overview of telecommunication in bd

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Home About BASIC INFORMATION OVERVIEW OF MOBILE TELECOMMUNICATION INDUSTRY

IN BANGLADESH. NEW PRODUCT DEVELOPMENT: MARKETING APPROACH OF PRIME

BANK LTD. ENTREPRENUERSHIP DEVELOPMENT

OVERVIEW OF MOBILETELECOMMUNICATION

INDUSTRY IN BANGLADESH.

INTRODUCTION:

Watson, come here: I want you. This was the first message ever transmitted from oneplace to another, through a device called telephone. American genius, Alexander GrahamBell (1847-1922) along with his assistant Thomas Watson invented the device. It was

March 10, 1876, an important day for human civilization, the first step towardsdeveloping means of communication. Weve come a long way since then. Today,telephone is a part of our everyday life. Besides telephone, now-a-days mobile phones areplaying a great role to communicate from one place to another. Today,telecommunication is one of the major parts of life. Nowadays, the phone is not only usedfor making calls, among many other functions its used for communicating through text-messages and so called multi-media messages, as well as to connect us to the internet.The opportunities that lie in the telecom market seem endless and the growing demandfor mobile telephony systems is creating a world-wide market. The telecom industry isnowadays not only by means of millions, but by means of billions. Actors in this industryare seeking the most profitable markets throughout the world. In this assignment we will

discuss about the mobile telecom market situation and their competitive analysis.

v ABOUT BANGLADESH

Bangladesh is one of the poorest, most densely populated, least developed countries inthe world. Apart from its lowly economic status, major impediments to growth haveincluded frequent cyclones and floods and the slow implementation of much-neededeconomic reforms. The country has a reputation for the inefficiency of its state-owned
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enterprises. This report looks at the countrys surprisingly energetic telecoms sector, inparticular, the effort that has been going into building telecom infrastructure and theprogress that has been made on regulatory reforms. Some key measures of the status oftelecommunications in Bangladesh are also provided.

Population:

By July 2008, the total population of Bangladesh is going to be 153,546,901 with agrowth rate 2.022%. In July 2007 the growth rate was 2.056%. (CIA World Fact Book2008)

Age structure is 0-14 years: 33.1% (male 25,639,640/female 24,174,937), 15-64 years:63.4% (male 48,659,087/female 46,712,687), 65 years and over:3.5% (male2,818,638/female 2,443,350) (2007 EST.). Median age of the population is 22.5 years.(ibid)

Communication systems

Communication in Bangladesh is based on Telephone, mobile communication, TVBroadcast, Radio, Internet etc. Three types of radio broadcast stations; AM15, FM 13 andshortwave 2. There are 376 Internet hosts with 10 ISPs and 450,000 internet users as ofthe year 2006. Telephone density is less than 1 per 100 persons. Mobile cellular density is13 per 100 per person. The country is introducing digital systems, trunk systems whichinclude VHF and UHF microwave radio links and some fiber optic links. The country hasa link to Europe with SEA-ME-WE-4 fiber optic submarine cable. (CIA World FactBook 2008)

vMETHODOLOGY

We have conducted the literature search connected to the topic to support and direct theresearch. This search was mainly conducting on the University databases, Journaldatabases, Library Journals, websites and Textbooks.

We have searched the databases provided by University library access, like Emerald,Business Insight, ABI/Inform, Global Information Inc (professional Research reports)and search engines like Google scholar and university special search engine connected toall databases and textbooks. The key words mainly used were Bangladesh Telecomindustry, Telecom future, Trends in Telecom, Bangladesh telecom Market.

In the full range of articles and journals on the subject of internationals marketing,investing in a new market, the We have found one of them very useful on the subject ofBangladesh Telecom Brief 2004 This paper tells the inside of offering and the potentialwhat Bangladesh market offers, not exactly the same subject but one major side of ourpaper has the subject of same interest.


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The Theoretical Framework has been created with the help of some text books onInternational Marketing and marketing in general. Text books of marketing such asInternational marketing by Cateora & Ghauri (2006), Internationall Marketing byBennett & Blythe (2002) and On Competition of Porter M. (1998) has been used for thisproject.

v Telecom Infrastructure in Bangladesh

Many foreign investors are now interested to do business in telecom sector in Bangladeshwhich reveals that Bangladesh has become a significant hub for telecoms. It has beenforecasted that the average revenue from telecoms sector will be Tk1500crore2 a year.Bangladesh is a country which is densely populated and also is a flat and easily extendsable coverage. The infrastructure and Tele-density is low which on the other hand madethe market a perfect place for telecom business. The demand is very high and theconsumer base is very large but the investment is low because of the topographic layout.The government has a receptive foreign investment policy with no restrictions on

repatriation of profit. Even though the current infrastructure is not much developed but itis suitable for foreign investment.

