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Strategic Management Report on Wateen Telecom Ltd.

Program: MBA/M.PHILL

Due Date:28-April-2011

Submitted To:
Dr. Muhammad Imtiaz Subhani
(Iqra University Researcher Head)
Uzma Basheer Ghaus

Submitted By:
Syed Adnan Kaleem (8631)
Muhammad Farhan Farhat (9312)


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INTRODUCTION:
Wateen Telecom, Pakistans largest communication company in the private sector has become
the detrimental catalyst that has rampantly moved forward the country into a digital revolution with its
ability to seamlessly connect and enable smarter, faster, cost-effective and flexible communication
solutions to reach its valued customers. Wateen Telecom is the Abu Dhabi Group's latest venture in
Pakistan. After the successful launch of Warid Telecom in Pakistan, which has a subscriber base of over
10 million customers in 145 cities, Wateen Telecom has been set up to become the leading "Carrier's
Carrier" providing services based on quality, reliability and affordability in the communication and media
sector. Wateen is committed to bring Next Generation services to your doorstep. As well as Wateen
Telecom is the Abu Dhabi Group's latest communication investment in Pakistan. Wateen Telecom's
current goals are to be set up as the leading "Carrier's Carrier". With the collaboration of Motorola, they
plan on deploying a WiMax (Wireless High Speed Connection) country-wide network across Pakistan.
This network will become one of the largest of its kind in the world. Wateen also envisions the
provisioning of Direct-to-Home television services for Pakistani viewers. The commercial launch of
Wateen's WiMax (Wireless High Speed Connection) services began with 22 major cities. Wateen uses
MOTOwi4 WiMax (Wireless High Speed Connection) by Motorola. Other partners include Cisco, and
Intel. Wateen is giving CPEi 600 & CPEi 300 to its indoor usage while CPEo400 for outdoor usage to its
customers.

Vision & Mission:
The mission statement of Wateen Telecom outlines the relationships, offerings, location,
methods of capability continuance, economic and ethical policies, and unique qualities of that
organization. It serves to guide the employees of the firm toward achieving their corporate goals and
acts as concise information about the organization to those in the external environment as well as
launch Pakistan into the 21st century new digital revolution by providing complete communication
solutions to Telecom Operators, Corporate, Consumers and to be the leading Carriers Carrier by
creating a world-class cutting-edge network to deliver a broad range of reliable, affordable and quality
customer-centric services.
To provide affordable communication services of WiMax (Wireless High Speed Connection) that
meets and exceeds customers' requirements.
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To deliver high-quality, flexible and innovative solutions those are cost effective and conducive.
To provide complete customer satisfaction on time, every time.
Every customer should receive first class service each time they contact us.
EFE MATRIX LIST KEY EXTERNAL FACTORS OPPORTUNITIES &
THREATS:
Telecom imports declined marginally and stood at $1.33 billion, whereas in order to discourage
the imported, the government imposed regulatory duty of 50%. The PTA always ensured an
investor-friendly environment, and this year the telecom sector had a total of $3.1 billion
investments, of which more than $2 billion was made by mobile operators.
Telecom sector of Pakistan continued to grow positively during 2007-08, however, the pace of
growth was not fast. Since the liberalization has been completed and most of the segments of
the sector have competition in some form, therefore it can be said that market is now moving
towards maturity. Similarly internal and external factors including political and economic
situation of the country also played a major role in current growth trends. With the new
government in place and extensive work on regulatory measure taken by the PTA for future
would result in improved growth patterns of the sector.
Opportunity next generation networks (NGN) or the convergence of communications networks
made possible by an evolution of IP and digital technologies. The (NGN) mean that Current
technological advances are oriented towards integrating formerly separate single-business
service networks into multi-service networks. These new networks are known as next
generation networks (NGN) because they use rapidly advancing digital technologies based on
internet Protocol.
Advantages of incumbents in the broadcasting and telecommunication markets for broadband
deployment.
Today, with mobile internet services and the deployment of higher-speed mobile networks such
as 3G (IMT-2000), users can connect from almost any location They can also access networks at
any time connectivity (wired and wireless broadband). The next step in this technological
revolution is to connect inanimate objects and things to communications networks. This is the
vision of a truly ubiquitous network some of the company provided those sort of services like
ZONG, MOBILINK, WORLDCALL etc.
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External Factor Evaluation Matrix (EFE)
Analysis utilizing an External Factor Evaluation Matrix can be very helpful in determining the
severity of threats and opportunities to Wateen Telecom. By assigning weights to each threat and
opportunity, one can calculate an overall rating that signifies where the firm stands in the industry
relative to the factors analyzed. An EFE Matrix for Wateen Telecom follows:

