The Oman Telecommunication Company

Check out more papers on Electronics


Brief History

The Oman telecommunication company is the most reliable and unique telecom and multimedia service provider in Pakistan which is also known as Omantel. The world call telecommunication limited is also the Omantel’scompany.

Don't use plagiarized sources. Get your custom essay on

“The Oman Telecommunication Company”

Get custom essay

The company’s word:

“WorldCall launched its business in June 1996 with payphone operations. A fundamental shift in technology and industry, innovation and dedication led us to growth in diversified businesses with a range of services designed to serve the needs of the local market. From Cable Broadband to Wireless Broadband, from Cable TV to Video on Demand, from LDI services and fiber optic network to wireless local loop telephony, WC has crossed a number of milestones. WC offers an array of services under three major service categories i.e. Data, Entertainment and Voice.”

WorldCall Telecom Ltd. became an associate company of Omantel after acquisition of major share holding by Omantel in 2008. Today, WorldCall Telecom has become more innovative, dedicated, and reliable company in Pakistan.

Status of Omantel:

Oman Telecommunications Company (Omantel) is the largest communication service provider in Oman. Any telephone call you make, local or international, the SMS Messages, or internet services, Omantel is the major and larger provider.

Situational Analysis

In 1996 First Capital Securities Corporation commenced to incubate payphone operation named WorldCall Payphones Limited. The new venture stood first in a communication revolution that was yet to hang on the country. WorldCall perception of a changing business environment placed them at the lead of a demand-led explosion of payphones all over the country. WorldCall introduced their first payphone in June 1996. They were one of the largest fixed line payphone operators. With the expansion in telecom they have continued to innovate. Over the years they have invested heavily in new technologies and businesses.

In 1998 prepaid calling cards were launched by WorldCall Phonecards under the brand name “Hello”. In the following years WC provided its dial-up internet services through

In 2000 WorldCall in Multimedia segment established a Hybrid Fiber Coaxial (HFC) network in Lahore thus becoming the first Multi-service operator in the country, providing cable television and Internet-over-cable. WC cable TV in Lahore, is the last but largest entrant till now.

In 2003 WC launched a state of the art HFC network operation in Karachi under WorldCall Broadband Limited. These are the largest and only national networks capable of three features at the same time (cable TV, high speed internet/data and telephony). WorldCall Telecom Limited got Wireless Local Loop (WLL) license in the post deregulation auction to provide WLL telephony in all 14 telecom regions of Pakistan primarily in the 1900 MHz band. It has partnered with Samsung for a CDMA 2000.

WC started service from Lahore in June 2005 which is now available in over 40 cities. WC also acquired an LDI license and service commenced at the end of 2004. WTL enjoys significant edge over competition due to unused fiber optic capabilities available in the telecommunication sector.

In April 2008, Omantel had acquired 65 percent shares of WorldCall Telecom Limited for $200 million. The CEO WorldCall Mr Salmaan Taseer led the WorldCall delegation Salman Taseer said that WorldCall is the first company to launch payphone cards, High HFC System and local loop in the country. WorldCall is positioned in a unique way being the only real Multi Service Operator (MSO) in Pakistan telecom landscape with proven track record and established market position in various segments of its operations. WorldCall also enjoys leadership position with consistent growth in its market share for broadband connectivity and cable television.

Focus of rollout will principally target broadband segment with sustained growth of voice services. This planned expansion coupled with initial investment would see a decent inflow of capital into Pakistan. Omantel is a publicly traded telecom company based in Oman with diversified operations. However, acquisition of majority stake in WorldCall is its first overseas venture.

Structure of WorldCall

Location of offices

WorldCall Telecom Limited

67-C III, Gulberg III, Lahore, Pakistan

Tel: (92 42) 5872633-38

Fax: (92 42) 5755231

Wireless Local Loop Main Office

Ibrahim Trade Center (Near Barkat Market)

1- Aibak Block, New Garden Town, Lahore

(92 42) 8464646

WLL Helpline

(92) 0800-19111

WC Net Helpline 109,

UAN (111-111-965)

Number of Total Employees:

As of December 2010, around 1800 total employees work for WorldCall. (More than 3000 before downsizing after acquisition of WorldCall by Omantel, however these decisions were taken by the Omani top management)

Legal Status and Nature of Business

The Group consists of:

WorldCall Telecom Limited

WorldCall Telecom Limited (“the Company”) is a public limited company incorporated in Pakistan on 15 March 2001 under the Companies Ordinance, 1984 and its shares are quoted on the Karachi and Lahore Stock Exchanges.

WorldCall Telecom Ltd. group’s principal activity is to provide telecommunication services. It operates through two business segments: Telecom segment provides operation and maintenance services for payphone network. Broadband segment provides internet over cable and cable TV services. The Group operates mainly in its domestic market.

The Company commenced its operations on 01 December 2004 and is engaged in providing Wireless Local Loop (“WLL”) and Long Distance & International (“LDI”) services in Pakistan, operation and maintenance of public payphones network and re-broadcasting international/national satellite/terrestrial wireless and cable television and radio signals as well as interactive communication and to establish, maintain and operate the licensed telephony services. The Company has been licensed by Pakistan Telecommunication Authority (“PTA”) and Pakistan Electronic Media Regulatory Authority (“PEMRA”) for these purposes.

Worldcall Telecommunications Lanka (Private) Limited (“the Subsidiary”) was incorporated in Sri Lanka and is a joint venture with Hayleys Group to operate payphones. The principal activity of the Subsidiary is the operation and maintenance of public payphones networks. Payphones are installed at various shops/commercial outlets. The Company holds 70.65% of voting securities in the Subsidiary.

Type of Ownership

A Subsidiary of Omantel

Before the acquisition and restructuring of WorldCall, the WorldCall group was consisted of following companies:

  • Worldcall Communications Limited
  • Worldcall Phone cards Limited
  • Worldcall Multimedia Limited
  • Worldcall Broadband Limited

Omantel decided to consolidate WorldCall into a single company and as a subsidiary of Omantel.

Foreign Subsidiary

Worldcall Telecommunications Lanka (Pvt.) Limited is a foreign subsidiary of Worldcall Telecom Ltd.

Key Players

Historically Salman Taseer remained the key player in WorldCall as a Leader, CEO and Chairman.After the completion of acquisitions Omantel plays important role at corporate level but WorldCall lacks any leadership personality like Salman Taseer.

