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Telenor

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Presented to: Sir

Ali Khan

By:

Abdullah Noor Anis Ali Danish Jawaid Rasool Farjad Iftikhar Haris Shahbaz Usman Riaz

Table of Contents INTRODUCTION............................................................................................................................3 TELENOR PAKISTAN...................................................................................................................8 Weaknesses....................................................................................................................................16 GRAMEEN PHONE BANGLADESH..........................................................................................26 DIGI Telecom Malaysia.................................................................................................................32 TELENOR......................................................................................................................................37 Grameenphone ..............................................................................................................................38 DiGi Telecommunications.............................................................................................................40 ANNEXURES ...............................................................................................................................42

INTRODUCTION

elenor is the largest provider of telecommunications services in Norway, and has substantial international operations with over 174 million subscribers worldwide. Telenor started off in 1855 as a state-operated monopoly, named Telegrafverket as a provider of telegraph services. The first ideas for a telegraph were launched within the Royal Norwegian Navy in 1848, but by 1852 the plans were public and the Parliament of Norway decided on a plan for constructing the telegraph throughout the country. Over the past 150 years, the telecommunication sector has played an important role in the development of modern Norwegian society. In 1994, the Norwegian Telecom was established as a public corporation. In December 2000, the company was partly privatized and listed on the stock exchange. This transformation took place as a gradual adaptation to increasing competition in the Norwegian telecoms market after deregulation in the 1990s, with free competition for all services from 1998. Telenor has successfully defended its strong position in the Norwegian market. Telenor is a pioneer in mobile communications. Mobile telephony services were introduced in Norway in 1966, as a fore runner to the NMT system which came in 1981, and third generation mobile network, UTMS was introduced in 2004 commercially.

Vision

Their vision is simple: Telenor exists to help customers get the full benefit of communications services in their daily lives. As they say We're here to help.

VALUES OF TELENOR
Make it easy They are practical. They don't complicate things. Everything they produce should be easy to understand and use. As they aim to make the customers life easier. Keep Promises Everything they provide should work, or if it doesn't, we're here to help. We're about delivery, not over promising, actions not words. Be Inspiring They are creative. They strive to bring energy to the things they do. Everything produced by them should look good, modern and fresh. Be Respectful Acknowledging and respecting local cultures. They do not impose one formula worldwide. They believe loyalty has to be earned and can be done by making themselves a part of the culture.

Services of telenor

These are the main services they provide to consumers and enterprises around the world:

Voice: Talk on the phone. From fixed-line to mobile or IP telephony, Telenor enables people to talk to each other using fast and reliable networks throughout the world. Telenor provides fixed voice communication services in three Nordic countries and mobile voice in 14 countries across Europe and Asia. Data: Internet and broadband. They we offer fixed-line data services (e.g. ADSL and fibre-optic communications) in the Nordic countries, and mobile data services (e.g. mobile broadband, GPRS, UMTS) in 13 countries. Content: TV services and mobile content. Telenor offers TV services via cable, digital terrestrial and satellite networks in four Nordic markets. In several markets we also offer mobile content services (e.g. ring tones, music, movies, sports, and mobile TV). Other services: these include a wide range of telecom-related services, and the service portfolio varies from country to country. In several markets they provide Net-centric services like IT security to consumers and enterprises and machine-to-machine (M2M) services for enterprises.

Organizational structure

Global presence

The major part of our business is organized in three regions covering 14 countries:

Asia: Bangladesh, Malaysia, Pakistan, Thailand and India. Nordic countries: Denmark, Norway, Sweden and Finland. Central and Eastern Europe: Hungary, Montenegro, Russia, Serbia and Ukraine.

In our project the countries that we would be focusing and analyzing on are: Pakistan Bangladesh Malaysia

TELENOR PAKISTAN

Telenor acquired the license for providing GSM services in Pakistan in April 2004, and has launched its services commercially in Islamabad, Rawalpindi and Karachi on March 15, 2005 and now is the 2nd largest service provider in Pakistan. The official opening was held in Islamabad with the President of Pakistan General Pervez Musharraf as the guest of honor and a Telenor delegation headed by CEO Telenor Jon Fredrik Baksaas. On March 23, 2005 Telenor started its services in Lahore, Faisalabad and Hyderabad. Telenor will be launching its services in other cities as per the roll out plan. Telenor has its corporate headquarters in Islamabad, with regional offices in Karachi and Lahore. The license terms stipulate that by year 4, Telenor will cover 70% of Pakistan's 297 administrative Tehsil headquarters. Telenor will fulfill the license requirements and provide superior quality coverage. Telenor is proud to build mobile communication infrastructure in Pakistan and looks forward to combining its experience in mobile technology with the local Pakistani high level of competence. Telenors primary aim is to offer top quality mobile services and promote healthy competition in the mobile market. The company has covered several milestones over the past eleven months and grown in a number of directions. Telenor has successfully signed interconnect agreements with all four incumbents during December 2004, allowing its subscribers to exchange voice and data with subscribers on all active mobile networks including Paktel, Instaphone, Ufone, Mobilink and Warid. Upon the successful set up of our LDI unit, Tore Johnsen CEO and President of Telenor Pakistan, and Kjell Nordbo, CTO, made the first official TP international call to Norway on January 27. 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 hilly northern areas to the sprawling deserts in the south, at times Telenor is the only operator connecting the previously unconnected. Telenor is spread across Pakistan, creating 2,500-plus direct and 25,000-plus indirect employment opportunities. It has a network of 23 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets. Now telenor is operating worldwide in 14 countries with more than 174 million people using their services.

