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Thursday, 19 July 2012
Mobilink Internship Report
Internship Report for Mobilink
Submitted By:
Syed Hamid Shah
BBA (Hons)

Table of Contents
1 Executive Summary
2 Introduction
2.1 Central Background Information
2.2 Company Background
3 Company Analysis
3.1 Operation Analysis
3.1.1 Network
3.1.2 Operational Departments
3.1.3 Subscribers and Market Share
3.2 Financial Analysis
3.2.1 Operational Results
3.2.2 Balance Sheet Results
3.2.3 Ratio Analysis
3.3 Human Resource Assessment
3.4 Marketing Analysis
3.4.1 Electronic Media
3.4.2 Print Media
3.4.3 Advertising Agency and Brand Ambassadors
4 Environmental Analysis
4.1 Industry and Market Analysis
4.1.1 Major Product Lines Market Segment
4.1.2 Growth Rate of Entire Industry
4.2 Competitor Analysis
4.2.1 Major Competitors
4.2.2 Their Market Shares
4.2.3 Their Goals and Strategies
4.3 Technology Analysis
4.3.1 Technical Methods That Affect the Industry
4.3.2 Innovation
5 Department Worked During Internship
5.1 Activities Done Within Cash Management Department
5.1.1 Daily Activities
5.1.2 Occasional Activities
5.1.3 Month End Activities
5.2 Tasks Performed During Internship
5.2.1 Daily Activities
5.2.2 Occasional Activities
5.2.3 Month End Activities
6 Identification of a Main Problem and Findings
6.1 Job Rotation and Advancement
7 Conclusion
8 Recommendation
9 Appendix
9.1 Web Resources
9.2 Reports
9.3 Organizational Structure (Extract)
Table of Illustrations
Figures
Figure 1: Comparative Figures of Coverage & Cell Sites
Figure 2: Print Advertisements of Mobilink
Figure 3: Products Offered By Different Mobile Companies
Figure 4: Growth Rates in Mobile Industry 2005-July 2008
Figure 5: Segmentation of Total Subscribers in July 08
Figure 6: Segmentation of Total Subscribers in December 07
Tables
Table 1: An Overview of Mobilinks Network
Table 2: Number of Mobilink Subscribers from 2005-July 2008
Table 3: Market Shares of Mobilink from 2005-2007
Table 4: Profit Comparison between 2007 & 2006
Table 5: Balance Sheet Comparison between 2007 & 2006
Table 6: Current Ratio Comparison between 2006 & 2007
Table 7: Fixed Assets Turnover Comparison between 2006 & 2007
Table 8: Debt Ratio Comparison between 2006 & 2007
Table 9: Return on Common Equity Comparison between 2006 & 2007
Table 10: Designations of Mobilinks Employees
Table 11: List of Brand Ambassadors of Mobilink
Executive Summary
The mobile industry of Pakistan has seen phenomenal growth in recent years. The
total mobilesubscribers in 2007 were more than 63 million, a growth of more than 80% from the
previous year. The telecom sector of Pakistan was deregulated in 2003, and mobile industry
being a part has seen phenomenal growth ever since. Many analysts believe that Pakistan is one
of the fastest growing telecom markets in the world.
Currently there are six diverse companies making the mobile industry of Pakistan, Mobilink
being one of them. Other companies include Ufone, Telenor, Warid, Zong and Instaphone.
Mobilink enjoys being the market leader with a 36% market share as of July, 2008.
Pakistan Mobile Communications Limited (PMCL) launched its operations in August 1994,
under the brand name of Mobilink. Initially it was a joint venture between Motorola and the Saif
Group. Later on in April 2000, Orascom Telecom bought 38.6% stake in PMCL, later increasing
it to 68.69%. In April 2001, Orascom Telecom took over management control of the company
and as of December 31
st
, 2007, Orascom Telecom owns 100% of the share capital of Mobilink.
Mobilink offers both postpaid (Indigo) and prepaid (JAZZ) solutions to their customers.
Mobilink was awarded a 15-year license in July 1992 to establish and operate a digital cellular
telecommunication system using the GSM 900 standard. Mobilink has been growing its network
ever since, providing 2G, 2.5G, GPRS and EDGE compatibility. Mobilink is committed in
providing the best network to their customers, which in recent times has expanded to more than
9000 cities and reaches over 66% of the total population and 99% of the urban population as of
December 31st, 2007.
Pakistan Mobile Communications Limited (PMCL) or Mobilink is currently headed by President
and CEO Zouhair A. Khaliq. Mobilinks headquarter is located in Islamabad and has eight
different departments. All major decisions regarding Mobilink are taken centrally in Islamabad.
To assist with the operations, operational departments are further located in all four regions,
including north, south and AJK.
Mobilinks finances are as strong as its operations and customer base. For the year ended
December, 2007, the total profit after taxation was more than Rs 4bn. Furthermore Mobilinks
fixed assets have shown a rise in 2007, so have the long term liabilities and shareholder equity.
Mobilink being the market leader is also able to attract the most talented professionals. Its
current employee force consists of more than 4500 unique individual. Mobilink hiring takes
place through its website and is know for offering competitive packages to its employees.
Furthermore, it training and appraisal programs are an essential part of the HR department.
Attracting customers is a tough job and that is why the marketing department of Mobilink
develops a number of marketing campaigns to attract customers. Furthermore it also takes the
help of a leading advertising agency of Pakistan and uses brand ambassadors from various walks
of life to promote its products and services.
The mobile industry provides three major product lines, which include the consumer packages,
value added services and corporate packages. The consumer packages include the postpaid and
prepaid packages; the value added services provide entertainment, information and a lot more to
their subscriber, while the corporate packages have been introduced to cater to the needs of large
businesses and corporate clients.
The mobile industry of Pakistan has witnessed phenomenal growth periods over the years. As of
July 2008, the growth rate of the entire industry was more than 40%. There are four major
competitors of Mobilink. Ufone is the closest with a market share of 21% in July 2008, followed
by Telenor with 20%, Warid by 18% and Zong by 5%.
I did my eight weeks internship at the cash management department within Mobilink Treasury.
Some of the work that I did during my internship includes making the cash position, making
transfer letters, making encashment and international payments and working to open new
accounts of Mobilink.
The main problem that I identified during my internship period was the lack of job rotation
within the department and not keeping up with the policies of job advancements. Some of the
suggestions in this respect were the introduction of compulsory job rotation within department,
introducing job specific training to employees and adhering to the criteria laid out by the HR
department for job advancements in complete faith.
Lastly I would say that Mobilink became the market leader by introducing new products and
services that took full advantage of new technologies over the years and I hope that it will tend to
do so in the coming future and provide stiff competition to any challenger that poses a threat to
its leadership in the market.

