Report on Telecommunication Industry of Bangladesh (A Study on Teletalk Bangladesh Limited).

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Report on Telecommunication Industry of Bangladesh

(A Study on Teletalk Bangladesh Limited).

HISTORY OF TELECOMMUNICATION INDUSTRY IN BANGLADESH

1.0 Introduction

The Telegraph branch under the Posts and Telegraph Department was created in 1853 in British India and was regulated afterward under the Telegraph act of 1885. Pakistan Telegraph and Telephone Department was constructed in 1962. After the independence of the People’s Republic of Bangladesh in 1971, Bangladesh Telegraph and Telephone department was set up under the Ministry of Posts and Telecommunications. This was converted into a corporate body named ‘Telegraph and Telephone Board’ by promulgation of Telegraph and Telephone Board Ordinance, 1975. On 24th February, 1979; Telegraph and Telephone Board was converted to “Bangladesh Telegraph and Telephone Board (BTTB)” as a Government Board.

2.0 Gradual Advancement of the Telecom Sector in Bangladesh

2.1.1 At the time of Independence

Ø Full Government Monopoly

Ø Few analog exchanges

Ø Some CB (Central Battery) exchanges

Ø National transmission with physical lines, VHF radios, and 2 number Microwave (M/W) routes

Ø Overseas communication through low capacity High Frequency (HF) system

Ø Services provided mainly – telegraph & telephony

2.1.2 Developments in BTTB from 1973-85

Ø Standard ‘A’ Earth Station at Betbunia, Rangamati

Ø First digital International Trunk Automatic Exchange (ITX) at Moghbazar, Dhaka

Ø First digital Trunk Automatic Exchange (TAX) at 4 towns namely Dhaka, Chittagong, Khulna and Bogra

Ø Standard ‘B’ Earth Station at Talibabad, Gazipur

Ø Analog microwave routes at 9 districts

Ø VHF analog multi-access radio telephone to connect remote important subscribers and rural Public Call Offices (PCOs).

2.1.3 Developments in BTTB from 1986-95

Ø First digital telephone subscribers: 26000 lines in Dhaka in 1989

Ø First digital PDH (140 Mbps) Microwave at 17 district towns

Ø Telecom Staff College at Gazipur

Ø UHF radio links to inter-connecting upazillas to district.

Ø Standard ‘A’ Earth Station at Mahakhali, Dhaka.

Ø New ITX (digital) at Mahakhali, Dhaka

Ø Digital Exchanges at 5 cities : Dhaka, Chittagong, Khulna, Rajshahi and Sylhet

Ø Digital radio multi access subscribers system (DRMASS): Dhaka, Chittagong and Moulavibazar.

2.1.4 Developments of other operators

Ø At the end of government monopoly, license was given to private telecom operators: multi-operator environment begins.

Ø License awarded to two private operators in 1989 to operate PSTN system in the upazilla level throughout the country.

Ø License awarded to one operator to provide paging and radio trucking services in the country.

Ø License awarded in 1990 to one operator to launch mobile phone services.

2.1.5 Other Developments in Telecom sector

Ø Government adopted the Telecommunication Act 2001

Ø Bangladesh Telecommunication Regulatory Commission (BTRC) formed in 2001

Ø Government adopted ICT policy and high powered ICT task force formed

Ø Addition of around 30 lacs mobile subscribers

Ø Mobile phone service in public sector launched (Teletalk Bangladesh Ltd.)

Ø License awarded to several private operators to operate land phone throughout the country.

2.1.6 Comparison of Transformations of Technologies in Bangladesh Telecom Sector

Table-1 Transformations of Technologies in Bangladesh Telecom Sector

Past Future
Analog – Digital Digital – NGN
Electro Mechanical switch – Circuit Switch Circuit Switch- Soft Switch
Physical Line – Microwave Microwave – OFC
Star Network Ring Network
Narrow band Broad band
HF – Satellite Satellite – Submarine cable
Telephone base Data base
Monopoly operation Competitive operation
Operators set up base Customers choice base

2.2 Regulatory Scenario of Telecom Sector In Bangladesh

The state-owned enterprise, Bangladesh Telegraph & Telephone Board (BTTB), enjoyed a complete monopoly in telecom sector and was playing the dual role of operator-cum-regulator.

In mid nineties, the Ministry of Post & Telecommunication (MOPT) gradually took away the regulatory responsibility on to its hand. The government adopted the “National Telecom Policy 1998” and under its guideline formulated “The Telecommunication Act 2001”. The “Bangladesh Telecommunication Regulatory Commission (BTRC)” has started its operation since 31st January 2003.

