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Nelum Shehzade BBA 2004-2008 Internship Report

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Page 1: Telenor Internship Report

Nelum ShehzadeBBA 2004-2008

Internship Report

Page 2: Telenor Internship Report

ACKNOWLEDGEMENT

All the praise is for Allah, the most merciful and beneficent, who

blessed me with the knowledge, gave me the courage and allowed

me to accomplish this task. I am especially indebted to all my

teachers for instilling in me enough knowledge to be able to carry

myself efficiently during my internship.

Secondly, I am bound to thank all the staff of Telenor. In particular I

am grateful to Ms.Irem Jaffery (Customer Relations Manager), Mr.

Arif Noori (Executive Sales and Distribution), Mr. Malik Asad

(Manager Finance), Mr. Arshad Noori (Sales Supervisor), and all

KTOs ,their inspiring guidance, remarkable suggestions, constant

encouragement, keen interest, constructive criticism and friendly

discussion helped me to learn and enabled me to complete this

report efficiently.

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DEDICATION

I dedicate this report to my parents and friends in recognition of

their worth and to my teachers who are the guiding force for me and

it is their effort and hard work that showed me the path of success

and prosperity which would be there for me for the rest of my life.

“Keep your dreams alive. Understand to achieve anything requires

faith and belief in yourself, vision, hard work, determination, and

dedication. Remember all things are possible for those who

believe.” - Merlin Olsen

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TABLE OF CONTENTS

EXECUTIVE SUMMARY................................................................................................................................1

1. INTRODUCTION........................................................................................................................................2

1.1 CENTRAL BACKGROUND INFORMATION..............................................................................................21.2 COMPANY BACKGROUND.....................................................................................................................51.3 TELENOR IN PAKISTAN.............................................................................................................................8

a) Vision and Values..............................................................................................................................8b) Largest direct European investment in Pakistan..................................................................9c) Highest (ARPU) in the market......................................................................................................9d) Fastest growing mobile network...............................................................................................10e) Infrastructure expansion..............................................................................................................10f) Employment opportunities...........................................................................................................10g) Social and corporate responsibility..........................................................................................10h) Achievements...................................................................................................................................11i) Future Projects..................................................................................................................................12

2. COMPANY ANALYSIS..........................................................................................................................13

2.1 OPERATION ANALYSIS.......................................................................................................................132.2 FINANCIAL ANALYSIS..........................................................................................................................162.3 HUMAN RESOURCE ASSESSMENT.....................................................................................................172.4 MARKETING ANALYSIS.......................................................................................................................19

3. ENVIRONMENTAL ANALYSIS.......................................................................................................22

3.1. INDUSTRY AND MARKET ANALYSIS...................................................................................................223.1.1. Major product lines...............................................................................................................223.1.2. Market Segmentation..........................................................................................................233.1.3. Growth Rate for Entire Industry......................................................................................25

3.2. COMPETITOR ANALYSIS........................................................................................................................273.2.1. Major Competitors...............................................................................................................273.2.2. Market share of Competitors.........................................................................................283.2.3. Competitors Goals.............................................................................................................293.2.4. Competitors Strategies....................................................................................................29

3.3. TECHNOLOGY ANALYSIS....................................................................................................................303.3.1. Technical methods affecting industry........................................................................303.3.2. Innovation.............................................................................................................................30

4. DEPARTMENT WORKED DURING INTERNSHIP.................................................................34

5. IDENTIFICATION OF A MAIN PROBLEM.................................................................................40

6. FINDINGS................................................................................................................................................42

6. CONCLUSION AND RECOMMENDATIONS.............................................................................43

7. Appendix................................................................................................................................................44

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Executive Summary

Internship was my first step in practical life, through which I learnt a

lot and it has aided me in being well equipped with valuable

experience that would help me once I enter the professional life

after the completion of my studies.

During the month of July and August 2007, I worked in Telenor as an

internee.

My association with this company was being a part of the Customers

Services Department. It was a great experience for me and it helped

me in realizing where my potential lies. What I learnt at Telenor over

the weeks was how to get along with the people that I have to work

with everyday, building relationships with people, building

confidence and improving my communication skills. This internship

has also prepared me for my future career in sales and marketing.

The experience has taught me responsibility, teamwork and how to

handle people in tough social situations. Even though the nature of

work was quite basic as an internee, nevertheless I got to see what

practical life is. This internship overall has been a great experience.

This report gives a profile of Telenor and an insight to analysis of

Telenor in terms of operations, finance, human resource and

marketing. Report also covers environmental analysis of industry ,

market and technologies .This report also reflects my learning and

experiences at Telenor along with my responsibilities and the tasks

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that I performed. Last part of the report consists of some

recommendations and suggestions that I have given.

1. Introduction

1.1 Central background information

a) What is Telecommunication?

Telecommunication is derived from Greek word “Tele” which means

over a distance, “Communicara” which means the ability to share.

Telecommunication literally means “the sharing of information over

a distance”. Telecommunication affects how and where you do

everything lives, work, play, socialize, entertain, serve, study, teach,

rest, heal and protect.

The process of transmitting or receiving information over a distance

by any electrical or electro – magnetic medium. Information may

take the form of voice, video or data.

b) Telecommunication in Pakistan

Pakistan Telecommunication Authority (PTA): -

Pakistan Telecommunication Authority being regulatory body is

promoting the telecom sector since 1997. The Authority is

responsible for regulating the establishment, operation and

maintenance of telecommunication system and provision of telecom

services in the country.

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It promotes and protects the interest of end users of

telecommunication services. Pakistan under World Trade

Organization (WTO) commitment is now ready to deregulate the

whole of telecom sector. Deregulation policy is in final stages and

will be announced shortly.

In the year 2002 – 03, the PTA has stepped forward to encourage

the telecom operators and transfer of technology in Pakistan.

