Mobilink Vs Telenor

A Comparative Case Study

Subject: Strategic Marketing
Presented by:
Presented To:
M. Saeed Mujahid

Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction SWOT Service Marketing Mix Value

added services Corporate social responsibility Financials Branding Primary Research
Recommendations.
1. Introduction:
This study comprised of two basic type of research primary and secondary. Industry under
discussion is Mobile Operators (telecommunications). Mobilink is being compared with telenor.
Objective is to compare their main points of competition, strengths, weakness and then some
recommendations to proceed further or maintain leading positions. As we know all, that there is a
cut throat competition in mobile operators and this has already taken the major portion of profits
away. As per market experts sooner or latter there will be merger of mobile operators as the price
wars have entered into very serious era and it has become the question of assistance. Our
secondary research includes the pricing, offering, corporate social responsibility, financials and
the branding. While primary research is focused on the quality of service which will be the new
battle field in near future.

Mobilink:
Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in 1994, and
has become the market leader both in terms of growth as well as having the largest customer
subscriber base in Pakistan - a base of over 28 million and growing. The first cellular service
provider to operate on a 100% digital GSM technology in Pakistan. Mobilink offers exclusively
designed tariff plans that cater to the communication needs of a diverse group of people, from
individuals to businessmen to corporate and multinationals. Mobilink offers postpaid (Indigo)
and prepaid (JAZZ) solutions to customers. Both the postpaid (Indigo) and prepaid (JAZZ)
brands are the largest brands of their kind in the Pakistan cellular industry. In addition to
providing advanced voice communication services that makes the lives of millions that much
easy. Mobilink places high importance to its coverage (10,000+ cities and towns nationwide as
well as over 130 countries on international roaming service). Mobilink is Pakistan's Dominant
mobile operator, with 28.6mn subscribers and a market share of approximately 41%.
Pakistans increasingly competitive mobile market, Mobilink has suffered a decline in market
share, given that the operator controlled about 50% of Pakistans mobile market in June 2006.

Telenor:
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together
with Thailand, Malaysia and Bangladesh. Telenor Pakistan launched its operations in March
2005 as the single largest direct European investment in Pakistan, setting precedence for further
foreign investments in the telecom sector. The company has crossed many milestones and grown
in a number of directions, making Telenor Pakistan a leading telecom operator of the country.
Telenor is the fastest growing mobile network in the country, with coverage reaching deep into
many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the
northern areas to the deserts in the south. Telenor investing heavily in infrastructure expansion.
With USD2 billion already invested, with extended agreements with their vendors for network
expansion and services. Telenor have a network of 23 companyowned sales and service centers,
more than 200 franchisees and some 100,000 retail outlets. The Telenor Group is an international
provider of high quality telecom, data and media communication services with mobile operations
in 13 markets across the Nordic region, Central and Eastern Europe and in Asia. The Telenor
Group is among the largest mobile operators in the world with over 143 million mobile
subscriptions and a workforce of approximately 40,000. Telenor Pakistan is 100% owned by
Telenor ASA and adds on to its operations in Asia.
2. SWOT SWOT Analysis (Mobilink Pakistan) Strengths:
Pioneer in GSM service in Pakistan. Strong Brand name Good coverage and speed Highest
market share in terms of subscribers and revenue. Roaming agreements with 50 operators in 42
countries Large number of corporate customers. Economy of scale. Phone Banking.

Weaknesses:
High call rates. Large organizational structure Falling Market share

Opportunities:

WLL and ILD services in competition to PTCL, providing opportunities for infrastructure
suppliers Growth of VAS WiMAX networks, mobile TV services. Deployment of 3G
technology Huge potential for growth especially in rural parts of the country Adaptation of
newest technology. Field-testing and certification of its General Packet Radio Service (GPRS)
products

Threats:
Competition
 High tax rates Increase in imported equipment costs Network capacity Deterioration in
service quality Political instability

SWOT Analysis (Telenor Pakistan) Strengths:

Network quality and design Superior customer care Financial strengths Excellent
coverage and distribution Contract with Siemens and Nokia Brand image of quality

Weaknesses:
Relatively low market share Low profit margin Negative cash flow in initial years

