INTRODUCTION
OVERVIEW OF THE
INDUSTRY
2.1 History of
Telecommunication:
“Watson, come here: I want you.” This
was the first message ever transmitted from one place to another, through a
device called telephone. American genius, Alexander Graham Bell (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 towards
developing means of communication. We’ve come a long way since then.
Today, telephone is a part of our everyday life. Nowadays,
the phone is not only used for making calls, among many other functions it’s
used for communicating through text-messages and so called multi-media
messages, as well as to connect us to the internet.
The
liberalization of Bangladesh’s telecommunications sector began with small steps
in 1989 with the issuance of a license to a private operator for the provision
of inter alia cellular mobile services to compete with the previous monopoly
provider of telecommunications services the Bangladesh Telegraph and
Telephone Board (BTTB). Significant changes in the number of fixed and
mobile services deployed in Bangladesh occurred in the late 1990s and the
numbers of services in operation have subsequently grown exponentially in the
past five years. The incentives both from government and public sectors have helped
to grow this sector. It is now one of the biggest sectors of Bangladesh. As a
populous country, its huge market has attracted many foreign investors to
invest in this sector.
The telecom sector in Bangladesh is
rapidly emerging. Bangladesh Telecommunication Regulatory Commission (BTRC) is
the regulatory authority for this sector, overseeing licensing, policy etc.
2.2 Milestone
of Telecom sector in Bangladesh: Landmarks in the history of
telecom industry in Bangladesh are as follows.
- 1853:
Telegraph branch under Posts and Telegraph Department, British India. - 1971:
Reconstructed as Bangladesh Telegraph and Telephone Department under
Ministry of Posts and Telecommunications. - 1975:
Reconstructed as Telegraph and Telephone Board. - 1979:
Reconstructed as Bangladesh Telegraph and Telephone Board (BTTB) with
right to issue license for telecom and wireless services. - 1981:
Digital Telex Exchange in Bangladesh. - 1983:
Automatic Digital ITX started in Dhaka. - 1985:
Coinbox Telephone service introduced in Bangladesh by BTTB. - 1989:
GENTEX Telegraph messaging service introduced in Bangladesh. - 1989:
Bangladesh Rural Telecom Authority got license to operate exchanges in 200
upazilla. - 1989: Sheba Telecom got license to operate
exchange is 199 upazilla. - 1989:
Cellular mobile phone company Pacific Bangladesh Telephone Limited and
Bangladesh Telecom got license. - 1995:
Card Telephone service introduced in Bangladesh by BTTB and TSS. - 1995:
Regulatory power of BTTB transferred to Ministry (MoPT). - 1995:
2nd and 3rd ITX installed in Dhaka. - 1996:
GrameenPhone got cellular mobile Telephone license. - 1996:
Telecom Malaysia International Bangladesh got cellular mobile license. - 1998:
Telecom Policy. - 2000:
Global Telecom Service (GTS) Telex Exchange venture with British Teleco. - 2001:
Telecommunication Act, to establish Bangladesh Telecommunication
Regulatory Commission (BTRC). - 2002:
ICT Policy. - 2004:
Teletalk cellular mobile launched. - 2005:
Egypt-based Orascom acquired Sheba Telecom. - 2006:
NGN introduced in BTTB. - 2008:
BTTB converted into Bangladesh Telecommunications Company Limited (BTCL)
with 100% shares owned by Government. - 2008:
Japanese NTT DoCoMo bought 30 percent stake in Aktel. - 2009:
Bharti Airtel acquired 70 percent stake in Warid Telecom. - 2009:
Internet Protocol Telephony Service Provider (IPTSP) Operators launched.
2.3 Telecom
Operator in Bangladesh:
There are different types of telecom
operator in Bangladesh. Those are as follows:
- PSTN
- Mobile
Phone Operators - Long
Distance Operators - Internet
Protocol Telephony Service Provider (IPTSP) Operators - Radio
- Television
- Internet
- Broadband
Internet Access - International
and - Submarine
cables
- PSTN: The PSTN or fixed operators in
Bangladesh are:
a)
BTCL (former BTTB)
b)
Peoples Telecommunication and Information Services Ltd.
c)
Tele Barta Ltd. – branded under the name Jubok phone
d)
Jalalabad Telecom Ltd. – branded under the name Bijoy Phone
e)
Onetel Communication Ltd.
f)
National Telecom Ltd.
g)
Westec Ltd.
h)
Dhaka Telephone Co. Ltd.
i)
Integrated Services Limited (ISL) – branded under the name Sheba Phone
j)
S.A Telecom System Ltd.
k)
Banglaphone Ltd.
The number of PSTN subscribers in Bangladesh as of February
2009 was 1.372 million.
Mobile
Phone Operators:
There are 6
mobile phone operators in Bangladesh. These are:
1. Grameenphone
Ltd.: Branded as Grameenphone
2. Sheba
Telecom Ltd.: Branded as Banglalink
3. Axiata
Bangladesh Ltd: Branded as Robi
4. Pacific
Bangladesh Telephone Ltd.: Branded as Citycell
5. Airtel
Bangla Ltd. Branded as Airtel
6. Teletalk
Bangladesh Ltd.: Branded as Teletalk
The number of
mobile phone subscribers in Bangladesh as of February 2009 was 45.21 million,
rising to 76.43 million at the end of June 2011.
Long
Distance Operators:
On February 25,
2008 the Bangladesh Telecommunications Regulatory Commission awarded licenses
for two Interconnection Exchanges (ICX), three International Gateways (IGw),
and one International Internet Gateway (IIG) to six firms through an open
auction in February 2008. The incumbent BTTB got the same licenses too. Here is
the list of all operators:
International
Gateway (IGW) Operators
1. Bangla Trac
Communications Limited
2. Mir Telecom
3. Novotel
Limited
4. BTCL
Interconnection
Exchange (ICX) operators
1. Getco
Telcommunications Ltd.
2. M&H
Teletcom Ltd.
3. BTCL
International
Internet Gateway (IIG) Operator
1. Mango
Teleservices Limited
2. BTCL
Internet
Protocol Telephony Service Provider (IPTSP) Operators:
The IPTSP
operators in Bangladesh are:
Nationwide:
1. HRC
Technologies Limited (GETCO Online Ltd.)
2. Eirtel
Bangladesh Limited.
3. Information
Services Network Limited
4. Agni Systems
Ltd.
5. Innovative
Online Limited
6. Dhakacom
Limited
7. Connect BD
Ltd.
8. Digital
Connectivity Limited
9. BTS
Communications (BD) Ltd
10. Royal Green
Online Limited
11. Global
Access Limited
12. Access
Telecom (BD) Ltd.
13. Ranks ITT
Ltd.
14. BDCOM
Online Ltd.
15. Broad Band
Telecom Services Limited
16. Link 3
Technologies Ltd
17. BRAC Net
Limited
18. Metro net
Bangladesh Limited
19.
Communication One (Pvt.) Limited
20. Telnet
Communication Limited
21. X-Net
Limited
22. Bangladesh
Internet Exchange Limited
23. Nreach Net
(Pvt.) Limited
24. Advanced Data
Networks System Limited
25. Akij Online
Limited
26. Bangladesh
Export Import Company Limited
27. IDS
Bangladesh
28. IS PROS
LIMITED
29. Idea
Networks and Communications Ltd
30. Pritty
International (Pvt) Limited
31. Akceycom
Limited
Central:
1. Grameen
Cybernet Limited
2. Fusion Net
3. M/s. Media
& Multimedia
4. Next Online
Limited
5. J F Optical
Services
6. IT Connect
Limited
7. Sine-10 (BD)
Ltd.
