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 U fone 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.

Strengths
 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 u
fone.
 U fone 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.
 U fone 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 U fone.
 Ufone has a subscriber base of 18.97 million as of October 2008.
 U fone was the first cellular Company in Pakistan that introduced the service of
GPRS and hence took the competitive advantage.
 U fone 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.
 U fone 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”, “ U fone 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.
 U fone post paid is also offering black berry set that is useful and tempting for the
Business class.
 U fone 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
 U fone 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.
 U fone also face problems and its network get jammed on special occasions like
Eid, Christmas, New year etc
 U fone 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.
 U fone though has some unique and distinct services but it has not yet given
many innovative services as compared to other cellular companies.
 U fone 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 U fone 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 U fone 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.
 U fone 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
 U fone 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 U fone 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 “ U fone 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.
 U fone 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 U fone can take
advantage of this demographic situation and should introduce more and more
services and packages that attracts youth towards it.
 U fone 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 U
fone 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 U fone enhance its voice quality then definitely it would be prefer more by
customers.
 U fone 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.
 U fone 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 U fone 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.
 U fone 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.
 U fone 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.