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Strategic Marketing

In: Business and Management

Submitted By famma
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NUST Business School

MKT-323 Services Marketing
Analysis of the Pakistani 3G/4G Industry

Submitted to;
Mrs. Rabeil Khan Submitted by;
Saad Tanvir Ahmed, Nawaal Rizwan, Fatima Tanveer,
Ayesha Manzoor and Faizan Tariq

BBA 2K12 (B)

Contents Executive Summary 3 Introduction 3 About 3G/4G 3 The Pakistani Market 3 Warid 5 Zong: 7 3G and 4G: 7 Pricing Strategy: 7 Packages: 8 4G packages: 9 Branding Strategy: 9 Telenor 12 Pricing strategy: 12 Prepaid: 12 Activation: 12 3G Packages 13 Terms and Conditions 13 Video Call 14 Postpaid: 14 Professional Smart Plans 14 Terms and conditions: 15 Postpaid Internet bundle 15 Terms and Conditions 15 Video call: 16 3G enabled USB Dongle: 16 Packages: 16 Terms and Conditions 17 Branding Strategy: 17 Mobilink: 19 Pricing Strategy: 19 PREPAID: 20 Activation of Mobilink 3G: 20 Mobilink 3G Packages: 20 Video Calling: 21 POSTPAID: 22 3G enabled USB Dongle: 22 Branding Strategy: 23 Ufone: 28 Pricing Strategy: 28 Packages 29 Analysis: 31 Branding Strategy: 31 For the average student 34 Conclusion 37 References 37

Executive Summary
Four of the telecom operators (Ufone, Zong, Telenor and Mobilink) got the license of 3G internet in the auction of April, 2014. All the operators plan to give efficient and innovative services to their customer. Each of the network is trying to provide beneficial services in the form of different mobile internet bundles and other packages. This makes easy for those customers who don’t have access to Wi-Fi or other wireless internet connections. All of these networks attract customers by different advertising and promotional activities.
Only Zong launched 4G internet in Pakistan and remaining operators didn’t get the bid to launch 4G. Here we have provided pricing and branding strategies of Ufone, Zong, Telenor and Mobilink which shows that there is a lot of competition in their branding and pricing strategies.

Introduction
About 3G/4G
3G and 4G stands for 3rd generation and 4th generation internet protocols. A 3/4G network needs to meet a certain international standard of reliability and speed. These usually make use of the W-CDMA and the HSPA operating protocol on the 2.100MHZ frequency range, the actual frequency used differs from provider to provider. These networks have in theory been proven to provide internet speeds of over 600 MBits per second. In 4G networks operators have an option of three different network infrastructures, Long Term Evaluation (LTE), Ultra Mobile Broadband (UMB) or IEEE 802.16 (WiMax).
The Pakistani Market
Pakistan is fairly new in the 3G arena with the auction of the 3G licenses taking place in May 2014. Four of the telecom operators (Ufone, Zong, Telenor and Mobilink) in Pakistan now have fully functional 3G networks as well as various packages being offered to the customers. 3G internet makes it easier for consumers to use the internet on the go when they don't have access to wireless internet. Here what we have done is provided a comparison of the 4 telecom operators in Pakistan as they are competing in the 3G aspect of their services. We took into consideration all of their packages as well as their pricing strategies along with the way these companies have marketed their new 3G service as well as the packages. We have also described which network service packages are better for an average student. Thus this came out to be the Mobilink.

Warid
Warid telecom private limited is Abu Dhabi owner GSM operator and currently the only operator without a 3G or a 4G license. Warid telecom private limited has however made public statements including launching a banner on its website regarding the launch of the 4G/LTE infrastructure in the market. The operator currently provides only GPRS based services.