2.3 Formation of Bangladesh Telecommunication Regulatory Commission (BTRC)

With a view to ensuring a level playing field for all operators in a multi-operator environment, the government in pursuance of the Bangladesh Telecom Act 2001 formed Bangladesh Telecommunication Regulatory Commission (BTRC).

Bangladesh Telecommunication Regulatory Commission (BTRC)is an independent Commission established under the Bangladesh Telecommunication Act, 2001 (Act no. 18 of 2001) published by Parliament in the Bangladesh Gazette, Extraordinary issue of 16th April, 2001. The BTRC started functioning from the 31st January, 2002.

2.5 Mobile Telecommunication in Bangladesh

In 1989 an agreement was signed between BTB and Bangladesh Telecom Limited (BTL) to provide cellular mobile, Riverine telecom, Trunking & Paging.

In early 1990, the license holder BTL signed joint venture agreement with Hutchison Telecom Ltd. to form Hutchison Bangladesh Telecom Limited (HBTL) for Cellular Mobile Operation in Bangladesh. That license was later cancelled after political change in late 90s. So no interconnection was provided by BTTB. HBTL appealed against that in high court.

The first mobile-to-mobile communication started in 1991 with three Base Stations (BTS) at Mogbazar, Uttara & Narayangonj.

In 1993 high court gave a verdict for HBTL and at the same time HBTL was acquired by Pacific group with its new name Pacific Bangladesh Telecom Ltd. (PBTL).

In September 1993, first full-fledged mobile communication (with PSTN connectivity) started in Bangladesh with AMPS (Advanced Mobile Phone System) technology.

In 1996, three other companies (GP, Robi, Banglalink) were given license to operate GSM system in Bangladesh. Two became operative in 1997 and the other in early 1998.

In 2004, BTTB was given license as a GSM Operator which was later transferred to Teletalk Bangladesh Limited. BTRC granted the operator License on 01.09.2004 and also allotted GSM 900 MHz (2 x 5.2 MHz) and later 1800 MHz (2 x 5.4 MHz approximately) frequency.

In December 2005, Warid Telecom was given license as the fifth GSM operator in Bangladesh.

At the advent of mobile telecommunications in the country, private mobile operators, especially CityCell got the monopoly in the mobile market and with that opportunity they sucked the blood from the people of the country. During that time four private mobile operators captured such market to serve people but they could not yet fulfill the public demand of availing the service at lowest possible cost.

Since the demand for mobile phone at the most competitive price was still on hike, the necessity of operating mobile telephone service through public operator was highly felt. Then Government was trying to introduce mobile telephone through BTTB, a public sector organization, as it has the longest experience in the telecom sector, possessing the largest telecom backbone network in the country as well as being the owner of the largest number of telecom installation and infrastructure. All these experience, backbone network, installation and infrastructure are important and valuable resources for any telecom organization.

But till 2004 the fulfillment of that dream of commercial introduction of mobile telephone services through the public sector didn’t come into reality. BTTB initiated a project of supply, installation & commissioning of 10 Lac mobile telephones and finally in the first stage Executive Committee of National Economic Council (ECNEC) approved that project for only 2.5 Lac subscribers. The project will be implemented by BTTB, whereas operation and maintenance will be accomplished by a newly formed public limited company, this was the pre-condition of approving the said project by the Government.

Though the introduction of only 2.5 Lac mobiles through the public sector was numerically very small compared to the million of mobile telephones being operated by other private operators, yet it has opened the gateway of public voice, has started protecting the public interest directly and indirectly and has played a vital role to influence on other mobile operators to act in a way to fulfill public demand.

Short History in Tabular Format

Year Events
1989 BTTB and BTL launched cellular mobile, riverine telecom, trunking & paging.
1990 BTL merged with Hutchison and HBTL started cellular mobile operation.
1993 HBTL acquired by citycell.
1996 GP, ROBI & BANGLALINK got GSM license
2004 BTTB GSM license transferred to Teletalk.
2004 BTRC allotted GSM 900 MHz (2 x 5.2 MHz) and later 1800 MHz (2 x 5.4 MHz approximately) frequency to Teletalk.
2005 Warid Telecom obtained license as 5th GSM operator

2.6 Telecom Infrastructure in Bangladesh

Many foreign investors are now interested to do business in telecom sector in Bangladesh which reveals that Bangladesh has become a significant hub for telecoms. It has been forecasted that the average revenue from telecoms sector will be Tk 1500crore2 a year. Bangladesh is a country which is densely populated and also is a flat and easily extends able coverage.

