CHAPTER NO. 1

OVERVIEW OF THE ORGANIZATION

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Slogan:

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1.1 History of Cellular

he need to increase the public safety was key to the genesis of today’s rapidly

growing wireless communication industry. In1920s’ police departments in

Detroit, Michigan and Bayonne. New Jersey and the Connecticut State Police

were among the first who sought to use in their patrol cars, the technology

that had improved the safety of oceangoing vessels – radiotelephone service.

The United States involvement in World War 2 created an urgent need for FM

technology to take the place of Amplitude Modulated (AM) technology for

higher quality, two-way mobile radio communications on the battlefield. The

strategic value of wireless communication on the mobile and portable

communication on the battlefield spurred companies like AT&T, Motorola and

General Electric to focus on refining prominently among the products

developed during the war years and carried over into peacetime use.

Although there was a form of mobile telephone service available in the late

1940s, its capacity was limited – with few radio channels available to carry

calls, and cities like New York limited to 12 simultaneous callers.

In 1947, AT&T engineers decided to stretch the limited number of radio

frequencies available for mobile service by scattering multiple low-power

transmitters throughout a metropolitan area, and “handing off” calls from

transmitter to transmitter as customers moved around in their vehicles. This

was the birth of wireless technology.

But there was ahead of its time. It took 20 years to develop sophisticated call

“hand off” technology. In 1973, Motorola introduced its revolutionary new

Dyna TAC mobile phone, a conveniently sized radiotelephone set. At the

same time, European countries also started using cellular phones with

different systems.

Today, wireless competition has accelerated to the point that more than 3

billion people can now choose between 339 service providers around the

globe.

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About Orascom Telecom

Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was

established in 1998 and has grown to become a major player in the

telecommunication market.

OTH is considered among the largest and most diversified network operators

in the Middle East, Africa, and South Asia, and has acquired in early 2008 a

license to operate mobile services in North Korea. Orascom Telecom is a

leading mobile telecommunications company operating in six emerging

markets having a population under license of 430 million with an average

penetration of mobile telephony across all markets of approximately 40%.

OTH operates GSM networks in Algeria (Djezzy), Pakistan (Mobilink), Egypt

(Mobinil), Tunisia (Tunisiana), Bangladesh (Banglalink) and Zimbabwe

(Telecel Zimbabwe). OTH had exceeded 74 million subscribers as of March

2008.

In Pakistan, the Pakistan Mobile communications Ltd (“Mobilink”) started its

operations in 1994 and, until early 2001, had a market share of 40%. In April

2001, OTH took over management control of the company. As the market

leader, Mobilink serves more than 31.6 million subscribers, representing a

market share of 38.5% (as of March 2008).

OTH has positioned itself as a leader in the region for its diverse GSM

operations with various GSM support and Internet operations. One of OTH's

main strategies is to create its own non- GSM subsidiaries to act as a

backbone of support for its regional GSM operations. OTH has achieved this

by dedicating financial, technical and management resources for supporting

its subsidiaries. This includes network support and installation of GSM

operations, equipment procurement, handset procurement and distribution

companies, Value Added Services, and Internet operations. OTH is dedicated

to providing the best quality services to its customers, value to shareholders

and a dynamic working environment for its more than 15,000 employees.

OTH established a strong presence in the GSM Association (the world's

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leading wireless industry representative body) only five years after its

inception. OTH's Chairman and CEO, Mr. Naguib Sawiris, was selected to join

the GSM Association's CEO Board in 2002. OTH's stocks are traded on the

Cairo and Alexandria Stock Exchange (CASE), (under the symbol ORTE.CA,

ORAT EY) and on the London Stock Exchange (where its GDR is traded

under the symbol ORTEq.L, OTLD LI).

OTH is dedicated to provide the best quality services to its customers, value

to shareholders, and a dynamic working environment for its more than 15,000

employees.

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1.2 INTRODUCTION

Industrial development of a country is not possible without having a modern

telecom infrastructure in place. Countries that have weaker telecom,

infrastructure, using the latest technology can today quickly step in to the

future. Recent industry figures confirm that cellular has become a primary tool

not just for business everywhere, but also that it has become a mass-market

service. There were over 200 million cellular phones in use worldwide by the

end of 2000. Cellular service is soaring in Asia. By the end of 2005 there were

more cellular phones in Asia than in Europe. Key thing is that wireless is easy

to deploy and it is much more versatile and reliable for Pakistani business to

compete in the world markets on equal footing, it is important to provide it with

excellent coverage and dependable communication system.

The number of fixed-line services in Pakistan has increased five fold since

1990. However, whilst the majority of working lines are in urban areas, 70% of

Pakistan's population lives in rural areas. Efforts by the government of

Pakistan to promote the development, modernization and diversification of its

telephone infrastructure over the last decade have met with mixed success.

Nevertheless, recent strong growth in the mobile market has created a much

more positive general outlook in the industry. Mobile subscriber numbers have

surged from less than 2 million at end-2002, to around 11 million by mid-2005

and the growth has the feel of sustained development. Significantly, two new

mobile operators were licensed in 2004, joining the existing four operators, to

create a very busy market.

There is still plenty of room for further expansion.

Since the 1980s, considerable effort was made to upgrade Pakistan’s

telecommunications system. The nation’s Sixth Five-Year Plan called for a

public-sector investment of Rs10.1 billion to improve and expand the

telephone and telex systems.

1.2.1 MOBILINK IN PAKISTAN

Pakistan Mobile Communication Limited (Mobilink) is the first GSM Operator

in Pakistan and since the launch of its services in 1994, has Been at the fore

front of Pakistan’s cellular service industry. With its Cutting edge technologies,

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national infrastructure and superior quality Customer service, Mobilink, a

wholly owned subsidiary of Orascom Telecom, has achieved the status of

“market leader” with a customer Base in excess of 31 million subscribers.

To date, the company has invested over US$2.5 billion in its infrastructure,

Network rollout and the largest franchise, retail and customer services

Network across the Nation. The company plans to invest an additional US

$500 million in 2008, to meet the growing demands of its customers. Mobilink

has also progressed from voice to carrier-class nationwide Services by

completing its own 6,500-kilometer fiber optic backbone Network across

Pakistan. It now plans to provide high-speed data Connectivity in Pakistan

through WiMax services.

Star Symbol Shows the MOBILINK HEAD OFFICE in ISLAMABAD.

During the last few Years, the company has aggressively expanded its

coverage, achieving Cell sites in excess of 6,500, over 200,000 retail outlets

and coverage in More than 8,000 cities, towns and villages. With a systematic

roll-out Plan for the future, Mobilink is determined to maintain its market

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Leadership in all areas to ensure that it continues to reshape lives of

Pakistanis everywhere by “connecting the unconnected”. Additionally, the

positive role of the Government has been a catalyst in The phenomenal

growth of the cellular market in Pakistan. The Phenomenal growth and the

success of the mobile sector in 2006 – 07 Can be seen with the estimated

revenue figures of Rs 133 billion in the Industry growing by a soaring 48%

from 2005 - 06, with Mobilink Contributing nearly fifty percent to it. OT took

over management control of the company in April 2001 and changed the

overall market dynamics through its aggressive marketing strategy and

expertise. In less than two years time Mobilink achieved an exceptional

growth of almost 672% and attained market leadership. Mobilink was the first

mobile service provider in Pakistan to operate a 100% GSM technology as

both existing operators employed AMPS technology.

Mobilink Head Office, F-8 Islamabad

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1.2.2 Mobilink's Vision & Values

Mobilink's Vision

"To be the leading Telecommunication Services Provider in Pakistan by

offering innovative Communication solutions for our Customers while

exceeding Shareholder value & Employee Expectations".

Mobilink's Values

Total Customer Satisfaction

Customers are at the heart of our success. They have placed their trust and

confidence in us. In return, we strive to anticipate their needs and deliver

service, quality and value beyond their expectations.

Business Excellence

We strive for excellence in all that we do. We aspire to the highest standards

and raise the bar for ourselves everyday. This commitment to delivering

world-class quality translates into unmatched service and value for our

customers and all stakeholders.

1.3 Trust & Integrity

At Mobilink, we take pride in practicing the highest ethical standards in an

open and honest environment, and by honoring our commitments. We take

personal responsibility for our actions, and treat everyone fairly, and with trust

and respect.

1.4 Respect for People

Our relationships drive our business. We respect and esteem our employees

and all stakeholders. We believe in teamwork, empowerment and honor.

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1.5 Corporate Social Responsibility

As the market leader, we recognize and fulfill our responsibility towards our

country and the environment we operate in. We contribute to worthy causes

and are dedicated to the development and progress of the society.

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1.6 Goals and Objectives

Expand the business.

Provide better service to people in the field of telecommunication.

Retaining the role of a leading telecommunication company.

Attract maximum customers and satisfy them.

Excel in meeting customer needs.

Seek employee involvement, continuous improvement and enhanced

performance goals.

1.7 Achievements

ISO 9002 Quality Management System Certification for Billing,

Engineering Departments and CS Contact Center

Implementation of a full Intelligent Network (IN) platform from Siemens

for the Prepaid platform

Largest Call Center 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 in over 100 countries around the world with true

international roaming with over 300 operators across the globe

First mobile operator in Pakistan to offer extensive GPRS Roaming and

BlackBerry Roaming services.

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CHAPTER NO. 2

Societal Marketing

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2.0 Societal Marketing

Mobilink believes in playing an active role in supporting the community and

social development of Pakistan. Each year, Mobilink and its staff contribute

significantly to charities and community projects to help bring about a better

quality of life to the less privileged in the community and enrich the lives of

Pakistanis through support in local arts, education and sports.

2.1 Educating the Youth

Mobilink has made various donations to educational institutes. This includes

donating computers to the Federal Board of Intermediate and Secondary

Education, donating Rs. 100,000 to Pakistan Institute of Medical Sciences to

set up a computer lab, and sponsoring the commemorative ceremony for the

golden jubilee of Cadet College, Hasanabdal.

2.2 Supporting the Arts

Mobilink's alliance with the international Kara Film Festival demonstrates its

commitment to the promotion of art and theatre. The festival creates a space

for alternative and independent cinematographers, both experienced and new

filmmakers, to exhibit their creative endeavors in Pakistan.

2.3 Employee Involvement

Mobilink believes in supporting the community not only through sponsorships

but also through employee involvement. In addition to sponsorships, Mobilink

encourages its employees to be engaged in community welfare work and to

support relevant causes.

2.4 Earthquake 2005 and Flood Victims in Sindh

During the devastating earthquake of 2005 that struck the Northern Areas of

Pakistan and Flood Victims in Sindh Mobilink was amongst the first to

respond to the crisis.

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Relief Camps were set up in all major hospitals to provide free calling facilities

to patients and relatives arriving from far flung areas. Goods such as blankets,

shawls, jackets were also collected for those affected by the earthquake and

Mobilink Relief Teams were constituted to provide aid to the Northern Areas.