8. SADIATEC
Ltd.
Zonal:
1. Chittagong
Online Limited
2. Chittagong
Telecom Services Limited
3. HN TELECOM
On August 18,
2009 the Bangladesh Telecommunications Regulatory Commission awarded licenses
for IPTSP. IPTSP operators are regulated by the BTRC.
- Radio:
Radio broadcast
stations: AM 12, FM 12, shortwave 2, community radio 1, internet
radios
Radios: 6.15
million (1997)
The government
owned Betar-Radio Bangladesh operates from Dhaka and other local districts.
Currently, the private FM radio channels are very popular. They are trying to
attract young people by broadcasting music and news. The operating private
radio channels include:
- Radio Today FM
- Radio Foorti FM
- Radio Amar FM
- Radio Metrowave
- ABC Radio
- Television:
Television
broadcast stations: 16 (1999).
Televisions:
770,000 (1997).
The number of
private satellite channels is growing. The first private channel in Bangladesh
was ATN Bangla.
- Internet:
The
first connectivity of internet was only in 1996. Though It was somewhat late,
over the past few years the growth is rapid. The government’s high internet
tariff is impeding the growth of this sector. Recently the government is
decided to reduce the tariff 50%.
Internet
country code: .bd
Internet
Service Providers (ISPs): As of 2005 more than 180 Internet
Service Providers are operating in the country. ISP’s are regulated by the
Bangladesh telecommunication regulatory commission (BTRC).
Internet users: The
number of internet users in Bangladesh as of March 2009 is over 600,000
compared to 100,000 in 2000. However,
only 0.3% of the population use the internet and thus making Bangladesh the
lowest usage percentage per population of the internet in the world with the
exception of North Korea, Myanmar and Sierra Leone.
But on April,
2010 Akhtaruzzaman Manju, president of Internet Service Providers’ Association
of Bangladesh, told Xinhua that the country’s six cell phone operators and
Internet Service Providers have so far provided over 800,000 internet
connections. “We’ve estimated that nearly 10 million people in the country
are using 800,000 internet connections on sharing basis,” he said, adding the
number of internet users in the country is increasing yearly by around 15–16
percent.
The number of
Internet subscribers in Bangladesh is likely to reach 18.3 million by the year
2020 translating to a 32 percent household Internet penetration at around the
same time”, says a study by an international research group.
“This increased
internet penetration would resulted in 2.6 per cent contribution to the
country’s GDP by 2020 while creating 129 thousand more jobs by the same year”
the research added.
- Broadband
Internet Access:
Though
broadband internet access is available it charges high for high speed
connection than other south Asian countries, though this is rapidly changing.
Broadband internet and e-commerce in Bangladesh is slowly progressing. WiMAX
service is now available from some internet service providers. In Bangladesh Broadband
is legally defined as 128/128 kbit/s, which is not in line with ITU. Therefore
most of the Broadband internet services and also subscribers are using
bandwidth that may not be considered a broadband in other countries and may not
be broadband in international standards.
- International:
There are 6
satellite earth stations. Talimabad, Betbunia are two of them. Some info shows
that the number is now 7.
- Submarine
Cables:
SEA-ME-WE 4 or
South-East Asia – Middle East – Western Europe 4. The landing site is Cox’s
Bazar, Bangladesh.
2.4 Short
Profile of Mobile Phone Operators:
There
are six mobile phone operators in our country. Company’s short profile are as
follows.
2.4.1
Grameenphone Ltd. Branded as Grameenphone:
|
Type |
Limited |
|
Industry |
Mobile |
|
Founded |
1997 |
|
Headquarters |
GPHOUSE, |
|
Key people |
Tore Johnsen, |
|
Products |
Telephony, |
|
Revenue |
891Million |
|
Net income |
6,403.8 |
|
Parent |
Telenor |
|
Website |
www.grameenphone.com |
Grameenphone
widely known as GP is the leading telecommunications service provider in
Bangladesh. With more than 32 million subscribers (as of June 2011),
Grameenphone is the largest cellular operator in the country. It is a joint
venture enterprise between Telenor and Grameen Telecom Corporation, a
non-profit sister concern of the internationally acclaimed microfinance
organization and community development bank Grameen Bank. Telenor, the largest
telecommunications company in Norway, owns 55.8% shares of Grameenphone;
Grameen Telecom owns 34.2% and the remaining 10% is publicly held.
Grameenphone
was the first company to introduce GSM technology in Bangladesh. It
also established the first 24-hour Call Center to support its subscribers. With
the slogan Stay Close, stated goal of Grameenphone is to provide
affordable telephony to the entire population of Bangladesh.
History:
The idea of
providing universal mobile phone access throughout Bangladesh, including its
rural areas, was originally conceived by Iqbal Quadir, who is currently the
founder and director of the Legatum Center for Development and Entrepreneurship
at MIT. He was inspired by the Grameen Bank microcredit model and envisioned a
business model where a cell phone can serve as a source of income. After
leaving his job as an investment banker in the United States, Quadir traveled
back to Bangladesh, after meeting and successfully raising money from New York
based investor and philanthropist Joshua Mailman, and worked for three years gaining
support from various organizations including Nobel Peace Prize laureate
Muhammad Yunus of Grameen Bank and the Norwegian telephone company, Telenor. He
was finally successful in forming a consortium with Telenor and Grameen Bank to
establish Grameenphone. Quadir remained a shareholder of Grameenphone until
2004.
Grameenphone
received a license for cellular phone operation in Bangladesh from the Ministry
of Posts and Telecommunications on November 28, 1996. Grameenphone started
operations on March 26, 1997, the Independence Day in Bangladesh.
Grameenphone
originally offered a mobile-to-mobile connectivity (widely known as GP-GP
connection), which created a lot of enthusiasm among the users. It became the
first operator to reach the million subscriber milestone as well as fourty
million subscriber milestone in Bangladesh.
Chronology:
- November 28, 1996: Grameenphone Ltd. received
cellular license by the Ministry of Posts and Telecommunications of
Bangladesh. - March 26, 1997: Grameenphone launched its service on
the Independence Day of Bangladesh. - June 1998: Grameenphone started its services in
Chittagong, the second largest city and the port city of Bangladesh. Cell
to cell coverage between Dhaka-Chittagong was established. - 1999: Grameenphone started its service in Khulna, the
industrial city of Bangladesh. Also cell to cell coverage between Dhaka
and Khulna brought a number of other districts under coverage. - 2000: Grameenphone started its services in Rajshahi,
the education city of Bangladesh. Service also started in Sylhet and
Barisal and thus all six divisional headquarters got the cellular network
coverage for the first time Bangladesh. - August 2003: Grameenphone’s subscribes base has become
more than one million. Grameenphone became the first operator in the
country to reach the million subscribers. - November 2005: Grameenphone registered more than 5
million subscribers. - November 5, 2006: Grameenphone crosses the 10 million
subscriber mark after almost ten years of operation. - September 20, 2007: Grameenphone reaches 15 million
subscribers mark. - June 2008: Grameenphone reaches 20 million subscribers
landmark.
Network:
According to
Grameenphone, it has so far invested more than BDT 10,700 crore (USD 1.6
billion) to build the network infrastructure since 1997. It has invested over
BDT 3,100 crore (USD 450 million) during the first three quarters of 2007 while
BDT 2,100 crore (USD 310 million) was invested in 2006 alone.
Grameenphone
has built the largest cellular network in the country with over 10,000 base
stations in more than 5700 locations. Presently, nearly 98 percent of the
country’s population is within the coverage area of the Grameenphone network.
