Telenor Group, based in Norway, experienced stagnating increase in average revenue per user (ARPU) at its 11 subsidiary company cellular networks in Europe and Asia. Buying GSM permits to expand to new markets was now too pricey. Having favoured Telenor Pakistan with more than $1.2 billion of capital expenditure, it was now especially in need of substantial gains from this fully owned subsidiary. Given this context, Telenor Pakistan and several other subsidiary companies were directed to research diversification avenues. In the instance, we follow the way the VP Strategy at Telenor Pakistan presented cellular financial services for the "unbanked" as the way forward. However, at the choice point in the case (March 2008), the central bank of Pakistan had sanctioned only a specific set of business models from which the telecommunications company (telco) had to pick one, if it absolutely was to provide mobile financial services.
A fundamental constraint was that the enterprise should be "bankled." There were various novel mobile financial service models in other emerging markets which were making headlines, for example SMART Money in the Philippines and Vodafones' MPESA in Kenya. The VP Strategy at Telenor Pakistan needed to prepare a presentation to the Board of Directors regarding how to carry on.
Telenor (A) From Cellular Networks to Financial Services case study solution
PUBLICATION DATE: January 01, 2014 PRODUCT #: NA0272-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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