Business Report

SUBMITTED TO

Sir Ashfaq
SUBJECT: International Business
Conducted At: Telenor Group

SUBMITTED BY

Noman Shafique
Roll # 3

Faheem Akram
Roll # 24

DEPARTMENT OF BUSINESS ADMINISTRATION

 Acknowledgement
We would like to thank few people, because without their help and concern our
project shouldn’t have been completed. First of all, we would like to thank the
Almighty Allah f o r h e l p i n g u s a l o t a l t h o u g h t h e p r o j e c t a n d f o r m a k i n g a s
capable to complete this  p r o j e c t Secondly, our Teacher,
a n d   t h e   P e r s o n n e l   f r o m   T e l e n o r ,   o u r   f o c u s e d organization, who
have supported us and guided us throughout the project and to tell us where we are
lacking and what steps, could be taken to overcome them, so that we’ll get t h e
better results in our project. And, last but not the least, our
P a r e n t s w h o h a v e supported us and have prayed a lot for us that we are here
with the final projects in our hands, after the hard work of last two weeks.

Finally for all possible errors, omissions and shortcomings in writing of this report only we are
responsible for which we hope that all concerning regards of this report will forgive
us.

EXECUTIVE SUMMARY
All of us are well known and are well aware of the present situation of the
m o b i l e industry in our beloved homeland, Pakistan. Mobile industry, here in Pakistan is
growing at much faster pace when compared with few years back in the scenario. It has
developed lot and more and more companies are starting their operations in Pakistan. In this
very era, one of the rising mobile companies, that became highlighted these days
and are now heard about almost everywhere in a very short period is Telenor.
Telenor entered the Pakistan’s market few months back and is now going very good nowadays.
It was very interesting for us to engage in such a project and choosing an organization that is
very new to the market and, of course, to us as well. Furthermore, a mobile company althea way
from Norway has entered into our market, and making the thorough study and
analysis of its environment, knowing about the history of Telenor, its operation in
its home and host countries, getting to know about its employees and the work that
they doi n g t h e o r g a n i z a t i o n , w a s a l l v e r y a m u s i n g .

It is fully equipped with the latest IT techniques and its employees as so the reason why
Telenor is becoming so much popular is the continuous effort made by  people
working at Telenor, their creative and highly innovative ideas has helped them a llot
in capturing the Pakistan’s mobile market at a very shorter period of time. Behind this
continuous effort of employees, there are certain factors that boost up their morale
and m o t i v a t i o n l e v e l , t h a t f o r c e s t h e m t o w o r k s o h a r d a n d t h a t f a c t o r i s
e f f o r t s m a d e b y Telenor for the career and skills development of its employees.

Major Shareholdings
As of 2012

No. of % of
  Shareholders  
shares total
1 GOVERNMENT OF NORWAY 841 829 056 53.97 %
2 FOLKETRYGDFONDET 76 592 644 4.91 %
3 FRANKLIN RESOURCES 62 123 442 3.98 %
4 UBS 25 636 692 1.64 %
5 DNB 21 937 852 1.41 %
6 BLACKROCK 21 598 262 1.38 %
7 MANNING & NAPIER 19 790 971 1.27 %
8 ALECTA 19 623 722 1.26 %
FIDELITY MANAGEMENT & RESEARCH
9 19 553 491 1.25 %
COMPANY
10 SAFE INVESTMENT COMPANY 19 419 987 1.24 %
11 STATE STREET CORPORATION 19 245 363 1.23 %
12 WELLINGTON MANAGEMENT COMPANY 12 779 110 0.82 %
13 KLP 9 771 266 0.63 %
14 APG ASSET MANAGEMENT 9 496 760 0.61 %
15 SVENSKA HANDELSBANKEN 8 213 887 0.53 %
16 STOREBRAND KAPITALFORVALTNING 7 741 881 0.50 %
17 VANGUARD GROUP 7 496 979 0.48 %
18 STANDARD LIFE 7 286 115 0.47 %
19 LEGAL & GENERAL INVESTMENT MANAGEMENT 7 148 461 0.46 %
20 KUWAIT INVESTMENT AUTHORITY 6 669 052 0.43 %
1 223 954
  Total 20 largest   78.47 %
993
  Others   335 992 813 21.53 %
1 559 947
  Total shares   100.00 %
806
Introduction of Telenor

Telenor is the largest telecommunication company in Norway. During the late90’s it has been
deregulated and changed from fully government owned into a public limited company.
However the government retained substantial stake in terms of shares. Since deregulation
began in EU, the telecommunication industry is facing tough competition from new
entrants and this is the case for T e l e n o r a s w e l l . T h e c o m p a n y i s s p l i t i n t o f o u r
groups: Mobile operation, Telenor fixed, Telenor broadcast, and others activities.

The Telenor story • 1855: Norwegian Telegraph Company founded • 1877: Graham Bell
visits Norway to demonstrate the telephone • 1966: Mobile phone introduced • 1969: Data
communication introduced • 1992: TV-signals via satellite • 1993: First international
activity • 1994: Changed to a public cooperation (AS) • 1995: New name: Telenor • 1998:
From monopoly to competition • 2000: Listed on the stock exchange 1855 1969 1995 1998.

Today Telenor is a leading international provider of communications services and one of

the largest mobile operators worldwide.

History of Telenor
Telenor Group is the incumbent telecommunications company in Norway, with headquarters
located at Fornebu, close to Oslo. Today, Telenor Group is mostly an
international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working
predominantly under the Telenor brand. At the end of 2010, its 203 million subscribers made it
one of the largest mobile phone operators in the world In addition; it has extensive broadband
and TV distribution operations in four Nordic Countries, and a 10-year-old research and business
line for Machine-to-Machine technology.
Telenor started off in 1855 as a state-operated monopoly, named Telegrafverket as a provider
of telegraph services. The first ideas for a telegraph were launched within the Royal Norwegian
Navy in 1848, but by 1852 the plans were public and the Parliament of Norway decided on a
plan for constructing the telegraph throughout the country. Televerket began by building
from Christiania (now Oslo) to Sweden (Norway was at that time in a union with Sweden) as
well as between Christiania and Drammen. By 1857 the telegraph had reached Bergen (west
coast) via Sorlandet (south coast) and by 1871 it had reached Kirkenes (north coast). Cable
connections were opened to Denmark in 1867 and to Great Britain in 1869. The telegraph was
most important for the merchant marine that now could use the electric telegraph to instantly
communicate between different locations, and get a whole new advantage within logistics.
Telenor Vision:

Our vision crystallizes our customer focus as the cornerstone of everything we do. Our values
describe what behaviors are necessary to realize that vision. Our corporate responsibility mindset
ensures that our vision and values nurture social concern and help us create shared value.

Our Vision

Our vision is simple: We're here to help

We exist to help our customers get the full benefit of communications services in their daily
lives.

The key to achieving this vision is a mindset where every one of us works together: Making it
easy to buy and use our services. Delivering on our promises. Being respectful of differences.
Inspiring people to find new ways.

We believe in four core values:

Make it Easy
we’re practical. We don't complicate things. Everything we produce should be easy to
understand and use. Because we never forget we're trying to make customers' lives easier.
Keep Promises
everything we set out to do should work, or if it doesn't, we're here to help. We're about delivery,
not over promising, actions not words.

Be Inspiring

We are creative. We strive to bring energy to the things we do. Everything we produce should
look good, modern and fresh. We are passionate about our business and customers.

Be Respectful

We acknowledge and respect local cultures. We do not impose one formula worldwide. We want
to be a part of local communities wherever we operate. We believe loyalty has to be earned.