1.1 Introduction
1.1.1 Central Background Information
The telecom sector of Pakistan has seen phenomenal growth over the past few years. According
to the Pakistan Telecommunication Authority (PTA), the total mobile phone subscribers in 2007
were more than 63 million, a growth of more than 80% from the previous years. During 2006-07,
the mobile sector generated Rs 133 billion in revenues, an increase of 48% from the previous
years and contributed Rs 63 billion to the national exchequer in terms of taxes and regulatory
fees. The telecom sector contributed 2% to the GDP in 2005-06 and received more than $1.8
billion in foreign direct investment (FDI) in 2006-07 , which is 35.6% of the total FDI in that
period. Furthermore, the telecom sector has also created over one million in jobs, since its
deregulation, making Pakistan one of the worlds fastest growing telecom markets.
The Pakistan Telecommunication Ordinance 1994 established the primary regulatory framework
for the telecommunication industry including the establishment of an authority. Thereafter,
Telecommunication (Re-Organization) Act no XVII was promulgated in 1996 that aimed to
reorganize the telecom sector of Pakistan. Under Telecom Reorganization Act 1996, Pakistan
Telecommunication Authority (PTA) was established in January 1997 to regulate the
establishment, operation and maintenance of telecommunication systems, and the provision of
telecom services. The telecom sector was deregulated in 2003[1].
Currently there are six mobile operators operating in Pakistan, which include Mobilink, Ufone,
Telenor, Warid, Zong and Instaphone. Mobilink started its operations in 1994 as the first GSM
cellular mobile service in Pakistan, started by Motorola Inc. Later it was sold to Orascom, an
Egypt-based multi-national company. Mobilink is the largest cellular service provider in
Pakistan. Another company, Pakistan Telecommunication Mobile Limited (PTML) is a wholly
owned subsidiary of PTCL, established to operate cellular telephony. The company commenced
its operations, under the brand name of Ufone from Islamabad on January 29 2001. Later, as a
consequence of PTCLs privatization, 26% of its shares were acquired by Emirates
Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone had
also been handed over to Etisalat.
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia. 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 2004,
Warid Telecom International LLC, purchased a license for operating a nationwide mobile
telephony network, (WLL) and long distance international (LDI) for $291 million US dollars and
was the first venture of Warid Telecom International LLC. Warid Pakistan launched its services
in May 2005. On June 30th, 2007, Singapore Telecommunications Limited (SingTel) and Warid
Telecom announced that they had entered into a definitive agreement subsequent to which
SingTel will acquire a 30% equity stake in Warid Telecom for an estimated $758 million.
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas
set up of China Mobile came through acquisition of a license from Millicom to operate a GSM
network in Pakistan. Millicom had initially bought Paktel in 2003 from Cable & Wireless. Paktel
was the first ever company granted license to carry out cellular phone services in Pakistan.
Currently CMPak is operating in Pakistan under the brand name of Zong. Instaphone is another
telecommunication company in Pakistan. Instaphone was one of the pioneers of cellular industry
in Pakistan. Initially the company was owned by Millicom International; later on Arfeen Group
acquired it. Currently, the license of Instaphone has been terminated due to non payment of
license fee to PTA. The company under a renewed license is planning to role out a countrywide
CDMA mobile network and would be the only CDMA mobile operator in Pakistan to launch
first 3G services in Pakistan.
1.2 Company Background
Pakistan Mobile Communications Limited (PMCL) operates the leading GSM network in
Pakistan and provides a range of prepaid and postpaid voice and data telecommunication
services to both individual and corporate subscribers, under the brand name Mobilink.
Mobilink launched its operations in August 1994 after it was founded in 1990 as a joint venture
between Motorola and the Saif Group and awarded a license for mobile telecommunication
system and services in July 1992. Later on in April 2000, Orascom Telecom bought 38.6% stake
in PMCL, which it later in February 2001 increased to 68.69% by purchasing Motorolas share
in PMCL and becoming the major shareholder of the company. In April 2001, Orascom Telecom
took over management control of the company. As of December 31
st
, 2007, Orascom Telecom
indirectly owns 100% of the share capital of Mobilink through direct stakes held by wholly
owned subsidiaries of OTH. By December 2007, Mobilink had achieved 39.8% in market share,
making it the market leader in the mobile sector of Pakistan[2] and had a customer base of more
than 32 million by July 2008[3].
Mobilink offers exclusively designed tariff plans that cater to the communication needs of a
diverse group of people, from individuals to businessmen to corporates and multinationals. To
achieve this objective, Mobilink offer both postpaid (Indigo) and prepaid (JAZZ) solutions to
their customers.
Mobilink was also the first cellular service provider to operate on a 100% digital GSM
technology in Pakistan and also provides state-of-the-art communication solutions to its
customers. Mobilinks network is the most extensive in Pakistan, connecting more than 9000
cities across Pakistan, as well as over 120 countries on international roaming service.
Furthermore it reaches over 66% of the total population and 99% of the urban population as of
December 31st, 2007. Mobilink is also developing its own optic fiber backbone, to provide its
customers with highest level of voice and data quality with more reliability[4] and has invested
more than $2.5 billion in its networks.
Mobilink Vision
"To be the leading Telecommunication Services Provider in Pakistan by offering innovative
Communication solutions for our Customers while exceeding Shareholder value & Employee
Expectations".
Mobilink's Values

Total Customer Satisfaction
Customers are at the heart of our success. They have placed their trust and confidence in us. In
return, we strive to anticipate their needs and deliver service, quality and value beyond their
expectations.
Business Excellence
We strive for excellence in all that we do. We aspire to the highest standards and raise the bar for
ourselves everyday. This commitment to delivering world-class quality translates into unmatched
service and value for our customers and all stakeholders.
Trust & Integrity
At Mobilink, we take pride in practicing the highest ethical standards in an open and honest
environment, and by honoring our commitments. We take personal responsibility for our actions,
and treat everyone fairly, and with trust and respect.
Respect for People
Our relationships drive our business. We respect and esteem our employees and all stakeholders.
We believe in teamwork, empowerment and honor.
Corporate Social Responsibility
As the market leader, we recognize and fulfill our responsibility towards our country and the
environment we operate in. We contribute to worthy causes and are dedicated to the
development and progress of the society
2 Company Analysis
2.1 Operation Analysis
2.1.1 Network
Mobilink was awarded a 15-year license in July 1992 to establish and operate a digital cellular
telecommunication system using the GSM 900 standard and to offer telecommunication services
in Pakistan. Before that, all previous operations were using the AMPS technology. Since then
Mobilink has been growing its network, providing 2G, 2.5G, GPRS and EDGE compatibility.
Mobilink was the first operator to start rolling out the Enhanced Data Rates for Global Evolution
(EDGE) in Pakistan. In addition, Mobilink also launched its BlackBerry service in December
2005 through its GPRS platform. Furthermore, Mobilinks license was renewed on July 6th,
2007 for a further period of 15 years[5].
Mobilink is committed in providing the best network to their customers, which in recent times
has expanded to more than 9000 cities and reaches over 66% of the total population and 99% of
the urban population as of December 31st, 2007[6].
