MOBILINK Inc., who later sold it to

 

 

 

 

MOBILINK AND WARID

Pre and post-merger performance

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                    BY:

BALAJ KHAN

TAUQEER AHMED

INTRODUCTION:                                                                       

MOBILINK  

was a trade name of
Pakistan Mobile Communications Limited (PMCL), a mobile operator in Pakistan providing
a range of prepaid and postpaid voice and data telecommunication services to
both individual and corporate subscribers. Its head office is in Islamabad,
and the current President and CEO is Aamir Ibrahim. The network claims to have
been the first GSM-based mobile operator in South Asia. For now it is the listed
company on Stock Exchange in Pakistan.

WARID

Warid Telecom International (Arabic: ???? ??????
????????) is an Emirati multinational telecommunications company based in Abu Dhabi, United Arab Emirates. It provides telephony services in Bangladesh, Georgia, Congo, Pakistan,
and Uganda.

 

History:

 

 

MOBILINK

Mobilink started operations in 1990 as
the first GSM cellular mobile service in Pakistan with
a joint venture by Saif Group and Motorola Inc.,
who later sold it to Orascom Telecom,
an Egypt-based
multinational company and then they also further sold it to Vimpelcom Group,
a Russian Company.

The Orascom group, who formally owned
Mobilink has a major share in TWA (Trans world Associates) which operates an undersea fiber-optic cable from Karachi,
Pakistan, to Fujairah, UAE. As of June
2010, Mobilink had issued two listed bonds valued at PKR 30.2 billion and PKR 60 billion.

WARID                                                                            

In 2004, Warid Telecom International
LLC, purchased a license for operating a nationwide mobile telephony network, (WLL) and long distance international (LDI) for $291 million US
dollars and was the first venture of Warid Telecom International LLC. The license
was bid for and acquired by a team led by Bashir Tahir the
former CEO of the Abu Dhabi Group,
which is the parent company of all Warid operations.

Warid Pakistan launched its services in
May 2005. Within 80 days of launch Warid Pakistan claims to have attracted more
than 1 million. users.

On June 30, 2007, Singapore Telecommunications
Limited (SingTel) and Warid Telecom announced that they have entered into a
definitive agreement subsequent to which SingTel will acquire a 30 percent
equity stake in Warid Telecom for an estimated $758 million, valuing the
company at an enterprise value of
$2.9 billion.

SingTel sold back that stake in January
2013 for $150 million and a right to receive 7.5 per cent of the net proceeds
from any future sale, public offering, or merger of Warid.

On November 26, 2015 VimpelCom and
Abu Dhabi Group agreed to merge Mobilink and Warid into a single company.

 

 

 

Offerings:

 

Services
 

Description
 

GPRS

2G and 3G cellular communication system’s
 

Messaging

communication containing some information, news, advice, request
etc.
 

Power Tools

News, Entertainment, Sports etc.
 

Chat Services

Messaging, Mobilink with Live Online Chat.
 

Mail Services

Getting emails on your mobile phone
 

Missed Calls Alerts

 missed call notification on your number
 

 

Marketing Strategies of
Mobilink:

 

Mobilink is still committed with its mission and
corporate strategy so Mobilink is still providing every source of means of communication with analyzing the valueopportunities
and capabilities of itself and its resources based. Being the pioneer in this market
first mover in the every technology and every solution which is provided to the
consumers is completely research based. Mobilink has initiative, intelligent,
cooperative and committed research force which day to day efforts make the
Mobilink superior in Pakistani market. Mobilink stumble on the desires of the
consumers with the complete research plans. Through:

 

Mobilink calls their high
volume users.

Feedback through customers
care centers.

Feedback through videos.

Feedback through marketing
team.

Prices Strategies of Mobilink:

 

Point of Mobilink is practicing the market skimming strategy
not the market penetration strategy, as the other service providers are
focusing on the penetration strategies with the lowest rates. But the Mobilink
is charging the premium prices on their quality services bases and the
highest market share in the Pakistan, and providing the more connectivity than
other service providers.

