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04 Important Financial Concept
04 Important Financial Concept
Acknowledgement
At first, we would like to thank Allah Almighty, the Most Beneficent and the
Most Merciful, who enabled us to complete this project report.
Then, we would like to show our gratitude towards our Respected Teacher
Ma’am Anam Maqbool who taught us Promotional Management and gave us
knowledge about its concepts that we applied in this report. We are thankful to
her for her encouragement and support and for giving us this opportunity to
polish ourselves and to explore the practical world.
We are also thankful to our Coordinator Dr. Irfan for allowing us the Visiting
letter. We are much obliged to Mr. Abdul Bais Khan, the “Training &
Development Project Handler” at Telenor who gave us his precious time to
share his knowledge with us. It was a great experience to have his company.
His guidance and a well elaborated discussion made us aware of all the
activities and strategies in which Telenor is engaged and made us realize the
Values on which Telenor Company is based on.
Last but not the least, we would like to thank our friends and class fellows who
shared ideas on different topics and encouraged and supported us throughout
the entire time.
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PROJECT REPORT
History of Telenor
Telenor is the leading telecommunication company in Norway, which is one of the
most advanced telecommunication markets in the world. Norway has one of the
world’s highest penetration rates for mobile, fixed line digital telephony, personal
computer and internet usages. The history of Telenor goes back a long way in
1885, when telegraphic service was established under the name of “Telegrafverket-
a government institution”. The Norwegian Telegrafverket has had several names
throughout the time of existence. In1968, the organization of Televerket has been
changed. The central administration was removed from the Ministry of Post and
Transport and converted into an independent state enterprise with its own board.
The research institute of Televerket, TeleverketForsknings institute (TF) was
established at that time. Previously, Televerket did not conduct any in house R&D
activities. In 1971-77, the regional division of Televerket was reorganized. Before
it consisted of 12 districts and 150 local administrative units, which then had been
turned into a new structure of 7 tele-regions and 27 tele-areas. A new
reorganization took place, when Norwegian National Parliament in 1985 decided
to alter the organization of Televerket. But it was not until 1988, the decision had
been implemented. In reality, Televerkets monopoly has been eradicated through
these reforms and it paved the way for more competition in, amongst others, user
equipment and cable TV. From1989, Televerket was also allowed to compete in
the market for value added services. In 1994, the Parliament again decided to
convert Televerket into a state-owned public limited company. This took place in
November in the same year. In early 1995, Televerket AS changed its name to
Telenor AS, with a new and business oriented organization structure.
Worldwide Coverage
Bangladesh
Denmark
Hungary
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Malaysia
Montenegro
Norway
Pakistan
Russia
Serbia
Sweden
Thailand
Ukraine
Telenor in Pakistan
Telenor Pakistan is 100% owned by the Telenor Group, an international provider
of high quality voice, data, content and communication services in 13 markets
across Europe and Asia. Telenor Group is among the largest mobile operators in
the world with 180 million mobile subscriptions and a workforce of approximately
33,000.
The company acquired the GSM license in 2004 and began commercial operations
on March 15, 2005. So far, it has invested over USD 2.3 billion in the local
economy and has created 2,400 direct and 25,000 plus indirect jobs. It also has a
network of over 200,000 retailers, franchises and sales & service centers, thus
providing means of livelihood to thousands of Pakistanis.
Over Rs. 147 billion in various forms of direct and indirect taxes have been
contributed to the national exchequer by Telenor Pakistan since the beginning of
its operations in 2005. Telenor Pakistan's corporate headquarters are in Islamabad,
with regional offices in Karachi, Lahore, Faisalabad, Multan, Hyderabad and
Peshawar.
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Our Vision & Mission
Our Vision:
We’re here to Help.
We Exist to help our customers get the full benefit of communication services in
their daily lives. The key to achieving this vision is a mindset where every one of
us works together: Making it easy to buy and use our services. Delivering on our
promises. Being respectful of differences. Inspiring people to find new ways.
Our Values:
We believe in our values which are as following:
Make it Easy
Be Inspiring
Be Respectful
Mission Statement:
Telenor is a customer focused business mobile service
operator/telecommunications Company that seeks competitive advantage in quality
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PROJECT REPORT
and valued added service in both prepaid and postpaid categories through state of
the art technology. Telenor relies on building trusting relationships with customers,
owners, employees and society in general.
Awards
Telenor Pakistan has been the recipient of a number of awards from different
bodies. Following is the list of awards that Telenor has acquired.
SAARC Award:
Telenor Pakistan has won the awards for "Most Innovative Mobile Operator" and
"Mobile Operator with the Most Consumer Pull" at the 6th SAARC
Communication Industry Conference 2007 held in Kathmandu, Nepal.
Brand Award:
The 2008 Telenor Brand Award was given to Telenor Pakistan for the second year
in a row.