Warid has not given any proposed tariffs or internet plans for its 4G/LTE service but their current packages are expected to be used on the faster network as well.
Daily Bundles | Price | How to subscribe | How to check remaining free MBs | 2 MB | Rs.3.5 | SMS 2 MB to 7777 | Dial *200*4# | 15 MB | Rs.11.99 | SMS 15 MB to 7777 | Dial *200*4# | Unlimited | Rs.9.99 | SMS UL to 7777 | Dial *200*4# |
Weekly Bundles | Price | How to subscribe | How to check remaining free MBs | 250 MB | Rs.35 | SMS WM to 7777 | Dial *200*9# |
Monthly Bundles | Price | How to subscribe | How to check remaining free MBs | 10 MB | Rs.30 | SMS 10 MB to 7777 | Dial *200*3# | 100 MB | Rs.99.99 | SMS 100 MB to 7777 | Dial *200*3# | 500 MB | Rs.150 | SMS 500 MB to 7777 | Dial *200*3# | 2GB | Rs.500 | SMS 2GB to 7777 | Dial *200*3# |
Daily Recursive Bundles
Subscribe once and let us re-subscribe it for you daily | Price | How to subscribe | How to check remaining free MBs | Daily Bundle 2MB | Rs.3.50 | SMS R2MB to 77777 | Dial *200*4# | Daily Bundle 15MB | Rs.11.99 | SMS R15MB to 7777 | Dial *200*4# | Daily Unlimited | Rs.9.99 | SMS RUL to 7777 | Dial *200*4# |

Zong:
Zong being the brand of China Mobile aims at “touching the lives of all Pakistanis”. It comes at the third number of total telecommunication networks being operated in Pakistan containing the 19% of total subscribers. Zong aims and plans high by promising its users to give diverse set of entertaining and informative value added services. They state to give innovative technology to keep pace with today’s fast moving culture. They plan to give excellent and efficient service in every corner. Zong wants to give its customers a unique experience by giving the best possible mobile internet bundles and other facilitating services that are not offered anywhere else in the country. They want to make everything clear and stress free environment by providing the best quality and network coverage where its users are not worried about hidden charges, tariffs etc.
They state, “Walking hand in hand with our nation, we make a happier Pakistan! A thriving ground with success on every step, with a smile on everyone's face be it rain or shine, with hopes higher than sky and the will… to 'Say it All!'”
3G and 4G:
It launched its 3G and 4G LTE with a lot of advertisements on print and social media. Zong, the only network that launched 3G and 4G LTE at the same time in Pakistan. Zong claims that it would bring the best internet speed and will fulfill all of your needs. Ease of connectivity with a lot of entertainment, fast downloads; live streaming, videos and games will leave an overwhelming experience on our users. Their 4G LTE is currently available in the main cities of Pakistan, including Islamabad, Rawalpindi, Lahore, Karachi, Faisalabad, Peshawar and Quetta because in these cities Zong has the highest customer base.
Pricing Strategy:
Zong has different pricing strategies for its different customers. It gives its customers a wide option to choose from different packages with different prices. Its pricing strategy also depends on its competitors and most of time it is on price wars with different competitors. Its pricing strategy varies according to its packages. These packages can be daily, weekly and monthly varying on the basis of internet speed, time and their prices. Details are given below:
Packages:

4G packages:

Branding Strategy:
Zong launched its 3G and 4G LTE with alit of advertisement on print and social media. Zong struggled a lot on its marketing and advertisement since it was launched. They did brought the best marketing campaigns in the past and are also doing the same after the launch of 3G and 4G. As marketing may add positive or negative image to the brand but Zong always tried to markets itself to add value to their brand name, increase in sales and revenues, improve the image of organization and team spirit to lead the toward achieving the goals of short term and long term growth. Zong also won the Brand of the Year Award in 2009 in the category of cellular services providers. Zong had the great capacity to capture and attract a lot of consumer base through its marketing and advertisements.
Zong also focused in its advertisements showing people coming to zong who were initially using some other network but now they are on Zong because of cheaper rates, quality and efficiency by Zong.
Zong launched a lot of campaigns after 3G and 4G auction illustrating the speed factor, difference between regular 3G and Zong super 3G, highlighting video calls, games, movies and social media in its commercials. Some of their details are given below:
Zong recently launched advertising for its super 3G.in this advertisement Zong claims to provide fastest 3G services than any other 3G operator in Pakistan because Zong is super 3G.however experts in telecommunication sector said that it is possible in reality because Pakistan’s infrastructure don’t allow that. This campaign was launched about two months after the auction of 3G.
Zong focused a lot on social media in its advertisements showing people to use social networks, games, movies on their handset devices with a fastest internet speed that no other telecommunication network can provide.
Zong highlights its brand to be best in telecommunication sector of Pakistan because it acquire the both super 3G and 4G LTE as being the only network with 4G so is the best network in Pakistan. It compares the prices and branding with its competitors.
However still there is a lot of improvement is needed in its marketing strategies, through which it can acquire the better place in telecommunication sector and can attract a lot of customer base.

