Print

Comment

Email

Digg

Del.icio.us

Reddit

Telenor started its Pakistan operations in 2005, and since then it has witnessed a huge rise in customer base and services. The company focused more on segment approach and high quality of service, which forced other operators in Pakistan to look at the customer-centric business model. Telenor is playing aggressively on the value-added services and rural market with requirement-based schemes. Due to its aggressive market strategy, Telenor has become the third largest operator in Pakistan during this short period. Irfan Wahab Khan, executive vice president, corporate and regulatory affairs, Telenor Pakistan, shares his views and the future roadmap in an exclusive interview with VOICE&DATA. Excerpts:

How is Telenor shaping up its business in Pakistan?
Telenor Pakistan launched its operations in March 2005 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. In a little over two years, we have grown to become a leading telecom operator in the country. In FY'06, we achieved nearly 200% growth in our subscriber base-the highest in the industry by a wide margin.

We are the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. We are spread across Pakistan, creating 2,200 direct and 20,000-plus indirect employment opportunities. We have a network of 15 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets.

What products and services has Telenor introduced?
Telenor is the first company to introduce prepaid recharge coupons of low denominations. A larger segment of the market is financially constrained and is using prepaid services. Therefore, a recharge coupon of Rs 10 will serve their purpose at times.

We have also introduced international roaming on prepaid services. Apart from that, around nine months ago we introduced Mobile TV, which has become a big hit. We are also the largest operator in the market with international roaming facilities both on prepaid and postpaid services.

What is the uniqueness, in terms of offerings to consumers?
We have tried to understand the requirement of the market based on different parameters, and subsequently built up our services. We have taken the segment approach. There is an unlimited validity plan for the weaker section. We offer lower recharge denomination, mobile content like movies, songs, and ringtones for the youth. There is a 'Talkshawk' plan with amazing call rates to provide flexibility to customers. This segment approach has really worked wonders and now others are following the trend. We definitely study the requirements of customers when it comes to innovation.

How do you see the status of rural telephony in Pakistan?
Around 60% of the total market in Pakistan has been covered, the not covered 40% largely includes rural areas. The rural market is as promising as the urban market and, at some places, even better. There is one set of rural customers whose affordability is better than that of customers in urban areas and they provide better ARPU. One strong reason is that they don't have multiple access. They don't have phone at offices, at their homes, and they don't have various other entertainment avenues available to people in urban areas.

Do you have a specific rural strategy to tap this market?
We consider the rural market as a big growth area, and we have extensively tried to cover the maximum landscape. It always gives you an edge when you are the first or the second operator to start a service in a particular region. The response from the newer region is very encouraging. We started a scheme "Apna PCO", a shared access to voice for an area where mobile affordability is not a feasible model. It has been launched in over 100 villages. There are 200 small entrepreneurs who have taken the service to remote areas and are now earning their livelihood.

It has provided mobile access to more than 62,000 rural households, and has provided rural entrepreneurs with a new business opportunity.

We also offer shared access to data in these areas. We are setting up community information centers, cyber cafes, where all set of data access is available at a nominal cost. Called Telenor Rabta Centers, these community information centers offered all modern communication facilities under one roof. All this is happening through our extensive wireless network.

The services used Telenor Pakistan's pre-configured GPRS and high-speed EDGE network, which is the country's largest, to help bridge the digital divide. Therefore, even if you are traveling on a highway in some remote location, you can connect to the Internet very easily and do all possible things required.

The efficiency and productivity of a population increases with easy access to ICTs, thus contributing to their well-being and prosperity. The poor are individually poor, but collectively they have the ability to buy services that will increase their productivity and generate economic activity. We just need to give them a fair chance. Both initiatives were executed in partnership with the GSMA Development Fund.

What initiatives have you taken on the mobile content front?
We provide need-based content catering to different segments. For the youth, we offer content like ringtones, songs, and movies. For rural customers we have introduced 'Tele Kissan', which is a voice-activated information-based SMS service. They get voice messages on local mandi rates, weather forecast, and instructions about farming.

How is the telecom market in Pakistan positioned in comparison to other SAARC countries?
The conditions in the entire SAARC region are similar. In rural telephony, we have common challenges and the environment is almost similar. I think, with cooperation among all the SAARC countries, we can create a better tele-ecosystem. In terms of focus, it is very important for us to work on a theme.

We need to challenge each other with supportive ideas and more interaction. Joint associations like the STAC forum can really play a vital role in developing a consensus among the SAARC countries. What we really need to do is involve regulators and government bodies actively in this development cycle. We have all the fundamental things in place and now we need to build up a healthy competitive environment.

How do you see the growth in the Indian telecom market? Any plans regarding associations with the Indian counterparts?
India is quite an interesting market. The growth registered by India in recent years is phenomenal. It clearly stands as a business model to be followed by other third world countries. Together, India and Pakistan can create an economy of scale, especially on content. Bollywood content is very popular here in Pakistan. We can see what is in demand and pick up the best of both worlds and see how we can synergize it in terms of VAS. At present, we have no specific plans to associate with any Indian company, but we are open to such things in the future.

Kumar Anshuman
anshumank@cybermedia.co.in