A Project on

WORLDCALL TELECOM
LIMITED

Submitted to:
Mr. Salah Uddin

By:
Group # 6

MUHAMMAD 8595

WASEEM AHMED 7629

ABID HUSSAIN MEMON 12135

FAISAL HAYAT 8508

ASIF ALI 8027

RAFIQUE-UR-REHMAN 8042

In partial fulfillment of the requirement for the course

STRATEGIC MANAGEMENT
WORLDCALL TELECOM LIMITED

5/14/11

IQRA UNIVERSITY
 WORLDCALL TELECOM LIMITED

ACKNOWLEDGEMENT

We are very thankful to Allah Almighty who

has given us the power and ability to think
and judge the matters and then to make
use of the blessed abilities. Our most
respectable teacher Mr. Salah uddin is the
source who directed us to apply our abilities
in the required direction. Thanks to
management of World Call for their support
in completing this project.

IQRA UNIVERSITY
WORLDCALL TELECOM LIMITED

IQRA UNIVERSITY
 Table of Contents
Introduction........................................................................................7
Brief History.....................................................................................7
Situational Analysis..........................................................................8
Structure of WorldCall....................................................................10
Location of offices............................................................................11
Location of Head Office..................................................................11
Wireless Local Loop Main Office.....................................................11
WLL Helpline..................................................................................11
Number of Total Employees:-........................................................12
Legal Status and Nature of Business.............................................12
Type of Ownership.........................................................................14
Key Players....................................................................................15
Vision and Mission Statements.........................................................17
VISION:-..........................................................................................17
MISSION:-.......................................................................................17
ANALYSIS of MISSION STATEMENT.................................................18
Suggested Correct Vision Statement:-...........................................18
Goals & Objectives of WorldCall 2010:-............................................19
GOALS:-..........................................................................................19
OBJECTIVES:-..................................................................................19
External and Internal assessment....................................................20
PESTE(L) ANALYSIS........................................................................20
Political factors..............................................................................20
Economical factors.........................................................................21
Social factors.................................................................................21
Environmental factors....................................................................23
Legal factors..................................................................................23
Porter’s five forces model.................................................................24
Threat of New Entrants..................................................................24
Bargaining Power of Suppliers.......................................................24
Bargaining Power of Consumer......................................................25
 Threat of Substitute Products........................................................26
Rivalry among Competitors...........................................................26
SWOT ANALYSIS...............................................................................28
Strengths.......................................................................................28
Weaknesses...................................................................................28
Opportunities.................................................................................28
Threats...........................................................................................28
SWOT Matrix.....................................................................................29
BCG Matrix........................................................................................30
Core Competencies Analysis............................................................31
Specific Specialties........................................................................31
Strategies Undertaken at:................................................................32
Corporate level:-............................................................................32
Types of diversifications they are following...................................32
Related Business Diversification (only)..........................................32
Defensive Strategy......................................................................33
Forward Integration.....................................................................33
Product / Service Portfolio Management.....................................33
Product Development Strategy...................................................33
Market Development Strategy....................................................33
Business level strategies...............................................................34
WorldCall Data (EVDO Wireless Broadband)...............................34
WorldCall Voice (LDI Services)....................................................34
WorldCall Entertainment (Video On Demand).............................34
MARKET ANALYSIS............................................................................35
Segments And Target Market...........................................................37
WORLDCALL’s TARGET Market......................................................37
PRODUCTS/SERVICES.....................................................................38
PRICING..........................................................................................42
DETAILS OF PACKAGE PRICING......................................................42

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 PLACE / DISTRIBUTION...................................................................44
PROMOTION...................................................................................45
PEOPLE...........................................................................................45
MARKET SHARE.................................................................................46
Market Share in LDI.......................................................................46
Broadband Share...........................................................................47
WLL Market Share in Subscription.................................................48
COMPETITORS DETAIL....................................................................49
Financial Analysis.............................................................................53
Key performance indicators...........................................................53
LIQUIDITY RATIOS..........................................................................54
TURNOVER RATIOS........................................................................54
Leverage Ratios:-...........................................................................55
PROFITABILITY RATIOS:-.................................................................55
Financial Overview:-....................................................................56
Performance Overview:-..............................................................57
Problem Section................................................................................58
Main Problems according to Management:-...................................58
Main Problems according to our Analysis:-....................................59
Strategic Alternatives:-.....................................................................60
Solutions to solve the problems:-..................................................60
Financial Measures...........................................................................61
Implementation plan........................................................................62
FUTURE PROJECTIONS......................................................................64
Conclusion........................................................................................65
References:-.....................................................................................66
References:-

INTRODUCTION

IQRA UNIVERSITY
BRIEF HISTORY
The Oman telecommunication company is the most reliable and
unique telecom and multimedia service provider in Pakistan which is
also known as Omantel. The world call telecommunication limited is
also the Omantel’s company.

The company’s word:-

“WorldCall launched its business in June 1996 with payphone

operations. A fundamental shift in technology and industry,
innovation and dedication led us to growth in diversified businesses
with a range of services designed to serve the needs of the local
market. From Cable Broadband to Wireless Broadband, from Cable
TV to Video on Demand, from LDI services and fiber optic network to
wireless local loop telephony, WC has crossed a number of
milestones. WC offers an array of services under three major service
categories i.e. Data, Entertainment and Voice.”

WorldCall Telecom Ltd. became an associate company of Omantel

after acquisition of major share holding by Omantel in 2008. Today,
WorldCall Telecom has become more innovative, dedicated, and
reliable company in Pakistan.

Status of Omantel:-

Oman Telecommunications Company (Omantel) is the largest

communication service provider in Oman. Any telephone call you
make, local or international, the SMS Messages, or internet services,
Omantel is the major and larger provider.

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SITUATIONAL ANALYSIS

In 1996 First Capital Securities Corporation commenced to incubate

payphone operation named WorldCall Payphones Limited. The new
venture stood first in a communication revolution that was yet to
hang on the country. WorldCall perception of a changing business
environment placed them at the lead of a demand-led explosion of
payphones all over the country. WorldCall introduced their first
payphone in June 1996. They were one of the largest fixed line
payphone operators. With the expansion in telecom they have
continued to innovate. Over the years they have invested heavily in
new technologies and businesses.

In 1998 prepaid calling cards were launched by WorldCall

Phonecards under the brand name "Hello". In the following years
WC provided its dial-up internet services through WorldCall.com.

In 2000 WorldCall in Multimedia segment established a Hybrid

Fiber Coaxial (HFC) network in Lahore thus becoming the first
Multi-service operator in the country, providing cable television and
Internet-over-cable. WC cable TV in Lahore, is the last but largest
entrant till now.

In 2003 WC launched a state of the art HFC network operation in

Karachi under WorldCall Broadband Limited. These are the largest
and only national networks capable of three features at the same
time (cable TV, high speed internet/data and telephony). WorldCall
Telecom Limited got Wireless Local Loop (WLL) license in the post
deregulation auction to provide WLL telephony in all 14 telecom
regions of Pakistan primarily in the 1900 MHz band. It has partnered
with Samsung for a CDMA 2000.

WC started service from Lahore in June 2005 which is now available

in over 40 cities. WC also acquired an LDI license and service
commenced at the end of 2004. WTL enjoys significant edge over
competition due to unused fiber optic capabilities available in the
telecommunication sector.