Opportunities:
Favorable macro economic indicator Low cellular market penetration Inefficiency and
poor performance of other networks Strategic alliances and infrastructure sharing facilities
Mobile number portability International mobile equipment identity system

Threats:
Rolling customers Privatization and deregulation- increased competitors Wireless
technology at boom Propaganda attacking on brand image
3. Services Marketing Mix: 1. Product:
Mobilink has two brands first Jazz which is pre-paid second is Indigo which is post-paid.
Mobile Currency is the concept of Mobilink. Its two main offers are mobile money order (for
masses) and bill payment (only for post-paid). Mobilink is working very rapidly to take the
advantage of awareness spread by Telenor. Also mobilink is analyzing the basic issues faced by
to provide error free reliable solution. Telenor has two brands one pre-paid with name
Talkshawk while other is post-paid with name Persona. Telenors other main offering is the
easypaisa. Its concept is based on mobile commerce two main offering are bill payment and
money transfer. Telenor has spent a lot on this joint venture especially on awareness. But it still
facing operational issues and the project has not matured still.
2. Price:
First the pre-paid segment. Different packages are offered with different pricing schemes.
Param eters On -Net OMO PTCL Fn F 68 Paisa 63Pais a On e A1 Rs 1/min Eas y H Min ar ute _
H S ar econ d Rs 0.68/30 sec Rs 0.63/30 sec Rs 1/min Rs 0.68/30 sec Rs 0.63/30 sec Rs 1.6/ min
Rs 0.68/30 sec Rs 0.63/30 sec Rs 1.6/ min _ _ Rs 1/SMS Rs 1/SMS Rs 1/SMS Rs 1.5/SMS Rs
2.10/min Rs 2/min _ Rs 0.04/sec _ Rs 0.05/sec _ Rs 0.05/sec _ Rs 0.03/sec _ Rs 1/SMS _ Rs
1/SMS

Rs 1.4/min Rs 2.50/min Rs 2/min Rs 1.4/min Rs 2.50/min Rs 2/min Rs 1/SMS Rs 1/SMS Rs

1/SMS Rs 1.5/SMS Rs 1/SMS Rs 1/SMS

Rs 1.5/ 3 min Rs 0.7/min Rs 0.99/min Rs 1/min

S -On-Net Rs 1/SMS MS S -Off-Net Rs 1/SMS MS

* OMO other mobile operators * FnF friends and family no

Mobilink being the market leader is the trend setter, 30 sec package was launched by mobilink
and all others have to go for this too. But Mobilink is very conscious about its image and
positioning never wants to be the cost leader. Telenor pricing is more convincing than Mobilink
in all packages. Only Telenor is operating in per second billing. Mobilink has left the entire
segment of per second billing empty. Reason again may the positioning. Mobilink is better only
for 1 FnF segment of ONE package where its cost just 50 paisa per minute. Some special
offerings are Mobilinks Jazz Ladies First(JLF) and Telenors 10 Paisa. JLF was the main
revenue earning package in 2007 and 2008 and still its effective. Main edge is that there is no
daily charge in it, pay only when you use.
P aram eters Validity Tim e TalkS hawk 3 sec 0 TalkS hawk 3 sec FNF 0 TalkS hawk h m ar in
TalkS hawk h m FNF ar in TalkS hawk A 1 min 1 st TalkS hawk A 2 m 1 nd in TalkS hawk 1 Pisa
Offer 0 1 Day 9am to 5pm Rs 0.10/30sec Rs 0.06/30sec Rs 0.20/min Rs 0.10/min Rs 0.28/min
Rs 0.20/min

P aram eters On-Net (1st m in) On-Net (2nd m onward in ) On-Net (11pm to 7am ) OMO P TCL
F riend and Faim s ly S -On MS -Net S -Off-Net MS
Jazz-L adies-F irst Rs 2.5/min Rs 1.5/min Rs 5/hour (1,2) Rs 2.5/min Rs 2.5/min _ Rs 1/min Rs
1.5/min
Now the post-paid segment. Here again different packages are offered with different line rents
P aram eters LineRent FreeMin On-net OMO PTCL SMSOn-net SMSOff-net i-100 100 Rs. 100
1.25 1.50 1.50 0.20 0.20 Easy 100 Rs. 100 1.00 1.50 1.50 0.75 0.75 i-400 400 400 1.00 1.50 1.50
0.75 0.75 Simple 500 500 1.00 1.50 1.50 0.75 0.75 i-900 900 900 0.75 1.50 1.50 0.75 0.75 Free
1500 Rs. 2000 1.00 1.50 1.50 0.75 0.75 i-1500 1500 1500 0.50 1.25 1.25 0.50 0.50

