion of other
telecom companies led to these large FDI flows in telecom
Telenor, and Warid were the major companies to make FDI in the telecom
infrastructure.
Market Structure of the
Telecommunication Sector:
Wireless
local loop
Fixed line
4%
17%
Mobile
79%
Distribution Structure of the Cellular Sector:
Prepaid
Youth/ students, Post Paid
End Corporate/
Women, Financially
Users constraint SME
Third
Distribution Direct Franchsie,Sales and Party
Channel Sales Service Centers Chains
Retail Network
Company
Influential Factors
Regulatory Stability:
• Telecom Act 1996, laid the foundations for de-regulation
• Activation tax for new cellular connections was reduced by 50% to Rs 500 in
June 2005 compared to Rs 2000 in the year 2002
• Mobile sector alone contributed 65% of the total tax contribution by telecom
sector
Mobile handset theft: the government has implemented
central equipment identification register based on
international equipment identity system (imei).
The stable increase in prepaid customer base is due to the fact that
operators now focusing on:
retaining customers,
improving the quality of service,
enhanced customer service,
packages that concentrate on brand loyalty.
For example: They are offering family and friend packages in the range
of Rs 0.5 to Rs 2 per minute, fractional minute billing, international
roaming, gprs, prepaid roaming, low cost, sms etc.
Price erosion in the mobile sector e.g. Reduction in inter
connect charges and reduction in activation tax to rupees
500 per connection led to high market penetration. In
2002 it stood at Rs. 2000.
Cellular
Fixed Line
WLL
Prepaid
Postpaid
Distribution structure:
Distribution by Franchises and service centers
(combined)
• Rolling Customers
• Privatizations & deregulations- increased
competitions.
• Grey Traffic
• MNP mobile number portability
• Wireless technology at boom
• Public pay phones & calling cards usage where
network is not available
• Propagandas attacking brand image
Value chain for prepaid
SIM DECODING
DATABASE ENTRY
PRINTING
MARKETING REGIONAL
DEPARTMENT SALE
MANAGER
DISTRIBUTORS
RETAILERS
After Sales
CUSTOMERS
Value chain for Postpaid
Authorized
dealers
(Security
Code)
T
Calls E
L
Bills E Customer Service Center Online Payment Payment thru SMS
N (Customer payment)
O
Siemens R
Finance &
Accounts
Department
Key process Indicators
KPIS Industry Where are we Improvement Improvement
Benchmark Plan 1 Plan 2
Site sharing
Cost optimization features in the network, e.g. half rate
Spectrum efficiency (Spectrum efficiency is the optimized use of spectrum or
bandwidth so that the maximum amount of data can be transmitted with the
fewest transmission errors. In a cellular telephone network, spectrum efficiency
equates to the maximum number of users per cell that can be provided while
maintaining an acceptable quality of service (QoS).)
Ensuring sufficient quality based on market dynamics (different customer
segments / demands)
Exploring low cost rollout solutions for rural areas
Partnering with various organizations to utilize their space and reduce CAPEX
(CAPITAL EXPENDITURE)
Vision/Mission and Objectives
Vision Statement:
Our Corporate DNA
At Telenor Pakistan, our lives are made up of our Corporate DNA i.e. our Vision
and Values. We believe that competencies influences a person what he or she
is.
Our vision is simple: we exist to help our customers get the full benefit of
communications services in their daily lives.
Telenor has three core values which are at the heart of and govern the
conduct of their employees, both internal and external. These are
Dynamic
Being dynamic means having insight and active involvement, coupled with a
capacity for implementation.
Innovative
Being innovative means continuously being on the lookout for new
opportunities for development and growth.
Responsible
Being responsible means raising realistic expectations, deliver as promised
and stay committed to the society which our group is part of.
CORE COMPETENCIES
Coverage
In just one year of operations in Pakistan, Telenor has expanded its
coverage to over 250 cities in Pakistan. This has been possible due to
heavy investment in infrastructure development and forgoing short term
profits.
Product Quality
Through the superior network design Telenor is able to provide its
customers with the highest quality cellular service in terms of reception,
coverage and value added services.
Distribution Network
Telenor has a competitive advantage over its competitors in terms of its
distribution network. The company has a very high level of retail
penetration, aimed at maximizing profits.
Business objectives
ARPU $4 $6- $8
EBITA 5% – 6% 10%
To be the leading customer oriented company providing top quality mobile
services
Profitable and sustainable growth
Competitive edge on value added services
Strong Brand Awareness
Key Issues:
Issue 1:
Maintain network quality
Issue 2:
Low market penetration
Issue 3:
Rolling Customers
Issue 4:
Untapped market segments- Women
Issue 5:
Mobile number portability
Strategic Direction
• Building an organization with competency, capabilities and resource strengths
• Learn @ Telenor
• Developing budgets to steer ample resources into critical value chain activities
REPOSITIONING
MANAGEMENT