The entire
Grameenphone network is also EDGE/GPRS enabled, allowing access to dial-up
quality speed Internet and data services from anywhere within the coverage
area. There are currently nearly 3 million EDGE/GPRS users in the Grameenphone
network.
Products
offered: Grameenphone
offering the following products in Bangladesh.
· Mobile Telephony: Grameenphone was the first operator to
introduce the pre-paid mobile phone service in Bangladesh in September 1999. It
offers the pre-paid subscription under the name Easy Prepaid which is currently
called “smile prepaid”. Besides smile, Grameenphone also
offers a youth based mobile to mobile connectivity within Bangladesh named
djuice’.
Grameenphone
also offers postpaid mobile service. Xplore Postpaid is the name of its
post paid service.
Other
Services:
- Internet:
Grameenphone provides internet service in its coverage area. As it has
EDGE/GPRS enabled network, any subscriber can access to internet through
this network. Grameenphone was the first mobile operator in Bangladesh to
offer EDGE services to its subscribers.
- BillPay:
A service to enable users to pay their utility bills Electricity/Gas
through mobile.
- CellBazaar:
Services to enable user’s sells or buy products through mobile or
internet.
- Various
other services like Stock Information, Instant Messaging, SMS Based
Alerts/Services, Voice-based Services, Downloads,
Music,
Cricket
Updates, Web SMS, and Mobile Backup etc.
Other
Activities:
- Village
phone - Grameenphone
Centers - Community
Information Centre
Awards:
- Grameenphone
received the GSM in the Community Award at the global GSM Congress
held in Cannes, France in February 2000 for its Village Phone initiative. - In
2002, Grameenphone was adjudged the Best Joint Venture Enterprise of
the Year at the Bangladesh Business Awards. - Grameenphone
was presented with the GSM Association’s Global Mobile Award for
‘Best use of Mobile for Social and Economic Development’ under Bridging
the digital divide category at the 3GSM World Congress held in Singapore,
in October 2006, for its Community Information Center (CIC) project. - In
the next year, 2007, Grameenphone was again presented with the same award
for its `HealthLine Service’ at the 3GSM World Congress held in Barcelona,
Spain, in February.
2.4.2. Sheba
Telecom Ltd.: Branded as Banglalink:
|
Type |
Subsidiary |
|
Industry |
Telecommunication |
|
Founded |
November, |
|
Area served |
64 Districts |
|
Headquarters |
Tiger House, |
|
Key people |
MD and CEO. |
|
Products |
Telephony and |
|
Parent |
Orascom |
|
Website |
www.banglalinkgsm.com |
Banglalink is
the second largest cellular service provider in Bangladesh after Grameenphone.
As of November, 2009, Banglalink has a subscriber base of 12.99 million. It is
a wholly owned subsidiary of Orascom Telecom.
Banglalink had
1.03 million connections until December, 2005. The number of Banglalink users
increased by 257 percent and stood at 3.64 million at the end of 2006, making
it the fastest growing operator in the world of that year. In August, 2006,
Banglalink became the first company to provide free incoming calls from BTTB
for both postpaid and prepaid connections. On August 20, 2008, Banglalink got
past the landmark of 10 million subscriber base.
History
of Banglalink:
Sheba Telecom
(PVT Ltd)-after talking lots- finally was granted license in 1989 to operate in
the rural areas of 199 upazilas. Later it obtained GSM license in 1996 to
extend its business to cellular mobile, radio telephone services. It launched
operation in the last quarter of 1997 as a Bangladesh-Malaysia joint venture.
In July, 2004,
it was reported that Egypt based Orascom Telecom is set to purchase the
Malaysian stakes in Sheba Telecom through a hush-hush deal, as Sheba had failed
to tap the business potentials in Bangladesh mainly due to a chronic feud
between its Malaysian and Bangladeshi partners. An agreement was reached with
Orascom worth US$25 million was finalized in secret. The pact has been kept
secret for legal reasons, considering financial fallout and because of the
feud.
The main reason
for the undercover dealing was the joint venture agreement between the
Bangladeshi and the Malaysian partners, which dictates that if any party sells
its Sheba shares, the other party will enjoy the first right to buy that.
Integrated
Services Ltd. (ISL), the Bangladeshi partner, was being ‘officially’ shown as
purchasing the shares held by Technology Resources Industries (TRI) of Malaysia
for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba’s
liabilities.
In September,
2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom
(Pvt.) Limited (“Sheba”). It was acquired for US$60 million. Sheba had a base
of 59,000 users, of whom 49,000 were regular when it was sold. Afterward it was
re-branded and launched its services under the “Banglalink” brand on February
10, 2005. Banglalink’s license is a nationwide 15-year GSM license and will
expire in November, 2011.
In March, 2008,
Sheba Telecom (Pvt.) Limited changed its name as Orascom Telecom Bangladesh
Limited, matching its parent company name.
Products
offered:
1.
Prepaid packages
Banglalink
currently offers two prepaid plans. All the prepaid plans come in two phases—Standard
(T&T incoming and outgoing with NWD and ISD) and M2M. All connections
provide GPRS to subscribers.
- desh, with the
slogan Ek desh Ek Rate! (means one country one rate!), is
one of the cheapest prepaid plans in the country by tariff. Users of desh
can call any mobile operator at 0.45 taka (excluding VAT) during 12 AM to
5 PM. It also has three FnF numbers. desh was launched on September 14,
2006. - desh rang
is launched as a brand extension to enrich the brand of desh. Rang
is a Bengali word which means color. It is introduced with the
catch phrase—Rangiye Din Apnar Jeebon (means color your life.).
This package is beneficial for customers who mainly make calls to their
own network and are heavy SMS users. It offers four on-net FnF numbers,
but no off-net FnF number.
Former Packages:
- Regular prepaid
was the first package Banglalink had to offer. It is currently unavailable
in the market. - Ladies, first!,
with the slogan Shomporker Network (means network of
relationships), was tailored for women. It was launched on September
3, 2005. It had introduced 1 second pulse for the first time in the
prepaid market. It offered four FnF numbers. It is currently unavailable
in the market. - be linked!
was launched on November 16, 2005. It was later taken over by desh package
as all the be linked! Customers were automatically migrated to desh.
2.
Post-paid packages:
Currently there
are three postpaid plans from Banglalink for its tail customers. These packages
are known as enterprise personal, which is a subset of much larger
Banglalink enterprise. All packages come with T&T local, NWD, ISD and e-ISD
connectivity.
Personal
package 1
Personal
supplementary
Personal call
and control
Former Packages:
- Upper class,
a post-paid platform, was launched on July 31, 2005. It was mainly
targeting slightly upscale consumers. upper class was known for offering
purple carpet treatment to its clients, giving special attention with
separate counters at sales and customer care centers and a dedicated
hotline. It had numerous packages under two different tariff plans—tailor
made and made to measure. In addition to those, it introduced a
hybrid product named call and control designed to offer the value
of post-paid with the control of prepaid. Later enterprise personal took
control of upper class.
3.
Banglalink enterprise
Banglalink
enterprise offers a wide range of products and services to suit
the needs of the business community. Companies under the enterprise package are
provided with a dedicated enterprise relationship manager who provides them
with personalized customer care round the clock. Other benefits of enterprise
include customized packages with attractive call charges and connection price,
enterprise SMS broadcast, enterprise short code, international roaming, missed
call alerts, free voice mail retrieval, fax and data service, call
conferencing, special offer for family members and many more. It was first
launched in December, 2006. The current packages are:
- enterprise
corporate; targeted at the corporate segment - enterprise
SME; targeted at the SME segment - enterprise
personal
Prior to the
launch of Banglalink enterprise, Banglalink served the business clientele
through a similar platform named Banglalink professional.