Telenor Aim:

At Telenor we aspire to make an impact each day! We aim to leverage our communication
technology to enrich and empower our customers and create value for every segment that we
serve.
To accomplish this, we foster a culture where our people are driven to perform and operate with
the highest integrity and values. And we are grounded in the belief that we can do the most good
by doing what we are good at — bringing together our business philosophy, industrial expertise,
philanthropic commitment to positively influence our community.

Each day begins with an objective to help realize possibilities!

Technology
The first telephone service in Norway was offered in 1878 between Arendal and Tvedestrand,
while the first international telephone service between Christiania and Stockholm was offered in
1893. Automation of the telephone system was started in 1920 and completed in 1985. In 1946
the first Telex service was offered, and in 1976 satellite telephone connections to oil platforms in
the North Sea were installed. In 1980 the first steps to digitalize the telephone network were
taken.
Televerket opened its first manual mobile telephone system in 1966, being replaced with the
automatic NMT system in 1981 and the enhanced NMT-900 in 1986. Norway was the first
country in Europe to get an automatic mobile telephone system. The digital GSM system came
into use in 1993; the GSM standard was developed in Norway by the Norwegian University of
Science and Technology (NTNU), but no mobile phone manufacturers emerged in the country.
The third generation of mobile technology with UMTS system began full operation
[Link] Opera web browser was created in 1994 by Jon Stephenson von Tetzchner and Geir
Ivarsøy during their tenure at Telenor. Opera Software was established in 1995 after the pair
went on to continue development of their browser.
Deregulation and internationalization:
The corporation changed its name to Televerket in 1969. In 1994, the then Norwegian Telecom
was established as a public corporation. The authorities wanted to deregulate the telecom sector
in Norway, and sector by sector was deregulated between 1994 to 1998. An attempt to merge
Telenor with its counterpart in Sweden, Talia, failed in 1999, while both still were owned by
their respective governments. On December 4, 2000 the company was partially privatized and
listed on Oslo Stock Exchange and NASDAQ. The privatization gave the company NOK 15,6
billion in new capital, the Government of Norway owning 77.7% of the company after the
privatization. By 2006 the government’s ownership has been reduced to 53%.
In the second half of the 1990s, Telenor became involved in mobile operations in a number of
countries: Russia (1994), Bangladesh, Greece, Ireland,
Germany and Austria (1997), Ukraine (1998), Malaysia (1999), Denmark and Thailand (2000), 
Hungary (2002),Montenegro (2004), Pakistan (2004), Slovakia, Czech Republic, Serbia (2006).
Operations in Greece, Ireland and Germany were sold in 1999/2000 and profits were re-invested
in the emerging markets. In October 2005 Telenor acquired Vodafone Sweden, changing the
name to Telenor in April 2006. On 31 July 2006, Telenor acquired 100 per cent share of mobile
operator Mobi 63, one of two mobile operations existing in that moment in Serbia for Euro 1.513
billion.

International Activities and markets

Approximately half of Telenor's employees work outside Norway.
Bangladesh
Launched in 1997, Grameenphone was the first Telenor venture in the Asian telecom market.
Today, Grameenphone is the largest mobile provider in Bangladesh, serving more than 28
million subscribers as of third quarter 2010; an increase of 6.7 million since third quarter 2009.
Telenor and its partners have boosted network capacity and extended coverage to new and often
remote areas, connecting millions of previously unconnected people. Telenor holds 55.8 per cent
of Grameenphone. Grameenphone started trading its shares on the stock exchanges in Dhaka and
Chittagong on November 16, 2009. The headquarters are located in Dhaka.
Denmark
In Denmark Telenor owns the following companies Telenor Denmark which is Denmark's
second largest provider of mobile telephony with 1.8 million subscribers and which provides IP
telephony and broadband and has 280.000 customers. Which provides telephony and internet?
CBB Mobil which provides low cost prepaid mobile telephony. In spring 2009 Telenor also
acquired the low cost operator Bibob.
On 15 June 2009 Sonofon, Cyber city and Tele2 were unified under one international brand -
Telenor.
Furthermore the digital distributor of TV-channels Canal Digital owned by Telenor is also
present in Denmark.
Finland
Telenor's operations in Finland are fixed data com and Canal Digital.

Hungary
The company offers mobile telephony, has 3 million subscribers and a market share of 33%.
Telenor Hungary owns Digitania Zrt., a sums’ company which was run by the Dutch politician
James Sharpe,] and which was fined twice by the Hungarian competition authorityGVH for
misleading customers
India
Uninor started its mobile services on 3 December 2009, in 21 of the 22 circles in India. Telenor
has acquired a 67.25% equity stake in Unitech Wireless, which has the requisite government
approvals and licenses to provide mobile services pan-India. It has rolled out its network nation-
wide under the brand name Uninor. Since August 2010, Uninor has been growing at a rapid
pace, adding 1.5-2 million customers every month. Optimizing its operations with limited
spectrum available, Uninor has pioneered a number of network capacity innovations and
operational excellence efforts that can potentially be applied also in other Telenor markets.
On Feb 22, 2012 Telenor slated that it will sever ties with its Indian partner and transfer its
Indian telecom operations to a new entity after a top court canceled its licenses because of a
multibillion dollar corruption scandal in the industry
For further information on Uninor and controversies connected to the investment, please
see Uninor On 31 May 2012, Telenor hinted at its plan to participate in upcoming spectrum
auctions and its looking to rope in a partner for its telecom business from India.
Malaysia
Telenor holds a 49% stake in DiGi Telecommunications, Malaysia's third largest mobile
telephony company.
Montenegro
Telenor Montenegro is Telenor's subsidiary in Montenegro and offers mobile telephony.
Pakistan
Telenor Pakistan is a wholly owned subsidiary that started operations on 15 March 2005 and
holds one of six mobile licenses in Pakistan. It's also the fastest growing cellular network of
Pakistan - this may be attributed to their aggressive marketing and advertising campaign.
As of March 2012, Telenor Pakistan subscribers exceed 29 Million.[18] Currently, Telenor holds
the second largest GSM and the largest GPRS and EDGE coverage in Pakistan which competes
with Ufone. With the recent launch of its nationwide EDGE-enabled network. It achieved the
third largest retailer network in Pakistan within the 2 years span of its operations and has started
operations in northern areas of Pakistan and in Azad Jammu and Kashmir . Telenor reached
its breakeven in the first quarter of 2007. Telenor proactively participated in the earthquake
disaster relief, and carried out a campaign for the welfare of flood victims in Baluchistan. The
current CEO of Telenor Pakistan is Lars Christian Iuel and the CTO is Gyorgy Koller.
Serbia
Telenor owns 100% of Telenor Serbia, one of the three mobile vendors in Serbia and has a
customer base of 3.137 million subscribers (Q4 2011). It is first mobile operator in the Serbian
market founded in 1994 as Mobtel Serbia.
Sweden
Telenor owns a number of different companies in Sweden. Telenor Sverige AB is the result of
Telenor's purchase of Vodafone Sweden in 2005, offering mobile telephone services with a
market share of approximately 15%. Telenor also owns Bredbandsbolaget, Sweden's second
largest provider of broadband and the largest provider of IP telephony. Canal Digital offers TV
distribution as well. In 2006 Telenor Sweden purchased Glocalnet, Sweden's fourth largest
complete provider of telecom services. Telenor Sverige AB‘s headquarter is located on
Katarinavägen in Stockholm.
 In Sweden, Telenor also holds a joint venture company with Swedish operator Tele2
named Net4Mobility. This enables Telenor to provide its' Swedish customers with 2G and 4G
(LTE) services.