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In April 2008, Omantel had acquired 65 percent shares of
WorldCall Telecom Limited for $200 million. The CEO WorldCall
Mr Salmaan Taseer led the WorldCall delegation Salman Taseer said
that WorldCall is the first company to launch payphone cards, High
HFC System and local loop in the country. WorldCall is positioned in
a unique way being the only real Multi Service Operator (MSO) in
Pakistan telecom landscape with proven track record and
established market position in various segments of its operations.
WorldCall also enjoys leadership position with consistent growth in
its market share for broadband connectivity and cable television.

Focus of rollout will principally target broadband segment with

sustained growth of voice services. This planned expansion coupled
with initial investment would see a decent inflow of capital into
Pakistan. Omantel is a publicly traded telecom company based in
Oman with diversified operations. However, acquisition of majority
stake in WorldCall is its first overseas venture.

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STRUCTURE OF WORLDCALL

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LOCATION OF OFFICES

LOCATION OF HEAD OFFICE

WorldCall Telecom Limited

67-C III, Gulberg III, Lahore, Pakistan

Tel: (92 42) 5872633-38

Fax: (92 42) 5755231

WIRELESS LOCAL LOOP MAIN OFFICE

Ibrahim Trade Center (Near Barkat Market)

1- Aibak Block, New Garden Town, Lahore

(92 42) 8464646

www.callwireless.com.pk

WLL HELPLINE

(92) 0800-19111

WC Net Helpline 109,

UAN (111-111-965)

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NUMBER OF TOTAL EMPLOYEES:-
As of December 2010, around 1800 total employees work for
WorldCall. (More than 3000 before downsizing after acquisition of
WorldCall by Omantel, however these decisions were taken by the
Omani top management)

LEGAL STATUS AND NATURE OF BUSINESS

The Group consists of:

WorldCall Telecom Limited

WorldCall Telecom Limited ("the Company") is a public limited

company incorporated in Pakistan on 15 March 2001 under the
Companies Ordinance, 1984 and its shares are quoted on the
Karachi and Lahore Stock Exchanges.

WorldCall Telecom Ltd. group's principal activity is to provide

telecommunication services. It operates through two business
segments: Telecom segment provides operation and maintenance
services for payphone network. Broadband segment provides
internet over cable and cable TV services. The Group operates
mainly in its domestic market.

The Company commenced its operations on 01 December 2004 and

is engaged in providing Wireless Local Loop ("WLL") and Long
Distance & International ("LDI") services in Pakistan, operation and
maintenance of public payphones network and re-broadcasting
international/national satellite/terrestrial wireless and cable
television and radio signals as well as interactive communication
and to establish, maintain and operate the licensed telephony
services. The Company has been licensed by Pakistan
Telecommunication Authority ("PTA") and Pakistan Electronic Media
Regulatory Authority ("PEMRA") for these purposes.

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Worldcall Telecommunications Lanka (Private) Limited ("the
Subsidiary") was incorporated in Sri Lanka and is a joint venture
with Hayleys Group to operate payphones. The principal activity of
the Subsidiary is the operation and maintenance of public
payphones networks. Payphones are installed at various
shops/commercial outlets. The Company holds 70.65% of voting
securities in the Subsidiary.

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TYPE OF OWNERSHIP
A Subsidiary of Omantel

Before the acquisition and restructuring of WorldCall, the WorldCall

group was consisted of following companies:

• Worldcall Communications Limited

• Worldcall Phone cards Limited

• Worldcall Multimedia Limited

• Worldcall Broadband Limited

Omantel decided to consolidate WorldCall into a single company and

as a subsidiary of Omantel.

Foreign Subsidiary

Worldcall Telecommunications Lanka (Pvt.) Limited is a foreign

subsidiary of Worldcall Telecom Ltd.

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KEY PLAYERS
Historically Salman Taseer remained the key player in WorldCall as a
Leader, CEO and Chairman.After the completion of acquisitions
Omantel plays important role at corporate level but WorldCall lacks
any leadership personality like Salman Taseer.

CEO of the Company

The current players are Babar Ali Sayed (CEO) former LDI Director
Operations. First time in the history of WorldCall the CEO is from
Technical Department, unlike previous CEOs with background in
Finance and Chartered Accountants. A current picture of MR. Babar
Ali Syed is below:

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Board of Directors

1. Mr. Mehdi Mohammed Al Abduwani

2. Mr. Talal Said Marhoon Al-Mamari

3. Mr. Bernhard Heinichen

4. Mr. Samy Ahmed Abdulqadir Al Ghassany

5. Mr. Zafar Iqbal

6. Mr. Aimen bin Ahmed Al Hosni

7. Mr. Saud bin Ahmed Al-Nahari

8. Mr. Shehryar Ali Taseer

9. Mr. Asadullah Khawaja (nominee Arif Habib Securities Limited)

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VISION AND MISSION STATEMENTS
VISION:-
We at WorldCall are committed to achieving dynamic growth and
service excellence by being at the cutting edge of technological
innovation. We strive to consistently meet and surpass customers',
employees' and stake-holders' expectations by offering state-of-the-
art telecom solutions with national & international footprints. We
feel pride in making efforts to position WorldCall and Pakistan in the
forefront of international arena.

MISSION:-
In the telecom market of Pakistan, WorldCall to have an
overwhelming impact on the basis of following benchmarks:

• Create new standards of product offering in basic and value

added telephony by being more cost effective, easily
accessible and dependable. Thus ensuring real value for
money to all segments of market.
• Be a leader within indigenous operators in terms of market
share, gross revenues and ARPU within five years and
maintain the same positioning thereafter.
• Achieve utmost customer satisfaction by setting up high
standards of technical quality and service delivery.

Ensuring the most profitable and sustainable

patterns of ROI (Return on Investment) for the stake-
holders.

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ANALYSIS OF MISSION STATEMENT
WHO ARE WE?

 Be a leader within indigenous operators in terms of

market share, gross revenues and ARPU within five years
and maintain the same positioning thereafter.

WHAT WE DO?

 Create new standards of product offering in basic and

value added telephony by being more cost effective,
easily accessible and dependable. Thus ensuring real
value for money to all segments of market.

WHERE ARE WE NOW?

 Achieve utmost customer satisfaction by setting up high

standards of technical quality and service delivery.

Now in term Components:-

 Customers

 Product services

 Markets

 Technology

 Concern for survival growth and profitability

 Philosophy

 Self concept

 Concern for public image

 Concern for employees

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SUGGESTED CORRECT VISION STATEMENT:-
• To be a leader in a telecom industry by being at cutting edge
of technological innovation.

GOALS & OBJECTIVES OF

WORLDCALL 2010:-
GOALS:-
• To redevelop an infrastructure which help company to
implement multi destination LDI operations
• To expand the wireless broadband network
• To secure advertisement revenue share through cable TV
network

OBJECTIVES:-
• To secure international terminations from the major countries
of Europe and USA; and establishments POPs (Point-Of-
Presence, Switch, Router, Billing system) using co-location.
• To establish head-ends (main transmission source) in 14 major
cities of Pakistan.
• WorldCall plans to expand its EVDO service in all the 50 major
cities of Pakistan.

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EXTERNAL AND INTERNAL
ASSESSMENT

PESTE(L) ANALYSIS
The Telecom sector all around the world and especially in Pakistan
has experienced a tremendous growth in the last few years. The
telecommunication sector of Pakistan was awarded the status of
industry in 2005 and since then it has been one of the fastest
growing sectors of Pakistan quite eminent from various factors such
as the mobile density reaching 61.7% in December 2010 and the
number of mobile subscribers reaching 102 million. (Source:
Pakistan Telecommunication Authority, Annual report 2010).