AURORA Award:
PSHRM Award:
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The Buzz Power Conference & Award Show was held on 25th October 2008 at
Avari Towers, Karachi. The Conference was part of the Buzziest Brand of the Year
Poll, in which Revelation invited advertising, marketing and media professionals to
vote for their favorite brands. The poll aimed to identify those brands that are hot
and have the greatest µbuzz¶ ± that is, those brands, which are so exciting that they
generate consumer word of mouth. Telenor Pakistan won the Buzziest Brand
Award for 2008.
Superbrands Award:
In 2011, it won the Prime Minister of Pakistan Trophy for Largest Foreign Direct
Investment (Telecom Sector) which was awarded by the Lahore Chamber of
Commerce and Industries.
Telenor Pakistan & Tameer Microfinance Bank’s Easypaisa was awarded the
Shaukat Khanum Social Responsibility Award 2011 by Shaukat Khanum
Memorial Cancer Hospital & Research Centre.
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PROJECT REPORT
Lahore Easypaisa has also won the Best Mobile Money Transfer Entrant of the
Year Award at the world’s first Mobile Money Awards in 2011.
In 2012, Easypaisa was declared as the third largest mobile money service in the
world by Consultative Group to Assist the Poor (CGAP), a global partnership of 34
organizations housed in the World Bank whose goal is to advance financial
inclusion.
In previous years, Telenor Pakistan has presented the "Best Place to Work
Award" by Pakistan’s HR associations; and the Best Practices Award, presented
by The Data Warehousing Institute.
Operations
Areas
Telenor covers more than 3,500 cities and towns throughout Pakistan. The
company has over 8,000 3G-ready cell sites throughout the country and offers
GPRS and EDGE nationwide and HSPA+ services in over 300 cities.
Telenor Pakistan’s distribution network has over 200,000 touch points across
Pakistan that include company-owned customer sales and service centers,
franchises, sahulat ghars and retailers that offer GSM products and Easypaisa
services.
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PROJECT REPORT
Fourth Generation LTE
Services
Internet Services
Telenor Pakistan took part in the spectrum auction held on April 23, 2014 and
acquired the license to launch 3G services in Pakistan for USD 147.5 million. With
the ambition of bringing ‘Internet for All’, the company started aggressive rollout
of 3G services across urban and rural areas of Pakistan. Today, Telenor Pakistan is
the fastest growing 3G network in Pakistan and expanded the 3G coverage area to
45 cities by the end of October 2014. Telenor Pakistan currently serves over 1.3
million 3G customers across Pakistan.
Telenor Pakistan provides also wide EDGE connectivity across the country. It has
one of the largest data networks (GPRS) in Pakistan providing Internet services to
customers.
Corporate Responsibility
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areas for Telenor Pakistan are; Disability, Education, Health, Emergency Response
and Employee Volunteerism.
Products:
Telenor is providing eight prepaid packages and four postpaid packages.
Prepaid Packages:
Talkshalk A1
Talkshalk Har Second
Talkshalk Har Minute
Talkshalk 30 Second
Talkshawk 63
Djuice
Djuice Jaagtay Raho
Djuice Din Raat
Postpaid Packages:
Persona EASY
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PROJECT REPORT
Persona SIMPLE
Persona FREE
Persona Karoobar (Aimed at Business owners)
Telenor’s Portfolio
Following are the main business of Telenor.
The Internet
UMTS and Turbo 3G are both relatively new products available in the markets.
The services make it simple, fast and inexpensive for customers to use their mobile
phones or PCs to surf the Internet when they are away from home. 3G brought
valuable access to new fields in densely populated areas with less developed
infrastructure – such as Bangladesh.
TV and Broadcast
At present, the Telenor satellites broadcast around 200 TV channels throughout the
Nordic Region, Central and Eastern Europe. Satellite broadcasting has shaped
events over the last two decades and looks set to continue to have a secure position
in the Nordic countries, Central Europe and the Middle East.
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Miscellaneous Services
The Telenor Group provides a wide range of innovative services that are available
throughout the world. Here is a selection.
Mobile Fun
Following are the mobile fun service of Telenor.
Mobile Sports
And he scores!!! You just got a text message alerting you about as sportive
highlight. Luckily you don’t have to wait until you get home to watch that winning
moment – you can watch it directly on your mobile.
Mobile Music
Right now there are 1 million songs ready to download to your mobile. You can
share these digital rights management-free songs with your friends and family or
transfer them to your mobile phone, mp3 player and PC. Share that funky music!
Mobile TV
Keep your favorite TV shows available in your pocket and watch them anytime,
anywhere. You can easily access live TV channels on the move so you don’t have
to miss out on any of the action. Keep yourself updated on news, sports,
entertainment and more, directly on your own mobile phone.