Thailand
Telenor holds an indirect position in DTAC, a mobile telephony company in Thailand. DTAC
currently has about 23 million users which put DTAC as the second-largest mobile operator in
the Thai market.
Ukraine, Russia, Italy and other countries
Telenor owns 42, 95% of VimpelCom Ltd. (Brands: Beeline, WIND, Kyiv star, and Orascom
Telecom).

Earnings per share of NOK 1.68

The
Group’s
Sound Operational Performance Telenor

Highlights second quarter 2012 Highlights first half year 2012

• Organic revenue growth of • Organic revenue growth of 6%1)
5%1) • EBITDA margin of 31%
• EBITDA margin of 32% • Operating cash flow of NOK
• Operating cash flow of 10.4 billion2)
NOK 5.1 billion2) • Earnings per share of NOK
• Earnings per share of 1.68
NOK 1.31

improved operational performance resulted in more than five per cent organic revenue growth
and solid margin improvement in the
The Telenor Group’s improved operational performance resulted in more than five per cent
organic revenue growth and solid margin improvement in the second quarter. Our presence in the
Nordic region and the growing Asian economies demonstrates the benefits of the geographical
diversification in the Group. Our consolidated mobile operations added five million new
customers during this period, bringing the subscription base above the 150 million mark.

In Norway, we continue to invest to strengthen our superior coverage position, enable new
content services and manage the rapid transition to data. So far this year, we have invested two
billion Norwegian kroner and expect to invest four billion this year. I am also pleased to see our
Norwegian mobile operation steadily improving its performance through healthy customer
growth and lower operating expenses. The migration to bundled tariffs continues and contributes
to revenue growth. The decline in fixed telephony continues and requires further efforts to
maintain profitability.

We see continued good development in Telenor Pakistan and in DiGi in Malaysia with strong
growth and margins. The Broadcast business delivers another solid quarter following good
performance in all areas. Challenging market conditions in Denmark and Bangladesh resulted in
weaker than expected revenue development this quarter.

Uninor in India managed to add more than two million subscribers this quarter. Impressive
efforts are being made to keep up momentum during this challenging period. As a response to
the uncertain regulatory environment we are now re-allocating resources to the nine most
profitable circles. In this manner, we aim to shorten the time and reduce the cost for the
operation to become self-financed, thereby reducing the risk of the India investment.

At the Corporate Assembly 16 May 2012, Mr. Svein Asser was elected as the new
Chairman of the Board of Directors of Telenor ASA.

For the third year in a row, we initiate a new share buyback programmed of three per cent of the
outstanding shares. With this buyback programmed as a supplement to the dividends paid in May
a total of approximately 12.6 billion Norwegian kroner will be returned to our shareholders in
2012, thereby confirming our ambition to deliver healthy shareholder remuneration.”

Extract from outlook for 2012

Based on the current group structure not including Uninor and with currency rates as of 30 June
2012, Telenor expects organic revenue growth above 4%. The EBITDA margin before other
income and expenses is expected to be in the range of 35-36%, while capital expenditure as a
proportion of revenues, excluding licenses and spectrum, is expected to be in the range of 11-
12%.
 Key figures Telenor Group
2nd Quarter 1st Half year year

(NOK in millions except earnings per share)

2012 2011 2012 2011 2011
Group Group Group Group Group

25,357 24,359 50,475 48,452 98,516

Revenues
EBITDA before other income and expenses 8,041 7,457 15,780 14,816 30,526

EBITDA before other income 31.7 30.6 31.3 30.6 31.0

expenses/Revenues 4,485 3,537 8,489 7,191 15,217

Adjusted operating profit 17.7 14.5 16.8 14.8 15.4

Adjusted operating profit/Revenues (%) 2,065 4,492 2,648 7,285 7,165

Profit after taxes and non-controlling interests 1.31 2.77 1.68 4.48 4.45

Earnings per share from total operations, basic, in NOK 2,959 2,714 5,641 5,324 11,907

Capex 2,904 2,678 5,392 5,082 11,441

Capex excl. licenses and spectrum 11.5 11.0 10.7 10.5 11.6

Capex excl. licenses and spectrum/Revenues (%) 5,136 4,779 10,388 9,735 19,085

Operating cash flow _ _ 28,612 22,165 18,222

 ISS and Telenor sign Nordic IFS contract

Telenor, a leading international provider of tele, data and media communication

services, and ISS, a leading global provider of facility services, have entered into a strategic
partnership where ISS will be delivering Integrated Facility Services (IFS) to most of
Telenor’s operations throughout the Nordic countries.

The new contract, signed with Telenor Real Estate, includes delivery of property
and support services, cleaning, catering, security as well as facility management to more than
5,000 offices, buildings and telecommunications installations in the Nordic countries.

The five-year contract is one of the most complex IFS contracts in the Nordic
countries and it is one of the biggest in the Nordic market in terms of contract value and
scope. 
Here we discuss Telenor business in Asian Countries
1. Pakistan
2. India
3. Bangladesh
Telenor Pakistan

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together
with Thailand, Malaysia and Bangladesh.

Telenor Pakistan launched its operations in March 2005 as the single largest direct European
investment in Pakistan, setting precedence for further foreign investments in the telecom sector.
The company has crossed many milestones and grown in a number of directions, making Telenor
Pakistan a leading telecom operator of the country.

They are the fastest growing mobile network in the country, with coverage reaching deep into
many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the
hilly northern areas to the sprawling deserts in the south, at times we are the only operator
connecting the previously unconnected.

They are keeping ahead by investing heavily in infrastructure expansion. With USD2 billion
already invested, they have extended agreements with our 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 biggest of their kind in the industry.

They are spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment
opportunities. They have a network of 23 company-owned sales and service centers, more than
200 franchisees and some 100,000 retail outlets.

Telenor ASA is an international provider of high quality telecommunications, data and media
communication services. It ranks as world’s 6th largest mobile operator above 170 million
subscribers in its mobile operations. Telenor Pakistan is 100% owned by Telenor ASA and adds
on to its operations in Asia together with Thailand, Malaysia and Bangladesh.

Whichever Area Of Business:

Whichever area of the business you're considering on joining, you'll work under the umbrella of what we
call the Telenor Way which essentially encompasses how we work at Telenor.

We believe the Telenor Way helps create sustainable growth for the business, individuals and society.

Telenor Pakistan promises exciting career opportunities in the following areas:

Commercial

The Commercial Division is responsible for understanding our customers need, the market and the
competition. Our marketers are primarily responsible for developing the Company's go-to-market
strategies, promotions and products, brand philosophy and communication.

Positions can exist in many areas, including Segments, Business Intelligence, Sales & Distribution,
Brands, Product Development, Value Added Services, etc.

Human Capital

The value Telenor places on our employees knows no bounds and this division reflects our commitment
to the company’s most important asset, its human resource.

Positions in Human Capital exist in areas such as Human Resource Business Partners, Organization
Excellence, Employee Services, etc.

Technology

Planning, Implementation and Operation of our expansive network is the core responsibility of our
Technology Division. It also provides enterprise services internally that enable us to work and share
information.

The division promises challenging careers in areas such as RAN Planning and Optimization, Network
Operations, Technology Strategy, Business Support System, etc.
Financial Services

Financial Services manages the mobile financial services launched by Telenor Pakistan and Tameer
Microfinance Bank under the ‘Easy paisa’ banner. The vision of Easy paisa is to provide convenient,
reliable, secure and speedy financial services.

The division is our latest green-field operations and provides career opportunities in Pricing & Strategy,
Products & System Operations, etc.

Finance

The Finance Division aims to fulfill all financial requirements while minimizing the risks involved on
financial and accounting sides to ensure Telenor remains a vibrant and healthy enterprise.