License and network


Telenor Pakistan currently holds nationwide GSM 900/1800 licences. In addition the company holds a license to build and operate a mobile network in Azad Jammu and Kashmir (AJK) and the Northern Areas. Telenor Pakistan also holds a Long Distance and International (LDI) licence under which it provides nationwide and international call services. After launching EDGE in August 2006, Telenor Pakistan has the country's widest EDGE coverage, allowing access to high-speed Internet and data services.

Coverage
Telenor covers a total of coverage area in more than 3000 cities, towns and highways throughout Pakistan, making it the 2nd largest GSM service provider in Pakistan. Telenor Pakistan has more than 5,000 cell masts throughout Pakistan, making it the 2nd largest network in Pakistan. It has GPRS service and EDGE service across its network in Pakistan. Telenor has a strategic alliance with Nokia Siemens Networks for expansion in Pakistan. Telenor currently has these dialing codes, 0342, 0343, 0344, 0345, 0346 and 0347.

Products
The products that telenor is offering to its customers come under three of its brands: Telenor talkshawk Djuice Telenor persona Easy paisa Futher these brands can be divided into two categories of prepaid and postpaid.

Prepaid Packages: Talk shawk


Telenor talkshawk is the most famous among the telenor products; the product is a prepaid connection with various conveniences. The talkshawk connection is prepaid connection for its subscribers. The smartest package to call any network, anytime with amazing call rates, freedom to recharge through Easyload.

The packages that talkshawk has to offer to its customers are:

Talkshalk A1 Telenor talkshawk A1 is an amazing package with amazing call rates, freedom to recharge through Easyload and a lot more. Consumers with this package can make cheap local and international calls to FnF.

Talkshalk Har Second Is a package that is offering its customer to make cheap calls by charging them 3 paisa per second and free calls for FnF.

Talkshalk Har Minute With Telenor's talkshawk Har Minute, customers have the freedom to avail unlimited validity throughout the year. A package with simple and economical call rates, flexible loading of air-time, high value content and GPRS products, with charges for every minute call is R.s1.5.

Talkshawk 63 Another facility being provided to its consumer by telenor; for making calls to any network at the cost of 63 paisa/ 30 sec.

Djuice
Djuice is another telenors product, this is telenors international youth brand and was first launched in Norway. Since then it has rocked in Sweden, Ukraine, hungary and Bangladesh. Pakistan is the addition to djuice family, having launched in march 2005, since then this product is attracting youth with different services innovative in nature.

The other packages that djuice has to offer to the customers are: Djuice Jaagtay Raho The best package plan to call your Friends & Family numbers just got better a whole lot better! Djuice presents djuice Jaagtay Raho the best way to stay in touch with your Friends & Family! With djuice Jaagtay Raho you can call your F&F numbers for FREE* all night long! Not only that, you can still use the very attractive day time rate of Rs. 0.5+tax/30 sec to call the same F&F numbers.

Djuice Din Raat

Djuice introduces Din Raat a package which provides customers the benefit of talking to their friends and family numbers day and night at the lowest rates. With djuice Din Raat subscribers will be able to talk to their 5 friends & family numbers for just Rs. 3.5+tax/Hour*

Postpaid Packages: Persona


Telenor is offering a great product deal for the business, managers and executives. The professional lives of the subscribers are benefited with the persona cellular connection. Persona is a postpaid connection and is giving the consumers with instant connectivity, simple and uncomplicated biling and a host of value added services with EDGE for the first time in Pakistan and international roaming for the executives in almost 125 countries. Persona offers various packages to its consumers:

Persona EASY

Persona SIMPLE Persona FREE Persona Karoobar (Aimed at Business owners)

Easy paisa
Telenor Pakistan has always been a pioneer in innovative services. For easypaisa, Telenor Pakistan has partnered with Tameer Micro Finance Bank to introduce branchless banking for the first time in Pakistan. The innovative product umbrella of easypaisa will give you complete convenience and empowerment that you have always wanted in life. easypaisa is not just limited to Telenor subscribers; its available for all mobile users. In fact people without mobile phones can equally enjoy our products. So now everyone can use our services from anywhere and anytime. easypaisa is the easiest way to conduct your financial transactions whether they are related to paying your utility bills, sending/receiving money within Pakistan, receiving money from abroad etc. Currently easypaisa is starting with utility bill payments with many other products to be available soon. easypaisas new products and services will make life more convenient for people all across Pakistan. No longer do people have to travel long distances and wait in long queues at Post Offices or Banks or be constrained by limited working hours. Any person can use easypaisa services by visiting their nearest easypaisa authorized shop, Telenor Franchise, Telenor Sales & Service Center or Tameer Microfinance Bank branch. Telenor provides many value added services to the customers: Gprs MMS Smart share Missed call alert Wap portal Call forwarding Wap Easy load SMS International direct dialing Conference calling Caller line identification