Bangladesh has a huge potential in WiMax and submarine cable which is a newtechnology in the country and has attracted the foreign telecom operators. Many foreigntelecom operators are coming to Bangladesh to explore the potentiality of the technology.Some interested international telecom operators who want to start a business inBangladesh are UK-based Orange Telecom, South Korean SK Telecom and UAEsEtisalat.

The government is encouraging private sector to invest more in the industry as they think

that the industry is playing a vital role in developing the socioeconomic structure of thecountry. And to ensure that, the government has taken several attempt. Giving privatesector the license for fixed line telephone is one of those attempts. Due to theenvironmental facts, the foreign entrants should adjust their equipments according todemand of the environment

v TREND IN TELECOM MARKET IN BANGLADESH

BIS Shrapnel, has launched its Bangladesh Mobile Telecommunication, 2005 report.Report author Mr Priyam Shah explains that Bangladeshs mobile phone market hasachieved exceptional growth since the beginning of 2004, registering a massive 100%

growth in its subscriber base during 2004, and 137% during 2005. This trend is forecastto continue over the coming years, bringing the subscriber base to 58.2 million by 2010.

According to Mr Shah, recent growth in the Bangladesh mobile market can be attributedto factors such as the deregulation of the telecommunication sector, low levels of tele-density, inadequate fixed phone infrastructure, high competition following the entry oftwo new operators (Banglalink and Teletalk) and, particularly, massive foreign directinvestment (FDI) by telecom giants like Telenor, Telekom Malaysia (TM), Orascom,


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SingTel, and most recently by UAE-based Warid Telecom. Mr Shah explains that foreignoperators, in collaboration with local partners, have been working with the infrastructureto remove entry barriers and make mobile telephony more affordable and widen the baseof mobile subscribers.

Mobile Price War

According to Mr Shah, the entry of Banglalink in February 2005 has sparked a price war.Banglalinks attractive launch offer included a new connection and handset at a low start-up cost of US$51. Following Banglalink, three other private operators Grameen Phone,Aktel and CityCell have also come up with various value-added offers resulting in anintense price battle.

The development of a competitive mobile phone market is expected to prompt an easingin cellphone tariffs going forward, after years of escalation in what was a captive market.Consumers will also benefit from cheaper connection and call rates.

State-owned operator Teletalk, however, is expected to struggle in this new environmentas it is still grappling with poor network coverage and inefficient management.

New SIM Tax

Controversially, the countrys 2004/05 annual budget (delivered in June 2005) imposed atax of US$18 on each new SIM card connection, raising a huge furore among cellphoneoperators. Operators think that the new tax will pose a serious entry hurdle for low-income earners and will significantly stifle growth expectations.

According to the latest figures from BIS Shrapnel research, the sale of mobile phoneconnections has picked up after an initial slowdown in June and July 2006. The tax onSIM cards was revised to US$13.50 in August in response to fierce demands fromoperators

Mobile Handset Market

In tandem with the growing subscriber base, sales of mobile handsets has increased at aphenomenal pace. However, nearly 70% of mobile handsets available in the local markethave been entering through informal channels, depriving the Government and importersof a huge amount of revenue each year. In a serious bid to turn around this drastic

situation, the Bangladesh Government reduced the tax on mobile handset imports fromUS$22.50 to only US$4.50 in mid 2005. Mr Shah explains that although this initiativehas revived the situation to a certain extent, the effect on the grey market has not been assignificant as was expected by distributors and importers.

Interviews conducted by BIS Shrapnel with leading distributors reveal that the greymarket is currently holding around 40% market share, but they are hopeful this willdiminish over the coming months.


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According to BIS Shrapnel research, Bangladeshs mobile handset market is dominatedby first-time users (nearly 85%), as the country is still in its infancy in terms of mobilephone usage. Further, 80% of the handset market is dominated by ultra-low to low-endhandsets, available for less than US$68, due to the countrys low per capita incomelevels.

As with many other Asia-Pacific countries, the Bangladesh mobile handset market ispredominantly captured by global handset giant Nokia (approximately 52% market share)followed by Siemens.