 

Subscribers:

 

Mobilink in Pakistan
providing a range of prepaid and postpaid voice and data telecommunication
services to both individual and corporate subscribers.

Total Subscribers:

Market Share:

 

Market share represents the percentage of an industry or
market’s total sales that is earned by a particular company over a specified
time period. Market share is calculated by taking the company’s sales over the
period and dividing it by the total sales of the industry over the same period.
This metric is used to give a general idea of the size of a company in relation
to its market and its competitors.

Market Share of Mobilink:

 

 

Revenue:

 

Revenue is the amount of money that a company actually
receives during a specific period, including discounts and deductions for
returned merchandise. It is the top line or gross income figure from which
costs are subtracted to determine net income.

Revenue Before
Merger:

 

 

After Merger Revenue:

 

 

 

 

WARID:

In 2004, Warid Telecom International
LLC, purchased a license for operating a nationwide mobile telephony network, (WLL) and long distance international (LDI) for $291 million US
dollars and was the first venture of Warid Telecom International LLC. The license
was bid for and acquired by a team led by Bashir Tahir the
former CEO of the Abu Dhabi Group,
which is the parent company of all Warid operations.

Warid Pakistan launched its services in
May 2005. Within 80 days of launch Warid Pakistan claims to have attracted more
than 1 million. users.

On June 30, 2007, Singapore
Telecommunications Limited (SingTel)
and Warid Telecom announced that they have entered into a definitive agreement
subsequent to which SingTel will acquire a 30 percent equity stake in Warid
Telecom for an estimated $758 million, valuing the company at an enterprise value of $2.9 billion.

SingTel sold back that stake in January
2013 for $150 million and a right to receive 7.5 per cent of the net proceeds
from any future sale, public offering, or merger of Warid.

On November 26, 2015 VimpelCom and
Abu Dhabi Group agreed to merge Mobilink and Warid into a single company.

 

PRODUCTS:

Warid has many products for their
subscribers like Warid Double Dhamaal offer that offers in this section we
described all the products offered by Warid Telecom.

 

PRODUCTS
 

Description
 

Mobile services

Warid Mobile Backup. Keep your contacts, call logs and SMS
safely backed up over the cloud.

Data services

3G services and 4G LTE services

Mobile Banking

Mobile Stock Exchange.

 

 

Offerings:

 

Services
 

Description
 

Warid SMS Email

Warid SMS Email enables you to send &
receive emails 24/7 on your mobile phone .

Caller Tunes

Listen to Caller Tunes  on
your mobile during call.

Islamic Services

Listen to Naats, Qawalis and much more .

Dua Services

Allows you to make a request for your DUA to a group of people .

Subscribers:                                     

 

Warid in Pakistan
providing a range of prepaid and postpaid voice and data telecommunication
& 3G/4G services to both individual and corporate subscribers.

Cellular subscribers

 

 

Market share:

 

Market share represents the percentage of an industry or
market’s total sales that is earned by a particular company over a specified
time period. Market share is calculated by taking the company’s sales over the
period and dividing it by the total sales of the industry over the same period.
This metric is used to give a general idea of the size of a company in relation
to its market and its competitors.

 

Revenues:

 

Why organization merger and acquisition take place:

 

Mergers take place for many strategic reasons, but the most
common reasons for any business combination are economic at their core.

 

Following are some of the
various
economic reasons:

Increasing capabilities: Increased
capabilities may come from expanded research and development opportunities or
more robust manufacturing operations (or any range of core competencies a
company wants to increase). Similarly, companies may want to combine to
leverage costly manufacturing operations as was the hoped for case in the
acquisition of Volvo by Ford.

 

Gaining a competitive advantage or larger market
share: Companies may decide to merge into order to gain a better
distribution or marketing network.