CEO of the Company

The current players are Babar Ali Sayed (CEO) former LDI Director Operations. First time in the history of WorldCall the CEO is from Technical Department, unlike previous CEOs with background in Finance and Chartered Accountants. A current picture of MR. Babar Ali Syed is below:

Board of Directors

  1. Mr. Mehdi Mohammed Al Abduwani
  2. Mr. Talal Said Marhoon Al-Mamari
  3. Mr. Bernhard Heinichen
  4. Mr. Samy Ahmed Abdulqadir Al Ghassany
  5. Mr. Zafar Iqbal
  6. Mr. Aimen bin Ahmed Al Hosni
  7. Mr. Saud bin Ahmed Al-Nahari
  8. Mr. Shehryar Ali Taseer
  9. Mr. Asadullah Khawaja (nominee Arif Habib Securities Limited)

Vision and Mission Statements


We at WorldCall are committed to achieving dynamic growth and service excellence by being at the cutting edge of technological innovation. We strive to consistently meet and surpass customers’, employees’ and stake-holders’ expectations by offering state-of-the-art telecom solutions with national & international footprints. We feel pride in making efforts to position WorldCall and Pakistan in the forefront of international arena.


In the telecom market of Pakistan, WorldCall to have an overwhelming impact on the basis of following benchmarks:

  • Create new standards of product offering in basic and value added telephony by being more cost effective, easily accessible and dependable. Thus ensuring real value for money to all segments of market.
  • Be a leader within indigenous operators in terms of market share, gross revenues and ARPU within five years and maintain the same positioning thereafter.
  • Achieve utmost customer satisfaction by setting up high standards of technical quality and service delivery.

Ensuring the most profitable and sustainable patterns of ROI (Return on Investment) for the stake-holders.



§ Be a leader within indigenous operators in terms of market share, gross revenues and ARPU within five years and maintain the same positioning thereafter.


§ Create new standards of product offering in basic and value added telephony by being more cost effective, easily accessible and dependable. Thus ensuring real value for money to all segments of market.


§ Achieve utmost customer satisfaction by setting up high standards of technical quality and service delivery.

Now in term Components:

§ Customers

§ Product services

§ Markets

§ Technology

§ Concern for survival growth and profitability

§ Philosophy

§ Self concept

§ Concern for public image

§ Concern for employees

Suggested Correct Vision Statement:

To be a leader in a telecom industry by being at cutting edge of technological innovation.

Goals & Objectives of WorldCall 2010:


  • To redevelop an infrastructure which help company to implement multi destination LDI operations
  • To expand the wireless broadband network
  • To secure advertisement revenue share through cable TV network


  • To secure international terminations from the major countries of Europe and USA; and establishments POPs (Point-Of-Presence, Switch, Router, Billing system) using co-location.
  • To establish head-ends (main transmission source) in 14 major cities of Pakistan.
  • WorldCall plans to expand its EVDO service in all the 50 major cities of Pakistan.

External and Internal assessment


The Telecom sector all around the world and especially in Pakistan has experienced a tremendous growth in the last few years. The telecommunication sector of Pakistan was awarded the status of industry in 2005 and since then it has been one of the fastest growing sectors of Pakistan quite eminent from various factors such as the mobile density reaching 61.7% in December 2010 and the number of mobile subscribers reaching 102 million. (Source: Pakistan Telecommunication Authority, Annual report 2010).

Political factors

  • The political environment of Pakistan is getting unstable & uncertain day by day so only the government decision and initiative measures are very important.
  • Decline in foreign investment is also the reason of political instability.
  • PTA is highly autonomous govt. organization and has shown the moderate continuity in the policies regardless of changes in the political environment.
  • PTA is striving hard and trying its best to provide equal competition opportunities in Telecom industry.
  • Govt. can announce unexpected tax changes in Telecom industry.
  • PTA convinced the government that raising taxes will not result in more money coming in – the reverse is actually true as the Pakistan government got less revenue.

Economical factors

  • The ever increasing economical issues like inflation and the growing debt of Pakistan.
  • The disposable income of people getting low due to the price inflation of consumer goods & services.
  • PTA report 2010 tells that telecom sector of economy is in a good shape and growing.
  • Inflation is controlling by state bank and under strict eyes but unemployment rate is going up and up with the increase of level of poverty.
  • High interest rate ~13%
  • Decline in Telecom share in total GST due to low tariffs.

Social factors

Telecommunication is used in the professional and private sphere now days.

  • Better telecommunication services and telecommunication is now becoming essential part of people lifestyle.
  • Now people have become habitual of consuming new technology products. Internet has become a real working tool; people use Internet at home, at work.
  • People are interested in more than just “Plain Old Cable/TV” technologies… like Digital Cable TV, Video-On-Demand, and Personal Video Recorders not just plain old TV due to frequent use of internet.
  • Young generation is getting more interest in wireless telecommunication and spends more time in online social activities like chatting, social networking.
  • Telecommunication becoming an integrated part of our social life style. People now like to use Facebook on their pc and on mobile, allowing them to connect with their family and friends anytime anywhere.
  • Internet becomes an integral part of people social-lives.
  • Online gaming is growing rapidly and the ever increasing gaming competition all over the world and in pakistan as well.

Technological factors

  • Telecom sector have technology with which they can compete in Pakistan and now companies are investing in their infrastructure to not only expand but also to upgrade their existing structure.
  • Currently mostly companies are providing Multi-media Messaging Services (MMS), General Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference Calling, Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at low price and some are also providing feature that one can see TV channels on their cell.
  • Individuals and companies are recognizing the benefits of mobility of wireless broadband.
  • The expertise of IT and Telecom industry has greatly reduce cost and time on the usage of products and services. For example, new VoIP technologies are changing the cost structure of the LDI business.
  • Upcoming future wireless broadband technologies are changing the trends of internet usage.
  • Pakistan’s telecom industry is one the fastest growing industries even compared to other countries.
  • Innovations and development in telecom technologies has played a major role in the overall growth. Innovations and Developments in IT and Telecom can create and motivate new demands. Like Video Conferencing induced more demand for companies interested in online business meetings.
  • Now a day, firms are in search of reliable information systems. And for this telecom technologies playing vital role.