Regulatory framework

Pakistan Telecommunications Authority


Pakistan telecommunication authority (PTA) is a Pakistani government agency responsible for regulating telecommunications in Pakistan. The Pakistan Telecommunication Ordinance 1994 established the primary regulatory framework for the telecommunication industry including the establishment of an authority. Thereafter, Telecommunication (Re-Organization) Act no XVII was promulgated in 1996 that aimed to reorganize the telecom sector of Pakistan. Under Telecom Reorganization Act 1996, Pakistan Telecommunication Authority (PTA) was established to regulate the establishment, operation and maintenance of telecommunication systems, and the provision of telecom services. PTA has its headquarters at Islamabad and zonal offices located at Karachi, Lahore,cPeshawar, Quetta, Rawalpindi and Muzaffarabad. PTA's functions include: To regulate the establishment, operation and maintenance of telecommunication systems and provision of telecommunication services in Pakistan. To receive and expeditiously dispose of applications for the use of radio-frequency spectrum. To promote and protect the interests of users of telecommunication services in Pakistan. To promote the availability of a wide range of high quality, efficient, cost effective and competitive telecommunication services throughout Pakistan. To promote rapid modernization of telecommunication systems and telecommunication services. To investigate and adjudicate on complaints and other claims made against licensees arising out of alleged contraventions of the provisions of this Act, the rules made and licenses issued there under and take action accordingly. To make recommendations to the Federal Government on policies with respect to international telecommunications, provision of support for participation in international meetings and agreements to be executed in relation to the routing of international traffic and accounting settlements. To perform such other functions as the Federal Government may assign from time to time.

Responsibilities

Rights of licensees are duly protected; All of its decisions and determinations are made promptly, in an open equitable, non discriminatory, consistent and transparent manner; All applications made to it are disposed of expeditiously; The persons affected by its decisions or determination are given a due notice thereof and provided with an opportunity of being heard; It encourages, except subject to the exclusive right of the company in basic telephone service, fair competition in the telecommunication sector; and The interest of users of telecommunication services are duly safeguarded and protected.

Licensing

PTA, has given number of Mobile, Fixed Line licenses to operators for services in Pakistan. Recently, PTA has completed the framework for 3G Mobile Phone Operations in Pakistan. The 3G mobile licenses will have conditions for rollout obligations under which licensees will have to ensure 3G mobile services in metropolitan cities within 18 months of the grant of License. In this connection, licensees will require to provide performance bond to ensure the 3G mobile rollout obligation.

Securities and Exchange Commission of Pakistan


The Securities and Exchange Commission of Pakistan (SECP) was set up in pursuance of the Securities and Exchange Commission of Pakistan Act, 1997. This Act institutionalized certain policy decisions relating to the constitution and structure, powers, and functions of the SECP, thereby giving it administrative authority and financial independence in carrying out its regulatory and statutory responsibilities. The SECP became operational in January 1999 and has come a long way since then. It was initially concerned with the regulation of corporate sector and capital market. Over time, its mandate has expanded to include supervision and regulation of insurance companies, nonbanking finance companies and private pensions. The SECP has also been entrusted with oversight of various external service providers to the corporate and financial sectors, including chartered accountants, credit rating agencies, corporate secretaries, brokers, surveyors etc. The challenge for the SECP has amplified manifold with its increased mandate.

Competitor analysis
Telenor is facing competition from four network operators operating within the country: Mobilink Ufone warid Zong We will be giving a brief background on each company with its strengths, weaknesses, opportunities and threats.

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 31 million and growing. Mobilink pride itself on being the first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of the-art communication solutions to its customers. 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. To achieve this objective, we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers. Compared to our competitors, 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, we also offer a host of value-added-services to our prized customers. At the same time, Mobilink places high importance to its coverage, which is why it covers10, 000+ cities and towns nationwide as well as over 130 countries on international roaming service. Strengths Market leader Largest network share Strong brands Strong media presence Can charge premium for quality High quality products Opportunities Extensive rural market presence Geared for 3G Presence in international financial market Able to hire cream resources from market New Revenue streams Weaknesses Most exposed to loss of customers Billing issues & hidden charges Internal bureaucracy Threats Industry reaching maturity Higher probability of churn in then industry Customer loyalty low in the industry Price war can hit more

WARID TELECOM
Warid Pakistan launched its services in May 2005. Within 80 days of launch Warid Pakistan claims to have attracted more than 1 million users. According to Pakistan Telecommunication Authority, currently Warid Telecom has 16.19 million subscribers as of December 2010. It is ranked as the fourth largest operator in Pakistan. Warid Pakistan claims it has the largest "postpaid" subscriber base in Pakistan. Products include attraction for both prepaid and postpaid users at reasonable packages. With an ARPU of $ 1.83 , with 4341 cell sites and over 283 franchises. Strengths Price perception Postpaid base Government links/influence Affinity partners (BAL) Owned Backbone Infra Weakeness Dis-organized team Weak distribution structure Limited telecom experienced management Low marketing

Opportunities introducing iphone to attract high end

threats Market reaching maturity

market Synergies with (BAL /Wateen ) Brand revamping

group

companies

Socio/economic indicator PTA regulations HR (FnF)