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CHAPTER NO. 3

Management

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MANAGEMENT

President and CEO

Rashid Khan

Chief Strategy Officer

Tariq Rashid

Vice President Marketing 

Bilal Munir Sheikh

Vice President Customer Care

Irfan Akram

Vice President & Head of Broadband Business

Division. 

Mustafa Peracha

Vice President Corporate Affairs

Agha Qasim

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Chief Technical Officer 

Ramy Reyad Kamel

Vice President Sales

Jahanzeb Taj

Head of Human Resources & Administration

Sadia Ahmad

Chief Financial Officer 

Andis Locmelis

Head of Business Analysis and Planning

Farid Ahmed

3.1 Market Size

Total size of cellular market is approximately 2 million in a country of 144

million people. Hence, the market penetration is only 1.4%; this clearly

demonstrates the potential in the Pakistani market.

Mobilink being the market leader enjoys 53% share of the overall market with

both Star and Jazz dominating the postpaid and prepaid segments

respectively. Star with cumulative subscriber base of 146,707 enjoys over

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60% of the total postpaid market, while Jazz has over 50% share to its credit

in the prepaid domain with 805,467 subscriber base.

3.2 Customer Segmentation

Like most emerging mobile markets, Pakistan is also a prepaid-driven market

and the industry-wide sales mix normally consists of 85% prepaid. Similar

results are seen from purchase intention data from potential mobile

subscribers.

In the year 2002, Mobilink has set new standards and achieved many

landmarks between the postpaid and prepaid brands and offered innovative

Value Added Services. During the year postpaid sales were supported by

handset leasing program that helped maintaining adequate postpaid sales.

Value added services were branded as ‘Power Tools’, and given extensive

media support to enhance usage and corresponding revenues - the resultant

impact has been very positive. New and innovative SMS and IVR based

products were introduced during the year and contributed towards the

revenues. Mobilink now offers International Roaming with 155 operators,

including Thuraya Satellite.

In July 2002, Jazz launched unique Door-to-Door education/sales activity in

Karachi Metropolitan, which is the largest city of Pakistan and business

capital. This activity lasted for two months in which trained representatives

paid visits to the potential buyer at the convenience of their home, covering

approximately 100,000 households in the lower-middle income bracket.

Mobilink plans to introduce limited GPRS during 2003 and will be offering

services like MMS on this platform in order to strengthen its technology

leadership.

3.3 Brand Structure

Mobilink provides umbrella branding to both of its major brands, Star

(postpaid) and Jazz (prepaid). Mobilink has the highest Total Spontaneous

Awareness in the industry of 90%, followed by Jazz with 89% and Star

measures at 16%.

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3.4 Market Indicators

Mobilink reported strong operating profit growth as it continued to realize

benefits from the acquisition and retention of high value customers and the

continuing focus on cost efficiencies. This is reflected in a 74 % increase in

revenues, and a 142 % increase in EBITDA.

Blended ARPU for the twelve months to 31 December 2002 reached US$

16.5 compared to US$ 21 for the twelve months ended 31 December 2001.

Blended churn for the twelve months to 31 December 2002 reached 7.4%

down 11% compared to 2001. This was the result of the ever increasing effort

of Mobilink in increasing its subscriber base, its increased effort in

emphasizing the brand recognition of Mobilink, while at the same time

retaining its older customer base.

3.5 Mobile Operators

Mobilink started its operation in 1994 as a third entrant in the market, while

Paktel and Instaphone were already operating since 1991 and had acquired

substantial market penetration. Despite the re-launch of Ufone, the main

competitor, Mobilink has maintained its momentum of growth. All this has

been possible due to inter-departmental synergy and strengthening of

Mobilink’s brands.

3.6 Network Coverage

Mobilink is the leader with digital coverage stretching across 120 cities of the

country through nearly 355 cell-sites; this wide network that covers 85% of the

urban population is supplemented by extensive International Roaming in 63

countries with 155 operators worldwide to broaden the connectivity horizons.

3.7 Sales Strategy

Mobilink is the first cellular operator to introduce the “franchise” concept in the

cellular industry in Pakistan, and currently operates the largest franchise

network in Pakistan with over 100 franchisee/national distributors (dealers

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operated service centers). In order to extend its reach even further, Mobilink

worked with its franchisees to develop a network of over 300 sub-dealers;

these operate as Points of Sales (POS) only and are branded “Mobilink

Connect”. Each franchisee is adequately equipped to process sales, collect

bills and offer other customer services. All franchisees have trained sales and

service staff, fully capable of tackling sales challenges. Additionally, JAZZ

scratch cards are easily available across urban Pakistan through 8500 retail

outlets.

3.8 Social Responsibility

Mobilink has initiated a continuous social effort towards the growth of social

sector and development of sports in the country. Mobilink sponsored PIMS

(Pakistan Institute of Medical Sciences) Children’s ward and has committed to

carry forward the program in the future as well. In sports development,

Mobilink has been actively supporting SAF (South Asian Federation) Games

with a commitment of encouraging sports and healthy activities among

younger generation of Pakistan.

Such programs will help Mobilink in associating with the consumer and build

long-term emotional relationship as a good corporate citizen of Pakistan.

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CHAPTER NO. 4

HR Functions of Mobilink

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4.0 HR Functions of Mobilink

4.1 Basic role of HR department in Mobilink

Mobilink is the largest telecom company of Pakistan because it has managed

to attract the best professionals in the industry. In addition, these team players

understand their roles and execute their duties in a way that eases the ride for

other team members. To achieve this perspective HR department has to play

the major role and it is the role of HR department to attract, retain, develop

and sustain the top notch work force. This is the first approach regarding the

basic role of HR department in Mobilink. This approach is practiced that give

the results of hiring the best and performing on the edge.

Second approach is that HR department is responsible to maintain internal

equity by having standard in term of competition while interacting with market

forces (economy and political scenario).

HR department plays a vital role in the success of Mobilink as performance of

organization is based on the performance of people. The above mentioned

approaches are the key concepts being practiced in HR department of

Mobilink.

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Human Resource

Staffing & Compensation

Organization Development

HR Operations

Project Management Office

4.2 ORGANIZATIONAL STRUCTURE OF MOBILINK:

Although all the departments in an organization play vital role in achieving the

overall all goals and objectives of that organization yet the major departments

are as follows:

Marketing department

Customer service

It department

Treasury department

Finance department

4.3 ORGANIZATIONAL CHART:

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VP and CFO

Executive Director

Chief OfficerCo-ordination

General

Manager

IT

General

Manager

Marketing

General

Manager

Finance

GeneralManagerAdmin &

PO

Chairman and CEO

4.4 Recruitment

Mobilink has a separate department for staffing. This department is

responsible for taking all the hiring decisions for the company. They practice

different policies regarding recruitment and selection. One of their policies is

that hiring the top notch professionals from industry and based on their

performance, increments are made.

Sources for recruitment:

Employee referrals is the basic source of recruitment. 90% of the employees

are hired through reference. Other methods for recruitment are also used but

major source is reference. Others may include Advertisements, Job fair,

University Graduates and agencies also. But major chunk working in Mobilink

is there due to reference.

For recruitment mobilink use different models. First of all they use

Advertisement Method they give adds on web sites and in news papers

References

Job Fairs

Student Profile Book

they get resumes of all fresh passed out batches

4.5 MONOPOLY OF MOBILINK

Before Mobilink there were two companies already in the market but with

different technology. Prior launching of GSM service in Pakistan, Mobilink

obtain the assurance from Govt of Pakistan that no further GSM licenses will

be granted for the period of ten years in order to get the maximum time to

yield the benefits of penetration, stability, infrastructure and monopoly.

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4.5.1 CELLULAR SUBSCRIBERS IN PAKISTAN

YEAR INSTA MOBILINK PAKTEL TOTAL GROWT

H %

1995-96 20,950 16,385 30,703 68,038 …

1996-97 43,029 52,600 39,398 135,027 98.4

1997-98 53,184 82,912 60000 196,096 45.2

1998-99 108,058 87,556 70000 265,612 35.4

1999-2000 112,000 114,272 80,221 306,493 15.4

Mobilink’s monopoly were from 1994 to 2000, In this period Mobilink’s growth

is increased in 1st five years then decreased because of political instability,

war with India in 1999, and Atomic explosions in 1998. In the period of 1998-

99 the Mobilink’s growth were decrease to record 20%.

4.5.2 TECHNOLOGY DIFFERENCE

Meaning of AMPS – "Advanced Mobile Phone Service", is an analog

technology that uses an 800MHz cellular band. Developed at Bell Labs and

transferred to the regional Bell operating companies at the time of the

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divestiture in 1984, AMPS was put on the market in the 1980’s and is the

worldwide cellular standard. (By: Diane Shired)

The GSM was formed in 1982, to discuss how to make wireless technology

work across geographic borders. Meaning of GSM is "Global System for

Mobile Communications", it a digital cellular phone technology based on a

specified standard for how data is sent over a wireless network. Mobilink is

the first cellular company with GSM technology in Pakistan.

4.5.3 MONOPOLISTIC STRUCTURE

Pakistan' has gone through a monopolistic telecom & IT vendor's age.

Overall, the thrust of market strategies for 2004 was on acquisitions. Three

factors contributed to this:

1. The upfront cost of acquiring a connection went down significantly -

opening up a whole new segment of the market. The cost of acquiring

a cellular connection went down from Rs. 3000 to Rs. 1000

2. Mobilink increased its coverage to several new cities across Pakistan –

once again opening up new regions with pent-up demand. The share of

the top-5 city gross sales in Mobilink sales went down from 67% to

61%1

3. There was a sense of urgency to capitalize on these opportunities as

the operators with newly awarded licenses geared up to start

operations.

4. There was a clear imperative to grab customer base – to sweep the

market – before the new players enter the field. Both Mobilink and

Ufone pursued this strategy with varying degrees of success. For

Mobilink this meant going from 2 Million subscribers at the end of 2003

to a projected 4.5 Million subscribes at the end of 2004.

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Mobilink’s consolidated revenues, however, averaged around $934.6 million,

an increase from $921.5 million in the year-ago quarter. Average revenue per

user (ARPU) declined to $2.8 for the third quarter from $3.5 for the same

period last year. The company spent $406 million for the first nine months of

2008, up from $353 million in the same period of last year. Similarly, the

company’s market share dropped to 34.8%, it was 36.4% last year.

TOTAL REVENUES BY CELLULAR COMPANIES

(Rs. MILLIONS)

Company2006-07 2007-08 2009-10 2010-11

Mobilink34,456 54,065 64,654 79,936

Ufone8,599 16,098 21,867 27,455.2

CM Pak2,400 3,329 2,897 25,85.3

Zong2,693 1,539 472 259.7

Telenor565 6,338 22,837 45,081.2

Warid Telecom168 8,527 20,405 26,804.7

Total48,881 89,896 133,132 182,080.9

4.6 MARKET SHARE

In this fiercely competitive arena, Mobilink set itself the target of reaching 7

Million subscribers and retaining a market share of 54% by the end of 2005.

