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Oman Telecommunication Company

Info: 5359 words (21 pages) Dissertation
Published: 6th Dec 2019

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Tagged: Management


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.

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 WorldCall.com.

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

Location of Head Office

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:

Ø High Government restrictions or legislation

Ø Telecom licenses, rights, regional licenses

Ø Expected Mergers and Acquisitions

Ø High fixed costs

Ø High Capital requirements

Ø 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:

Ø High availability of substitute inputs

Ø Competitive suppliers of telecom equipment

Ø 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.

Ø Switching to another product is simple

Ø Customers are price sensitive

Ø Consumers have high product knowledge

Ø Switching costs are low

Ø 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.

Ø Companies can only grow by stealing market share away from competitors.

Ø Telecom industry with a very high growth.

Ø 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

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