MOBILINK JAZZ

Every organization, whether it is a multinational, private business,

government offices, etc. depend on its people. These people working as
General Managers must be trained and kept motivated, offered good
working environment and must be acknowledged at work.
Telecom industry is growing in Pakistan, with new companies getting
license the competition is tough as a result the consumer is getting
benefit and enjoying cheap call rates. With a population of 15 million
countries, telecom is one of the best revenue generated industry. As
voice over IP, web conferencing and online video sessions are becoming
popular these companies have bright future ahead.
Mobilink GSM, a subsidiary of Orascom Telecom, started its operations
in 1994, and has become the market leader both in terms of growth as
well as having the largest customer subscriber base in Pakistan - a base
of over 30 million and growing. We pride ourselves on being the first
cellular service provider to operate on a 100% digital GSM technology in
Pakistan that also provides state-of-the-art communication solutions to
its customers.
Mobilink offers exclusively designed tariff plans that cater to the
communication needs of a diverse group of people, from individuals to
businessmen to corporate and multinationals. To achieve this objective,
we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our
customers. Compared to our competitors, both the postpaid (Indigo) and
prepaid (JAZZ) brands are the largest brands of their kind in the
Pakistan cellular industry.
In addition to providing advanced voice communication services that
makes the lives of millions that much easy, we also offer a host of value-
added-services to our prized customers. At the same time, Mobilink
places high importance to its coverage, which is why we cover you in
8000+ cities and towns nationwide as well as over 120 countries on
international roaming service. In other words, we speak your language,
everywhere.

PRICING STRATEGY OF MOBILINK

It is well known brand of Mobilink. Previously Mobilink was offering Jazz
connection for about3000 rupees 5 years ago. Its market oriented
statement is “Aur Sunao” But through the passage of time\now Mobilink
is offering Jazz connections for about 100 rupees.
In 2002 Ufone which is one of the leading competitor of Jazz introduced
its prepay connection for about 2500 rupees. In 2005 Telenor came into
existence in Pakistani market and offered its connections for about 500
rupees. Then in 2005 Warid also entered the market offering its
connections for 250 rupees. In this way price war started between these
telecom brands in the market. Previously it was Jazz’s oligopoly as they
offered their prices. In 2005 Jazz offered a
cellphone+connection+prepaid card implementing a product-bundle
pricing strategy for creating more attention and attraction. The major shift
in the pricing strategy came in when they started 30.second operations
using the promotional pricing strategy.
In the early days Jazz was offering its sim-cards for a high-price using
captive-product pricing strategy as
its SIM-card is a main product that must be used along with the cell
phone.
Initially Jazz’s call rates and SMS charges were also reduced using
discount and allowance strategy and initially directing towards
promotional strategy as the competition between cellular brands in the
market grew faster.
Recently Jazz introduced its offerings of 0.99 per minute call rates in
their “happy hour package” which
represents their operations with the promotional as well as psychological
pricing of their services.
Through its happy hour package they are also operating with
promotional strategy as they are engaged in continuous promotion
through their offerings. Besides that Jazz adopted segmented pricing
strategy as they were charging different call rated from one city to
another but its competitors have emerged tremendously they have
responded efficiently towards their actions through cutting their pricing
mainly applying promotional and psychological strategy.

ATTRACTIVE TARIFF PACKAGES

Since liberalization of the cellular sector in Pakistan, the tariffs
declined tremendously. Telecom regulator used to regulate airtime tariffs
of cellular mobile operators through price-cap prior to liberalization and
did not allow operators to go beyond ceilings determined by PTA.
However, in competitive environment, the market forces are determining
the tariffs, which are, declining rigorously, the operators are targeting
different segments of the customers and offering concessions and
packages to these customers. Interestingly, the SMS seems more
attractive to operators for revenue generation where they offered lowest
tariffs during the quarter.
Mobilink Tariffs
Mobilink, an SMP operator has reduced its tariffs for different packages.
Recently, Mobilink has also introduced Jazz One package in which its
subscribers can call at very attractive rates. Mobilink has reduced off-net
tariffs of Jazz Budget, Jazz Octane and Jazz Ladies First packages in
February 2008. For Jazz Octane package, on-net tariff has been
reduced from Rs. 2.50 to Rs. 2.40 per minute whereas off-net tariff is
reduced from Rs.2.99 to Rs. 2.50 per minute. Similarly, off-net tariff for
Jazz Ladies First package has also been reduced from Rs. 2.99 to Rs.
2.50 per minute respectively.
Moreover, Mobilink introduced “Apna Jazz Connection ON Karein”
promotion which was specifically made for those who did not get the
chance to experience lowered Jazz tariffs. Mobilink posted an
unconditional Rs. 30 worth of balance for those who did not used Jazz
connection since March 15th. For SMS, Mobilink has offered three
different SMS packages (only from Mobilink to Mobilink) to its prepaid
customers where it has offered unlimited SMSes for one month for Rs.
100, 500 SMSes in 15 days for Rs. 50 and 100 SMSes for Rs. 15 in 7
days. Mobilink also introduced Club Red promot ion for it t s subscribers
who wanted red carpet treatment. Under this offer, Jazz subscribers who
crossed the monthly usage threshold of Rs. 1,000 got 50% discount on
all calls to Mobilink numbers for the remaining days of the month.

