1 AIT Asian Institute of Technology

Distribution systems and channel networks of service operators in the Pakistan mobile phone industry : a case study of Pakistan Telecom Mobile Ltd.

AuthorSaeed, Hina
Call NumberAIT RSPR no. SM-99-132
Subject(s)Cellular telephone systems--Pakistan
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master in Business Administration, School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-99-132
AbstractThe cellular phone industry in Pakistan is at a beginning stage from market penetration aspect, yet it is extremely competitive due to the presence of three Service Operators. There are only 500,000 subscribers out of a population of 140 million. The encouraging factor is the 100% annual growth rate of the market. A very interesting situation has developed with the decision of Pakistan Telecommunication Company Ltd. (PTCL), the Government owned telecom company, deciding to staii its own cellular network in the country. Mostly the Government of Pakistan operates in sectors where it has complete or partial monopoly or is atleast the first operator. Pressures of financial, marketing, technological and adminish·ative challenges would be exh·emely testing. PTML is at the stage of evaluating the bidders and will be developing its sales and distribution, tariff packages, customer services, adve1iising campaigns and financial systems. For developing all these functions PTML will have to analyze the existing market practices and their feasibility for PTML. Traditionally the cellular service distribution systems are not known to be very efficient and the overall low peneh·ation creates some doubt about the distribution networks performance. The concept of dealers has evolved in the cell phone market very rapidly ever since the inception of the indush·y in early nineties. Initially all the Service Operators started with a concept of a tighter control and limited dealerships. In order to expand the market and reach a broader cross section of subscribers, the Service Operators started encouraging entities outside the organization to paiiicipate in securing business for them. Although the new members in the channel have been successful in bringing in business to the industry, they have attained a position of exploitative control over the Service Operators. They continue to secure higher profits and better incentives. Even though most of them are not happy since they are not making enough out of the service business. Thus, it is extremely essential for PTML to study the dealer market and make a strategic choice for its channel of distribution. A distribution system with an allied network of dealers and a greater element of control must be developed by PTML.
Year1999
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-99-132
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Bechter, Clemens
Examination Committee(s)Tocquer, Gerard; Troung Quang
Scholarship Donor(s)-
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1999


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