Mr Shah explains that the success of these two vendors can be attributed to excellenthandset quality, ease of use, an efficient sales and distribution network, dedicated after-sales service, and regular launches of low-priced handsets to meet market demand.

The Mobile World Statistics

According to The Mobile World, at the end of Q3 2005, the countrys penetration has justnudged over 5% with 7.3 million customers. Grameen Phone is the market leader with4.2 million customers. Number two in the market is Aktell (Telekom Malaysia) with justover 2 million customers. Sheba Telecom has just over 600,000 customers while PacificBangladesh Telecom has just over 300,000 customers and Teletalk Bangladesh picks upthe tail with 120,000 customers. Warid Telecom had not reported figures at the time.

v OVERVIEW OF MOBILE TELECOM MARKET IN BANGLADESH:

Currently there are 6 mobile operators in Bangladesh. They are namely-

Grameenphone Joint ventureownership 62%Telenor and 38%GrameenTelecom . Banglalink Joint venture with Orascom Telecom Co. originated from Egypt. Aktel Joint venture between Telecom Malaysia Berhad TM and A. K. Khan&

company limited Waried Telecom An investment ofDubai and Abu Dhabi Group UAE. TeleTalk Public limited company but 100% share have been owned by the

government of Bangladesh. Citycell Joint venture with SingTel Asia pacific investment Pvt. limited.

Below is a table that reflects the current competition of the market. Number of

subscribers for the Mobile Phone operators is shown below:

Figure:Bangladesh Mobile operators market share.

(BTRC 2008 ) *Subscribers in Millions.

Over the last two to three years, the number of mobile subscribers in Bangladesh hasbeen more than or close to more than doubling on an annual basis. By end-2007, the


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subscriber base had reached 34 million and was continuing to grow at an annual rate ofaround 60%. With the momentum that has been developed on the back of thegovernments deregulation process, the strong growth seemed likely to continue. Theentry of new operators into the market has certainly helped to further boost thecompetitive environment. This report describes how the mobile market is growing and

the impact this is having on the developing nation, as well as providing an outline of themain players. The report also has a brief overview of the TV broadcasting sector.

Consumer demand in Bangladesh makes the mobile market one of the fastest growingmarkets in the world. During first six months of 2007, Bangladesh recorded 7.7 million(1.3 million/month) subscribers. At this pace, the expected mobile subscribers by the endof 2007 were 35 million and a market penetration of around 25%, signifying year-on-yeargrowth of up to 70%. The following figure can give an over view of the potential marketof Bangladesh in near future. (Telecom Insight 2007)

v The rivals and their brief profile:

Now we will see the brief company profile of these rivals:

grameen phone

Grameenphone is a GSM (global system of mobile communication)-based cellularoperator in Bangladesh. It has started operations on March 26, 1997. It is partly owned byTelenor (62%) and Grameen Telecom (38%). Grameenphone is the largest mobile phonecompany in Bangladesh with 23.04 million customers as of october, 2008. It is also onethe fastest growing cellular telephone network in Bangladesh. At the end of 2008, it hadabout 5200 BTS (Base Tower Stations) around the country. Grameenphones stated goal

is to provide cost-effective and quality cellular services in Bangladesh. On the 16th ofNovember, 2006 GP formally changed its logo to match its parent company Telenorslogo. According to GP the new logo symbolizes trust, reliability, quality and constantprogress. Grameenphone has already picked up 425 core taka of Non-convertible SeniorCoupon Biasing Bond @ interest rate of 14.5 by the help of ten financial group of thecompanies. The company is recently going to call for IPO (Initial Public Offering) tocollect capital from share market of the country of 6 core 50 lakh dollar (449 core taka).GP has submitted the prospectus of proposal for IPO in 12/12/2008 to the chairman ofSEC (Security and Exchange Commission). The name of present CEO of GrameenPhoneis Odver Heszedal.

The name Grameenphone was kept as part of the new identity because the nameGrameenphone carries with it all of the heritage, success and values of the companiespast, added the then CEO of Grameenphone Erik Aas.

Hawaii, and Ericsson provides technological support to GrameenPhone. The tower rangeofGP exists 5-7 km. The technology used by Grameenphone is 1G (First Generation)which is supportable to 2G (Second Generation).


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>>Products offered

Grameenphone offers subscription in two categories, Prepaid Subscription and PostpaidSubscription.

