Telenor Pakistan and ZTE: One Goal One Team

Telenor Pakistan announced nationwide network upgrade and expansion in 2012. It is the most comprehensive network swapover in all of the Telenor Group. Both the TP Vega swap and managed services projects turned out to be a big success. Reporter Pan Xiaolin interviewed Khurrum Ashfaque, CTO of Telenor Pakistan, who talked about the projects and their cooperation with ZTE. 

Q: Telenor Pakistan announced nationwide network upgrade and expansion in 2012. At that time, there were several vendors competing for the project. Why did Telenor Pakistan select ZTE as its partner?

A: Initially we launched our GSM network in 2005 and the infrastructure was built in three or four years. By 2012, our network was already very old. So we thought it was the right time for us to update the network. We wanted to prepare for the data revolution and for 3G and 4G services. We'd looked at different vendors; ZTE was there along with other big international vendors. Apart from the commercial pricing, we were also considering technologies, in terms of what systems are more future-proof and energy efficient, and which systems have a good roadmap for development and investment. We found that ZTE has energy-efficient radio equipment and a strong roadmap for new technologies and platforms. This is one of the main reasons we selected ZTE.

Q: What do you think of ZTE's solution for the project?

A: Energy efficiency is very important to us. A major issue for Pakistan is the availability of electricity for all mainstream industries. We need equipment that requires less energy and is stably powered. This is a very strong value for ZTE. I also think ZTE has a good evolution roadmap for its products moving from 2G to 3G and LTE. It took us just one year to evolve almost 50% of our network from 2G to 3G. 

Q: How do you view the progress of the cooperation so far and how is Telenor Pakistan benefiting from it?

A: One of the reasons for success in TP Vega swap and managed services projects is ZTE's willingness to cooperate with us and learn from our experiences. Some big international vendors may insist on their own established operating style when they come to the market, and expect us to just sit back and wait for everything to happen. However, we have operated here for 10 years and have gained a lot of experience in network rollout and managed services in different kinds of circumstances. We have found ZTE is a really good learner and willing to share their problems with us. This would be one of the reasons why we had successful Vega swap and managed services projects.

Q: Telenor Pakistan and ZTE have a motto "one goal, one team". How have they carried out this motto?

A: If top leaders stick to the motto, it will go all the way to project managers. We are one team not just at the executive level but also at the management level. We have started sharing our strategies of both the Telenor Group and ZTE. We are doing workshops in every region and asking ZTE's product line managers and some team members to come and sit with us. Our directors are also presenting them our strategy, what we want to do in the internet and managed services, and how we want our customers to do. We are not just sharing day-to-day work, but also the vision. If you share the vision for future, you will become more cooperative and feel more like part of the family. The principle of one team has laid a solid foundation for our final success.

Q: What is the main challenge you have faced in the TP project implementation, and how have you dealt with it?

A: The biggest challenge in Pakistan for infrastructure development is subcontractor capabilities. In all sectors, such as network rollout, civil roads, managed services, or security services, the level of subcontractors at the current available market is not very high. Much time has been invested in raising capabilities of subcontractors. These subcontractors have done a lot of routine work that is not highly technical but very important. The management model that ZTE uses has been very successful. It is so difficult to make these subcontractors ready that you sometimes think whether it's worth doing it ourselves or contracting 200 people to do it. But this is not a sustainable solution. The sustainable solution is to keep engaging with these subcontractors and help them increase their capabilities. ZTE's management team took my advice to enhance their capabilities, and now there are very strong subcontractors in the managed services areas. Of course, there is still room for improvement, but I think through proper training and management, we will make these subcontractors grow and improve continually. It is a challenge, but also an opportunity for us.

Q: How would you describe future telecom market in Pakistan?

A: Pakistan is jumping from no-tech to high-tech. A few years ago we didn't even think about mobile services, but now they are among our most popular services. So I think the future of telecom companies and technologies as a whole is bright in the Pakistan market.
However, there are serious challenges, one of which is fierce competition. Several telecom companies are competing in Pakistan, and prices are very low. In order to maximize their investment returns, operators have to devise a grand scheme for each investment and to be capable enough to offer diverse services.
It is also very important for telecom companies to look far ahead and aim high. We are in a connected world connecting business and people, so we have to stand on a high vantage point. We have to consider what good services we can offer to our customers and how we can create more customer value. We are seeking partnerships with social media companies such as Facebook and Google, and in other fields like mobile agriculture and education. We are not restricting ourselves to telecommunications, but try our best to be part of people's lives in more ways than just the phone.

Q: What are Telenor Pakistan's goals over the next few years?

A: We have clearly defined our strategy for the next three to four years. We will focus on four important things. The first is the area where we will become part of customers' lives. We will not only offer the cheapest price but also the best quality. Internet for all is our second ambition. In the next three years, we will make at least 53 per cent of our customer base start using internet. We would like to bring internet to all people in this country, whether they are women or men, old or young, students or workers, farmers or engineers. Our third goal is to increase the utilization of mobile financial services. Banking service via a phone will be popular, and e-insurance, e-loan, and e-commence will also be available in this country. The last thing is that we will be more cost efficient and more prudent in investment so that we can work smartly with this country in the next three years.