A Report on:

A Report on:

TELENOR A NEW INVESTOR IN

MOBILE INDUSTRY OF PAKISTAN

National University of Modern LanguagesSubject: International Business

Submitted To: Madam Tajwar Ali

Submitted by: -

Course: MBA-IV

Group Members:

M. Awais

Kamran Nisar

Nazuk Rustam

Qadeer Ahmed Durrani

Rehan-ul- Manzoor Khokhar

Telenor Pakistan

AddressGround Floor, Saudi Pak Tower, 61 - A Jinnah Avenue, Islamabad, PakTelephone+92 51 280 0243 Fax+92 51 280 0399 Emailtelenor@telenor.com.pk Web sitehttp://www.telenor.com/pakistan Position

Contact name People Chief Procurement Officer

Kurt Severinsen

Main sites: Islamabad (HQ)Main markets: PakistanYear established: 2004

Summary Of Main ActivitiesTelenor Pakistan acquired a nationwide GSM license in Pakistan in April 2004. It includes GSM, GPRS and EDGE. The company plans to launch a mobile service platform including multimedia services in April 2005.

Mobile networks and servicesCellular network operator2nd-generation cellular network operatorGSM network operator2.5G cellular network operatorEDGE & GPRS network operator

Mobile Networks And Services

AcknowledgementThis report is completed by the humble efforts done by all the group members on the basis of information and knowledge that we gained from our prestigious institution and the information that we got from the relevant company. We would like to pay gratitude and thanks to all the company employees who gave us information about our topic and we also we want to thank our subject teacher Madam Tajwar Ali, who taught us a lot about this subject and through which become able to make this project.

Executive SummaryThis report is about a mobile company Telenor. It is a multinational company and its head office is in Norway. The company has its branches in 11 countries and is one of the mobile leader companies in the international market. Now they have decided to expand their business in Pakistan. In Pakistan they will introduce both mobile sets and connections. The company has got the license-approved from the Government of Pakistan to work here. They have stated their work and their plan is launch their product in market till March 2005.

In this report we have analyzed that as there are already four companies providing mobile services to the customers. i.e. Mobilink, U-fone, Paktel and Istaphone, so how will Telenor compete these companies and what strategies and plans it would make to progress in the Market?

We got very little information from the Telenor Company office in Islamabad because they said that the company is in working stage and it will not welcome any one to take information relating to their future plans and other strategies until they launch their product in the market. It is kept confidential by the company employees. Therefore the report is made from the information and data gathered from the websites and the newspapers.

The first three chapters are based on the working of Telenor Company in their offices in different countries, their product and services and their plans to launch in Pakistan because Pakistan has a huge market of customers. The company had good experience of offering affordable services to attract new customers in countries with fairly low mobile penetration. It will bring healthy competition that will help improve service quality, reduce tariffs and create employment opportunities and there is a lot of potential of cellular phone expansion in Pakistan and the company want to make good operation as they already have experience in this region. In short, the whole Pakistans telecom sector is likely to grow and improve tremendously.

In next chapters we have explained about the Telenor setup in Pakistan, its SWOT analysis. The analysis was based on the information we got and the trends of the mobile industry of Pakistan. In the end we have given the problems that the company may face in future because the time from which the company had got license of working in Pakistan. The other mobile connection companies have lower down their rates up to zero and this appears to be the biggest threat for the newly launching company. Then we have given some suggestion that how the company can compete in the market and strategies it should follow.

We hope that if this report becomes the point of interest for the Telenor Company and they just appreciate our suggestions, we will think that our work has some value and we have succeeded in our task.

TABLE OF CONTENTS01Introduction01

02Telenor Business Areas 05

03Telenor in Pakistan 11

04Telenors Satellite Fleet14

05SWOT Analysis 17

06Problems and Solutions 21

Chapter no

Index

Page no

Chapter # 1

INTRODUCTION

T

Telenor Mobil was established in 1993 and provides services in both the GSM and NMT networks. The NMT 450 network will be operational only throughout 2004. GSM covers 99.4% of the population in their homes (October 2004), and coverage is continuously expanded. Telenor Mobil launched sound and image messaging (MMS) in 2002, and is strongly committed to mobile Internet, m-Commerce and mobile data services. When Telenor Mobil opens its third generation mobile network (UMTS) for commercial use, the current services will be extended, faster and more advanced.

