Mobilink Vs

Telenor

A comparative study

Subject: Marketing Research

Presented by: MBA-Exe-4

Qasim Umar
Farrukh Saeed
Bushra Nawaz
M. Omer Meraj
Saba Naz
M. Ashfaq
Abdur Rehman

Presented To:
Sir Ahmed Ur Rehman
 Department of Business Management Sciences
University of Agriculture Faisalabad
Table of Contents

1. Introduction
2. SWOT
3. Service Marketing Mix
4. Value added services
5. Corporate social responsibility
6. Financials
7. Branding
8. Primary Research
9. 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%.
Pakistan’s increasingly competitive mobile market, Mobilink has suffered a
decline in market share, given that the operator controlled about 50% of
Pakistan’s 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 company-
owned 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”.
Telenor’s 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.
Parameters 68 Paisa 63Paisa One A1 Easy Har Minute _ Har Second
On-Net Rs 0.68/30 sec Rs 0.63/30 sec Rs 1/min Rs 1/min Rs 2.10/min Rs 2/min _ Rs 0.04/sec
OMO Rs 0.68/30 sec Rs 0.63/30 sec Rs 1.6/ min Rs 1.4/min Rs 2.50/min Rs 2/min _ Rs 0.05/sec
PTCL Rs 0.68/30 sec Rs 0.63/30 sec Rs 1.6/ min Rs 1.4/min Rs 2.50/min Rs 2/min _ Rs 0.05/sec
FnF _ _ Rs 1.5/ 3 min Rs 0.7/min Rs 0.99/min Rs 1/min _ Rs 0.03/sec
SMS-On-Net Rs 1/SMS Rs 1/SMS Rs 1/SMS Rs 1/SMS Rs 1/SMS Rs 1/SMS _ Rs 1/SMS
SMS-Off-Net Rs 1/SMS Rs 1/SMS Rs 1.5/SMS Rs 1/SMS Rs 1.5/SMS Rs 1/SMS _ Rs 1/SMS
* 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 it’s
cost just 50 paisa per minute.
Some special offerings are Mobilink’s “Jazz Ladies First”(JLF) and
Telenor’s “10 Paisa”. JLF was the main revenue earning package in 2007
and 2008 and still it’s effective. Main edge is that there is no daily charge in
it, pay only when you use.
Parameters TalkShawk 10 Pisa Offer
Validity 1 Day
Time 9am to 5pm
TalkShawk 30 sec Rs 0.10/30sec
TalkShawk 30 sec FNF Rs 0.06/30sec
TalkShawk har min Rs 0.20/min
TalkShawk har min FNF Rs 0.10/min
TalkShawk A1 1st min Rs 0.28/min
TalkShawk A1 2nd min Rs 0.20/min
Parameters Jazz-Ladies-First
On-Net (1st min) Rs 2.5/min
On-Net (2nd min onward) Rs 1.5/min
On-Net (11pm to 7am) Rs 5/hour (1,2)
OMO Rs 2.5/min
PTCL Rs 2.5/min
Friends and Faimly _
SMS-On-Net Rs 1/min
SMS-Off-Net Rs 1.5/min
 Now the post-paid segment. Here again different packages are offered
with different line rents
Parameters i-100 Easy i-400 Simple i-900 Free i-1500
LineRent 100 100 400 500 900 1500 1500
FreeMin Rs. 100 Rs. 100 400 500 900 Rs. 2000 1500

On-net 1.25 1.00 1.00 1.00 0.75 1.00 0.50

OMO 1.50 1.50 1.50 1.50 1.50 1.50 1.25
PTCL 1.50 1.50 1.50 1.50 1.50 1.50 1.25
SMSOn-net 0.20 0.75 0.75 0.75 0.75 0.75 0.50
SMSOff-net 0.20 0.75 0.75 0.75 0.75 0.75 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 some thing 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. Telenor’s talkshawk for
pre-paid is doing excellent job, in past its main presenter was Ali Zafar. Now
a days Anne is representing the brand. It’s a well established brand and
main source of revenue. Basic image is the freedom, excitement and passion.
On the other hand Mobilink’s 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.
Telenor’s Persona is the post-paid solution for business class. Sohail
Ahmed is presenting the brand. Persona is covering all business segments
very successfully. Mobilink’s 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 it’s 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 IPD’s 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”

8. Primary Research:

For doing this questioner was design under supervision of our

instructor. Using the guide lines of the teacher it was designed such that it
covers all the five dimension of SERVQUAL. This model proposed by
Valerie A. Zeithaml, A. Parasuraman, and Leonard L. In this post we’ll
focus on the five dimensions of service, or the criteria used by customers to
assess the quality of services according to this model:

1. Tangibles: Appearance of physical facilities, equipment, personnel,

and communication materials.
2. Reliability: Ability to perform the promised service dependably and
accurately.
3. Responsiveness: Willingness to help customers and provide prompt
service.
 4. Assurance: Knowledge and courtesy of employees and their ability to
convey trust and confidence.
5. Empathy: Caring, individualized attention the firm provides its
customers.