In this regard, royalty of Internet Service Provider (ISP) has been

reduced from 4 to 0.66 percent of the annual gross revenue. For

card payphone service and cellular mobile service, it was reduced

from 4 to 2 percent respectively of grass revenue in the year 2001.

Similarly with the launching of prepaid connections by cellular

companies, the numbers of mobile phones subscribers have

reached to 2.5 million up to June 2002, showing a growth of 105.8

percent.

The introduction of new services in terms of technology

advancement in the sector includes broadband Internet services,

General Packet Radio Services (GPRS) facility, and internet

connectivity on mobile phone. The PTA has issued 1,278 radio –

based licenses and granted permission to install 291 Spread

Spectrum Radio Lines.

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For the value added services, Pakistan Telecommunication Authority

has issued total 431 licenses including 177 licenses for card

payphone services and 121 for electronic information service.

For voice and data network services, 24 and satellite 8, trunk radio

services 12, store and forward fax service 9, video conference 1 and

25 data communication network services license were issued up –

till June 2003.

Telenor acquired the license for providing GSM services in Pakistan

in April 2004,

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 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

telecom.

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1.2 Company background

a) History of Telenor group

For over 150 years, telecommunications has played a vital part in

the development of modern Norwegian society. As the incumbent

provider, Telenor has been the driving force in the development of a

highly sophisticated home market and is now one of the largest

mobile operators worldwide.

b) The introduction of the telephone

The years of 1855 to 1920 was a pioneering period in the history of

Norwegian telecommunications. During two generations, the

Norwegian society experienced the introduction of three new means

of communications: the telegraph in the years of 1850, the

telephone around 1880 and wireless telegraphy – radiotelegraphy –

at the turn of the century. The spread and use of telecommunication

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was modest compared to later periods, but as entirely new features

they received a fair amount of attention.

c) Pioneer in mobile communications

Telenor is a pioneer in mobile communications. Manual mobile

telephony services were introduced in Norway in 1966, as a

forerunner to the automatic NMT system, which appeared in 1981.

Its digital successor, GSM, was introduced in 1993, and third

generation mobile network, UMTS, was launched for commercial use

in 2004.

d) Norwegian telecom becomes a public corporation

In 1994, Norwegian Telecom was established as a public

corporation. One year later, it changed its name to Telenor. In

December 2000, Telenor was partly privatised and listed on the

stock exchange.

e) International expansion

Telenor has undergone momentous change as a group – from being

a strong, national operator with significant international holdings to

be coming an international, world-class provider of mobile

communications services.

Telenor is organized into three business areas; Mobile operations

covering 12 countries, and Fixed-line and Broadcast services

covering the Nordic region.

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f) The Telenor Group 2007 More than 143 million mobile subscribers worldwide .

Strong subscription growth, particularly in Asian

operations.

Ranked as the world seventh largest mobile operator.

Revenues 2007: NOK 92,5 billion

Workforce 2007: 35 800 man-years

Listed on the Oslo Stock Exchange and head quarter in

Norway

g) Global opportunities

Telenor is one of the largest mobile operators worldwide with

ownership interests in 12 mobile operators across Europe and Asia,

and as a consequence a whole world of job-opportunities is opening

up.

Mobile operators and the markets in which Telenor operate are as

follows:

Sonofon, Denmark

Telenor, Norway

Telenor Sweden

Kyivstar, Ukraine

Pannon, Hungary

Promonte, Montenegro

Telenor Serbia

VimpelCom, Russia

Telenor Pakistan

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DiGi, Malaysia

DTAC, Thailand

Grameenphone, Bangladesh

1.3 Telenor in Pakistan

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. Market

share of Telenor is 21% currently.

a) Vision and Values

Telenor Vision

Telenor vision is simple: We're here to help

We exist to help our customers get the full benefit of

communications services in their daily lives.

The key to achieving this vision is a mindset where every one of us

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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.

Core values of Telenor

Make it Easy

We're practical. We don't complicate things. Everything we produce

should be easy to understand and use. Because we never forget

we're trying to make customers' lives easier.

Keep Promises

Everything we set out to do should work, or if it doesn't, we're here

to help. We're about delivery, not over promising, actions not words.

Be Inspiring

We are creative. We strive to bring energy to the things we do.

Everything we produce should look good, modern and fresh. We are

passionate about our business and customers.

Be Respectful

We acknowledge and respect local cultures. We do not impose one

formula worldwide. We want to be a part of local communities

wherever we operate. We believe loyalty has to be earned.

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b) Largest direct European investment in Pakistan

Telenor as the single largest direct European investment in Pakistan,

is setting precedence for further foreign investments in the telecom

sector. The company has covered several milestones over the past

twenty eight months and grown in a number of directions, Telenor

has grown to become a leading telecom operator in the country. In

fiscal year 2006, it achieved nearly 200% growth in their subscriber

base – the highest in the industry by a wide margin.

c) Highest (ARPU) in the market

Since its launch of services in March 2005, Telenor Pakistan has

exceeded all expectations: It has created the second largest mobile

network and the largest and most advanced data network in the

local market, turned into the second highest revenue-generating

mobile player with the highest Average Revenue Per User (ARPU) in

the market, and become the second largest mobile player in the

market with 18 million active subscriptions in little more than 3

years of operations. During the first half of 2008, Telenor Pakistan

added 3.24 million subscriptions against the industry average of

1.63 million, taking 33% of the market share of net additions over

the period – the highest in the mobile sector in Pakistan.

d) Fastest growing mobile network

Telenor is the fastest growing mobile network in the country, with

coverage reaching deep into many of the remotest areas of

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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.

e) Infrastructure expansion

Telenor is keeping ahead by investing heavily in infrastructure

expansion. With USD1 billion already invested, Telenor has

extended agreements with their vendors for network expansion and

services until 2009. The agreements, with a potential to result in

USD750 million worth of orders from Telenor Pakistan, are some of

the biggest of their kind in the industry.

f) Employment opportunities

The company has created 2500 direct and more than 25000 indirect

employment opportunities with 100,000+ retail outlets and 200+

franchises in addition. 99.9% of these employment opportunities

belong to Pakistanis.

g) Social and corporate responsibility

Initiated with a relief effort worth 95 million rupees in the wake of

the devastating earthquake of October 2005, Telenor Pakistan’s

community contributions have extended over the years to include

education, empowerment, enterprise, and environment - with

special focus on bringing the telecom promise within the grasp of

the most disadvantaged sections of the society.