>>Prepaid subscriptions are sub-divided into three plans:

1. Smile:

smile (mobile to mobile connectivity within Bangladesh),

smilePSTN (nationwide and international mobile and land line connectivity)

1. djuice (a youth based mobile to mobile connectivity within Bangladesh).

>>Postpaid plan:

xplore (nationwide and international mobile and landline connectivity)

Grameenphone also offers different value-added services including SMS, MMS,Welcome Tunes (Ringback Tones), Voice SMS, SMS Push-Pull Service, Voice MailService (VMS), and Fax and Data among others. Grameenphone was the first mobileoperator in Bangladesh to offer EDGE services to its subscribers.

>>Other activities

>>Village phone

With the help of Grameenphone, Grameen Telecom operates the national Village Phoneprogramme, alongside its own parent Grameen Bank and the International FinanceCorporation (IFC), acting as the sole provider of telecommunications services to anumber of rural areas.

>>Community Information Centers

Community Information Center (CIC) or GPCIC is aimed at providing internet accessand other communications services to rural areas. In February 2006, 26 CICs wereestablished across the country as a pilot project. In this project, Grameenphone provides

GSM/EDGE/GPRS infrastructure and technical support and other partners GrameenTelecom.

>>Grameenphone Centers

A grameenphone center (GPC) serves as a one stop solution for customers, with alltelecommunications products and services, under a single roof. A grameenphone centeralso sells phones from vendors like Nokia, Samsung, Motorola,Sagem and Benq.


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EDGE/GPRS modems and accessories such chargers and headphones are also sold atGPCs.

CSR(Corporate social responsibility):

Grameenpnone focuses its CSR on the field of followings:

1. It contributes its responsibilities toward countries education, empowerment &health sector.

2. Beautification of the city towns.3. It is the official sponsor of Bangladesh Cricket Board (BCB).

SWOT analysis:

According to the executive opinion we have analyzed the SWOT of the company.According to a executive of GP their-

Strength: Network coverage (94%of total area of the country.) &Total number

of customer.

Weakness: Short term defensive strategy & high call rate, which may hamper

the companys good will & Future competition.

Opportunity: To get link to the up coming technology i.e. Wi-Max.

Threat: Up coming technology may not support the present technological

infrastructure. And Banglalink.

Banglalink

With a slogan of making it difference- banglalink started operations in February 2005.Previously, it was known as Sheba Telecom Pvt. Ltd that had been providing GSM(global system of mobile communication) services in Bangladesh since 1998. OrascomTelecom bought 100% share of Sheba Telecom in 2004 and gave its new name asbanglalink.

banglalink, is the second largest cellular service provider in Bangladesh. As of August,2008, banglalink has a subscriber base of more than 10 million. It is a wholly ownedsubsidiary of Orascom Telecom. banglalink had 1.03 million connections untilDecember, 2005. The number of banglalink users increased by more than 253 per centand stood at 3.64 million at the end of 2006, making it the fastest growing operator in theworld of that year. In August, 2006, banglalink became the first company to provide freeincoming calls from BTTB for both postpaid and prepaid connections. banglalink


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provides its powerful network by 5500(approx) BTS (Base Tower Stations) is covering486 Thanas reasonably and 61 districts, covering a total population of around 90% tillmid of 2008. After Govt. withdrawal of the restriction of planting network infrastructurefrom the three hilly districts (i.e. Banderbarban, Kagrachori & Rangamati) banglalinkcovered the 64 districts within very short time. The name of present CEO (Chief

Executive Officer) of banglalink is Ahmed Abu Domer.

The logo of the company is designed on keeping the national animal i.e. Royal BangleTiger in mind, which symbolize to the faster growth. During the 3rd quartile of this yearwhich means july-september, 2008 the company earned 524 core BDT. And thecompanies market expanded to 10.17 million customers. An banglalinks executiveopinion about this was, the quality of product & service and continuous development ofnetwork has help them to reach this position. He also hoped that the customer size of thecompany will increased to 10.35 million by the end of this year. banglalink serves theircustomers with more than 700 CCP(Customer Care Point). Till now banglalink hasinvested 6,324 cores BDT. for the development of network and infrastructure.

Nokia-Siemens network & Hawaii provides technological support to banglalink. Thetower range of banglalink exists 5-9 km. in case sometime it varies to about 13-15 km.The technology used by banglalink is 1G (First Generation) which is supportable to 2G(Second Generation). Banglalink also has

1500 km. of Fiber Optic cable which gives the surety of good network. During theoccasional periods banglalink ensures much better service than the other operators.