Careers in finance include areas such as Business Planning & Analysis, Risk & Assurance Management,
Financial Control, etc

Corporate Affairs

These areas promise exhilarating career options for those who enjoy working on stakeholder
management, long term strategy and special projects. Career opportunities are available in areas such as
Corporate Communications & Responsibility, Legal, Regulatory and Public & Government Affairs

Customer Care Division

The Customer Care Division is responsible for managing all customer service touch points including the
call center and our sales & service centers located across the country.

Careers in Customer Care Division include areas such as Customer Services, Sales & Service Center
professionals, Service Excellence, In sourcing, etc.

Telenor Key Partner Pakistan

Telenor Key Partner Pakistan is a wholly owned subsidiary company of Telenor Pakistan, incorporated in
July 2009.

TKP careers include working on international initiatives that allow making our business across our
OpCo’s more efficient and reliable.
Development & Growth Opportunities:

At Telenor we hire people for their potential and ability and then we provide them with the
environment to grow and develop within our network. There are numerous opportunities that our
employees can take advantage of such as:

 International job and project opportunities for development and knowledge sharing via
expatriate assignments.
 Possibilities to work virtually and globally and use latest technical solutions.
 Best in class development programs led by recognized schools and trainers

Green Field Projects

Telenor Pakistan has established its reputation as a trend setter in the industry and has always
paced ahead of its time to discover new horizons. Our green field projects range from the launch
of the company in Pakistan to our recent launch of financial services which aim to bank the
unbanked masses.
Be a part of the dream teams that take the first step for giant leaps!

CSR & HSE

The telecom industry has the power to transform the society, which is why corporate social
responsibility is an important part of how Telenor Operates!

We take seriously the social, ethical and environmental impact of our products and services. We
place emphasis on making sure that the communities in which we operate see Telenor Pakistan's
as a good citizen with genuine ambitions to contribute to social and economic development. We
give our employees reasons to be proud of the way Telenor Pakistan's demonstrates
responsibility for Corporate Responsibility and Health, Safety & Environment.
Public Recognition

Our stakeholders acknowledge our efforts! Each year we emerge as a stronger component of the
market that we operate in. Telenor Pakistan has been the proud recipient of the following awards
for its Human Resource Practices:

 2010 Best Place to Work Award ( Across all industries in Pakistan) from Pakistan
Society for HRM & Engage HR
 2009 Most Preferred Employer ( Across all industries in Pakistan) from [Link]
 2008 HR Excellence Award ( Across all industries in Pakistan) from Pakistan Society for
HRM & Engage HR
 2007 Most Preferred Graduate Employer Telecom by PSHRM
 Work Philosophy

At the heart of our business strategy lies our work philosophy. We believe in creating a work
environment that allows you to work when and where you want, enables you to communicate
freely with your co-workers and managers, and ensures your safety and well-being.

Our offices encourage communication and new ideas. We encourage our employees to relax at
work and enjoy our in-office facilities such as gyms, game rooms and cafes. We believe that
employee work life balance is critical to our business success.
At Telenor work is not your job but something that inspires you, what you must love to do!

PRODUCTS & SERVICES

Products:
Telenor provide products of two types

Prepaid
Postpaid

Prepaid packages are

Djuice
Talks hawk

Postpaid offers are

Persona individual
Persona karobar

Services:
The Telenor Group provides a wide range of innovative services that are available throughout the
world. Here is a selection.

Mobile Fun
Following are the mobile fun service of Telenor.

Mobile Sports

And he scores!!! You just got a text message alerting you about a
sportive highlight. Luckily you don’t have to wait until you get
home to watch that winning moment – you can watch it directly on your
mobile.

Mobile Music

Right now there are 1 million songs ready to download to your mobile. You
can share these digital rights management-free songs with your friends and
family or transfer them to your mobile phone, mp3 player and PC. Share
that funky music!

Mobile TV

Keep your favorite TV shows available in your pocket and watch them
anytime, anywhere. You can easily access live TV channels on the move
so you don’t have to miss out on any of the action. Keep yourself updated
on news, sports, entertainment and more, directly on your own mobile
phone.

Mobile Communities

Get out and about, and stay connected and in touch with your friends.
With Telenor you can access communities such as Windows Live MSN
and Face book on your mobile and keep your friends close anytime,
anywhere.

Mobile Interaction

Following are mobile interaction services providing by Telenor.

Community Information Centers

 500 Community Information Centers (CICs) offer high speed Internet
access to rural areas in Bangladesh, where the nearest Internet facilities
would otherwise be at least 20-30 miles away. The service was set up by
Telenor's Bangladeshi mobile operator Grameenphone.

Health Line

Health Line provides 24/7 access to medical services for mobile users in
remote areas, several miles from the nearest doctor. All

Grameenphone subscribers in Bangladesh can get medical assistance

directly over the phone.

ApnaPCO - Share a Mobile

Can you imagine life without a phone – at all? That is the case for many people
living in some of the most rural communities in Pakistan. ApnaPCO is a
business-in-a-box solution, which allows people in remote areas to share a
mobile phone where there are no other alternatives – making life a little easier. 

Tele Doctors

Are you a Telenor Pakistan subscriber and in need of expert medical advice? Simply dial
1911 to get in touch with experienced doctors who can help you with your problems –
wherever you are in the country.

Mobile in Flight

By using Aero Mobile secure mobile communication technology you can

now call your colleagues, customers, friends and family whilst in flight
from your own mobile phone.

Mobile at Sea

Most people have experienced little or no connectivity at sea. 

Maritime Communications Partner enables mobile phone coverage by
installing and operating the ship borne radio networks, linking the
vessels with public networks via satellite.
Mobile Marketing

Register your phone number with your favorite shops and services, and
receive sms’s with up to the minute information on the latest events and
offers. Don’t get first in line, avoid the queue altogether!

Child Internet Protection

The Security Shield technology offered by Telenor protects children

from accessing sites that have not previously been approved or from
coming into contact with unsuitable people on the Internet. Children
have their own login with a protected desktop controlled by parents.

Child Sexual Abuse Filter

In areas with limited access to regular banking services and the Internet, people can use their
mobile phones to transfer money – anywhere, anytime. The easy accessibility of the service will
bring new opportunities to DiGi subscribers with insufficient access to regular banking services.

Mobile Commerce

Mobile commerce services of Telenor are as follow:

Easy Paisa

Easy paisa is a unique service offered by [Link] easy paisa you can send
your mony nationwide to your [Link] can send your money by easy
paisa either you are a telenor customer or not.i.e this service is for all the
only requirment is that you shoud have a valid nation id card.

Cell Bazaar - Marketplace in Your Pocket

Using Cell Bazaar, buyers and sellers in Pakistan can trade basic goods
from their mobile phones, bringing the benefits of information exchange,
community networking and one-to-many trading to a previously unwired rural population.

Bill Pay - Pay by Phone

Bill Pay is an innovative service, the first of its kind in Pakistan. It provides an electronic bill
payment service for utilities services and for other companies. Customers can pay their utility
bills and other bills through this service regardless of whether they own a mobile connection or
not.

Research-products in near future

Working with academic and industrial partners worldwide, Telenor is constantly developing,
testing and demonstrating new mobile services and technology solutions.

The Telenor Research & Innovation unit is an innovation hub for the Telenor Group. With three
locations in Norway and a satellite in Kuala Lumpur, Malaysia, Telenor R&I employ 236 people
from 23 countries.