Telenor
Telenor telecom is a GSM based mobile operator in Pakistan. It entered Pakistan’s telecomm industry in 2004. It is 100% owned by Telenor group. It commenced its cellular services in April 2004. Warid has nearly 35 million users in Pakistan, which is about 25% of the market and covers more than 3500 cities and towns across Pakistan. Telenor was one of the four companies to win 3G auction in Pakistan and launched for the first time its 3G services within few days in Islamabad on Friday 30th May 2014 and was the second company to do it. Currently Telenor offers 3G services in 32 cities. Telenor expanded its 3G coverage in 4 phases. It added 13 more cities in its 3G coverage in its latest 4th phase. In each phase Telenor offered free 3G services for the first few weeks in order to let its customers experience the service for the first time.
Telenor didn’t win the auction for 4G, which is why Telenor does not offer 4G services as of now.
Pricing strategy:
Telenor has many different pricing strategies for different customers. This provides customers with a large selection of bundles and offers they can avail and also lets Telenor appeal to a broader customer base. There is no activation mechanism. Telenor 3G is on by default. To use Telenor 3G, you simply need to be in a 3G coverage area and have a 3G capable handset. Speed varies with a number of factors, including the handset, coverage, network traffic and number of users using the 3G network at a particular point of time. However, as Telenor 3G utilizes the best in line HSPA+ technology, it can provide best in line quality, fulfilling customers need for speed. In order to check whether customers are in 3G coverage area or not you can dial *7799#, which is free of cost. You will receive confirmation over SMS. With no activated bundle or package customer will be charged @ 10paisa/ 10 Kb to a maximum amount of 50 after which internet will be free for the rest of the day.
Prepaid:
Activation:
There is no activation mechanism. Telenor 3G is on by default
3G Packages
Encouraged by Ufone 3G packages plan for both prepaid and postpaid customers, Telenor announced its own 3G packages. Unlike Ufone, which announced its 3G packages on the same day as their 3G inauguration, Telenor was a bit late in doing it. Telenor 3G packages plan took effect on 1st June, 2014
Followings are the details.

Terms and Conditions * Default rate, Usage without subscribing to bundles will be charged at 10 Paisa (incl. tax) / 10 KB. * There is no tax on internet bundles. * After Rs.50 of daily charging on default rate further usage will be completely free for the rest of the day * Additional usage after bundles are consumed will be charged at 1 Paisa (incl. tax) / 10 KB (valid till bundle end date) * 3G bundles will work both on 2G and 3G * 2G bundles will not work on Telenor 3G
Video Call
Video call will be charged at Rs.2 + tax for 5 minutes. Followings are a few terms and conditions for video calling * Charging of Video Call will be done on a 5 Minutes Basis. * A video call capable phone is required. * Both parties need to be in 3G area and have 3G Video Call capable phone. * Please note Hangout, FaceTime, Skype and other OTT apps will be charged as per the relevant Data / Internet Rate.
Postpaid:
Postpaid customers are offered two types of packages. First one is professional smart plans and second one is Postpaid Internet bundle.
Professional Smart Plans
Followings are the details for professional smart plans

Terms and conditions: * SMS Rate Rs.1/SMS * Telenor Call Rate Rs.1.4/min * Other Network Call Rate Rs.1.5/min * Video call rate: Rs.2/ 5min * Smart Plans will work on both 2G & 3G * 2G & 3G Default Internet charges after free internet volume consumption will be 1 paisa/10 kb * Bundle spill rate on Smart plans will be 1 paisa/10kb
Postpaid Internet bundle
Followings are the details for Postpaid Internet bundle

Terms and Conditions * Internet Bundles are available on all Postpaid price plans including Smart plans * Default rate, usage without subscribing to bundles will be charged at 10 Paisa / 10 KB * Additional usage after bundles are consumed will be charged at 5 Paisa / 10 KB (valid till bundle end date) * Internet Bundles will work on both 2G & 3G
Video call:
Video call will be charged at Rs.2 + tax for 5 minutes. Followings are a few terms and conditions for video calling * Charging of Video Call will be done on a 5 Minutes Basis.
3G enabled USB Dongle:
Telenor brought best 3G experience by introducing technologically advanced 3G enabled USB dongles. You need to get registered on the biometric kiosks using your thumb impression to activate your Data SIM.
Telenor USB Dongles provide flexibility, value for money and the assurance of no hidden charges.
The price for dongle is Rs.2,500.
Activation:
In order to activate USB dongle, send "SUB" to "6004". Select the desired bundle from the received SMS Menu
Packages:
Following is the details of packages offered on 3G USB dongles.