HistoryTelenor's origins go all the way back to 1855, and for 150 years the company has been Norway's leading telecom player. In the 1990s, Telenor went from being a state monopoly to become a commercial enterprise and the company is today positioned as an innovative player in international mobile communications.

In 1994, the then 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 telecom market after deregulation in the 1990s, with free competition for all services from 1998. It has successfully defended its strong position in Norwegian market.

Telenor's strong international expansion in recent years has been based on leading-edge expertise, acquired in the Norwegian and Nordic markets, which are among the most highly developed technology markets in the world. Internationalization was achieved on the basis of strong positions in satellite communications, in mobile communications and in domestic Internet activities. Telenor has been one of the world's leading suppliers of satellite communications for many years. Norway and the Nordic region have been in the forefront of the development of mobile communications, and Internet use has quickly gained ground in this market.

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, is scheduled for commercial use within 2004.

Vision

Ideas that simplify

Mission

Telenors mission is to create value for shareholders through the serving of customers, employees, partners and the general public interest. In long-term perspective a strong market a customer focus, as well as a strong commitment to its employees and to the society.

Core ValuesTelenors three core values shall be at the heart of governing the conduct of its employee-internally and externally:

Dynamic

It means having insight and active involvement, coupled with a capacity for implementation

Innovative

It means continuously being on the lookout for new opportunities for development and growth

Responsible

It means rasing realistic expectations, deliver as promised and stay committed to the society, which its group is a part of.

Objectives And Strategy

Telenor believes that responsibility and trust are inseparable. It must have trusting relationships with customers, owners, employees and society in general. Therefore a determined effort is made to attend to the Group's responsibilities in society in a comprehensive and innovative way.

Objectives

Telenor is committed to being both an industry leader in the management and implementation of corporate social responsibility and to make this an integral part of its business development. The three primary objectives for its social responsibility program are:

Telenor's customers shall be confident that the Group runs its operations in an ethically responsible manner

Investors expecting high standards of social commitment shall prefer Telenor

Telenor's employees shall be proud of the way in which the Group handles its social responsibility

StrategyTelenor is committed to meeting its corporate social responsibility in all activities. Its efforts are based on it's Core Values; dynamic, innovative and responsible. In short, it will be dynamic and innovative in the way it assume its responsibilities, and will be responsible in innovation and conduct its business. Reaching these objectives is a complex process demanding a broad approach throughout the corporation.

Geographical Scope

Over the last decade, Telenor has developed its position as a mobile operator with substantial operations in 12 countries. At the end of 2003, the companies wherein Telenor has ownership interests had a total of 34.8 million mobile subscriptions. The mobile commitments outside Norway have become an increasingly important part of Telenor's activity, and contributed to 24 per cent of the Group's external revenues in 2003.

The business areas each have defined geographical areas of priority outside Norway:

Telenor Mobile has selected countries in Europe and South East Asia as its priority markets.

Telenor Networks has activities in Sweden, Russia and Eastern Europe.

Telenor Broadcast has defined the Nordic Region as its home market.

Mobile Operations

Mobile is Telenor's principal focus area for future growth. Continued development of the mobile activities is vital to the Group's positioning as an international telecommunications player.

Telenor has ownership interest in 12 mobile operations geographically concentrated in selected countries in Europe and Asia. In 2003, 42% of its external revenues were derived from the mobile operations. Telenor's commitments on the international mobile arena are based on Telenor's acquired experience and skills, and on products and services developed and shared within Telenor's family of mobile operations.

Chapter # 2

TELENOR BUSINESS AREAS

Business AreasThe Telenor Group has activities in a number of areas in Norway, the Nordic Region and internationally. Telenor has gone from being a national telecommunications operator to become an international player with its main focus on mobile services.

In the continued development of its activities, Telenor will continue to build on the solid, existing platform. The strong Norwegian position will form the basis for new growth. In immature markets and with respect to new product ranges, Telenor will look for options to position itself for the future. Growth will come through a strengthening of our international commitments in growth markets.