POLITICAL FACTORS
✔ The political environment of Pakistan is getting unstable &
uncertain day by day so only the government decision and
initiative measures are very important.
✔ Decline in foreign investment is also the reason of political
instability.
✔ PTA is highly autonomous govt. organization and has shown
the moderate continuity in the policies regardless of changes
in the political environment.
✔ PTA is striving hard and trying its best to provide equal
competition opportunities in Telecom industry.
✔ Govt. can announce unexpected tax changes in Telecom
industry.
✔ PTA convinced the government that raising taxes will not result
in more money coming in – the reverse is actually true as the
Pakistan government got less revenue.

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ECONOMICAL FACTORS
✔ The ever increasing economical issues like inflation and the
growing debt of Pakistan.
✔ The disposable income of people getting low due to the price
inflation of consumer goods & services.
✔ PTA report 2010 tells that telecom sector of economy is in a
good shape and growing.
✔ Inflation is controlling by state bank and under strict eyes but
unemployment rate is going up and up with the increase of
level of poverty.
✔ High interest rate ~13%
✔ Decline in Telecom share in total GST due to low tariffs.

SOCIAL FACTORS
Telecommunication is used in the professional and private sphere
now days.

✔ Better telecommunication services and telecommunication is now

becoming essential part of people lifestyle.
✔ Now people have become habitual of consuming new technology
products. Internet has become a real working tool; people use
Internet at home, at work.
✔ People are interested in more than just “Plain Old Cable/TV”
technologies… like Digital Cable TV, Video-On-Demand, and
Personal Video Recorders not just plain old TV due to frequent
use of internet.
✔ Young generation is getting more interest in wireless
telecommunication and spends more time in online social
activities like chatting, social networking.
✔ Telecommunication becoming an integrated part of our social life
style. People now like to use Facebook on their pc and on mobile,
allowing them to connect with their family and friends anytime
anywhere.
✔ Internet becomes an integral part of people social-lives.
✔ Online gaming is growing rapidly and the ever increasing gaming
competition all over the world and in pakistan as well.

TECHNOLOGICAL FACTORS
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✔ Telecom sector have technology with which they can compete
in Pakistan and now companies are investing in their
infrastructure to not only expand but also to upgrade their
existing structure.
✔ Currently mostly companies are providing Multi-media
Messaging Services (MMS), General Packet Radio Service
(GPRS), Virtual Private Network (VPN), Pocket Stocks,
Conference Calling, Wallpapers Animated pictures Polyphonic
ring tones (WAP), and Voice Mail at low price and some are
also providing feature that one can see TV channels on their
cell.
✔ Individuals and companies are recognizing the benefits of
mobility of wireless broadband.
✔ The expertise of IT and Telecom industry has greatly reduce
cost and time on the usage of products and services. For
example, new VoIP technologies are changing the cost
structure of the LDI business.
✔ Upcoming future wireless broadband technologies are
changing the trends of internet usage.
✔ Pakistan’s telecom industry is one the fastest growing
industries even compared to other countries.
✔ Innovations and development in telecom technologies has
played a major role in the overall growth. Innovations and
Developments in IT and Telecom can create and motivate new
demands. Like Video Conferencing induced more demand for
companies interested in online business meetings.
✔ Now a day, firms are in search of reliable information systems.
And for this telecom technologies playing vital role.

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ENVIRONMENTAL FACTORS
✔ The telecommunication towers spoil the view especially of
tourism places but no attention is paid towards this.
✔ Ecological Factors
✔ Natural Obstructions in Wireless Transmission
✔ Infrastructure usage facing difficulty due to the conditions of
land.

LEGAL FACTORS
✔ Corruption and bribery in legal authorities suffers a telecom
companies a lot to face difficulties
✔ PTA is the telecom industry regulator and their some
objectives are:
✔ Telecom sector changed from monopoly to competition
✔ Protection of the rights of the companies competing with
incumbents and to provide safeguards the interest of the users
of the telecommunication services.
✔ The unbiased laws of telecom sector to establish healthy
competition in market.

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PORTER’S FIVE FORCES MODEL
THREAT OF NEW ENTRANTS
Telecom is a very capital concentrated industry, entry into this
industry means that the firms need access to huge amount of
capital mainly to cover the fixed costs to lay and maintain a
physical network (infrastructure, fiber optic cables etc) to the
premises of customers.

As it is mandatory for the firms to get approval/licenses from PTA,

which is both costly, and a tiresome job. Although companies in this
industry mostly tended to monopolies regulated by the government
up to price controls and moderate to heavy taxation. The telecom
industry is already dominated by major players and smaller
manufacturers have to struggle, due to high setup costs and market
dominations threat of new entrants is low because of:

➢ High Government restrictions or legislation

➢ Telecom licenses, rights, regional licenses
➢ Expected Mergers and Acquisitions
➢ High fixed costs
➢ High Capital requirements
➢ Aggressive competition

BARGAINING POWER OF SUPPLIERS

There is intense competition between suppliers because of multi-
million dollar contracts between Pakistani firms and mostly foreign
suppliers.

List of suppliers who intensely compete with each other to reach

contracts with their business customers. Sometimes suppliers show
flexible behavior to maintain the long term relationship with their
profit oriented customers.

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In an telecom industry the manufacturers of telephone switching
/switch board equipment, fiber optic cables, network equipment, and
billing software makers are low. The prominent names in this
industry include Cisco, Alcatel-lucent, Ericsson, Hawawie, ZTE,
Samsung, Nortel and Motorola.

With the outcome of economic crises and excess capacity and falling
demand, the suppliers do not have much power and have to
negotiate gently with the telecom companies because of:

➢ High availability of substitute inputs

➢ Competitive suppliers of telecom equipment
➢ Low degree of differentiation of inputs, due to high component
standardization.

BARGAINING POWER OF CONSUMER

Consumer have high power because customer influence in pricing
and shifts towards other sellers if he/she is not satisfied with the
quality or price of the product or services. Consumers have very
high buying power in telecom sector because though they have
many options to choose from especially in Voice segment.

Firms are now more concentrating on providing after sales services.

Most of the products in the telecom sector industry have not much
difference while some may have considerable differences.

The increasing trend of communication like email, instant

messaging, is declining the importance of voice services.

➢ Switching to another product is simple

➢ Customers are price sensitive
➢ Consumers have high product knowledge
➢ Switching costs are low
➢ Availability of existing substitute products
Plenty of choice of several technologies and other communication
means available, enhanced the buyer’s power.

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THREAT OF SUBSTITUTE PRODUCTS
There are many substitutes available in market. In case of
unsatisfactionwith any of the feature customers can easily switch to
the other because he/she has the almost exact or the same kind of
substitutes.

Many of the substitute products and services have emerged in voice,

data and entertainment in telecom due to the technological
breakthroughs. Switching power is high in telecom sector
characterize by high technological developments and fast
availability of alternative substitutes.

Some of these are more convenient and offer far greater value to
the consumer and have diminished the importance of traditional
fixed line phones. Substitutes include Broadband, Wireless
broadband, DigitalTv, IP Telephony, Mobile phones, Satellite, Email,
and Instant Messaging etc.

RIVALRY AMONG COMPETITORS

Due to growth opportunities and government focus on the telecom
sector, there is a strong likelihood that competition will gradually
increase as new firms enter the industry.

there are many existing competitors of world call. The intensity

among current rivals is intense and they are mostly competing on
technological bases to create competitive advantages.