Ufone
Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile companies in Pakistan and is a subsidiary of Pakistan Telecommunication Company. The company commenced its operations under the brand name of U fone from Islamabad on January 29 2001. U fone expanded its coverage and has added new cities and highways to its coverage network. After the privatization of PTCL, U fone is now owned by Etisalat. PTML is a wholly owned subsidiary of PTCL. Was established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone from Islamabad on January 29 2001. it has 4893 cell sites as reported by PTA and over 362 franchises and annual revenue per user of $2.2/ month

Strengths Ufone has network coverage in more than 750 cities, towns and across all major highways of the country. Ufone provides International Roaming facility with more than 150 international operators across 79 countries. Is on the third position in market share with Ufone has a subscriber base of 18.97 million as of decemeber 2010. Strong marketing

Weaknesses U fone also face problems and its network get jammed on special occasions like Eid, Christmas, New year etc Call rates from u fone to u fone is very cheap but to other networks its rates are expensive. Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is a bit poor.

Opportunities

As in Pakistan Youth is almost the 50% of the population so Ufone can take advantage of this demographic situation and should introduce more and more services and packages that attracts youth towards it. It should also introduce some packages for internet users and mobile phone users who would like to use interent on the phone but hesitate because of high rates on mobile if it do so then many people will switch from other networks towards it. Like telenor, ufone should also introduce mobile banking, and capture the market who want to access money anywhere and anytime.

Threats As U fone is cellular company and there is cut throat competition among cellular companies in Pakistan. There are 4 other companies also working in Pakistan so U fone would have to face some growing competitive pressures. Pakistan is facing some serious economic problems now days so that would also effect U fone. The current recession in market is not good for any kind of business including telecommunication. U fone penetrated in the market from 2005 to 2006 quite rapidly but since then it is experiencing a bit slower growth. By the arrival of China Mobile Company (Zong) in cellular industry of Pakistan the U fone and other companies now have to face the severe competition. As Zong is introducing some various attractive packages of both SMS and calls to attract customers. U fone have to develop strategies to counter their strategy and to survive in the market. Telenor is giving higher rumenration to its employees as compared to U fone so many of its skillful and competent employees are going there. That will affect the companys profitability in the long run.

ZONG
Zong is the first International brand of China Mobile being launched in Pakistan. It is meant to empower and liberate the people of Pakistan in every nook and corner of the country. It will become a part of their hearts, their minds and bring about a change in their lives that every one desired but few thought would be possible. The core essence of ZONG is to allow people to communicate at will, without worrying about tariffs, network coverage, capacity issues or congestion. ZONG will be supported by ground breaking communications, trend setting customer service and an unmatched product offering which will redefine rules of the game and establish. Zong has 4688 cell sites throughout the country

Market Share
In highly competitive sector, market share is termed to be a strong parameter to show degree of competitiveness in the sector. For a long time, Mobilink remained the market leader with a significant difference, both in terms of subscribers and revenues with rest of the operators. Mobilink is the market leader but with new operators settling in and addition of ZONG in the local market has changed the market share structure, though Mobilink still holds highest share. Now subscribers have more choice, better options and attractive facilities like MNP. Thus, the companies are adding new subscribers, but at the same time they are also losing the existing subscribers in favor of other operators. Strengths China mobile financial strength Clear strategy to achieve market share Long term vision for profitability Decent brand China Influence on government Weaknesses Perception of china Cheap Lack of international management experience Time of entry 5th operator issues with distribution structure

In 2010 Mobilink was this year whereas the rest of the operators show increase in their market share. Telenor has the second highest share in the market (22.2%) in terms of subscribers followed by Ufone (21%) and Warid (19%).

Strengths

Telenor Pakistan has attracted over 22.5mn subscribers

Telenor covers a total of coverage area in more than 3000 cities

Financial strength

Global operator

Strong and effective marketing

Maintaining substantial growth in revenue

Employee loyalty (HR)

Brand consistency Excellent coverage and distribution Contract with siemens and nokia Brand image of quality

Weaknesses

non-pakistani top management

Low profit margin due to low rates

Poor signals/ signal droping

Opportunities Geared to challenge No. 1 position Employer of choice The 3g part of the business Offering phone packages to customer. Mobile number portability

Threats Geo/socio/economic/political factors Religious oppositions Irrational behavior of the industry Rolling customers Wireless technology at boom

Porters 5 Forces Model

Human resource analysis


Telenor Pakistan has over 2500 permanent employees and seeks performance from them by implementing work structures that go beyond the usual forms of bureaucracy and multi-layered channels of communication. There is a true sense of equality at the organization, where the CEO, VPs, Directors, Managers, Executives and Officers all share the same work space, the same privileges and an open level of communication that is applicable at all levels. the focus is more on getting work done by breeding a casual environment, where comfort is a prime driver for achieving difficult targets. This is a more of a human approach to managing resources, where their comfort levels are considered as key contributors to their levels of productivity.