Environmental factors

  • The telecommunication towers spoil the view especially of tourism places but no attention is paid towards this.
  • Ecological Factors
  • Natural Obstructions in Wireless Transmission
  • Infrastructure usage facing difficulty due to the conditions of land.

Legal factors

  • Corruption and bribery in legal authorities suffers a telecom companies a lot to face difficulties
  • PTA is the telecom industry regulator and their some objectives are:
  • Telecom sector changed from monopoly to competition
  • Protection of the rights of the companies competing with incumbents and to provide safeguards the interest of the users of the telecommunication services.
  • The unbiased laws of telecom sector to establish healthy competition in market.

Porter’s five forces model

Threat of New Entrants

Telecom is a very capital concentrated industry, entry into this industry means that the firms need access to huge amount of capital mainly to cover the fixed costs to lay and maintain a physical network (infrastructure, fiber optic cables etc) to the premises of customers.

As it is mandatory for the firms to get approval/licenses from PTA, which is both costly, and a tiresome job. Although companies in this industry mostly tended to monopolies regulated by the government up to price controls and moderate to heavy taxation. The telecom industry is already dominated by major players and smaller manufacturers have to struggle, due to high setup costs and market dominations threat of new entrants is low because of:

  • High Government restrictions or legislation
  • Telecom licenses, rights, regional licenses
  • Expected Mergers and Acquisitions
  • High fixed costs
  • High Capital requirements
  • Aggressive competition

Bargaining Power of Suppliers

There is intense competition between suppliers because of multi-million dollar contracts between Pakistani firms and mostly foreign suppliers.

List of suppliers who intensely compete with each other to reach contracts with their business customers. Sometimes suppliers show flexible behavior to maintain the long term relationship with their profit oriented customers.

In an telecom industry the manufacturers of telephone switching /switch board equipment, fiber optic cables, network equipment, and billing software makers are low. The prominent names in this industry include Cisco, Alcatel-lucent, Ericsson, Hawawie, ZTE, Samsung, Nortel and Motorola.

With the outcome of economic crises and excess capacity and falling demand, the suppliers do not have much power and have to negotiate gently with the telecom companies because of:

  • High availability of substitute inputs
  • Competitive suppliers of telecom equipment
  • Low degree of differentiation of inputs, due to high component standardization.

Bargaining Power of Consumer

Consumer have high power because customer influence in pricing and shifts towards other sellers if he/she is not satisfied with the quality or price of the product or services. Consumers have very high buying power in telecom sector because though they have many options to choose from especially in Voice segment.

Firms are now more concentrating on providing after sales services. Most of the products in the telecom sector industry have not much difference while some may have considerable differences.

The increasing trend of communication like email, instant messaging, is declining the importance of voice services.

  • Switching to another product is simple
  • Customers are price sensitive
  • Consumers have high product knowledge
  • Switching costs are low
  • Availability of existing substitute products

Plenty of choice of several technologies and other communication means available, enhanced the buyer’s power.

Threat of Substitute Products

There are many substitutes available in market. In case of unsatisfactionwith any of the feature customers can easily switch to the other because he/she has the almost exact or the same kind of substitutes.

Many of the substitute products and services have emerged in voice, data and entertainment in telecom due to the technological breakthroughs. Switching power is high in telecom sector characterize by high technological developments and fast availability of alternative substitutes.

Some of these are more convenient and offer far greater value to the consumer and have diminished the importance of traditional fixed line phones. Substitutes include Broadband, Wireless broadband, DigitalTv, IP Telephony, Mobile phones, Satellite, Email, and Instant Messaging etc.

Rivalry among Competitors

Due to growth opportunities and government focus on the telecom sector, there is a strong likelihood that competition will gradually increase as new firms enter the industry.

there are many existing competitors of world call. The intensity among current rivals is intense and they are mostly competing on technological bases to create competitive advantages.

Industry rivalry has become extremely intense with the emergence of new competing firms leading to price cuts across the industry.

  • Companies can only grow by stealing market share away from competitors.
  • Telecom industry with a very high growth.
  • Advertising intensity and spending are very high.



  • Technical infrastructure
  • HFC-cable
  • Product range
  • Working in major cities
  • Reputation
  • Balanced sales
  • Reliable wireless broadband


  • High dependence on Voice segment
  • Weak marketing
  • Lacking a proper long-term strategy
  • Weak brand positioning
  • Less focus on short-term profitability
  • Infrastructure varies from location to locations
  • ERP implementation taking too long


  • Demand increased for backhaul network
  • Cross-sell in major cities
  • Increased demand for LDI and Broadband
  • Privatization of government telecom projects
  • PTA delayed 3G licenses


  • Economy instability
  • CaTV operators alliance
  • Threat by WiMax or other 4G technologies
  • Government policies
  • Increased consumer churn rate
  • Heavy Price competition

SWOT Matrix


Strengths – S

1. Technical infrastructure

2. HFC-cable

3. Product range

4. Working in major cities

5. Reputation

6. Balanced sales

7. Reliable wireless broadband

Weaknesses – W

1. High dependence on Voice segment

2. Weak marketing

3. Lacking a proper long-term strategy

4. Weak brand positioning

5. Less focus on short-term profitability

6. Infrastructure varies from location to locations

7. ERP implementation taking too long

Opportunities – O

1. Demand increased for backhaul network

2. Cross-sell in major cities

3. Increased demand for LDI and Broadband

4. Privatization of government telecom projects

5. PTA delayed 3G licenses

SO Strategies

Market development of HFC-Cable (S3, O2)

Market development of Wireless Broadband (S7, O3)

Offer more B2B Data services (S1, O1)

WO Strategies

Market Penetration and Product Development of Data services (O5, W1)

Brand development for broadband segment (O3, W4)

Develop uniformity across infrastructure (O1, W6)

Threats – T

1. Economy instability

2. CaTV operators alliance

3. Threat by WiMax or other 4G technologies

4. Government policies

5. Increased consumer churn rate

6. Heavy Price competition

ST Strategies

Market development of HFC-Cable (S3, T2)

Diversification of Products (S3, T1)

Differentiation strategy for wireless broadband (S7, T6)

WT Strategies

Highly Differentiated Products (T6, W2)

Quickly integrate ERP to analyze churn-rate (T6, W7)

Hold & Maintain (T1, W5)

BCG Matrix

Core Competencies Analysis

The core competences that we have analyzed are

  • Strong Dark Fiber
  • Largest (hybrid fiber coaxial) HFC/Cable Operator (CATV, IOC, VoIP/MSAN

Telephony in Pakistan.