Opportunities Weight Rating Score
1 Media Support 0.05 2 0.1
2 Government Support 0.05 2 0.1
3 Audience Demographics 0.05 3 0.15
Threats
1 Other Wireless Connection 0.3 2 0.6
2 Digital Satellite Broadcasting 0.1 4 0.4
3 Normal Internet Connection 0.05 2 0.1
Total: 1.45







Executive Summary
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Wateen Telecom Limited provides international voice retail and wholesale communication
services to carrier, corporate, and individual customers in Pakistan. It offers various networking
services, such as WiMAX, a wireless broadband access; direct to home television; Long-Haul
OFC network; metro OFC network for high bandwidth connectivity in various cities; and hybrid
fiber coaxial network, as well as VSAT products and solutions in support of various applications,
such as carrier class telephony networks; broadband, Internet, and multimedia access; corporate
enterprise private networks, including banking; rural telephony public network extensions;
government and military networks; and GSM and cellular applications. The company also sells
and deploys telecom equipment, as well as provides system integration services; and offers
international routing and termination of direct dial telephony traffic via voice grade switched
circuits to international carriers. Wateen Telecom Limited operates an infrastructure of optic
fiber network spanning approximately 10,000 kilo meters. It has strategic collaboration with
Wateen Multimedia (Pvt.) Limited; and a strategic alliance with Defence Housing Authority-
Lahore. The company was incorporated in 2005 and is headquartered in Lahore, Pakistan.
Wateen Telecom Limited is a subsidiary of Warid Telecom International, LLC.

Opportunity Threats
Huge market size Satellite Provisioning by Mobilink
LTE Technology Metro Fiber by Multinet
Broadband services PTCLs smart TV
Satellite solutions Managed Services
IP Transit DSL for WiMAX
Telephony [voice/video] Un-licensed or local fiber provider
Increasing un employment rate Increase in tax rate
Removal of international trade barriers High inflation rate
New competitor in broad band industry
Price war
Political Instability - Security issues.


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External Factor Evaluation Matrix (EFE)
Analysis utilizing an External Factor Evaluation Matrix can be very helpful in determining the
severity of threats and opportunities to Wateen Telecom. An EFE Matrix for Wateen Telecom
follows:
External Factor Evaluation Matrix (EFE)
Opportunities Weight Rating Score
1 Huge market size 0.08 3 0.24
2 Broadband services 0.07 3 0.21
3 Satellite solutions 0.05 2 0.1
4 LTE Technology 0.06 2 0.12
5 IP Transit 0.05 2 0.1
6 Telephony [voice/video] 0.08 3 0.24
7 increasing un employment rate 0.03 3 0.09
8 Removal of international trade barriers 0.03 3 0.09
Threats Weight Rating Score
1 Satellite Provisioning by Mobilink 0.05 2 0.1
2 Metro Fiber by Multinet 0.08 3 0.24
3 PTCLs smart TV 0.07 3 0.21
4 Managed Services 0.04 3 0.12
5 DSL for WiMAX 0.02 1 0.02
6 Un-licensed or local fiber provider 0.02 3 0.06
7 increase in tax rate 0.04 2 0.08
8 high inflation rate 0.05 4 0.2
9 new compititor in broad band industry 0.05 3 0.15
10 price war 0.08 4 0.32
11 Political Instability - Security issues. 0.05 4 0.2
Total: 1 2.89
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The matrix above summarizes and estimates the external factors that give a considerate view of
how effective the companys strategies are used in the capitalization of their opportunities and
disclose the point of threats that are active. The weights are set between 0.0 and 1.0 depending
on its level of importance depending on how well Wateen responds to the above factors
considering its current objectives and strategies. The total weighted score of this matrix reveals
that it has a normal score of 2.89 which is higher than norms.





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The competitive profile matrix for Wateen categorizes the competitors such as PTCL and World
Call. Companies are then evaluated on the basis of significant success factors of the Telecom
industry and the success factors are weighed and the ratings pass on to the strengths and
weaknesses by 4 being the major strength, to 1 for major weaknesses.


