Ufone

Ufone GSM is a Pakistani GSM cellular service provider, It's one of five GSM Mobile companies in Pakistan, and is a subsidiary
ofPakistan Telecommunication Company. After the privatization of PTCL, Ufone is now owned by Etisalat. Ufone has a
subscriber base of 20.23 million as of September 2010.

Ufone Cellular Company

INTRODUCTION TO UFONE
Ufone is a newly cellular company as compared to others like Mobilink,
Zong(Paktel), Instaphone operating inPakistan, providing cellular services
for Eight years now. Ufone services are offered by Pak Telecom Mobile
Limited (PTML), a 100% owned subsidiary of Pakistan
Telecommunication Company Limited (PTCL). Established to operate
cellular telephony. The company commenced its operations, under the
brand name of Ufone, from Islamabad on January 29, 2001. and
subsequently extended its coverage to other cities i.e. Lahore, Karachi,
Kohat, Jehlum,Gujranwala, Faisalabad, Sheikhopura. In addition to the
road coverage on Peshawar-Islamabad-Lahore section. Till now its
coverage has been extended to more than 750 cities. In Peshawar its
operation were started on 7th of May, 2001.
Ufone, the brand name of the service, has been a highly successful venture
touching 120000 subscribers in less than four months of its operations.

SWOT analysis of Ufone

INTRODUCTION

Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile companies in Pakistan and is a subsidiary of

Pakistan Telecommunication Company. The company commenced its operations under the brand name of Ufone from Islamabad

on January 29 2001. U fone expanded its coverage and has added new cities and highways to its coverage network. After the

privatization of PTCL, U fone is now owned by Etisalat. PTML is a wholly owned subsidiary of PTCL. established to operate cellular

telephony. The company commenced its operations, under the brand name of Ufone from Islamabad on January 29 2001.

During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication

Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July

2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities
and highways. Ufone has network coverage in more than 750 cities, towns and across all major highways of the country. During the

year Ufone successfully completed the network expansion of Phase 4 in existing as well as in new cities and towns which amounted

to more than US Dollar 170 million. As a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion.

Future Plans Keeping in view the growth potential of the cellular industry there is no option but to be aggressive in order to remain a

potent force in the cellular industry. In order to extend cellular network to new cities, towns and highways and enhance its current

installed capacities in existing cities, Ufone has finalized a huge network expansion contract amounting to about USD 550 million,

which will enhance the subscribers’ capacity by 10 million. This is the largest ever expansion project of Ufone.

STRENGHTS

Ufone has network coverage in more than 750 cities, towns and across all major highways of the country.

Ufone provides International Roaming facility with more than 150 international operators across 79 countries.

Ufone is proud to have an efficient and friendly customer service through 21 company-owned Sales & Customer Service Centers

and nearly 250 franchisees across the country.

 Ufone has always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its

expansion efforts and quality of service. With a total current investment of $400 Million.

Utunes was launched on 4th Dec2007 which attracted many people towards ufone.

Ufone is offering the service of Multi-media Messaging Service (MMS).

As mobile users in the country have reached over 78 million at a very rapid pace, Ufone has maintained itself as the 2nd largest

cellular operator in Pakistan with a subscriber base of around 16.5 million and a market share of nearly 25%. Ufone has seen a

subscriber growth rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto its

network. A remarkable achievement indeed, especially considering the fact that two new international players also entered into the

market in 2005.

While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only

affordable by the elite, to a necessity affordable by the common man.

Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand.

Ufone has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and

a 24 hour call center facility.

    It has the post paid service that is normally to attract the Business class people. Most of the business and elite class people use

post paid and other services offered by the Ufone.

Ufone has a subscriber base of 18.97 million as of October 2008.

Ufone was the first cellular Company in Pakistan that introduced the  service of GPRS  and hence took the competitive advantage.

    Ufone has some exciting and energetic SMS packages that made SMS almost free. They are offering Rs. 25, Rs.50, Rs.100,

Rs. 150 SMS packages which its subscribers are really loving it.
Ufone has some very exciting and low call packages like “5 ka 15” , “u-one”, u circle”, “ U fone ghanta”, “U fone has some very

exciting and low call packages like “5 ka 15” , “u-one”, u circle”, “ Ufone ghanta”, “U fone life package”and “ prepay Public Demand”

etc which attracted lots of customers towards it and many other cellular company users are also switching to it.

Ufone post paid is also offering black berry set that is useful and tempting for the Business class.

Ufone currently caters for international roaming to more than 195 live operators across 119 countries and introduced International

roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait

with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 75 Live

Operators across 59 countries.

WEAKNESSES

 Ufone does not have the proper lists of its customers. It has the list but this list is not authentic which is increasing the

unauthorized use of its sim specially pre pay. U fone have to  take serious steps to properly list its customers to ensure that there is

no misuse.

It has many franchises in the whole country but as its customers are increasing day by day so its present franchises are not

enough to fulfill the needs of it customers.

Ufone also face problems and its network get jammed on special occasions like Eid, Christmas, New year etc

Ufone has the problem of voice quality. Though its coverage area is vast and it covers more than 750 towns and cities in Pakistan

but the voice quality is not as good as it  should be.

Ufone though has some unique and distinct services but  it has not yet given many innovative services as compared to other

cellular companies.

Ufone was the first to introduce the SMS packages but their packages are not flexible enough and its charges are only on monthly

bases while it should be on both monthly and daily basis.