  • Premium WLL and LDI operator in Pakistan.

Specific Specialties

Worldcall has taken the lead in introducing innovative telecommunication services in Pakistan:

  • “Supervised Payphones” business model in Pakistan which is now being followed by many other operators – largest fixed line payphone infrastructure.
  • The first company to introduce prepaid calling card services in the country.
  • Worldcall developed the first ever broadband HFC convergence

Infrastructures in Pakistan – the only operator in Pakistan and one of the few in the region to provide a triple play (CATV, broadband internet, telephony)

Worldcall was the first operator in Pakistan to commission a state of the art next generation network (“NGN”) – covering long distance & international (“LDI”) inbound and outbound, local loop (“LL”) / wireless local loop (“WLL”) telephony services. This is a fully converged architecture enabling wireless solutions and hybrid fiber coaxial (HFC) telephony.

Strategies Undertaken at:

Corporate level:

As the other firms have strategies, WorldCall also has strategies at different levels. In corporate level strategies they basically discuss the current business status as well as the future of the current business. Then they decided in meetings, that in which sector they have to add something and in which sector they want to remove something. They are mainly concerned with:

  • What kind of businesses they want themselves in?
  • How they should manage all sectors or businesses?

Types of diversifications they are following

Related Business Diversification

WorldCall mainly focus in Related Business Diversification. As many good and effective service of WorldCall the broadband service of WorldCall has good growth and opportunity. In this same line of business they diversify their business and there diversification is very much effective for them. They are introducing new and new things in this same line of business that have so many opportunities now a day in Pakistan. WorldCall has made its place in the current market by offering several and unique services. People want now a day’s some modernized services and WorldCall is properly working to promote these kinds of services. Some of the services are as follows (Video on Demand, cable TV, internet over cable). Currently the Company has several ongoing projects like HFC cable, Point-To-Point corporate broadband services, VSAT (satellite broadband) and DigitalTV which are in the different phases of roll out, all aimed at provisioning of sophisticated data and video services. Reasons for related diversification:-

  • To reduce the risk!!!
  • High Compatibility with technical infrastructure!!!!!
  • Support some losses in other segments!!

Defensive Strategy

WorldCall in September 2009 completed the divesture of its foreign subsidiary WorldCall Lanka. They thought that this should be no more in their business.

Forward Integration

Although in a very poor state WorldCall is using Franchising as their forward integration strategy, however they do not have much control on their franchises.

Product / Service Portfolio Management

WorldCall has successfully introduced True Video-On-Demand technology. They have also started WorldCall Wireless Broadband with EVDO technology in the product portfolio. Another very effective service was pay phones and in 2009 officially phased out.

Product Development Strategy

The product development strategies are one of the most important strategies that should be in business if you want to survive in the market or in the business world. Worldcall is also using product development strategies as it involves development of telecom services and products. They have first mover advantage in CDMA2000 based EVDO wireless broadband. CDMA2000 represents a family of ITU-approved, IMT-2000 (3G) standards and includes CDMA2000 1X and CDMA2000 1xEV technologies. They deliver increased network capacity to meet growing demand for wireless services and high-speed data services. CDMA(code division multiple access) is the fastest growing wireless technology and it will continue to grow at a faster pace than any other technology. It is the platform on which 2G and 3G advanced services are built.

Market Development Strategy

In market development strategy you have to develop your market, worldcall has developed its market after making analysis. For example WorldCall EVDO Wireless Broadband was initially launched in Karachi followed by Lahore to other major cities including Gujranwala, Faisalabad, Multan and to inclusively to 50 major cities of Pakistan. Same is the expansion of Cable TV service to major cities of Pakistan.

Business level strategies

WorldCall offers many services under than head of 3 Major Business Segments

  • WorldCall Data
  • WorldCall Voice
  • WorldCall Entertainment

WorldCall Data (EVDO Wireless Broadband)

WorldCall is following differentiation strategy for WorldCall EVDO wireless because the size of market is large and the product is differentiated for its performance and mobility.

WorldCall Voice (LDI Services)

WorldCall is following cost-leadership strategy in LDI because of intense and dynamic price competition in LDI market

WorldCall Entertainment (Video On Demand)

WorldCall’s relatively new service is using “Focus-Value Strategy” because the target market is very small and product offers high degree of control with respect to traditional cable TV.


Telecom Sectors according to PTA:

The Pakistan Telecommunications Authority (PTA) has forced the incumbent fixed-line and broadband operatorPakistan Telecommunication Company Ltd (PTCL) to enter a formal interconnection agreement with rival operators in the xDSL broadband market. The broadband operators, many of which are small and privately owned, have petitioned for reasonable access to PTCL’s fixed-line network to help them reduce costs and offer more competitive tariffs.

BMI(Business Monitor International) has consistently identified cost as being the single largest barrier to growth in the Pakistani broadband market. In India, where the government is actively pushing for growth, broadband services are available for US$8 per month. In Pakistan however, such services average US$16 per month. With the country’s mobile operators electing to deploy wireless broadband mainly in urban areas, customers in many smaller population centres have little or no high-speed access to the internet.

Broadband Growth Now Possible For Pakistan

Forecast Broadband Subscriber Growth, 2007-2014

Source: BMI

The Pakistani government has tried to encourage service providers to take advantage of rural service provision subsidies via the Universal Services Fund (USF), but rollout has been slow, affected by service providers’ inability to quickly source and deploy infrastructure. Further problems include the relatively high cost of PCs and laptops and a widespread lack of IT literacy.

Segments And Target Market


WLL – Wireless Local Loop:-WorldCall owns premium spectrum for Wireless Local Loop (WLL) in all 14 telecom regions in the country Telephony and Data services are being offered using wireless CDMA technology.