While the market share target is lower than current share of 61%, the share of

each competitor in the market will remain relatively small – since that there

are more players to go around. Taking Mobilink’s share as a given, there are

two possibilities for the competitive field: Either all four players will manage

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similar levels of acquisitions, or one clear competitor will emerge taking the

lion’s share of competition’s acquisitions.

From our perspective, the former scenario is clearly preferable, since in this

scenario all the competition will neutralize each other to some extent and they

will have to fight on multiple fronts. In this scenario no one will gain a share

large enough to threaten Mobilink’s leadership position. Given that U-fone and

Paktel have a head start with established brands, distribution, and coverage in

more cities, they are likely to acquire more subscribers than Warid and

Telenor. On the other hand these last two will be more aggressive in their

strategies but will be hampered by the fact that their operations will roll-out in

Q2 and their initial coverage will necessarily be limited to major cities. Given

this, and given the current base Ufone already has, we see the end-2005

market position as looking like this:

Shareholders

Motorola International Development Corporation 30%

Ray shields Investments Limited 11%

International Wireless Communications Pakistan Limited

(IWCPL), a consortium between:

 

Orascom Telecom 39%

Asian Infrastructure Fund (AIF) 20%

4.7 PEOPLE RESPONSE TO MOBILINK’S INCENTIVES

“People respond to incentives. The rest is commentary”

Mobilink has launched two products i.e. JAZZ and INDIGO (prepaid and

postpaid). In monopolistic competition mobilink introduce many packages in

the market. Some of the packages are;

Jazz octane

SMS package

Ladies first

Free connections

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Free balances

Low calls Rates nationwide

Low calls rate on international roaming

Urdu Power tools

Mobilink PCO

An amazing prepaid service with two pre-paid packages i.e. Jazz Easy, Jazz

Max. The benefits of pre-paid products are:

No daily charges

Low outgoing rates

180 days validity of Jazz scratch cards

FEATURES OF JAZZ

4.8 ANALYSIS

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Outgoing calls (24 hours) Rs. 3.50

Incoming Calls Free

Sms to any mobilink number (per sms) outgoing Rs.1.00

Sms to any other network (per sms) outgoing Rs.1.50

International Sms (per sms) outgoing Rs. 5.00

Voice mail and CLI Free

Daily charges Free

Demand of mobile phones has been increased during the past four years

rapidly. In 2004-05 the total number subscribers were 12.7 million which

increased to 34.4 millions in 2005-06 and similarly in 2006-07 36.45 million as

compared to 0.3 millions in year 1999-2000. The reason for this increase

advent of new mobile companies in Pakistan which create competition in

Telecom industry.

When we compare the figures of Mobilink year 1999-2000 with 2006-07 we

will find that the mobilink had monopoly due to certain reasons; (provided

other factors remain constant such as expensive mobile sets, lack of

information)

Being a only GSM company having protection from government. It has a high

price rate per minute.

High subscriber’s identification module (SIM) rates (i.e. Rs. 3000 minimum in

2002).

Both caller and receiver had to pay for a call.

Roaming charges.

High taxes imposed by the government.

Similarly high rates of other services i.e. sms, etc.

Above reasons shows that mobilink was not providing services to its efficient

scales as compare with today it mean moblink had created dead weight loss.

After monopoly,

After the expiry of patent Pakistan mobile phone industry

Was open for new entrant and many farms arrived such as Ufone in 2001,

Telenor & Warid in 2004 and CMPAK in 2007 which created competition in

the mobile market and because of this competition prices (for their services)

goes down drastically during past five years , every company started to

provide free roaming services and SIMs rate also declined . Due to this

competition number of subscribers raised 4.4 million (provided other factor

remains constant such as mobile sets decreases their rates and rise of media

campaigns )

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Chapter No. 5

Market Power

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5.0 Market Power

In spite of this competition Mobilink’s price is slightly higher than other

connections. Due to following reasons

1. Vast Network throughout the Pakistan.

2. Signal Quality

3. Fashion, Trend

4. HUM BOLAY MOHABBAT KE ZABAN (Different languages)

Facts About Mobilink GSM

Company Structure Private Limited

Genre Subsidiary

Parent Orascom Telecom Egypt

Owner Naguib Sawiris

Founded 1994

Founder Motorola USA

Industry Telecommunication

Headquarters 42 Kulsum Plaza, Blue Area, Islamabad.

Area served

5000 cities, towns, and villages across

Pakistan

Revenue 250.2 million USD (3rd quarter, 2006)

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Website www.mobilinkgsm.com

5.1 Strategy and Management

Mobilink is led by Zouhair Abdul Khaliq, who has been the President and the

CEO since June 2003. Since then, Mobilink has embarked on an aggressive

growth strategy. Mobilink closed 2003 with 2 million customers. In

comparison, Mobilink closed 2005 with more than 11 million subscribers.

Currently, the subscriber base has increased to more than 24 million.

Network

During the last 13 years, Mobilink has set up one of the largest cellular

networks in the country. Currently, it is covering more than 5000+ cities

and towns. This has involved an investment in the company of more

than US$ 1 Billion. Mobilink has 50 Switches and more than 4,900 cell

sites and the number keeps growing at a rapid pace. It also has

deployed around 3,000 km of optical cable.

Switches Siemens and Alcatel

Radio Base Stations Motorola and Alcatel.

Intelligent Networks Siemens

Microwave Equipment NEC and Alcatel

Operating Frequency 900/1800 MHz

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Evolving the Prepay

Traditionally, post-paid billing has always been the method that telecom

companies have used for obtaining payments for the services provided.

Whether the said companies were state-owned giants, or private ventures;

billed accounts were the way to go. With the advent of mobile telephony, this

system changed to accommodate and facilitate the needs of different users.

Here was where the prepay concept was born.

The company that is credited with introducing the concept in Pakistan is

Mobilink. There is little doubt, though, that when the company that prided itself

on its executive clientele came up with prepaid cards, it could not have

imagined the extent to which the idea would take off in the country. On the

other hand, it is not hard to imagine the motivation behind Mobilink’s decision

to launch its offering. At the time, having a cell phone and a post-paid

connection was no cheap thing. So, the company decided to try to grow by

targeting the majority that could not afford billed connections. The idea

worked pretty well, and Mobilink Jazz came to be.

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5.2 BCG

GROWTH RATE MATRIX

　

5.3 Marketing Management & Mobilink GSM

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Marketing Management

The art and science of choosing target markets and getting, keeping, and

growing customers through creating, delivering, and communicating superior

customer value.

Marketing Research

The marketing research process includes the systematic identification,

collection, analysis and distribution of information for the purpose of

knowledge development and decision making. The marketing executive at

Mobilink admits that understanding markets and customers is the bedrock on

which business planning and strategy is built. Without knowing our customer’s

needs and wants or understanding demand, our business will be under

constant threat from competitors and may be failing to extract the maximum

value from the market. Mobilink provides excellence in market research

through their extensive experience in telecommunication working. 

They focus on providing better research techniques that enables to

understand why and how customers make choices and a better research

process, based on understanding the business and commercial context.

Mobilink marketing executive further says that our research process is

designed so that we take more care to understand our goals and constraints

and use this to deliver better value to our customers. Market research does

not sit in a vacuum. The design and outcomes of a market research project

have to reflect not just the results from the data, but the way in which the

organization could and should use the data.

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CHAPTER NO. 6

Market Management

37

6.1 Marketing research process by Mobilink

Effective marketing research in Mobilink consists of 6 steps

Step 1: Identifying and defining the problem

Step 2: Developing the approach and establishing research design and

strategy

Step 3: Collecting the data

Step 4: Performing data analysis

Step 5: Reporting and presentation

Step 6: Making a decision

Step 1: Identifying and defining the problem

The first step is to understand the question(s), which need to be answered.

Then they work to identify and outline the marketing research project

objectives and define the size and source of the survey sample. Next, the

most appropriate marketing research methodology is determined. The

innovative and actionable design approaches ensures that study is

customized to meet the unique needs of the project.

Step 2: Developing the approach and establishing research design and

strategy

Mobilink researchers gather data both by primary and secondary means. The

second step is questionnaire development. Surveys are designed with the

marketing research objectives in mind. It is made sure that the questions

address the needs of the project and all surveys are pre-tested to confirm the

survey, instructions and procedures are set up appropriately. The next step is

to coordinate data collection.

Step 3: Collecting the data

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The data is collected via telephone, in-person, through the Internet or by using

qualitative research. Marketing research studies are continuously monitored

by the research team to ensure accuracy. As Mobilink is well aware of the fact

that data collection phase is prone to errors and inaccuracies so the

management tries hard to get that right. A major problem is getting biased and

dishonest answers. So getting true respondents is crucial.

Step 4: Performing data analysis

The fourth step is to analyze the data. Once collected, Mobilink utilizes their

extensive statistical and analytical expertise to transform the data into clear,

concise and actionable information. Key findings are summarized and a

course of action is recommended.

Step 5: Reporting and presentation

The fifth step is to report the results. Our clients have come to rely on our

reporting capabilities. Whether it's providing presentation-ready materials,

formatting reports to meeting the internal standards or delivering reports via

choice of media, every effort are made to give the insight that mobilink is the

most innovative and progressive telecommunication company in Pakistan.

Step 6: Making a decision

Mobilink uses marketing decision support system to enable its managers to

make better decisions, it is the system for collection of data, system, tools and

techniques with supporting software and hardware which an organization

gathers and interprets relevant information from business and environment

and turns it into a basis for marketing action.

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6.2 Mobilink's Mobile Intelligence Program

Mobilink's Mobile Intelligence program is a framework, which we apply across

our own research and development as well as across all our mobile marketing

and mobile media assignments for our clients and partners.

This approach is market proven and has been the foundation for the 100's of

mobile products and services that we have developed and managed since

January 2001. This framework underpins our research and thinking on Mobile

Communities, Mobile Services for the Youth Market and the convergence of

Mobile Marketing and Mobile Media

The Mobile Intelligence program has 5 key phases:

6.3 Discovery

Understanding and identifying the key objectives of the mobile

services.

Mobile Marketing or Mobile Media or a combination of both?

Research and due diligence

6.4 Strategic Planning

Identifying and documenting timeframes, milestones and business

case

Integration with new or existing marketing and media activities

Legal and compliance issues

Strategic partners and distribution channels

6.5 Creative Development

Creative and campaign development

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End user experience and interaction design

Mobile media production and delivery

Integrated mobile marketing and media services

6.6 Mobile Technology and Implementation

Element Platform and Modules

Telecom and messaging infrastructure

Use of appropriate technology and mobile content (SMS/MMS/Java/

Ring tones/Icons)

Hosting, management and ongoing technical support

6.7 Program Management

Client Services Team

End user support

Ongoing reporting and analysis

Proactive ideas and research

Roadmap for client development

6.8 Mobilink Marketing Intelligence

Marketing Intelligence System is a method of collecting and organizing

important business information into a useable form for important

business marketing purposes. Marketing Intelligence System at

mobilink is used for various purposes:-

For the ability to forecast sociological and technological changes ahead

of time and make the necessary internal changes to adjust to the

changing environment of the consumer.