Table 1: An Overview of Mobilinks Network[7]

Not only is Mobilinks network very modern and technologically advance, but it is also very
competitive, when compared to other mobile networks.
Figure 1: Comparative Figures of Coverage & Cell Sites[8]

2.1.2 Operational Departments
Mobilink is headed by President and CEO Zouhair A. Khaliq, who reports directly to the
Chairman and CEO of Orascom Telecom Naguib Sawiris. Furthermore the operations of
Mobilink are divided into eight different departments, which are as follows:
1. Human Resource
2. Administration and Security
3. Sales
4. Marketing
5. Customer Services
6. Corporate Affairs
7. Technical
8. Finance
Furthermore, these departments are further divided into sub departments to ease operations
within Mobilink. Also all major decisions are taken centrally, in Islamabad. These decisions for
example include, the financing required by Mobilink (local and foreign), decisions regarding
import of goods etc.
Furthermore, to assist the operations of Mobilink, which include more than 500 franchises and
16 Customer Services Centers, operational departments are located in all the four main regions:
1. North
2. South
3. Central
4. AJK
2.1.3 Subscribers and Market Share
Mobilink had a great advantage for years as being the only GSM mobile operator in Pakistan,
however with the entrance of Ufone in 2001 and later on by Telenor, Warid and Zong, the
competition in the mobile sector is heating up. However the subscriber base Mobilink has
remained steady and growing as seen in the table below:
Table 2: Number of Mobilink Subscribers from 2005-July 2008[9]
Although the number of subscribers has increased over the years, the same cannot be said about
the market share of Mobilink, which has gradually decreased over the year. However, although
the market shares of Mobilink might have decreased over the years, but it still remains the
market leader in the mobile sector. The market shares of Mobilink are as follows:
Table 3: Market Shares of Mobilink from 2005-2007[10]
2.2 Marketing Analysis
In todays contemporary business world, marketing plays an important role. Mobilink that has a
number of competitors in the mobile industry, need to use their marketing plan and strategies
effectively to attract customer loyalty.
The marketing department at Mobilink anticipates, and satisfies the customers communication
needs. This includes consumer behavior research and translating this research into services and
pricing plans. The Marketing team also helps in identifying new business opportunities and
develops plans to exploit those profitably. It also designs and implements brand strategies and
communication plans.
The major ways in which Mobilink markets itself and its products are through the following
ways:
Electronic
Print
Year 2005 2006 2007 July-2008
Subscribers 7,469,085 17,205,555 26,466,451 32,056,336
% Change - 130.3 53.8 21.1
Years 2005 2006 2007
Market Share 51.4% 46.3% 39.8%
Change - (5.1%) (6.5%)
2.2.1 Electronic Media
The major way in which todays organizations promote its products and services is through
television, not only because its economical but also because the visual and audio aids help in
promoting its product.
Mobilink uses an aggressive advertising campaign on television to promote its products. These
advertisements, while communicate an image of modernity and newness, still tend to show the
heritage of Pakistan. The heritage of Pakistan and its people signifies Mobilink, as being the
favorite cellular company of Pakistan.
Mobilink has also for years, has tried to create different personalities for its brands: Indigo and
Jazz, to distinguish them from other competing brands. Mobilinks Indigo brand relied heavily
on two factors toward establishing its brand equity: brand ambassadors that exuded style and
sophistication, and a unique classy look that permeate all forms of its Indigo brand
communication. It also played on the aspirations of young business professionals through the
atmosphere and the locales of Indigos ads.
On the other hand, the Jazz brand creates an image of fun, catering more to the youngsters and
teens of the country. Not only that, it has also over the years created an image of bond among the
members of the Jazz members, achieved due to the lowest rates and packages that Jazz has to
offer. With Jazz advertisements, its all about having a show and tell tableau.
Other ways, in which Mobilink is marketing its products, is through its website and radio. The
website of Mobilink is built in a way to provide updated information about its products, with
dedicated pages for both its brands, Indigo and Jazz. Furthermore, the website also contains a
gallery feature, from where users can view a wide array of print and television advertisement,
created by Mobilink over the years. The use of Radio has also been used to promote the packages
of Mobilink. Advertisement on radio, mostly inform listeners on the new packages and their
details.
2.2.2 Print Media
Print advertisements are another major way in which Mobilink advertises its product to the
masses. Print media advertisements are printed in major English and Urdu newspapers across
Pakistan. The messages of these advertisements are mainly of new packages that Mobilink may
introduce over time.
Figure 2: Print Advertisements of Mobilink[11]

2.2.3 Advertising Agency and Brand Ambassadors
Mobilink uses the services of International Advertising (Pvt) Limited (IAL) SAATCHI &
SAATCHI. IAL was established in 1966. IAL clients include PIA, P&G, Devan Mushtaq Motor
Company (DMMC), PSO, Engro Foods Limited, National Foods and Sony Ericsson etc.
Furthermore, it became the first agency to affiliate itself with an international agency- SAATCHI
& SAATCHI, a top player in the global advertising arena[12].
Furthermore, Mobilink uses its brand ambassadors to promote its products in both the electronic
and print media. These brand ambassadors come from the fields of acting, modeling, singing and
cricket and are few of the most famous and talented stars of Pakistan. The brand ambassadors are
as follows:
Table 11: List of Brand Ambassadors of Mobilink
Name Profession Brand Being Promoted
Iman Ali Model Jazz
Wasim Akram Cricketer Jazz
Vaneeza Ahmed Model Indigo
Zainab Qayum Model Indigo
Shan Actor/Model Indigo
Strings Singers Mobilink World
Furthermore, stars like Shahid Afridi, Shoaib Malik, Shakeel, Behroze Sabzwaari, Sunita
Marshall and Samina Pirzada have also appeared in Mobilink advertisements, from time to time.
Environmental Analysis
2.3 Industry and Market Analysis
2.3.1 Major Product Lines Market Segment
Mobile Industry has been very effective in introducing new and innovative products and services
over the years. The major product lines can be segmented into, three categories, which are as
follows:
1. Consumer Packages
2. Value Added Services
3. Corporate Packages and Services
These product lines have a range of different services, catering to different market segment.
2.3.1.1 Consumer Packages
The consumer packages of the mobile Industry include the prepaid and postpaid packages being
provided by the different cellular providers of Pakistan.
Prepaid packages, due to their nature is the most common type of package being used today by
millions of Pakistanis. Prepaid packages provide a sense of affordability, whereby consumers
have the option of only recharging their accounts, when needed. This affordability has led to a
massive increase in the prepaid subscriber base, with everyone from housewives to teenagers; to
electricians to small shop owners all using prepaid packages. The main user segments of prepaid
packages include the lower, middle and middle upper class of the country. Furthermore, a
number of people use prepaid packages as a second number, which also include people from the
upper class..