Industry rivalry has become extremely intense with the emergence

of new competing firms leading to price cuts across the industry.

➢ Companies can only grow by stealing market share away from

competitors.
➢ Telecom industry with a very high growth.
➢ Advertising intensity and spending are very high.

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SWOT ANALYSIS
STRENGTHS
✔ Technical infrastructure
✔ HFC-cable
✔ Product range
✔ Working in major cities
✔ Reputation
✔ Balanced sales
✔ Reliable wireless broadband

WEAKNESSES
✔ High dependence on Voice segment
✔ Weak marketing
✔ Lacking a proper long-term strategy
✔ Weak brand positioning
✔ Less focus on short-term profitability
✔ Infrastructure varies from location to locations
✔ ERP implementation taking too long

OPPORTUNITIES
✔ Demand increased for backhaul network
✔ Cross-sell in major cities
✔ Increased demand for LDI and Broadband
✔ Privatization of government telecom projects
✔ PTA delayed 3G licenses

THREATS
✔ Economy instability
✔ CaTV operators alliance
✔ Threat by WiMax or other 4G technologies
✔ Government policies

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 ✔ Increased consumer churn rate
✔ Heavy Price competition

SWOT MATRIX
Strengths – S Weaknesses – W
1. Technical 1. High dependence on
infrastructure Voice segment
2. HFC-cable 2. Weak marketing
3. Product range 3. Lacking a proper
“SWOT 4. Working in major
cities
long-term strategy
4. Weak brand

MATRIX” 5. Reputation
6. Balanced sales
positioning
5. Less focus on short-
7. Reliable wireless term profitability
broadband 6. Infrastructure varies
from location to
locations
7. ERP implementation
taking too long

Opportunities – O SO Strategies WO Strategies

1. Demand increased for • Market • Market Penetration
backhaul network development of and Product
2. Cross-sell in major HFC-Cable (S3, O2) Development of Data
cities • Market services (O5, W1)
3. Increased demand for development of • Brand development
LDI and Broadband Wireless for broadband
4. Privatization of Broadband (S7, O3) segment (O3, W4)
government telecom • Offer more B2B • Develop uniformity
projects Data services (S1, across infrastructure
5. PTA delayed 3G O1) (O1, W6)
licenses

Threats – T ST Strategies WT Strategies

1. Economy instability • Market • Highly Differentiated
2. CaTV operators development of Products (T6, W2)
alliance HFC-Cable (S3, T2) • Quickly integrate
3. Threat by WiMax or • Diversification of ERP to analyze
other 4G technologies Products (S3, T1) churn-rate (T6, W7)
4. Government policies • Differentiation • Hold & Maintain (T1,
5. Increased consumer strategy for W5)
churn rate wireless broadband
6. Heavy Price (S7, T6)
competition

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BCG MATRIX

othG
STA
H

w
igh

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CORE COMPETENCIES ANALYSIS
The core competences that we have analyzed are

• Strong Dark Fiber

• Largest (hybrid fiber coaxial) HFC/Cable Operator (CATV, IOC,
VoIP/MSAN
Telephony) in Pakistan.
• Premium WLL and LDI operator in Pakistan.

SPECIFIC SPECIALTIES
Worldcall has taken the lead in introducing innovative
telecommunication services in Pakistan:
• "Supervised Payphones" business model in Pakistan which is
now being followed by many other operators – largest fixed
line payphone infrastructure.
• The first company to introduce prepaid calling card services in
the country.
• Worldcall developed the first ever broadband HFC
convergence
Infrastructures in Pakistan – the only operator in Pakistan and
one of the few in the region to provide a triple play (CATV,
broadband internet, telephony)
• Worldcall was the first operator in Pakistan to commission a
state of the art next generation network (“NGN”) – covering
long distance & international (“LDI”) inbound and outbound,
local loop (“LL”) / wireless local loop (“WLL”) telephony
services. This is a fully converged architecture enabling
wireless solutions and hybrid fiber coaxial (HFC) telephony.

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STRATEGIES UNDERTAKEN AT:
CORPORATE LEVEL:-
As the other firms have strategies, WorldCall also has strategies at
different levels. In corporate level strategies they basically discuss
the current business status as well as the future of the current
business. Then they decided in meetings, that in which sector they
have to add something and in which sector they want to remove
something. They are mainly concerned with:

• What kind of businesses they want themselves in?

• How they should manage all sectors or businesses?

TYPES OF DIVERSIFICATIONS THEY ARE

FOLLOWING

RELATED BUSINESS DIVERSIFICATION

(ONLY)
WorldCall mainly focus in Related Business Diversification. As many
good and effective service of WorldCall the broadband service of
WorldCall has good growth and opportunity. In this same line of
business they diversify their business and there diversification is
very much effective for them. They are introducing new and new
things in this same line of business that have so many opportunities
now a day in Pakistan. WorldCall has made its place in the current
market by offering several and unique services. People want now a
day’s some modernized services and WorldCall is properly working
to promote these kinds of services. Some of the services are as
follows (Video on Demand, cable TV, internet over cable). Currently
the Company has several ongoing projects like HFC cable, Point-To-
Point corporate broadband services, VSAT (satellite broadband) and
DigitalTV which are in the different phases of roll out, all aimed at
provisioning of sophisticated data and video services. Reasons for
related diversification:-

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IQRA UNIVERSITY
 • To reduce the risk!!!
• High Compatibility with technical infrastructure!!!!!
• Support some losses in other segments!!

Defensive Strategy
WorldCall in September 2009 completed the divesture of its foreign
subsidiary WorldCall Lanka. They thought that this should be no
more in their business.

Forward Integration
Although in a very poor state WorldCall is using Franchising as their
forward integration strategy, however they do not have much
control on their franchises.

Product / Service Portfolio Management

WorldCall has successfully introduced True Video-On-Demand
technology. They have also started WorldCall Wireless Broadband
with EVDO technology in the product portfolio. Another very
effective service was pay phones and in 2009 officially phased out.

Product Development Strategy

The product development strategies are one of the most important
strategies that should be in business if you want to survive in the
market or in the business world. Worldcall is also using product
development strategies as it involves development of telecom
services and products. They have first mover advantage in
CDMA2000 based EVDO wireless broadband. CDMA2000 represents
a family of ITU-approved, IMT-2000 (3G) standards and includes
CDMA2000 1X and CDMA2000 1xEV technologies. They deliver
increased network capacity to meet growing demand for wireless
services and high-speed data services. CDMA(code division multiple
access) is the fastest growing wireless technology and it will
continue to grow at a faster pace than any other technology. It is the
platform on which 2G and 3G advanced services are built.

Market Development Strategy

In market development strategy you have to develop your market,
worldcall has developed its market after making analysis. For
example WorldCall EVDO Wireless Broadband was initially launched
in Karachi followed by Lahore to other major cities including

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IQRA UNIVERSITY
Gujranwala, Faisalabad, Multan and to inclusively to 50 major cities
of Pakistan. Same is the expansion of Cable TV service to major
cities of Pakistan.

BUSINESS LEVEL STRATEGIES

WorldCall offers many services under than head of 3 Major Business
Segments

✔ WorldCall Data
✔ WorldCall Voice
✔ WorldCall Entertainment

WorldCall Data (EVDO Wireless Broadband)

WorldCall is following differentiation strategy for WorldCall EVDO
wireless because the size of market is large and the product is
differentiated for its performance and mobility.