Products Offered

Prepaid Packages

banglalink currently offers two prepaid plans. All the prepaid plans come in two phasesStandard (T&T incoming and outgoing with NWD and ISD) and M2M. All connectionsprovide GPRS to subscribers.

desh, with the slogan One country, one rate, is one of the cheapest prepaid plans in thecountry by tariff.

ladies, first!, with the slogan Shomporker Network (means network of relationship), istailored for women.

Postpaid Packages

Currently there are three postpaid plans from banglalink. These packages are calledenterprise personal. All packages come with T&T local, NWD, ISD and e-ISDconnectivity.

personal package 1


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personal package 2

personal call and control

banglalink enterprise

banglalink enterprise offers a wide range of products and services to suit the needs of thebusiness community. The current packages are:

enterprise corporate; targeted at the corporate segment

enterprise SME; targeted at the SME segment

enterprise personal

banglalink CU

banglalink CU package is targeted at the shopkeepers, which offers PCO facility to thegeneral public. It comes in two varieties:

CU

CU call and control

banglalink point

banglalink points are aimed at providing a complete mobile solution, connections,

handsets, accessories and provide selected customer services like SIM replacement,reconnection, bill payment etc. They are strategically located at key points around thecountry. Kallol Group a local distribution company had partnered with banglalink tooperate at least forty banglalink points through out the country. As of March, 2008, thedeal with Kallol Group has been called off and banglalink is focusing on managing itsown customer care centers.


Banglalinkfocuses its CSR on the field of followings:

1. Tradition & culture of Bengal.2. Beautification of the city towns.3. It is the official sponsor of Bangladesh Tourism Corporation.4. It has under taken the voting campaign to vote for Cox-bazaar and sunder-boon

and cleaning Cox-bazaar.5. It has provided Trolley for the passengers of Zia International Airport.

SWOT analysis:


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Strength: Active distribution management and sales personnel & brand

image. And network coverage (95% of total population).

Weakness: Time constant with other companies are not suitable.

Opportunity: Rural market & corporate customers.

Threat: Only time sense.

The executive also emphasized banglalink as best mobile company of the country. Andare capable to be a market leader within short period of time. According to him teamsprite, superior-subordinate relationship, and working environment is excellent. The

company is ready to take any challenges and have the capability to overcome it.

AKTEL

Telekom Malaysia International Bangladesh (TMIB) Limited is a joint venture betweenTelekom Malaysia Sdn. Bhd. (70%) and NTT DoCoMo (30%).

Aktel is the third largest mobile phone operator in Bangladesh in terms of revenue andsubscribers (8.14 million as of August 2008). In early 2008 Aktel slipped from the secondposition to the third after facing fierce competition from banglalink.

AKTEL launched its operations on the 15 November, 1997 in Dhaka and on 26 March,1998 in Chittagong. Its founding chairman is Late Mr. Zahiruddin Khan, an ex-commerceminister. AKTEL was formed as a joint-venture between Telekom Malaysia and A.K.Khan Company. All along through its insception it was ranked as No.2 mobile operatorand was placed far behind the industry leader GrameenPhone in terms of revenue and no.of subscribers. AKTEL started investing heavily with funds from Telekom Malaysia (themajority stake owner) on expanding its network in 2001 but the investment was far tooinadequate in comparison with GrameenPhones investment.

Products offered

Aktel offers an array of different packages. In addition to offering the fundamental pre-paid and post-paid mobile services, it offers a wide range of value added products andservices such as, SMS, GPRS, mobile data services, infotainment services, SMS banking,Caller Ring Back Tone, Ringtones download, Picture Messaging, MMS, VoiceGreetings, Call Blocking on 4th August 2008, which give subscriber to control which callhe or she receive or not and Bengali SMS.

Customer care


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AKTEL has 19 Customer Care Centers[8] and 200 Customer Service Points in 61allowable districts all over the country[9]. Aktel has another 670 AKtel Touch Points(ATP) scattered along the most densely populated areas.


Aktel has been offering scholarships to three Bangladeshi students every year forbachelor courses in engineering, information technology and business administrationsince 1998 to study at Multimedia University in Malaysia. It is the founding member ofChittagong Skills Development Centre (CSDC) that is offering technical training andbusiness management education through its strategic partnership with Penang SkillDevelopment Centre (PSDC) of Malaysia and its internal members. It also beautifies thecity areas. In 2007 Aktel received Standard Chartered-Financial Express Corporate SocialResponsibility (CSR) Award 2006 for their significant contributions to CSR andphilanthropic activities.