Recruitment and selection


An organization always formed with two or more than two people. For this reason hiring of the people from different sources is very necessary and important on its side. Because its (recruitment/selection procedure) performance further leads the organization to success or failure that how they are recruiting people whether it from within the organization or outside the organization. Every organization uses different kind of methods and techniques for hiring the people. In human resource language we can say that, People are most valuable assets for any organization Different methods they are using for hiring their employees are as follows,

Internal recruitments
Internal recruitment stands for the recruitment within the organization, as they are newly established business they do not have any kind of internal recruitment still they are focusing on hiring the people from outside.

External recruitment
External recruitment stands for the recruitment of the employees source/externally. They perform different kind of steps in this category, from other

For the external recruitment first the need for the new employment is created or if it is being demanded by any department. Human resource department first identifies the need of that job, particular its expenses in hiring that employee(s), time required for its training and orientation in Telenor Pakistan. After the approval of the manager of human resource department, different methods they adopt for the external recruitment are as follows: Newspapers Official website

Selection
After a substantial amount of applications have been received, the HR managers again work together to shortlist the applications. This is done by carefully going through all the application and by giving different weightage to the following criteria Quality of early schooling Grade obtained Extra Curricular activities Overseas travel and education Age Target University Relevant experience

The HR Department then issue call letters to the short listed candidates along with blank application forms by Date, time and venue for the preliminary interview is advised and candidates are asked to bring along completed application forms. Panel of HR and line management carries out competency-based interviews focusing on functional skills and managerial and supervisory skills. After the preliminary interview is cleared people applying for different jobs are tested in different ways. The following management competencies are assessed by a panel of cross functional assessors in the case of management selection: Communication skills Resource management Rational decision making Influencing Creative thinking Business development

Training and Development


Training and development involves improving the knowledge, skills and abilities of the individuals. A continuous training is conducted inside telenor to improve the performance of the employee. Telenor believes every individual has a set of qualitys which if polished would create a greater result. Telenor Pakistan is providing training to employees where the company feels there is a gap in performance.

Methods for training:

On job training
Telenor provide the on job training during the duty hours, which is totally about the job instructions

Coaching
Telenor provide the coaching facility to its employees for their training like training in the call center and in other official matters.

Compensation and Benefits


Telenor wants to reward the efforts of qualified employees through bonus schemes, wages, options and shares programmes as well as other forms of benefits. The incentive systems at Telenor are part of the effort to motivate employees to meet Telenor's principal goal of optimising shareholder value. The system has both a short- term and long-term perspective, through introducing annual bonuses as well as share and options programmes. In addition, the incentive systems also contribute by helping to retain and develop the strategic expertise in the Group and attract new expertise. The incentive systems for managers and key personnel at Telenor are based on an overall compensation principle, where wages, bonuses, options and other benefits are comprehensively evaluated. Extra holidays are a benefit of all employees at Telenor. Additional to the stipulated five weeks, employees of Telenor also have Christmas holidays, Eid holidays and two extra days off. Telenor also offers benefits for maternity leave these are additional holidays.

GRAMEEN PHONE BANGLADESH Overview

GrameenPhone is the largest mobile phone company in Bangladesh. In the midst of lack of communication means, it has introduced an effective and user-friendly mobile phone network which has a positive impact on the lifestyle of the people of Bangladesh. Grameenphone was offered a cellular license on November 28, 1996 in Bangladesh by the Ministry of Posts and Telecommunications and it launched its service in March 26, 1997 on the Independence Day of Bangladesh. Grameenphone is now the leading telecommunications service provider in the country with more than 23 million subscribers as of December 2009. Presently, there are about 50 million telephone users in the country, of which, a little over one million are fixed-phone users and the rest mobile phone subscribers. Starting its operations on March 26, 1997, the Independence Day of Bangladesh, Grameenphone has come a long way. It is a joint venture enterprise between Telenor (55.8%), the largest telecommunications service provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom Corporation (34.2% ), a nonprofit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank. The other 10% shares belong to 10% to general retail and institutional investors. Over the years, Grameenphone has always been a pioneer in introducing new products and services in the local market. GP was the first company to introduce GSM technology in Bangladesh when it launched its services in March 1997.

Network
With the initiative of GrameenPhone, mobile phones are spreading rapidly throughout the country. A huge portion of Bangladesh is under GrameenPhone's coverage now. Today, more than one in three telephones in Dhaka and Chittagong are mobiles. GrameenPhone's network is divided into six zones according to the divisional borders: Dhaka Zone, Chittagong Zone, Khulna Zone, Sylhet Zone, Barisal Zone and Rajshahi Zone. Currently GP is operating in all six zones. The zone in which a subscriber is registered with GrameenPhone is that subscriber's Home Zone, and all other zones are Remote Zones.

Products and Services Available for Sales

Pre-Paid

Smile djuice

Post Paid

xplore

Recharge

Flexi-Load Scratch Card

Hardware

Genuine Handsets GPRS and EDGE Modem Accessories ( Charger, Battery etc)

Services

Public Phone Activation

Value Added Services:


International Roaming EDGE Voice Mail Services Text Messages

Bill Payment
You can pay your post paid bill of any amount at any Grameenphone Center

Human Resource
Grameen is a huge organization consisting more than 5000 employees. There are four types of employee: Regular, Contractual, Part Time and Internee. Grameen HR division has to look over all types of employees. HR division can work in several sectors with those employees. Though the major issue is handling such a gigantic pool of employees

where any process can be bewildered where there is not enough internal resource. Sometimes the total process can be injudicious.