Our main research areas are:

Wireless Broadband Future SIM

Connected Objects Content and Service

CORE VALUES
Core values in Telenor Pakistan are
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CULTURE IN TELENOR

Telenor has an Adaptability Culture, with flexibility being the need of the organization and strategic
focus being external. The organization has a clear vision, with the goal of increasing growth,
profitability, and market share. The employees are paid for performance. The individual employees
are made responsible for contributing in gaining the organization's goal, and in return they are
rewarded with incentives thus keeping the employees motivated. The organization has Award
Functions, as a part of the organization's culture.

PEOPLE

Telenor Pakistan consists of energetic, youthful and dedicated employees aged 27 to 28 on

average. An appropriate match is required between the culture and employees at recruitment and
hiring. If People Excellence (Human Resource Department) feels that a person will not be unable
to adjust into the organization’s environment, even if he/she is performing functionally well, the
person is rejected. The dynamic group of people, sharing similar mind-sets, love being with each
other and meet on other occasions if unable to meet during work-hours. They even stay back late,
employees can be seen roaming around till 9 at night.

Primarily the culture comes from the top management. CEO of Telenor Pakistan is humble and
cooperative. The employees get the message that if the top management is so accommodating
then the employees should behave similarly. What is important to the CEO becomes important
for employees to identify completely with the organization. There are four foreigners in the top
management but this does not create communication barriers. They are extra humble to others
while individuals of a local origin are extra sensitive to them so no one feels alienated. The
values of humbleness and free interaction in putting forth ideas lead to a harmonious culture and
efficient communication. The management is easily accessible to discuss various issues. It is
difficult to distinguish between them as the culture is so homogeneous that it keeps every one at
par with others.

ORGANIZATIONAL STRUCTURE
The structure of Telenor is mechanistic structure. As being told, during the interview with Human
Resource Manager, there are strict rules and regulations, which the company's employees have to
follow. Decision-making is highly centralized and empowerment is not appreciated.
The structure of Telenor is functional as there are seven departments. A Senior Executive Vice
President or Executive Vice President heads every department. Each executive in charge is responsible
for all the services that are related to him. Every department is headed by a separate manager, which
controls overall operations of that department.
Flat structure for each department is adopted to enhance mutual operations and co-operations
between lower staff and managers. Wide span of control in whole organization makes it easy for
lower staff to access top managers and enhance coordination between them.
For maximum efficiency, the overall structure of organization is functional as all human knowledge;
skills and abilities with respect to specific activities are consolidated in a single department. The
organ gram of Telenor Pakistan is given as:
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TYPE OF STRUCTURE: VERTICAL DIFFERENTIATION
HIERARCHICAL LEVELS

There are seven hierarchical levels as the size of the organization approaches 2500 to 3000
employees. Roles and responsibilities are clearly defined at the time of joining the organization;
employees are selected against defined criteria. Roles can be added later but employees have a
fair idea about their job responsibilities from the beginning.

Hierarchical Levels at Telenor Pakistan

Seven layers do not create communication or motivation problems due to the open culture. There
are no instances of de-motivation though in certain areas like Customer Relationship Department
or Customer Service Centre different customer queries and complaints can raise frustration
levels. Managers in these departments intervene to solve problems.

Whenever an employee has a new idea, he/she is encouraged to approach the management and
share it with them. Idea drop boxes are also placed at various locations where employees leave
their suggestions. The Communications Department works out if the ideas can be implemented
and then discusses them with the employees. There is also a formal platform at the group level
known as SEED where innovation is encouraged and new ideas about revenue concepts and cost
efficiency can be discussed. Employees are welcome to participate and submit their ideas. If the
ideas handed in are feasible then they are implemented in the organization (at country level or
global level, depending on the nature of the proposal). Employees are then rewarded financially
for their helpful contributions.
SPAN OF CONTROL

Span of Control is determined by the role and job responsibilities of managers. It varies from
department to department. On average, the span of control is 4-5 people under a manager.

INTEGRATING MECHANISMS

Cross-functional teams are a major integrating mechanism. Further there are temporary project
teams. No ad-hoc committees have been formed to date. Team-building is enhanced by Away
Days when members of different divisions and departments take some days away from work to
meet other geographically spread employees of Telenor. Sometimes the whole department goes
away from work for 2-3 days to have fun. Employees get to know those with whom they have
communicated before but not met in person. Formal team evaluation does not exist. Employees
on teams, for instance finance teams, are rewarded individually.

CENTRALIZATION AND DECENTRALIZATION

Apart from STRATEGY, all other functions are de-centralized. People at Telenor Pakistan are
motivated to take their responsibilities especially in cross functional projects. Managers in each
department oversee that the employees take up their roles and duties and their performance is
monitored accordingly. If an employee is loosing focus from his core job by taking added
responsibilities, he/she is instructed to re-adjust his/her priorities.

STANDARDIZATION AND MUTUAL ADJUSTMENT

At Telenor Pakistan, the level of standardization and mutual adjustment varies across functions.
Generally strict obedience to rules is not required as long as results are not affected. As long as
individual responsibilities and deadlines are met, there are flexible hours of work. Work is
important instead of the number of hours worked. Employees can select their work timings
which can even be from afternoon to evening. Instead of being bound by office hours, a sense of
responsibility is inculcated in them to achieve self-assigned goals. This brings a sense of comfort
in working in such organizational structure. Rules and procedures are present to control the
behavior of employees and to facilitate smooth working of the organization. A level of
standardization is required to be maintained in certain vital functions such as Budget Control.
SOPs are documented in the case of the financial control or HR related policies.

Genuine requests from external customers are taken into account by the CRO (Customer
Relationship Officer) at Service Centers. The CRO does all he/she can or is possible within
authority to process the request or complaint. If the customer’s request is beyond the authority of
the CRO, then managers are there to aid the customer or provide some sort of non-monetary
compensation to appease him.
Formalization

Although the organization has a functional structure, the level of Formalization is not very high.
Written Rules & Procedures do exist at the office Level, but at higher levels, Informal channels of
communication are most visible. The Policy Manual currently needs to be updated. Telenor has well
defined job descriptions that give the details of every job.

Specialization

Telenor is highly specialized, since the organizational tasks are subdivided into separate jobs and
there is a visible division of jobs between employees.

Standardization

Standardization is high at Telenor, the procedures are well defined, and the employees perform their
tasks in a uniform manner. Standardization is mostly visible in lower and middle level of employees.

Centralization

Strategic Decisions are highly centralized, where as certain decisions may be decentralized to lower
levels. For example, HR decisions are highly centralized. On the other hand decisions taken for the
marketing of brand are highly decentralized. The decision is done on the spot, whether to display the
Billboard on that specific place or not.

Professionalism

Telenor has a high level of Professionalism. Formal education and Training of the employees and
requites is given major importance.

Complexity

Since the organization has a Functional structure as described earlier and has several levels of
hierarchy.

DEPARTMENTAL DESIGN

Departments following the routine technology have the Organic structure with following
characteristics:

 Low Formalization
 Low centralization
 More training or experience
  Small span of control.

Interdependence among Departments

Most of the departments of Telenor are having pooled interdependence. So the success of every
department contributes to the success of organization as a whole. Mediating technology is used
which provides products or services that mediate or link clients from external environment and, in so
doing, allows each department to work independently

ETHICAL VALUES

Since recently, the organizations' major ethical focus is on the physical environment in which it
exists. Telenor has no such by-product that would end up polluting the environment. Hence the
organization is not a burden on the environment.

BUSINESS OBJECTIVES
Objectives 2006-07 2015

Market Share in terms of 10% 40%

Subscribers

Market Penetration 9% 30%

Market Share in terms of 7% 30%

Revenue

Unprompted Brand 20% 90%

Awareness
MARKET SEGMENTATION AND POSITIONING
Segmentation is the process of dividing the total market for a good or service into several
smaller, internally homogenous groups. Since Telenor is a customer oriented and quality driven
company, it segments its market on the basis of various different dimensions.

