Yasmin Malik welcomes the move towards handset-centric marketing by Pakistan’s telecoms.
I am seriously thinking of getting ‘smart’. A smartphone that is. And the recent change in strategy among Pakistani telecoms has made me give some thought to local options. It appears that our MNOs have taken some steps away from the long drawn out price wars they were entrenched in for many years and are putting into practice a visible strategy that incorporates a more handset-centric marketing approach to their services.
Handset-operator collaboration has been a standard practice in many western markets where post-paid and many prepaid connections come hand-in-hand with selected mobile phones.
In many cases, the main incentive for taking up a connection with an operator is the choice of handset offered.
The force with which a given handset can dominate or even direct the telecoms market was undeniably evident with the launch of Apple’s iPhone and associated ‘App Store’ in 2007 in the US in collaboration with Verizon. Initially, operators such as Verizon in the US and O2 in the UK had exclusivity with respect to iPhone offerings, meaning that if you wanted an iPhone in either market, the choice of operator had to be Verizon or O2.
In 2009, however, Apple’s regional exclusivity contracts expired and other operators were able to offer the iPhone as well. At the same time, the worldwide telecoms market witnessed another driving force in the shape of Android phones which did not only make an entry into the market, but seemed to inundate it, as Android became the mobile operating system of choice for handset manufacturers including HTC, Motorola, Samsung and Sony Ericsson.
Recent worldwide smartphone sales figures published by Gartner show that Android has outperformed the Apple’s iOS. In 3Q 2009, the iOS (and hence the iPhone) had a 17.1% share in the market while Android stood at 3.5% – a year later iOS stood at 16.7% while Android had overtaken it capturing a market share of 25.5%. Symbian (Nokia-based), however, still leads the market with a share of 36.6%, according to Gartner.
Emulating this strategy of handset-centric sales, 3Q 2010 in Pakistan saw a visible drive by leading MNOs to couple post-paid/prepaid connection sales with associated handsets. The most prominent of these was the introduction of the Nokia N8 and C3 smartphones by Ufone. Noteworthy from the outset as Nokia has not made a similar collaboration in the Pakistani market before in this manner.
The true origins of handset-centric marketing in Pakistan can be traced to Mobilink. It was the first to introduce smartphones with its exclusive launch of BlackBerry handsets and associated BIS/BES (BlackBerry Internet/Enterprise Service) in 2005. The company has kept to its long standing strategy to have a first-mover advantage with the recent introduction of Pakistan’s first Windows Mobile 7 OS-based smartphone – the HTC HD7.
Wasif Mustafa, Director Value Added Services, IR and Geo-Segmentation, Mobilink, elaborates on what the main business objective of Mobilink was in adopting a handset-centric strategy in 2005 and how the handset-operator market has changed since Mobilink’s BlackBerry service launch.
“As the market leader that aims to stay abreast of technology trends, we wanted to be the first to bring the latest and the best in technology to our customers. There were, however, also several more important factors at play.
In 2005, we felt the market was ready for a smartphone – the Indigo family had entrepreneurs, businessmen and high profile corporate individuals, all of whom wanted a full suite of productivity enhancement applications, including wireless access to email, phone, text messaging, organiser and mobile internet. We recognised that need. Today, non-corporate individuals, celebrities, housewives and even students sport a BlackBerry. The market has evolved and the exponential growth in subscribers, growing awareness, the evolution of the internet that has heightened the dependency on data, and a host of applications available on the handset are making users consider owning a smartphone. Today, the need to be ‘connected’ on the go drives the market more than ever before.”
Does the recent introduction of competitor handset-centric and mobile internet-based packages affect Mobilink’s positioning in the market with respect to handset offerings and choices for the mobile subscriber? Mustafa explains:
“The evolution is natural and more choices mean more power to the customers. Keeping this in mind, Mobilink has the widest portfolio in the market not only in terms of the range of BlackBerry handhelds locally but also through introducing new technologies including Android and the tablet.”
The struggling Windows Mobile 7 platform has recently (February 2011) received a vote of confidence with Nokia’s intention to shift its focus from the long established Symbian OS to Windows 7 with all new smartphones that will be offered by Nokia over the next five years. Although Mobilink introduced the latest Windows 7 phone into the local market prior to Nokia’s Windows 7 alliance announcement, it is pertinent to ask why Mobilink chose to do so at a time when Windows 7 was still in the process of gaining market share over stronger rivals such as the Android, iOS and Symbian platforms.