  • Samsungis technology partner / vendor for latest CDMA 2000 1x solution for Phases I & II
  • Key technology partner for terminal equipment isLGService launched from Lahore – June 2005
  • EV-DO (Evolution Data Optimized – data rate upto 2.4 Mbps) launched in selected areas – July 2006
  • HUAWEITechnologies is the vendor for Phase III rollout, which includes Karachi (the largest metropolitan) & Hyderabad

Current operations in over 40 cities of Pakistan:

Lahore, Gujrat, Kharian, Sheikhupura, Sargodha, Sialkot, Gujranwala, Multan, Bahawalpur, Peshawar, Kasur, Faisalabad, Hyderabad, Joharabad, Sukkur, Wazirabad, Lalamusa, Jhelum, Dinga, Mandi Bahauddin, Rahim Yar Khan, Sahiwal, Bahawalnagar, Vehari, Okara, Khanewal, Raiwind, Muridke, Khushab, Narowal, Pakpattan, Kamoke, Muzaffargarh, Jalalpur, Jhang, Mardan, Burewala, Daska, Mianwali, Leiah, Hafizabad.

High speed data service EV-DO – Wireless Broadband:-Launched in June 2006. 1x Evolution-Data Optimized (EV-DO or EVDO), is the wireless radio broadband data standard taken up by various CDMA service providers internationally. WorldCall’s service provides data rates upto 2.4 Mbps.

Pay Phone:-The largest fixed line payphone operator in Pakistan Introduced the highly successful ‘Supervised Payphone’ concept in Pakistan Technology:

  • Smart card based wireless payphones
  • CDMA 2000 1x based wireless payphones Operating in both ‘Supervised’ and ‘Standalone’ segments WLL payphones have only recently been introduced and are cheaper and faster to deploy Extensive distribution network Highly trained sales and maintenance teams Positioning to be market leader in the overall fixed and wireless payphones market

HFC (Hybrid Fiber Coaxial) – Broadband:-WorldCall has deployed Hybrid Fiber Coaxial (HFC) network in Karachi and Lahore. WorldCall provides customers with the ability to lease dark fiber for high-speed, dedicated fiber optic networks or offers availability of cable ducts for businesses to have their own network. Fiber optic networks are pathways installed in conduits underground or on utility poles. Users of Dark Fiber choose the electronic equipment they wish to use and control their own light signal. This gives Dark Fiber several distinct advantages over traditional telecommunications.

Key Features:

  • 100% buried fiber and exclusive owned Right of Ways for Fiber Ducts
  • The most advanced quality Poly / Ethylene pipes/duct
  • Corning SMF-28e (enhanced) version fiber conforming to industry standards including ITU-T G.652 (Categories A, B, C & D), IEC 60793-2-50 (type B 1.1 & 1.3) and TIA/EIA-492 CAAB fiber
  • Flexible networks operating throughout the Single Mode fiber operating window (1300 nm – 1650 nm)
  • 24×7 Vigilance and Emergency Response teams for all fiber routes
  • The only Triple Play network provider conforming to ISO Standards

WorldCall Cable Broadband:

  • Portability & Mobility
  • Plug & Play
  • No power required
  • Unlimited downloads
  • Unlimited express upload & download
  • Always on
  • Does not need telephone line
  • Economical packages

WorldCall Digital TV:

  • Superior picture quality
  • Crisp and clear stereo sound
  • 60+ channels
  • On-screen channel guide

WorldCall Cable TV:

  • Drama, thriller, action, romance, news & documentaries
  • 80+ analogue channels
  • Satellite & in-house channels
  • Latest movies

WorldCall Video on Demand:

WorldCall is the first to launch True VOD, providing a collection of movies and music over the CATV network in digital quality to end-users to choose from their homes. VOD service is ahead of pay-per-view service by giving rewind/fast-forward/pause capability to the viewer.

  • A cinematic addition to your on-screen entertainment
  • Absolute control with play-back options
  • 600+ hours of uninterrupted fun and excitement

LDI – Long Distance International:

WorldCall has acquired licenses from Pakistan Telecommunication Authority (PTA) for Long Distance & International (LDI) and Wireless Local Loop services (WLL). Long Distance & International (LDI)

  • WorldCall was the first company to start LDI services – November 2004
  • WorldCall provides cost / price effective, quality voice and data solutions for nationwide & international markets catering for both the wholesale and retail segments, tailored to their individual requirements
  • Under the LDI license, the services that can be offered include:
    • International Calls Origination and Termination
    • Nationwide (NWD) Calls Origination and Termination
    • Data & Value-added services like Corporate Solutions, IP telephony, VPN’s etc.
  • WorldCall has deployed state-of-the-art network based on IP technology and NGN (Next Generation Network) architecture with equipment from reputed names like Cisco sytems, Siemens and Nuera.
  • Future proof investment: nationwide long haul infrastructure and access


WorldCall is using Cost-Based approach for pricing in its all business units for all products and services. This approach is most commonly used in a competitive telecom industry. Worldcall Pricing strategy depends upon these factors like:

  • Degree of differentiation in product/service offered
  • Intensity of the competition
  • At the stage in which a product is in Product Life Cycle

Premium pricing:

Worldcall charges premiere pricing because they are using differentiation strategy in all of its business units, but not very high prices. They use this strategy mainly for new products/services on the basis of quality differentiation. When a product is new in the market or competition is low.

Eg:- WorldCall Video-On-Demand

Competitive pricings:

In competitive telecom industry customer switching rates are high worldcall is using competitive pricing strategy in its new worldcall broadband wireless evdo and worldcall wireless to keep up with the competition.


Wireless Broadband:

Activation Charges: Rs 1,299



256 kbps

Rs 1200

512 kbps

Rs 1800

1 Mbps

Rs 2500

Cable Broadband:

Download speed

Old Price

New price


Rs. 1,100

Rs. 700


Rs. 1,400

Rs. 1,000


Rs. 5,100

Rs. 1,500



Rs. 2,000



Rs. 4,000



Rs. 6,000



Rs. 8,000

Digital TV:

Digital TV Packages

Digital TV Packages (For Existing Cable TV Customer)

One Time Connection Charges

Rs.3,500 (Non-refundable)

Monthly Charges (DTV)


Digital TV Packages (For New Cable TV & DTV Customer)

One Time Connection Charges

Rs. 3,500 (Non-refundable)

Monthly Charges (DTV)


Installation Charges (CATV)


Monthly Charges (CATV)

As per described package

Set-up cost is non-refundable. Customer Premises Equipment (Cable Modem/Set Top Box) shall remain company property.

Cable TV:

Permises Type



2nd CATV

3rd CATV

4th CATV
























SFU (single functional unit):- the banglow which size is more than 250 square yards is called SFU.