Market dominated by low-end, low-ARPU customers (largely Untapped)

Relatively large emerging middle class segment (Basic in Telenor Terminology)
Strong youth culture with needs similar to other markets.
Private postpaid almost non-existent.
Small but profitable (high ARPU) Corporate/SME segment.
Women a largely untapped segment.

Segmentation is the process of dividing the total market for a good or service into several
smaller, internally homogenous groups. Since Telenor is a customer oriented and quality driven
company, it segments its market on the basis of various different dimensions.

Market Segmentation & Product Positioning Analysis

Market Today Future 4 years Existing Profitability

Segment Estimate Products %

Youth/ 25% 27% Djuice, 29%

students Talks hawk

Women 10% 20% Talks hawk 21%

Financially 40% 23% Talks hawk, 20%

Constraint Telenor Azadi

Corporate/ 25% 30% Post Paid - 30%

SME Packages
Companies positioning against competition

Parameters Mobilink Telenor

Product Life Cycle Maturity Growth
Market share % 59% 7%
Coverage 900 cities 1100 cities
Product Portfolio Jazz Octane, Talks hawk,
Mobilink Telenor
Indigo, Ladies Azadi, Djuice,
First, persona
Customer Base 17.2 million 3.6 million

Marketing Operations Excellent Average

Segmentation Strategy
Telenor is using multiple segmentation strategy and developing separate marketing program for
each segment because different customers are looking for different benefits from different
services they purchase. Estimating the market potential of each segment includes asking how
many prospects with how much purchase power there is for each particular want.

Market to Segment
Regarding Pakistan different markets are segmented by Telenor on the basis of:

1. Geographic

2. Demographic

3. Psychographic

4. Behavioral

Geographic (Area wise)

In Pakistan Telenor is segmenting the whole country region wise. There are different regions in
Pakistan. Telenor is providing service especially in Northern Areas and in rural areas of Sindh,
Balochistan and Punjab where others are not providing services.
Demographic (Life style)
Age:

Telenor knows that needs and wants of customers changes as they go through life. So, with
change in age Telenor introduces different services. The main segmented market is the young
people of age 15-30.

Pre paid-mostly Students, youngsters and middle class

Post paid-Business Class, Industrialists

Pre paid:

Talks hawk

Talks hawk Her Second for 15-22 yrs

Talks hawk 30 second for 20-27 yrs

Talks hawk Her Minute from 25- onward

Djuice

Djuice From 15-24

Djuice Jaagtay raho from 18-24

Night

Post paid:

Persona

This Post paid service targets the Business Class mainly. There are four different plans which
vary with the amount of monthly line rent.

Persona From 32-55

Income:

Telenor also segments the customers on the basis of income level. Different packages are there
for people of different income level
Pre paid:
Talks hawk

Talks hawk Her Second For Students

Talks hawk 30 Second For Students and Job people (low income)

Talks hawk Her Minute For Job people

Djuice

Djuice For SMS lovers Students

Djuice Jaagtay raho For SMS lovers & who like to talk them in night

COMPETITIVE ADVANTAGE
In order to gain a competitive advantage one has to align competences and strategies. Highly
motivated employees and flexible culture enables them to achieve an edge over competitors.
Major Competitor

Parameters Mobilink Telenor

Product Life Cycle Maturity Growth

Market share % 37% 20%

Coverage 900 cities 1100 cities

Product Portfolio Jazz Octane, Talk shawk,

Mobilink Telenor
Indigo, Ladies Azadi, Djuice
First,

Customer Base 17.2 million 3.6 million

Marketing Operations Excellent Good

We meet Miss. Reem Javed (Assistant Manager in Products & Services) at

Islamabad Pakistan. We putt some questions about her and also about the organization for further
gathering the information about the organization as well.
 Interview with Reem Javed

Reem Javed
 Position: Assistant Manager in Products & Services
 Company: Telenor Pakistan
 Location: Islamabad, Pakistan
What’s your Telenor story?
I began my career as a telecom engineer at Telenor in August 2008. At present my team and I are
project managers for campaigns and pricing strategies.

How would you describe the work environment at Telenor?

It is simply great. It’s open, honest and grants equality to all. The values and principles are not
just on papers but very evident all around me. Here, I really feel that work and fun go hand in
hand.

How is it to work in an international company?

Interacting with a lot of different teams, I get to see the bird’s eye view of the company. First of
all, I get to see how resourceful and multicultural Telenor is. Appreciating the value of the
employees, Telenor is giving each individual due importance. The feeling of belonging to a
multicultural company spread across the globe is mesmerizing!

What are your professional goals?

For me, Telenor is the best company to work in, and I’m looking forward to versatile experience
in the telecom world. The level of motivation here is inspiring enough to take the company’s
goals as mine and excel in whatever task I am made responsible for.

Uninor India
Introduction:

Uninor is an Indian mobile network operator based in Gurgaon, India. The

company holds Unified Access Service (UAS) licenses to offer mobile telephony services in
each of India’s 22 telecom circles, and has received spectrum to roll out services in 21 of these
(excluding Delhi). The company is a joint venture between Telenor Group, a telecommunications
company headquartered in Oslo, Norway, and Unitech Group, an Indian real estate company.
Telenor owns a controlling majority stake in the company (67.25%), which has been
branded Uninor in the Indian market.
Uninor offers mobile voice and data services based on the GSM technology, currently on a
5.4 MHz spectrum. Uninor services are commercially available in 13 circles across India. With a
‘value for money’ proposition in the market, Uninor targets youth and other communities within
the Indian mass market.
As of December 2011, Uninor has 36 million customers and a total workforce of 14,700 people.
The company has more than 22,000 partners in India. Uninor products and services are available
from a more than 490,000 retail outlets serviced by 1,800 distributors all over the country.
Uninor is young mobile operator in India. They are part of Telenor group (One of largest mobile
telecom companies in world.
Uninor History:
 Uninor is collaboration of Telenor (67.25%) of Norway and unitech wireless
services (32.75%) of India to provide new and people touch tariff. Telenor is founded on 1855
and is world's 6th largest mobile operating company. Unitech wireless services are a subsidiary
of unitech group founded on 1972. 

In the early 2008, the Unitech Wireless group provides network cooperation of wireless
technology for 22 circles in Indian telecom industry providing a great collaboration of Wireless
networks. By the time in 2009, the Telenor and Unitech Wireless services came into an
agreement to provide a network of wireless telephony known as 'Uninor'. By the time to the end
of 2009, the Norwegian company Telenor started capturing a greater unit of Indian telecom
industry of wireless networks known as Unitech.

The Indian Cabinet Company of Economic Affairs later approved the presence of 'Uninor' in the
market of telecom service providers in India. It has entered the market with a good impression up
since it values a lot good service in India. It will set up some collaboration within two months of
time with Indian Firm Representatives so that it brings in a good feature in the telecom industry.
It has certainly spelt the promise of a great network all across the India from small villages to big
cities. It is now undertaking a great feature towards Telecom Industry.

Eight months after entering into India, Uninor started offering its services in December 2009
with the biggest ever launch in Indian telecommunications history. Telenor is committed to
making long-term investments in the Indian mobile market. This way Telenor plays an important
role in improving network stability and coverage in the country.

Customers: 42100000

Work Force: 14700

Retail outlets: 396700

Distributors: 1767

Strategy:
Launching its Indian operation, Telenor announced a set of financial targets for the new venture.
Uninor is targeting an 8% pan-India market share, breaking even on EBIDTA within three years
of launch and obtain positive operating cash flow within five years of launch. The operational
peak funding requirement is set at INR 155 billion.
Uninor’s strategy to reach its targets is based on three strategic pillars;

 servicing the basics,

 excellence in mass market distribution and
 cost efficient operations
 Our People

We are in a people’s business. We put people first in everything we do.