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In Pakistan the company came out with the first-ever Corporate

Responsibility report in the mobile industry last year, setting new

standards of transparency and responsibility. Telenor Pakistan is

well-recognized by the development sector in Pakistan for the

amount of Foreign Direct Investment it has brought to the country.

h) Achievements

Telenor Pakistan has received several awards for its solid

performance in key areas of activities:

Federation of Pakistan Chambers of Commerce &

Industry’s Telecom Excellence Award in Foreign Direct Investment

in June 2006

SAARC Communication Industry Conference 2007’s Most

Innovative Mobile Operator Award and Mobile Operator with the

Most Consumer Pull Award

All Pakistan Dawn Aurora Advertising Awards in three of five

nominated categories in March 2007

The National Forum for Environment & Health’s Annual

Environment Excellence Awards 2008

Lahore Chamber of Commerce & Industries’ Appreciation Award

for the Largest FDI and Rawalpindi Chamber of Commerce &

Industries’ Achievement Award 2008

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The Helpline Trust’s 2nd Corporate Social Responsibility Award

2008

i) Future Projects

Telenor Pakistan is committed to bringing true mobile innovation to

the under-served masses of Pakistan. The company has picked up

two Universal Service Fund projects in order to provide connectivity

to the yet unconnected in the remotest areas of Pakistan. It aims to

invest strongly for further network expansion into the rural areas

and for the rollout of third generation of mobile technology (3G) in

Pakistan.

2. Company Analysis

2.1 Operation analysis

In April 2004 Norwegian mobile telecoms operator, Telenor, bid for

and ultimately won a license to operate a cellular network in

Pakistan. The winning bid of $291 million secured one of two new

nationwide licenses in Pakistan for mobile operation. Telenor has

secured a 15-year license, which is renewable upon application for

the same fee; only 50% of the license fee is payable in the first year,

and the balance over the next ten years. Additional fees for Telenor

include 2.5% of the annual gross revenue. The license covers the

operation of Global System for Mobile Communications (GSM),

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General Packet Radio Service (GPRS) and Enhanced Data Rates for

Global Evolution (EDGE) technology for the network.

Pakistan has the sixth largest population in the world -

approximately 150 million. There are currently four mobile operators

in the country. Mobile penetration at the end of 2003 was just 2.3%

with a subscriber base of 3.4 million, while fixed line penetration

was approximately 2.4%. Many geographic areas in Pakistan are

without telephone coverage. To accompany recent positive

economic development in Pakistan and the inherently low mobile

penetration, high growth within the mobile segment is expected.

Telenor's previous activities in Asia have focused on the

development of mobile networks from scratch, and so the current

activity is a continuation of their previous successful strategy.

Telenor has formed a subsidiary company to operate the business in

Pakistan called Telenor Pakistan Pvt Ltd. Latest reports have

estimated the amount of investment in Pakistan mobile

infrastructure by Telenor to amount to $1 billion.

a) Mobile Infrastructure Contractors

Nokia supply the GSM Base Station Subsystem (BSS) solution, GPRS

core system and Network Switching Solution (NSS) DX 200i series,

which is easily upgradeable to 3G Wideband Code-Division Multiple

Access (WCDMA) technology in the future. In addition, Nokia also

provide turnkey implementation of the network including project

management, network planning and design, site acquisition, civil

engineering and supply and installation of hardware and software.

They also provide software maintenance, emergency support,

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hardware services and maintenance and training for Telenor

Pakistan personnel.

Siemens provide turnkey implementation of the new network

including supply and installation of all the infrastructure components

for setting up a GSM / GPRS / EDGE network. These include

switching technology, mobile transmission and receiving stations,

intelligent networks and GPRS hardware and software. Siemens

carry out network design, site acquisition, civil engineering and

project management. They also provide the initial operations

support service for the network and provide training in software

support and maintenance to Telenor Pakistan Personnel.

b) Licenses and network

Telenor Pakistan currently holds nationwide GSM 900/1800 licenses.

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) license 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.

c) Management of Telenor

The top management of Telenor comprise of versatile and highly

educated people to cater the need of company. Under the

supervision of top management, employees are highly motivated

and perform sophisticated and day to day operations.

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The top management includes:

Jon Eddy Abdullah, Chief Executive OfficerIrfan Wahab Khan, Executive Vice President Corporate Affairs & CEO LDILars Christian, Chief Marketing OfficerPeter Dindial, Chief Technical Officer / Vice President Technical DivisionKhalid Shehzad, Chief Information Officer / Vice President IT DivisionPeter Kuncewicz, Chief Finance Officer / Vice President Finance DivisionNayab Baig, Vice President Human Capital DivisionRonny B. Naevdal, Vice President Strategy

A brief introduction of these effective brains is given in annexure.

2.2 Financial analysis

Telenor brings with it the initial investment of 2 Billion in Pakistan. In

Pakistan Telenor is very much successful and continuously

expanding its network infrastructure. Financial conditions of the

company are very stable.

Telenor Pakistan has announced excellent financial results for Q4

2007, with 2 million subscriptions added to its base within the 3-

month period.

Most financial indicators of Telenor Pakistan are good: Revenues

have soared, subscriber share is steadily increasing. The EBITDA

(earnings before interest, tax, depreciation and amortization) is

positive for the first time, though the EBITDA margin is only 7%.