SWOT Analysis


Strength: Call rate superiority (at present situation.) & network system

Weakness:poor customer service & late response to competitors offer.

Opportunity: great opportunity to expand market by present network

system which adopt the Wi-Max technology.

Threat: other potential GSM network like Warid(NGN)

CITYCELL

Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communicationscompany of Bangladesh. It is the only CDMA (Code division multiple access) networkoperator in the country. As of 1st March, 2008, Citycells total mobile subscriber base is1.56 million, up 137 per cent or 680,000 from two years ago, giving it the best growthrate of the company till date. Citycell is currently owned by Singtel with 45% stake and

the rest 55% owned by Pacific Group and Far East Telecom.

In 1989 Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular,paging, and other wireless communication networks. Then in 1990 Hutchison BangladeshTelecom Limited (HBTL) was incorporated in Bangladesh as a joint venture betweenBTL and Hutchison Telecommunications (Bangladesh) Limited. HBTL begancommercial operation in Dhaka using the AMPS mobile technology in 1993 and becamethe 1st cellular operator in South Asia[2]. Later that year Pacific Motors bought 50% of


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BTL. By 1996 HBTL was renamed as Pacific Bangladesh Telecom Limited (PBTL) andlaunched the brand name Citycell Digital to market its cellular products. MichelSeymour is the present CEO of Citycell

Hawaii, Ericsson & Motorola provides technological support to Citycell. The tower range

of Citycell exists to 5-6 km. in case sometime it varies to about 9 km.(Max.) Thetechnology used by Citycell is CDMA1X(Code division multiple access). Citycell isconsolidating its position in wireless data by launching their Zoom EV-DO (evaluationdata optimize) for the broadband wireless internet service.

Although CDMA1X technology is the latest technology citycell could not not flourishingthe companies market position although it was the first company to launch Mobilecellular phones. Executive opinion abut this is that the failure of the policy maker to takeright decision in right time is the main cause . But he also appreciated the policies ofpresent CEO of citycell for capturing the market position. He also thinks that thecountries most Mobile companies are GSM, so they may induce the GSM union to

capture the market.

Products Offered

Citycell offers prepaid, postpaid and fixed phone plans. Since Citycell operates inCDMA, RIMs are usually sold with a phone mostly cheap Chinese sets produced byZTE, Huawei, Samsung, Motorola and Alcatel. Citycell currently has the cheapestphone+connection tariff at 1399 taka.

Customer Care Center

There are 6 Customer care centers of Citycell in the country. One for each division andthere are another 500 Customer care Points scattered around the country

Performance

World operator rank by connections : 258th

Market Share : 4.5%

Market Penetration : 1.1%

[*Data - Q2 2008]


Citycell focuses its CSR on the field of followings:

1. It contributes its responsibilities toward countries education, anti-drug & healthsector.


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2. Beautification of the city towns.3. It is the official sponsor Bangladesh Football federation.

SWOT analysis:


Strength: Digital technology CDMA1X. And network coverage (92% of

total population).

Weakness: Failing of making consciousness to the people about CDMA1X

technology.

Opportunity: Broadband wireless technology ofEV-DO (evaluation data

optimize). And up coming technologies are supportable to the

present technology.

Threat: GSM technology where people habited with the change of

Handset.

WARID

Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh. Waridis the sixth mobile phone carrier to enter the Bangladesh market. It is currently strugglingbut is trying to find a way out.

Warid officially launched their commercial services in Bangladesh on the May 10, 2007with a GSM Mobile Cellular network covering 64 districts of the country andencompassing 70% of the mobile phone using population- the single largest launch thecountry has ever seen.

In December 2005, Warid Telecom International LLC paid $50 million dollars(US) to

obtain a GSM license from the BTRC and became the sixth mobile phone operator inBangladesh.

In a press conference on August 17, 2006, Warid announced that his network would beactivated two months ahead of schedule, in October, 2006. Again in October, 2006 WaridTelecom put off the launch of its cellphone services in Bangladesh until April, 2007 afterits major supplier Nokia walked out on an agreement over a payment dispute. The presentCEO of WARID Mr. Munir Farooqui.