Mobile

Mobile is Telenors business area for development and management of mobile service4s within voice, data, Internet and cot net services in Norway and internationally

Broadcast

Broadcast is Telenor's business area for TV-distribution via cable and satellite. Telenor operates the Norwegian terrestrial network for radio and TV broadcasting and is the leading provider of satellite transmission to the Nordic region via three geostationary satellites.

Fixed

Fixed is Telenor's business area for development, management and supply of communications solutions based on the fixed network. Telenor has fixed network operations in Norway, Sweden, the Czech Republic and Slovakia. As of 2003, the Group's activities in Russia are run through an associated company.

Other Operations

The Telenor Group has activities in a number of areas in Norway, the Nordic Region and internationally. Telenor has gone from being a national telecommunications operator to become an international player with its main focus on mobile services.

Other Units

Telenor has substantial activities in addition to the three business areas, also including various staff and support functions: EDB Business Partner, Telenor Satellite Services, Telenor Satellite Networks, Teleservice, Telenor R&D, Telenor Key Partner, Telenor Venture and Telenor Eiendom.

EDB Business Partner ASA

At year-end 2003, Telenor held an ownership share of 51.8% in EDB Business Partner ASA. EDB Business Partner ASA is one of the Nordic region's leading IT groups, with revenues in 2003 of NOK 4.3 billion and around 2,500 employees. EDB Business Partner is a supplier of software solutions and offers management services with special expertise in telecommunications, banking and finance. EDB Business Partner has a strong presence in the Norwegian market, as well as in the US, Sweden, the UK, Switzerland and Spain.

Satellite ServicesSatellite Services is wholly owned by Telenor, and supplies satellite-based voice and data services for use on land, in shipping and the offshore industry and in aviation. Subsequent to the acquisition of Telenor Satellite Services Inc. (formerly COMSAT Mobile Communications) in January 2002 and Marlink (formerly Sait Communications) in 2001, Telenor Satellite Services has become one of the world's leading suppliers of global, mobile communications solutions via satellite. The services are marketed through a broad international chain of distributors as well as from own offices around the world.

Satellite NetworksSatellite Networks is wholly owned by Telenor, and supplies satellite-based communication solutions and VSAT technology to the business market and national and international organizations. The company's complete communications solutions encompass network design, implementation, management and service. The services are supplied through subsidiaries in Norway, the Netherlands, Slovakia and the Czech Republic.

Teleservice

Telenor wholly owns Teleservice, and responsible for Directory Enquiries 1881, International Directory Enquiries 1882, MeetAt 07777 (telephone and data conferences) as well as other Contact Center services. The company aims at making information and communications services easily accessible to users. In February 2002, the market for directory enquiries was opened to competition in Norway, but Directory Inquiries 1881 still has a dominant position in the Norwegian market with 70% of the traffic.

Research And DevelopmentTelenor Research and Development makes an important contribution to Telenor's value-adding services through strategic consultancy, innovation and improvement of existing solutions. The research and development activity is mainly linked to future broadband networks and mobile systems, as well as new services and customer solutions across different networks. R&D also carries out work on new business models and takes part in strategic processes in the Telenor Group. R&D is Norway's largest research community in the field of ICT, and is regarded as one of the leaders in specific areas within European research collaboration.

Telenor Key PartnerTelenor, and supplies technology-based administrative services to the groups business areas and subsidiaries wholly own Telenor Key Partner. Telenor Key Partner is a driving force in achieving standardization and quality improvements in the administrative running of the whole Group. The company's services are based on viable business principles and market-oriented prices.

VentureTelenor Venture is seeking to create value through active ownership by investing in companies in the fields of telecommunications and IT. Telenor Venture II ASA was established in 2000 with the purpose of continuing and expanding the investment activities, and in December 2002, Telenor Venture III was established to continue activities formerly organized under Telenor Innovasjon AS and other parts of the Telenor Group. Telenor's ownership share in Telenor Venture AS was sold at the end of 2003. The ownership share in Telenor Venture II ASA is 50.1% and 100% in Telenor Venture III AS. The Telenor Venture companies are managed and administered by TeleVenture Management AS in which Telenor has an ownership share of 23.9%.