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The ability to track customers order history, their interests, and apply

that information to better advertising and target marketing.

The ability to detect competitor changes to enhance the company’s

operation tactics in which area that competitor operates.

For Mobilink, the Intelligence Platform is a way of thinking about who they are,

what they know, and what they think about the company and the competitive

marketplace. When we begin an assignment, the Intelligence Platform is

examined as it is. Questions like “What do we know? What ideas have

been generated? What are the drivers that give the business its unique

personality?” are answered in order to get the required information.

Mobilink views marketing intelligence with three very different components. It

includes data, ideas, management experience, and judgments.

Source Categories

Search engines, search utilities, etc.

Financial information sources (Company filings / public & private

company data)

Newspaper and news resources

Patent & trademark resources

Government sources

Trade & industry sources

Demographic data

Geographic / Country information & maps, satellite images, etc.

Trade directories

Legal information sources

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Competitive intelligence database software suppliers

Other public information sources

6.9 Segmentation, Targeting, & Positioning

6.9.1 Segmentation

Mobilink, a telecommunication service provider emphasizes on being part of a

value delivery process. The first phase, choosing the value, represents the

‘homework’ marketing must do before any product exists. First, the marketing

staff must segment the market. The variables used for segmenting the

consumer market demographic as well as psychographic:-

Age

Income

Occupation

Social Class

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6.9.2 Targeting

The second step of choosing the value is selecting the appropriate target

market. Mobilink’s target market varies with its different product lines e.g. the

Mobilink Indigo brand mainly targets the corporate sector of the Pakistani

community. The Jazz Octane is designed to attract youth; Jazz Budget is

aimed at the middle and upper-middle class, while Mobilink World targets the

masses with its diverse value added services.

It is important to understand that the future of marketing telecommunication

services in Pakistan is going to be based on targeted segmentation strategies.

Mobilink follows the target selection pattern of full market coverage and

develops strategies as per the requirement of the different targeted segments.

Mobilink has followed a consistent strategy of growing the network and

ensuring that the products are available everywhere. This growth has been

further strengthened with brand building activities that have ensured that Jazz

and Indigo remain synonymous for premium telecommunication services for

which they are close to the hearts and minds of the customers.

6.9.3 Positioning

Developing the offering’s value positioning is the last part of choosing the

value phase of the value delivery process.

Mobilink’s catchphrase “Mobilink… Reshaping Lives” tells all about how

they want to position the brand in the minds of their target customers.

The message they want to communicate to the consumer market is that

Mobilink is the best solution for telecommunication and can be trusted to

provide communication facilities all across the globe where no other service is

available.

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6.10 Competitive Forces

The industry structure of Pakistan’s mobile phone service providers is

differentiated oligopoly; a small no. of large firms producing products partially

differentiated along the lines of quality, features, styling, or services. There

are 6 major providers of mobile service in Pakistan.

Mobilink GSM

Telenor

Warid Telecom

Ufone

Paktel GSM

Instaphone

6.11 Mobilink’s Market Share and Role in the Pakistani Market

Pakistan’s largest cellular provider maintains a tremendous growth rate

despite the deregulated market. With the introduction of new products into the

market and expansion through various rural and urban cities, Mobilink

continues to capitalize on its position in the market. Despite complaints about

quality and connectivity issues, the number of customers continues to grow.

Mobilink commands approximately 46.5% market share and is the market

leader. This firm has the largest market share in the relevant product market,

and leads the other firms in price changes, new-product introductions,

distribution coverage, and promotional intensity. It is followed by Ufone which

has 20.9% of the total Pakistan market. Warid claims a 15.7% share of the

country’s wireless market closely followed by Telenor with 14%. Paktel had

2.7% of the users untill the end of 2006.

6.12 Competitive Strategies

45

Being the market leader, first, Mobilink must find ways to expand total market

demand. Second, it must protect its current market share through good

defensive and offensive actions. Third, it has to try to increase its market

share, even if the market size remains constant.

6.13 Expanding the Total Market

Mobile phone tele-density has increased to 35 per cent with over 53 million

users. The market growth still has 65 percent potential if not more, as

Pakistan’s population is over 150 million. The dominant firm gains the most

when the total market expands. Same is the case with Mobilink. It uses the

following strategies to expand the total market:-

Market-penetration strategy

New-market segment strategy

Geographical-expansion strategy

6.14 Defending Market Share

The rapid growth in mobile phone ownership has opened a new, mass

marketing channel for marketers to reach their target market. Direct,

responsive and measurable, mobile marketing is emerging as a key element

of the marketing mix for Mobilink.

Mobile marketing integrates across the marketing mix to drive the

effectiveness of both above and below the line activities. Delivering:

Direct marketing channel to customers

Clean, uncluttered environment to maximize the impact of the

marketing message

Context and time relevant marketing medium

Instant response mechanism delivering true one to one communication

A digital medium enabling deep campaign measurement and analysis

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Mobilink marketers are deploying the mobile to strategically drive customer

acquisition, retention and improved relationships to defend its market share.

Campaign tactics include as an instant response mechanism to TV and poster

campaigns, as a direct medium to drive awareness in targeted demographics

and for instant win for on or off pack promotions.

Engaging and effective mobile marketing campaigns reflect an understanding

of the existing mobile habits of the target market.

The unique and personal nature of mobile communication dictates an

approach that is clear, actionable, engaging and instantly rewarding for

consumers.

How does the target market currently use mobile?

The effective integration of the campaign across multiple elements of

the marketing mix

Ensuring a positive customer experience as a key driver for response

and uptake

Building long term value out of data collection

Operating within the regulatory and legal guidelines for mobile

marketing

6.15 Company Orientation

While a company has to keep a watch on its competitors, Mobilink strongly

favors a customer-centered orientation and considers itself to be a

customer-centered company. A customer centered company is in a better

position to identify new opportunities and set a course that promises to deliver

long-run profits. Same is the case with Mobilink. By monitoring customer

needs, it can decide which customer groups and emerging trends are the

most important to serve given its resources and objectives.

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CHAPTER NO. 7

Marketing Strategies of Mobilink

48

7.1 MARKETING MIX THE 4 PS

Marketing mix

It is the set of marketing tools a firm uses to pursue its marketing objectives.

McCarthy has classified these tools into four broad groups, called the four Ps

of marketing:

1. Product

2. Price

3. Place

4. Promotion

Mobilink management understands the importance of the marketing mix and

its decisions, which must be made for influencing the trade channels as well

as the final consumers. The company prepares an offering mix of products,

services, and prices, and utilizes a communication mix of advertising, sales

promotion, events, and experiences, public relations, direct marketing, and

personal selling to reach the trade channels and the target customers.

As a popular brand there is a lot that is expected from the company and the

management strives hard to ensure that the promises are kept. Mobilink has

been continuously investing in network resources and improving its marketing

mix so that its vast customer base can be satisfied and expanded.

The four Ps of Mobilink’s marketing mix are explained ahead in detail.

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7.1 PRODUCT

7.1 Mobilink Product Lines

Mainly there are four product lines of Mobilink with each having separate

target markets and positioning.

Mobilink Indigo

Mobilink Jazz

Mobilink World

Mobilink PCO

7.1.1 Mobilink Indigo

Mobilink re-launched its postpaid services on the 11th of May, 2004 under the

brand name, Indigo. Indigo ignited an evolution in the communication industry

redefining the essence of the post-paid services in Pakistan. The brand

delicately caters to the need of its customers, symbolizing the vision of

connecting the subscribers in every aspect of life. Indigo says:

“In life you come across some exceptional people, who, like you,

appreciate only the finer things in life. When it comes to creating a bond

and staying connected to them count on Indigo for its unrivalled

premium post – paid connectivity to get you through”.

7.1.2 Indigo Offerings

Indigo

BlackBerry

Citi Mobilink Credit Card

Call& Control

Indigo Reward

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Indigo Genie

7.1.3 Target Market

Indigo targets the upper business class that is not concerned with the cost but

want convenience, quality and a brand image that suits their personality. Who

doesn’t want fun or music but want a brand that is “Competent” and Indigo is

well satisfying the desires of its corporate customers. Introducing Blackberry

connect through which businessmen can take

their office anywhere, share attachments etc. That is why Indigo customers

are loyal to the brand and hesitate to switch to other connections. It can be

said that Indigo enjoys the benefits of a monopoly in the corporate sector.

7.1.4 Mobilink Jazz

Jazz is an exciting and energetic offering of Mobilink, targeting specifically

those enthusiastic teenagers, middle class and the youth market of the

country, wishing to enjoy freedom, fun, lower rates and a package that

matches their personality.

7.1.5 Jazz Offerings

Jazz Budget

Jazz Octane

Jazz Ladies first

Jazz Easy

Jazz Share

Jazz Load

Jazz Advance

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7.1.6 TARGET MARKET

Jazz Budget

Target market is those young boys and girls who want to stay in touch with

their friends and family all the time but with cheaper rates. “Happy hours” with

only 0.40 /30 seconds.

Jazz Octane

Targets those customers who want to have fun in their daily

life........enhancing energy in their personality of youth with low SMS rates,

discount rates and lower air time rates for three numbers.

Jazz Ladies First

Specifically designed for ladies (housewives) who along with their routine

work want to have recipes, beauty tips, shopping discounts etc. (Also lower

rates for special numbers.)

Jazz Easy

Jazz Easy customers can enjoy calling at amazingly low call rates for Mobilink

numbers, they also benefit tremendously from the fabulous rates to call on

any other network.  

Jazz Share

An exciting new service targeting the Jazz family Members and allows them to

share balance anytime, anywhere.

Jazz Advance

Targets Jazz Family Members with Additional balance benefit to help them

talk some more!

Jazz Load

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Jazz Load allows to recharge Jazz account in variable denominations.

7.1.7 Mobilink World

Mobilink World is the Value Added Services Brand for Mobilink. These

services are not just fun, but also help its customers with their business

needs. Whether it's a Bolo SMS they want to send to a friend or a ring tone

they want to download to customize their phone with, Mobilink World has

something special for them.

7.1.8 Mobilink World Offerings

Mobi Safe

Holy Sayings

Corporate SMS

Mobi Greetings

SMS Scheduler

SMS Game Time

Bolo SMS

Mobitunes

G:i:30

WAP Portal

Mobilink Edge

Mind Reader

CricVideo

International SMS Chat

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Ring Tone Club

7.1.9 Target Market

Mobilink World is the Value Added Services Brand for Mobilink and its target

market is its whole customer base:

“Mobilink World services are not just fun, but also help you with your

business needs. Whether it's a Bolo SMS you want to send to a friend or

ring tone you want to download to customize your phone with, Mobilink

World has something special just for you.”

7.1.10 Mobilink PCO

For the first time ever Mobilink has brought Mobilink PCO, a revolution in its

own right that shall surely set apace the way its consumers communicate at

the grass root level. Mobilink PCO is a fixed wireless phone that has special

PCO functions capability. It consists of two LCD's that helps customers to

keep a tap on the duration and the costing of the calls they make.