Mustafa counters: “Windows Phone 7 powered HTC HD7 is one of the many exciting smartphone options we wanted to offer to our customers. So although we stand by our flagship BlackBerry offerings, we wanted to provide choices to customers who wanted to opt for a smartphone of some other flavour. Overall we have received a very encouraging response from each one of our smartphone launches and are satisfied with the results on all factors.”
Mustafa is confident too about the effects of competitor strategy (including rival BlackBerry service by Warid) on its own BlackBerry service:
“As far as the BlackBerry business is concerned, we continue to be Pakistan’s leading BlackBerry service provider offering superior technical expertise along with unmatched 360-degree after-sales support to the customers which is our distinct advantage. We are the only operator in Pakistan which works directly with RIM. Our customers recognise and appreciate this advantage, and hence our BlackBerry phones business continues to be healthy and growing.”
The company has made a concerted effort to focus its handset-centric strategy not only on its expected portfolio of Indigo customers but is also catering to its strong prepaid base especially as other operators like Zong have made a strong offering to the low-to-medium end handset market:
“All smartphones launched by Mobilink other than the BlackBerry are available to both prepaid and post-paid customers. Moreover, we have recently launched the Motorola Flip Out which is a medium end handset under the Jazz Jazba platform. As the pioneers of handset-centric marketing, we have a long term strategy to continue to evolve this portfolio and cater to a variety of niches in the market.”
The underlying gain in introducing handset-centric strategies is to benefit from the resultant mobile internet usage that subscribers are likely to engage in. Every handset-centric package offered in the last few months has been coupled with mobile internet/GPRS-based bundles giving an incentive to new customers especially to move towards more data-centric usage patterns. At the moment, Pakistan’s mobile subscriber base is one in which only five percent are significant users of GPRS/EDGE services and it will be a test for all MNOs to see if their new focus on smartphones will give the expected and much needed alternative of data-driven revenue streams.
Yasmin Malik is associated with the UK’s Informa Telecoms & Media. yasminmalik1@yahoo.com
First published in the May-June 2011 issue of Aurora.
From BlackBerry to Galaxy: Mobilink is the pioneer of handset-centric marketing in Pakistan.
I am seriously thinking of getting ‘smart’. A smartphone that is. And the recent change in strategy among Pakistani telecoms has made me give some thought to local options. It appears that our MNOs have taken some steps away from the long drawn out price wars they were entrenched in for many years and are putting into practice a visible strategy that incorporates a more handset-centric marketing approach to their services.
Handset-operator collaboration has been a standard practice in many western markets where post-paid and many prepaid connections come hand-in-hand with selected mobile phones.
In many cases, the main incentive for taking up a connection with an operator is the choice of handset offered.
The force with which a given handset can dominate or even direct the telecoms market was undeniably evident with the launch of Apple’s iPhone and associated ‘App Store’ in 2007 in the US in collaboration with Verizon. Initially, operators such as Verizon in the US and O2 in the UK had exclusivity with respect to iPhone offerings, meaning that if you wanted an iPhone in either market, the choice of operator had to be Verizon or O2.
In 2009, however, Apple’s regional exclusivity contracts expired and other operators were able to offer the iPhone as well. At the same time, the worldwide telecoms market witnessed another driving force in the shape of Android phones which did not only make an entry into the market, but seemed to inundate it, as Android became the mobile operating system of choice for handset manufacturers including HTC, Motorola, Samsung and Sony Ericsson.
Recent worldwide smartphone sales figures published by Gartner show that Android has outperformed the Apple’s iOS. In 3Q 2009, the iOS (and hence the iPhone) had a 17.1% share in the market while Android stood at 3.5% – a year later iOS stood at 16.7% while Android had overtaken it capturing a market share of 25.5%. Symbian (Nokia-based), however, still leads the market with a share of 36.6%, according to Gartner.
Emulating this strategy of handset-centric sales, 3Q 2010 in Pakistan saw a visible drive by leading MNOs to couple post-paid/prepaid connection sales with associated handsets. The most prominent of these was the introduction of the Nokia N8 and C3 smartphones by Ufone. Noteworthy from the outset as Nokia has not made a similar collaboration in the Pakistani market before in this manner.