Regulatory Authority
Bangladesh Telecommunication Regulatory Commission (BTRC) Bangladesh Telecommunication Regulatory Commission (BTRC) is an independent Commission established under the Bangladesh Telecommunication Act, 2001 (Act no. 18 of 2001) published by the Parliament in the Bangladesh Gazette, extraordinary issue of April 16, 2001. BTRC started functioning from January 31, 2002.

Market Competitors

SWOT Analysis
Strengths Good owner structure Availability of backbone network Market leader Skilled human resource Brand name Financial strength Largest geographical coverage

Weaknesses Different departments not working together Poor interconnection with bttb Not good enough public relations

arrogance

Opportunities Unmet demand Possibility of further network expansion Increasing interconnection with BTTB Favourable Regulatory authority Possibility of interactive products & services

Threats Introduction of BTTB mobile phones Aggressive marketing by competitors Possibility of new entrances using GSM Technology Better relationship of competitors with regulatory body

DIGI Telecom Malaysia

DiGi was first in Malaysia to launch and operate a fully digital cellular network in 1995. In the last five years, DiGis revenue more than doubled to approximately NOK 8.7 billion. DiGi has received a multitude of awards for its innovation and services. Through its corporate initiative, Deep Green, DiGi is committed to a sustainable business that is financially and ecologically responsible to all stakeholders. Telenor holds a 49 per cent ownership interest in DiGi, a public listed company. The headquarters of DiGi are located in Shah Alam.

Licences and Network


DiGi currently holds a licence for operation of a GSM 1800 network across the entire country, and a 3G license was obtained in 2007. Mobile broadband services have now been launched, making DiGi is the first in Malaysia to deploy a 14.4Mbps network. Outside the 3G broadband coverage areas, subscribers will automatically enjoy stable mobile and Internet connections on the widest EDGE network.

Innovation and Services


In a market where subscriber penetration is levelling off and competition is growing, DiGi has managed to continue to grow. Here are some of the reasons:

DiGi is improving sales and services through system automation and empowerment of its staff.DiGi has introduced simple ideas like One Low Flat Rate for anyone on any network anytime and Fu-Yoh!, a tailor-made subscription for young people. Malaysia is also where the Telenor Research & Innovation Centre Asia Pacific, TRICAP, is located. TRICAP has an R&D team and cooperates with companies across the entire Group and with local labs and scientific communities. The rapid development of the mobile communications industry in Malaysia has brought widespread economic benefits to the economy. A study conducted by Deloitte for Telenor in 2007 found that the mobile industry in Malaysia contributed MYR 21.3 billion to the national economy in 2007, representing 3.7 per cent of the total Gross Domestic Product (GDP). It has also created employment for 51,000 Malaysians.Regulatory Authority

Regulatory Authority The Malaysian Communications and Multimedia Commission (MCMC)


The Malaysian Communications and Multimedia Commission (MCMC)or Suruhanjaya Komunikasi dan Multimedia Malaysia (SKMM) is the regulator for the converging communications and multimedia industry in Malaysia. Its main headquarters at Cyberjaya, Selangor. At the time it was created its key role was the regulation of the communications and multimedia industry based on the powers provided for in the Malaysian Communications and Multimedia Commission Act (1998) and the Communications and Multimedia Act (1998). Pursuant to these Acts the role of the Malaysian Communications and Multimedia Commission is to implement and promote the Malaysian Government's national policy objectives for the communications and multimedia sector. The Malaysian Communications and Multimedia Commission is also charged with overseeing the new regulatory framework for the converging industries of telecommunications, broadcasting and on-line activities. Economic regulation, which includes the promotion of competition and prohibition of anticompetitive conduct, as well as the development and enforcement of access codes and standards. It also includes licensing, enforcement of license conditions for network and application providers and ensuring compliance to rules and performance/service quality. Technical regulation, includes efficient frequency spectrum assignment, the development and enforcement of technical codes and standards, and the administration of numbering and electronic addressing. Consumer protection, which emphasises the empowerment of consumers while at the same time ensures adequate protection measures in areas such as dispute resolution, affordability of services and service availability. Social regulation which includes the twin areas of content development as well as content regulation; the latter includes the prohibition of offensive content as well as public education on content-related issues.

Corporate Responsibility
DiGi's philosophy is to drive sustainability into every aspect of our organisation in a responsible manner and this includes extending the benefits of our business to as many as possible. Corporate responsibility is an integral part of the way we operate: Empowerment through access Climate Change Community Engagement

Subscribers
According to 2009 statistics Digi telecommunication Malaysia is the not a huge mobile operating company when it comes to subscribers. The statistics tell us that, Maxis lead the mobile market with 10.5 million subscribers and a 40 per cent market share. Celcom had 7.89 million subscribers, while DiGi Telecommunication had 6.64 million subscribers.