Mobile companies today have used immense popularity of prepaid packages to introduce
packages that are targeted to different segment. These include Telenors Djuice, targeted towards
teenagers and young individuals and Mobilinks Ladies First, targeted towards house wives.
Furthermore, packages that bill at 1min, 30 second and per second have also been introduced by
mobile companies.
Postpaid packages were introduced, keeping in mind, the businessmen and executives. Postpaid
packages, due to their nature provided the benefits of connectivity 24/7, without the fuss of
scratch cards and recharge of accounts. Furthermore, as competition rose in the mobile industry
and new entrants came; postpaid packages were made more affordable. The work of Warid in
this concern is an example, creating postpaid packages as affordable as prepaid ones. The main
market segments, towards which the postpaid packages are targeted, include small and medium
businessmen, industrialists, bureaucrats and people of the upper class. However with the
affordability of postpaid packages, people from the middle class have also been seen using post
paid packages.
2.3.1.2 Value Added Services
Value Added Services have become an essential tool for generating revenues for mobile
companies today. Starting in the early years, from wallpaper and ringtones download, today
mobile companies provide a range of services to their customers.
Some of the popular services include, religion services, music services, which includes song
dedication, voice and timed messages, sports and cricket services, food and recipe services,
WAP/GPRS/EDGE, themes, wallpapers, games and ringtones downloads, credit share, MMS,
voice mail, email, missed call alert, conference call, mobile TV, web2sms and many more.
Value added services have been designed by companies, so that there are services for every
segment of their users and that these services completely satisfy them, as and when needed.
2.3.1.3 Corporate Packages and Services
Cellular providers in Pakistan are also providing corporate clients with services catered to
them.Corporate clients due to their huge operations have special requirements. Mobile packages
and tariffs; secure email and instant web connectivity, being some of the most important issues.
Today mobile companies provide BlackBerry solutions, Mobilink and Warid being forefront in
this technology, furthermore to add to this innovative service, companies today are providing
SMS marketing feature, SMS management facility, fax mail, Wireless connectivity through
EDGE, private numbering plans, closed user groups and mobile email to their corporate clients.
All above features and many more have helped corporate clients to manage their operations
effectively and efficiently.
Figure 3: Products Offered By Different Mobile Companies





2.3.2 Growth Rate of Entire Industry
The mobile industry has seen phenomenal growth over the years. Today there are five major
competitors competing for their subscriber base, increasing the services provided, reducing their
call rate and having aggressive marketing campaigns. Simply put, competition is heating up in
the mobile industry.
In July 2008, according to Pakistan Telecommunication Authority (PTA), the total subscriber
base in the mobile industry reached to more than 89 million to 89,325,296. This was an increase
of 41.4% from December 2007. Although this is phenomenal growth, analysts believe that it
mould be even higher, if taxes would have not increased, in the financial budget.
The mobile
industry has seen phenomenal growth over the years, as seen below:
Figure 4: Growth Rates in Mobile Industry 2005-July 2008



As the above figure shows, the mobile industry saw phenomenal growth from 2005-2006.
According to PTA, on average 2.3 million subscribers were added every month during 2006-07.
Furthermore, in 2003-04 the sector was offering 466,068 direct and indirect employments, which
in 2006-07 more than doubled to 1,366,698 employments. Also the cellular mobile density or
mobile penetration in the total population has also increased over the years. In July 2008, the
mobile density reached 55.62%. It was 54.7% in Dec 2007 and 39.94% in Dec 2006, according
to official figures.
Also during 2006-07 the revenue of mobile industry was Rs.133 billion, an increase of 48% from
pervious year
However, none the less, the growth has subsided since 2006, from 170.2% in December 2006 to
80.7% in December 2007, the major reasons of which include the crackdowns on SIM
registration, rising taxes and the general economic conditions of the country.
2.4 Competitor Analysis
2.4.1 Major Competitors
2.4.1.1 Ufone
Pakistan Telecommunication Mobile Limited (PTML) is a wholly owned subsidiary of PTCL,
established to operate cellular telephony. The company commenced its operations, under the
brand name of Ufone, from Islamabad on January 29, 2001. Since its inception, Ufone changed
the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable
by the common man. Ufones primary focus always remained on their valuable customers,
introducing services over time to fulfill their need and demands. Ufones slogan has always
remained Its all about U.
As a consequence of PTCLs privatization in 2006, 26% of its shares were acquired by Emirates
Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has
also been handed over to Etisalat. Now, under the management of Etisalat, Ufone tends to
concentrate on customer needs and benefits and its management is even more determined than
ever to be the leading cellular player in the market, because Ufone has been known for providing
superb propositions and quality service to its customers and tends to keep that reputation in the
future.
Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base
of over 18 million in July 2008, according to PTA and a market share of 21% during the time
period. Currently, Ufone has network coverage in more than 750 cities, towns and across all
major highways of the country. It also provides international roaming to more than 195 live
operators across 119 countries.
Currently Ufone is under the agreement with Huawei, which will provide its future-oriented
EnerG GSM solution to expand Ufone's network to cover over 2200 cities, towns, villages and
all major highways in the country. The network also allows Ufone subscribers to enjoy high-
speed wireless data service and enables the telecom service provider to evolve into 3G smoothly.
2.4.1.2 Telenor
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together
with Thailand, Malaysia and Bangladesh. Telenor acquired the license for providing GSM
services in Pakistan in April 2004, and had launched its services commercially in Islamabad,
Rawalpindi and Karachi on March 15, 2005 and on March 23, 2005 Telenor started its services
in Lahore, Faisalabad and Hyderabad. Telenors investment in Pakistan is the single largest
direct European investment in Pakistan.
By the end of July 2008, the total subscribers of Telenor exceeded 18 million, with a market
share of 20%. Telenors network covers more than 3000 cities, towns and highways throughout
Pakistan.Furthermore, Telenor Pakistan has more than 5,000 cell masts throughout Pakistan,
making it the 2
nd
largest network in Pakistan and 3
rd
in terms of customer base.
Telenor has a strategic alliance with Nokia Siemens Networks for expansion in Pakistan. With
USD 1 billion already invested, Telenor has extended agreements with its vendors, including
Nokia Semens for network expansion and services until 2009. The agreements will result in
USD750 million worth of orders from Telenor Pakistan.
2.4.1.3 Warid
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. In 2004, Warid
Telecom International LLC, purchased a license for operating a nationwide mobile telephony
network, (WLL) and long distance international (LDI) for $291 million US dollars and was the
first venture of Warid Telecom International LLC. Warid Pakistan launched its services in May
2005 and is based in Lahore.
Abu Dhabi Group is one of the largest business groups in the Middle East and the single largest
foreign investor in Pakistan. Abu Dhabi Group entered into a strategic alliance with Singapore
Telecom. Subsequent to this transaction in July 2007, telecom giant SingTel acquired 30%
percent equity stake in Warid Telecom, Pakistan, for US$758 million- valuing the company at an
enterprise value of $2.9 billion. This partnership is part of a strategy to support Warid Telecoms
continued growth and to enhance its market position.
