Telenor Group, based in Norway, experienced a stagnating increase in average revenue per user (ARPU) at its 11 subsidiary cellular networks in Europe and Asia. Buying GSM which permitted expanding to new markets was now too pricey. Having favored Telenor Pakistan with more than $1.2 billion of capital expenditure, it was now notably in need of substantial gains from this wholly owned subsidiary. Given this context, Telenor Pakistan and many other subsidiaries were directed to explore diversification avenues. They sought a self-subsisting "growth story." In the case, we follow how the VP Strategy at Telenor Pakistan presented mobile financial services for the "unbanked" as the way forward. However, at the decision point in the case (March 2008), the central bank of Pakistan had sanctioned just a particular set of business models from which the telecommunications company (telco) had to pick one, if it absolutely was to supply mobile financial services. A fundamental constraint was that the enterprise should be "unbanked." There were already various innovative mobile fiscal service models for example SMART Money in the Philippines and Vodafones' M-PESA in Kenya, in other emerging markets which were making headlines. The VP Strategy at Telenor Pakistan had to prepare a presentation to the Board of Directors regarding how to carry on.
This is just an excerpt. This case is about STRATEGY & EXECUTION
PUBLICATION DATE: January 01, 2014 PRODUCT #: NA0272-PDF-ENG
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