 

Diversifying products or services: Another reason for merging companies is
to complement a current product or service. 2 firms may be able to combine
their products or services to gain a competitive edge over others in the
marketplace.

 

Replacing leadership: In
a private company the company may need to merge or be acquired if the current
owners cannot identify someone within the company to succeed them.

Cutting costs: When two companies have
similar products or services combining can create a large opportunity to reduce
costs. When the companies merge frequently they have an opportunity to combine
locations or reduce operating costs by integrating and streamlining support
functions.

 

Surviving: It’s never easy for a
company to willingly give up its identity to another company, but sometimes it
is the only option in order for the company.

Main reason of Warid and Jazz merger:

 

•     
Less time in market as compare to major
competitors

•     
Less advertisement on media

•     
Limited network coverage

•     
Unutilized technology

•     
Net promote score (NPS)

 

The economic reason
of merger:

Increase capabilities

In this case Mobilink not have a 4-G
service and Warid can provide a 4-G service but Mobilink can serve a broad
coverage area through warid signals.

Gaining a large market share

Mobilink and Warid decide they want to
gain a better distribution and marketing network. They want to expand into
different markets where a same nature of company is already operational.

Retaining customers

In a highly competitive market it is
very difficult to provide various service due to increasing cost and attract
and maintain customers merge can be the only option to provide greater service
packages and supporting services will increase customers satisfaction and it
will keep the existing customers from going or to buying other company service.

MOBILINK & WARID MERGER:

•     
Vimplecom will buy 100% of shares

•     
Dubai group will buy 15% of Vimplecom
shares

•     
Only shares will be swapped &owned
by Vimplecom there is no cash transaction

•     
Warid management will be taken over by
Vimplecom  

•     
Now the merging company will be single
operator & supports one distribution & sales network

After Merging Warid And Mobilink:                 

Ever since Jazz and Warid joined hands
to become a singular force which is even more dynamic, there has been a
consistent effort to bring the best services for the masses. With these powers
combined, our family of more than 52M has become the beneficiaries of
unparalleled opportunities and capabilities. Therefore, there is much to
celebrate!

Benefits

On-net Advantage:

Jazz and Warid combined are an on-net
network of 52 Million customers. What it means for the Jazz Warid customers is that
now they can enjoy on-net calling rates on more than 52 million numbers!

Retail Network Advan­tage:

Warid customers will now enjoy a wide
network of 2000­00 Jazz retail outle­ts, Jazz Points 535 and Jazz Experience
Centers nationwide, ready to help and serve.

Jazz Cash Advantage:

Jazz Cash has revolu­tionized the
dynamics of financial trans­actions. By virtue of the Jazz-Warid union, Warid
customers can avail Jazz Cash Mobile Account services just like Jazz customers.

4G & 3G Advantage: 

Jazz is leading the way to a digital Pa­kistan
through the revolutionary power of its Fastest & Best 3G/ 4G; wh­ere every
city, town and village will ha­ve access to educati­on, information and
entertainment that would open the floodg­ates of success.

Conclusion:

 Jazz
which will now represent the merged operations of both Mobilink and Warid has
also significantly reduced the number of outlets.

Mobilink was a huge company and it had
333 outlets across the country, but Warid had 320 outlets despite the fact that
it was almost one-third of Mobilink (Mr. Ibrahim) said. So we have closed 261
outlets, of which 82 percent are of Warid.

It was informed that Warid was doing
good business, but it needed more funds to compete with other companies.

After the merger all the issues
regarding capacity-building were automatically addressed.

Replying to a question that competitors
of cell phone companies have now increased, and apps like WhatsApp are also
providing call, SMS and other services, he said that Jazz was looking into it
and will devise a strategy about it.

Moreover, we do not want to limit
consumers to just entertainment or simple use of internet. We want to provide
them knowledge and education.

The company says it has more than 49
million subscribers and covers 80pc area of the country.

 

 

 

 

 

 

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