Caring for people reflects the way we meet you as a customer.

Norwegian firm Telenor sought a fair deal from the Indian government to protect its
investment in the country after the Supreme Court cancelled the license of its joint venture
Uninor, while analysts viewed the verdict as a setback for foreign investment in the sector, at
least in the short run.
"We look to the government to arrive at a fair outcome that doesn't jeopardize our lawful
investment," said Glenn Mandelid, director of communications, Telenor Group.
"We are reviewing the order and will consider necessary actions to safeguard our investment."
The Supreme Court cancelled all 122 licenses issued to telecom firms in 2008. However, the
apex court has given four months' time to the country's telecom regulator to look into the matter
and make recommendations for the fresh auctions.
Mandelid said the Supreme Court's decision should not be inflicted on its investment, as the
company's participation in the Indian JV started after 2008 spectrum allocation.
"When we have not caused any of the faults found by the courts, it is obvious to everyone that
our investment must not be jeopardized," he said.
Telenor has invested more than Rs. 6,100 crore in equity and over Rs. 8,000 crore in corporate
guarantees as a foreign investor in Uninor.
Uninor on its behalf said it had been unfairly treated, even as it followed the regulatory process
to acquire the 2G spectrum.
"We are shocked to see that Uninor is being penalized for faults the court has found in the
government process," said a company spokesperson.
The company said the current order by the apex court did not entail Uninor to stop operations.
"We expect the authorities to ensure that our 36 million customers, 17,500 workforce and 22,000
partners are not unjustly affected."
Another telecom operator, Sistema Shyam TeleServices (SSTL), which operates under MTS
brand in India, said it would resort to all means under the law to protect its interests.
"The company would like to state that being a law abiding organization, it reserves the right to
protect its interests by using all available judicial remedies."
SSTL is a joint venture between Sistema Joint Stock Financial Corporation of Russia and the
Shyam Group of India.
Analysts pointed out that players like Sistema and Etisalat are government-controlled companies
and these foreign governments would now be cautious about doing business in India.
And, they said, getting foreign direct investment in the sector could be a bit more challenging for
the country, till the policy framework is clarified. (IANS)

Grameenphone:

Introduction:

Grameenphone is the largest mobile telecommunications operator in Bangladesh in terms of

revenue, coverage and subscriber base. The company was incorporated on October 10, 1996 as a
private limited company. Grameenphone converted to a public limited company on June 25,
2007. Trading of the company’s shares started at Dhaka and Chittagong Stock Exchanges from
16 Nov. 2009. The shareholding structure comprises of mainly two sponsor Shareholders namely
Telenor Mobile Communications AS (55.80%) and Grameen Telecom (34.20%). The rest
10.00% shareholding includes General public & other Institutions.

November 28, 1996: Grameenphone Ltd. received cellular license by the Ministry of

Posts and Telecommunications of Bangladesh.
March 26, 1997: Grameenphone launched its service on the Independence Day of Bangladesh.
June 1998: Grameenphone started its services in Chittagong, the second largest city and the port
city of Bangladesh. Cell to cell coverage between Dhaka-Chittagong was established.
1999: Grameenphone started its service in Khulna, the industrial city of Bangladesh. Also cell to
cell coverage between Dhaka and Khulna brought a number of other districts under coverage.
2000: Grameenphone started its services in Rajshahi, the education city of Bangladesh. Service
also started in Sylhet and Barisal and thus all six divisional headquarters got the cellular network
coverage for the first time Bangladesh.
August 2003: Grameenphone's subscribes base has become more than one million.
Grameenphone became the first operator in the country to reach the million subscribers.
November 2005: Grameenphone registered more than 5 million subscribers.
November 5, 2006: Grameenphone crosses the 10 million subscriber mark after almost ten years
of operation.
September 20, 2007: Grameenphone reaches 15 million subscribers mark.
June 2008: Grameenphone reaches 20 million subscribers landmark

Grameenphone History:
 Before Grameenphone inception, the phone was for a selected urbanized few. The cell phone
was a luxury: a flouting accessory for the select elite. The mass could not contemplate mobile
telephony as being part of their lives.
Grameenphone started its journey with the Village Phone program: a pioneering initiative to
empower rural women of Bangladesh. The name Grameenphone translates to “Rural phone”.
Starting its operations on March 26, 1997, the Independence Day of Bangladesh, Grameenphone
has come a long way. Grameenphone pioneered the then breakthrough initiative of mobile to
mobile telephony and became the first and only operator to cover 98% of the country’s people
with network
Since its inception Grameenphone has built the largest cellular network in the country with over
13,000 base stations in more than 7000 locations. Presently, nearly 99 percent of the country's
population is within the coverage area of the Grameenphone network. Grameenphone has always
been a pioneer in introducing new products and services in the local telecom market. GP was the
first company to introduce GSM technology in Bangladesh when it launched its services in
March 1997.
Grameenphone was also the first telecommunication operator in Bangladesh to introduce the pre-
paid service in September 1999. It established the first 24-hour Call Center, introduced value-
added services such as VMS, SMS, fax and data transmission services, international roaming
service, WAP, SMS-based push-pull services, EDGE, personal ring back tone and many other
products and services. The entire Grameenphone network is also EDGE/GPRS enabled, allowing
access to high-speed Internet and data services from anywhere within the coverage area. There
are currently nearly 5.8 million EDGE/GPRS users in the Grameenphone network.
Today, Grameenphone is the leading and largest telecommunications service provider in
Bangladesh with more than 40.1 million subscribers as of October 2012.
 Grameenphone has so far invested more than BDT 17,800 crore to build the network
infrastructure
 Grameenphone is one of the largest taxpayers in the country, having contributed more than BDT
27,900 crore in direct and indirect taxes to the Government Exchequer over the years.
 There are now more than 1600 GP Service Desks across the country covering nearly all upazilas
of all districts and 94 Grameenphone Centers in all the divisional cities
 Grameenphone has about 5000 full and temporary employees.
 300,000 people are directly dependent on Grameenphone for their livelihood, working for the
Grameenphone dealers, retailers, scratch card outlets, suppliers, vendors, contractors and others.
Social Responsibility:

Grameenphone has several projects related to social responsibility. These include:

1. Safe Motherhood & Infant Care Project- More than 1.7 million free primary healthcare
services to underprivileged pregnant mothers & their infants.
2. Free eye care support for around 28,780 people- 3,458 eye sights restored so far.
3. Awareness building on varied national issues- AIDS, National Immunization Day.
4. Information boats with digitized livelihood contents and internal access for remote
riverine communities.
5. Economic freedom for more than 400,000 Village Phone Operators.
6. More than 500 Community Information Centers- connecting life and learning.
7. Proud sponsor of Bangladesh Special Olympics team.
8. Proud sponsor of Bangladesh National Cricket team.
9. Employment opportunity to acid survivors.
10. Scholarship for underprivileged meritorious students.
11. Blood donation camps for underprivileged Thalassaemia patients.
12. Establishment of Blood Bank at Bogra for underprivileged patients.
13. Emergency relief effort in natural calamities.
 The shareholders of Grameenphone
contribute their unique, in-depth
experience in both
telecommunications and
development. It is a joint venture
enterprise between Telenor (55.8%),
the largest telecommunications
service provider in Norway with
mobile phone operations in 12 other
countries, and Grameen Telecom
Corporation (34.2% ), a non-profit
sister concern of the internationally
acclaimed micro-credit pioneer
 
Grameen Bank. The other 10%
shares belong to general retail and
institutional investors.