The true origins of handset-centric marketing in Pakistan can be traced to Mobilink. It was the first to introduce smartphones with its exclusive launch of BlackBerry handsets and associated BIS/BES (BlackBerry Internet/Enterprise Service) in 2005. The company has kept to its long standing strategy to have a first-mover advantage with the recent introduction of Pakistan’s first Windows Mobile 7 OS-based smartphone – the HTC HD7.
Wasif Mustafa, Director Value Added Services, IR and Geo-Segmentation, Mobilink, elaborates on what the main business objective of Mobilink was in adopting a handset-centric strategy in 2005 and how the handset-operator market has changed since Mobilink’s BlackBerry service launch.
“As the market leader that aims to stay abreast of technology trends, we wanted to be the first to bring the latest and the best in technology to our customers. There were, however, also several more important factors at play.
In 2005, we felt the market was ready for a smartphone – the Indigo family had entrepreneurs, businessmen and high profile corporate individuals, all of whom wanted a full suite of productivity enhancement applications, including wireless access to email, phone, text messaging, organiser and mobile internet. We recognised that need. Today, non-corporate individuals, celebrities, housewives and even students sport a BlackBerry. The market has evolved and the exponential growth in subscribers, growing awareness, the evolution of the internet that has heightened the dependency on data, and a host of applications available on the handset are making users consider owning a smartphone. Today, the need to be ‘connected’ on the go drives the market more than ever before.”
Does the recent introduction of competitor handset-centric and mobile internet-based packages affect Mobilink’s positioning in the market with respect to handset offerings and choices for the mobile subscriber? Mustafa explains:
“The evolution is natural and more choices mean more power to the customers. Keeping this in mind, Mobilink has the widest portfolio in the market not only in terms of the range of BlackBerry handhelds locally but also through introducing new technologies including Android and the tablet.”
The struggling Windows Mobile 7 platform has recently (February 2011) received a vote of confidence with Nokia’s intention to shift its focus from the long established Symbian OS to Windows 7 with all new smartphones that will be offered by Nokia over the next five years. Although Mobilink introduced the latest Windows 7 phone into the local market prior to Nokia’s Windows 7 alliance announcement, it is pertinent to ask why Mobilink chose to do so at a time when Windows 7 was still in the process of gaining market share over stronger rivals such as the Android, iOS and Symbian platforms.
Mustafa counters: “Windows Phone 7 powered HTC HD7 is one of the many exciting smartphone options we wanted to offer to our customers. So although we stand by our flagship BlackBerry offerings, we wanted to provide choices to customers who wanted to opt for a smartphone of some other flavour. Overall we have received a very encouraging response from each one of our smartphone launches and are satisfied with the results on all factors.”
Mustafa is confident too about the effects of competitor strategy (including rival BlackBerry service by Warid) on its own BlackBerry service:
“As far as the BlackBerry business is concerned, we continue to be Pakistan’s leading BlackBerry service provider offering superior technical expertise along with unmatched 360-degree after-sales support to the customers which is our distinct advantage. We are the only operator in Pakistan which works directly with RIM. Our customers recognise and appreciate this advantage, and hence our BlackBerry phones business continues to be healthy and growing.”
The company has made a concerted effort to focus its handset-centric strategy not only on its expected portfolio of Indigo customers but is also catering to its strong prepaid base especially as other operators like Zong have made a strong offering to the low-to-medium end handset market:
“All smartphones launched by Mobilink other than the BlackBerry are available to both prepaid and post-paid customers. Moreover, we have recently launched the Motorola Flip Out which is a medium end handset under the Jazz Jazba platform. As the pioneers of handset-centric marketing, we have a long term strategy to continue to evolve this portfolio and cater to a variety of niches in the market.”
The underlying gain in introducing handset-centric strategies is to benefit from the resultant mobile internet usage that subscribers are likely to engage in. Every handset-centric package offered in the last few months has been coupled with mobile internet/GPRS-based bundles giving an incentive to new customers especially to move towards more data-centric usage patterns. At the moment, Pakistan’s mobile subscriber base is one in which only five percent are significant users of GPRS/EDGE services and it will be a test for all MNOs to see if their new focus on smartphones will give the expected and much needed alternative of data-driven revenue streams.
Yasmin Malik is associated with the UK’s Informa Telecoms & Media. yasminmalik1@yahoo.com
First published in the May-June 2011 issue of Aurora.




