Terms and Conditions * Data SIM registered through a biometric kiosk is required to get data services on dongle. * Free Usage is from 1AM to 8AM and given 500 MB daily for this time period. * Free 1500 MB will be given as 500 MB* / Month for 3 months. * If you are not in 3G area Data SIM will seamlessly shift to 2G internet.
Branding Strategy:
After the auction of 3G license Telenor was the second company to commence its 3G services. It increased its coverage area in four phases. In every phase Telenor offered its new 3G customers free 3G internet for the first few weeks. It was done in order to let its customers know about 3G internet and its benefits. This strategy was very welcomed by its customers, who for the first time experienced the lightning fast speed of 3G internet.
As soon as the launch of 3G services, with coverage area at the time of only four cities which are Islamabad, Karachi, Lahore and Rawalpindi, Telenor launched its first TV commercial. This 45 sec commercial highlighted lightning fast speed of 3G internet, how to activate 3G and offering of free 3G internet. This was a very successful campaign as it put Telenor in the lime light as a 3G services provider. Telenor made sure that customers are told about the expiry date of free 3G internet with expiry messages. At the end of free 3G internet offering. Telenor started a campaign to communicate its new bundles and packages. In these ads Telenor also highlighted video calling. Along with TC commercial Telenor also used large bill boards showing new offerings, free internet and other advertisements.
Telenor expanded its 3G coverage area in 4 different phases. In each phase Telenor offered free 3G internet. Telenor used TV commercials to announce new phases and progress of expanding 3G coverage and large bill boards in relevant cities highlighting newly commencing 3G services and Free internet offers. This strategy allowed Telenor to focus on customers in those areas only, which enabled Telenor to use more extensive advertisement campaigns in those areas. In the latest, advertisements Telenor announced 5th phase of commercial roll out, in which Telenor will increase its coverage area to 45 cities and 1.3 million customers.
Most of the mobile customers in Pakistan had 2G phones only and logically, with four different companies commencing their 3G services the demand for 3G enabled phones was going up. Telenor seized this opportunity by making contracts with different mobile manufacturing companies and offered different deals like 6 month free 3G internet etc. This strategy was very effective on two levels. First every new buyer if those cell phones would have to use Telenor as their cellular service provider increasing Telenor customer base and second both Telenor and mobile manufacturer highlighted these deals in their commercials making them more effective and also lowered advertisement costs.

Mobilink:
Mobilink is Pakistan’s leading provider of voice and data services. With over 37 million subscribers, Mobilink maintains market leadership with coverage in over 20,000 cities, towns and villages across Pakistan. Mobilink promises its customers to provide them the best quality network in each and every corner of Pakistan and they are consistently trying their best to give their customers an absolute freedom to connect to the world where ever they are. Mobilink acquired the 10MHz 3G license and launched it in eight major cities of Pakistan in April, 2014, which expanded to 10 cities in June. With an aggressive roll-out plan for the future, Mobilink is currently providing 3G services in Karachi, Quetta, Faisalabad, Lahore, Islamabad, Rawalpindi, Peshawar, and Multan, while Gujranwala and Sialkot have been added recently.
Mobilink Chief Commercial Officer Bilal Munir Sheikh, commenting on the extension of free 3G services said, “It is part of our strategy to have a forward looking approach regarding 3G roll-outs and providing 3G services to our customers. We are serving our customers with the 10MHz spectrum, which brings them at par with international data services. I am confident that our unmatched customer experience and robust network will uphold the tradition of providing unrivalled services to our customers in the days to come.”
Mobilink did not bid for the 4G license.
Pricing Strategy:
To avail 3G services, the customer will simply have to enable 3G on his supported handset and then restart the phone. To activate 3G & Video calling on your prepaid SIM, send SUB on 7003 without any charges. The free 3G service is accessible to both postpaid and prepaid customers with 3G enabled handsets. The free 3G services are available on all existing and new Mobilink SIM.
Mobilink has finally marked the commercial launch of its 3G service and also started to charge customers for the 3G service. With this, Mobilink also announced its 3G packages that come with several bundles and options for the users to experience 3G services. Mobilink has an average 3G download speed of 1.1 Mb/s, which is worse than the global average of 1.8 Mb/s. Base rate is a default rate. This means that if you are not subscribed to any bundle, you will be charged according to base rate i.e. PKR 18/ MB at 2G speed even if subscriber is connected to a 3G network.
PREPAID:
Activation of Mobilink 3G:
Unlike other operators, Mobilink users will have to activate their 3G services. According to Mobilink, customers will have to dial *443# and select the “3G activation” option. Otherwise, send SUB to 7003 for 3G activation. This activation is free.
Mobilink 3G Packages:
Mobilink is offering 3 day, weekly and monthly 3G bundles for its customers. 4GB is maximum limit for the monthly bundle and is priced at Rs. 600 per month. Mobilink’s 3G packages are not auto renewable means that customers will have to renew their data bundles every time to continue using the 3G bundles. There is so much hassle in this activation process especially for those who will go for daily 3G packages. 3G bundles can be subscribed and consumed in both 2G and 3G networks. 3G bundles can be consumed at 3G speed within 3G network and at best possible speed within 2G network.
Given below are the 3G packages:
**There are no charges for checking the validity and MBs.

