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Telenor Pakistan
Tore Johnsen, CEO
Full-scale industrialisation
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Pakistan – A great opportunity for Telenor
z
Population: 154 million
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Population per sq KM: 193
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Population in urban areas: 38.8%
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GDP per head: 2,210 (US$ PPP)
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Real GDP growth 2004: 6.3%
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Fixed line penetration (2003): 2.7%
Sources:
EIU (Economist Intelligence Unit)
ITU (International Telecom Unit)
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The regulatory and political framework
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Telecom authorities promote
transparency and a level playing
field
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Telecom policies well developed,
implementation the key
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Telenor to focus on strict
business ethics and code of
conduct
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Deploying the Mobile Way from day one
Building a greenfield
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Critical success factors
–
–
–
–
Time to market
Efficient operation
Standardised solutions
Quality
Regulatory
issues and
strategies
Sales and
marketing
plans
Network
infrastructure
Competitive
situation
Operation
and
maintenance
Long
distance and
international
licence
IT and billing
solutions
Organisation
and
recruitment
Legal and
tax issues
Customer
PR and
communication
Site acq. and
roll-out plans
Company
strategy and
branding
Distribution
strategy and
contracts
Procurement
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Business
plans and
financing
Business
scoping,
work flow
analysis
Office facility
management
Quality
assurance
Network rollout
11 months from licence award to launch
Licence
awarded
Business strategy
and vendor
selection in place
Site acquisition
Network design
Launch
Build Organisation
April 14th
2004
May
2004
June
2004
Network Rollout (180 days)
15th March
2005
September
2004
•Launch Islamabad, Karachi,
Rawalpindi, 15th March
•Launch Lahore, Faisalabad,
Hyderabad, 23rd March
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Network rollout
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Population coverage at launch: 32
million
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Coverage end 2005: 1800+ base
stations (175 cities)
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Licence requirement 2008:
minimum 70% of all administrative
areas (45% population coverage)
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Accumulated CAPEX end of 2007:
US$600-700 million (excluding
licence payments)
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Telenor – building a strong brand
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Telenor Pakistan takes position as
the Quality Operator based upon
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Simplicity
–
Attractiveness
–
Trustworthiness
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Service Quality
Innovator
Quality &
Customer
Focus
Price leader
Product focus
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344K subscribers after 17 days
Market share (Q105)
Instaphone Telenor
4%
6%
Paktel
8%
Ufone
22 %
Mobilink
60 %
Source: Based on local press reports
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Telenor Pakistan guidance
700
110
100
GDP per head USD
2005
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600
–
Penetration around 10%
–
550
Market
share target 10%
–
500
Government
tax of approx.
US$17 per new connection
450
expected to be halved
–
400
General
market ARPU
2000 2001 2002 2003
dilution
GDP (USD bn)
2007
–
z
2004
2005
90
GDP (USD bn)
650
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First year of positive EBITDA
80
2008
70
–
Penetration around 20%
–
Market Share around 20%
–
50
Blended ARPU US$5
-7
2006
60
2007
2008
2009
GDP per head USD
Source: Economist Intelligence Unit 2005
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