SFA (single functional apartment):- the banglow which size is less than 250 square yards anda apartment in three floor building is called SFA.

MDU(multi development unit):- the apartment in more than three floor building is called MDU.

Note:In Rs. 800/=, 03 CATV connections are allowed.

Note:Rs. 25/= will be charged every month as infrastructure charges for DHA customers with 1st CATV Connection.

Note:Installation charges Rs. 500/= will be applicable on every 4th CATV connection in SFU

Video On Demand:

Video On Demand Packages

Primary Connection

Monthly Rs.

Quarterly Rs.

Half Yearly Rs.

Yearly Rs.

VOD & Digital Cable TV





Monthly Rate

VOD & Digital Cable TV





Subscription Package

Discount % age in Monthly Subscription




Connection Charges:

Rs. 6,000 (Non-refundable)

Set-up cost is non-refundable. Customer Premises Equipment (Cable Modem/Set Top Box) shall remain company property.


Extensive nationwide distribution network positioned to launch new products as well as service existing ones:

– 50 Offices

– 220 Cities

– 59,000 Points-of-sale

  • Existing relationships with third party distributors to enhance
  • penetration
  • Ability to carry third party products – immense future potential
  • Customer Service Centers
  • World Call has customer care centers in major cities. Some of These centers have the attractive exterior.
  • Franchises
  • Franchises are in the Poor conditions and World Call have no control on franchises


World call is not using intensive promotion strategy they are cutting cost through the low advertising these.


An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for. In fact these are the people who make the differences among organizations.

In case of World Call, People includes

  • Sales Representatives
  • Staff of Customer Care Center
  • Recovery Team
  • For Cable TV and HFC Broadband


Market Share in LDI

WorldCall share is 2,047 Million out 21,983 Million

Broadband Share

Market share of Broadband technologies, WorldCall owns most of HFC share, with strong share in EVDO segment.

WorldCall added highest number of subscribers in May 2010 with a figure of 20,230 additions, its market share increased from 7% to 9%.

“The number of mobile subscribers in Pakistan reached the 100mn mark in September 2010 and is expected to continue its growth momentum due to the relatively low penetration rate. In this quarter, BMI has adjusted our mobile forecasts and forecast 136.078mn subscribers in Pakistan by end-2015, representing a penetration rate of 70.3%.

Pakistan’s broadband subscriber base reached 1.053mn in October 2010, an increase of 63.5% from the 643,892 in December 2009. While DSL remained the main technology used to access broadband services in the country, alternative wireless solutions WiMAX and EV-DO are catching up fast. The number of DSL users grew by 96.5% from 262,661 in June 2009. By contrast,. The popularity of mobile broadband services is likely due to more subscriber figures of WiMAX and EV-DO increased by 246.6% and 708.5% over the same period to reach 306,665 and 181,947 respectively affordable pricing plans bundled with low-cost mobile devices. Moreover, two-thirds of the population reside in rural areas where fixed-line infrastructure remains poor and wireless broadband service therefore becomes an attractive and relatively cheaper method to bring connectivity to the underserved regions.

(Source: BMI)

WLL Market Share in Subscription


Burraq & Wi-tribe

Qtel entered into a regional broadband wireless joint venture with ATCO in march 2007, which evolved as a leading Middle Eastern conglomerate and one of the world’s best leading wireless broadband services providers. This joint venture, floated their brand wi-tribe in the starting of 2008 which is form to create demand and establish WiMAX networks in the Middle East, Asia and Africa. Qtel had 78% stake in this overall venture.

Wi-tribe intends to leverage Qtel’s regional operating experience and multinational footprint, roll out excellent quality networks and services in targeted areas, and develop a strong platform for distribution of broadband content.

In Jordan, wi-tribe has acquired a license in an auction and is getting ready to launch in 2008. The Jordan market has a high potential for the wireless broadband service and wi-tribe is well positioned to capture the growth in this market. In Pakistan, wi-tribe acquired a 75% stake in Burraq Telecom which has licenses for WiMAX as well as international long distance. Pakistan is an exciting market for broadband with very low penetration rates and huge potential for growth.

Burraq Telecom Limited, founded in 2004 is an established operator licensed to offer a full range of telecommunications services across Pakistan, including long distance international and wireless local loop. The company also has associated spectrum at different frequencies. Burraq has recently completed a limited rollout of its Broadband Wireless Access (BWA) network in all of Pakistan’s 14 regions.

Mobilink Infinity & LINKDotNET:

LINKdotNET, the leading Internet Service and Solutions Provider, is a subsidiary of Orascom Telecom Holding Company, the largest integrated telecommunications services provider in the region.

Mobilink GSM, a subsidiary of Orascom Telecom, started its operations in 1994. Newest to the rank of life-changing innovative technologies is Mobilink Infinity, the revolutionary next generation wireless broadband network. Words from Moblink”And it gives us great joy to welcome you to experience Mobilink’s evolution into a total telecommunications solutions provider. This holds great prospects for all our valued customers in terms of value-added services, Internet access, next generation of telephony through Voice over IP and exciting cutting-edge services.”

PTCL & Ufone:

Pakistan Telecommunication Corporation Limited (PTCL) which started to operate in January 2001 under the brand name ‘Ufone’ was wholly owned by Pakistan Telecom Mobile Limited (PTML). After this privatization Ufone became a part of the Emirates Telecommunication Corporation Group (Etisalat) in 2006. PTCL is Direct Competitor with WorldCall in Ptcl EVO Wireless Broadband, Ptcl SmartTV, Ptcl vFone, Ptcl Broadband and LDI. In fact the real cut to cut competition between Worldcall and PTCL is witnessed since many years.

Wateen & Warid:

Wateen Telecomis a Pakistani telecommunication company based inLahore,Pakistanand is a sister concern ofWarid Telecom.

Wateen Telecom is theAbu Dhabi Group’s latest communication investment in Pakistan. With the collaboration of Motorola, they plan on deploying a WiMax country-wide network across Pakistan. After the successful launch of Warid Telecom in Pakistan, which has a subscriber base of over 10 million customers in 145 cities, Wateen Telecom has been set up to become the leading “Carrier’s Carrier” providing services based on quality, reliability and affordability in the communication and media sector. Wateen is committed to bring Next Generation services to your doorstep… today.