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Products Offered

Warid provides both post-paid and pre-paid connection plans. The post-paid plan isbranded and marketed across the country under the name Zahi Post-paid, which meansleader or royalty. The pre-paid segment is branded and marketed as Zem Pre-Paid.

The Zem Prepaid category is divided into four segments:

Zem (24 hours)

Zem 1 Sec

Zem Fun

Zem FnF

The Zahi Postpaid category is divided into three segments:

Zahi Royal

Zahi extra

Zahi-Post-paid and Zem Pre-paid user enjoy various value added services(VAS), such asSMS, MMS, GPRS, 64K SIM, Dual SIM product, Corporate packages for productadvertising via SMS, and a host of other features. However, International Roaming isavailable only to Zahi (post-paid) users.

Customer Care Centers and Franchises

Warid Telecom Franchise.

Warid has ten customer care centers around the country located at key locations. Thesecenters are directly run by Warid itself. Warid has another 120 franchises spread acrossBangladesh, the largest chain of retail outlets in the country, which is further backed upby a chain of sub-franchises, affinity partners & distributors.

SIM Cards, Scratch Cards and sometimes mobile sets are sold at these outlets. Billcollection for post paid users and Zem top up for pre-paid users can also be availed at the

franchises. These franchises directly appoint dealers and sub-dealers in their designatedareas.

SWOT Analysis



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Strength: Customer service & NGN network.

Weakness: Product design & product marketing.

Opportunity: Adopting Wi-Max which will definitely supported by the

3G(NGN) network.

Threat: Other potential competitors.

Teletalk

Teletalk Bangladesh Limited is a public limited company, registered under the Registrarof the Joint stock companies of Bangladesh. Total shares owned by the Government ofthe Peoples Republic of Bangladesh.We continue to grow and engage our customers through our clear commitment to

offering high quality products and services as well as leading customer retention andloyalty programmers. Teletalk continues to be a part of the revolution thats connectingmillions of Bangladeshi people and around the world.

Teletalk Bangladesh limited was established keeping a specific role in mind. Teletalk hasforged ahead and strengthened its path over the years and achieved some feats truly to beproud of, as the only Bangladeshi mobile operator and the only operator with 100%native technical and engineering human resource base, Teletalk thrives to become thetrue peoples phone Amader Phone.Product offered:

Teletalk offers an array of different packages. In addition to offering the fundamental pre-paid and post-paid mobile services, it offers a wide range of value added products andservices such as, SMS, GPRS, mobile data services, infotainment services, SMS banking,Caller Ring Back Tone, Ringtones download, Picture Messaging, MMS, VoiceGreetings.

The pre-paid packages are-

Standard

Shapla (Pre-paid)

Shadheen

And the post-paid packages are-

Standard (rajanigandha)

Shapla (Post-paid)


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Teletalk Customer Care Point(CCP)

Teletalk has established their customer care point only in the divisional cities and the bigcitied only. In their CCPs they provides free services to their customer and also sells themobile hand sets, and mobile accessories.

SWOT Analysis


Strength: Govt. owned public ltd. Co. & they use the frequency of BTCL

Which is covered all around the country.

Weakness: Poor customer service & bad product design.

Opportunity: great opportunity to expand market by present network

system which adopt the Wi-Max technology.

Threat: other potential GSM companies.

v Forecast about telecommunication market in Bangladesh:

Over the last two to three years, the number of mobile subscribers in Bangladesh hasbeen more than or close to more than doubling on an annual basis. By end-2007, the

subscriber base had reached 34 million and was continuing to grow at an annual rate ofaround 60%. With the momentum that has been developed on the back of thegovernments deregulation process, the strong growth seemed likely to continue.

IEMRs Mobile Forecast on Bangladesh provides over 65 operational and financialmetrics for the Bangladesh wireless market. We cover quarterly historical data starting in1Q2004 and ending in 1Q2008. We also provide four-year forecasts at the operator levelgoing out to 2010. Operators covered for Bangladesh include: Bangalink/Sheba(Orascom Tel), GrameenPhone (Telenor), TM Intl (Telekom Malaysia), PBTL(SingTel), and Warid BTTB. Our Mobile Forecasts are updated quarterly and areavailable for one-time delivery or through regular updates. Notable highlights of the

3Q08 Bangladesh Mobile Forecast include:

1) Total subscribers in Bangladesh will increase from the projected 46.9 million in 2008to 58.2 million in 2010. We, therefore, forecast that the level of wireless penetration willincrease steadily in Bangladesh from our projected 29.0% in 2008 to 34.7% in 2010.