Another thing which needs to be noted that Telenor’s operating

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losses have reduced in 2007. The company also grew its revenue by

18% in local currency from Q3 2007 and improved its EBITDA

margin by 17% from Q3 2007.

The average revenue per user (ARPU) has stabilized around Rs 280

per month for Pakistan - its low but that’s the reality of the market.

2.3 Human resource assessment

The company has created 2500 direct and more than 25000 indirect

employment opportunities with 100,000+ retail outlets and 200+

franchises in addition. 99.9% of these employment opportunities

belong to Pakistanis.

Telenor offers exciting and challenging careers with competitive

pay, excellent benefits and exceptional advancement opportunities.

Telenor care about its employees and provide them with a relaxed

and enriching working environment. Telenor training and further

education programs ensure a high professional standard amongst

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its employees. Telenor believe that a talented and loyal workforce

plays a crucial role in the organization’s ongoing business success.

Equal opportunities for all

Telenor maintains a policy of non-discrimination towards all

employees and applicants for employment. All aspects of

employment with Telenor are governed by merit, competence,

suitability and qualifications, and are not be influenced in any

manner by gender, age, race, color, religion, national origin or

disability. Today, Telenor workforce proves that; with 18% women

working at all levels in the organization, both foreign and local

educational backgrounds.

Focus on management development

Telenor's management and organization is imbued with joint values.

The Group Management has devised five leadership requirements

that apply to all managers in the Group, and all management groups

shall discuss what these requirements mean to them. The demands

are:

--Passion for business

--Change and constant renewal

--Operational excellence

--Empower people

--Integrity

All managers are subject to annual evaluations based on these

management criteria.

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HC at Telenor Pakistan

Human Capital Division at Telenor believes in continuous

improvement and is taking the standards of service to the utmost

levels of excellence.

From providing the best administrative support to facilitate

employees work life to creating benchmark security solutions,

Telenor is a team of enthusiastic, energetic young people who are

geared to perform the best always.

Telenor managed to create a culture of passion for business,

operational excellence and constant renewal and committed to

assisting employees in exploring, developing and maximizing their

full potential, encouraging continuing education through internal

and external training and development opportunities.

2.4 Marketing Analysis

The marketing mix is the set of controllable, tactical marketing tools

that Telenor blends to produce the response it wants in the target

market. The many possibilities can be collected into four groups of

variables known as the “four Ps”: product, price, place, and

promotion.

PRODUCT OR SERVICES

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Telenor is offering mobile services having many more value added

features with it because of its EDGE/GPRS technology. It offers voice

conversation along with SMS, MMS, GPRS, WAP and video

conferencing. All services are based upon high quality and

considerable charges. Brand image is created out of the product or

services provided.

PRICE

price of each and every service of Telenor related to both prepaid

and postpaid are comparatively competitive.

Telenor is continuously coming up with new price offers and

packages to cater its different segments.

PLACE

Telenor believes on extensive distribution . Therefore it has

launched its services all over Pakistan covering all major cities,

highways and far flung untapped areas.

Telenor has partnered with oil marketing companies such as PSO,

Caltex and Total Parco to make Telenor Prepaid products & services

available at convenience stores located at their petrol stations.

Telenor is also operating Telenor branded shops located in large

retail outlets which sell Telenor Prepaid products & Services

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source: www.telenor.com.pk

Distribution is a competitive advantage for Telenor with that comes:

High level of retail penetration –maximize sales

Reinforce brand image & positioning

Low distribution cost

High channel loyalty through fair profitability for channels

PROMOTION

Telenor is spending large budget on promotion campaign.

Promotion mix includes the usage of all the tools like:

Personal selling

Public relations

Sales promotion

Advertisement (print,electronic,direct marketing and out of

home advertising)

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Before it’s starting of services commercial ads were aired through

electronic and paper media. Initially their ads gave the people an

opportunity to understand the company’s profile. Then after

launching it started its mega advertisement campaign.

There are different types of banners and billboards all across the

country on important public places. Telenor is distributing

pamphlets through service stations and big super stores.

Also there is big and comprehensive website of Telenor of Pakistan.

This website contains all relevant material which a customer wants

to understand .

Telenor uses every media to promote its product and value added

services.

3. Environmental Analysis

3.1. Industry and Market Analysis

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3.1.1. Major product lines

Telenor group has major product lines including, mobile telephony,

fixed line, broadband TV networks. But currently in Pakistan

Telenor’s only product is mobile telephony.

The two product lines according to product segments are:

Prepaid packages (for women, youngsters, children )

----Talkshawk

----Djuice

Post paid package (for corporate clients)

----Persona

Details of these product lines in given in annexure.

Hastily entering into the market Telenor focused on the following

differentiation strategy for its prepaid and post paid products:

Superior quality service

No time limit for incoming calls

Easy load (recharge up to rupees 10 and from any place)

3.1.2. Market Segmentation

A segment is a group of people with similar wants which a company

sees as a potential differentiated lot.

Telenor has focused on effective segmentation for its marketing

efforts. It implied two types of segmentation techniques i.e.

demographic segmentation and geographic segmentation. Telenor

is currently focusing on all three strata of the society, i.e. upper,

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middle and lower. It offers the rates of services as low as a

consumer imagines that it should be.

Demographic segmentation

Telenor is trying to attract the customers of all age, income, and

occupations etc.

It offers value added services such as WAP, ring tone downloads etc.

to attract the youngsters. Further, it offers no maximum time limits

for recharging which is attractive for lower income group people.

Concept of easy load was very first time being introduced in

Pakistan to cater lower income strata and students.

Behavioral segmentation

Telenor has also adopted a behavioral segmentation strategy. In

Pakistan buyer has sufficient knowledge of services that the mobile

companies are offering in a market. Due to this factor, they can

easily compare the price and value of services of any company. That

is why Telenor has shown to everyone through different means of

media of all of its facts and figures of portfolio.

