Mobilink New

8/8/2019 Mobilink New

1/21


2/21

Submitted By:-

International Call Costing

Saima Ameer Ali


3/21

Acknowledgement

Overview of the Industry

Potential

Key Indicators

The Reality of Cost

Cost Breakers

Qualitative Factors of Cost Components

Material Availability

Labor Availability

Possibilities of Capacity Building Factory Overheads

Quantitative Factors of Cost Components

Conclusion/Recommendations


4/21

Company Overview:

y Mobilink Telecom Co., Ltd. develops and manufacturescellular phone components and accessories in South Korea.

Its products include earphone, microphone cable,Bluetooth headset, sliding hinge, and folder hinges. Thecompany also provides research and development servicesfor cellular phone manufacturers. In addition, itmanufactures Internet protocol television with technical

license from Park DCS, Inc. The company, formerly knownas Samil Infomine, Inc., was founded in 1988 and isheadquartered in Seongnam-City, SOUTH KOREA


5/21

Foremost, to Almighty Allah who blessed us with strengthand ability to complete the presentation on time. Further

we would like to appreciate the valuable contribution ofour course instructors, Sir Raza Ali

We are also thankful to Mr. Rehman Abbasi (DirectorMarketing South-Mobilink) and Mr. Khush Shah (Asst.Co

ordinator Markerting Dept.South-Mobilink) for sharingtheir experiences and views related to their organizationand its practices


6/21

y First Quarter 2010 results are in and I thought it wouldbe interesting to compare the results from the twotelecom giantsMobilink and Telenor. It would be

very interesting to see how the competition shapes upduring the rest of 2010.

y Subscriptions

y Mobilink subscriber base increased by 11.8%, closing at

31.6 million at the end of Q1 2010.y Telenor had 778k net subscriber growth with total at

23.3 million at the end of Q1 2010.


7/21

y Earnings

y Mobilink EBITDA reached PKR 9 billion, representing anincrease of 20% over the same period last year and ref lecting anEBITDA margin of 38.9% versus 35.8% in Q1 2009. Mobilinkclosed the first quarter of 2010 with revenues of PKR 23.1 billion

showing a year over year increase of 10.5%.y Telenor had higher revenues and reported improved EBITDA

margin (28%) and slight increase in ARPU (1%).y Investment

y Mobilink has announced plans to invest over $250 million in the

country in 2010 which brings its total investment in Pakistan toover $3.5 billion.y Telenor report mentioned that Capital expenditures continued

to be aligned with current development in subscription base andtraffic volumes.


8/21

Telecom industry is growing in Pakistan, with new companiesgetting license the competition is tough as a result the consumeris getting benefit and enjoying cheap call rates locally as well

as internationally. With a population of 15 million country,telecom is one of the best revenue generated industry. As voiceover IP, web conferencing and online video sessions are

becoming popular these companies have bright future ahead.


9/21

Cellular Service Provider Market share

y MOBILINK 37%

y U FONE 21

y TELENOR 20y WARID 17

y ZONG 3


10/21

y SERVICES:y Strength Of Mobilink

Only cellular service in Pakistan to provide coverage on the M2motorway. Pioneer in GSM service in Pakistan.

Number of customers is more as compare to any other mobile serviceprovider in Pakistan. Highest market share not only in terms of number of subscribers butalso in terms of revenue. Mobilink has signed bilateral roaming agreements with 50 operatorsaround the world to have true roaming service operational in over 42countries of the world.

In order to facilitate its international Roaming subscribers traveling toUSA and Canada, Mobilink is offering Motorola Timeport Triband (TT)handsets on rental basis. These sets are available at all Mobilink'sCustomer Service centers.


11/21

y Mobilink's short message service center allows VehicleTracking and Fleet (VTF) Management services. Large number of corporate customers.

Economy of scale. Mobilink and Muslim Commercial Bank have made acombined effort in order to maximize the ease and thesatisfaction of their respective customers by offeringthem all banking services from their very own mobilehandset.


12/21

y Opportunities Of Mobilink Before start of new companies can target as manynew customers as they can.

Can lower prices to make business difficult for newcompanies. Mobilink is completing field-testing and certificationof its General Packet Radio Service (GPRS) products;targeted to a market that delivers Internet Protocolpacket services to over 650 million GSM subscribers.


13/21

y You have to pay Refundable Security Deposit / CreditLimit only.

You will pay a sum total of Rs.20,000 including deposit

already made to acquire your Mobilink connection.Therefore, if your existing Security Deposit amounts toRs.5,000, an additional Rs.15,000 will have to be paid.This will also set your Credit Limit for your usage while

you are traveling. Since bill payment while roaming inanother country will not be possible, we suggestmaking a deposit that matches your expected usage.


14/21

y Gate wayy Linked with Pakistan telecom authority, controls all

international calls (ingoing, outgoing)

y

Basic function of gateway is to provide security to thecalls

y Pakistan government tax


15/21

y Direct Labor is one which are hired by Company Agencyand they are ordered by Top level Management to operateInternational Calls


16/21

y Gateway charges

Rs. 12/min

y Pakistan government taxes

4.68/min


17/21

y 18% OF total production

y i.e Rs. 4.32

y ELECTRICITY

y GENERATOR

y LABOR

y FUELy MAINTANANCE


18/21

Cost Rs.

Direct material 16.68

Direct labor 2.4

FOH (18% of total production) 4.32

Total cost 23.4


19/21

y Total cost +profit = selling price" ( 2.5% of total cost price = profit)

y (2.5% x 23.4) = Rs. 0.58 /call

y

23.4+0.58=24y Rate per call=RS.24


20/21

y They should low the call rates to gain maximumcustomers.

y They should make new advertisements so that people

could at track to them.y They should provide good services to their customers.

y And packages should be very good.


21/21

Mobilink New

Documents