Industry Background

Company snapshot
Brief sketch
Wateen Telecom Limited is another venture of Abu Dhabi Group in the telecom industry of
Pakistan, after the launch of Warid Telecom (Pvt) Limited. The company was incorporated in
March 2005 and commenced its LDI from
May 01, 2005. A present, the majority of the share holding (80%) of WTL is with Warid Telecom
International LLC and followed by 20% with Bank Alfalah. The fresh issuance of share will
eventually dilute the holding of both companies
Wateen Telecom Limited was incorporated in Pakistan under the Companies Ordinance 1984; on
4 March 2005.Wateens successful four years of operations in the telecom industry of Pakistan
speak for itself. Some of the businesss salient features are presented below:
Wateen is the largest alternative LDI operator in Pakistan.
Largest commercial and first nationwide 3.5 GHz WIMAX network rollout in the world covering
22 cities and more than 1100 sites (900 live).
Largest operator of Satellite services in the country (c. 500+ MHz in use).
Wateen has one of the largest Optic Fiber network spanning over more than 10,000 km
(including Government of Pakistan USF projects) across all the four provinces of Pakistan
including metro connectivity in 22 cities. This network provides the backbone for Wateens
National Transmission Services. Wateen with its Managed Capacity services (OFC & VSAT)
serves almost all the major GSM and telecommunication companies in Pakistan as well 86% of
the Banking sector. Wateens FTTx (for provision of Cable TV services) and infotainment
products are also being nurtured to ensure maximization of long term shareholder value. Sales
performance has also been quite encouraging and consistent with over 20,000 monthly additions
to the broadband internet and telephony subscriber base. Sales growth has been far steeper
compared to the industry average, evident from the fact that Wateen enjoys over 60% share of
the wireless broadband market.
Wateen recently closed the largest syndicate financing transaction for the year 2010 raising PKR
4.7 billion from leading banks in the industry even in these challenging times showing the
confidence of the market in Wateens business model and operations. Wateen also successfully
closed one of the largest Islamic Financing deal in the same period.
ARCH-e-decon a leading evaluator in the telecom industry estimated current value of Wateens
key strategic assets at PKR 17,289 million translating into intrinsic value of PKR 52.5 per share.
such a high book value share will now be available through the IPO at par value of PKR 10.0 per
share-a huge discount for the people of Pakistan to benefit from

Place in the industry

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Vision
To launch Pakistan into the 21st century digital revolution by providing
complete communication and media 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 make Pakistan a regional communications hub, inter-connecting the East
with the West and Central Asia

Mission
To provide affordable communication services that meet and exceeds

customers' requirements.
To deliver high-quality, flexible and innovative solutions that is cost
effective and conducive.
To provide complete customer satisfaction on time, every time.
To make Broadband Pakistan a reality.

Core Philosophy
"Our core philosophy of honesty, transparency in customer dealings, product
innovation, excellence in customer service and our commitment
to be a responsible corporate citizen pervades this website

Slogan
The Faith that guides.

Objectives
The objective of this project is to give overview of marketing strategy of
Wateen Telecom services to viewers in Pakistan. To launch Pakistan into the
21st century digital revolution by providing complete communication and
media solutions to Telecom Operators, Corporate and Consumers, to be the
leading Carriers Carrier by creating a world-class cutting-edge network
and to deliver a diverse range of reliable, affordable and quality customercentric services. It includes introduction of company and product, external
and internal environment, market and competitor analysis, and marketing
mix.

Resources
Product line;
WATEEN WIMAX
Satellite system
Better Quality
Freedom from Cable Guy
Wateen wimax is mixture of consumer and industrial product (According to its usage) it is a
internet brand banned that provide as many internet facilities. Wateen offers you a complete
option freedom to connect friends and also provide facilities to internet user. Wimax is latest
technology in Pakistan internet field with the following:
Video games
Movies
Connect with friends
High speed
Geographic mobility
Packages
Wateen offering wireless internet connections in USB/Wi-Fi devices which are
256kbps/512kbps/1Mbps.
Offering unliminted,10GB and 5GB packages.
IMbps package as low as 699 Rs Per Month Only.
Wateen Brings Wimax Wireless Internet in USB and Wi-Fi devices
No need of Telephone Line
Installation within no time at customer Premises
Home delivery service free of cost
Unlimited Packages, Prepaid/Postpaid Packages
Just on one call get Wateen Connection .
Portability(Moveable) is another important feature, You can use Internet anywhere in 22 major
cities of Pakistan . Device we will provide is small in size and you can carry it anywhere with
you
Join Wateen online gaming zone for Free
Offering unliminted,10GB and 5GB packages
Monthly Charges for 1Mbps Packages
1Mbps/5GB in 799Rs, 1Mbps/10GB in 1199Rs, 1Mbps/Unlimited in 1499Rs
Subscription of Indoor/Outdoor CPE (one time only)
Subscription for unlimited & 10GB packages RS. 1000
Subscription for 5GB packages RS. 1500
Three types of packages with value added features like parental control and programs in regional
languages enables Wateen Telecom to capture a large market share. There are three segments in