Banglalink
Customer Care:
Banglalink
delivers customer care using its call centers and customer care networks.
Currently Banglalink provides customer care services to its clients through:
- Banglalink
sales & care centres - 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 the country. Kallol Group, a
local distribution company, had partnered with Banglalink to operate at least
forty Banglalink points throughout the country. As of March, 2008, the
deal with Kallol Group has been called off and Banglalink is focusing on
managing its own customer care centers. - Banglalink
service points - Banglalink
care lines are call centers serving customers 24 hours 7 days a
week with instant solutions.
2.4.3. Axiata
Bangladesh Ltd: Branded as Robi:
|
Type |
Joint Venture |
|
Industry |
Mobile |
|
Founded |
1997 |
|
Area served |
All over |
|
Headquarters |
Robi |
|
Key people |
Michael |
|
Products |
Mobile |
|
Parent |
Axiata Group |
|
Website |
www.robi.com.bd |
Robi Axiata
Limited, DBA Robi (formerly known as Aktel), is a
joint venture between Axiata Group Berhad, Malaysia (70%) and NTT DoCoMo Inc,
Japan (30%).
Robi is the
third largest mobile phone operator in Bangladesh with more than 14 million
subscribers as of June 2011.
Robi boasts of
the widest international roaming service in the market, connecting over 500
operators across 207 countries. It is the first operator in the country to introduce
GPRS. Robi uses GSM 900/1800 MHz standard and operates on allocated
12.8 MHz frequency spectrum.
History:
Robi Axiata
Limited is a joint venture company between Axiata Group Berhad, Malaysia and
NTT DOCOMO INC, Japan. It was formerly known as Telekom Malaysia International
(Bangladesh) which commenced operations in Bangladesh in 1997 with the brand
name AKTEL. On 28 March 2010, the service name was rebranded as ‘Robi’ and the
company came to be known as Robi Axiata Limited.
Robi is truly a
people-oriented brand of Bangladesh. Robi, the people’s champion, is there for
the people of Bangladesh, where they want and the way they want. Having the
local tradition at its core, Robi marches ahead with innovation and creativity.
To ensure
leading-edge technology, Robi draws from the international expertise of Axiata
and NTT DOCOMO INC. It supports 2G voice, CAMEL Phase II & III and
GPRS/EDGE service with high speed internet connectivity. Its GSM service is
based on a robust network architecture and cutting edge technology such as
Intelligent Network (IN), which provides peace-of-mind solutions in terms of
voice clarity, extensive nationwide network coverage and multiple global
partners for international roaming. It has the widest International Roaming
coverage in Bangladesh connecting 600 operators across more than 200 countries.
Its customer centric solution includes value added services (VAS), quality
customer care, easy access call centers, digital network security and flexible
tariff rates.
Products
offered:
Robi 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
and services such as, SMS, GPRS, EDGE, international roaming, SMS banking,
Caller Ring Back Tone, MMS, Voice Greetings, Call Blocking on 4 August 2008,
which give subscriber to control which call he or she receive or not and
Bengali SMS. Robi has got the widest international roaming coverage among all
the operators in Bangladesh.
Customer
Care:
Robi has 21
Customer Care Centers and 430 Robi Care Points in 64 districts all over the
country. Robi has over 25,000 retail along with 100,000 voucher sales point all
over Bangladesh.
Corporate
Social Responsibility (CSR):
English in
schools: English in schools, the biggest ever CSR project in Robi’s
history is a language learning program in partnership with The Daily Star to
promote English language learning are secondary schools across the country. The
ground of this huge project lies on the extremely low English literacy rate
(not more that 1%). The major reason behind a huge number of ‘drop out’ from
schools is also poor performance in English.
Protibondhita
Korbo Joy: With the pledge
‘Protibondhita Korbo Joy, Ai Hok Prottoi’, is providing support to the
underprivileged people of the society with a view to turning disability into
ability. In the first phase, Robi is providing support to the Clubfeet children
(Clubfeet is a birth defect with twisted foot (inverted). Without treatment,
persons afflicted often appear to walk on their ankles, or on the sides of
their feet. It is a common birth defect, occurring in about one in every 1,000
births).To combat disability and to create awareness among the mass, Robi has
partnered with Impact Foundation Bangladesh, a charitable trust based in
England, who has specialized hospitals for this treatment in Kustia, Meherpur
and a floating hospital ‘Jibontori’. Here, the patients are treated by the
doctor’s team from England and Belgium. As this is an avoidable disability,
Robi believes, awareness and on time treatment can help these patients to stand
on their own feet and thus have a better life.
Robi Computer
Corner: In line with Government’s ‘Digital Bangladesh vision 2021’,
is working towards increasing IT literacy as well as access to information
highway. For mass people. Along with providing internet connectivity for the
mass education, is facilitating the rural and suburban colleges with computers.
While running the program for the rural colleges across the country, has mapped
this program into a 2 year plan to reach 64 districts of Bangladesh focusing
mainly on the Women’s colleges to increase the rate of IT literacy among the
female students.
Awards/
Achievements:
Achievements in 2011 and 2010:
- Robi
Axiata Limited, the leading mobile phone operator of the nation, has
received “Star News HR EXCELLENCE AWARDS FOR INNOVATION IN HR”. - Leading
mobile phone service provider Robi has been re-assessed and rewarded with
ISO 9001:2008 certification. Robi received this internationally renowned
Management Standard after complying with all requirements. - Robi
has been conferred the prestigious Frost & Sullivan Asia Pacific ICT
Award 2010 for “Emerging Market Service Provider of the Year”.
Other Achievements:
- Awarded
the prestigious fund grant from GSMA MMU (Mobile Money for the Unbanked)
in 2009. - Crossing
10 million subscribers mark in 2009. - Ranked
within top 6 global comparable telecom in A.T. Kearney benchmarking
exercise in 2009. - Cost
optimization project saved 2 times of what was projected. - Bangladesh
Mobile Phone Businessmen Association (BMBA) Award 2008-2009 as the best
service provider in Bangladesh - The
Weekly Financial Mirror –Samsung Mobile & Robintex Business Award
2008-2009 as the best Telecommunication Company. - TeleLink
Telecommunication Award 2007 TeleLink Telecommunication Award 2007″
for its excellence in service, corporate social responsibilities and
dealership management for the year 2006 in commemoration of WORLD
Telecommunication Day 2007. - Arthakantha
Business Award Given by the national fortnightly business magazine of
Bangladesh for its excellence in service in telecom sector. - Financial
Mirror Businessmen Award Given by the national weekly Tabloid business
magazine. - Deshbandhu
C. R. Das Gold Medal For contribution to telecom sector in Bangladesh. - Beatification
Award for exceptional contribution to the Dhaka Metropolitan city from
Prime Minister Office on 13th SAARC Summit. - Standard
Chartered – Financial Express Corporate Social Responsibility (CSR) Awards
2006 For contribution in Education, Primary Health, poverty alleviation
and ecological impact. - Arthokontho
Business Award 2006 for better telecom service provider in Bangladesh. - Financial
Mirror & Robintex Business award 2006 for its excellence in service,
corporate social responsibilities activities throughout Bangladesh. - Desher
Kagoj Business Award 2006 For Corporate Social Responsibilities
activities. - TeleLink
Telecommunication Award 2005 for its excellence in service for the year
2005.