People of Pakistan have an attitude towards low cost and good

quality. Observing that factor Telenor is trying to give the services

more than good.

Telenor is catering entire population. The basis target market

segments are as follows:

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Market dominated by low-end, low-ARPU customers

(largely untapped)

Relatively large emerging middle class segment (Basic in

Telenor Terminology)

Strong youth culture with needs similar to other markets

Private postpaid almost non-existent

Small but profitable (high ARPU) Corporate/SME segment

Women a largely untapped segment

Addressing the Segments

Telenor Group’s segmentation model has been adopted

and adapted to cover the Pakistani market.

Extensive Market research has been conducted and is

updated on a regular basis

Initial offerings targeted

–primarily at Basic Consumers (Middle ground, prepaid)

–secondarily at low end users

–third at Corporate/SME customers

Going forward, the offerings, distribution and

communication will broaden and ultimately target all

relevant segments.

3.1.3. Growth Rate for Entire Industry

Telecom industry is booming throughout the country as two million mobile subscribers are added every month throughout the last year.

Previous year the sector grew by 80 percent while average growth rate in last four years has been more than 100 percent.

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Network coverage of almost 90 percent of the total population of Pakistan has made the industry even more attractive for foreign investment. Industry analysts said that there is still a great margin of growth in this industry, in 2003-04 the sector was offering 466,068 direct and indirect employments and now in 2006-07 it is more than double at 1,366,698 employment opportunities. An intense competition is seen in the telecom sector and all the companies are trying to take edge on each other, which is helping the subscribers as they are getting advanced and new packages at low prices. Here is a table depicting cellular subscribers in Pakistan.

CELLULAR SUBSCRIBERS

  Mobilink Ufone Zong Instsphone Telenor Warid TotalGrowth

Rate

2000 114,272   80,221 112,000     306,493 15.39

2001 309,272 116,711 96,623 220,000     742,606 142.29

2002 800,000 350,000 218,536 330,000     1,698,536 128.73

2003 1,115,000 550,000 319,400 420,000     2,404,400 41.56

2004 3,215,989 801,160 470,021 535,738     5,022,908 108.90

2005 7,469,085 2,579,103 924,486 454,147 835,727 508,655 12,771,203 154.26

2006 17,205,555 7,487,005 1,040,503 336,696 3,573,660 4,863,138 34,506,557 170.2

2007 26,466,451 14,014,044 1,024,563 333,081 10,701,332 10,620,386 63,159,857 80.70

2008 32,032,363 18,100,440 3,950,758351,135*

18,125,189 15,489,858 88,019,812 39.4

July-2008 32,056,336 18,368,074 4,446,024351,135

18,329,428 15,774,299 89,325,296  

* Revised

Note: Including AJK & NAs 

SCO Cellular Mobile Subscribers in AJ&K and NAs for Mar-08 are 172,531

Source: PTA 2008

According to the Pakistan Telecommunication Authority (PTA) Industry Analysis Report 2007, out of 376 tehsils across Pakistan, almost 77 percent are covered with mobile networks, bringing the figure to 290.

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In 2004 there were less than 2000 cell sites installed by all mobile operators for provision of mobile services. Today total cell sites of all mobile operators are more than 17,500.

The factors affecting favourable growth rate for telecom industry in

Pakistan are:

High growth potential

Forward looking telecom policy

Investment friendly climate

Good regulatory execution

Acceptable political and economic situation

All these factors lead to growth of telecom industry in Pakistan. The

mobile density has been increased drastically. The table shows the

data of cellular mobile density and growth rate of industry.

3.2. Competitor Analysis

CELLULAR MOBILE DENSITY

Year Mobile Density

2000 0.22

2001 0.52

2002 1.16

2003 1.61

2004 3.29

2005 8.30

2006 22.21

2007 39.94

2008 54.70

July-2008 55.62

* Revised

Note: Including AJK & NAs

Source : PTA 2008

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3.2.1. Major Competitors

Today, Telenor faces the competition as follows:

Direct:

Mobilink

Ufone

Warid

Zong

Indirect

PTCL

Calling card providers

Wateen Telecom

Worldcall wireless

PTCL wireless

Go CDMA

Smaller WLL operators

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3.2.2. Market share of Competitors

source: PTA may,2008

Mobilink

Mobilink’s share of market is down to 37percent. Mobilink is the

winner in the race to capture the lion's share of the mobile network

market, is Mobilink, with a notably higher volume of subscriptions

and a carefully targeted value-added services.

Ufone

The second largest operator in Pakistan is the Pakistan Telecom

operated U-fone, which had 16.16 million customers at the end of

2007. In terms of market share, it gained 22percent

Warid

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Warid currently holds almost 17.29 percent market share in

Pakistani cellular industry, with 14.76 million customers as of April

2008.

Zong

China Mobile has injected more than $800 million into Pakistan’s

telecom sector after a landmark takeover of Paktel’s operations late

February 2007. Zong has been growing at a brisk pace, it has

captured a market of 4% in first few months of its launch with 5

million subscribers.

3.2.3. Competitors Goals

The collective goal of all the competitors of Telenor is to:

Increase their market share by increased subscriber base.

Increase network reliability and premium connectivity.

Excellence in customer service

Customer retention.

Brand building.

Seamless migration to the 3G technology.

Ensure low cost operations

3.2.4. Competitors Strategies

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The competitor’s strategies to compete in market and attain their

goals are as follows:

Accuracy in billing

Extensive coverage.

Competitive pricing.

New products for more market segments.

Marketing initiatives.

Expansion of high quality value added services.

Strengthened GPRS/EDGE network.