Market Share

Mark etS hare

Digi 25.3% Maxis 41% Celcom30.7% U-Mobile2.9%

Human Resource
The approximate total number of employees working at Digi Telecommunications is 1500 Common Job Titles Engineer 14% Associate 9% Senior Engineer 8% Senior Consultant 7% Median Age 33 years Gender: Male 55% Female 45%

Products
Postpaid Digi Business DG30 Plan Digi I love Savings

Prepaid
Digi Prepaid [So Easy]

Reload
Flex e load Talktime transfer Automatic reload Reload coupons

Value Added Services


Digi Internet Intl Roaming Voice mail service Mobile Lifestyle

Payment
E-billing Auto payment Via Mobile phone

SWOT Analysis:

Strengths
Major international backer (Telenor, with a 61% stake) Rising ARPU and MOU contribute to strong revenue growth, up by 13% y-o-y as of Q208

Weaknesses
Despite good performance over the year, still lags well behind rival operators in a market that is witnessing a slowdown in growth Blended ARPU levels lowest in marketplace Dependence on domestic market at a time of reduced growth in Malaysia, compared to rivals Celcom and Maxis who are building up a strong regional presence growth.

Opportunities
Growing portfolio of non-voice services likely to yield substantial revenues Greater focus on postpaid subscriber growth, yet to break 1mn barrier unlike competitors could be aided by the launch of mobile number portability in Q308 GSM/EDGE network expansion likely to yield marked increase in subscriber numbers in rural areas Launch of mobile TV services could boost mobile data revenues

Threats

Strong competition from market leaders Maxis and Celcom both have launched successful 3G networks High proportion of prepaid users causes some concern as competitive market pressures rise Introduction of mobile number portability could have an impact on subscriber growth temporarily

TELENOR 2007
Total subscribers in 2007 increased by 119% to a number of 14596 users with but the ARPU decreased by 3% in local currency and 10% in NOK compared to last year, this could have been caused by decline in prices. Total revenues in local currency more than doubled mainly due to the increase in subscriptions. EBITDA also improved this year from a negative to positive and an increase of 200% yet there was still an operating loss. The CAPEX which is the capital expenditure increased compared to 2006 by 50.35% showing that situations arise due to which investments had to be made The EBITDA margin (EBITDA/total revenue) in 2007 was 10.9% showing that from the revenue the operating expenses take at least 11% of it.

2008
The number of subscribers in 2008 has increased by 4.792million subscribers while the estimated subscription market share remained stable at 21%. ARPU decreased by 13% in local currency and 27% in NOK as both average usage and prices declined due to increased competition and the general economic slowdown in Pakistan. Total revenues increased by 20% mainly due to a subscription growth of approximately 5 million during 2008, partially offset by lower ARPU.

EBITDA increased by 51% in local currency mainly due to higher revenue growth. The EBITDA margin (EBITDA/total revenues) improved by 7 percentage points compared to the last year. Investments were made in network quality and capacity causing which is a part of the capital expenditure. But compared to 2007 CAPEX decreased by 23%.

2009
The number of subscribers increased by 3.1million during 2008-2009, resulting in an increase in subscription market share to 23%. ARPU in local currency decreased by 3% compared to last year as both average usage and prices declined due to intense competition In local currency, total revenues increased by 17% as a result of a subscription growth of more than 3 million compared to last year, partially offset by lower ARPU. The EBITDA margin improved during the year due to the high revenues by 6.6 % points. Capital expenditure continued to be aligned with current development in subscription base and traffic volumes.

Grameenphone 2007
At the end of 2007, Telenors ownership interest in Grameenphone was 62.0%. The number of subscriptions increased by almost 6 million compared to last year . At the end of the year, Grameenphones estimated market share was 48%. ARPU in local currency decreased by 36% primarily due to decreasing average prices and the reduction in interconnect prices.

Measured in local currency, total revenues increased by 7% mainly due to subscription growth, partially offset by reduction in ARPU. The EBITDA margin decreased due to accruals between the quarters and higher sales and acquisition costs. The net profit margin was 6% in 2007 which decreased as compared to 2006 showing that telenors profit before taxes were low. The return on assets decreased from 27% last to 18% this year showing that profits have decreased.

2008
The number of subscriptions increased by 4.5 million during 2008, increasing the subscription market share to 47%. ARPU in local currency decreased by 11% primarily due to decreased average prices and promotions related to low on-net tariffs and friends and family offers. Measured in local currency, total revenues increased by 17% mainly due to subscription growth, revenue from newly established International Gateway (IGW). The EBITDA margin improved compared to last year and the previous quarter. Adjusted for one-time effects in the fourth quarter, the EBITDA margin increased mainly due to lower acquisition costs as a result of lower subscription growth, partly offset by increased network maintenance expenses. EBITDA margin ratio had a small increase of 0.5% points, showing a very small portion of operating expenses consume revenues. The return on assets yet decreased again to 14%% The net profit margin decreased to 5% in 2008

2009
By 2009 Telenors ownership interest in Grameenphone was 55.8%. The number of subscriptions increased by 2.2 million during the year as a result of successful start-up campaigns. The subscription market share decreased to 44%. ARPU in local currency decreased by 9% or 5% NOK mainly due to reduced interconnect rates.