The infrastructure and Tele-density is low which on the other hand made the market a perfect place for telecom business. The demand is very high and the consumer 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 it is suitable for foreign investment.

Bangladesh has a huge potential in Wi-Max and submarine cable which is a new technology in the country and has attracted the foreign telecom operators. Many foreign telecom operators are coming to Bangladesh to explore the potentiality of the technology. Some interested international telecom operators who want to start a business in Bangladesh are UK-based Orange Telecom, South Korean SK Telecom and UAE’s Etisalat.

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 the country. And to ensure that, the government has taken several attempt. Giving private sector the license for fixed line telephone is one of those attempts. Due to the environmental facts, the foreign entrants should adjust their equipments according to demand of the environment.

2.7 Trend in Telecom Market in Bangladesh

Bangladesh’s mobile phone market has achieved 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 forecast to continue over the coming years.

Recent growth in the Bangladesh mobile market can be attributed to factors such as the deregulation of the telecommunication sector, low levels of Tele-density, inadequate fixed phone infrastructure, high competition of two new operators and, particularly, massive foreign direct investment (FDI) by telecom giants like Telenor, Telekom Malaysia (TM), Orascom, SingTel, and most recently by UAE-based Warid Telecom. Expert explains that foreign operators, in collaboration with local partners, have been working with the infrastructure to remove entry barriers and make mobile telephony more affordable and widen the base of mobile subscribers.

2.8 Telecom Operators in Bangladesh

There are two types of telecom operator in Bangladesh. Like Operator in Fixed Line and Operator in Cellular Mobile. These are given below;

2.8.1 Operator in Fixed Line Telecommunication

01. M/s. Bangladesh Telegraph & Telephone Board.

02. M/s. Bashundhara Communication & Networks Limited.

03. M/s. Ranks Telecom Limited.

04. M/s. Bangla Phone Limited.

05. M/s. Jalalabad Telecom Limited.

06. M/s. Westec Limited (Bay Phone).

07. M/s. Tele Barta Limited.

08. M/s. Dominox Technologies Limited.

09. M/s. GEP Telecom Limited.

10. M/s. One Tel Communication Limited.

11. M/s. Dhaka Telephone Company Limited.

12. M/s. Square Informatix Limited.

13. M/s. National Telecom Limited.

14. M/s. Peoples Telecommunication and Information Service Limited.

15. M/s. S. A. Telecom System Limited.

16. M/s. Nextel Telecom Limited.

17. M/s. Integrated Services Limited (ISL).

2.8.2 Operators in Cellular Mobile Telecommunication

01. M/s. TeleTalk Bangladesh Limited.

02. M/s. Grameen Phone Limited.

03. M/s. Robi Axiata Limited.

04. M/s. Pacific Bangladesh Telecom Limited/ CityCell.

05. M/s. Sheba Telecom (Pvt.) Limited / Banglalink.

06. M/s Warid Telecom international LLC.

The rivals and brief company profile of these rivals

Grameen phone

Grameenphone is a GSM (global system of mobile communication)-based cellular operator in Bangladesh. It has started operations on March 26, 1997. It is partly owned by Telenor (62%) and Grameen Telecom (38%). Grameenphone is the largest and the fastest growing cellular telephone network in Bangladesh. At the end of 2008, it had about 5200 BTS (Base Tower Stations) around the country. Grameenphone’s stated goal is to provide cost-effective and quality cellular services in Bangladesh. According to GP the logo symbolizes trust, reliability, quality and constant progress.

The name of present CEO of GrameenPhone is Odver Heszedal.

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

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

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. Orascom Telecom bought 100% share of Sheba Telecom in 2004 and gave its new name as banglalink.

Banglalink, is the second largest cellular service provider in Bangladesh. It is a wholly owned subsidiary of Orascom Telecom. In August, 2006, banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections.

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 Bangle Tiger in mind, which symbolize to the faster growth. banglalink serves their customers with more than 700 CCP(Customer Care Point). Till now banglalink has invested 6,324 cores BDT. for the development of network and infrastructure.

Nokia-Siemens network & Hawaii provides technological support to banglalink. The tower 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).

Robi

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

It is the third largest mobile phone operator in Bangladesh in terms of revenue and subscribers. In early 2008 Aktel slipped from the second position to the third after facing fierce competition from banglalink.

Robi 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-commerce minister. Robi 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 operator and was placed far behind the industry leader GrameenPhone in terms of revenue and no. of subscribers.

Citycell

Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of Bangladesh. It is the only CDMA (Code division multiple access) network operator in the country. Citycell is currently own by Singtel with 45% stake and the rest 55% owned by Pacific Group and Far East Telecom.