Use of a more contemporary style to give a more

approachable image

Leveraging group knowledge building

3.3. Technology Analysis

3.3.1. Technical methods affecting industry

The current technical methods affecting the telecom and cellular

industry are as follows:

3G technology

EDGE/GPRS

Mobile broadband

3.3.2. Innovation

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One of the competitive edge of Telenor is its innovation. Telenor

has work on the different innovative ideas for improving its services

and brand image in Pakistan. Following are some of the innovative

steps Telenor took:

Easy load

With entry into Pakistani market , Telenor was market leader in

introducing easy loads from rupees 10 to 1000 .

Largest EDGE/GPRS data network

Telenor Pakistan has taken the lead by offering host of data services

through Pakistan’s largest EDGE/GPRS data network. It offers

services like Mobile TV, Ask Telenor, Teledoctor, local and

international MMS, PicShare and wireless laptop connectivity,

providing greater benefit to the end user.

Using EDGE, operators can handle three times more subscribers

than GPRS, triple their data rate per subscriber, or add extra

capacity to their voice communications.

Mobile TV

Telenor Pakistan offers Mobile TV offer. The service enables

customers to watch TV content on their GPRS/EDGE-enabled

handsets anywhere, anytime. This is a unique and innovative

service in Pakistan, and at par with only a few other mobile

operators in the region.

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PixSense Multimedia Management Solution for Mobile

Subscribers

For the first time in Pakistan, Telenor’s PicShare service gives users

a unique new way of sharing their memories online and through

their mobile handset.

Telenor Pakistan, which has taken the leadership role in the industry

by offering a platform which helps its subscribers manage their

media transparently and also allows building of mobile user

communities thereby building a more lasting relationship with their

subscribers.

Telenor Pakistan & Opera Software

Telenor Pakistan and Opera Software have partnered to provide

users with a uniquely powerful and efficient Internet experience.

Starting immediately, Telenor Pakistan customers can surf the Web

with the revolutionary Opera Mini browser.

Environmental benefits

Telenor is the first in industry to have started using solar energy to

power a commercial site.

Crisis interventions

Within hours of the most tragic catastrophe to hit Pakistan

in its history, Telenor Pakistan activated its efforts to help

the earthquake survivors.

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Telenor Pakistan made a sizable donation to Shaukat

Khanum Memorial Trust in order to support the cause of

treating cancer patients.

Telenor Pakistan contributed to a fundraiser for the

restoration of the historic Rohtas Fort.

Telenor Pakistan, continuing with its efforts to provide

relief to the flood-affected people, has distributed food and

drinking water to almost 10,000 families in the badly-hit

areas of Sindh and Balochistan.

The Corporate Responsibility unit recently teamed up with

Pakistan Red Crescent Society to help collect blood

donations from Telenor employees.

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4. Department worked during internship.

Departments in Telenor

I did my internship in the Telenor franchise Bank Road ,Saddar,

where following departments are currently working:

Customer Care

Telenor franchise’s main department is customer care.

Satisfying customers queries and facilitating with products and

information is the task performed by this department.

Sales and Distribution Department

Marketing department in Telenor franchise was responsible for

sales and distribution to business clients. Telenor franchise

expand sales by distributing sims to authorized dealers and

easyloads to small shops in vicinity of local people. Marketing

department keep a record of all such sales and provide the

business customers with latest offers and products to reach to

masses.

Finance Department

The finance department was very small and looks after the

daily expenditures and sales of franchise. Payroll of the

employees is also made by this department. At the closing of

everyday the manager reports to Telenor Business centre on

mall road, Rawalpindi for the profits or losses.

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Tasks performed at Telenor customer care Department.

During my six weeks of internship I performed many duties in

Telenor customer care department which added to my experience

and learning. All the tasks that I executed gave me a sense of

responsibility. Sometimes there was too much responsibility on me;

too much burden was there. At times things were slow, yet I wanted

to work more because I had blurred the lines between work and fun.

I performed following tasks and duties during my Internship:

Customer Service department

Telenor know how important it is that customers receive a

satisfactory service from their staff at all times. I was briefed by

customer care manager Ms. Irem Jafferey how to behave with

customers. Some of the important things in customers department

that I was told to do are:

Be polite, helpful and treat customers with respect.

Listen carefully in order to understand and respond to

customers needs.

Give customers name and wear a name badge.

Give them an explanation of customers actions

Provide accurate product information on all Telenor

Pakistan services and products, and answer customer’s

questions correctly and quickly.

Keep promises and be honest.

Encourage customers to give their feedback.

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Service Connection activation

Telenor customers deserve quick response when they first order

their services. Therefore to, assure that I filled the new connection

form by verifying information from customers NIC and the

customers ordering prepaid connections can have service activated

within a few minutes of fulfilling all the ordering requirements.

Easy load

At Telenor I did easy load for customers in the first few days of my

internship. Every transaction generates a number and I keep record

of all the transactions of the day. This information was used for daily

closing accounts of franchise.

Dispute Resolution

Telenor franchise efforts are focused on quick and appropriate

action that is necessary to solve the problem and satisfy customers.

My duty was to satisfy customers by providing proper information.

My supervisor guided me on every problem that came my way from

arrogant and rude customers to serious disputes.

Billing Information

I gave billing information to post pay customers by entering the

mobile number in data base of Telenor. I also reconnect the service

if due to delinquency, the service was disconnected. Billing and

other account information to settle any valid complaints was also

given to customers on request.

Security and Confidentiality of Information

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Telenor make every effort to protect customers’ privacy and to

assure a secure network for the confidentiality of their information.

In addition customers’ personal information is safe with telenor and

be strictly guarded as per laws of Pakistan. For this purpose I was

given special lesson and I signed un undertaking for not disclosing

and misusing information.

Making Phone Calls for Confirmations

Meetings, seminars, trainings and dinners are held frequently in

Telenor where management throughout Pakistan is invited.. The

duty of HR Department is to invite employee usually through email.

My job was to make phone calls to the Management of Telenor

franchise reminding them about the meetings and confirming

whether they are going to make it or not. I handed over to my

supervisor, the names of all those people who wouldn’t be able to

come.

