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Pakistan Telecommunication and Mobilink

Introduction

Cellular mobile services in Pakistan began in the 90s, when the two cellular phone licenses were granted to Paktel and Pak Com (Instaphone) for the provision of cellular mobile telephone services in Pakistan. Currently there are six cellular operators in the market. There has been a remarkable growth in Cellular market. The steady growth saw the addition of more than two million mobile phone subscribers every month throughout the last year. Network coverage of almost ninety percent of the total population of Pakistan has made mobile industry even more appealing for foreign investment. Pakistan comes forward as one of the fastest mounting mobile markets among the developing countries. This year the telecom sector grows by eighty percent, whereas in the last four years the average growth rate has been more than hundred percent. Total subscribers reached 76.9 million (December 2007) It was 34.5million in 2006 and 12.7million in 2005. Figure 1 shows cities/villages covered different Cellular Mobile Operators.

118_Figure.png

In Pakistan's the most competitive and heated mobile market operator's survival lies in entering new areas to explore new value added services and products and providing better quality of services. This is only feasible by extending networks and be the first to attain unserved population of the country. Recently, however, the industrial structure in the mobile telecommunications has changed dramatically by liberalization. All forecasts in conjunction with technology, market, economic or social aspects, pointing towards continued growth in communications due to the growing concern for the safety and security that can add a new impetus for the remote communications. Ever since deregulation in the mobile telecommunications industry, competition has been gaining pace, it is growing even faster than cable television businesses bundle in phone services and cellular phones put back the fixed telephones of many customers. As a result, many companies renovate their organizations to meet up the demands of this new competitive environment.

Problem (Mobilink)

Mobilink started operations in 1990 as the first GSM cellular mobile service in Pakistan with a joint venture by Saif Group and Motorola Inc., who later sold it to Orascom Telecom, an Egypt-based multinational company and then they also further sold it to Vimpelcom Group, a Russian Company. The Orascom group, who formally owned Mobilink has a major share in TWA (Transworld Associates) which operates an undersea fiber-optic cable from Karachi, Pakistan, to Fujairah, UAE. As of June 2010, Mobilink had issued two listed bonds valued at PKR 30.2 billion and PKR 60 billion. Moreover, as shown in figure 1, till 2007 company has highest number of customers and provide services in almost all cities in the country.

However, recently company had made some major changes in their business policies, such  as  no  more  mobile  data  and  call  offers/packages  for  prepaid   customers, company accept only post-paid customers and even they increased the cost for their monthly packages. This in result decreased the company performance in the context of customer satisfaction and company annual budget. Here is the company last five years' data, analyse the data using Attribute and Analytical view in SAP S/4 Hana and suggest solution.

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