Telenor Pakistan Pakistan – a Great Opportunity for Telenor
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Telenor Pakistan Tore Johnsen, CEO Full-scale industrialisation 1 1 Pakistan – A great opportunity for Telenor z Population: 154 million z Population per sq KM: 193 z Population in urban areas: 38.8% z GDP per head: 2,210 (US$ PPP) z Real GDP growth 2004: 6.3% z Fixed line penetration (2003): 2.7% Sources: EIU (Economist Intelligence Unit) ITU (International Telecom Unit) 2 The regulatory and political framework z Telecom authorities promote transparency and a level playing field z Telecom policies well developed, implementation the key z Telenor to focus on strict business ethics and code of conduct 3 Deploying the Mobile Way from day one Building a greenfield z Critical success factors Regulatory Sales and issues and Site acq. and marketing strategies – Time to market roll-out plans plans Operation – Efficient operation Legal and and Business Network tax issues maintenance plans and – Standardised solutions infrastructure financing – Quality Long Company Competitive distance and Quality strategy and situation international Customer assurance branding licence Business IT and billing scoping, solutions PR and Distribution work flow commun- strategy and analysis ication contracts Organisation Office facility and management recruitment Procurement 4 Network rollout 11 months from licence award to launch Business strategy Licence and vendor Site acquisition awarded selection in place Network design Launch Build Organisation Network Rollout (180 days) April 14th May June September 15th March 2004 2004 2004 2004 2005 •Launch Islamabad, Karachi, Rawalpindi, 15th March •Launch Lahore, Faisalabad, Hyderabad, 23rd March 5 Network rollout z Population coverage at launch: 32 million z Coverage end 2005: 1800+ base stations (175 cities) z Licence requirement 2008: minimum 70% of all administrative areas (45% population coverage) z Accumulated CAPEX end of 2007: US$600-700 million (excluding licence payments) 6 Telenor – building a strong brand z Telenor Pakistan takes position as Innovator Quality & the Quality Operator based upon Customer Focus – Simplicity – Attractiveness – Trustworthiness – Service Quality Price leader Product focus 7 344K subscribers after 17 days Market share (Q105) Instaphone Telenor 6 % 4 % Paktel 8 % Ufone 22 % Mobilink 60 % Source: Based on local press reports 8 Telenor Pakistan guidance 700 110 650 100 ) z 2005D z 2007 600 90 – Penetration around 10% – First year of positive EBITDA 550 80 – Market share target 10% z 2008 500 70 GDP (USD bn – Government tax of approx. – Penetration around 20% GDP per head US US$17 per new connection expected450 to be halved – Market Share around60 20% – General400 market ARPU – Blended ARPU US$550 - 7 dilution2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 GDP (USD bn) GDP per head USD Source: Economist Intelligence Unit 2005 9.