Mobile Communities
Get out and about, and stay connected and in touch with your friends. With
Telenor you can access communities. Windows Live MSN and Facebook on your
mobile and keep your friends close anytime, anywhere.
Mobile Interaction
Following are mobile interaction services providing by Telenor.
500 Community Information Centers (CICs) offer high speed Internet access to
rural areas in Bangladesh, where the nearest Internet facilities would otherwise be
at least 20-30 miles away. The service was set up by Telenor's Bangladeshi mobile
operator Grameenphone.
Health Line
Health Line provides 24/7 access to medical services for mobile users in remote
areas, several miles from the nearest doctor. All Grameenphone subscribers in
Bangladesh can get medical assistance directly over the phone.
Can you imagine life without a phone – at all? That is the case for many people
living in some of the most rural communities in Pakistan. ApnaPCO is a business-
in-a-box solution, which allows people in remote areas to share a mobile phone
where there are no other alternatives – making life a little easier. Can you imagine
life without a phone – at all? That is the case for many people living in some of the
most rural communities in Pakistan. ApnaPCO is a business-in-a-box solution,
which allows people in remote areas to share a mobile phone where there are no
other alternatives – making life a little easier
TeleDoctors
Are you a Telenor Pakistan subscriber and in need of expert medical advice?
Simply dial 1911 to get in touch with experienced doctors who can help you with
your problems – wherever you are in the country.
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PROJECT REPORT
Available in: Pakistan
Mobile in Flight
By using AeroMobile secure mobile communication technology you can now call
your colleagues, customers, friends and family whilst inflight from your own
mobile phone.
Mobile at Sea
Mobile Marketing
Register your phone number with your favorite shops and services, and receive
sms’s with up to the minute information on the latest events and offers. Don’t get
first in line, avoid the queue altogether!
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PROJECT REPORT
Mobile Commerce
Mobile commerce services of Telenor are as follow:
In areas with limited access to regular banking services and the Internet, people
can use their mobile phones to transfer money – anywhere, anytime. The easy
accessibility of the service will bring new opportunities to DiGi subscribers with
insufficient access to regular banking services.
Using CellBazaar, buyers and sellers in Bangladesh can trade basic goods from
their mobile phones, bringing the benefits of information exchange, community
networking and one-to-many trading to a previously unwired rural population.
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PROJECT REPORT
SWOT Analysis
Strengths
• Network quality & design
• Financial Strength
• PTA initiatives
• E-commerce usage.
Weaknesses
• Relatively low market share
Opportunities
• Favorable Macroeconomic indicators
Threats
•Rolling Customers
•Grey Traffic
• Public pay phones & calling cards usage where network is not available
Strategies
Telenor Group Strategy
The Telenor Group has a strong track record of delivering on ambitious goals. By
2011, we aim to be one of the fastest growing mobile operators in the world, with a
strong broadband position in all markets, successfully developing new services and
adopting new and responsible business models.
The Telenor Group has defined six strategic ambitions which it aims to achieve by
2011.These are:
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5) To ensure best practice benchmarking across the Group
Telenor will undertake benchmarking and best practice sharing across the Group.
A global objective is to achieve a higher reduction in the average operational cost
per minute than the expected decline in average price per minute. The Telenor
Group aims to achieve considerable continued growth in operating cash flow from
all of its operations.
• Broadband outside the Nordic countries. Our long-term ambition is to achieve the
same position in broadband (mobile and fixed) as we have in mobile voice today.
• Partner innovation. The Telenor Group controls many valuable assets that can be
further developed together with partners. Partner-driven innovation is a cost-
effective way to create many new revenue-generating services.
• Climate change. Our number one priority is to reduce CO2 emissions. The
Telenor Group aims to be part of the climate solution by de-carbonizing business
processes and reducing physical travel and transport.
The Telenor Group aims to create a stronger link between the strategy process and
performance monitoring. All operating companies will implement a new and
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PROJECT REPORT
improved management model where strategic objectives and ambitions are
monitored closely at both the company level and the lower department level.
Challenges ahead
The global telecom industry is still growing and generating large profits. Looking
ahead, we expect usage of mobile and fixed voice communications to grow
significantly. Broadband also represents a huge growth opportunity. However,
there are challenging trends, e.g. maturing markets, financial instability, pricing
pressures as well as regulatory issues. Still, well-positioned players will benefit
from market growth and increased efficiency, enabling significant cash flows in
the future.
Marketing Mix
According to Bearden (2001), Strategic planning requires a nice combination of
strategies with products and other corporate resources. It requires the involvement
of fair execution of strategically plan from different functions like marketing,
production, finance, distribution and others. For strategy formulation, there is a
variety of decisions which should be there before its implementation. Where right
entry mode strategy is necessary, there is also a need of appropriate product-market
combination. Then other marketing mix elements should be given importance
because these elements can be the backbone for the business success
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PROJECT REPORT
strategy takes shift from low to high but competitive. Buzzel (1968) argued that
product standardization has different benefits (a) economies of scale, (b) faster
accumulation of learning experience and (c) reduced costs of design modification.