Video Calling: * Video call will be activated by default along with 3G services * The billing pulse for Video Calling is 30 seconds * Video Calling is only possible in 3G network and will require a handset capable of making a video call
**There are no charges for checking the validity and MBs.

POSTPAID:
Mobilink Postpaid 3G bundles enables to enjoy unlimited entertainment. To subscribe to 3G bundles dial *446#. Alternatively, customers can dial 111 or visit their nearest business center/franchise. Monthly Mini & Max bundles are pro-rated and will be renewed automatically. Subscriber will be charged at PKR 18/MB. Data charges will not apply after data consumption of Rs. 2000 on Pay as you Use (default rate).
Postpaid 3G Bundles are:

3G enabled USB Dongle:
Mobilink recently broke the ice by introducing the first 3G enabled USB Dongle in Pakistan. Branded with the name of speednet, the device comes with a free trial for 3G services and offers high speed internet reaching up to 7.2 Mbit/s. Speednet USBs is currently priced at PKR 2,500. During the trial duration, Speednet function without any charges. Later on, after commercial launch of Mobilink’s 3G services, customers will be allowed to select their desired data plans as per their needs. Speednet USB Dongles are available at Mobilink Customer Care Centers in Karachi, Lahore, Islamabad, Rawalpindi, Quetta, Peshawar, Faisalabad and Multan. The USB dongles are compatible with USB supported laptops and desktops of all brands. The device is plug and play and comes with packaged software for installation.

Branding Strategy:
Following the auction of 3G license Mobilink was the only operator to empower customers with free 3G services as a means to celebrate its 20 years of operations in Pakistan as well as increase awareness about high-speed internet. This gesture was much welcomed by customers as it enabled them to try out Mobilink’s high-speed mobile internet services free of charge for a period of 2 months. Mobilink has mysteriously delayed commercial launch of 3G services. Company named the delaying policy as a part of a promotion to win the hearts of users.
Mobilink 3G customers have reached 1 million mark rendering it as the fasted growing 3G service in Pakistan. Mobilink hit the 1 million mark within 90 days of commercial launch which is the fastest uptake of 3G services of any cellular operator in Pakistan. Mobilink’s 3G services were launched in July this year and continue to provide high-speed internet to customers in 12 cities of Pakistan and counting.
Mobilink is using a rather perplexing graphic to promote its 3G services. A weird cross between a 3, lower-case G and a random dot is what you’ll be seeing as the official Mobilink identifier of 3G service. With a brilliant use of ambigram, Mobilink managed to accommodate 3 different words i.e. ‘3’ ‘??’ and g.
Mobilink has launched Pakistan’s first “Phone Trade Program” enabling its customers to exchange their old cell phones with the latest 3G supported smart phones of their choice by paying the differential cost. The program is aimed at providing Mobilink customers with affordable access to 3G smartphones through a trusted retail channel for exchange of their devices. The newly purchased phones will come with Mobilink pre-loaded 3-month data bundle offer. Customers can exchange their old handsets, after proper verification of IMEI and security checks, with brand new 3G supported smart phones with pre-loaded data bundle offer with fair usage of 2GB.
MAY, 2014 – Mobilink has launched 3G enabled Dany Tablets in collaboration with Dany Mobile for customers. In line with Mobilink’s strategy of providing quality devices at the most affordable rates, these 3G ready tablets will provide customers the ability to experience the next generation mobile services, with a 3 month free data bundle

Mobilink has launched 3G enabled Windows 8.1 Nokia Lumia 630 in collaboration with Nokia for customers. Nokia Lumia 630 handsets will be available nationwide on all Nokia retail outlets. Customers will be able to purchase brand new 3G ready handset for only PKR 17,600 with a pre-loaded data bundle offer with fair usage of 6GB. In order to celebrate this achievement, Mobilink launched a major communication drive across mainstream TV, radio, print and social media to emphasize the company’s bigger, better and faster network supremacy so that their customers never miss a moment.