Detailed questioner is shown on next two pages. Very much care was
taken in the it’s preparation but still it contains some draw backs. Question
no 5 is the worst example two different things should not be asked in a
single question as are asked 1st operator and 2nd nature of connection. Most
of people left the one option blank. Also question no 6 and 7 are not
appropriate as most of users have no direct exposure with the operator’s
offices and employee. But still it’s very good.
Research is going on and initial results are very interesting. This would
be compiled and shared in the coming presentation. Most of the sample is
comprised of salaried class and students and in the salaried class Mobilink
use is more. Also sample includes the healthy portion of females. Average
age group is 20 to 40 years.

CUSTOMER FEEDBACK
1. Name:------------------------------------------- 2. Age:----------- 3.
Earning :--- Y/N

4. Gender:-------------- 5. Profession:-------------------- Business

Salaried

5. Mobile Service you are using:

Mobilink Telenor Prepaid Postpaid

Instructions: Tick the most appropriate option.

1 = Strongly disagreed

2 = Disagreed

3 = Neutral

4 = Agreed

5 = Strongly agreed

6. Staff is well-groomed, appropriately dressed and behave

professionally.

1 2 3 4 5

7. Company office is clean, orderly, and free of food and drinks.

1 2 3 4 5

8. SIM(subscriber identity module), packaging, booklets and

brochures seem

appropriate and attractive.

1 2 3 4 5

9. Mobile signals are available at most of the areas and locations.

1 2 3 4 5

10. Mobile signals are available continuously.

1 2 3 4 5

11. Voice conversation and SMS (short message service) exchange

are smooth.

1 2 3 4 5
12. Billing service is appropriate and error free.

1 2 3 4 5

12. Call connects in first attempt mostly.

1 2 3 4 5

13. Help line service works properly without wasting time.

1 2 3 4 5

14. Your issues are addressed properly with prompt response.

1 2 3 4 5

15. Balance load and balance transfer transitions are timely.

1 2 3 4 5

16. Company representatives exhibit interest and willingness in

serving.

1 2 3 4 5

17. Customer care representatives take initiatives to inform and

secure the new

products and services for valued customers.

1 2 3 4 5

18. Company facilitates customers in understanding the different

features and their

proper execution with 100% confidentiality.

1 2 3 4 5
19. Company representatives use your name during conversation.

1 2 3 4 5

20. You feel appreciated and valued as a user of your mobile

company?

1 2 3 4 5

21. How do you rate mobile company (whose services your are
using) as compared to

other mobile operators?

1) Very poor 2) Poor 3) Average 4) Good

5) Excellent

22. Any recommendations / suggestions for your mobile company for

improvement.

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9. Recommendations:

Mobilink

• Launch few packages in per second billing in pre-paid.

• Location updater is very important feature should go for it.
• New markets like AJK and NA are showing the red alarm should
focus on it and align the marketing strategy
• Customer retention is the question of existence, improve the
responsiveness to customer’s issues and provide permanent solutions.
• Launch the “Waseela” as early as possible after complete home work,
to take benefits of Telenor campaign
 • Reduce OPEX, it would be going to strike very badly as the price
wars already have taken the profit away.
• Spread the converge of Infinity and EDGE/GPRS otherwise Telenor
USB will take every ting away.
• Address Quality of services on emergency basis.

Telenor

• Strong focus is required in branding as the competition is very tough.

• More efforts are required in building the image of Telenor as
corporate socially responsible.
• Remove the operational issues in easy paisa as soon as possible
otherwise competitors will take the advantage of your campaign.
• Have close study of Mobilink distribution scheme which has proved a
success mark of Mobilink and align your strategy or make the better
one.
• Make more and effective personality associations of the brands
• Put more efforts in Persona image.
• Change the Talkshawk image little more as per new requirements of
market.
• Apply the experience of AJK and NA in whole Pakistan to have better
results.
• Keep going and hold up future is yours, it’s the matter of temperament