WorldCall Voice (LDI Services)

WorldCall is following cost-leadership strategy in LDI because of
intense and dynamic price competition in LDI market

WorldCall Entertainment (Video On Demand)

WorldCall’s relatively new service is using “Focus-Value Strategy”
because the target market is very small and product offers high
degree of control with respect to traditional cable TV.

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MARKET ANALYSIS
Telecom Sectors according to PTA :

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The Pakistan Telecommunications Authority (PTA) has forced the
incumbent fixed-line and broadband operator Pakistan
Telecommunication Company Ltd (PTCL) to enter a formal
interconnection agreement with rival operators in the xDSL
broadband market. The broadband operators, many of which are
small and privately owned, have petitioned for reasonable access to
PTCL's fixed-line network to help them reduce costs and offer more
competitive tariffs.

BMI (Business Monitor Broadband Growth Now Possible For

International) has Pakistan
consistently identified cost Forecast Broadband Subscriber Growth, 2007-
as being the single largest 2014
barrier to growth in the
Pakistani broadband
market. In India, where the
government is actively
pushing for growth,
broadband services are
available for US$8 per
month. In Pakistan
however, such services
average US$16 per month.
With the country's mobile
operators electing to deploy
wireless broadband mainly
in urban areas, customers Source: BMI
in many smaller population
centres have little or no
high-speed access to the internet.

The Pakistani government has tried to encourage service providers

to take advantage of rural service provision subsidies via the
Universal Services Fund (USF), but rollout has been slow,
affected by service providers' inability to quickly source and deploy
infrastructure. Further problems include the relatively high cost of
PCs and laptops and a widespread lack of IT literacy.

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SEGMENTS AND TARGET MARKET
WORLDCALL’S TARGET MARKET

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PRODUCTS/SERVICES
WLL - Wireless Local Loop:- WorldCall owns premium spectrum
for Wireless Local Loop (WLL) in all 14 telecom regions in the
country Telephony and Data services are being offered using
wireless CDMA technology

• Samsung is technology partner / vendor for latest CDMA 2000

1x solution for Phases I & II
• Key technology partner for terminal equipment is LG Service
launched from Lahore – June 2005
• EV-DO (Evolution Data Optimized – data rate upto 2.4 Mbps)
launched in selected areas – July 2006
• HUAWEI Technologies is the vendor for Phase III rollout, which
includes Karachi (the largest metropolitan) & Hyderabad
Current operations in over 40 cities of Pakistan:
Lahore, Gujrat, Kharian, Sheikhupura, Sargodha, Sialkot, Gujranwala,
Multan, Bahawalpur, Peshawar, Kasur, Faisalabad, Hyderabad,
Joharabad, Sukkur, Wazirabad, Lalamusa, Jhelum, Dinga, Mandi
Bahauddin, Rahim Yar Khan, Sahiwal, Bahawalnagar, Vehari, Okara,
Khanewal, Raiwind, Muridke, Khushab, Narowal, Pakpattan, Kamoke,
Muzaffargarh, Jalalpur, Jhang, Mardan, Burewala, Daska, Mianwali,
Leiah, Hafizabad.

High speed data service EV-DO - Wireless Broadband:-

Launched in June 2006. 1x Evolution-Data Optimized (EV-DO or
EVDO), is the wireless radio broadband data standard taken up by
various CDMA service providers internationally. WorldCall’s service
provides data rates upto 2.4 Mbps.

Pay Phone:- The largest fixed line payphone operator in Pakistan

Introduced the highly successful ‘Supervised Payphone’ concept in
Pakistan Technology:

• Smart card based wireless payphones

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 • CDMA 2000 1x based wireless payphones Operating in both
‘Supervised’ and ‘Standalone’ segments WLL payphones have
only recently been introduced and are cheaper and faster to
deploy Extensive distribution network Highly trained sales and
maintenance teams Positioning to be market leader in the
overall fixed and wireless payphones market
HFC (Hybrid Fiber Coaxial) – Broadband:- WorldCall has
deployed Hybrid Fiber Coaxial (HFC) network in Karachi and Lahore.
WorldCall provides customers with the ability to lease dark fiber for
high-speed, dedicated fiber optic networks or offers availability of
cable ducts for businesses to have their own network. Fiber optic
networks are pathways installed in conduits underground or on
utility poles. Users of Dark Fiber choose the electronic equipment
they wish to use and control their own light signal. This gives Dark
Fiber several distinct advantages over traditional
telecommunications.

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Key Features:
• 100% buried fiber and exclusive owned Right of Ways for Fiber
Ducts
• The most advanced quality Poly / Ethylene pipes/duct
• Corning SMF-28e (enhanced) version fiber conforming to
industry standards including ITU-T G.652 (Categories A, B, C &
D), IEC 60793-2-50 (type B 1.1 & 1.3) and TIA/EIA-492 CAAB
fiber
• Flexible networks operating throughout the Single Mode fiber
operating window (1300 nm – 1650 nm)
• 24x7 Vigilance and Emergency Response teams for all fiber
routes
• The only Triple Play network provider conforming to ISO
Standards

WorldCall Cable Broadband:-

• Portability & Mobility

• Plug & Play
• No power required
• Unlimited downloads
• Unlimited express upload & download
• Always on
• Does not need telephone line
• Economical packages

WorldCall Digital TV:-

• Superior picture quality

• Crisp and clear stereo sound
• 60+ channels
• On-screen channel guide

WorldCall Cable TV:-

• Drama, thriller, action, romance, news & documentaries

• 80+ analogue channels
• Satellite & in-house channels

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 • Latest movies

WorldCall Video on Demand:-

WorldCall is the first to launch True VOD, providing a collection of

movies and music over the CATV network in digital quality to end-
users to choose from their homes. VOD service is ahead of pay-per-
view service by giving rewind/fast-forward/pause capability to the
viewer.
• A cinematic addition to your on-screen entertainment
• Absolute control with play-back options
• 600+ hours of uninterrupted fun and excitement

LDI - Long Distance International:-

WorldCall has acquired licenses from Pakistan Telecommunication

Authority (PTA) for Long Distance & International (LDI) and Wireless
Local Loop services (WLL). Long Distance & International (LDI)

• WorldCall was the first company to start LDI services –

November 2004
• WorldCall provides cost / price effective, quality voice and data
solutions for nationwide & international markets catering for
both the wholesale and retail segments, tailored to their
individual requirements
• Under the LDI license, the services that can be offered include:
○ International Calls Origination and Termination
○ Nationwide (NWD) Calls Origination and Termination
○ Data & Value-added services like Corporate Solutions, IP
telephony, VPN’s etc.
• WorldCall has deployed state-of-the-art network based on IP
technology and NGN (Next Generation Network) architecture
with equipment from reputed names like Cisco sytems,
Siemens and Nuera.
• Future proof investment: nationwide long haul infrastructure
and access

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PRICING
WorldCall is using Cost-Based approach for pricing in its all business
units for all products and services. This approach is most commonly
used in a competitive telecom industry. Worldcall Pricing strategy
depends upon these factors like:

• Degree of differentiation in product/service offered

• Intensity of the competition
• At the stage in which a product is in Product Life Cycle
Premium pricing:-

Worldcall charges premiere pricing because they are using

differentiation strategy in all of its business units, but not very high
prices. They use this strategy mainly for new products/services on
the basis of quality differentiation. When a product is new in the
market or competition is low.