Ufone:
Ufone was the first telecom operator to commercially launch 3G in Pakistan, in Islamabad, Lahore, Rawalpindi and Karachi. Ufone started off with a free trial in the 4 cities mentioned above as well as Peshawar, Faisalabad, Multan, Gujranwala, Sialkot and Quetta. On May 24th, it ended the free trial and launched 3G in the commercial sector in the 4 cities whereas the cities’ customers retained their free 3G services until the commercial launch, which was almost a week after the first commercial launch. This made Ufone’s 3G services available in 9 cities commercially, ahead of any telecom operator. The 3G launch by Ufone is a prime example of both leading – edge innovation and quality of service and the customers can enjoy seamless and uninterrupted connectivity. The provision of these services is in compliance with the Information Memorandum and will have long term benefits such as an increase in GDP, public funding and improved productivity.
Ufone did not win the bid for a 4G licence and hence does offer 4G as of now.
Pricing Strategy:
Ufone has 17 different packages available for customers to choose from. This provides customers with a large selection of bundles and offers they can avail and also lets Ufone appeal to a broader customer base.
Before the launch of the 3G packages, Ufone’s initial pricing strategy is explained as follows: * Rs.20 for the 1st MB * Next 19 MBs will be free * 20th MB will be charged at Rs.20/MB * 21st MB till 40th MB will again be free * 40th MB will be charged at Rs.20/MB * The cycle then continues for each multiples of 20
After the commercial launch of the 3G services, Ufone also launched its different packages. The packages were priced for every man, which is to say the starting price for some packages was as low as Rs. 5/ half day at 265 Kbps to a maximum limit of Rs. 1500/ half day for 3Mbps speeds. This means that customers can choose from a variety of different packages catering to their needs. The monthly data limit for Ufone 3G is 3Mbp and the data volume ranges from a limit of 50MB to 30GB.
Packages
1. PAYG 3G Package – this is the default package that comes without any data bundles. The pricing of this package is the same as the base tariffs that were explained above. This package provides the speed of 1Mbps through the first 20MBs and then 512Kbps for the rest of the day. After every 20MBs used, it resets and the Rs.20 charges apply once again for 1MB while the rest of the 19MBs. 2. Ufone Basic 3G Package (up to 256 Kbps) – This package comes with 6 different bundles that customers can choose from. There are half day, daily, weekly and monthly bundles available with data limits of 1GB, 1.5GB and 3GB respectively. Following are the bundles with their prices: 3G Package | Charges (PKR) | Volume | Validity (Days) | Price/ MB | Half Day | 5 | 50 MB | 20 Hours | 0.10 | Daily | 10 | 40 MB | 1 | 0.25 | Weekly | 50 | 250 MB | 7 | 0.20 | Monthly 1 GB | 200 | 1 GB | 30 | 0.195 | Monthly 1.5 GB | 250 | 1.5 GB | 30 | 0.16 | Monthly 3 GB | 500 | 3 GB | 30 | 0.16 |

3. Ufone Super 3G Package (up to 512 Kbps) – The details for the various bundles available in this package are as follows:

3G Package | Charges (PKR) | Volume | Validity (Days) | Price/MB | Weekly | 75 | 250 MB | 7 | 0.30 | Monthly 1 GB | 400 | 1 GB | 30 | 0.39 | Monthly 1.5 GB | 550 | 1.5 GB | 30 | 0.36 | Monthly 3 GB | 800 | 3 GB | 30 | 0.26 |

4. Ultra Ufone 3G Package (up to 1 Mbps) – The details for the variety of bundles available in this package are described in the table below:

3G Package | Charges (PKR) | Volume | Validity (Days) | Price/MB | Weekly | 125 | 250 MB | 7 | 0.50 | Monthly 1 GB | 550 | 1 GB | 30 | 0.54 | Monthly 1.5 GB | 675 | 1.5 GB | 30 | 0.44 | Monthly 3 GB | 1250 | 3 GB | 30 | 0.41 |