2.4.4. Pacific
Bangladesh Telephone Ltd.: Branded as Citycell:
|
Type |
Limited |
|
Industry |
Telecommunication |
|
Founded |
1989 |
|
Headquarters |
8th Floor |
|
Key people |
Mehboob |
|
Products |
Telephony, |
|
Revenue |
891Million |
|
Parent |
Pacific |
|
Website |
www.citycell.com |
Citycell
(Pacific Bangladesh Telecom Limited) is the first mobile communications company
of Bangladesh. It is the only CDMA network operator in the country. As of 1
March 2008, Citycell’s total mobile subscriber base is 1.56 million, up 137 per
cent or 680,000 from two years ago, giving it the best growth rate 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.
By the end of
2007 Citycell had refurbished its old brand identity and introduced a new logo
and corporate identity; the new logo is very reminiscent of the old logo.
However the slogan has remained unchanged “because we care”
As of July,
2008 Citycell has 1.67 million subscribers.
History:
In 1989
Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular,
paging, and other wireless communication networks. Then in 1990 Hutchison
Bangladesh Telecom Limited (HBTL) was incorporated in Bangladesh as a joint
venture between BTL and Hutchison Telecommunications (Bangladesh) Limited. HBTL
began commercial operation in Dhaka using the AMPS mobile technology in 1993 and
became the 1st cellular operator in South Asia. Later that year Pacific Motors
bought 50% of BTL. By 1996 HBTL was renamed as Pacific Bangladesh Telecom
Limited (PBTL) and launched the brand name “Citycell Digital” to
market its cellular products.
Products
Offered:
Citycell offers
prepaid, post-paid and fixed phone plans. Since Citycell operates in CDMA,
RIM’sare usually sold with a phone mostly cheap Chinese set produced by ZTE,
Huawei, Samsung, Motorola and Alcatel. Citycell currently has the cheapest
phone connection tariff at 1399 taka.
Prepaid:
The current
only prepaid plan is branded as Citycell One. Citycell started offering prepaid
plans from 2003. It was the first to offer a prepaid plan with BTTB
connectivity in the same year. In 2005, it launched the Aalap Call Me plan- the
first phone plan with negative tariff in the country. In this plan customers
get credit added to their balance when they receive calls from other Citycell
subscribers. In the same year, Citycell launched Aalap Super plan. Subscribers
of this plan could make free calls to other Citycell subscribers during late
night hours. This espoused numerous copycat products from its competitors.
Later that year the national telecoms regulator ordered all phone companies to
cease offering free call facility. In 2006, Citycell launched Hello 0123 plan.
The name 0123 signified tariff of Tk 0 for calls to one Citycell number of the subscriber’s
choice, Tk 1 for calls to two other Citycell numbers, Tk 2 for calls to all
other Citycell numbers and Tk 3 for calls to all other networks. This plan was
followed up with a string of other spinoff plans that continued into 2007.
Instant Load:
As advertised in June 2008, Citycell became the first mobile
operator to sign up for Instant Load. Instant Load is a joint effort from Dutch
Bangla Bank and Citycell that lets pre-paid account holders top up their phone
through SMS anytime, without the need to visit any store or purchase any
minutes. This service is being offered free-of-charge and it is the first
service of its type in Bangladesh.
After receiving
the SMS, Citycell automatically withdraws the desired amount from the bank
account instantly. It is not known if the service is applicable for post-paid
users.
Post-paid:
The post-paid
plan is branded as Citycell One. The Postpaid subscribers enjoy 4 FnF
numbers to other operators, 30 sec pulse applicable for all outgoing, Zoom Data
service etc. in additional.
Recently in
Int. Trade fair 2009, Citycell Introduced a new postpaid service called
VOICE-DATA plan with cheaper tariff voice call and sms on any operator and BTTB
(NWD) and 0.25 Tk/minute voice call and sms on any Citycell Number.
Citycell
Zoom
Citycell Zoom
is a data plan where the customer receives an internet dongle to surf the web
where ever the Citycell network is present. Customers have a choice of Citycell
Zoom and Citycell Zoom Ultra. Zoom comes with a choice of prepaid or postpaid.
Zoom comes with either one of two models, Huawei EC321 or ZTE MG880+. Zoom
Ultra uses better technology particularly it uses EV-DO technology.
ZTE Ultra Modem
AC2726 is the dongle given with Zoom Ultra. Citycell Zoom along with
Grameenphone’s version of this technology is regarded as the best in the
portable internet service section in Bangladesh.
Customer
Care Centre:
There are 6
Customer care centers of Citycell in the country. One for each division and
there are another 500 Customer care Points scattered around the country.
2.4.5. Airtel
Bangla Ltd. Branded as Airtel:
|
Type |
Private |
|
Industry |
Telecommunication |
|
Founded |
2005 |
|
Headquarters |
House 34, |
|
Key people |
Chris Tobit, |
|
Products |
Telephony, |
|
Revenue |
US$ 2.58 |
|
Parent |
Bharti Airtel |
|
Website |
www.bd.airtel.com |
Airtel
Bangladesh Ltd. is a GSM-based cellular operator in Bangladesh. Airtel
Bangladesh is the sixth mobile phone carrier to enter the Bangladesh market,
and launched commercial operations on May 10, 2007. Warid Telecom International
LLC, an Abu Dhabi based consortium, sold a majority 70% stake in the company to
India’s Bharti Airtel Limited for US$300 million. Bharti Airtel Limited will
take management control of the company and its board, and rebranded the
company’s services under its own Airtel brand from 20 December 2010. The
Bangladesh Telecommunication Regulatory Commission approved the deal on Jan 4,
2010.
In January
2010, Bharti Airtel Limited, Asia’s leading integrated telecom services
provider, acquired 70% stake in Warid Telecom, Bangladesh, a subsidiary of the
UAE-based Abu Dhabi Group.
History
of Airtel:
In December
2005, Warid Telecom International LLC paid US$ 50 million to obtain a GSM
license from the BTRC and became the sixth mobile phone operator in Bangladesh.
In a press
conference on August 17, 2006, Warid announced that its network would be
activated two months ahead of schedule, in October, 2006. Again in October,
2006 Warid Telecom put off the launch of its cellphone services in Bangladesh
until April, 2007 after its major supplier Nokia walked out on an agreement
over a payment dispute.
Warid had a
soft launch at the end of January 2007. It gave away complimentary
subscriptions among a selected group of individuals, whose job was to make
‘test calls’ and the operator adjusted its network’s quality based on their
comments.
On May 9, 2007,
Warid in an advertisement in some daily newspaper stated that it would be
launching publicly on May 10, 2007. However, no call rate or any package
details were revealed. The advertisement included an announcement for the
people interested to buy Warid connections to bring the documents like ID card,
etc., to the designated franchise and customer care centres.
On October 1,
2007, Warid Telecom expanded its network to five more districts raising total
number of districts under Warid coverage to 56, said a press release.
Mymensingh, Jamalpur, Sherpur, Rajbari and Narail towns were covered by Warid
network.
On November 10,
2007, 61 districts under Warid network coverage.
On June 10,
2008, Warid Telecom expanded its network to 3 more districts Bandarban,
Khagrachhari and Rangamati. Now all 64 districts of Bangladesh are under Warid
network coverage meaning Warid Telecom now has nationwide coverage.
On December 20,
2010, Warid Telecom was rebranded to Airtel.
Products
Offered:
Airtel provides
both post-paid and pre-paid connection plans. The post-paid plan is branded and
marketed across the country under the name airtel Postpaid, which means
leader or royalty. The pre-paid segment is branded and marketed as airtel
Prepaid.