The technological know-how and managerial expertise of Telenor has been instrumental in
setting up such an international standard mobile phone operation in Bangladesh. Being one of the
pioneers in developing the GSM service in Europe, Telenor has also helped to transfer this
knowledge to the local employees over the years.

The international shareholder brings technological and business management expertise while the
local shareholder provides a presence throughout Bangladesh and a deep understanding of its
economy. Both are dedicated to Bangladesh and its struggle for economic progress and have a
deep commitment to Grameenphone and its mission to provide affordable telephony to the entire
population of Bangladesh.
 

The international shareholder brings technological and business management expertise while the
local shareholder provides a presence throughout Bangladesh and a deep understanding of its
economy. Both are dedicated to Bangladesh and its struggle for economic progress and have a  
deep commitment to Grameenphone and its mission to provide affordable telephony to the entire
population of Bangladesh.
 
1st Quarter 2012 for Grameenphone Ltd.
 BDT 2,322 crore revenues, 12.3% year on year growth
 3.76 crore subscriber base with approximately 42% market share
 BDT 3.85 Earnings per share for the quarter
 BDT 373 crore investments for network quality enhancement
 Grameenphone Ltd. reported BDT 2,322 crore revenues for the first
quarter of 2012 with 12.3% increase from same period of 2011. The growth was mainly from
voice as well as interconnection revenues driven by subscription growth, revenues from non
voice services, roaming and infrastructure sharing.
“I am delighted to present the first quarter results to our Shareholders, where GP maintained its
revenue growth momentum and profitability”, said Tore Johnson, CEO of Grameenphone Ltd.
He added, “Customer centric telecommunication solutions have enabled GP to attain fair portion
of the market growth amidst tough competition”.
Wide range of customized service offerings like eCare, enhanced product features, promotions
for internet usage and wider distribution network has led Grameenphone to acquire 11 lakh new
subscribers during the quarter and conclude with 3.76 crore subscribers with approximately 42%
market share.
In December of 2011, GP completed its network modernization through network swap and
continued with investing in network quality enhancements throughout the quarter reflecting GP’s
commitment towards customers to stay close and enjoy better telecom services.
Net profit after taxes for the first quarter of 2012 was BDT 520 crores with 22.4% margin
compared to BDT 287 crores with 13.9% margin of the first quarter of 2011. Higher profit for
this period was mainly due to revenue growth, efficient cost management and reduced
depreciation expenses. EBITDA margin for the first quarter of 2012 was 55.1%, which also has
increased by 7.3 percentage points compared to 47.8% of the same period last year. As a result,
Earnings per share (EPS) for the first quarter of 2012 stood at BDT 3.85 compared to BDT 2.12
of the first quarter of 2011.
GP invested BDT 373 crores during first quarter of 2012 for network capacity and quality
enhancement. With this, GP’s cumulative investment since inception now stands at BDT 17,465
crores. Meanwhile, GP, the largest taxpayer of the country, paid BDT 1,121 crores to the
national exchequer during the first quarter of 2012 in the form of taxes, VAT and duties. This
sum up GP’s accumulated contribution to the national exchequer to BDT 25,638 crores since its
inception. 
On 13 February 2012, the High Court has directed Grameenphone to add 15% VAT amount to
the Bangladesh Telecom Regulatory Commission (BTRC) receivables and pay an additional
15% VAT to the National Board of Revenue (NBR). The Court has allowed Grameenphone to
obtain rebate on this VAT thereby, limiting Grameenphone’s total license renewal cost to 100%.
As the proposed rebate mechanism does not seem workable under present VAT scheme,
Grameenphone has filed a petition with the Appellate Division seeking clarification on VAT
deduction mechanism related to 2G License renewal fees, particularly for the rebate on the 15%
VAT amount payable to the NBR. The hearing before the Court is yet to be scheduled.
Grameenphone conducted its 15th Annual General Meeting on 10 April 2012 amidst huge
participation of the shareholders and once again, maintained a benchmark of compliance with all
regulations. The shareholders approved the financial statements and 205% cash dividend
(including 140% interim cash dividend) for the year 2011 among other agenda. It is to be noted
that more than 61,000 of the shareholders with online banking facility received their cash
dividend within 48 hours after the completion of the meeting – as a part of the company’s
commitment to its shareholders for fast track dividend payment.
 2nd Quarter revenue growth 2012 with profitability:
Sunday, July 22, 2012
First Half of 2012 for Grameenphone Ltd. at a glance
 BDT 46.4 billion revenues, 7% year on year growth
 39.3 million subscriber base with approximately 42% market share
 BDT 7.16 Earnings per share for the first half of 2012
 BDT 7.5 billion investments for network quality enhancement

Grameenphone Ltd. (GP) reported BDT 46.4 billion revenues for the first
half of 2012, a 7% increase from the first half of 2011. The growth in revenue was mainly from
voice, non-voice and roaming services driven by subscription growth. Total revenue for the
second quarter of 2012 was BDT 23.2 billion, up by 2% from the same period of 2011.
“We are happy to deliver the results for the first half of the year with business performance
backed by subscription growth and operational efficiency”, said Tore Johnsen, CEO of
Grameenphone Ltd. He added, “Amidst competitive market, GP continued to be the preferred
telecom service provider in the country with its continued focus on ensuring better customer
experience”.
Strong retail channel and distribution infrastructure with more than 350,000 point of sales has
enabled GP to reach in to the deep rural areas from where more than 60% of GP’s new customers
come onboard. With 2.8 million net customer additions during the first six months, GP’s
subscription base stands at 39.3 million with approximately 42% market share at the end of
second quarter.
Net profit after taxes for the first half of 2012 was BDT 9.7 billion with 21% margin compared
to BDT 6.8 billion with 16% margin of the first half of 2011. Higher profit for this period was
mainly due to growth in revenues combined with lower selling & distribution cost for reduced
SIM tax and lower network maintenance cost as a result of network modernization. EBITDA
margin for the first half of 2012 was 53.3%, which also has increased by 2.8 percentage points
compared to the first half of 2011.
Earnings per share (EPS) for the first half of 2012 stood at BDT 7.16 compared to BDT 5.01 of
the same period of 2011. For the second quarter of 2012, EPS was BDT 3.31 compared to BDT
2.89 for the second quarter of 2011.
GP invested BDT 7.5 billion during the first six months of 2012 on its superior network ensuring
widest coverage & highest quality to serve the customers across the country. With this, GP’s
cumulative investment since inception stands at BDT 178 billion. Meanwhile, GP, the largest
taxpayer of the country, paid BDT 27.9 billion to the national exchequer during the first half of
2012, which sums up the accumulated contribution to the national exchequer to BDT 273 billion.
On account of corporate tax, GP paid BDT 8.4 billion during the first half of 2012, which was
BDT 2.2 billion higher compared to the same period of last year.
The renewal of 2G licenses and spectrum of GP along with three other mobile operators is still
pending before the Court for final verdict on the clarification of rebate mechanism of VAT on
license and spectrum fees. Tore Johnson commented “we are eager to see amicable resolution of
this long pending issue at the earliest possible time for us to have comfort on future investment
decisions”.
The Board of Directors has declared interim dividend in cash at the rate of 90% of the paid up
capital (BDT 9 per share of BDT 10 each) for the year 2012 out of the provisional net profit of
the company for the half year ended at 30 June 2012 and retained earnings up to 31 December
2011. The Shareholders as of the record date of 31 July 2012 will be entitled for this dividend,
which will be distributed within the timeframe stipulated by the regulators.