EG:- WORLDCALL VIDEO-ON-DEMAND

Competitive pricings:-
In competitive telecom industry customer switching rates are high
worldcall is using competitive pricing strategy in its new worldcall
broadband wireless evdo and worldcall wireless to keep up with the
competition.
DETAILS OF PACKAGE PRICING
Wireless Broadband:-

Activation Charges: Rs 1,299

Package Price
256 kbps Rs 1200
512 kbps Rs 1800
1 Mbps Rs 2500

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Cable Broadband:-

Download speed Old Price New price

512Kbps Rs. 1,100 Rs. 700

1Mbps Rs. 1,400 Rs. 1,000

2Mbps Rs. 5,100 Rs. 1,500

4Mbps N/A Rs. 2,000

6Mbps N/A Rs. 4,000

8Mbps N/A Rs. 6,000

10Mbps N/A Rs. 8,000

Digital TV:-
Digital TV Packages
Digital TV Packages (For Existing Cable TV Customer)
One Time Connection
Rs.3,500 (Non-refundable)
Charges
Monthly Charges (DTV) Free
Digital TV Packages (For New Cable TV & DTV Customer)
One Time Connection
Rs. 3,500 (Non-refundable)
Charges
Monthly Charges (DTV) Free
Installation Charges
Free
(CATV)
Monthly Charges (CATV) As per described package

Set-up cost is non-refundable. Customer Premises Equipment (Cable

Modem/Set Top Box) shall remain company property.

Cable TV:-
2nd 3rd 4th
Permis Installatio Subscripti
CAT CAT CAT
es Type n on
V V V
SFU 500 400 150 80 80
Free 325 100 100 100
SFA
Free 800 Free Free 800
MDU Free 800 Free Free 800
SFU (single functional unit):- the banglow which size is more than
250 square yards is called SFU.

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 SFA (single functional apartment):- the banglow which size is less
than 250 square yards and a apartment in three floor building is
called SFA.
MDU(multi development unit):- the apartment in more than three
floor building is called MDU.
Note: In Rs. 800/=, 03 CATV connections are allowed.
Note: Rs. 25/= will be charged every month as infrastructure charges
for DHA customers with 1st CATV Connection.
Note: Installation charges Rs. 500/= will be applicable on every 4th
CATV connection in SFU

Video On Demand:-

Video On Demand Packages

Half
Monthl Quarterl Yearly
Primary Connection Yearl
y Rs. y Rs. Rs.
y Rs.
VOD & Digital Cable TV
1,500 1,425 1,350 1,275
Monthly Rate
VOD & Digital Cable TV 15,30
1,500 4,275 8,100
Subscription Package 0
Discount % age in Monthly
- 5% 10% 15%
Subscription
Connection Charges: Rs. 6,000 (Non-refundable)
Set-up cost is non-refundable. Customer Premises Equipment (Cable Modem/Set Top
Box) shall remain company property.

PLACE / DISTRIBUTION
Extensive nationwide distribution network positioned to launch new
products as well as service existing ones

– 50 Offices

– 220 Cities

– 59,000 Points-of-sale

• Existing relationships with third party distributors to enhance

• penetration
• Ability to carry third party products – immense future potential
• Customer Service Centers
• World Call has customer care centers in major cities. Some of
These centers have the attractive exterior.
• Franchises

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 • Franchises are in the Poor conditions and World Call have no
control on franchises

PROMOTION
World call is not using intensive promotion strategy they are cutting
cost through the low advertising these.

PEOPLE
An essential ingredient to any service provision is the use of
appropriate staff and people. Recruiting the right staff and training
them appropriately in the delivery of their service is essential if the
organization wants to obtain a form of competitive advantage.
Consumers make judgments and deliver perceptions of the service
based on the employees they interact with. Staff should have the
appropriate interpersonal skills, aptititude, and service knowledge to
provide the service that consumers are paying for. In fact these are
the people who make the differences among organizations.

In case of World Call, People includes

✔ Sales Representatives
✔ Staff of Customer Care Center
✔ Recovery Team
• For Cable TV and HFC Broadband

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MARKET SHARE
MARKET SHARE IN LDI
WorldCall share is 2,047 Million out 21,983 Million

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BROADBAND SHARE
Market share of Broadband technologies, WorldCall owns most of
HFC share, with strong share in EVDO segment.

WorldCall added highest number of subscribers in May 2010 with

a figure of 20,230 additions, its market share increased from
7% to 9%.

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“The number of mobile subscribers in Pakistan reached the 100mn mark
in September 2010 and is expected to continue its growth momentum
due to the relatively low penetration rate. In this quarter, BMI has
adjusted our mobile forecasts and forecast 136.078mn subscribers in
Pakistan by end-2015, representing a penetration rate of 70.3%.

Pakistan’s broadband subscriber base reached 1.053mn in October

2010, an increase of 63.5% from the 643,892 in December 2009.
While DSL remained the main technology used to access broadband
services in the country, alternative wireless solutions WiMAX and EV-DO
are catching up fast. The number of DSL users grew by 96.5% from
262,661 in June 2009. By contrast,. The popularity of mobile broadband
services is likely due to more subscriber figures of WiMAX and EV-DO
increased by 246.6% and 708.5% over the same period to reach
306,665 and 181,947 respectively affordable pricing plans bundled
with low-cost mobile devices. Moreover, two-thirds of the population
reside in rural areas where fixed-line infrastructure remains poor and
wireless broadband service therefore becomes an attractive and relatively
cheaper method to bring connectivity to the underserved regions.

(Source: BMI)

WLL MARKET SHARE IN SUBSCRIPTION

Subscriber Share (WorldCall has 2nd Largest Share in WLL

Subscription):-

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IQRA UNIVERSITY
COMPETITORS DETAIL
Burraq & Wi-tribe

Qtel entered into a regional broadband wireless joint venture with

ATCO in march 2007, which evolved as a leading Middle Eastern
conglomerate and one of the world's best leading wireless
broadband services providers. This joint venture, floated their brand
wi-tribe in the starting of 2008 which is form to create demand and
establish WiMAX networks in the Middle East, Asia and Africa. Qtel
had 78% stake in this overall venture.

Wi-tribe intends to leverage Qtel's regional operating experience

and multinational footprint, roll out excellent quality networks and
services in targeted areas, and develop a strong platform for
distribution of broadband content.

In Jordan, wi-tribe has acquired a license in an auction and is getting

ready to launch in 2008. The Jordan market has a high potential for
the wireless broadband service and wi-tribe is well positioned to
capture the growth in this market. In Pakistan, wi-tribe acquired a
75% stake in Burraq Telecom which has licenses for WiMAX as well
as international long distance. Pakistan is an exciting market for

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IQRA UNIVERSITY
broadband with very low penetration rates and huge potential for
growth.

Burraq Telecom Limited, founded in 2004 is an established operator

licensed to offer a full range of telecommunications services across
Pakistan, including long distance international and wireless local
loop. The company also has associated spectrum at different
frequencies. Burraq has recently completed a limited rollout of its
Broadband Wireless Access (BWA) network in all of Pakistan’s 14
regions.

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Mobilink Infinity & LINKDotNET:-

LINKdotNET, the leading Internet Service and Solutions

Provider, is a subsidiary of Orascom Telecom Holding
Company, the largest integrated telecommunications services
provider in the region.

Mobilink GSM, a subsidiary of Orascom Telecom, started its

operations in 1994. Newest to the rank of life-changing innovative
technologies is Mobilink Infinity, the revolutionary next generation
wireless broadband network. Words from Moblink”And it gives us
great joy to welcome you to experience Mobilink’s evolution into a
total telecommunications solutions provider. This holds great
prospects for all our valued customers in terms of value-added
services, Internet access, next generation of telephony through
Voice over IP and exciting cutting-edge services.”