In July 2008, Warids total subscribers were more than 15 million subscribers and enjoyed
4
th
position in the market with a market share of 18%. In June 2008, Warid Telecom announced
it would invest $1.5 billion by end of this year and $2.5 billion by end of 2009 to expand and
modernize its network in Pakistan.
2.4.1.4 Zong
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas
set up of China Mobile came through acquisition of a license from Millicom to operate a GSM
network in Pakistan. With ambitious plans to cater to the fastest growing Pakistani market and to
win over the ever demanding Pakistani customer, CMPak's edge comes from the experience and
expertise of running the world's largest telecom service and the commitment they make to setting
quality and customer relations standards. ZONG is the first International brand of China Mobile
being launched in Pakistan.
On 22
nd
January 2007, Millicom International Cellular S.A. announced that it would sell its
88.86 percent stake in Paktel Ltd. to China Mobile for $284. On 4th May 2007, Paktel was
renamed to CMPak and then, on 16th May 2007, China Mobile announced that it had upped its
stake in CMPak to 100%. It later rebranded branded Paktel to Zong.
In July 2008, the total subscribers of Zong were more than 4 million and enjoyed 5
th
position in
the market with 5% share in the market. So far CMPak has invested more than US$ 700 million
in the telecom sector in Pakistan and an additional US$ 800 million will be invested till the end
of year 2008.
2.4.2 Their Market Shares
According to official figures in July 2008, there were a total of 89m subscribers (89,325,296) in
the mobile industry, Ufone had 18 million (18,368,074) subscribers and was second in market
share to Mobilink, followed closely by Telenor with 18,329,428 subscribers, a difference of just
38,646 subscribers. This difference was 3,312,712 subscribers at the end of 2007. Warid was
forth with 15 million (15,774,299) subscribers. Warid has also lost to Telenor in terms of market
share since 2006, when it was third in the industry. In July 2008, Zong had 4 million (4,446,024)
subscribers and was fifth overall. Instaphone had only 351,135 subscribers during this time.

Figure 5: Segmentation of Total Subscribers in July 08
In 2007, Ufone still remained second (14,014,044) in terms of mobile subscribers and Telenor
third (10,701,332), followed closely by Warid (10,620,386), which remained forth. Zong was
fifth (1,024,563) and Instaphone sixth (333,081). The total subscribers in 2007 were 63 million
(63,159,857).

Figure 6: Segmentation of Total Subscribers in December 07
2.4.3 Their Goals and Strategies
2.4.3.1 Ufone
Ufone is one of the major competitors of Mobilink and has sustained a good market share over
the years. It has remained second overall for a number of years. However just recently, Telenor,
which had gained third position in 2006, in the industry, is giving strong competition to Ufone
and even achieved second position in the first quarter of 2007.
The main goal of Ufone is to provide its customers with the most effective and efficient manner
of communication. The main goal of Ufone has always been of providing its customers with the
state of the art services at the most simplest rates in the industry. Its goals have always revoloved
around U (its customers), which can be seen in its punch line or slogan its all about U.
Furthermore, by accomplishing its goal, Ufone would be able to sustain its market share in the
industry and remain in the second position and defend its position from competitors like Telenor.
The main strategies of Ufone to accomplish their goals surround around providing services that
fulfill the needs of the society at all levels of the society. Ufone was the first mobile company to
stop charging for incoming calls, first to introduce GPRS, first to start bundle SMS packages and
recently its call rates have greatly reduced and have become even simpler. Furthermore its
commitment can also been seen from the fact that its slogan of its all about u has not changed
over the years.
2.4.3.2 Telenor
Telenor since its inception in 2005, has been an aggressive company, trying to gain market share
from other competitors, first it took the third position from Warid (another company that started
in 2005) in 2007 and is now giving stiff competition to Ufone (currently second[13]) and is
favorite in gaining the position from its rival company.
The main goal of Telenor is to help its customers get the full benefit of communications services
in their daily lives. This is also reflected in their vision, which is were here to help. The main
goal of Telenor is to provide services, which take use of the latest technologies and are also new
to the industry, thus providing their customers with the full benefits of communications, which
other companies are not able to provide. Telenors slogan or punch line also reiterates their goal
which is the smart call. Henceforth, by accomplishing its vision, Telenor would be able to take
the second position in the industry and can then provide competition to the market leader-
Mobilink.
The strategies used by Telenor to achieve its goals is by being creative, that is providing new and
modern services, that take advantages of new technologies but are also easy to understand and
use.Some of the creative products introduced by Telenor over the years include: EasyLoad,
SmartShare, mobileTV, largest network of EDGE, PicShare, international packages like Djuice
and many more. All these services are very creative, never been introduced before and helping
all its customers around Pakistan.
2.4.3.3 Warid
Warid started its operations in May 2005, and enjoyed a good market share in the industry,
however it has lost its subscribers to its competitors in recent years, leading to its loss of position
in the industry. The main goal of Warid is to maintain and strengthen its current market share
and increase to positions, which it earlier held in the industry.
The major strategy used by Warid is to create a sense of confidence among its customers that it is
the best network for their lives. That is it provides the best calling and sms rates, including the
value added services. Its slogan, life ka network also provides emphasis to this point.
Warid had earlier efficiently promoted its postpaid packages as affordable as its prepaid
packages, a strategy that increased its postpaid customers significantly in the mobile industry, at
a time when overall post paid connections were decreasing. Currently its agreement with SingTel
will also provide emphasis to its goals and associated strategies.
2.4.3.4 Zong
Zong, a recent entrant in the mobile industry is a subsidiary of China Mobile. Zongs inception
was the result of the takeover of Paktel by China Mobile in 2007. Being a new entrant in the
mobile industry, its goal is to gain market share, currently Zong is a small part of the industry,
but however it aims to increase its market share reach above 10% by 2010.
The main strategy of Zong in this concern is to allow people to communicate at will, without
worrying about tariffs, network coverage, capacity issues or congestion. Its slogan Say it All,
provide the emphasis to their strategy.
Currently Zong is providing packages with the lowest call rates. Furthermore it has also
introduced features, which were not present earlier. These include change of happy hours,
changing SMS packages and internet packages on the discretion of its customers.
2.5 Technology Analysis
2.5.1 Technical Methods That Affect the Industry
Mobile networks are one of the most technical aspects of any mobile company and the
technology changes affecting the networks have changed considerable, since the first mobile
company Paktel was introduced in Pakistan.
Paktels networks ran on Advanced Mobile Phone System (AMPS). AMPS was the analog
mobile phone system standard developed by Bell Labs. AMPS were a first-generation cellular
technology that used separate frequencies, or "channels", for each conversation. AMPS used
considerably more computing power in order to select frequencies; however cell centers could
flexibly assign channels to handsets based on signal strength, allowing the same frequency to be
re-used in various locations without interference. However it suffered from some weaknesses
when compared to today's digital technologies. Since it is an analog standard, it was very
susceptible to static and noise and had no protection from eavesdropping using a scanner.