Mobilink is offering generally better on-net rates and at high end, both on-net and off-net rates
are much superior than Telenor. At entry level, i.e. i-100 VS Easy, Mobilink is offering equal off-
net rates whereas on-net rates are higher than Telenor. In the mid-range packages, i.e. i-400 vs
Simple, Mobilink is offering the same tariff for Rs. 400 line rent, whereas Telenor is charging Rs.
500 as line rent. At the high-end, both i-900 and i-1500 are far superior than Telenor Free lower
on-net rate at 40% lower line rent, while i-1500 offers 50% less on-net rate at same line rent
package. I-900 is offering 25%.

3. Place:
It refers to the place where the customers can buy the service/product and how the
service/product reaches out to that place; this is done through different channels, location,
accessibility, channels of distribution, distribution facilities, service inventory, managing
channels. Mobilink is operating in 10,000+ cities and towns nationwide as well as over 130
countries on international roaming service). Mobilink is Pakistan's Dominant mobile operator,
with 28.6mn subscribers and a market share of approximately 41%. Mobilink is facilitating their
customer bank by using -Sales and service centers -Franchises
-Retailers -JSR Telenor have a network of -Company-owned sales and service centers.
-Franchisees -Retail outlets -Easy paisa outlets -Sahoolat outlets -Mobile Vans

4. Promotion:
Both the companies adopts various ways of communicating to the customers of what the
company has to offer It is about communicating about the benefits of using a particular product
or service rather than just talking about its features. Channels of promotion used by both
companies extensively are advertising, personal selling, sales promotion, word of mouth, tele
marketing & e-marketing etc.(Both companies are pivotally active in social works and getting
promotional benefits through social and cultural aspects. Detailed comparison is placed below)

5. People:
An essential ingredient to any service provision is the use of appropriate staff and people.
Recruiting the right staff and training them appropriately in the delivery of their service is
essential if the organization wants to obtain a form of competitive advantage, consumers make
judgments and deliver perceptions of the service based on the employees they interact with.
Mobilink is emphasizing on enhancing appropriate interpersonal skills, attitude, and service
knowledge to provide the service that consumers are paying for service encounter, technical
trainings, operational trainings recreational tours and gatherings to make staff more interactive
and efficient. Telenor is also focusing on human resource trainings and putting a lot on their
Employees recruitment, training, motivation, team work, education,
and training. As it has an international repute and standards about benefits and remuneration to
their staff.

6. Process:
Service is the basic benefit they will derive from using the connection; it Includes both the
customer service and the coverage and signals in the first Place. If the customers are happy and
satisfied with the basic need met, they Would become loyal and a positive relation would
develop. Customer Service and increasing coverage provides evidence for their concern in giving
their customers unmatched service. And this can be achieved only by following iterative quality
services delivery. The systems used to assist the organization in delivering the service are said as
processes. Mobilink as a pioneer delivered the best standard of services processes. This set
standards for industry. Business centers ambiance, attire and customer friendly approaches lead
to be a pioneer in service and quality also. Telenor is also using effective approach and smooth
processes for the services and quality implementation. Telenor has introduces mobile vans for
rural areas approaches and providing services at door step.

7. Physical evidence:
Where the service being delivered, physical evidence is the element of the service mix which
allows the consumer to make judgments on the organization. Mobilink and Telenor are focusing
on clean, friendly environment, consumers will make perceptions based on their sight of the
service provision which will have an impact on the organizations perceptual plan of the service.
Mobilink is working in following areas: -Sales and service centers -Franchises -Retailers -JSR
Telenor is focusing on: Telenor have a network of -Company-owned sales and service centers.
-Franchisees -Retail outlets -Easy paisa outlets -Sahoolat outlets -Mobile Vans

4. Value Added Services:

There are lot of services offered by the both operators most of them are SMS (short message
service) based like alerts, translators, updaters, while others are MMS, GPRS and EDGE based
like Mobile TV, www, path tracker etc. Telenor has some unique offers like GPRS\EDGE USB,
DIJUICE, Location Updater. While Mobilink has Infinity (Wimax 2.5 G only in Karachi), widest
international and in flight roaming. In short we can say both the two have something to coup
with competition.