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IQRA UNIVERSITY
PTCL & Ufone:-

Pakistan Telecommunication Corporation Limited (PTCL) which

started to operate in January 2001 under the brand name
‘Ufone’ was wholly owned by Pakistan Telecom Mobile Limited
(PTML). After this privatization Ufone became a part of the Emirates
Telecommunication Corporation Group (Etisalat) in 2006. PTCL is
Direct Competitor with WorldCall in Ptcl EVO Wireless Broadband,
Ptcl SmartTV, Ptcl vFone, Ptcl Broadband and LDI. In fact the real
cut to cut competition between Worldcall and PTCL is witnessed
since many years.

Wateen & Warid:-

Wateen Telecom is a Pakistani telecommunication company based

in Lahore, Pakistan and is a sister concern of Warid Telecom.

Wateen Telecom is the Abu Dhabi Group's latest communication

investment in Pakistan. With the collaboration of Motorola, they plan
on deploying a WiMax country-wide network across 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... today.

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NayaTel:- (IN ISLAMABAD ONLY)

NayaTel (Pvt) Ltd. (NTL) is a sister concern of Micronet

Broadband (Pvt) Ltd. (MBL), www.dsl.net.pk the premier and
leading DSL broadband service provider in Islamabad and
Rawalpindi. Leveraging its rich expertise and experience of
broadband, MBL team conceived the idea of a most modern telecom
network which can take care of ever growing telecommunication
needs of customers and have the capability to cater for
telecommunication requirements of at least next three decades. The
idea was transformed into reality when NTL launched South Asia's
first fiber to the home (FTTH) in Islamabad in September 2006.
This real triple play project is unique in its nature as it serves
complex networking needs of mission critical businesses yet so
simple that it has become a symbol of prestige for quality conscious
home users. Covering over 90% areas of Islamabad and business
areas of Rawalpindi Cantonment, Nayatel's network offers ultra
broadband Internet, modern telephony and digital video services to
business and home users.

Fiber-to-the-User is 21st century architecture for delivering multiple

services (Voice, Video and Data) to the customer premises. This
technology involves laying down fiber optic cable from the carrier's
facilities to the customer premises. With the ever-decreasing price
of Fiber Optic and the rising cost of copper, use of copper cables
worldwide is on the decrease. Fiber Optic cables have near-unlimited
capacity for carrying data at speeds not supported by Copper media.

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FINANCIAL ANALYSIS
KEY PERFORMANCE INDICATORS
2010 2009
Net Profit After Tax (NPAT) -1,147 Million -491 Million

Depreciation and Amortization 6,143 Million 4,584 Million

RATIOS

Gross Profit Margin % [(Gross Profit ÷ Net Sales)] 11.58% 16%

Net Profit Margin % [(NPAT ÷ Net Sales)] -15.32% -6%

Debt Coverage (Times) [(NPAT + Depr.) ÷ (LTD + Interest)] 0.58 0.28

Interest Coverage (Times) [(Net Operating Profit ÷ Interest

-1.02 -0.03
Exp)]

Current Ratio [(Current Assets ÷ Current

0.75 : 1 0.80 : 1
Liabilities)]

Quick Ratio [(Current Assets-Invt.)÷Curr. Liab.] 0.40 : 1 0.74 : 1

Debt To Equity Ratio [( LTD ÷ (LTD + Equity) ] * 100] 0.46 : 1 0.47 : 1

Cash Ratio [cash ÷ current liabilities ] 0.02 : 1 0.06 : 1

Working Capital [ Current Assets – Current Liabilities ] (4,803 Million) (1,167 Million)

Inventory Days [(Inventory ÷ COGS) x 365] 11 days 8 days

Inventory Turnover [(Sales ÷ Inventory)] 38.69 times 46.17 times

Payable Turnover [(Sales ÷ Trade Creditors)] 1.61 times 3.75 times

Receivable Turnover [(Sales ÷ Trade Debtors)] 3.70 times 3.97 times

Return On Equity % [(NPAT ÷ Net Worth )] -6.04% -0.04%

Return On Assets % [(NPAT ÷ Total Assets)] -3.02% -0.02%

Receivable (Days) [(Trade Debts ÷ Net Sales) x 365] 99 days 92 days

Payable (Days) [(Trade Creditors ÷ Net Sales) x

226 days 98 days
365]

EPS [(NPAT) ÷ No. Of Shares

-1.33 -0.57
Outstanding]

Cash Flow Statement

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Cash Flow from Operating Activities 1,489 Million 1,535 Million

Cash Flow from Investing Activities -1,206 Million -1,889 Million

Cash Flow from Financing Activities -434 Million 126 Million

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LIQUIDITY RATIOS
Current Ratio
0.75 : 1 0.80 : 1
[(Current Assets ÷ Current Liabilities)]

• It tells us that current liabilities could be 75% paid off through

current assets.
Quick Ratio
0.40 : 1 0.74 : 1
[(Current Assets - Inventory) ÷ Current Liabilities]

• It tells us that current liabilities could be 40% paid off through

Quick Liquidatable Assets.
Cash Liquidity Ratio
0.02 : 1 0.06 : 1
[ cash ÷ current liabilities ]

• It tells us that current liabilities could be 2% paid off through

Cash
Inventory Days
11 days 8 days
[(Inventory ÷ COGS) x 365]

• Inventory sold out period is increased to 11 days from 8 days last

year.
Receivable (Days)
99 days 92 days
[(Trade Debts ÷ Net Sales) x 365]

• Average Collection Period is increased by 7 days.

Payable (Days)
226 days 98 days
[(Trade Creditors ÷ Net Sales) x 365]

• Average payable period is increased by 128 days.

TURNOVER RATIOS
Inventory Turnover [(Sales ÷ Inventory)] 38.69 times 46.17 times

• It tells us how World call manages its inventories.

Receivable Turnover [(Sales ÷ Trade Debtors)] 3.70 times 3.97 times

• It tells us the collection pattern of the World Call.

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Payable Turnover [(Sales ÷ Trade Creditors)] 1.61 times 3.75 times

• It tells us the firm’s pattern of payment to suppliers.

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LEVERAGE RATIOS:-
Debt Coverage (Times)
0.58 0.28
[(NPAT + Depr.) ÷ (CMLTD + Interest)]

• It tells us how many times Current Maturing Long-term Debt

could be paid off through current earnings.
Interest Coverage (Times)
-1.02 -0.03
[(Net Operating Profit ÷ Interest Exp)]

• It tells us how many times interest can be paid through

Operating Profit.
Debt To Equity Ratio
0.46 : 1 0.47 : 1
[( LTD ÷ (LTD + Equity) ] * 100]

• World call maintain his debt to equity ratio almost constant as

last year.

PROFITABILITY RATIOS:-
Gross Profit Margin %
11.58% 16%
[(Gross Profit ÷ Net Sales)]

• It tells us the ability of the World Call to control cost of goods

sold which might be occur through increase in prices. The GP
Margin is decreased by 4.42% last year.
Net Profit Margin % [(NPAT ÷ Net Sales)] -15.32% -6%

• Tells us profitability after consideration o all revenue and

expense, including interest, taxes and non-operating items. it
decrease by 9.32% last year.
Return On Equity % [(NPAT ÷ Net Worth )] -6.04% -0.04%

• Tells us the rate of return on Stockholder’s Investment.