However with the introduction of Mobilink in 1992, Pakistans mobile industry entered into the
second generation of mobile networks with GSM. GSM (Global System for Mobile
Communications) is the most popular standard for mobile phones in the world. Its promoter, the
GSM Association, estimates that 82% of the global mobile market uses the standard. Its ubiquity
makes international roaming very common between mobile phone operators, enabling
subscribers to use their phones in many parts of the world. GSM differs from its predecessors in
that both signaling and speech channels, which are digital, and thus is considered a second
generation (2G) mobile phone system. This has also meant that data communication was easy to
build into the system. GSM also pioneered the short message service (SMS), which is now
supported on other mobile standards as well. Most GSM networks operate in the 900 MHz or
1800 MHz bands.
Currently all mobile networks of Pakistan have entered the 2.5G. Mobile networks entered the
2.5G, by implementing the General Packet Radio Service (GPRS). It is a packet oriented mobile
data service available to users of GSM. GPRS can be used for services such as Wireless
Application Protocol (WAP) access, Short Message Service (SMS), Multimedia Messaging
Service (MMS), and for internet communication services such as email and World Wide Web
access. Later on, Enhanced Data rates for Global Evolution (EDGE) was introduced, EDGE is an
upgrade that provides a potential three-fold increase in capacity of GSM/GPRS networks.
Although EDGE is a 3G technology, but it is considered a part of 2.5G technologies, however
sometimes separately referred to as 2.75G.
Currently the Pakistan Telecommunication Authority is planning to launch 3G licenses in
Pakistan, starting from the end of 2008. 3G networks enable network operators to offer users a
wider range of more advanced services while achieving greater network capacity through
improved spectral efficiency. Services include wide-area wireless voice telephony, video calls,
and broadband wireless data, all in a mobile environment. Additional features also include HSPA
(High Speed Packet Access) data transmission capabilities able to deliver speeds up to
14.4Mbit/s on the downlink and 5.8Mbit/s on the uplink. Furthermore 3G networks offer a
greater degree of security than 2G predecessors.
2.5.2 Innovation
The mobile industry of Pakistan is considered by many as the most innovative industry of
Pakistan. Innovation means introducing new things or methods, and the mobile industry has kept
this promise by introducing new and innovative services for years.
In recent years, most of the innovative services have been introduced by Telenor; these services
being innovative took the Pakistani market by storm and have become part of our daily lives.
Examples of these services include Easyload and Smartshare. Although Telenor is seen as the
most innovative company right now, we cannot diminish the contributions of other competitors
to the Pakistani mobile industry. Some of the innovative services introduced by the different
service providers are as follows:
Introduction of dynamic SIMs by Ufone
Introduction of GPRS capabilities of Ufone
Introduction of voice controlled services by Mobilink
Introduction of Bundle SMS packages by Ufone
Introduction of voice SMS by Telenor
Introduction of emergency credit buying by Mobilink
Introduction of dedicated website for downloads by Warid
Introduction of credit share by Telenor
Introduction of BlackBerry services by Mobilink
Introduction of mobile television by Telenor
Introduction of caller tunes by Mobilink
Introduction of backup of contact lists by Ufone
These and many more services have helped make the mobile industry what it is today. With
innovations, being the hallmark of the mobile industry of Pakistan, future prospects are bright.
Also with swap of mobile operators becoming very easy using Mobile Number Portability
(MNP), and competition based on tariffs, innovation becomes a must to create a competitive
advantage. Furthermore, introduction of 3G services in the years to come would also increase the
innovative service provided by the mobile operators. Future innovation would take advantage of
the current network capabilities and additional benefits of 3G networks, including the high speed
data transfer services.
3 Department Worked During Internship
I did my 8 weeks internship at the cash management section of the treasury department of
Mobilink.The cash management section is one of the three sections of the treasury department.
The organizational structure extract of the finance department can be seen in the appendix of the
report.
The importance of cash management is immense for a company, including Mobilink. If at any
time a company fails to payoff an obligation when it is due, because of the lack of cash, the
company is insolvent and insolvency is the primary reason firms go bankrupt. Efficient cash
management means more than just preventing bankruptcy. It improves the profitability and
reduces the risk to which the firm is exposed.
At Mobilink, the main responsibilities of the cash management sections include the collection,
concentration, and disbursement of cash. It includes its efforts of timely collection of income
from its major sales centers and franchises. Revenues attained from international roaming
partners are needed to be encashed efficiently as well. Furthermore, paying off the liabilities
generated through daily operations and financing activities and finally developing short-term
investment strategies for Mobilink. Some of the activities done within cash management are as
follows.
3.1 Activities Done Within Cash Management Department
3.1.1 Daily Activities
3.1.1.1 Opening Cash Position
The opening cash position is created daily and contains the following sections:
1. Cash in hand: Contains the closing balances of all the major franchises and sales centres of Mobilink. It is added to identify the amount of money that would
come into the bank accounts of Mobilink. There are more than 500 major franchises and business centres in this list.
2. Details: The details contain the major bank accounts of Mobilink. These include the major current and saving accounts in which major collection comes.
There are more than 40 such different accounts. Furthermore some accounts are for specific purposes, for example MCB account is used to pay
commissions for the franchises and NBP-Mirpur is used to pay the taxes in AJK. Furthermore different saving accounts pay different interest rates, Askari
Bank with the highest of 13.65%.
Other categories include the DSRA (Debt Servicing Reserve Accounts); these are used for debt servicing of long term loans. These are saving accounts,
with the purpose of collecting money till the repayment amount is achieved, after which, as a part of standing instructions, the following collections are
transferred to main saving or current accounts. Cash Margin Accounts, these are lien marked accounts for specific purposes like credit cards and different
guarantees. Overdraft Accounts, these includes the number of accounts, with which Mobilink has overdraft facilities. Fixed Deposit Accounts, theses are
the accounts with which Mobilink has some fixed deposits, if any. Short Term Loan Accounts, theses are the accounts used when Mobilink wants any
short term loans. Foreign Currency Accounts, there is only one foreign currency account of Mobilink, which is with CitiBank and is used for off shore
marketing expenses and international receipts. Sinking Fund Accounts,maintained by Mobilink, contains funds that are set aside to pay the license fee,
paid out to PTA andUtility Accounts, to pay utility bills of Mobilink are the other types of accounts.
3. Liabilities: In this section, major liabilities for the month are recorded in the following categories: taxes, commissions, payroll, and repayment of loans,
roaming partners payments, payments against Form M and Link Direct International (LDI), a subsidiary of Mobilink payments. The liabilities are updated
as needed, with amounts; bank used for paying off and date of payment.