NayaTel (Pvt) Ltd. (NTL) is a sister concern of Micronet Broadband (Pvt) Ltd. (MBL), the premier and leading DSL broadband service provider in Islamabad and Rawalpindi. Leveraging its rich expertise and experience of broadband, MBL team conceived the idea of a most modern telecom network which can take care of ever growing telecommunication needs of customers and have the capability to cater for telecommunication requirements of at least next three decades. The idea was transformed into reality when NTL launched South Asia’s first fiber to the home (FTTH) in Islamabad in September 2006. This real triple play project is unique in its nature as it serves complex networking needs of mission critical businesses yet so simple that it has become a symbol of prestige for quality conscious home users. Covering over 90% areas of Islamabad and business areas of Rawalpindi Cantonment, Nayatel’s network offers ultra broadband Internet, modern telephony and digital video services to business and home users.

Fiber-to-the-User is 21st century architecture for delivering multiple services (Voice, Video and Data) to the customer premises. This technology involves laying down fiber optic cable from the carrier’s facilities to the customer premises. With the ever-decreasing price of Fiber Optic and the rising cost of copper, use of copper cables worldwide is on the decrease. Fiber Optic cables have near-unlimited capacity for carrying data at speeds not supported by Copper media.

Financial Analysis

Key performance indicators




Net Profit After Tax (NPAT)

-1,147 Million

-491 Million

Depreciation and Amortization

6,143 Million

4,584 Million


Gross Profit Margin % [(Gross Profit ÷ Net Sales)]



Net Profit Margin % [(NPAT ÷ Net Sales)]



Debt Coverage (Times) [(NPAT + Depr.) ÷ (LTD + Interest)]



Interest Coverage (Times) [(Net Operating Profit ÷ Interest Exp)]



Current Ratio [(Current Assets ÷ Current Liabilities)]

0.75 : 1

0.80 : 1

Quick Ratio [(Current Assets-Invt.)÷Curr. Liab.]

0.40 : 1

0.74 : 1

Debt To Equity Ratio [( LTD ÷ (LTD + Equity) ] * 100]

0.46 : 1

0.47 : 1

Cash Ratio [cash ÷ current liabilities ]

0.02 : 1

0.06 : 1

Working Capital [ Current Assets – Current Liabilities ]

(4,803 Million)

(1,167 Million)

Inventory Days [(Inventory ÷ COGS) x 365]

11 days

8 days

Inventory Turnover [(Sales ÷ Inventory)]

38.69 times

46.17 times

Payable Turnover [(Sales ÷ Trade Creditors)]

1.61 times

3.75 times

Receivable Turnover [(Sales ÷ Trade Debtors)]

3.70 times

3.97 times

Return On Equity % [(NPAT ÷ Net Worth )]



Return On Assets % [(NPAT ÷ Total Assets)]



Receivable (Days) [(Trade Debts ÷ Net Sales) x 365]

99 days

92 days

Payable (Days) [(Trade Creditors ÷ Net Sales) x 365]

226 days

98 days

EPS [(NPAT) ÷ No. Of Shares Outstanding]



Cash Flow Statement

Cash Flow from Operating Activities

1,489 Million

1,535 Million

Cash Flow from Investing Activities

-1,206 Million

-1,889 Million

Cash Flow from Financing Activities

-434 Million

126 Million


Current Ratio

[(Current Assets ÷ Current Liabilities)]

0.75 : 1

0.80 : 1

It tells us that current liabilities could be 75% paid off through current assets.

Quick Ratio

[(Current Assets-Inventory)÷Current Liabilities]

0.40 : 1

0.74 : 1

It tells us that current liabilities could be 40% paid off through Quick Liquidatable Assets.

Cash Liquidity Ratio

[ cash ÷ current liabilities ]

0.02 : 1

0.06 : 1

It tells us that current liabilities could be 2% paid off through Cash

Inventory Days

[(Inventory ÷ COGS) x 365]

11 days

8 days

Inventory sold out period is increased to 11 days from 8 days last year.

Receivable (Days)

[(Trade Debts ÷ Net Sales) x 365]

99 days

92 days

Average Collection Period is increased by 7 days.

Payable (Days)

[(Trade Creditors ÷ Net Sales) x 365]

226 days

98 days

Average payable period is increased by 128 days.


Inventory Turnover [(Sales ÷ Inventory)]

38.69 times

46.17 times

It tells us how World call manages its inventories.

Receivable Turnover [(Sales ÷ Trade Debtors)]

3.70 times

3.97 times

It tells us the collection pattern of the World Call.

Payable Turnover [(Sales ÷ Trade Creditors)]

1.61 times

3.75 times

It tells us the firm’s pattern of payment to suppliers.

Leverage Ratios:

Debt Coverage (Times)

[(NPAT + Depr.) ÷ (CMLTD + Interest)]



It tells us how many times Current Maturing Long-term Debt could be paid off through current earnings.

Interest Coverage (Times)

[(Net Operating Profit ÷ Interest Exp)]



It tells us how many times interest can be paid through Operating Profit.

Debt To Equity Ratio

[( LTD ÷ (LTD + Equity) ] * 100]

0.46 : 1

0.47 : 1

World call maintain his debt to equity ratio almost constant as last year.


Gross Profit Margin %

[(Gross Profit ÷ Net Sales)]



It tells us the ability of the World Call to control cost of goods sold which might be occur through increase in prices. The GP Margin is decreased by 4.42% last year.

Net Profit Margin % [(NPAT ÷ Net Sales)]



Tells us profitability after consideration o all revenue and expense, including interest, taxes and non-operating items. it decrease by 9.32% last year.

Return On Equity % [(NPAT ÷ Net Worth )]



Tells us the rate of return on Stockholder’s Investment.

(ROI) Return On Assets %

[(NPAT ÷ Total Assets)]



Tells us the efficiency in managing investment in assets in order to generating profits.


[(NPAT) ÷ No. Of Shares Outstanding]



Tells the earning per common share.

Financial Overview:

The year remained somewhat dismal on the front of financial performance. The Company was not able to sustain the revenue levels which it achieved last year. Primarily the fall came due to decline in international termination, delay in roll outs and tariff adjustments in response to price wars. The LDI segment of the Company remained under pressure due to lower APC (Access Promotion Contribution) charges and termination rate instability. The price cuts forced due to the gravity of competition and lower traffic volumes adversely impacted the revenue lines. The depleting margins aggravated the position as the cost of operations continuously soared on account of macro-economic instability, energy crises, and inflationary trends prevailing in the economy. The decline of international segment was partly compensated as the Company strengthened its position in the data and EVDO segment. However the desired targets in these segments too could not be materialized due to delay in expansion and upgrade plans.