(ROI) Return On Assets %
-3.02% -0.02%
[(NPAT ÷ Total Assets)]

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 • Tells us the efficiency in managing investment in assets in
order to generating profits.
EPS
-1.33 -0.57
[(NPAT) ÷ No. Of Shares Outstanding]

• Tells the earning per common share.

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Financial Overview:-
The year remained somewhat dismal on the front of financial
performance. The Company was not able to sustain the revenue
levels which it achieved last year. Primarily the fall came due to
decline in international termination, delay in roll outs and tariff
adjustments in response to price wars. The LDI segment of the
Company remained under pressure due to lower APC (Access
Promotion Contribution) charges and termination rate instability.
The price cuts forced due to the gravity of competition and lower
traffic volumes adversely impacted the revenue lines. The depleting
margins aggravated the position as the cost of operations
continuously soared on account of macro-economic instability,
energy crises, and inflationary trends prevailing in the economy. The
decline of international segment was partly compensated as the
Company strengthened its position in the data and EVDO segment.
However the desired targets in these segments too could not be
materialized due to delay in expansion and upgrade plans.

The Company posted revenue of Rs 7,464 million which was

11% lower than the last year total. Despite all endeavors of cost
rationalization on the part of management, the direct and operating
costs remained high on account of heavy depreciation charges,
network maintenance expenses and rising cost of doing business.
The decline in revenue together with higher cost levels translated to
operating loss of Rs 762 million. The finance cost also showed
42% increase due to exposure to high cost borrowings. Fall in the
overall revenue together with high levels of costs led to closure of
period with net loss of Rs 1,147 million.

Another thing came as the Company closed TFC-III redemption worth

Rs 817 million in Oct 2010. Subsequent to that, redemption of Rs.
71 million against TFC-II was also accomplished. These hefty
payoffs nevertheless led to accumulation of some other liabilities on
the balance sheet, but honoring of such heavy commitments to
financial institutions in time can be seen as a good gesture, which
leads a company to have loss for the period.

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On the other hand, the mitigation of hefty liabilities will not only
ease the finance cost burden but would also spare resources for
productive usage in turn leading to further enhancement in the cash
generating ability of the Company. The decline in debt servicing
costs will also improve the profitability in the years ahead.

Performance Overview:-
The EVDO expansion project was also successfully conducted during
the year and the presence in seven major cities across the country
was effectively accomplished. To support the scale of operations and
to meet the customer requirement for fast and reliable services, the
Company increased number of sites and upgraded the existing sites
as well.

The first phase of funding comprising term facility of US $35

million against corporate guarantee of Omantel has been
successfully accomplished subsequent to year end. All procedural
requirements in this regard have been successfully complied with.

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PROBLEM SECTION

MAIN PROBLEMS ACCORDING TO

MANAGEMENT:-
✔ Omantel has totally changed system of management for the
company.
✔ Reducing of advertisements expense due to pressure of cost
cutting.
✔ Same reasons for not having large Marketing staff.
✔ Omantel emphasizing on ERP
✔ The delay in process of initiating an ERP.
✔ ERP is time-consuming process.
✔ New Managers are involved into current issues of the
company.
✔ Previously they were multiple companies now all of the
accounts have been reorganized and similar accounts have to
be merged.

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MAIN PROBLEMS ACCORDING TO OUR
ANALYSIS:-
✔ Giving unusual importance to LDI from very beginning.
✔ Branding and Positioning not done through proper process.
✔ Very weak franchising strategies.
✔ Franchises strength missing.
✔ Heavily lacking Long term strategies.
✔ We observe lack of coordination between different
Departments.
✔ Lack of use of BCG MATRIX for their product portfolio.
✔ Market Penetration was earlier used in Voice segment but now
being avoided.
✔ Complains by customers due to conflict in network capacity
and after sale services.
✔ Loosing potential buyers due to less Advertising.
✔ Less Promotional strategies and sales staff.
✔ No ERP, inappropriate CRM and Professional Accounting
Software.
✔ Omantel is not involving low level staff in business matters.

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STRATEGIC ALTERNATIVES:-
SOLUTIONS TO SOLVE THE PROBLEMS:-
✔ The change process must be moved top to down gradually by
Omantel.
✔ Every level of Management must be involved in the change
process.
✔ Delays in ERP (SAP) must be overcome by WC, by diverting
their focus on ERP implementation on preference basis.
✔ Business Process Reengineering is preferable solution to WC
over all problems.
✔ Using of BCG MATRIX is very important for WC to understand
their DOG and STAR products.
✔ Branding and positioning must be revised for many segments.
✔ Customer complaints and customer churn rate can be reduced
by sensible installing of networks and sales.
✔ The whole experience of the customer from the first interaction
at the touch point to the consistent usage of the service will be
enriched.
✔ Co-ordination between many Departments must be improved
as soon as possible.
✔ Omantel is coming up with Fresh Long term plans which are a
good sign; well it is highly needed and must be implemented
with unanimous agreement.
✔ The avoidance of market penetration will not benefit WC in
long run, thus WC must behave more Competitive.
✔ WC must buy professional software.
✔ First of all, franchising strength must be increased all over the
country, and then Franchises must be made more modern and
must be made more productive in reference to services and
sale.
✔ Omantel must refrain from such act which creates a perception
of job insecurity between the employees.
✔ WC having very strong physical network, the only need is
timely maintenance and proper resource utilization.

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 ✔ The planned network upgrades and expansions will ensure
delivery of seamless, high quality and reliable services to end
users
✔ The process of creating awareness about the Company's
portfolio and building an image of reliability and quality will
also be addressed with a keen vision.

FINANCIAL MEASURES
The whole Financial Projection for Worldcall is out of the scope of this
report. But we suggest some important measures that World Call should
take in order to cope up with the current loss scenario.

✔ Sales should be increased with the rapidly increase in

subscribers which results in increase in ARPU (Average
Revenue per User).
✔ Cut down Direct Costs as well as Operating Costs.
✔ Long-term Debt should be paid as soon as possible, which
results in heavy financial cost.
✔ Manage Cash in that manner so Working Capital should
become positive.

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IMPLEMENTATION PLAN
The implementation plan is discussed and suggested according to
different segments of the company:-

Overall Segment:-

Voice Segment:-

Data Segment:-

Entertainment Segment:-

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FUTURE PROJECTIONS
Pakistan continued its decline on BMI’s Business Environment Ratings for
the Asia-Pacific region. Although the country scored relatively well on the
Industry Rewards and Risks segment, we note the country faces
significant downside pressure on the macroeconomic front. While we
upgraded the country’s headline growth forecast figure to 1.5% for
FY2010/11.”

(Source: BMI)

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CONCLUSION

WorldCall is a competent telecom company in Pakistan with huge

infrastructure and backed by strong parent company Omantel. It has
strong potential to compete and grow as a leading diverse telecom
company. We have gone through thorough analysis of WorldCall and
studied almost every aspect of the company; we have
recommended strategies, solutions to major problems faced by
WorldCall. We also provided three year implementation plan that
represent a clear growth strategy for WorldCall.

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REFERENCES:-
✔ PTA Reports
✔ http://www.worldcall.net.pk
✔ http://www.worldcall.com.pk
✔ http://pakng.wordpress.com/pakistan-telecom-laws/
✔ http://telecompk.net/
✔ http://telecompk.net/2009/08/20/swot-analysis-pakistan-
telecom-industry/
✔ http://goutham.wordpress.com/2008/02/07/us-telecom-
industry-analysis/
✔ http://propakistani.pk

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