market, based on different SECs. Different products are targeted to each segment. The product
details are as below:
Basic Package:
This package is targeted to segment SEC CD, with basic features of DTH, and with either 100
channels. It is because segment SEC CD is price sensitive and prefers price over variety and
quality of channels.
Premium Package:
This package is targeted to segment SEC BC, with basic features of DTH plus internet facility,
and with 120 channels. It is because segment SEC BC demands variety and quality of channels,
but also it does not want to pay a higher price for the service. Therefore, a package with more
number of channels than basic package, which fits into their buying capacity, is suggested for
segment SEC BC.
Premium plus Package:
This package is targeted to SEC AB, with basic features of DTH plus internet facility, and with
150 channels. This segment is not price conscious and demands better service, quality and more
number of channels.
Sales History

Target Market
According to one of the representatives of Warid that Warid has divided its target market in to
categories of A+, A-, B+, B-, C, D, E and F

CATEGORIES: CHARACTERISTICS:

A+ & A- Age group of 28 to 32, 40+ and of upper-income level (Urban)

B+ & B- Age group of 22 to 27 and of lower-upper-income level (Urban)
C Age group of 18 to 21 young stars (CORE TARGET) (Urban)
D Age group of 13 to 17 and low lower income level all Ages(Urban)
E & Users of Semi-urban areas (Has planned to launch)

Consumer or Industrial

Warid is providing their packages at both levels. Consumer level is provided in this report, while,
industrial level has variable domain, settled according to no. of connections and on the nature of
packages according to line rents etc.

Buying Characteristics
Warid is very much selective and stresses on value added purchases

Market Potential
Currently market is on SATURATION POINT as for Urban areas concern and as for as Rural
Areas concern there is great POTENTIAL. Warid is going to launch its products in Semi-Urban
and Rural Areas

Product Positioning
As Warid is new in the market of Pakistan and is still trying to make its position in the mind of
customer better than existing big giant Mobilink.
Although Warid is new in market but it has acquired a good position as for as Zero line rent postpaid connections and low rate pre-paid connections.
In my point of view, as Warid launched its products in Pakistan with a MARKET PUSHER
STRATEGY, while providing low rates, not only it has made its position better but also made
other networks to reduce their prices.

Market Shares
Warid has covered 9.782 % of total market share Warid s connections 1,800,000
Total Mobile users 18,400,233
Warids share 9.782485

Positioning
As Warid is new in the market of Pakistan and is still trying to make its position in the mind of
customer better than existing big giant Mobilink.
Although Warid is new in market but it has acquired a good position as for as Zero line rent postpaid connections and low rate pre-paid connections.
MARKET PUSHER STRATEGY
In our point of view, as Warid launched its products in Pakistan with a MARKET PUSHER
STRATEGY, while providing low rates, not only it has made its position better but also made
other networks to reduce their prices.

Current Marketing Mix

PRODUCT
WATEEN WIMAX
Satellite system
Better Quality
Freedom from Cable Guy
Watten wimax is mixture of consumer and industrial product (According to its usage) it is a
internet brand banned that provide as many internet facilities. Watten offers you a complete
option freedom to connect friends and also provide facilities to internet user. Wimax is latest
technology in Pakistan internet field with the following:

Video games
Movies
Connect with friends
High speed
Geographic mobility

Price
Tarrif of Wateen WiMAX Broadband is as Under.
Watten telecom use the innovation pricing. They use skimming pricing strategy.
for the first time in Pakistan company introduce student package business packages etc.

Promotion
Company totally advertises their product. Wateen use all promotional tools instead of public
rationing they use all medium for advertisement.
Broadly speaking the promotional goals of the company are:
To create awareness about Wateen wimax(without cable)
To encourage people who use cable
The company plans allocate a substantial chunk of its budget for spending on communication
through electronic and print media for initially.

Advertisement: Warid is using both, ATL (Above The Line) and BTL (Below The Line)
advertisement for its products.

Personal Selling: Role of personal selling is used by Warid through

 Interaction
Events
Shopping centers

Public Relations: Warid is keeping public relations and publicity in mind and doing great
work on it.

Sales Promotion: Warid is doing Sales/Trade Promotions but kept confidential.

Product/Service Review
Category Review

Life Cycle Stage

Situational Analysis
Strengths
Related Business: Wateen Telecom is already into telecom business and has developed
managerial and technical capabilities.
Innovation: The Wateen has an innovative addition to the service as far as Pakistani
market is concerned. It is in line with the policy of the company to tap the markets where
consumers needs are not being addressed.
Brand equity: The Company has an established brand name.
Extensive distribution channels: Wateen has extensive distribution channels for the
distribution of its new service.
Market oriented: Companys comparative advantage lies in already accumulated
knowledge, experience and data in the field.
Financial muscle: Wateen has sufficient resources to invest in the new project.

Weaknesses

 Unpredictable market: Pakistani market is very unstable.

