SWOT Analysis of Telecom boom in

Pakistan

TAJ WALI

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SWOT Analysis of Telecom boom in
Pakistan

S W O T
 What is SWOT Analysis?

It is a widely applied
technique to evaluate the
strategic position of any
Strengths business or project.

Technique is credited to
Albert Humphrey who led a
research project at Stanford
University in the 1960s and

Oppurtunity
SWOT Weakness
1970s.

Planning tool used to

Analysis understand Strengths,
Weaknesses, Opportunities,
& Threats involved in a
project / business.

Technique that enables a

Threats group / individual to move
from everyday problems /
traditional strategies to a
fresh perspective.
 What is SWOT?

• SWOT is a business or strategic

planning technique used to
summarise the key components of
your strategic environments.
 Introduction

• SWOT analysis (strengths, weaknesses,

opportunities, and threats analysis) is a
framework for identifying and analyzing
the internal and external factors that can
have an impact on the viability of a project,
product, place or person.
 STRENGTHS
Rapid growth : World popular and strongest telecom
players invested their money like
Orascom,Telenor,Etisialat etc.

Due to presence of Significant Market Player in the

market the newcomers are betting hard and competing
well with same enthusiasm and force.

By 3G,4G license Pakistani Telecom industry

jumps to next level. This will not only bring
additional foreign direct investment, but the
telecom standards of common person will shoot
up significantly.

Due to mobility and accessibility, cellular services

are the primary choice of users to communicate.
 STRENGTHS
Internet service accessibility-to-cost ratio for
cellular networks is far greater than landline
telecommunication..

Mobile phones have become quite affordable for

average person.

It is much easier to make international calls from

mobile phone than land line.

Examples -, Well-known brand name,, Lower costs

[raw materials or processes], Superior
management talent, Better marketing skills, Good
distribution skills, Committed employees.
 WEAKNESSES

Mobile telecom has still not established

itself effectively in remote regions of
Pakistan

Survey indicates that cost is still a major

factor hindering the usage of mobile data
services in Pakistan

Network accessibility and signal strength is

still a major issue in remote as well as high
traffic density regions of Pakistan.

Internet access cost is not justified by the

quality of service.
 WEAKNESSES

No research and development programs..

Employee skill inconsistency.

High Taxes: Tax is something that is in

government’s hands. Despite the fact that in
latest budget, taxes on Telecom industry
were lowered, but still the move was not
enough to bring down the taxes at a
considerable level.

Very low employee morale.

 OPPORTUNITIES

Due to telecom engineering courses offered Within

Pakistan , cellular network operators can benefit by
hiring local manpower and reducing their operating
costs.

Mobile marketing is gaining rapid popularity.

Cellular companies can utilize this new feature to
increase their revenues.

Mobile telecom can establish its roots in remote

areas of Pakistan will allow operators to
increase their revenue and to cover up their
cost and financial threats.

There is still 14% adult population of Pakistan

to be equipped with cell phones
 OPPORTUNITIES

Local handset manufacturing.

Removal of international trade barriers

Value added services, such as Mobile Banking,

Mobile Internet etc are some of the fronts that
are yet to be fully explored by cellular
companies.

Technological innovations greatly improved the

quality-to-cost ratio and serviceability to-cost
ratio of cellular services . Telecom companies in
Pakistan can benefit from active research in
mobile telecom by introducing the modern
communications equipment to improve their
services as well as introduce modern mobile
data services.
SWOT ANALYSIS - THREAT

THREATS
Low cost landline telecom services are now
being offered in Pakistan.

!
Landline telecom companies are offering high
speed internet access to their users, unmatched
by cellular data services.

Power crisis in Pakistan is causing a major

threat to telecom companies and having severe
implications to their ability to offer low cost
cellular services.
SWOT ANALYSIS - THREAT

THREATS
Network coverage and signal quality get
affected during eventful days

!
Customers may switch to alternate
telecommunications means in response to
poor mobile telecom service quality.

Unpredictable shift in government policies

poses a real threat to cellular network providers.
An increase in taxes in 2009 caused the mobile
network operators to lose a large amount of
revenue.
Thank You!
Questions?