Data Entry

The customer care department daily receives different types of

forms and data including Sim registration forms, Sim replacement

forms, feedback forms, complaint forms etc. My task was to enter

the data in Telenor database.

Dispatching Letters

Telenor is a centralized organization in which every decision has to

go through the head office. So a lot of letters, applications and

recommendations were dispatched daily to Telenor head quarters to

Lahore, and Karachi. My supervisors only mentioned the city and it

was my job to write the postal address of Telenor office on an

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envelope containing the document and deliver it at the reception to

be dispatched.

Managing Visitors

Many people came to visit the customer care department for

solution of their complaints. I gave information to the customers

and solve the problems by providing them effective and sufficient

guidance. In customer care department, customer is always given

more priority and respect, and we listen to them with all ears. It was

my duty to satisfy customers on their all queries regarding calling

call rates, package conversion, VAS, compatibility of handsets and

enabling GPRS on their number according to their requests.

Working with Documents

Office work is all about papers and documents. My supervisors

always required arranging and rearranging documents. I helped

them in their work by stapling and unclipping documents. I also

make many photocopies of documents. I also faxed papers and

documents all over the country and sometimes outside the country.

Scanning was also a everyday job for me, I used to scan documents

and papers and sometimes those documents were to be faxed to

other offices of Telenor.

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5. Identification of a main problem

I was appointed for internship at a Telenor franchise at bank road

sadder .This franchise is also carrying out distribution activities for

the Telenor business centre mall road sadder.

The main problem this franchise faced is of a small place according

to the customer traffic. This franchise also caters the customers

from Fateh Jang . So a lot of people came with complaints and

problems to this franchise. The place to accommodate these people

is very much insufficient. There are no waiting seats for people, as a

result people have to wait while standing for their turns in long que

for long time periods. This creates a negative image of the

company.

Another problem with the franchise is that franchise has a limited

access on customer service database. Franchise can only perform

general customer care tasks like generation of new numbers,

complaint registration, solving minor issues like activating value

added services etc. call , sms or mms details and transferring of

number on other name and on other confidential issues franchise

has no access. So when some customers asks for such

services ,franchise has to divert them to business centre .

Another problem faced by me and employees at customer care

department is of arrogant and rude customers. Special training is

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given to people who are serving the customers directly. Staff at

customer care department was also not enough. Franchise is

dealing with so many customers each single day but due to small

place , no of employees is also few. This adds extra burden and

stress to the employees serving to customers. Some times this lead

to demotivation of employees. Also the shift timing is 8 hours which

makes customers representatives very tired as there are no official

breaks in between.

6. Findings

While working with Telenor , I learned practical knowledge of the

business world. I find it interesting to relate my bookish knowledge

with the practical things.

Following are my findings regarding Telenor :

Telenor is the biggest investor in telecom industry with a

FDI of 2 Billion initially, 3.6 Billion to date and still

investing more.

Currently according to PTA 2008 ,Telenor has a market

share of 20%.

The company has created 2500 direct and more than

25000 indirect employment opportunities with 100,000+

retail outlets and 200+ franchises in addition. 99.9% of

these employment opportunities belong to Pakistanis.

Telenor is an innovator , quality oriented and customer

focused company.

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Telenor believes on good governance and corporate

responsibility.

Telenor focus on reaching masses with extensive

distribution strategy.

The Telenor outlook for 2010-2011 is :

SIM penetration above 70% Market share above 25% EBITDA in mid thirties

6. Conclusion and Recommendations

Telenor Pakistan is the fastest growing mobile operator in

Pakistan.

Telenor Pakistan is committed to bringing true mobile innovation to

the under-served masses of Pakistan. Telenor Pakistan’s community

contributions have extended over the years to include education,

empowerment, enterprise, and environment - with special focus on

bringing the telecom promise within the grasp of the most

disadvantaged sections of the society.

The company has created 2500 direct and more than 25000 indirect

employment opportunities with 100,000+ retail outlets and 200+

franchises in addition. 99.9% of these employment opportunities

belong to Pakistanis.

Telenor is a place where one can live his dreams and pursue a

career that reflects his skills and passions. Telenor gives flexibility

for change, the opportunity to learn, and providing career options

with endless possibilities.

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Some of the recommendations for Telenor according to my

understanding are:

Franchise must be given full access on customer service

database of Telenor.

There must be rewards and acknowledgement for the best

franchise in zone to increase motivation level of franchise

employees.

Refresher courses for the staff are most important in any

international organization. All the employees of franchise

should have these courses according to their requirement.

Foreign experts can also be called for this purpose.

Every year some of the employees should be sent for training

to other countries and employees from other branches or main

office should be brought here in the franchise. So that they can

observe the right things.

There were too many internees in customer care department,

the company has to meet a certain quota of internees and this

load is maximum during summers. What this does is makes

the environment inefficient and extremely relaxed. This matter

requires attention.

Such system should be designed that every employee who has

some problems with his supervisors can communicate it to the

higher management and some steps must be taken to improve

that.

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There was a fine line between employees and internees, and

though that is understandable, the system seemed much

closed at times.

Because of better opportunities in market, a high turnover of

skilled human resource has been seen in Telenor . Serious

efforts are needed to arrest this trend. More and more

incentives should be given to the employees other than just

medical facility and paid leaves.

The period of internship should be divided into the number of

departments in Telenor . The internee should be given

timetable mentioning the number of days he has to work at

different places in the office. Once in a while, in each

department internee should be given a lecture by the manager

of the department about operations of the department. This

would increase the learning of the internee.

The fact that there were two sales offices in the building (one

on the 2nd floor and one in the ground), led to work related

confusion and hence mishaps. Proper communication and

planning should be there.

Distribution of work is not on equity basis in franchise, work

has not been allocated properly some workers have to work

hard and have to work in late hours without any extra reward.

So I suggest that steps should be taken to allocate the work

properly.