Eiendom Holding

Telenor wholly owns Eiendom Holding. At the end of 2003, the company managed approximately 1 million square meters of owned and leased floor space spread out over approximately 4,500 buildings. The company's main task is to ensure that the Telenor Group has at its disposal sufficient premises to allow its main activities to be performed in a cost effective manner.

Internal Processes

Telenor's primary focus regarding social responsibility is in internal operations, providing its employees with a safe and positive working environment, encouraging environmental awareness and promoting sound business ethics throughout the organization. It is vital to Telenor that its management and workforce handle ethical dilemmas correctly and adhere to the company's high standards when interacting with customers, markets, public authorities and other stakeholders.

Telenor Share In Different Countries

CountryCompanyOwnership Share

NorwayTelenor Mobil100%

SwedenTelenor Mobile100%

DenmarkSonofon100%

HungaryPannon GSM100%

MontenegroProMonte100%

Pakistan(License)100%

MalaysiaDiGi61%

UkraineKyivstar GSM56,5%

BangladeshGrameenPhone51%

ThailandDTAC40,3%

RussiaVimpelCom29%

AustriaONE17,5%

= Consolidated

= Non-consolidated

(Table shows the countries in which Telenor is providing services to its customers)

Links To Mobile's Portfolio

Telenor Mobile's PortfolioCompanyCountry

Telenor MobilNorway

Telenor MobileSweden

SonofonDenmark

Pannon GSMHungary

ProMonteMontenegro

DiGiMalaysia

Kyivstar GSMUkraine

GrameenPhoneBangladesh

DTACThailand

VimpelComRussia

OneAustria

Chapter # 3

TELENOR IN PAKISTAN

On April 14, 2004 Telenor acquired a nationwide GSM license in Pakistan. At present this license for mobile operation includes GSM, GPRS and EDGE. Telenor's Pakistani company will launch a world-class mobile service platform including multimedia services within April 1, 2005.

The license terms stipulate that by year 4 we will cover 70 per cent of Pakistan's 297 administrative Tehsil headquarters and will naturally at least fulfill the license requirements and provide superior quality coverage.

Telenor's Pakistani mobile operator will have headquarters in Islamabad and regional offices in Karachi and Lahore.

The GSM Association among the 12 largest mobile operators in the world ranks Telenor with 34.2 million subscribers at the end of March 2004, based on 100% figures from the operations. Telenor has owner shares in mobile operations in 11 countries across Europe and Asia in addition to the license in Pakistan. The family of mobile operations benefit from economy of scale and sharing of knowledge and best practice initiatives across all the companies. The CEO of the Telenor said:

We are proud to build mobile communication infrastructure in Pakistan and very much look forward to combining our experience in mobile technology with the local Pakistani high level of competence. Our primary aim is to offer top quality mobile services and promote healthy competition in the mobile marketTelenor Acquired GSM License In Pakistan

Telenor has won the auction in Islamabad for one of two new nationwide licenses in Pakistan for mobile operation. Telenor's winning bid of USD 291 million, secures a 15-year license, which will be renewable on application. Only 50% of the license fee is payable in the first year, with the balance over ten years. In addition the licensee will 2.5 per cent of the annual gross revenue in fees. Existing operators will also have to pay the same license fee on renewal of their licenses.

Norwegian cellular company, Telenor Mobile Communications, will invest $1 billion in Pakistan in the next five to seven years as it and the UAEs Warid Telecommunications signed formal agreements to provide mobile phone services in the country. Both the companies signed the agreements with the Pakistan Telecommunication Authority (PTA) after paying 50 per cent, or $145 million each, of fees for licenses issued to them. Company had not yet finalized a pricing plan because it is more involved in fulfilling license terms, selecting network suppliers and building the profile of the service it would offer. Jon Fredrik Baksaas, President and CEO of Telenor, Said:

"Acquiring the license in Pakistan is a continuation of Telenor's activities in Asia. Historically Telenor has successfully focused on start up of Greenfield mobile operations. We look forward to becoming a mobile operator in Pakistan and taking part in the expected growth within the mobile segment",

Why Telenor Selected Pakistan

Norway's software & telecom firms had evinced keen interest in working closely with Pakistani firms to forge joint partnerships in the telecom & IT sector.