5. Super Ultra Ufone 3G Package (up to 3 Mbps) – This package for users that subscribe for the monthly packages as this speed is only available for monthly packages. The details of the bundles are as follows:

3G Package | Charges (PKR) | Volume | Validity (Days) | Price/MB | Monthly 1 GB | 725 | 1 GB | 30 | 0.71 | Monthly 1.5 GB | 900 | 1.5 GB | 30 | 0.59 | Monthly 3 GB | 1500 | 3 GB | 30 | 0.49 |

6. Postpaid Packages – The following packages are offered for the customers that are on the postpaid plan:

Basic 3G Package (Upto 256 Kbps) | Charges (PKR) | Volume | Validity (Days) | Price/MB | Monthly 1 GB | 200 | 1 GB | 30 | 0.195 | Monthly 3 GB | 500 | 3 GB | 30 | 0.16 | Super Bucket (Upto 512 Kbps) | Charges (PKR) | Volume | Validity (Days) | Price/MB | Monthly 1 GB | 500 | 1 GB | 30 | 0.49 | Monthly 3 GB | 800 | 3 GB | 30 | 0.26 | Ultra Bucket (Upto 3 Mbps) | Charges (PKR) | Volume | Validity (Days) | Price/MB | Monthly 1 GB | 800 | 1 GB | 30 | 0.78 | Monthly 3 GB | 1200 | 3 GB | 30 | 0.39 | Analysis:
These are all the packages that Ufone offers to their postpaid and prepaid customers. Ufone was the first one was to release 3G commercially and the packages as well so they didn’t have to price their packages competitively as there was nothing to be up against. They did however give their customers the lowest prices for all of their packages as well as giving themselves enough profit margin. They have different prices per MB for the different speeds they offer but all of them are under 1RS for each MB and hence customers get more for what they pay. The fact that Ufone has so many packages available gives the customers a clear handle on how much they want to spend depending on the speed they want for the work they have to do using 3G. Overall Ufone is using a Market Penetration strategy to price their 3G services.

Branding Strategy:
Ufone didn’t need to convince much when it came to getting consumers to start using the 3G services it was going to be providing. Ufone as a telecom operator has been on the top many times due to its affordable call and SMS packages as well as its various promotion deals.
Ufone announced its attainment of a 3G license through a 55 second TVC which showed off the chart speeds with which 3G works on Ufone and compared it to a Lamborghini. The voice over on the TVC then informs the viewer of how Ufone has gotten its license for 3G and will be providing its customers very soon with the service and right at the end it is implied that by moving onto 3G, Ufone has indeed been granted a higher position than it had before.
After this TVC, Ufone started slowly letting consumers know about its 3G license and the services it provides. Ufone gave a 30 day free trial to every Ufone customer in areas where 3G would be soon be commercialized. This gave Ufone a competitive edge as no other telecom operators had this option available at that point. Ufone took extra care in the fact that customers should be in the know as to when their free trial would expire and hence mass messages were sent out to customers about the end date of their trail as well as options of subscribing to different packages that would be offered once Ufone 3G became commercialized.
This was a smart move on Ufone’s part as they showed their consumers how 3G works and how it acts as a catalyst to their daily internet needs. After consumers got used to the high speed and the benefits, Ufone decided to charge for these services which the consumers now wanted more since they had had a taste of it. Ufone then released its different packages and priced very reasonably.
After these packages were announced, Ufone had banners on Facebook, Twitter and other such electronic media sites. Billboards have Ufone 3G advertisements on them as well as the sides of the overpasses on different highways. Ufone basically had the same advertisements for all the cities that it was offering 3G in.
In Islamabad, there is a pretty large Ufone 3G display on the F-10 Markaz round about. Similar displays have been put up in Lahore and Karachi in main commercial areas where there is a lot of traffic as well as foot traffic. Ufone is making sure that consumers see how many different sites you can use while using 3G and its reinforcing it with these displays as well the billboards as people can see them while passing by or being stuck in traffic. The promotion on social media is also an example of reinforcing as the young generation is a market segment that Ufone will benefit from very much.
The biggest promotional step that Ufone took was to go ahead and offer consumers with 2G phones an offer to upgrade and replace it with a 3G phone. The consumers could simply bring in their 2G phone and with a little payment go back home with a 3G handset and use Ufone 3G. Ufone also released a 3G handset which is one of the lowest priced smart phones in the market today. This allowed Ufone to broaden their 3G using customer base and hence earn more revenue. Ufone has always been on par with every other telecom operator with its quirky television advertisements and its extensive promotion campaigns over the social media as well the print media and it was no exception when it came to promoting its 3G services. Ufone has employed all of the different platforms available for promotions and has made sure that its ideas and products are reinforced again and again so consumers don’t forget them and buy and use the services.