This latest venture from Mobilink is aimed at bringing prosperity and

happiness for all the people throughout Pakistan. It's a complete self-

employment solution for the people of Pakistan, fulfilling their dreams and

aspirations.

Mobilink PCO does not only give its consumers higher returns on a very low

investment but it also creates a world of better prospects in terms of a

consistent source of income for them.

Mobilink PCO claims

“Wherever you are, throughout Pakistan whether the remotest deserts

of Sindh or the spectacular peaks up north expect unparallel coverage

from your Mobilink PCO”

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With this unit customers experience even higher returns even though the

investment in terms of capital is very minimal. Mobilink PCO no doubt is a

world of opportunities within itself.

Exceptional coverage and the ease of its wireless technology-carry it

wherever you wish

Load the free jazz card provided and embark on a successful business

venture right away

Benefits from after sales services

7.1.11 Parental Control Phone Disney D100

Mobilink and Disney have launched a parental-controlled mobile phone for

children. This is the first time a cellular company in Pakistan has launched a

mobile phone that will meet the communication and security needs of parents.

The features of the new Mobilink-Disney D100 allow complete parental control

on all outgoing and incoming calls and text messages. With the help of this

new feature, parents can control who the child can correspond with, thus

enabling parents to keep a check on the list of people the child is

communicating with. Furthermore, the phone is easy to use as it provides the

child with a one-key option to reach parents. It is also protected in that it does

not feature Bluetooth or a camera and cannot access any type of multimedia

content or website. The handset features embedded Disney ring tones,

animated screensavers and wallpapers. The D100 will come with both four

and twelve button keypads that are interchangeable to adapt the handset to

the capability of the child. The handsets are available featuring popular

Disney characters, including Mickey Mouse, Donald Duck, Winnie the Pooh

and Tinker Bell. Mobilink services give parents complete control over their

child’s phone expenditure thus making it a cost-effective resource.

The D100 has been developed for Disney by Dubai based Broad link

Research, Disney’s licensee and partner. After conducting market research

and realizing the growing needs of working parents to stay in touch with their

children using mobile phones; Mobilink in collaboration with Disney has

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introduced this innovative solution to the Pakistani market. Moreover,

changing social trends and feedback received by Mobilink through this

research led the market leader to co-launch a safe and secure solution for

parents.

7.2 PRICING

Mobilink is the undisputed market leader, which is why it is believed to be

expensive as compare to other telecommunication service providers. Having

the largest customer base in the country with the fact that its service is

available in the remote areas of Pakistan as well, people rely on Mobilink

services leading to the fact that Mobilink charges higher compared to its

competitors.

Mobilink has the largest subscriber base in Pakistan with 24 million

customers. Mobilink recently started GPRS services with RS. 500/ month of

unlimited usage which is a treat for GRPS users who want to take their office

with them. Mobilink provides them with this facility with fairly reasonable

charges.

Tariff Details for Mobilink Products

Indigo

Indigo Freedom Plans

Details ChargeFreedom

Plan 1

Freedom

Plan 2

Freedom

Plan 3

Freedom

Plan 3+

Freedom

Plan 4

Weekend

Tariffs Rs/min 0.99 0.75 0.63 0.50 0.40

F&F Rs/min 0.99 0.75 0.63 0.50 N/A

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Charges

Air Time

ChargesRs/min 2.00 1.50 1.25 1.00 0.60

Free

Minutes Monthly 0 100 400 800 1200

Line Rent Rs 0 100 400 900 1500

SMS Rs/msg 1.00 1.00 1.00 0.75 0.50

Free

SMSMonthly 10 15 20 25 30

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Jazz

Jazz Budget Tariffs

Details Rates

Outgoing calls to any Mobilink number

during selected Happy Hour Window *Rs. 0.40 / 30 seconds

Outgoing to 3 F&F Mobilink numbers Rs. 0.75 / 30 seconds

Outgoing calls to any Mobilink number Rs. 0.90 / 30 seconds

Outgoing calls to all mobile networks in

Pakistan Rs. 1.25 / 30 seconds

Outgoing calls to all Landline numbers

in Pakistan Rs. 1.25 / 30 seconds

SMS (Jazz to Mobilink) Rs. 1.0 / SMS

SMS (Jazz to other networks) Rs. 1.5 / SMS

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Jazz Easy Tariffs

Details Rates

Outgoing calls to any 3 Friends &

Family Mobilink numbers*Rs. 0.99 / min

Outgoing calls to any Mobilink Number Rs. 2.10 / min

Outgoing calls to all mobile networks in

PakistanRs. 2.50 / min

Outgoing calls to all Landline numbers

in PakistanRs. 2.50 / min

F&F Numbers Offered 3 (Three)

SMS (Jazz to Mobilink) Rs. 1.0 / SMS

SMS (Jazz to other networks) Rs. 1.5 / SMS

F&F numbers addition/modification * Rs. 15 + tax / Modification

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Jazz Octane Tariffs

Details Rates

Late Night Option - All Mobilink

numbers ** Rs. 0.75 / min

Outgoing Calls to any 3 F&F Mobilink

numbers* Rs. 0.99 / min

Outgoing calls - Any Mobilink number Rs. 2.50 / min

Outgoing calls - To Landline numbers

(inclusive of interconnect charges) Rs. 2.99 / min

Outgoing calls - Other mobile networks

(inclusive of interconnect charges) Rs. 2.99 / min

SMS - to any Mobilink number *** 20 paisas / SMS

SMS - to any other network in Pakistan 50 paisas / SMS

Daily Charges Rs. 1.00

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Jazz Ladies First Tariffs

Details Rates

Outgoing calls - Any Mobilink number

(1st Minute) Rs. 2.50 / min

Outgoing calls - Any Mobilink number

(2nd minute onwards) Rs. 1.50 / min

Outgoing calls - Any Mobilink number

( 3pm-6pm ) Rs. 1.50 / min

Outgoing calls - To Landline numbers

(inclusive of interconnect charges) Rs. 2.99 / min

Outgoing calls - Other mobile networks

(inclusive of interconnect charges) Rs. 2.99 / min

SMS based Value Added Services

Subscription Rs. 30 / month

SMS (Push based Value Added

Services) Rs. 2.00 / SMS

SMS - Any mobilink number Rs. 1.00 / SMS

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SMS - Any other network Rs. 1.50 / SMS

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Pricing Strategies

Mobilink uses psychological pricing. They have set their target price on

consumer perception of the product value e.g. outgoing calls at any 3 Mobilink

numbers cost Rs.0.99/min. They haven’t set the price exactly on Re.1 but

have used psychological pricing to attract customers. Mobilink is the only

telecommunication network in Pakistan, which has reached maturity and is

the market leader. This is why, there prices are somewhat higher than its

competitors like PTCL Wireless and World Call Wireless (at introduction),

Warid (at growth) and Paktel (at decline). They made use of psychological

pricing also by offering free roaming facility during Hajj.

Mobilink is not using competitive pricing strategy because they are enjoying

the market leadership in Pakistan. At maturity, as different market segments

are targeted the prices must be offered in such a way that suits the targeted

segments.

Mobilink is doing exactly the same. They have offered prepaid connections

like Jazz Octane, Jazz Budget and Jazz Ladies First, which can be

afforded by the people not having very high incomes. Though, the prices of

these packages are relatively higher than the prepaid packages of other

telecommunication networks but still attractive. Jazz Ladies First is a package

designed specially for ladies through which they can shop, listen to beauty

tips and recipes at relatively lower rates. Jazz Octane offers SMS rates as low

as 25 paisas/msg and late night option rates at Rs 1.50/min and many other

facilities at attractive rates. Jazz

Budget Package is an economical way to talk to any Mobilink number in

Pakistan. It has announced another ground breaking first of its kind offer with

the re-launch of Jazz Budget. The package has been launched with a fresh

look and tariffs tailored specifically for the masses.

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One of the key highlights of this package is the ‘Happy Hour’, which is bound

to hit a chord with the nation, and has been developed keeping the

communication needs of the Pakistani people in mind. Keeping in view the

fact that Mobilink customers make 7 out of every 10 calls to a Mobilink

number, the new package is specifically customized to offer customers the

lowest rates to call the largest mobile network in Pakistan.

Mobilink is also offering postpaid connections with the name of Mobilink

Indigo, popular within the business class. In this way, Mobilink is earning

maximum profits by enabling people from different target segments to become

a part of the largest cellular network in Pakistan. Jazz customers can now call

US and a number of other Zone 1 destinations on Jazz local outgoing rate!

Mobilink is also offering "Zabardast GPRS Offer" which allows Mobilink

customers to use GPRS just for RS.100/year.

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7.3 PLACE

7.3.1 Marketing Network

During the last 13 years, Mobilink has set up one of the largest cellular

networks in the country. Currently, Mobilink is covering more than 5000+ cities

and towns. This has involved an investment in the company of more than US$

1 Billion. Mobilink have 50 Switches and more than 4,900 cell sites and the

number keeps growing at a rapid pace. Mobilink also have deployed around

3,000 km of optical cable.

For Mobilink, last year was a bit difficult as they struggled to grow as quickly

as the market itself. Today mobilink is confident that it has 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 telecommunication industry in

Pakistan.

In 2003 mobilink invested upwards of US$ 200 million in improving their

network and services. Mobilink have already put in 7 switches, over 820 cell

sites and new IN platforms for better coverage and connectivity. In upcoming

years mobilink is trying to invest in technological upgrades, superior customer

services, and improved coverage.

Mobilink customers remain their priority and in an effort to enrich their lives

Mobilink have put in place state-of-the-art call centers in Karachi, Lahore,

Islamabad and in other cities of Pakistan where well trained staff is geared to

answer complaints and queries, and a new billing system is in the process of

commissioning. Mobilink is constantly expanding their nationwide franchise

and distribution network and upgrading them to offer customer services so

that the customers can find a Mobilink contact as near to them as possible.

7.3.2 Coverage

Mobilink provides the widest coverage network, covering more than 5000+

cities, towns, and villages across Pakistan. It connects over 24 million family

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members every second of the day with exceptional voice quality due to its

broad coverage. The coverage is expanding day by day, and it is claimed by

the management that soon the only other thing covering Pakistan more than

Mobilink would be the clear blue sky.

The type of coverage service Mobilink provides is divided into three main

categories:

PHYSICAL PRESENCE (Mobilink has physical infrastructure in the

area)

INDOOR SPILLOVER COVERAGE (High coverage level in adjoining

area)

OUTDOOR SPILLOVER COVERAGE (Medium coverage level in

adjoining area)

7.3.3 Nationwide coverage

Mobilink provide true nationwide coverage in more than 5000+ cities, towns,

and villages across Pakistan. Mobilink provide its services in urban areas as

well as towns and villages. In nationwide Mobilink provide services in

following areas.