Unskilled workforce: Specialized training is required for workforce and management to
cope with new challenges emerging from the introduction of the new service.
No existing alliances: The company is making alliances with certain new suppliers for
the equipment etc. which, at present it does not have.
Low initial returns: Return on investment is initially low.
Cannibalization: The Company has also launched cable service for some areas. Due to
launch of DTH these services are cannibalize each other.
High turnover rates: The Company has not been able to retain good employees for long
term. It would also hamper the ability of the company to handle the launch of new service
successfully if the turnover rate does not come down.

Opportunities
General flaws of existing services: people are not satisfied with the existing service
because of various reasons including interruptions, a lot of advertisement, poor customer
service etc. They have responded enthusiastically towards the Wateen service.
Remote access: The biggest opportunity in Pakistani market is that there are certain areas
where the services of competitors can not reach. In those areas there are sufficient people
who need the services the company plans to offer. So, there are sufficient unmet needs in
the market which can be catered through the Wateen.
Inflexible existing services: In some areas the existing services are not offering to satisfy
the customer. The Wateen services are promising as it would provide exactly what
customer needs.
Growth in the market: The market for entertainment is growing with the growth of
middle income segment in Pakistan. These customers are increasingly demanding better
services as far as entertainment is concerned.
Threats
Legislative environment: Negative legislative developments remain a threat to the
success of Wateen.

 Downturn in economy: The down turn in Pakistani economy might have impact on
disposable income of the population. General well being of economy always has
favorable impact on all the businesses Wateen services would not be an exception.
Little potential differentiation: It is expected that other competitors would enter the
market. It might start price war between Wateen Telecom and potential competitors. In
that case there would be very less differentiation Wateen would be able to offer given the
nature of the service.
Increased bargaining power of suppliers: The Company would need vital alliances
with suppliers and other partners. They might be suppliers of the competitors. Suppliers
bargaining power might increase in that case making input costs high and leaving the
company in difficult position.
Uncertain demand: It is very difficult to estimate the exact demand for the service.
There might be variation which could result in losses for the company.
Employee retention: The Company might lose its key personnel to other competitors
once they enter the market. So, retention of good staff would remain a challenge and
losing it would always present a threat.

Key Benefits
Wateen been selected by Warid Telecom, to procure and deploy Cisco Network equipment to
carry Warids GSM/Packet/LTE traffic over Metro Network.
It is a matter of great pride that Wateen has been awarded a USD 5 million project whereby
Wateen will procure, install and configure solutions based on Cisco Hardware, in collaboration
with Warid Telecom. Wateen has been chosen for this task due to its unique edge and expertise in
Service Provider network and integration skills sets in Metro and IP Core networks. Major
components of the project include Cisco ASR routing and switching Metro Network and Cisco
Optical DWDM network in major cities of Pakistan, along with integration to Warid IP Core
Network.
Wateen is and will be playing a major role in this revolution by enabling our partners and
customers like Warid, and this project plays a strategic role in proving Wateens competitiveness
and skills in the area. The will allow a competitive edge to our company not only in Pakistan but
for grabbing regional services as well.

Brand Image
Warid Wateen has an overall good image in the minds of customer. Most of the people prefer this
brand mostly in options of other brands on the basis of its quality, speed and access etc.

Positioning
As Warid is new in the market of Pakistan and is still trying to make its position in the mind of
customer better than existing big giant Mobilink.
Although Warid is new in market but it has acquired a good position as for as Zero line rent postpaid connections and low rate pre-paid connections.
MARKET PUSHER STRATEGY
In our point of view, as Warid launched its products in Pakistan with a MARKET PUSHER
STRATEGY, while providing low rates, not only it has made its position better but also made
other networks to reduce their prices.

Perceptual Map

Competitive Review

Competitor Analysis
When Wateen launch wimax broad band no one in Pakistan direct competitor of wimax . but
many others indirect competitors are present. But now this time after launching wimax broad
band many direct competitors are also launch their products in field of internet broad band for
compute Wateen wimax

Indirect competitors
Ptcl(broad band)
Pakistan on line
Cyber net

 Nexlinx dsl
Real Pak internet

Direct competitors
Fowlloing are the broad bands who compete wateen in market directly

Mobilink broad band

Zong witribe
Qubee broad band
Worldcall wirless
Proxim world class wimax
4G networks
CMPAK networking

After careful analysis we conclude that wimax is a unique broad band for internet problems.
Wimax provide solutions of all problems related to internet.

Key competitors

Market Share
Cable and Satellite Television
Since the introduction of cable TV in 2000, the Pakistan Media Regulatory Authority (PEMRA) the regulatory body in Pakistan - has issued broadcasting rights to 49 TV channels. However, the
unofficial number of channels can go up to 100, depending on the local cable TV service
provider. An average cable connection takes a monthly bill of PKR 250 to view an array of free
and pay channels.
Satellite channel subscription lost its popularity with the arrival of cable TV in the major cities.
However, it is still used extensively in distant areas where cable TV is not available. About 7% of
TV set owners has satellite dishes, which means that given the number of TV sets i.e. 8 million,
satellite TV subscribers are 560,000 in year 2006.