Telenor's annual reporting 2006 Annual review 2006

Pakistan:
Succeeding in new markets

At year-end 2006, after less than two years of operation, Telenor Pakistan provided mobile communications to more than seven million customers.

With more than 168 million people, Pakistan is the world’s sixth largest country. In terms of mobile penetration it is also one of the world’s largest emerging markets. Growth is picking up fast, however, with Telenor Pakistan adding 2.1 million new customers in the fourth quarter alone. Securing almost 50 per cent of the total number of net additions in the period, Telenor Pakistan now operates the country’s fastest-growing mobile network. The striking growth rate has been achieved through the application of a highly successful business model, local enthusiasm and hard work.

When the Pakistani mobile licence was first obtained, Telenor Pakistan took on an obligation to provide coverage to 208 of Pakistan’s “Tehsil” headquarters within four years. This milestone was been achieved two years ahead of schedule – a clear statement of intent.

Reaching out

Network rollout is only one aspect of the success story. Telenor Pakistan is also working hard to reach out to customers in rural communities. Innovative marketing, including mobile sales outlets in rural areas has proved a huge success. In villages around the country, interactive theatre performances have been staged alongside huge wall-painted ads.

Significant investments

Telenor Pakistan’s rapid rollout makes its overall contribution to the Pakistani economy significant. In 2005, the company invested around USD 300 million, which amounted to Pakistan’s largest foreign direct investment. During the first ten years of operation, total investments will be in excess of USD 1 billion.

Human Capital

Together with industry partners Nokia and Siemens, Telenor Pakistan is also involved in the development of human capital from the lower socio-economic classes. The Telecom Futures programme aims at building on the Technical Education & Vocational Training Authority’s Higher National Diploma in Telecom by aligning the curriculum with industry expectations, providing advanced training and rewards to teachers, sharing specialised equipment with students, and offering internships or jobs to suitable diploma holders.

We spoke to Telenor Pakistan CEO Tore Johnsen, who sees a bright future for the operation he heads. He has a clear notion of his company’s success:

“Telenor Pakistan is obviously different from the competition. Our culture is different, our values are different and our focus on the fundamentals of business is different. We are building core strengths and we are putting them to work better than anyone else at this point. We operate the second largest network in the country, we have the most diverse product portfolio, the fastest growing distribution, and one of the strongest organisations in the industry. Telenor Pakistan is fully involved with its key stakeholders and trusted as a friend of the community,”

"Customers want value and what we have been able to do is reach out and offer value. It is too simple to say that all customers want are low prices. Customers want superior products, services, availability, and the peace of mind that comes from dealing with a successful and trustworthy company. Telenor Pakistan has worked hard to be able to offer all this,” Johnsen says.