Punjab

Sindh

Balochistan

NWFP

Capital

AJK

FATA

7.3.4 International Roaming

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Along with nationwide coverage, Mobilink also provides true International

Roaming in over 100 countries with more than 300 partner operators

worldwide. The regions where Mobilink provide International Roaming are as

follows. Mobilink’s roaming partnership with Thuraya has further enhanced

international roaming coverage. Through satellite communication the Mobilink

connection can be used in areas where there is no GSM coverage.

United States

Canada

Caribbean

Europe

Middle East

Africa

Asia

Australia

Mobilink International Partners

A list of recent partners is given below:

Sr. # Country Name Operator Name Frequency

1. Jamaica Digicel 900/1800

2. UAE du 900/1800

3. Cyprus Areeba 900/1800

4. N/A GSM on the Ship 900/1800

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5. United Kingdom T - Mobile 900/1800

6. Maldives Wataniya 900

7. Switzerland Orange 1800

8. N/A OceanCell 900

9. Maritime Roaming MCP 1800

10. Mozambique mCel 900/1800

11. Senegal Sonatel 900

12. Panama C&W 850

13. Ivory Coast MTN 900

14. Oman Nawras 900

15. Brunei DST 900

16. Ukraine UMC 900/1800

17. Portugal Optimus 900/1800

18. Uzbekistan Coscom 900/1800

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19. South Africa Vodacom 900

20. Argentina CTI Movil 1900

21. Jordan Xpress iDEN

22. Uruguay CTI Movil 1900

23. Belgium BASE 1800

24. Sri Lanka Mobitel 1800

25. El Salvador CTE Personal 1900

26. Armenia K Telecom 900/1800

27. Saudi Arabia Etihad Etisalat 900

28. Tajikistan Indigo (North) 900

29. Italy Wind 900/1800

30. Germany O2 1800

7.4 Promotion

Mobilink provide its service products directly to customers or with help of

intermediaries involved in distributing its product. Distribution channel contain

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set of interdependent organizations involved in the process of making a

product or service available for use or consumption by the consumer or

business users. Mobilink also distributes its product to end user with help of

intermediaries as well as it distributes its product directly to customers.

Mobilink supplies its product range to intermediaries with involvement of its

“Commercial and Sales Department.”

Mobilink authorizes limited number of dealers to deliver its service product.

But Mobilink provides its prepaid cards to almost all the markets and

consumer shops. Providing its prepaid cards in every corner of the city helps

mobilink to satisfy the need of consumer and to gain customer satisfaction.

However mobilink deliver its Sims to customer with help of Franchises,

service centers, and sales offices. These Franchises, service centers, and

sales offices are given by the right of providing its service product by Mobilink

itself.

7.4.1 Logistic Management & Mobilink

In today’s global marketplace, selling a product is sometime easier than

getting it to customers. Companies must decide on the best way to store,

handle and move their products and services so that they are available to

customers in the right assortment, at a right time, and in the right place.

Physical distribution and logistics effectiveness has a major impact on both

the customer satisfaction and company costs.

Mobilink also tries to be best in physical distribution and logistics

effectiveness. Mobilink provides the most extensive network coverage

footprint across Pakistan through an integrated technology infrastructure in

more than 5,000 cities, towns, villages, and countless remote destinations,

including International Roaming in 100 countries through 300 partner

operators. Mobilink is best in logistic management and physical distribution

from its competitors.

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7.4.2 Distribution Strategy of Mobilink

There are three types of distribution strategies. First Intensive Distribution,

second Extensive Distribution and third is Selective Distribution. However

mobilink follow both intensive and exclusive distribution strategies. While

providing its Jazz prepaid cards Mobilink follow Intensive Distribution strategy

means that stocking Jazz prepaid cards in as many outlets as possible. While

providing its service products (like SIM Cards of Jazz, SIM Cards of indigo

and Mobilink PCO Sets as well as Prepaid cards) Mobilink follow Extensive

Distribution strategy means that it gives limited number of dealers the right to

deliver its product.

7.4.3 Logistic partnership and Mobilink

Companies must also work with other channel partners to improve whole

channel distribution. The members of distribution channel are linked closely in

creating customer value and building customer relationship.

Mobilink management builds logistic partnership to achieve customer value

and building customer satisfaction with different courier services. The courier

companies by which Mobilink has partnered are as follows:

TCS

OCS

UPS

7.4.4 Third party Logistics & Mobilink

Most business perform their own logistics functions. However growing number

of firms now outsource some or all of their logistics to Third Party Logistics

providers.

Mobilink also use Third Party Logistic provider for transportation of shipment

of its service products to warehouses, dealers or customers. Different courier

service providers are the Mobilink third party logistic providers. The main

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reason for using third party logistic provider by Mobilink is that it is useful for

Low Fixed Investments.

Mobilink selects, motivates & evaluates channel members thought Interviews,

Financial standing, Training and Reports.

7.5 Advertising Media

Companies can do more than make good products—they must inform

consumers about product benefits and carefully position products in

consumers’ minds. To do this, they must skillfully use the promotion tools of

advertising, sales promotion, public relations, sales force, direct marketing,

and personal selling.

Advertising Goal

The chief advertising goal of Mobilink is to increase its customer base and to

stimulate more usage.

Mobilink is currently using:

Information Advertising: To create brand awareness and knowledge

of its Mobilink World brand.

Reminder Advertising: To stimulate the repeat purchase of its Jazz

and Indigo brands.

Advertising Budget

Since the competition is intense in the telecommunication market, Mobilink

has a significant advertising budget. It is advertising heavily to be heard and

to constantly remind its target market to go for Mobilink. However, Mobilink’s

actual advertising budget was not disclosed by the management.

Media

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Mobilink is using television, print, and radio advertising media to disseminate

its message and to build a brand preference but the most preferred is

television since this medium is the most powerful, reaches a broad spectrum

of consumers and has the maximum customer impact.

Radio: It has a relatively large listeners’ base and so is an effective

way to communicate the message.

Billboards and Print Media: The Company has come up with

elaborate campaigns, billboards and posters to promote Indigo, their

post-paid brand.

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Print Media

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Billboards in Multan

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Advertising Campaigns

The advertising theme “Mobilink: It’s simply a way to communicate”, is

designed to demonstrate the new service’s simplicity and convenience.

Along with its service debut, Mobilink launched a nationwide campaign

composed of television commercials and print ads. The national campaign is

supplemented by local and regional ad campaigns produced by the Mobilink

licencees. The national print and broadcast ads are designed to be localized.

The success of Mobilink has not only to do with its increased offerings, but

also has a great deal to do with the campaigns that Mobilink comes up with.

The TV ads exude energy and liveliness, and an expressive color and

lightning palette, the high frequency and visibility makes these advertisements

noticeable which results into increased brand awareness and brand loyalty

boosting sales.

Strong Brand Ambassadors: Mobilink in its advertising went on a different

route (now copied by competitors) by starring the most charismatic superstars

in its advertisements. The tested method of having a pretty face holding a

Jazz card makes its advertising campaigns booming. Strings, Vaneeza

Ahmad, Shaan, Iman Ali, Zainab Qayyum, Wasim Akram, and Shahid Afridi

are some of celebrities associated with Mobilink.

The Indigo Campaign: In its Indigo campaign, Mobilink has made a

conscious effort of strongly placing it on the “image” platform and mapping it

in the prospects mind making it a prestigious brand. Interestingly, it re-

enforces Mobilink’s early perception of being the brand for the image

conscious (peer leader) which gives the impression that Indigo is an

‘enhanced’ step further in this direction.

The Jazz Campaign: The current prepaid Jazz campaign has brought

Mobilink’s image to the masses and is more on the ‘functional’ platform. When

competition was introduced in the Pakistani market, It was at this point that

the true evolution of prepay began. It was more than apparent that every

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single customer was important and every single subscriber was vital. Almost

immediately, the marketing and advertising improved; and a more conscious

effort was made towards trying to reach out to every aspect of the consumer

market. At first, Mobilink went a slightly different route, and instead of

targeting the large youth market, continued to use it’s tried and tested method

of having a pretty face holding a Jazz card. Iman Ali joined other famous

models as being a Jazz Girl. But with the competition getting intense, Mobilink

finally decided to raise the profile of Jazz. The tariff wars between the

providers initially caused Mobilink to offer WAP on Jazz, and then to slash

prices and improve its quality. Finally, in February 2006, Mobilink launched

Jazz Octane, a package ‘designed for the communication needs and lifestyle

of the Pakistani youth segment’. The belated foray of Mobilink into the youth

market has met with promising early success, and the new package offers

quite a bit. The early success of Octane has not only to do with its increased

offerings, but also has a great deal to do with the campaign that Mobilink

came up with. Perhaps most effectively and symbolically, the ad showed an

old woman embracing the youthful abandon that Octane is shown to offer. It

can be argued that the old woman’s name is Mobilink.

Later the introduction of such packages as Jazz Budget, and Jazz Ladies First

has met tremendous success.

The Mobilink World Campaign: Mobilink World being the value added

service brand for Mobilink has been started with an elaborate campaign with

TV advertisements and print ads.

Sales Promotion

Mobilink uses different types of sales promotion method such as:

Consumer promotions

In order to kindle greater and quicker purchases Mobilink is carrying out the

following consumer promotion activities including special deals such as:

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Indigo Freedom Plan: this deal offers certain benefits of which two

are:-

Friends & Family: This feature is available to the customers on any

three Mobilink numbers (Jazz and Indigo) which can be added into F&F

list by calling the help line at 111.

Local Rates: According to this freedom plan across Pakistan, all call,

across all networks are charged as local calls.

Bonuses & Free Airtimes: Mobilink has been offering a number of

bonuses to its consumers. An example of its current bonus offer is:

Bonus on Recharge: Mobilink brings an exciting offer for its Jazz

customers. Recharging their Mobilink Jazz connection between 18th

May 2007 and 18th June 2007 will give them 100% free airtime (if the

customers have not recharged in the year 2007).

Mobilink Jazz International Rooming Free Hajj Umra Ramazan offer

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7.6 Business and Sales Force Promotions

Mobilink also carries out business and sales force promotions on frequent

basis.

Specialty Advertising: Mobilink uses certain items imprinted with its

logo as well advertising messages such as calendars, caps, radios,

mugs, and candles. These items are given as gifts to customers by

salespeople.

Sales Contests: Mobilink actively carries out yearly sales contests in

order to motivate the sales force to put in greater effort.

Trade Shows: mobilink actively participates in trade shows in order to

enhance its business promotions. It took part in the usual trade-show

presentations of Asia Pacific Billing and Revenue Management Week.

This event has a particularly interesting through line of taking services

to understand markets. Topics like ‘Increasing Prepaid ARPU in Price

Sensitive Markets’ and sessions on micro payment plans for low

income markets were discussed in detail. The speakers included

individuals from Mobilink GSM in Pakistan and Telemig Celular in

Brazil.

Jazz 3000 Minutes + 3000 SMS Offer!

Samsung Gets Roadshow Going in Karachi

wi-tribe sponsors P@SHA ICT Awards 2010

PTA Reports Massive Violations by Telcos in Selling SIMs

PTCL’s Student Broadband Package Promo Extended!