Michel Seymour 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.) The technology used by Citycell is CDMA1X (Code division multiple access). Citycell is consolidating its position in wireless data by launching their Zoom EV-DO (evaluation data optimize) for the broadband wireless internet service. Although CDMA1X technology is the latest technology citycell could not flourishing the companies market position although it was the first company to launch Mobile cellular phones.

Teletalk

Teletalk Bangladesh Limited is a public limited company, registered under the Registrar of the Joint stock companies of Bangladesh. Total shares owned by the Government of the Peoples Republic of Bangladesh. They continue to grow and engage their customers through their clear commitment to offering high quality products and services as well as leading customer retention and loyalty programmers. Teletalk continues to be a part of the revolution that’s connecting millions of Bangladeshi people and around the world.

Teletalk Bangladesh limited was established keeping a specific role in mind. Teletalk has forged ahead and strengthened its path over the years and achieved some feats truly to be proud of, as the only Bangladeshi mobile operator and the only operator with 100% native technical and engineering human resource base, Teletalk thrives to become the true people’s phone – “Amader Phone”.

Warid

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

Warid officially launched their commercial services in Bangladesh on the May 10, 2007 with a GSM Mobile Cellular network covering 64 districts of the country and encompassing 70% of the mobile phone using population- the single largest launch the country 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 in Bangladesh. Warid is adopting Wi-Max which will definitely supported by the 3G (NGN) network

The present CEO of WARID Mr. Munir Farooqui.

2.9 Mobile Subscriber in Bangladesh

The number of mobile subscribers in Bangladesh crossed 65 million in September this year, telecom regulator said.

The active mobile subscriber base in the country reached 65.14 million at the end of September as the six mobile operators added 1.67 million subscribers in the month, , according to the Bangladesh Telecommunication Regulatory Commission statistics. The number of active subscribers was 63.46 million at the end of August after the subscriber base crossed 60million -mark for the first time in July. Although the number of subscribers had passed 65 million, the number of people using mobile phone would be less as many of the subscribers use services of multiple operators, mobile operators said.

Grameenphone subscriber base reached 28.65 million at the end of September as it added 0.73 million clients in the month.

Banglalink added around 0.56 million clients to take its subscriber base to around 18.11 million while the total number of Robi subscribers reached to 11.71 million enlisting some 0.23 million new clients.

Teletalk added around 0.06 million subscribers in September to take its client base to 1.18 million in the month after the company lost subscribers for three consecutive months, June to August, as many of the clients had switched to other operators.

Warid Telecom added 0.16 million subscribers taking the total number to 3.58 million while the lone CDMA operator CityCell lost around 0.07 million customers taking its subscriber base to around 1.91 million.

The total number of mobile subscribers was 34.37 million at the end of 2007, 44.64 million in 2008 and 52.43 million in 2009.

Total Grameen Phone Ltd (GP) subscribers in Bangladesh:

From total 65.14 million mobile subscribers, Grameen phone users are 28.65 million (44%). So it is the market leading mobile phone company in Bangladesh.

Figure 1: Chart of Total GP Subscribers in Bd.

Total Orascom Telecom Bangladesh Limited (Banglalink) subscribers in Bangladesh:

Banglalink users are 28% from total mobile subscribers in Bangladesh.

Figure 2: Chart of Total Banglalink Subscribers in Bd.

Total Robi Axiata Limited (Robi) subscribers in Bangladesh:

Robi users are 18% in total mobile users in Bangladesh.

Figure 3: Chart of Total Robi Subscribers in Bd.

Total PBTL (Citycell) subscribers in Bangladesh:

The CDMA operators are only 4% in total mobile subscribers in Bangladesh.

Figure 4: Chart of Total Citycell Subscribers in Bd.

Total Teletalk Bangladesh Ltd. (Teletalk) subscribers in Bangladesh:

From total mobile subscribers in Bangladesh, 2% subscribers are using Teletalk.

Figure 5: Chart of Total Teletalk Subscribers in Bd.

Total Warid Telecom International L.L.C (Warid) subscribers in Bangladesh:

At present 5% subscribers in total mobile operators are using Warid in Bangladesh.

Figure 6: Chart of Total Warid Subscribers in Bd.

