TELECOM
Telenor, the Nordic region’s largest phone company, is tapping its big data in Pakistan to help consumer-focused brands modernise their marketing drives, said its top official, indicating that the second biggest cellular mobile operator in the country was trying to get over operating expense challenges through expansion into non-core activities.
“Our philosophy is to go beyond delivering mega and gigabytes,” Irfan Wahab Khan, deputy chief executive officer and chief marketing officer at Telenor Pakistan, said in an interview. “Earlier telcos were delivering just connectivity.
We have a competitive advantage in data analytics. We are delivering moments.”
EasyPaisa, a Telenor payment solution, handles millions of transactions every month. “Because of mapping the money corridor, we know when there is an uptrend at a particular time in a month,” Khan said. “Companies can target customers at that time.”
The Telenor official didn’t disclose the size of investment into what he said in-house arrangement for data analytics. But, he said, “the investment is huge.” The company earmarked $70 million to set up its new headquarter in Islamabad. This shows how generously the operator is moving to maintain its market position.
Contextual marketing, he said, is another area where brands are using Telenor’s data resources to deliver messages when a target customer is roaming around a shopping mall, for instance.
The telecom operator, with 36 million subscribers, is planning to unveil an onboard diagnostic device to help the user remotely monitor the performance of a vehicle. The big data tools are being used world over for predictive analytics. In Pakistan where telecom companies are handling tons of personal data of customers on daily basis, the data analytics are slowly gaining traction.
Telenor’s entry into this space must encourage other players to capitalise on their data.
“We are fine-tuning our model at our centre of excellence,” Khan said. “Infrastructure is important. Now it is time to build services.”
Telenor Pakistan has the most number of 3G sites, accounting for 32 percent of Pakistan’s entire 3G broadband landscape. The company will take this tally to 7,000 by this yearend.
Telenor Pakistan is also introducing 3G devices as it knows that millions of handheld devices in the country are not internet-enabled. A wrist watch is one such gadget, powered by the modern concept of internet of things. Especially designed for school-going kids, the gadget keeps their connection with parents intact.
Khan denied the impression that voice and data services are expensive in the country. “They are one of the cheapest in the world,” he said. “Compare tariffs with Nigeria or some other countries and you will see how cheap services are in Pakistan,” he added.
Furthermore, the telco is capitalising on a massive adult population in the country.
Its digital distribution platform is promoting online retailing of goods and services as well as upselling. Likewise, Telenor app store gives local developers an opportunity to sell their products and earn money.
Telenor’s executive said electronic commerce is at its infant stage. “Ecommerce will be a $10 billion market in the next five years,” Khan said. “Our recently launched escrow service is to build the confidence of shoppers on the online payment channel.” The escrow service holds payment of a shopper until the product is shipped.
The operator is also running its agri app on pilot basis in a few districts of central Punjab.
“We have partnered with agri experts to educate farmers, providing them information to increase yields,” Khan said.
Telenor’s accelerator and internal entrepreneurship initiatives are promoting startups. Its accelerator provides matured ideas with a platform to scale up.
Those, which have close links with the Telenor business, are offered the facilities to work on their projects. The company has more than 3,000 employees.
The company’s official said opportunities are humongous in Pakistan. He named education and health as sectors where technology can bring about a revolution. A digital ecosystem is, however, yet to be developed.
On tariff slab proposal by the Pakistan Telecommunication Authority, the executive said the regulator should look at the overall health of the industry. He said cross-subsidised practices should be curbed. Fair competition should be promoted.
Khan said companies, which have invested multibillion dollars, have to get over the challenges.
He said there is a growth in top line, but bottom line is hurt by high cost of doing business. Operating costs, he added, are power and security, while taxes are also high.
There are 40 percent taxes on devices. They should be cut to improve affordability.
High spectrum fee, Khan said, is another barrier.
Investments will be made aggressively and economic contributions will increase if unused spectrum is used and the government cuts licence fees, he added.
Telenor official believes that illiteracy is not a barrier to tech adoption, citing examples of illiterate people who are using mobile applications and advanced phone features. He said mobile technology is bringing social and economic transformation.
The writer is a staff member