For the average student
We assumed that the user had no DSL or any other manner of going online (WIFI) because achieving this state is the actual goal of the telecom companies. We obtained the average internet usage by checking the inbuilt data counters in 20 phones and then took an average of the usages to obtain 5.63 GB of bandwidth per month.

We found using the above model that for an average user, who does not have access to any other source of internet, the Mobilink 3-Day bundle provides the best possible results. We assumed in this model that a user can Re-subscribe to any given package whenever he runs out of data usage and that he cannot carry forward his data to the next month if his term validity is less than 30 days even if he has some validity left in his data plan. The model calculates per month volumes and costs for each package and then calculates how many times a user must subscribe to the package in order to get enough data volume for the month, this lets us compare what the costs are for each package per month regardless of the original package duration and helps make an objective decision regarding the best possible package for the user. Warid was not included in the model as they do not have active 3G/4G internet services that students can use.
Next we decided to simulate what affect having a secondary source of internet would have on the plan of choice for the student, for this we once again raided the mobile phones and found that an average user who relies heavily on data services when there is no alternate source of internet available uses about 290 MB of internet per month. We chose to simulate this scenario because this more clearly reflects the actual market condition where most users have access to a stable DSL and WI-FI connection at work, home and almost anywhere they might end up going. The following image displays the results of this simulation.

This simulation shows that with a low data usage policy, you can choose between the Mobilink 3-Month package and the Zong Monthly Mini package as they both cost Rs.100 per month.

Conclusion
By comparing all the packages offered by each different service provider it is possible to see the different stratifies adopted by the ISPs. Some have tried to segment the market by giving multiple bandwidth options to ease the burden on both their systems and their users’ bottom line, others have offered a wide array or volume/duration mixtures to ensure their customers always get the best possible bargain.
We believe that Mobilink has offered the best possible packages for the average student, contrary to its traditional market image of being more expensive than others. The research also proves that there is extreme competition between the different service providers as far as branding is concerned and that many ISPs now directly target other brands using their print and TVC advertisements. It was also found that despite having the fastest 4G network, Zong has been slow in rolling it out, launching it in only a very small number of locations, this fact has been taken advantage of by all other service providers who have already set up shop in more than 7 cities each with Mobilink already having 1 Million 3G subscribers.
References
http://www.mobilink.com.pk/mobile-internet/mobilink-3g-prepaid/ http://www.mobilink.com.pk/mobile-internet-services/postpaid/ http://www.simspk.com/category/jazz-packages/mobilink-jazz-3g-packages/ http://propakistani.pk/2014/07/18/mobilink-announces-its-3g-packages/ http://www.mobilink.com.pk/media-center/mobilink-provides-free-3g-services-across-major-cities-pakistan/ http://waridtel.com/postpaid/ir/3g-roaming.php http://www.3jig.com/news/pakistan-news/warid-4g-lte-internet-service-packages-details-in-pakistan http://www.pakstatus.com/2014/05/ufonetelenorzongmoblinkwarid-3g-4g-internet-service-in-pakistan-2014/ http://www.ufone.com/3g/tariff/prepaid/ http://www.ufone.com/3G/Tariff/Postpay/ http://www.phonemarket.com.pk/compare-3g-internet-packages-zong-ufone-telenor-more http://news.paktron.net/2014/05/ufone-introduces-3g-packages-internet.html http://www.telenor.com.pk/3ginternet http://www.telenor.com.pk/coverage http://www.thenews.com.pk/Todays-News-3-272914-Telenor-plans-3G-network-in-32-cities http://www.simspk.com/category/telenor-packages/telenor-3g-packages/ http://nation.com.pk/business/16-Jul-2014/telenor-pakistan-powers-10-more-cities-with-3g http://www.zong.com.pk/value-added-services/mobile-internet/internet-packages/all-mobile-internet-packages http://www.zong.com.pk/3g
http://propakistani.pk/2014/06/13/zong-unveils-its-3g-packages/

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