7.7 Event Sponsorship

To enhance its corporate image, Mobilink practices event sponsorship. It

sponsors movie premieres, concerts, sports events and community welfare. A

few events sponsored by Mobilink are given below.

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Golf Organized for Premium Consumers by Mobilink Indigo Brand

On May 4, 2007 Mobilink Pakistan organized an invitational Club Indigo Golf

Tournament exclusively for Mobilink’s corporate customers. The golf

tournament was organized at the Islamabad Golf Club by Mobilink Indigo

Club. It aimed at bringing the top executives from the corporate sector at one

of the most popular greens of the city. Expressing his views on the Indigo

Club tournament, Zouhair A. Khaliq, the President and CEO of Mobilink said,

“Needless to say we are the leaders in the telecom sector, but this does not

stop us from doing more for our customers, we strive to set higher standards

for all in the business. Through Club Indigo we ensure the maximum level of

customer satisfaction for our corporate accounts and establish concrete

relationships through tailor-made services and special offers for our major

clients.”

Club Indigo is responsible for building relationships with its exclusive clientele,

through superior customer services.

7.8 Other Sports Events

Recently Mobilink also held an invitational tennis tournament in Karachi and

has organized and sponsored various sports events across Pakistan,

including cricket and Polo tournaments, providing quality entertainment to its

customers.

7.9 Direct Marketing

Mobilink also uses direct channels to reach its customers without using

marketing middlemen. These channels include direct mail, catalogues, tele

marketing as well as e-marketing. Mobilink also uses a very unique technique

to reach its customers directly.

7.10 SMS Marketing

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Mobilink uses SMS marketing to send messages directly to customers. SMS

marketing creates one-on-one communication with the market. Mobilink

management believes that:-

“Today’s consumers are mobile and today’s marketing must reflect that.”

As SMS is one of the largest platform to reach consumers and almost every

mobile phone is SMS enabled, this method has 100% penetration. SMS

targets end consumers directly via their mobile phones and compels them to

take action in order to enjoy a promotion, thus increasing the success rate of

the brand. Plus, SMS is also a cost-effective way to communicate.

7.11 Electronic Marketing

Mobilink finds it electronic marketing very important and highly accountable.

7.12 Mobilink’s Website

Mobilink has paid special attention to the “context” & “content” of its website to

encourage repeat visits.

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Mobilink’s website not only has attractive design and layout but is also very

interesting and easy to navigate.

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Context:

The alluring color scheme used in the layout of website make it worth

navigating. The choice of color itself has a table to tell.

Indigo: a combination of basic blue suggests the vibes of blue dream.

Red: illustrates passion of blood.

The savior is the icon (ball) that pitches in a rave of energy and suggest a

motion for the brand ID. The logo which is not only Influential & Exhilarating

but a sure head turner and is doing wonders in touching hearts and assuring

absolute strength in the brand.

7.12.1 Content:

The content is also the heart of the website. It includes:

Info

News

Weather

Business

Mobilink GSM updates

Fun

Mustt Tones (polyphonic tones)

Double mustt tones (true tones)

Music Videos

Wallpapers

Greeting Cards

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Java Games

Animation

Today’s Special

Color Logos

Mobile themes

Sports

Cricket Updates

Football

Golf

Tennis

Others

Media

TV Commercials of Mobilink

Tools

Yahoo

MSN

Google

MSN Messenger

Hotmail

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Gmail

7.12.2 Online Ads and Promotions

Online ads and promotions tools such as banners ads and search related ads

are being used by Mobilink GSM. These ads are placed on targeted and

frequently viewed websites. Banners are also placed on related websites such

as those which support web to SMS. For example “smspk.net”

7.13 Mobilink’s Sales Force

Sales force serves as the companies personal links to the customers.

Mobilink fast paced growth is fueled by the foundation of innovation and the

relentless work of 4000 dynamic team members.

The sales force members are some of the best talent in the country and can

be distinguished from others on the basis of their convincing power. The have

the passion and the spirit to challenge the norms, and so they are the part of

winning team.

7.13.1 Sales Force Objective:

The chief objective of Mobilink’s sales force is not only to encourage sales but

also to diagnose customer’s problem and to propose an effective solution thus

satisfying them completely. They play a strong role in improving customer

profitability.

7.13.2 Sales force Structure

Mobilink’s sales force manages following types of sales force:

Technical and Application Engineers

Service Personal

Distributor Sales Force

7.13.3 Sales Force Compensation

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Mobilink has attractive compensation packages for its sales force. Along with

a fixed amount i.e. salaries, they are also offered variable amounts such as

lucrative commissions. Benefits such as paid leaves as well as accident

benefits are also offered to the sales force.

7.13.4 Training the sales Representatives

Since Mobilink realize that a professional sales force plays a key role in

developing and growing customers, it trains its sales representatives to

effectively convince the customers by using effective screening techniques.

7.13.5 Success Factors of Mobilink

Mobilink is still the Market Leader and its success factors include:

Innovative Products

Excellent Customer Services

Best Coverage among cellular operators

7.14 Joint Venture with Shell

July 29 , 2011 – Mobilink Jazz recently partnered with Shell Rimula to give

its lucky customers the chance to win lots of valuable prizes. Each Shell

Rimula pack contained a code which the customers would have to scratch

and SMS to 660 through their Jazz SIM. The customers would not only

instantly win a 4 litre Shell Rimula pack but also be entered into a Lucky Draw

to get the chance to win 9 tractors, 90 motorcycles, Shell Rimula packs and

for new Jazz customers, thousands of free minutes and SMS’s! Our heartiest

congratulations goes out to the lucky winners on winning their prizes. Mobilink

Jazz always strives to provide its customers with the best connectivity, the

most affordable packages and the most value-filled offers. Mobilink -

Pakistan’s market leader in cellular services and a part of Orascom Telecom

Holding and Shell Pakistan Ltd. - the premier Oil and Lubricants Company;

today jointly announced the winners of the 6th to 9th  lucky drawsfor their joint

promotional campaign which offered its respective customers a chance to

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participate and win a multitude of prizes. In the ceremony 4 tractors and 40

motorcycles were given away via the lucky draws. .

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CHAPTER NO. 8

Tasks Performed During Internship

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TASKS PERFORMED DURING INTERNSHIP

8.1 LEARNING AS A STUDENT INTERN

In this chapter, I discussed about my duties during internship.

Accomplishments, new knowledge gained during exercise of practical life,

problems which encountered in the way of completion of my targets are briefly

discussed. In the end of this chapter, I talked about my experience and how

this experience impacts my career.

Whom I done my Internship

My Duties During Internship

8.2 DAILY ACTIVITIES

Creating Opening Cash Position

Updating the balances of the major current and saving accounts maintained

by Mobilink, these include accounts maintained in CITI, DB ACBL, ABL, HBL,

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SCB, UBL, MCB, NBP, NIB, FBL and RBS. Furthermore balances are also

taken of accounts from whom any payment may be due, to assess the funds,

to be transferred on the next day. Some accounts are to be adjusted like SCB

account is to be adjusted to the lien marked amount.

Updating the cheque float, this includes adding new cheques released on that

day.

The information of the new cheques released, is received from the accounts

payable department and then using the DB direct & CITI bank’s website to

see the cheques that have been cleared from the CITI’s current accounts

maintained in Islamabad, Lahore and Karachi. Furthermore, updating the

cash in hand section as and when information is received. The information is

received from the operations department within the finance department, and

as the information of more than 500 franchises and sales centers is not easy

to get daily, the information is only updated 2 or 3 times a week.

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Cash Transfers

After calculating the amount of liability to be paid out from various banks on

the following day, transfer letters are prepared to transfer funds to the bank in

which they are required. Furthermore, all major collections, that comes from

four major banks, which includes Allied Bank, United Bank, Habib Bank and

Standard Chartered, is transferred to Askari Bank daily. The instructions for

fund transfers are on the same day pay order basis and all instructions to the

banks are forwarded through fax and then confirmed.

Other Activities

Filing the photocopies of the transfer letters that were faxed daily was another

task that I performed. Furthermore original transfer letters were also needed

to be sent out to the respective banks and also updating the payments file

daily were some of the other tasks performed daily.

Occasional Activities

Encashment

As soon as Citi bank provides us with a notification on an encashment, a

conversion rate is asked, to convert the 65% of the total amount to Pakistani

rupee. When the bank provides us with the detail, an inward remittance rate

sheet is made, which shows the total remitted amount, the 35% and the 65%

amount of the amount, in both foreign currency and Pakistani rupee.

Furthermore a letter to Citibank is also made, issuing them the authority to

convert and transfer the 65% of the encashment into the account and also

transferring the 35% of the amount to the dollar account of Mobilink.

Lastly a Form R is made to notify the SBP that 65%of the total amount has

been converted to Pakistani rupee, as stated by the foreign exchange

ordinance of Pakistan and lastly all the above letters are attached, with the

original notification letter and then sent to Citi bank to go through with the

transaction. As part of my internship, I had to make all these letters and then

send them to the bank.

International Payments

As stated earlier, international payments are made either on international

roaming charges or international charges made by the different departments

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of Mobilink. As soon as our department receives the Payment Authorization

Form (PAF), which is used for inter department expenditures and approvals,

with the completion form and the original invoice, a payment order and a

purchase requisition or the original invoice for non departmental expenditures,

the department issues an letter to the bank for the payment, including the

amounts and all banking details like the SWIFT No, beneficiary bank name

and the account title.

Furthermore a Form M is also submitted to bank, which gives them the

authority to debit our PKR account and buy the foreign currency at a

conversion rate agreed. These letters are then forwarded to the bank, for the

transaction to take place. As part of my internship, I had to make all these

letters and then send them to the bank.

Account Opening

Mobilink often open accounts as to help out with operation, including, during

my internship with Barclays and UBL. As a task, all the main items were

provided to the banks. The main items provided to these bank included the

Memorandum and Articles of Association, Letter of Incorporation, Board

Resolution, Form 29, which shows tells about the director of a company and

the NIC or passports of all the people in the board of resolution and NTN

certificate. All these documents are attested by the company secretary of

Mobilink and are provided to the bank, with the bank account opening form

and request letter from Mobilink.

Credit Cards

Credit card of SCB AMEX are provided to all directors and above of the

company and when they want to either increase their limits or wanted to give

out advance payment s into their credit cards because they were going

abroad, or any other expense, letter of authorization are sent to the

Relationship manager handling the Mobilink AMEX card. These letters of

authorizations are made after discussions with the HOD and his final signing

of the letters. As part of my internship tasks, I had to make these letters of

authorization.

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8.3 MONTH END ACTIVITIES

Interest Income Sheet

Each month all the banks to which interest was accrued are calculated. First

all of the bank statements for the period are collected from the accounts

department and then using the applicable rates, all the balances are added to

the interest income sheet and the interest income is calculated. As part of my

internship, I had to calculate the interest amount for the month.