Call rates from u fone to u fone is very cheap but to other networks its rates are expensive.

Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is a bit poor.

In Ufone web support is not available.

Its customers service staff need training because at many franchises their employees are have been complained about behaving

rudely.

If Ufone company have to progress and grow in market it has to improve its advertising campaign. Its advertisements are not good

and eye catching.

Being the part of PTCL it has to face many problems like strike by employees etc.

When U fone came into the seen in Pakistan cellular market Mobilink was already prevailing in the market and it was all Mobilink

monopoly that time. Though with the passage of time U fone took many customers of Mobilink but still Mobilink has large number of

users because it was first to Pakistan’s cellular market and this is the competitive disadvantage to U fone.
Ufone is plagued with some internal problems like when it is privatized to Etisalaat being the part of the PTCL many employees

were not happy with the pay scale that they were offering.

OPPORTUNITIES

Ufone could develop some new and innovative services to attract customers and some of the suggestions are as under which will

help them to increase their revenues:

1.It should introduced International SMS packages like local SMS. Already Ufone is offering lowest International SMS rates but if

they introduce some package like this it will get lots and lots of success.

2.They should also introduce some International call packages to Middle Eastern countries because there are lots of Pakistanis who

are living in those countries so people will definitely be tempted towards such package.

3. In “ Ufone ghanta” package time of the package should be extend two more hours so that more & more people will use this

service and causing U fone to generate more revenues.

 Ufone should develop some new franchises in remote areas so that people will get more and more benefit from it and it will help

to increase their customers.

 As in Pakistan Youth is almost the 50% of the population so Ufone can take advantage of this demographic situation and should

introduce more and more services and packages that attracts youth towards it.

Ufone should extend its network coverage area to Northern part of the country as well because in that part not too many

companies are giving services and if Ufone give its service there then it will definitely attract people and its number of customers will

shoot like a rocket.

It should also introduce some packages for Internet users on mobile if it do so then many people will switch from other networks

towards it.

If Ufone enhance its voice quality then definitely it would be prefer more by customers.

Ufone should import technological equipments from China because they are giving the best technology at very low rates so it will

not only help U fone to be ahead technologically but also will help U fone to decrease its cost.

Ufone can surprise its competitors by introducing “U fone kiosk”. These will be ATM like machines and that will give 24-hour

service to U fone subscribers to load the balance just like they take money from ATM.

THREATS

As Ufone is cellular company and there is cut throat competition among cellular companies in Pakistan. There are six other

companies also working in Pakistan so U fone would have to face some growing competitive pressures.

Pakistan is facing some serious economic problems now days so that would also effect U fone. The current recession in market is

not good for any kind of business including telecommunication.

In Balochistan and FATA where U fone already has network coverage is in danger because of critical situation and operation being

held there. Investment of U fone is in danger.

Ufone penetrated in the market from 2005 to 2006 quite rapidly but since then it is experiencing a bit slower growth.
By the arrival of China Mobile Company (Zong) in cellular industry of Pakistan the U fone and other companies now have to face

the severe competition. As Zong is introducing some various attractive packages of both SMS and calls to attract customers. U fone

have to develop strategies to counter their strategy and to survive in the market.

The key threat to U fone is also some adverse Government policies of implementing Tax on telecommunication industry that will

ultimately affect the revenues.

There are some rumors about the shares of PTCL in the market. Being the Subsidiary company of PTCL, U fone will also be

affected by that.

 Telenor is giving higher rumenration to its employees as compared to U fone so many of its skillful and competent employees are

going there. That will affect the company’s profitability in the long run.

Some Pressure groups are protesting on the Towers that are installed in residential areas. Their opinion is that it is not good for

health of people to have such towers near their homes that cause radiations.

Ufone have to revise the list of subscribers who are legal and authorized. Because now the Government has warn to take strict

action if any company would not keep such record.

Company Profile
 
Pak Telecom Mobile Limited (PTML) is a wholly owned subsidiary of...
 
...Pakistan Telecommunication Company Limited (PTCL) that started its operations in January 2001 under the
brand name ‘Ufone’. As a result of PTCL’s privatization, Ufone became a part of the Emirates Telecommunication
Corporation Group (Etisalat) in 2006.

Since its inception, Ufone has focused on the people of Pakistan, empowering them with the most relevant communication
modes and services that enable them to do a lot more than just talk, at a price that suits them the most. Along with the claim
of lowest call rates, clear sound and best network, Ufone offers its customers simplified tariffs with no hidden charges. With a
strong and uniquely humorous communication direction that has now become Ufone’s signature across all advertising media,
Ufone gives its customers many reasons to smile.

This customer focus and best offering has allowed Ufone to build a subscriber base of over 20 million in less than a decade.
Ufone has network coverage in 10,000 locations and across all major highways of Pakistan. Ufone currently caters for
International Roaming to more than 288 live operators in more than 160 countries. Ufone also offers Pakistan’s largest GPRS &
BlackBerry Roaming coverage available with more than 200 Live Operators across 122 countries. More recently, Ufone has
become a focused and intensive leader in VAS, constantly introducing innovative services, which have been the first of their
kind in the Pakistani cellular industry.

As the world of telecommunications advances, Ufone promises its customers to stay ahead, developing and evolving, to go
beyond their expectations, because at Ufone, it’s all about U.