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All the employees in the customer care department are over-

burden with work and responsibility. The customer care

department requires more employees.

When a new employee becomes a part of Telenor , he is not

properly oriented. Telenor has this policy of orientation but it

only includes visits to departments and knowing about the

policies and rules of the company. I suggest a proper

orientation and socialization session should be there for a new

employee so that he may feel comfortable with his new

organization.

The late seating of employees has been observed in Telenor

franchise distribution department and many employees work

overtime after office hours. They should be properly

compensated for their work especially during the overtime

period. This would be encouraging for all the employees.

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Special thanks to:

Ms. Irem JafferyTelenor Customer relations Manager

Customer Care DepartmentTelenor franchise, Bank Road, Saddar

Mr. Arshad NooriTelenor Sales Supervisor

Mr. Usman HassanCW & PWR IMPL NORTH

References:

www.telenor.comwww.telenor.com.pk

www.pta.gov.pk

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7. Appendix

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Annexure

Key financial figures - Telenor Pakistan

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Annexure

source: capital markets day 2008.

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Bangladesh Denmark

Hungary Malaysia

Montenegro Norway

Pakistan Russia

Serbia Sweden

Thailand

Ukraine

Annexure

Mobile operators and the markets in which Telenor operates.

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Annexure

Top management of Telenor

Jon Eddy Abdullah, Chief Executive Officer

Jon Eddy Abdullah has more than 15 years of experience in the telecommunications industry. He has been working with both infrastructure vendors as well as several mobile operators, most recently as Chief Operating Officer in Maxis Telecommunications, Malaysia, and Chief Technology Officer DiGi Malaysia. Jon holds a Bachelor of Science (Electrical Engineering) from Montana State University, USA.

Irfan Wahab Khan, Executive Vice President Corporate Affairs & CEO LDI

Irfan heads the Corporate Affairs & CEO LDI Division and supervises the Regulatory & Interconnect, Legal Affairs, Public & Government Affairs, and Corporate Communications departments. He has extensive international experience of working in the mobile cellular industry having worked with Orange UK, T-Mobile USA, Telecordia Technologies USA, Nortel Networks, Ericsson Philippines, and the Ministry of IT & Telecommunications Pakistan. Irfan has served as a Director on PTCL's Board and was Vice Chairman of GSM Alliance, North America. Irfan Wahab Khan has an MSc in Mobile Communications from the University of Westminster, UK.

Lars Christian, Chief Marketing Officer

Lars-Christian Iuel rejoins the Telenor Group following a two-year stint with Cell One, Namibia's well-known mobile operator. He was appointed Cell One's CEO in 2007 from his previous position as the company's CMO. Lars was Senior Executive Vice President, Private Products, Telenor Nordic when he left in 2006. He joined Telenor ASA in 1996. With 12 years management experience Lars has a wide range of knowledge of the industry. He has a Cand. Merc (MBA) from University of Aalborg, Denmark, an MBA from University of Sheffield, UK, and can speak English, Norwegian, Danish and German.

Peter Dindial, Chief Technical Officer / Vice President Technical Division

Peter heads the Technical Division which comprises the Network Planning & Design, Implementation, Operations & Maintenance, Real Estate & Site Acquisition, Technology and Strategy, and E2E QA departments. He was previously responsible for the development of the Real Estate & Site Acquisition department. He has been Operational Advisor to CEO Telenor Pakistan, and has worked on a broad range of commercial and technical operational issues. He has also been responsible for managing the CEO's Office. Prior to joining Telenor Pakistan, Peter was the Chief Operational Advisor for Promonte,

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Telenor’s operations in Serbia and Montenegro. Peter began his career with British Telecom (BT) in the UK where he worked for nine years. He spent the next 10 years on various international assignments including working with StarHub in Singapore and Ericsson in Malaysia. Peter Dindial has an MBA, and a BA in Business and Finance from the University of South Bank, London.

Khalid Shehzad, Chief Information Officer / Vice President IT Division

Khalid heads the Information Technology Division and manages the Business Support System, IT Operations, and IT Security departments. Before joining Telenor Pakistan as CIO in June 2004, Khalid worked in Tanzania as a CIO for Celtel International which caters to both mobile and fixed line customer needs. Khalid has the distinction of being noted as IT Director of the Year for Western Wireless International in 2000, and Employee of the Year at Millicom International in 1996. He began his career 14 years ago, and has worked extensively in the international telecom sector with companies such as Motorola, Millicom, AT&T Wireless, Western Wireless, Celtel Intl, and with Ufone. Khalid Shehzad has a BSc in Computer Sciences from UCLA USA and an MBA from IBA Karachi.

Peter Kuncewicz, Chief Finance Officer / Vice President Finance Division

Peter heads the Finance Division and supervises the Business Planning & Finance, Accounts, Procurement, Treasury, Financial Operations, Revenue Assurance & Fraud Management, Credit Control, and SOA departments. Peter comes from a CFO / CIO's position from Star Foods S.A. Poland, an FMCG company, where he worked from 1996 to 2006. He held the position of Controller Procurement and IT Project Manager at Bahrain Telecommunications from 1987 to 1996. Peter also has experience in the building materials, electronics and pharmaceutical industries. He is a member of the United Kingdom Chartered Institute of Management Accountants. Peter Kuncewicz has an MSc in Business Planning and Finance from the University of Salford, England, and a first degree in Biology from the University of Sussex, England.

Nayab Baig, Vice President Human Capital Division

Nayab heads HC Division and oversees the People Excellence & Business Process Improvement, Safety and Security , and Organizational Support Services departments. He has extensive human resource management experience having developed performance planning, management and evaluation systems in addition to introducing developmental activities at Packages and Unilever Bestfoods in the past. He has headed the HR departments of Packages Ltd., Unilever Bestfoods, SHV, and Avari Renaissance Hotel. Nayab Baig has an MA in Human Resource Management from the University of Westminster, UK.

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