The Airtel
Prepaid category is divided into four segments:
- Adda
- Golpo
- Kotha
- Foorti
Airtel
Post-paid and Airtel Prepaid user enjoy various value added services (VAS),
such as SMS, MMS, GPRS, 64K SIM, Dual SIM product, Corporate packages for
product advertising via SMS, and a host of other features. However,
International Roaming is available only to Warid post-paid users.
Customer care
Centers:
Airtel has ten
customer care centers around the country, which is known as ‘airtel experience
center (AEC), located at key locations. These centers are directly run by
Airtel itself.
Airtel has
another 120 dealer outlet spread across Bangladesh, the largest chain of retail
outlets in the country, which is further backed up by a chain of sub-dealers,
affinity partners & distributors. Dealer outlets of airtel known as
“airtel relationship Center (ARC)”
SIM Cards,
Scratch Cards and sometimes mobile sets are sold at these outlets. Bill
collection 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 designated areas.
2.4.6. Teletalk
Bangladesh Ltd.: Branded as Teletalk:
|
Type |
Public |
|
Industry |
Cellular |
|
Founded |
2004 |
|
Headquarters |
House no: 41, |
|
Products |
Telephony, |
|
Website |
www.teletalk.com.bd |
Teletalk
Bangladesh Limited brand name “Teletalk” is a
GSM based state-owned mobile phone company in Bangladesh. TeleTalk started
operating on 29 December 2004. It is a Public Limited Company of Bangladesh
Government, the state-owned telephone operator. TeleTalk provide GPRS and EDGE
internet connectivity and got the license from Government to start the 3G which
is the latest cellular information service. Teletalk is the first operator in
the country that gave BTTB (now BTCL) incoming facility to its subscribers.
The mission
statement of Tele Talk is “Desher Taka Deshey Rakhun” (“Keep
your Money in your Country”).
TeleTalk is the
6th largest mobile phone operator in Bangladesh with 1.147 million subscribers
as up to July, 2010.
Services:
1. Prepaid
packages
- Shadheen66
- Standard
- Shadheen
- Shapla (1 Second pulse)
- Bijoy (1 Second pulse)
- Agami (Only for GPA5 holder in HSC exam)
- Ekush
2. Postpaid
packages
- Standard/ Rajanigandha
- Shapla
3. Corporate
service
- Prepaid packages
- Post-paid packages
4. Mobile
internet service
Achievements:
Teletalk is the
only operator in Bangladesh (Owner: 100% Bangladesh Government) with 100%
native technical and engineering human resource base.
MARKETING STRATEGIES
(SEGMENTATION,
TARGET MARKET, POSITIONING, MARKETING MIX)
3.1. Marketing
Strategies: Marketing strategies of telecommunication industry in
Bangladesh are as follows:
·
Segmentation: The telecom industry of Bangladesh tends to target the
country’s entire population as a single segment, but varies its product in
terms of augmented features and benefits to appeal to distinctive segments of
customers within that one segment. While all the players in the industry
attempts to compete with each other in all segments, they usually tend to
target heavily the segment in which their primary core competency. Bangladesh telecommunication industry segments the industry by
following criteria.
□ The Everyday
User: Usually more interested in cheaper
rates and good connectivity, this segment comprises of a large portion of customers
(other than businesses) as it more or less includes any one and every one. This
segment of users are often responsible for causing operators to go into price
wars, as lower prices mean more customers. This segment often shows little
loyalty to operators as they frequently change connections to find cheaper
rates.
□ The Corporate
or Business User: Target customers of this segment are
of course all small, medium and large business houses in the country. This
segment understandably contributes the significant portion of subscribers in
terms of network usage and value for the industry. Most operators go into
partnership programs with companies in order to provide all necessary products
and services usually at reduced or corporate prices and with augmented benefits
in order to foster profitable, long term relationships. Demands of this segment
usually include Internet Connectivity (EDGE, GPRS etc.), Short Messaging
Service (SMS), Email and other web application services (Blackberry Server) and
efficient service.
□ The Student User:
Comprised of individuals that are studying in schools, colleges and
universities, this segment is a hot prospect for operators as need for these
users to stay connected to their friends is top priority. This segment can be
considered to be a sub-segment of the everyday user, but their demands often
include other advanced features such as Short Messaging Service (SMS), Internet
connectivity (EDGE, GPRS etc.) and bonus talk times. Operators such as
GrameenPhone introduced an additional product variant in the form of
“dJuice” just for this segment.
□ The Couples
User: Recognizing the need for couples to talk frequently with
each other, some operators have come up with offers that target married or
unmarried couples or any two individuals that need to keep constant contact
with each other. Each package contains two connections, so that each half of
the pair may contact the other at highly reduced rates.
□ The Rural User:
Recognized early on by GrameenPhone, the demand of this segment is almost
solely of the purest form: connectivity. Living in rural, dispersed, heavily
underdeveloped areas, the individuals of this segment have a hard time keeping
contact with their friends and relatives. The primary type of product that
target these customers revolve around offering good connectivity in hard to
reach localities and low call rates to increase affordability.
□ The Internet
User: While Internet Connectivity is now incorporated (or
optionally incorporable) in almost all products of the industry, there are some
users who are turning to telecom operators solely for Internet connectivity
through the use of mobile (or modem) devices. The primary attraction that
operators provide to this segment is the portability of such devices. In an era
of information on the go, the need for wireless connectivity to the internet is
in high demand, and portable wireless connectivity devices such as Citycell’s
ZOOM and GrameenPhone’s & Banglalink’s EDGE modem have taken advantage of
the situation.
·
Target Market: Target market of telecommunication industry in Bangladesh as according
to company base.
For
example:
Grameenphone targeted the
market according to the network base. The people who want continuing network
all the time, Grameenphone target that kind of people. Grameenphone targeted
young generation precisely. That’s why they created new segment named Djuice.
Banglalink targeted the
market according to the customer choice. That’s why they are giving the offer
to the subscribers according to their choices. Banglalink also target
the market for the professional people. That’s why they create Professional
Package.
Teletalk targeted the young
generation. They called the name is Ekush. Call rate, sms packages,
internet packages, mms packages are different from other target market.
Citycell targeted the people
who want to talk with fnf number. That’s why they charges citycell to citycell
voice call rate is 25 paisa. Their slogan is “Why FnF?”
·
Positioning: The positioning strategies of telecom company in telecom industry are
as follows.
□ Grameenphone: The positioning strategies of Grameenphone try to create image or
identity of its own in the mind of subscribers of its network.
For example: Grameenphone try to create its product and brand image in the minds of
their target market through the services and commitment. Grameenphone take the
place in its subscribers mind by providing good network service.
□ Banglalink: The
positioning strategies of Banglalink try to create image or identity of its own
in the mind of its subscribers.
For example: Banglalink try to create its product and brand image in the minds of
their target market through the call services and bonus services on usages.
Banglalink also took place in the mind of it’s subscribers by providing
customer services frequently
□ Robi: The positioning
strategies of Robi try to create image or identity of its own in the mind of
its subscribers.
For example: Robi trying to create its product and brand image in the minds of their
target market through the SMS services, low call rate and low internet rate
from it’s competitors.
□ Airtel: For positioning strategies Airtel
giving different types of services.
For example: Airtel giving different types of
bonus to its subscribers. Bonuses given as talk time, sms, mms, and internet
packages.
□ Teletalk: Teletalk gives
different types offer to its subscribers for create position in the mind of its
subscribers.