In the regional open market, Telenor is taking the fruit of this by adopting the
product standardization but the situation can be different in other markets. The
company used a multi domestic strategy to gain competitive advantage in its target
markets. A key factor in the strategy is the encouragement of senior managers to be
entrepreneurial in responding to local customer needs, product quality and
customer services. Telenor’s decision to standardize or adapt its products is based
on cost/benefit analysis of what they believe the implications of adaptation and
standardization are for profitability and market share. According to Dole (2000) in
normal circumstances, the cost of adaptation would be expected to be greater than
the cost of successful standardization. Telenor believes in long term advantages
and not in satisfaction of immediate demand, that’s why they continue the
exposure to the standardized products and services which leads them to greater
market share in the longer term.
•Sales growth
•Market position
•Maximization of Profits
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PROJECT REPORT
Easypaisa is Pakistan’s first and largest mobile money service and third largest in
the world, catering to 6 million customers every month. It currently has over
40,000 agents in 750 cities and towns across Pakistan.
By the end of 2012, it had processed more than 100 million transactions with a
throughput of more than US$ 1.4 billion. Easypaisa was identified as a 2012
GSMA Mobile Money Sprinter — one of the 14 most successful mobile money
services.
Telenor Pakistan and Tameer Bank introduced over-the counter (OTC) mobile
money services – an entirely new model that did not require registration for an
electronic wallet. Easypaisa achieved rapid national expansion by relying
exclusively on its existing GSM distribution structure. With a population of 180
million and only 15% bank penetration in 2008, Pakistan presented an attractive
market opportunity for mobile money. Easypaisa seized this opportunity by
creating an innovative partnership, a new delivery approach and an effective
distribution model. However, these innovations cannot stop here. OTC has become
the de facto model for mobile money in Pakistan, but it has significant constraints.
Without a stored value account, there are limitations to the product offering,
reduced profits for the service providers, and an inability to build a robust financial
digital ecosystem. Mobile money providers in Pakistan should focus their efforts
on driving adoption of the mobile account by expanding registration locations,
extending the product offering, raising awareness and educating consumers about
the benefits of a mobile account.
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PROJECT REPORT
Major Competitors
Telenor from Norway is the 2nd provider in Pakistan almost on par with
Mobilink's 29% of the users. While its 2G network is not so widespread in the
countryside as Mobilink's, Telenor is faster in building up a 3G network. In 2016,
they cover more than 250 towns in HSPA speed and are adding more places. They
have the most 3G customers in the country right now, but they are still limited to
towns.
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PROJECT REPORT
Now its Competitors Include;
1) Mobilink
2) Zong
Zong in Pakistan is owned by China Mobile. It has become the 3rd network now
with 19% of the users. It has a limited network on 3G so far in many towns but
started in 2014 with 4G/LTE on 1800 MHz in the centers of 7 major cities,
extended to 100 cities in 2016 giving it the widest footprint and most 4G customers
in the country. By the end of 2016 another 1000 4G sites will be added to the
existing 5000.
3) Ufone
Ufone by Pak Telecom Mobile Ltd. (PTML) is the 4rd operator in the country with
a 15% share. It started with 3G in 2014 as well and covers around 60 cities in 2016
so far.
4) Warid
Warid by is the smallest operator in Pakistan with a market share of 8%. It's
4G/LTE has started on 1800 MHz in 5 major cities so far: Lahore, Karachi,
Faisalabad, Islamabad/Rawalpindi and Gujranwala. It doesn't have a 3G coverage
at all. So it's not recommended for data, except in their limited 4G/LTE network.
In 2015 Waird announced a merger with Mobilink and will incorporate their
network under a single brand in 2016/7 giving its few customers then access to 3G
as well. It's likely that the brand will disappear.
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Conclusion
Telenor is the leading telecommunication company, which are the most advanced
telecommunication markets in the world. The Telenor Group is committed to
engage in the local communities where it operates. In Pakistan Telenor launched its
operations in March 2005 as the single largest direct European investment in
Pakistan. The company has crossed many milestones and grown in a number of
directions, making Telenor Pakistan a leading telecom operator of the country.
They are providing a service in almost 2500 cites of Pakistan and it is most
growing telecom industry in this country. In short it starts its business when there
is a very high competition in market and take very little time to grow in the market
and now it has almost 20% market share in Pakistan and standing at second place
along with Ufone who also has 20%. They are now providing different services to
its customers at a high quality which helps them to progress rapidly in country and
in features their objectives shows that in next few years the will become the market
leaders in Pakistan.
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