Recently, Warid Telecom has launched Pakistan Package wherein its

subscribers can avail 50 free on-net minutes and 500 SMS/MMS for Rs.
15.00 per day, Warid also launched SMS craze in which its subscribers
can send 2000 free SMS/MMS
(on-net as well off-net) at Rs. 150/-, Sunday craze is another promotion
by Warid in which subscribers can make unlimited free calls on Sundays
from 8 am to 12 pm at a weekly subscription of Rs. 15/-. In infinite craze,
Warid subscribers can make free calls from 12 am to 7 am to one Warid
number and unlimited SMS/MMS from 12 am to 7 am across Pakistan
with daily charge of Rs. 10/-. In the period of last few months Warid has
also offered number of value added service to its prepaid customers that
counts, Zem Talky, Zem committee.

Low Cost Strategy

Mobilink does not follow a low cost strategy. Mobilink is a giant in
Pakistani mobile industry Tel. Since it first started its operations, it has
been focusing its products on the upper strata of the society. That is why
its rates are higher than its competitors, Ufone, Warid, Telenor, etc.
 UFONE

Pricing Strategies
Ufone strategize to capture the existing pricing needs of its customers and use it well on

occasional or timely basis. For example Ufone offered very good call rates on

international calls in Eid days. It offered hourly call rates in Ramadan when people were

least likely to avail the offer that much that it might prove unprofitable for Ufone. It was a

fantastic strategy to beautify the brand image in term of pricing in customer’s minds as

well as remain profitable in doing so. Ufone follows market penetration pricing strategy

and dynamic pricing strategy to meet the customer needs and ever changing price

competition.

Cellular service providers are facing intense price competition in contemporary market.

Customers perceive pricing as the heart of brand selection. Price has always been the

core differentiation of Ufone. Ufone is the one who is offering least call rates off-

network.
Pricing Strategy

Telenor Communication entered in the market when the position of market was fully

rushed with competitors so they applied Price penetration pricing strategy to adjust in

Market and to compete with cellular companies of Pakistan.

Fixed and mobile voice represents two-thirds of Telenor’s revenues and

the strategic focus is to keep or improve our voice positions. We will do
this through churn-reducing initiatives like attractive price plans that
target customer segments more precisely, and new distribution
concepts.

In addition to defending and growing our voice revenues, the focus will
be on capturing the significant growth potential coming from data and
Internet. Within our footprint, we will increase our focus on small-screen
data services by leveraging netbooks (small PCs) and mobile phones as
access devices.

Additionally, we will develop sustainable mobile broadband business and

pricing models.

Telenor sees the potential for value-added services to support our core
voice and data services. We are likely to succeed with services that
leverage our key telecom network, technology skills, customer base, and
distribution strengths.
Telenor’s two main priorities are in the areas of Machine-to-Machine
(M2M) communication and in providing a select set of financial services
to the un- and under-banked population in our emerging markets.

Outside the Nordic countries, Telenor positions itself more as an access

provider and service enabler than a full-service ICT and integrated
media and telecoms company. We control many valuable assets that
can be further developed and exploited together with third-party
developers and content producers to defend and expand our core
revenues.By opening up communications enablers to third parties and
allowing them to integrate with their software and Internet services,
Telenor will grow revenues in adjacent industries as well as increase
demand for our core voice and data services.

The next three years may present attractive consolidation opportunities

in our regions. Telenor will need strategic and financial flexibility to
exploit these opportunities.
 Pricing Strategy

Warid also adopted promotional pricing strategy but they had not reduces their rates

much as their main target is to attract businessman , doctors , industrialist and

foreigner. they mainly focus on low rates on International calls rather than in Town.

They settled in tight market very fast because of their services and International call

packages as its slogan says WE CARE.