For example: Teletalk gives the offer in different national and cultural occasion
like Pohela Boisakh, Eid-Ul-Fitr, Eid-Ul-Azha, Shaheed Day, Independent Day,
Victory Day, Durga Puja etc.
□ Citycell: Citycell gives
different types of offers and packages to its subscribers for creating its
brand, products and services in the mind of its current and potential
subscribers.
For example: Citycell gives different types of packages and offer to its
subscribers.
·
Marketing Mix: Marketing mix of the telecommunication industry is as follows.
For analyzing
the marketing mix of telecommunication, this paper has to analyze the Product,
Price, Place and Promotion of telecommunication industry. Whether, the topic is
telecommunication sector of Bangladesh, that’s why this paper analyzing
marketing strategies of Telecom Company in Bangladesh.
- Product:
□ Brand Name: The brand
names of telecom company are Grameenphone, Banglalink, Robi, Airtel, Teletalk
and Citycell.
□ Service Variety: The services of telecom
industry are SIM Card, Talk Time, Short Message Service, Multimedia Message Service, Internet
Package, Internet Modem and Helpline etc.
- Price:
□ Connection price:
Connection price are above the reach of average people of the country.
□ Call rates and network charges:
Call rates and network charges were also high. But now scenario has changed
significantly. A pre-paid connection can be purchased within 200 Taka, where a
post-paid connection can be purchased within 1000 Taka.
□ Call rates: Call rates
vary from package to package. There are differences in call charges in various
times of a day. But on an average it’s now 1 Taka per minute for voice call.
SMS charge less than 1 Taka per SMS for some operators.
□ Internet services:
There are various rates for various packages of Internet services. It can be on
volume basis (dependant on bytes downloaded or transferred) or at fixed rates.
In most cases, the average rate per kilobyte is around Taka. 0.02.
- Place:
□ Channels: Telecom operator’s have own channel to
properly distribute their products and services.
□ Location: As a regular practice telecom
operator firstly cover the major cities including Dhaka, Chittagong, Khulna,
Comilla, Rajshahi and other major cities of Bangladesh. Then they went for mass
distribution of their services all over the country.
- Promotion:
□ Sales Promotion: Telecom operators provided shot-term incentives to encourage
and purchase or sale of their services.
□ Advertising:
Telecom
operators invested huge amount of money for new advertising. They are giving
advertisement through TV media, newspaper, billboard, popular magazine,
internet, e-mail, posturing, promotional events and newsletters etc.
□ Public Relation: For building good image of the Telecom industry &
customer equity they are arranging promotional activities concerning social
welfare. As part of this issue, they launch different campaign.
PROBLEMS OF TELECOMMUNICATION
4.1. Problems
of Telecommunication:
There are so
many problems in the sector of telecommunication in Bangladesh. Those are as
follows:
4.1.1) Costing: The cost of telecommunication charges
in Bangladesh is so much high. For absence of proper monitoring of regulatory
authority of the telecom sector, operator of mobile telecommunication charges
high.
4.1.2) Network: Now-a-days the network frequency of the mobile operator in Bangladesh
is so much poor. For that reason, subscribers of the operator’s can’t use the
cell phone properly.
4.1.3)
Confusing Offer: The mobile operators give various
Value Added Service offer to the subscribers. But the problem is that, first
time those offer are not clear to the subscriber. That’s why, subscribers using
the service in doubt. If Operator give the Value Added Service offer to the
subscriber, then it should be clear.
4.1.4) Internet
Service: Though, most of mobile operators
have optical fiber and other infrastructure, they can’t give the internet
service to the subscriber time to time. The costs of internet charges are high
then the service.
4.1.5)
Changes of Government Policy Time to Time: When Operator of the mobile phone takes any initiative for the
subscriber, then Government change the policy for different reason. Then
Operators have to change the Company policy for the Subscribers.
4.1.6)
Bureaucracy Problem: The problem of bureaucracy in
Bangladesh is so much. When any project or tasks have to be happening, then
bureaucratic people can’t complete the tasks in proper time. They have to
complete the tasks as given before.
4.1.7)
Technological Problem: The telecommunication market is
expanding day by day. But it can’t expand properly for the technological
problem. For giving the service to the subscriber properly, Mobile operators
don’t have the physical network as they need. For not increasing the physical
network, subscribers are not fully satisfied to the services of the operators.
4.1.8)
Bandwidth Limitation: For limitation of the Bandwidth of the frequency, operators can’t give
the service to the subscriber properly. If Government distribute the Bandwidth
of the frequency to the operator under the policy then it will be easy for the
operator for giving the service.
4.1.9)
Lack of Local Entrepreneur: For lack of
local entrepreneur general subscribers of Phone operator can not get as they
wish. For absence of local entrepreneur, total earning revenue passing away
from the country.
4.1.10)
Technological Dependency: Now a day of
technological revolution, even our country also have to depend on the
technology of other countries. For the lack of sponsor and entrepreneur the
dependency for the technology is high.
4.1.11)
Lack of Proper Supervision: For proper
supervision of the industry the rules and regulation of the authority are very
much poor. That’s why many company misusing the lack of supervising.
4.1.12)
Misuse of VOIP: Many company misusing the Voice
Over Internet Protocol (VOIP) system. The gap between authority and company is
so much high. For misusing the VOIP many company got different types of penalty
time to time.
4.1.13)
Glass Ceiling Barrier by Government Owned Firm: For continue the business of telecommunication in Bangladesh, there are
some glass ceiling barrier by Government owned firm, Teletalk. Government and
the regulatory authority giving all types of benefit to that firm and do the
negligence for giving the benefit to the other organization.
4.1.14)
Barriers to Entry: There are some barriers to enter the
market of telecommunication in Bangladesh. Government and regulatory authority
take the policy for doing business for foreign company are so much hard time to
time.
4.1.15)
Threat from Substitute Products: There are
various products and services of telecommunication in the industry. There are
some threats from the substitute products of the industry. Sometime one product
becomes the competitor of another product.
Problem:
Grameenphone:
4.2.1.
Costing: The costing of
using Grameenphone SIM is very much high rather then its rivals.
4.2.2.
Network: The network
coverage of Grameenphone is so much good, but sometime it disturbs so much.
4.2.3. Confusing
Offer: Sometime Grameenphone give confusing offer. Subscriber
can’t understand all types of offer that they offered. Then subscriber gives
call to helpline for understanding about the offer.
Banglalink:
4.3.1. Costing:
The
costing of using Banglalink SIM is high. Subscribers of the operator
dissatisfies about the costs of call charge and other charges.
4.3.2.
Confusing Offer:
Banglalink gives confused offer sometime.
4.3.3.
Network: The network
condition of Banglalink operator is week rather than its rival.
4.3.4.
Internet Service: The
internet service of Banglalink operator is very much week. The cost of internet
service is reasonable, but service quality is not so much satisfactory.
4.3.5.
Aggressive SMS:
Banglalink operator sometime gives aggressive Short Message Service (SMS).
Airtel:
4.4.1.
Very Week Network: The
network condition of Airtel operator is week rather than its rival.
4.4.2.
Aggressive SMS:
Airtel operator sometime gives aggressive Short Message Service (SMS).
Robi:
4.5.1.
Network Disturbance:
Robi’s network system is good, but it make disturbance when subscriber made a
voice call.
Citycell:
4.6.1.
CDMA: The main
problem of Citycell Company is the operating system is CDMA (Code Division Multiple Access). General subscribers of mobile
operator much prefer GSM rather than CDMA.
4.6.2.