The quality of the software products being demonstrated indicates clearly that Pakistan can position itself very strongly on the world map as far as this sector is concerned

Telenor in Sindh is expected to generate much-needed jobs and uplift the economic activity in the province.

Telenor is one of the two new entrants in the competitive mobile sector in Pakistan, and this has paved the way for other Scandinavian countries to look at Pakistan as a potential business partner.

Telenor is the 12th largest mobile operator in the world, and that they have entered the Pakistani market after carefully evaluating the political and economic risks.

Pakistan has a stable political environment, a legal framework that guarantees a level playing field, and a formal regulatory structure; they all contribute to companies such as Telenor entering the market in Pakistan.

The company will bring healthy competition that will help improve service quality, reduce tariffs and create employment opportunities

The company had good experience of offering affordable services to attract new customers in countries with fairly low mobile penetration.

On the whole Pakistans telecom sector is likely to grow and improve

There is a lot of potential of cellular phone expansion in Pakistan & the company want to make good operation as they already have experience in this region.Telenors Product To Be Launched In Pakistan

The table shown below provides us the information about the product, which will be launched in Pakistan by the telenor and its date of launching. This shows that the company had done its proper planning and they will invest properly in different areas of Pakistan.

Operator Name:Telenor Pakistan (Pvt) Ltd.

Network Name:Telenor Pakistan (Pvt) Ltd.

Technology:GSM 900/1800

Handset Code:TELENOR

Network Code:410 06

Network Status:Planned March 2005

Web Site:www.telenor.com/pakistan

Chapter # 4

TELENORS SATELLITE FLEET

Telenor's Paksat 1 CapacityThis is available through a framework contract with the National Telecommunication Corporation of Pakistan for bulk purchase of capacity, enabling Telenor to offer market-beating rates.

Paksat 1 provides low-cost high-quality satellite communications in both C-band and Ku-band to Africa, the Middle East, and eastwards to Pakistan. The Paksat C-band coverage and Paksat Ku-band coverage provide complimentary service areas.

Paksat 1's 30 C-band transponders and 4 Ku-band transponders provide the total range of satellite communications capabilities. The satellite is in a fully stabilized geostationary orbit at 38 degrees East longitude and carries high power payloads in both bands.

Paksat 1 transponders are priced well below normal market rates. The satellite is ideal for use by businesses looking for low cost-of-entry to the satellite service market or to leverage the advantages of satellite communications. ISPs can use the satellite as a highly cost effective means to access the European or American Internet and to extend their reach into remote areas where broadband terrestrial capacity is not available. The satellite is also well suited for vide contribution and distribution.

Hughes Global Services (HGS) leased the satellite to the Government of Pakistan in July 2002. The satellite is in position at the Pakistani-licensed orbital location, 38 degrees East longitude. Paksat 1 is operational and ready to offer services.

Paksat 1 has a scheduled service outage, which occurs during eclipse season - 44 days twice a year - when the satellite loses sight of the sun. The outage is always centered on satellite local midnight and ranges between a few minutes up to 2.5 hours at it's maximum. During most of the eclipse season the satellite can be used for more than 22 hours per day giving annual availability greater than 97%. Business day uses are unaffected by the outage, and since the outage is always around satellite local midnight most users are unaffected. The chart below illustrates the high availability for the service. Outside of eclipse season the satellite is available 24 x 7.

(The chart illustrates the high availability for the service)

While the scheduled outage reflects only a small degree of service unavailability, pricing for Paksat 1 bandwidth is much lower than standard market rates and will be highly competitive for all applications.

In short - Paksat 1 is a great opportunity but it wont be suitable for everyone because of the scheduled outages. However, the capacity is priced to sell.

And to complete the picture... Telenor can also provide:

Terrestrial connectivity

TV play out

MPEG encoding

Conditional access

A full range of IP services

Use of their existing uplinks in London, Oslo, Stockholm, Helsinki, Copenhagen, Bratislava & Sofia.