Total revenues rose by 18% and the EBITDA margin increased compared to last year by almost 20% Capital expenditure increased in the year mainly due to fulfillment of existing contracts for additional network equipment. The net profit margin increased this year to 13%. The return on asset increased to 15% this year

DiGi Telecommunications 2007


DiGis subscription growth increased compared to last was 1.1 million. ARPU measured was 101 NOK per month which was an increase from the previous year by 7% primarily due to higher outgoing traffic. Total revenues reported for DIGI in 2007 was NOK 7430,000,000 which was 17% more than the revenues made last year. This could have been the result of the new customers of DIGI. We can see an increase in the EBIDTA of 22% mainly due to the higher revenue growth this year. EBITDA margin improved by 2% points compared to last year showing that DIGI has been managing its operating cost effectively and trying to control it. Net profit margin ratio is 33% which increased as compared to the last year of 29.7% showing more profit being earned The return on asset was 27.4%

2008
At the end of the 2008 Telenors ownership interest in DiGi was 49.0%. The number of subscriptions in 2008 were 7.06 million and compared to the previous year there as a rise in number of subscribers of 0.65 million.

ARPU in local currency decreased by 5% primarily due to lower average prices driven by high competition and lower subscription fees from new price plans. Total revenues in increased by 9% due to a higher subscription base. EBITDA had a slower growth compared to the last year increase and this year the rise in EBITDA was of 2% this could be due to any price reductions, increased traffic cost as well as higher sales and marketing expenses. The EBITDA margin also decreased this year representing a poor management of the operating cost. Capital expenditure in local currency increased by 24% showing that some investments had been made by DIGI in this time frame. The return on asset decreased this year to 25% The net profit margin was 32% this year a slight decrease compared to the last year, this would have been caused be increase in expenses including maintenance etc.

2009
The number of subscriptions increased by 658,000 during this year. ARPU measured in local currency decreased by 9% compared to last year could have been due to increased price competition causing the reduction of tariffs. Total revenues in increased by 7% in NOK and 1% in local currency due to a higher subscription base. EBITDA this year was NOK 3791,000,000, an increase of 3.4%. Compared to the last years growth of 2% this year was better yet a lot of efforts are needed in order to earn more. Capital expenditures decreased.

Comparing the three countries together Subscribers grameenphone owns the most number of subscribers among the three the companies with over 23 million subscribers, followed by Pakistan with 22.5 million and then DIGI telecommunications Malaysia.

Revenue In the three years the revenue for Pakistan had a slow growth. From 2007-2008 the revenue increased but in 2009 decreased to 1058 million NOK. The same trend was seen in the other countries to but in 2008 Malaysia make the most revenue of 2339 million NOK followed by Bangladesh. In 2009 the most revenue again came from Malaysia. Average revenue per user Pakistan in 2007 had an ARPU of 23 NOK/month, which decreased in the course of time to 19 NOK/month in 2008 and 15 NOK/month in 2009. This was because of the intense competition within this industry. Bangladesh ARPU in 2007 was 24, increased in 2008 to 26, but in 2009 drastically reduced to 20 NOK/month. Out of the three Malaysia is the only country making the highest ARPU , which has also rose in the three years from 99 NOK/month to 110 NOK/month in 2008 but reduced in 2009 to 88NOK/month. Conclusion From this and the later data we can clearly see that Malaysias DiGi is better off compared to the other countries with higher revenues over the years, higher market share and number of subscribers. The ratios that we have taken out also show this as digi has the highest net profit margin , return on asset and EBITDA margin.

ANNEXURES Income statement for Telenor

2007

2008

2009

Income statements for Grameenphone

2007

2008

2009

Income Statement for DIGI Telecommunications

2007

2008

2009

Grameenphone balancesheet 2007 and 2008

Balance sheet of DIGI

]2007

2008

2009 interim balance sheet digi

References
http://www.digi.com.my/ar2008/digi_annual_2008.html http://www.grameenphone.com/assets/annual_reports/pdf/gp_annual_report_07.pdf http://www.digi.com.my/ar2007/http://uk.reuters.com/business/quotes/incomeStatement? stmtType=BAL&perType=INT&symbol=DSOM.KL http://investing.businessweek.com/businessweek/research/stocks/financials/financials.asp? ticker=GRAM:BD&dataset=balanceSheet&period=A&currency=native http://telenor.com/en/about-us/our-brand/vision-and-values/ http://telenor.com/en/about-us/telenor-at-a-glance/ http://telenorgroup.com/ http://en.wikipedia.org/wiki/DiGi_Telecommunications http://telecompk.net/tag/telenor/ http://www.easypaisa.com.pk/ http://telenor.com/en/global-presence/pakistan/index.jsp http://www.pta.gov.pk/index.php?option=com_content&task=view&id=268&Itemid=141 http://www.pta.gov.pk/index.php?option=com_content&task=view&id=648&Itemid=600 http://www.pta.gov.pk/index.php?option=com_content&task=view&id=850&Itemid=625 http://ispak.com.pk/http://ispak.com.pk/Downloads/Pakistan_Telecom_Report_2008.pdf www.telenor.pk http://investing.businessweek.com/businessweek/research/stocks/financials/financials.asp? ticker=GRAM:BD&dataset=balanceSheet&period=A&currency=native http://uk.reuters.com/business/quotes/incomeStatement? stmtType=BAL&perType=INT&symbol=DSOM.KL

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