The Company posted revenue of Rs 7,464 million which was 11% lower than the last year total. Despite all endeavors of cost rationalization on the part of management, the direct and operating costs remained high on account of heavy depreciation charges, network maintenance expenses and rising cost of doing business. The decline in revenue together with higher cost levels translated to operating loss of Rs 762 million. The finance cost also showed 42% increase due to exposure to high cost borrowings. Fall in the overall revenue together with high levels of costs led to closure of period with net loss of Rs 1,147 million.

Another thing came as the Company closed TFC-III redemption worth Rs 817 million in Oct 2010. Subsequent to that, redemption of Rs. 71 million against TFC-II was also accomplished. These hefty payoffs nevertheless led to accumulation of some other liabilities on the balance sheet, but honoring of such heavy commitments to financial institutions in time can be seen as a good gesture, which leads a company to have loss for the period.

On the other hand, the mitigation of hefty liabilities will not only ease the finance cost burden but would also spare resources for productive usage in turn leading to further enhancement in the cash generating ability of the Company. The decline in debt servicing costs will also improve the profitability in the years ahead.

Performance Overview:

The EVDO expansion project was also successfully conducted during the year and the presence in seven major cities across the country was effectively accomplished. To support the scale of operations and to meet the customer requirement for fast and reliable services, the Company increased number of sites and upgraded the existing sites as well.

The first phase of funding comprising term facility of US $35 million against corporate guarantee of Omantel has been successfully accomplished subsequent to year end. All procedural requirements in this regard have been successfully complied with.

Problem Section

Main Problems according to Management:

  • Omantel has totally changed system of management for the company.
  • Reducing of advertisements expense due to pressure of cost cutting.
  • Same reasons for not having large Marketing staff.
  • Omantel emphasizing on ERP
  • The delay in process of initiating an ERP.
  • ERP is time-consuming process.
  • New Managers are involved into current issues of the company.
  • Previously they were multiple companies now all of the accounts have been reorganized and similar accounts have to be merged.

Main Problems according to our Analysis:

  • Giving unusual importance to LDI from very beginning.
  • Branding and Positioning not done through proper process.
  • Very weak franchising strategies.
  • Franchises strength missing.
  • Heavily lacking Long term strategies.
  • We observe lack of coordination between different Departments.
  • Lack of use of BCG MATRIX for their product portfolio.
  • Market Penetration was earlier used in Voice segment but now being avoided.
  • Complains by customers due to conflict in network capacity and after sale services.
  • Loosing potential buyers due to less Advertising.
  • Less Promotional strategies and sales staff.
  • No ERP, inappropriate CRM and Professional Accounting Software.
  • Omantel is not involving low level staff in business matters.

Strategic Alternatives:-

Solutions to solve the problems:

  • The change process must be moved top to down gradually by Omantel.
  • Every level of Management must be involved in the change process.
  • Delays in ERP (SAP) must be overcome by WC, by diverting their focus on ERP implementation on preference basis.
  • Business Process Reengineering is preferable solution to WC over all problems.
  • Using of BCG MATRIX is very important for WC to understand their DOG and STAR products.
  • Branding and positioning must be revised for many segments.
  • Customer complaints and customer churn rate can be reduced by sensible installing of networks and sales.
  • The whole experience of the customer from the first interaction at the touch point to the consistent usage of the service will be enriched.
  • Co-ordination between many Departments must be improved as soon as possible.
  • Omantel is coming up with Fresh Long term plans which are a good sign; well it is highly needed and must be implemented with unanimous agreement.
  • The avoidance of market penetration will not benefit WC in long run, thus WC must behave more Competitive.
  • WC must buy professional software.
  • First of all, franchising strength must be increased all over the country, and then Franchises must be made more modern and must be made more productive in reference to services and sale.
  • Omantel must refrain from such act which creates a perception of job insecurity between the employees.
  • WC having very strong physical network, the only need is timely maintenance and proper resource utilization.
  • The planned network upgrades and expansions will ensure delivery of seamless, high quality and reliable services to end users
  • The process of creating awareness about the Company’s portfolio and building an image of reliability and quality will also be addressed with a keen vision.

Financial Measures

The whole Financial Projection for Worldcall is out of the scope of this report. But we suggest some important measures that World Call should take in order to cope up with the current loss scenario.

  • Sales should be increased with the rapidly increase in subscribers which results in increase in ARPU (Average Revenue per User).
  • Cut down Direct Costs as well as Operating Costs.
  • Long-term Debt should be paid as soon as possible, which results in heavy financial cost.
  • Manage Cash in that manner so Working Capital should become positive.

Implementation plan

The implementation plan is discussed and suggested according to different segments of the company:-


Pakistan continued its decline on BMI’s Business Environment Ratings for the Asia-Pacific region. Although the country scored relatively well on the Industry Rewards and Risks segment, we note the country faces significant downside pressure on the macroeconomic front. While we upgraded the country’s headline growth forecast figure to 1.5% for FY2010/11.”

(Source: BMI)


WorldCall is a competent telecom company in Pakistan with huge infrastructure and backed by strong parent company Omantel. It has strong potential to compete and grow as a leading diverse telecom company. We have gone through thorough analysis of WorldCall and studied almost every aspect of the company; we have recommended strategies, solutions to major problems faced by WorldCall. We also provided three year implementation plan that represent a clear growth strategy for WorldCall.

Did you like this example?

Cite this page

The oman telecommunication company. (2017, Jun 26). Retrieved June 6, 2023 , from

Save time with Studydriver!

Get in touch with our top writers for a non-plagiarized essays written to satisfy your needs

Get custom essay

Stuck on ideas? Struggling with a concept?

A professional writer will make a clear, mistake-free paper for you!

Get help with your assigment
Leave your email and we will send a sample to you.
Stop wasting your time searching for samples!
You can find a skilled professional who can write any paper for you.
Get unique paper

I'm Chatbot Amy :)

I can help you save hours on your homework. Let's start by finding a writer.

Find Writer