(The pictures show Paksat 1 C-Band coverage and

Ku-Band coverage of Telenor in Pakistan)

Chapter # 5

SWOT ANALYSIS

Every company whether national or international performs SWOT analysis of its resources before starting its operations in the market or entering into new market Similarly Telenor has also done its SWOT analysis some of its major points are explained below:

Strengths

1. Co-Operation And Obligations Telenor works continuously to strengthen the Group's social responsibility performance.

To facilitate this, Telenor will listen to, and widen its dialogue with customers, investors, authorities, Non-Governmental Organizations (NGOs), experts and other relevant stakeholders.

To underline the Group's commitment, Telenor supports the UN's Global Compact and the European Telecommunications Network Operators' Association's (ETNO) Environmental Charter.

2. Products And Services Telenor is a driving force in creating, simplifying and bringing communications solutions and content solutions to the market.

Its products and services are beneficial and enjoyable for users in all age groups, serving customers with different needs and preferences and with different functional abilities.

In information technology, the development is moving at a rapid pace, and it is difficult to predict exactly how solutions will be received in the markets, and equally difficult to predict what user patterns will look like. Who would have thought that SMS should become such an integral part of the way young people communicate?

Telenor is committed to assume responsibilities in respect of this development and will closely consider the environmental, social and health-related impacts of the Group's products and services.

They acknowledge their responsibilities to user groups that have special needs, and recognize that parents and schools have special concerns regarding safe use of information technology for young people.

Telenor also focuses on developing products and services of high utility value for our society. Additional to the business areas' own product development

Telenor's Research and Development unit, Telenor R&D, also plays an important role, not least through its projects focusing on the social aspects of information and communications technology. Special emphasis is placed on users with reduced functional abilities.

3. Comprehensive & Integrated Responsibilities

Telenor relies on building trusting relationships with customers, owners, employees and society in general.

They are making a consistent effort to attend to the Group's corporate social responsibility in a comprehensive and innovative way.

Telenor's ambition is to be a leading company in this field, and in the way will integrate a socially responsible approach into its operations and business development.

They seek an active dialogue with its stakeholders regarding Telenor's activities and commitments related to its social responsibility.

Weaknesses

As the company has not yet started work in Pakistan so we cannot explain its weakness and as the data gathered from its employees and management as well as from the web does not shows any point, which appears to be its weakness.

Opportunities 1. Nokia Helps Telenor To Set Up GSM Network In Pakistan

Nokia, the worlds largest mobile phone maker, has signed a deal with Norways Telenor to set up and run a GSM network in Pakistan, to commence operations in the second quarter of 2005. No value for the contract was disclosed, but analysts said it was likely to be worth over 100 million euros ($124 million).

The network will first cover central and northern Punjab. In addition to radio base stations and infrastructure, the Finnish giant will deliver a complete turnkey network and operate it on behalf of Telenor for three years. Telenor has agreed to set up a mobile phone service covering 70% of its largest towns within four years.

Nokia will supply its complete GSM base station subsystem that can be smoothly upgraded to 3G WCDMA. In addition Nokia will provide turnkey implementation of the network, including site acquisition, civil works, network planning, implementation and project management for fast quality ramp-up of the solution.

Nokia will also operate the BSS part of its network. Nokia will establish the network operations to ensure the timely launch of the quality network.

2. Siemens To Build Mobile Network For Telenor In PakistanTelenor Pakistan has commissioned Siemens to build its GSM network in the southern part of the country. Siemens Information and Communication Mobile will provide delivery and installation of all the infrastructure components for setting up the network. Siemens is a German manufacturer of telecom equipment and is the largest telecom solution provider in Pakistan. The order for Siemens mobile comprises turnkey delivery and installation of switching technology, mobile transmission and receiving stations (base stations), Intelligent Networks (IN) and GPRS hardware and software components

3. Opportunities In Pakistan

It is having the Government support and help when needed

The company will introduce jobs in Pakistan

Network development is easy and PTCL support

Market is greater and the market is on growth stage and at some stages such as on Eid and other ceremonial days U-fone and Mobilink are not satisfying the customers requirements.