8.4 New Knowledge Acquired

Being a student of MARKETING it was a great experience for me to have

chance to get in the market and do this work. And I also learn how to deal wit

customer as I thought if you want to make sale you should go to the customer

or customer come to you, you should have a smiling face to greet the

customer, and if customer do not buy your product than you should leave a

good impression on that customer because if in future that customer need

your product than it will come to you to buy that product.

As I told that I was given a target of sales I learn a lot during my internship

how to deal, who to avoid difficult situations and how to create demand for

your product. I myself make many policies to make sales because selling a

SIM2 was not a difficult task to do customer is ready to take SIM from you but

to sell him recharge of Rs.100 was a bit difficult, so keep in view the cost of

SIM and load I make many polices to sell. Even I sold free SIMs too (get

number of your choice in Rs.160 with 160 balance) and many more policies

like this.

2 Subscriber identity module

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8.5 IDENTIFICATION OF A MAIN PROBLEM AND FINDINGS

Job Rotation and Advancement

The main problem that I have identified within the treasury department as a

whole is the lack of job rotation within the department and not enacting on the

job advancement rules.

According to my findings, no official job rotation takes place within the

treasury department, even though the employees informally try to learn about

the working of other departments through their peers. They show keen

interest in learning new things as all the operations within the department are

interlinked.

Furthermore the only time, officially, when an employee is told about the

working of another part of the department, is only when he is moved to that

part, for example, when an employee initially working for trade department is

transferred to off shore financing because of shortage of employee. This

learning should not be considered as a job rotation, because this shift is

permanent for that given employee.

Furthermore, at Mobilink, the rules and procedures for job advancements are

laid out however it has been seen that junior executives, especially those at

associate level are not promoted to specialist levels, even though they have

fulfilled the main requirement- years of experience with Mobilink. This creates

dissatisfaction within the employees.

During my time in the field I encountered also many other problems like:

Cross questions of customers

Customers having much knowledge about other network’s offerings

Pricing problem

I face those problems very well, and I was able to neglect those problems. But

in sale you should have to be cool and calm because nobody wants to loss

his customers. I also do this because in between sale was stopped than I

came with one to one marketing go to the customer to sell my product and

was very much successful doing this.

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Another problem was that customer was ready to take SIM but without

recharging, it was a very difficult thing to convince that customer to recharge

at the spot.

8.6 How This Experience Impact My Career?

It was a great experience in the field, before the completing my studies I got a

chance to get in the market and do some work. When I will get in my practical

life soon after completing my degree this experience will go whit me and will

be very beneficial for me in the field. Because in the any kind of job in

marketing or sales department in Pakistan you should have to interact with

the customer and try to fulfill the needs and wants of the customers.

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CHAPTER NO. 9

CRITICAL ANALYSIS

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9.1 SWOT analysis

SWOT analysis is a strategic planning method used to evaluate the strengths,

weakness, opportunities and threats involved in a project or business venture.

It involves the specifying the objectives of business ventures or projects and

identifying the internal and external factors that are favorable and unfavorable

to achieving that objective. This technique is credited to Albert Humphrey who

led a convention at Stanford University in the 1960s and 1670s using data

from Fortune 500 companies.

Strengths: attributes of the person or company that is helpful to

achieving the objective(s).

Weaknesses: attributes of the person or company that is harmful to

achieving the objective(s).

Opportunities: external conditions that is helpful to achieving the

objective(s).

Threats: external conditions which could do damage to the

objective(s).

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SWOT analysis of Mobilink

Basically Mobilink hire from reference so SWOT analysis is based on this

source. What they lose due to this source and what are the advantages of this

source are discussed below:

STRENGTHS:

•Considered very strong and reliable

•Captured most of the potential customers (28 million and growing)

•Covering over 10,000 cities, towns and villages across the Pakistan

•First operator to introduce IR for the people of Pakistan

•Only cellular service in Pakistan to provide coverage on the M2 motorway.

•A very strong brand image

•Highest market share not only in terms of number of subscribers but also in

terms of revenue.

•Mobilink has signed bilateral roaming agreements with 50 operators around

the world to have true roaming service operational in over 42 countries of the

world.

•In order to facilitate its international Roaming subscribers traveling to USA

and Canada, Mobilink is offering Motorola Timeport Triband (TT) handsets on

rental basis. These sets are available at all Mobilink's Customer Service

centers.

•Mobilink's short message service center allows Vehicle Tracking and Fleet

(VTF) Management services

.• Large number of corporate customers

.• Economy of scale.

• Mobilink and Muslim Commercial Bank have made a combined effort in

order to maximize the ease and the satisfaction of their respective customers

by offering them all banking services from their very own mobile handset.

•Only company offering corporate packages

WEAKNESS

•Currently providing not good quality service because of changing their

network from 900 MHz to 1800 MHz.

•Fewer advertisements now days.

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•Most expensive telecom company both in call rates and SMS

•Engineering department of Mobilink is not that well competent as compared

to its new competitors

•Customer retention Side is weak due to expensive packages

OPPORTUNITIES:

•Can expand its networks in the uncovered areas

•Services in the future can be

•Telephone

•Wireless

•Calling Cards

•Mobile Phone Banking

•Before start of new companies can target as many new customers as they

can.

•Can lower prices to make business difficult for new companies

THREATS:

•New market players are coming in near future.

• New companies can offer packages for corporate customers in better way

.• Wireless local loop service providers too targeting areas

which are less developed.

• Current price war may reach at a position where only brand names survive

• Due to expensive quality of service now a days customers can shift to other

companies.

•Employee retention is also issue because mobilink fired 1000 employees in

October 2008.

•Loss of loyal customer

9.2 Mobilink’s Competitors

The mobile subscriber market in Pakistan has crossed the 100 million mark

in February 2011 and has reached a total of 105,151,871 mobile

subscriptions, according to the data released by Pakistan Telecommunication

Authority.

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According to the stats, all five cellular companies showed consistency in

adding 1,145,103 mobile phone users in February 2011, as compared to

1,229,381 cell users in January 2011. The individual figures in terms of total

subscribers by February 2011 of all the five companies are as follows.

Mobilink           

32,499,495

Telenor                

25,388,878

U-fone                

20,368,752

Waird                   

17,693,626

Zong                       

9,201,121

In terms of the percentage market share:

Mobilink              32%

Telenor                 23%

U-fone                 19%

Warid                   17%

Zong                        9%

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Due to some healthy competition going on between the five cellular service

companies of Pakistan, subscription has been made a lot easier then it

previously was. Moreover, there is also facility of changing the service

provider offered by some companies with U-fone in particular. All what a user

has to do is buy a mobile sim from any nearest shop wherever available just

having a copy of N.I.C. After putting the sim in the mobile simply dial the help

line number to provide the necessary details to the customer services officer

and enjoy the service.

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9.3 CONCLUSION

The mobile industry has seen phenomenal growth over the year, showing

growth rate of more than 80% in 2007. This growth is not new to the industry,

as previous years have shown substantial growth as well. This growth is a

direct result of the increased competition in the mobile industry, resulting into

better services at reduced rate. Furthermore, this has favorably affected our

economy as a whole, generating revenues for the government, through direct

and indirect taxation and creating employment opportunities for the people.

The mobile industry of Pakistan is considered by a majority of prospective

employees as the best industry for a job.

Although the mobile industry has seen substantial growth over the years,

many observers feel that the industry may become saturated and will show

lower growth rates as a result of increased taxation and the general economic

conditions of Pakistan. Although the concerns may be valid to some extent,

but with PTA, introducing the 3G platform in the coming years and a major

part of our population still without mobile connectivity, especially in distant

villages, there is still optimism that the mobile industry will not become

saturated and there is still place for competition in the industry. Mobilink has

been in operation since 1994, and since then has become the market leader

by providing its customers with the state of the art products and services.

Mobilink has for years enjoyed a good market share of the total industry; its

current market share is 36%14.

Even though Mobilink has been a market leader, for so many years, providing

the most technological advanced products and services, it has for a number of

years been facing strong competition from Telenor and Ufone, which has

resulted in a decrease of its market share. This has led Mobilink to a policy of

diversification, by introducing products like Mobilink PCO and WIMAX

services. Although Mobilink has diversified, it still is providing competitive

products and services for its core products-Jazz and Indigo.

Finally, internships are an important part of the academic program, as they

provide us with the practical experience during our academic career. I am

very grateful that I received an internship at Mobilink as it was a great learning

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experience on how a multinational company works and further improved my

skills of team working and critical decision making.

CHAPTER NO. 10

SUGGESTIONS

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&

RECOMMENDATIONS

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10.1 SUGGESTIONS

We have a lot of suggestion for the company. Some of them are:

Mobilink should work on network improvement.

As far as their charges are concerned they are a bit expensive as

compared to their competitors so we suggest that the charges should

be reduced.

Mobilink should attract maximum customers and satisfy them.

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10.2 RECOMMENDATION

As identified earlier, the problem that I identified was the lack of job rotation

within department and not enacting on job advancement rules and

procedures. Some of the recommendations to this problem are as follows:

Firstly I would recommend that the department officially start job rotation. The

major benefit of which would include even more motivated employees, with

enhanced skills.

One of the major arguments against job rotation is that without it, employees

will perform only one task and will become specialized in that particular job.

Furthermore, the argument also suggests, that with job rotation, only general

information is imparted to employees, not essentially helpful in doing complex

tasks. However, in today’s business environment, multitasking is becoming

more and more essential and thus rotation becomes essential in making

employees multitask.

Furthermore, the organization structure of the treasury department makes it

easy for job rotation, as all sub departments major functions are interlinked to

each other and mostly all departments currently have more than one

associate employee, except cash management.

Secondly I would also suggest that specific job related training should also be

imparted to the employees, this would have an additional benefit of further

rotation. Also professional counseling programs should also be started to

provide employees with the information, regarding future prospects at

Mobilink and in the mobile industry.

Lastly, I would suggest, that Mobilink adheres to its job advancement

procedures because for an employee that has worked with Mobilink for more

than 2-3 years, they should be awarded with the fruits of job advancement, as

I believe that the criteria of job advancements currently used is a standard in

most MNC’sand job advancements are a part of career growth. Furthermore,

job advancement s will create future leaders for Mobilink.

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CHAPTER NO. 11

References & Sources

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References & Sources

www.mobilinkgsm.com

www.mobilinkworld.com

www.google.com.pk

www.polarismr.com

www.prenhall.com

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APPENDIX

Web Resources

Wikipedia (wikipedia.com)

Articles used:

Mobilink

Ufone

Telenor Pakistan

Warid Telecom (Pakistan)

Paktel

China Mobile (Pakistan)

Mobilink (mobilinkgsm.com)

Pakistan Telecommunication Authority (pta.gov.pk)

Ufone (ufone.com)

Telenor (telenor.com.pk)

Warid (waridtel.com)

Zong (zong.com.pk)

Orascom Telecom (otelecom.com)

The News (thenews.com.pk)

Reports

Orascom Telecom Annual Report 2007

Orascom Telecom Annual Report 2006

Mobilink’s Balance Sheet and Income Statement

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CHAPTER 12

ANNEXURE

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112

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