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Opportunity SO Strategy WO Strategy
Huge market size
1) Having own Long-Haul and
Metro-Fiber can provide reduction in
cost offerings to the customer
[S5:S4:O1]: Product development
1) Wateen has decreasing profits
and lack of skilled workforce to
address huge market size
[W1:W2:O1]
LTE Technology
Broadband
services
Satellite solutions
IP Transit
2) Satellite penetration in remote
areas of Pakistan and Afghanistan
can provide high earning in cost and
overall reduce overheads [S3:O4]:
Market Penetration
Telephony
[voice/video]
2) Using diversified portfolio, can
retain customers and improve
service quality and penetrate in
triple play services [W5:O6]
increasing un
employment rate
Removal
of international
trade barriers

3)We can increase our sales by
starting a new campaign and provide
new technology ( telephony
Voice/Video) [S2:O6]
We can work on our profit margin
by expending our business by
providing our service to other
countries [W1:O8)
4) Largest WiMAX network can
provide feasible solution to cater
huge market size[S6:O1]



Threats ST Strategy WT Strategy
Satellite
Provisioning by
Mobilink
1) Metro fiber can provide an edge
over PTCL smart TV service [S4:T3]
1) Increase in Debts & reduced
profit margin can be a threat to
Smart TV applications & managed
services [W1:W4:T3:T4]
Metro Fiber by
Multinet
PTCLs smart TV 2) Satellite HUB deployment and
market penetration by other Managed Services 2) Metro fiber and managed
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DSL for WiMAX
providers like Mobilink can be
catered by taping the remote areas of
Pakistan and Neighboring region of
Afghanistan [S3:T1]
services can be a threat to customer
retention [W5:T2:T4]
Un-licensed or
local fiber
provider
3) Low strategic direction can result
in unmanaged services, Triple play
and IP transits [W6:T3:T4]
increase in tax
rate 3) To cater managed solutions by
rivals, bundled services can be
offered related to corporate solutions
[S4:S5:S6:T4]
high inflation rate
new compititor in
broad band
industry
price war

4) Use Fiber & WiMAX as a
alternate solution for regulations
from PTA related to unlicensed fiber
provider [S4:T6]
Political
Instability -
Security issues











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Strategic Alternative

1 2 3

QSPM Matrix
lower Price
(Value Chain)
Market Penetration
or Increase Market
Shares
Improving
or
Developme
nt New &
Innovative
Product
Market
Developme
nt or
Finding or
Searching
New Market
Opportunities
Weig
ht
Rati
ng
Sco
re
Rati
ng
Sco
re
Rati
ng
Sco
re
1 Huge market size 0.08 3 0.24 2 0.16 3 0.24
2 Broadband services 0.07 0 0 1 0.07 2 0.14
3 Satellite solutions 0.05 0 0 1 0.05 2 0.1
4 LTE Technology 0.06 1 0.06 3 0.18 2 0.12
5 IP Transit 0.05 0 0 3 0.15 2 0.1
6 Telephony [voice/video] 0.08 0 0 3 0.24 2 0.16
7 increasing un employment rate 0.03 0 0 0 0 0 0
8
Removal of international
trade barriers 0.03 0 0 0 0 0 0
Threats
Weig
ht
Rati
ng
Sco
re
Rati
ng
Sco
re
Rati
ng
Sco
re
1
Satellite Provisioning by
Mobilink 0.05 2 0.1 1 0.05 2 0.1
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2 Metro Fiber by Multinet 0.08 3 0.24 2 0.16 1 0.08
3 PTCLs smart TV 0.07 3 0.21 1 0.07 1 0.07
4 Managed Services 0.04 1 0.04 2 0.08 1 0.04
5 DSL for WiMAX 0.02 2 0.04 1 0.02 2 0.04
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Un-licensed or local fiber
provider 0.02 0 0 0 0 0 0
7 increase in tax rate 0.04 0 0 0 0 0 0
8 high inflation rate 0.05 3 0.15 0 0 3 0.15
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new competitor in broad band
industry 0.05 0 0 3 0.15 3 0.15
10 price war 0.08 4 0.32 0 0 2 0.16
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Political Instability - Security
issues. 0.05 0 0 0 0 0 0
Total: 1 1.4 1.38 1.65
Total: 4.25 4.03 3.93



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