Threats

As we know that there are already four mobile companies working in Pakistan so this is a biggest threat for the new company. The information that media and news papers show us is that when Telenor got the license to invest in Pakistan, the already present companies had lowered down their rates in the market.

U-fone and Mobilink had almost made the connection charges up to zero and the cost of the prepaid and postpaid cards is also lower down to a large extend. People belonging to the lower-middle class as well as lower class people have also taken connections. In a home every member has a connection and about 75% of the people have mobiles. In Pakistan this is the biggest threat for the company

Chapter # 6

PROBLEMS AND SOLUTIONSIn previous chapters the information about the company and their plans to invest in Pakistan was given along with the SWOT analysis with respect to the Pakistans Mobile Industry and the customers demand. In this chapter we will state down the problems that the company may face in future when they launch their products in the market along with some suggestions to tackle with these problems. Here the word suggestions has used instead of solutions because we can just suggest solutions to the company and if they like our suggestions and act upon it then it will act as solutions for them. The below are the problems and their suggested solutions

Problems

The biggest problem is of the four main competitors that are already working in the mobile industry of Pakistan i.e. Mobilink, Paktel, U-fone and Instaphone. They all have captured the market and are introducing new features in the services day by day

As it is an international company so how will they build their reputation in the hearts of their customers because the customers consider mostly foreign companies as costly?

The already prevailing mobiles have introduced so much new functions and lowered down their cost to a large extend so what strategies Telenor will have to use to become a market leader among these companies

How they will develop in the market?

The PTCL has given license to two more international companies to make further investments in the mobile sector, this will also become a hurdle for Telenor

They have decide to launch connections in Sindh and other lower areas but how will they attract the customer over their because in those areas the customers are mostly illiterate and it will be difficult for them to understand this media language.

Suggestions / Solutions

These were some problems that Telenor can face in future. Although these were very few but it will take time to be solved. Now we will give the suggestions to solve these problems and these suggestions are based on the proper analysis to this company as well as the other companies and the demands and requirements of the customers.

The company should introduce itself with some new package such as free connections along with mobile for period such as a month

It should adopt strong marketing strategies to advertise it in market

In peak days such as Eid and other ceremonies the mobile services become very poor and the customer face problems while calling to their relatives and friends. Telenor should build a strong network, which will provide best quality service even in these days.

Even though the already serving mobile are providing value added service to their customers but they should introduce more and latest services for the customers

Promotional strategies must be introduced and used

As it is an international company so they should lower down or finish the international roaming charges

The lower rates on calling from one connection to other means if we call from Telenor to U-fone etc. the lower rate should be offered

They are also giving jobs to the people so they should offer good job package means which have high chances of progress, training and high salary with benefits in it

In many areas such as highways and hilly areas like Murree, Swat, Kaghan etc mobile dont respond and the service become limited so they should capture those area market instead to entering into the city where already service is present.

The customer service should be good and all the customers are treated on the equality bases

In undeveloped areas they should make their helping centers where they should teach the customers how to operate the mobiles

They should start work in undeveloped areas because it will result in the increasing of employment in those areas and the people will be motivated towards study

They should also participate in the donation schemes of Pakistan which work for the welfare of humanity such as donating to Sukhat Khanam Memorial Trust, Free medical camps & other schemes which help for the welfare of the society

They should introduce new education relating to satellite study and mobiles etc which is insufficient and costly in Pakistan

It should work on customer friendly basis and not on money making basis

The group's research and development efforts must create new ways of simplifying the everyday life of its customers, which benefits society.

Telenor should seek to innovate responsibly, through careful consideration of the ethical, environmental and health-related effects of its products and services.

It should provide its employees with a safe and positive working environment, encouraging environmental awareness and promote sound business ethics throughout the organization.

It is vital that its management and workforce handle ethical dilemmas correctly

Conclusion

The above were some suggestions given which can be helpful for the company to enter in the new market and progress. In the continued development of its activities, Telenor should continue to build on the solid, existing platform. The strong Norwegian position should form the basis for new growth. In immature markets and with respect to new product ranges, Telenor should look for options to position itself for the future. Growth will come through a strengthening of its international commitments in growth markets. EMBED Word.Picture.8

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