4. Cheque Float: In cheque float, the major liabilities of different vendors are recorded. They are divided into three different regions, which include Islamabad,
Karachi and Lahore. The intimidation of the cheques released comes from the accounts payable department, while the clearance coming from daily bank
statements. All payments of vendors are made from CitiBank.
5. LC and ICs: This section includes the Import Contract (IC) and Letter of Credit (LC) payments that have to be paid out for the foreign transactions that take
place with Mobilink. The intimation comes from the Trade department of Mobilink Treasury.
6. The Main and Forecast summary: The Main Summary includes both the revenues and liabilities of Mobilink on a given day, while and the Forecast
Summary is made for the current & following month.
3.1.1.2 Cash Transfers
The cash transfer take place every day and includes the transfer of collections and payment from
and to different banks. The major collection of funds takes place in Allied Bank Limited, Habib
Bank Limited, Standard Chartered Bank and United Bank Limited. These banks receive the most
collection on daily basis but pay less interest, thus all collections from these banks are transferred
to a bank that pays more interest, currently transferring to Askari Bank, as it pays a better interest
rate of 13.65%. . Also transfer of collection funds from other banks can take place as and when
required by Mobilink. Furthermore all transfer of funds for paying off liabilities take place from
ACBL to the bank required. These transfers for paying off liabilities take place as required, and
are not usually on daily basis.
3.1.2 Occasional Activities
3.1.2.1 Encashment
Occasionally, international roaming income is received by Mobilink from other cellular
operators around the world. However as these receipts are in foreign currencies and are thus
needed to be encashed, on an intimidation from the bank. Furthermore according to the SBP
Foreign Exchange Policy, companies can only keep 35% of the total foreign exchange earned in
their foreign currency accounts, the remaining 65% needs to be converted to PKR.
3.1.2.2 International Payments
Furthermore occasionally Mobilink has to pay for international roaming charges to international
cellular operators or other international payments, like paying for training activities for Mobilink
employees. Payments can either be made by debiting the foreign currency account maintained
with CitiBank or by debiting the PKR account and obtaining foreign currency exchange rate
against that amount and paying off the liability.
3.1.2.3 Account Opening
As needed, the department will open new accounts with banks as needed, which could be for
specific reason, for example the new HSBC overdraft account or just to facilitate the vendors or
franchises of Mobilink. Furthermore requirements with current banking accounts are changed as
and when required, including the interest rate offered, lien marked and overdraft facilities.
Document required for account opening are as follows:
1. Account opening form duly signed by the CEO
2. Request letter on company letter head
3. NTN Certificate
4. Certificate of Incorporation
5. Memorandum and Article of Association
6. CNIC and Passport of all Board of Directors and Signatories
7. Signature cards signed by all signatories and stamped
8. Form 29
9. List of board of directors
10. Board resolution
3.1.2.4 Credit Cards
Mobilink provides corporate AMEX card to directors and above. Activities regarding credit card
applications, their payments and limits enhancement etc are handled by the department.
3.1.3 Month End Activities
3.1.3.1 Interest Income Sheet
The interest income is calculated for those accounts that either pay interest semi annually or on
the 1st of each month. There are total 8 banks in this list, including Bank Alfalah and
NIB. Furthermore this includes the TDRs booked by Mobilink. All this information is passed
onwards to the accounts department of Mobilink.
3.1.3.2 OD Sheet
Mobilink takes on overdraft facilities daily from different banks, which gets off set from the
collection, however sometimes it is not offset and remains outstanding. On the outstanding
amount, interest payments are to be paid and are calculated at the month end and passed on to the
accounts payable department. However the actual payments are made on quarterly basis while
accrual is calculated on monthly basis.
3.1.3.3 Calculation of Cash Flow Statement
Cash Flow Statement consists of three major parts:
1. Capex (Capital Expenditures)
2. Opex (Operating Expenditures)
3. Financial Charges
Revenue information is received from the revenue monitoring department (Finance Operations)
bifurcating the total revenue earned form postpaid and prepaid connections. Average revenue
earned is 7-8 Billion PKR. Furthermore information regarding financial charges is taken from the
financing department of Mobilink Treasury.
3.2 Tasks Performed During Internship
3.2.1 Daily Activities
3.2.1.1 Creating Opening Cash Position
Updating the balances of the major current and saving accounts maintained by Mobilink, these
include accounts maintained in CITI, DB ACBL, ABL, HBL, SCB, UBL, MCB, NBP, NIB,
FBL and RBS. Furthermore balances are also taken of accounts from whom any payment may be
due, to assess the funds, to be transferred on the next day. Some accounts are to be adjusted like
SCB account is to be adjusted to the lien marked amount.
Updating the cheque float, this includes adding new cheques released on that day. The
information of the new cheques released, is received from the accounts payable department and
then using the DB direct & CITI banks website to see the cheques that have been cleared from
the CITIs current accounts maintained in Islamabad, Lahore and Karachi. Furthermore, updating
the cash in hand section as and when information is received. The information is received from
the operations department within the finance department, and as the information of more than
500 franchises and sales centers is not easy to get daily, the information is only updated 2 or 3
times a week.
3.2.1.2 Cash Transfers
After calculating the amount of liability to be paid out from various banks on the following day,
transfer letters are prepared to transfer funds to the bank in which they are required. Furthermore,
all major collections, that comes from four major banks, which includes Allied Bank, United
Bank, Habib Bank and Standard Chartered, is transferred to Askari Bank daily. The instructions
for fund transfers are on the same day pay order basis and all instructions to the banks are
forwarded through fax and then confirmed.
3.2.1.3 Other Activities
Filing the photocopies of the transfer letters that were faxed daily was another task that I
performed.Furthermore original transfer letters were also needed to be sent out to the respective
banks and also updating the payments file daily were some of the other tasks performed daily.
3.2.2 Occasional Activities
3.2.2.1 Encashments
As soon as Citi bank provides us with a notification on an encashment, a conversion rate is
asked, to convert the 65% of the total amount to Pakistani rupee. When the bank provides us
with the detail, an inward remittance rate sheet is made, which shows the total remitted amount,
the 35% and the 65% amount of the amount, in both foreign currency and Pakistani rupee.
Furthermore a letter to Citibank is also made, issuing them the authority to convert and transfer
the 65% of the encashment into the account and also transferring the 35% of the amount to the
dollar account of Mobilink.
Lastly a Form R is made to notify the SBP that 65%of the total amount has been converted to
Pakistani rupee, as stated by the foreign exchange ordinance of Pakistan and lastly all the above
letters are attached, with the original notification letter and then sent to Citi bank to go through
with the transaction. As part of my internship, I had to make all these letters and then send them
to the bank.
3.2.2.2 International Payments
As stated earlier, international payments are made either on international roaming charges or
international charges made by the different departments of Mobilink.
As soon as our department receives the Payment Authorization Form (PAF), which is used for
inter department expenditures and approvals, with the completion form and the original invoice,
a payment order and a purchase requisition or the original invoice for non departmental
expenditures, the department issues an letter to the bank for the payment, including the amounts
and all banking details like the SWIFT No, beneficiary bank name and the account title.