5. Corporate Social Responsibility:

Mobilink Foundation: Mobilink Foundation was established in December 2007 it reflects the
commitment of Mobilink and its employees to benefit the community. The Mobilink Foundation
is a grant-giving organization, which provides support for the local community not only
financially but also through dedicated
volunteer hours. Volunteers are their best asset and by aligning their efforts with those of the
Foundation Mobilink enable the Mobilink Foundation to meet its objectives in a united way. 1)
Health and Education 2) Trochbearers Mission statement Our vision is free access to education
for children and primary healthcare for all Pakistanis.

Project Cost RS 81 million Full capacity of 1,000 families, close to 6,000 persons. 1,009 primary
school students and 127 secondary school students were enrolled in camp schools of which 56%
were girls. 18 births were reported 2,500 recycled Mobilink school bags donated. T20 World Cup
matches aired. Polio immunization drive took place. Telenor: At Telenor Pakistan, we believe
that corporate volunteering has arrived as a major focus in the way business and community
form and view their relationships. It is an initiative in which the corporation supports and
encourages employees, partners, and/or franchise members to volunteer their time to support
local community organizations and causes. Volunteering in the community along with corporate
support is viewed by many as one of the most satisfying of all forms of corporate social
involvement.
Telenor Pakistan developed the idea of Go Teams which comprised of Telenor employees and
play a vital role in all our emergency response projects. Currently, Telenor is also operating a
Zakat Fund through which employees can donate part of their monthly salaries for the
earthquake affected children in SOS Shelters. Whether Dua, Telecom Futures, apna PCO, Naya
Qadam, emergencies and others, the support and hard work of Telenor employees has helped
position Telenor Pakistan as a leader in corporate responsibility.

From the above description we can conclude that the both the organizations understand the
importance of CSR (corporate social responsibility). It is also very clear that efforts are more
organized and managed in Mobilink and Mobilink is far ahead from Telenor.

6. Financials:
Financials are quite self explanatory as shown in the below mentioned graphs.
Cylindrical bars are showing the foreign investments by mobile operators in year 2008-09 in
US$ Millions. Table is showing the revenue generated by the mobile operators in Millions of
PAK rupee. While pie chart by showing the market share as per users and revenue generated.
And clearly mobilink is on top every where.

ARPU (average revenue per user per month) in US$. Again its showing the strength of Mobilink.

7. Branding:
Both the companies have very strong brands. Telenors talkshawk for pre-paid is doing excellent
job, in past its main presenter was Ali Zafar. Now a days Anne is representing the brand. Its a
well established brand and main source of revenue. Basic image is the freedom, excitement and
passion. On the other hand Mobilinks Jazz is covering the pre-paid segment. Jazz image is more
mature and executive than talkshawk. Jazz has successfully built an image having association
with all life segments while talkshawk is something like musical. Though Ali Zafar is presenting
the Jazz now, but it is covering all life segments not very much stick to one thing. Telenors
Persona is the post-paid solution for business class. Sohail Ahmed is presenting the brand.
Persona is covering all business segments very successfully. Mobilinks Indigo is the post-paid
solution and it has very good executive image in past Shan was presenting the brand and now a
some usual executive is presenting the brand. In our opinion its the real strength of the brand.
Mobilink is far from Telenor in branding due to many reasons. Some major are, pioneer of the
telecom industry in Pakistan, Association to Pakistani soil by presenting the patriotic songs from
Pakistani music legends. Then by launching support for IPDs from Swat. Then comes the
cricket, the romance of Pakistani nation, Mobilink Hut For Heroes is doing very special with
supervision of legend Wasim Akram. The team which played the final of under 19 cricket world
cup have the five of these Mobilink heroes. Then time to time presentation of the associations
Just right now on the marriage of Shoaib Milk with Sania Mirza Mobilink launched a beautiful
print add in all major newspaper declaring that AB SANIA MIRZA BE APNI HA and this in
line with the Jazz new Slogan Jazz Apna Ha