2) The level of competition in the wireless market will continue to increase, and the HHIindex will go down from 0.298 in 2008 to 0.285 in 2010. The three largest operators in


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the country (Bangalink/Sheba, GrameenPhone, and TM International) will be losingmarket shares to Warid.

3) The largest operator in the country will continue to be GrameenPhone (Telenor), butits market share (by subscribers) will decrease from 45.0% to 42.9% in the forecast

period, 2008 ? 2010.

In the figure below BMI (business monitor international) had forecasted a rapid growthand average y-o-y growth of 56% per year between year 2007 and 2011.

Market penetration should be reached by 50% by the end of 2009 and can be increased by75% during the forecasted period. So, according to the forecast, by the year 2011, mobilesubscribers will be 115millions. That sounds like a great potential market. (ibid)

The reality is close to the forecast. According to BTRC, The total number of MobilePhone Subscribers has reached 32.33 million at the end of October 2007, when BMIs

expectation was about 35 millions. Mr. Manzurul Alam, Chairman BTRC whileanswering a question, has given the latest information. As of April 2008, the total numberof mobile phone subscribers stands at 40.34 millions. And the average growth rate falls inthe range of 1 million subscribers per month.

Figure: BMI forecast

v Brief about PSTN Operators in Bangladesh:

Beside the six mobile telecommunication companies there are twelve PSTN (publicswitched telephone network) companies in Bangladesh. Among these BTTB was only

govt. owed company, which has been converted into Public Ltd. Co. in august this yearand now it is working as a name BTCL (Bangladesh Telecommunication Company Ltd.).Accept BTCL all other PSTN use wireless system CDMA (Code division multipleaccess) technology. The raise of private PSTN companies made the market of PSTN inthe country very competitive. Now the call rate of PSTN has been reduced than theprevious rate.

Here the list of PSTN subscribers of the country is shown in a figure with their customersize bellow:


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*Subscribers in Thousands Source: BRTC

v CONCLUSION

The buyer is powerful in the industry, but since the market is growing largely, it will beeasy for the company to hold its own share, because of poverty, the population will beunlikely to avail the switching cost. And this also reduces the risk of high availability ofsubstitutes.

The supplier is not powerful in this case which is a plus for the company and thecompany can play with the price to keep the production cost low. Since the market is yetto be matured and growing very fast, we assume that the suppliers companies are alsoincreasing. Some multinational companies are showing their interest to enter into themarket. This can lead some new suppliers to arrive into the market and make theenvironment more competitive. So at some stage the bargaining power of the supplierswill become very low.

So from the above discussion, it can be said that the Bangladesh telecom market has a lotof potential to offer considering strategically ignorable or somehow alterable threats. Themarket looks very potential and prospective. Lots of opportunities are waiting.

Bangladesh has cheap skilled and willing to be skilled labor. Communicationinfrastructure is in good condition and has the ability to serve the international entrants.Customer demand for telecom product is very high due to the high growth rate of themarket. As the industry is becoming bigger, availability of supporting industries areincreasing and already there are lots of supporting companies in the market. And finallythe government policies are very welcoming and liberal.

Operators Subscribers

December 2007

Subscribers

September 2008

Subscribers

October2008

BTTB 872.409 872.409 873.265

Ranks Telecom Ltd. 112.560 148.173 149.495

Telebarta Ltd. 55.809 56.424 56.424

Jalalabad Telecom Ltd. 3.948 4.949 5.110

Onetel Communication Ltd. 30.126 38.364 38.529

National Telecom Ltd. 17.521 48.467 51.496

Peoples Telecom Ltd. 32.961 46.211 53.085

Westec Ltd. 17.400 17.000 17.000

Dhaka Telephone Co. Ltd. 27.793 58.074 59.436

Sheba Phone Ltd. (ISL) 8.232 10.018 9.930

S.A Telecom System Ltd. 8.134 14.372 14.804

Banglaphone 0.026 0.026 0.026Total 1,186.919 1,314.487 1,328.600


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From the above discussion we can comment that the mobile telecommunication ofBangladesh is very competitive & the rivals are facing huge competition in the market.Therefore we observe that the mobile companies are changing their strategies day to dayto survive in the market. So it will be difficult for any new company to enter in thismarket. But we can simply say that the mobile telecom market of Bangladesh is a well

balanced & fully competitive.

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Documents

overview of telecommunication in bd