Research Analyst
May 18 - 24, 2009

Telenor Pakistan launched its operations in March 2005 as the single largest direct European investor in Pakistan, setting precedence for further foreign investments in the telecom sector. Telenor has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country. Telenor is the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. The company is keeping ahead by investing heavily in infrastructure expansion. With USD2 billion already invested, the company has extended agreements with their vendors for network expansion and services until 2009. The agreements, with a potential to result in USD750 million worth of orders from Telenor Pakistan, are some of the unique of their kind in the industry. The company is spread across Pakistan, creating 2,500 direct and 25,000 plus indirect employment opportunities. Telenor has a network of 23 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets.

H1O5 0.8
H2O5 1.9
H1O6 3.2
H2O6 6.7
H1O7 10.7
H2O7 14.6
H1O8E 18
Various Sources


During 2008, Telenor's operations in Asia reached close to 66 million subscriptions, mainly driven by Telenor Pakistan and Grameenphone in Bangladesh. In spite of increased competition and price pressure, revenues increased by 17% in Telenor Pakistan. The EBITDA margin before other income and expenses for 2008 in Telenor Pakistan increased significantly as a result of subscription growth and reduction in the number of leased lines by owned fibre network.


Telenor gives its customers the access to Internet from mobile phone or personal computer with Telenor's largest GPRS service at over numerous destinations across Pakistan, where ever there is Telenor coverage. Telenor acquired the license for providing GSM 900/1800 services in Pakistan in April 2004, and has launched its services commercially in all major cities. Telenor Pakistan, as the market innovation leader deployed a network compatible to smooth upgradation to EDGE.


OPERATORS Oct-Dec07 Jan-Mar08 Apr-Jun08 Jul-Sep08 Oct-Dec08
Rev. by Cellular Operators (Rs mn) 10,877 12,099 12,848 11,919 13,010
Inv. Cellular Mobile Operators US$ Mn 251 108.3 91 83.8 233.9
Cell Sites by Cellular Operators 4,479 4,756 5,017 5,584 5,998
Source: PTA
Inv: Investment, Rev: Revenues

Telenor Pakistan received the 'Environment Excellence Award' for 2008 at the 5th Annual Environment Excellence Awards (AEEA) distribution ceremony which was held to honor the 36 most environment friendly companies of Pakistan. The National Forum for Environment & Health (NFEH) organized the award ceremony in Karachi in 2008. The award has been instituted to recognize and promote organizations which make an outstanding contribution towards sustainable development. This is the first environment award ever won by a mobile operator.


COMPANIES 2008 2007
Mobilink 31.7 39.9
Telenor 21.6 19
Ufone 21.5 21.0
Warid 18.8 17.2
Zong 6.1 2.6
Instaphone 0.4 0.4
Source: PTA

Pakistan mobile market has been expanding exceptionally fast and today more than 90% of the Pakistan's total population is covered by one or the other mobile operator. With all mobile operators are trying to increase their service area to every possible village and town it has become increasingly difficult for the companies to go into certain areas. Currently Mobilink is market leader however its share in the market has been dropping drastically for last couple of quarters. Mobilink lost its share up to 8 percentage points since 2007. Today the company owns 31% of total subscribers in the market followed by Telenor and Ufone which share similar percentage of 21% in Dec 08. Ufone has been maintaining its share for almost a year now. However, Telenor is growing through its subscriber's base and thus the share from 19% is now more than 21%. Zong is penetrating in the local market quite aggressively with its share jumping from mere 2% to 6% in 2008. This jump is mainly attributed to its aggressive marketing and attractive packages mainly targeting the youth in the country. Warid dropped its share in the market as compared to previous period.


Telenor Pakistan was the fifth mobile entrant in to what was an already highly competitive market. The company expanded its network coverage which meant significant market share growth for the operator making it the 2nd largest network in the shortest period. In addition, the Telenor should increase market share and focus on its commanding business areas in this competitive environment.