Handset Problem: For
using CDMA network, subscribers have to use CDMA enable handset. But in market
there are some lacks of modern CDMA handset like smart phone.
4.6.3.
Costing (Low Customer, That’s why): The
costing of using Citycell to Citycell is low, but for others operators its
costs high rather than others.
PROSPECTS
OF TELECOMMUNICATION
5.1.
Prospects of Telecommunication: Though there
are so many problems in the sector of telecommunication in Bangladesh, there
are some prospects also in this sector. Those are as follows.
1)
Unsaturated Industry: The position of telecommunication
industry in Bangladesh is now unsaturated. Industry of telecommunication can
grow more in the market of Bangladesh.
2)
Potential Earning Source of Government Revenue: From telecommunication sector government can earn more revenue. The
users, services, competition, market demand high of this sector. That’s why
government can create the earning source of revenue.
3)
Density of Population (User): Density of population of the country
increasing day by day. If population increasing then the user of the cell phone
also increasing. There are prospects of the mobile phone operators for doing
the business in the sector.
4)
Developing Economy (SME): Economy of the
country is developing. For the reason of developing economy there so many
prospect for doing the business and social welfare for the society. The
government and also private organization giving the Small and Medium Enterprise
(SME) loan for doing the business and social welfare.
5)
Future Probability of Adopting High Level Technology: There are some probabilities of adopting high level technology for the
industry. Future technology like 3G and 4G network and other hi technology of
telecommunication industry can adopt the industry.
6)
Employment Generation: There is so much prospect of
employment generation in the sector of telecommunication. Unemployment can be
reduced so much by the employment in this sector.
7)
Complete Communication Package: There is the
prospect of giving complete communication package to the subscriber of
telecommunication of Bangladesh. Telecom operators can arrange the special
platform for giving the total communication package to the telecom subscribers.
8) More
Value Added Services: More value added services of the
telecom sector can be added to the existing and prospect subscribers of the
telecom industry.
9) Bargaining
Power of Suppliers: The bargaining
power of suppliers in the industry is strong in some cases if not in all. If
the telecom operators had to design the products on the whims of the suppliers
because their output is unique, then the suppliers would enjoy absolute
advantage in terms of bargaining power. But here this is not the case. Again,
since the number of the suppliers is very limited say NOKIA & Ericsson and
a handful number of network administrators, they (the suppliers) have this
power to leverage on this, because this is limiting the choice of the operators
and making the switching cost very high for them.
10) Bargaining
Power of Customers: In our country
the customers have absolute bargaining power. Because there are a number of
operators in the market, the cost for switching loyalty is very low. Customers
may want to switch from one operator to another for a better deal. Nothing can
restrict this trend. In fact what we see is that every customer nowadays uses
more than one mobile phone or at least owns more than one connection, and use
them interchangeably. This trend is especially very dominant among the
teenagers who constitute a major portion of the market share, and on the other
hand are also very sensitive to price. This phenomenon of subscribing to more
than one operator, needless to say, has sparked a boom for another kind of
mobile hand set that enables customers to use dual SIMS in one handset. And
mobile phone companies, such as Samsung and Spice, by understanding this need
of the consumer have come up with phones with this feature. This shows how
powerful consumers are in this industry as trend-setters and this applies to
every aspect of the business ranging from the designing of the products to
pricing them.
11) Potential
Entrants: Potential direct entrants (entrants focusing on directly
coming into the country) to the telecom industry in Bangladesh is relatively
restricted at the moment, due to control over licenses. However, recently
companies are finding other ways to penetrate the industry, that is, through
merging with existing market members. Recently Airtel merged with Warid Telecom
through acquisition of majority share in order to enter the Bangladesh market.
Other potential entrants who may be interested to come to Bangladesh include
Reliance Telecom and Tata Indicom.
FINDINGS
6.1.
Findings: The findings of this report are as
follows:
·
Telecommunication
Sector is contributing a major portion to our economic growth.
·
The cost of telecommunication
charges in Bangladesh is so much high.
·
In Bangladesh the potentiality of telecommunication sector is bright.
·
Competition is very high in telecommunication industry.
·
Now-a-days the network frequency of
the mobile operator in Bangladesh is so much poor.
·
The mobile operators give various
types of confusing offers to its subscribers.
·
The costs of internet charges are
high then the service.
·
Marketing and promotion of telecommunication industry is quite good.
·
When Operator of the mobile phone
takes any initiative for the subscriber, then Government change the policy for
different reason.
·
When any project or tasks have to be
happening, then bureaucratic people can’t complete the tasks in proper time.
·
The market leader of telecommunication industry is Grameenphone.
·
The telecommunication market is
expanding day by day. But it can’t expand properly for the technological
problem.
·
For limitation of the Bandwidth of
the frequency, operators can’t give the service to the subscriber properly.
·
For lack of local entrepreneur
general subscribers of Phone operator can not get as they wish.
·
Now a day of technological
revolution, even our country also have to depend on the technology of other
countries.
·
For proper supervision of the
industry the rules and regulation of the authority are very much poor.
·
Many company misusing the Voice Over
Internet Protocol (VOIP) system.
·
For continue the business of
telecommunication in Bangladesh, there are some glass ceiling barrier by
Government owned firm, Teletalk.
·
Government and regulatory authority
take the policy for doing business for foreign company are so much hard time to
time.
·
There are some threats from the
substitute products of the industry. Sometime one product becomes the
competitor of another product
CONCLUSION
7.1.
Conclusion:
The sector of telecommunication
industry in Bangladesh is emerging day by day. Though there are some problems
in the sector of telecommunication in Bangladesh, there are some prospects also
have. If all telecom operator come in one platform for giving better service to
all types of subscribers, then total industry will able to earn more profit and
confidence of general subscribers.
The buyer is
powerful in the industry, but since the market is growing largely, it will be
easy for the company to hold its own share, because of poverty; the population
will be unlikely to avail the switching cost. And this also reduces the risk of
high availability of substitutes. The supplier is not powerful in this case
which is a plus for the company and the company can play with the price to keep
the production cost low. Since the market is yet to be matured and growing very
fast, the assumption that the suppliers companies are also increasing. Some
multinational companies are showing their interest to enter into the market.
This can lead some new suppliers to arrive into the market and make the
environment more competitive. So at some stage the bargaining power of the
suppliers will become very low.
So from the above discussion, it can be said that the
Bangladesh telecom market has a lot of potential to offer considering
strategically ignorable or somehow alterable threats. The market looks very
potential and prospective. Lots of opportunities are waiting.
Bangladesh has cheap skilled and willing to be skilled
labor. Communication infrastructure 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 the market. As the industry is becoming
bigger, availability of supporting industries are increasing and already there
are lots of supporting companies in the market. And finally the government
policies are very welcoming and liberal.
All these emerging concerns and phenomena in the industry
offer both merits and demerits to the operators at the same time. In the face
of this new move towards mobile apps business, telecom operators throughout the
world share a common fate of becoming mere conduits to the successful
application stores of others in one hand, and due to the hard competition among
the operators, this phenomenon also provides numerous opportunities to stand
out from the crowd. On the other hand, especially in emerging markets like
ours. It may put so many existing powerful players out of their business and
may give the business to the new entrants. In light of this reality, the
operators have got two simple choices: as to whether to adapt to this
revolutionary trend by incorporating mobile application in every offering and
reap the substantial advantage out of it or to bear the brunt of losing
business. Similarly, excessive flexibility in regulations may sometimes put a
greater interest of the nation at risk. So check and balance on the part of the
government are the keys. The future surely holds a lot more shocks and
surprises for us to witness.
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