Furthermore a Form M is also submitted to bank, which gives them the authority to debit our
PKR account and buy the foreign currency at a conversion rate agreed. These letters are then
forwarded to the bank, for the transaction to take place. As part of my internship, I had to make
all these letters and then send them to the bank.
3.2.2.3 Account Opening
Mobilink often open accounts as to help out with operation, including, during my internship with
Barclays and UBL. As a task, all the main items were provided to the banks. The main
items provided to these bank included the Memorandum and Articles of Association, Letter of
Incorporation, Board Resolution, Form 29, which shows tells about the director of a company
and the NIC or passports of all the people in the board of resolution and NTN certificate. All
these documents are attested by the company secretary of Mobilink and are provided to the bank,
with the bank account opening form and request letter from Mobilink.
3.2.2.4 Credit Cards
Credit card of SCB AMEX are provided to all directors and above of the company and when
they want to either increase their limits or wanted to give out advance payment s into their credit
cards because they were going abroad, or any other expense, letter of authorization are sent to the
Relationship manager handling the Mobilink AMEX card. These letters of authorizations are
made after discussions with the HOD and his final signing of the letters. As part of my internship
tasks, I had to make these letters of authorization.
3.2.3 Month End Activities
3.2.3.1 Interest Income Sheet
Each month all the banks to which interest was accrued are calculated. First all of the bank
statements for the period are collected from the accounts department and then using the
applicable rates, all the balances are added to the interest income sheet and the interest income is
calculated. As part of my internship, I had to calculate the interest amount for the month.
4 Identification of a Main Problem and
Findings
4.1 Job Rotation and Advancement
The main problem that I have identified within the treasury department as a whole is the lack of
job rotation within the department and not enacting on the job advancement rules.
According to my findings, no official job rotation takes place within the treasury department,
even though the employees informally try to learn about the working of other departments
through their peers. They show keen interest in learning new things as all the operations within
the department are interlinked.
Furthermore the only time, officially, when an employee is told about the working of another
part of the department, is only when he is moved to that part, for example, when an employee
initially working for trade department is transferred to off shore financing because of shortage of
employee. This learning should not be considered as a job rotation, because this shift is
permanent for that given employee.
Furthermore, at Mobilink, the rules and procedures for job advancements are laid out however it
has been seen that junior executives, especially those at associate level are not promoted to
specialist levels, even though they have fulfilled the main requirement- years of experience with
Mobilink. This creates dissatisfaction within the employees.
5 Conclusion
The mobile industry has seen phenomenal growth over the year, showing growth rate of more
than 80% in 2007. This growth is not new to the industry, as previous years have shown
substantial growth as well. This growth is a direct result of the increased competition in the
mobile industry, resulting into better services at reduced rate. Furthermore, this has favorably
affected our economy as a whole, generating revenues for the government, through direct and
indirect taxation and creating employment opportunities for the people. The mobile industry of
Pakistan is considered by a majority of prospective employees as the best industry for a job.
Although the mobile industry has seen substantial growth over the years, many observers feel
that the industry may become saturated and will show lower growth rates as a result of increased
taxation and the general economic conditions of Pakistan. Although the concerns may be valid to
some extent, but with PTA, introducing the 3G platform in the coming years and a major part of
our population still without mobile connectivity, especially in distant villages, there is still
optimism that the mobile industry will not become saturated and there is still place for
competition in the industry.
Mobilink has been in operation since 1994, and since then has become the market leader by
providing its customers with the state of the art products and services. Mobilink has for years
enjoyed a good market share of the total industry; its current market share is 36%[14].
Even though Mobilink has been a market leader, for so many years, providing the most
technological advanced products and services, it has for a number of years been facing strong
competition from Telenor and Ufone, which has resulted in a decrease of its market share. This
has led Mobilink to a policy of diversification, by introducing products like Mobilink PCO and
WIMAX services. Although Mobilink has diversified, it still is providing competitive products
and services for its core products-Jazz and Indigo.
Finally, internships are an important part of the academic program, as they provide us with the
practical experience during our academic career. I am very grateful that I received an internship
at Mobilink as it was a great learning experience on how a multinational company works and
further improved my skills of team working and critical decision making.
6 Recommendation
As identified earlier, the problem that I identified was the lack of job rotation within department
and not enacting on job advancement rules and procedures. Some of the recommendations to this
problem are as follows:
Firstly I would recommend that the department officially start job rotation. The major benefit of
which would include even more motivated employees, with enhanced skills.
One of the major arguments against job rotation is that without it, employees will perform only
one task and will become specialized in that particular job. Furthermore, the argument also
suggests, that with job rotation, only general information is imparted to employees, not
essentially helpful in doing complex tasks. However, in todays business environment,
multitasking is becoming more and more essential and thus rotation becomes essential in making
employees multitask.
Furthermore, the organization structure of the treasury department makes it easy for job rotation,
as all sub departments major functions are interlinked to each other and mostly all departments
currently have more than one associate employee, except cash management.
Secondly I would also suggest that specific job related training should also be imparted to the
employees, this would have an additional benefit of further improving their current skills and
knowledge, while attaining new through job rotation. Also professional counseling programs
should also be started to provide employees with the information, regarding future prospects at
Mobilink and in the mobile industry.
Lastly, I would suggest, that Mobilink adheres to its job advancement procedures because for an
employee that has worked with Mobilink for more than 2-3 years, they should be awarded with
the fruits of job advancement, as I believe that the criteria of job advancements currently used is
a standard in most MNCs and job advancements are a part of career growth. Furthermore, job
advancement s will create future leaders for Mobilink.
7 Appendix
7.1 Web Resources
Wikipedia (wikipedia.com)
Articles used:
o Mobilink
o Ufone
o Telenor Pakistan
o Warid Telecom (Pakistan)
o Paktel
o China Mobile (Pakistan)
Mobilink (mobilinkgsm.com)
Pakistan Telecommunication Authority (pta.gov.pk)
Ufone (ufone.com)
Telenor (telenor.com.pk)
Warid (waridtel.com)
Zong (zong.com.pk)
Orascom Telecom (otelecom.com)
The News (thenews.com.pk)
7.2 Reports
Orascom Telecom Annual Report 2007
Orascom Telecom Annual Report 2006
Mobilinks Balance Sheet and Income Statement[15]
7.3 Organizational Structure (Extract)



[5] Orascom Telecom Annual Report 2007
[6] Orascom Telecom Annual Report 2007
[7] Mobilink Website
[8] Orascom Telecom Investor Presentation November 2007
[9] PTA Website
[10] Orascom Telecom Annual Reports 2006-2007
[11] www.brandsynario.com
[12] IAL SAATCHI & SAATCHI website (www.ialideas.com)
[13] As of July 2008 (PTA figures)
[14] July 2008
[15] For internship report only, not to be copied.
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