2.10 Bangladesh Mobile Operators Market Share

Below is a table that reflects the current competition of the market. Number of subscribers for the Mobile Phone operators is shown below:

Operators Sep,2007 Sep,2008 Sep,2009 Sep,2010
Grameen Phone Ltd. (GP) 15.14 20.82 21.98 28.654
Robi Axiata Limited 6.70 7.63 10.56 11.707
Sheba Telecom Ltd. (Banglalink) 6.02 10.14 12.13 18.107
PBTL (Citycell) 1.32 1.74 1.97 1.907
Teletalk Bangladesh Ltd. (Teletalk) 0.68 0.9 1.07 1.183
Warid Telecom International L.L.C (Warid) 1.56 3.86 2.69 3.581
Total 31.42 45.09 50.4 65.142

Table 1: Bangladesh Mobile Operator’s Market share

(BTRC 2010)

*subscribers in millions

Figure 7: Chart of Total subscribers (in million)

Here ‘Figure 7’shows that Subscribers of total telecommunication industry are increasing year by year. We can see that Total subscribers were 31.42 million in 2007 and after that it increased at 65.14 million.

BRIEF INTRODUCTION TO TELETALK

3.1 Launching

Teletalk Bangladesh Limited (TBL), jointly sponsored by the Ministry of Post & Telecommunication (MOPT) and Bangladesh Telegraph & Telephone Board (BTTB), came into being on 26th December 2004 with an authorized capital of Tk.20 billion.

3.2 Company Formation

The Project Concept Paper (PCP) of BBTB’s mobile project was approved with the condition of forming a public limited company within six months after the implementation of the project. As per such provisions, the company is in full control of providing services to the subscriber. The name Teletalk Bangladesh Limited was chosen by policy makers on 23rd December’2004 and Logo was also approved on the same day.

3.3 Emergence As A Public Company

Teletalk Bangladesh Limited (TBL) is formed as Public limited company under the Companies Act 1994 on 26th December 2004. It was incorporated as a 100% Government owned company having:

  1. An authorized capital of Tk. 2,000,00,00,000.00 (Taka two thousand crore);
  2. Cost of each Share at Tk. 1,000.00 (Taka one thousand); and
  3. Paid up capital of Tk. 22,000.00 (Twenty two thousand).

3.4 Membership of World GSM Association

It is almost mandatory to become a member of World GSM Association for a mobile operator. BTTB applied for that after receiving Operator License as well as operating frequency from BTRC. To become a member was imperative because in order to ensure security of SIMs, certain security algorithms are needed and World GSM Association is the lawful authority to issue those security algorithms. Without security it is not advisable to manufacture SIM. However Associate Membership was granted by World GSM Association in October, 2004 to BTTB and BTTB applied for the said security algorithms then after. In September, 2005 TeleTalk Bangladesh Ltd. obtained Membership of World GSM Association.

3.5 Board of Directors of Teletalk

The company has a board of directors formed by ex-officious of the Government. The board is headed by Secretary, Ministry of Post & Telecommunication as the Chairman. There are 10(ten) members of the board, including Managing Director, 5 (Five) top executives of BTTB and 4(four) high officials of the Government.

3.6 Operating License of Teletalk

The company has obtained the Cellular Mobile Phone Operator License from Bangladesh Telecom Regulatory Commission (BTRC) on 1 September, 2004 for a period of 15 years. Then the License was issued in the name of BTTB.

3.7 Soft Launching of Teletalk

On December 29, 2004 through the conversation between honorable President and Prime Minister of Government of the peoples republic of Bangladesh “soft launching of Teletalk Bangladesh Ltd.” was proclaimed and the long waited dream of BTTB mobile phone to the nation came into being. The system of the Company has to operate within the GSM 900 and GSM 1800 bands as per slots allocated by BTRC.

3.8 Commercial Launching of Teletalk

Teletalk, staffed by experienced Telecom Engineers of BTTB have been committed to high accessibility, premium quality, large coverage and low price. Teletalk launched its much expected Mobile Telecom service on commercial basis on 31st March, 2005.

Being a new entrant, Teletalk started the distribution of its SIM among the people through different selected outlets of BTTB exchange building with the help of BASIC bank. Teletalk was not much aware about the huge hidden demand of Teletalk mobiles among the public, which resulted an unprecedented scenario during the distribution process in the first phase. People became frenzy to get a Teletalk SIM. People stood in queue to get a Teletalk SIM from mid-night to dusk but failed. BBC commented in this huge cry as “Mobile Telephone riot in Bangladesh”. Subsequently Teletalk was compelled to call applications from the public through Internet and deliver SIMs to only 10% of applicants through lottery.

As historic evidence in the country, may be in the modern world, to get a mobile SIM through lottery. It proves the public’s rejection of private sector and unparallel faith on public sector despite of much criticism against it.

Distribution of Teletalk SIM via internet created a new era, Government owned company Teletalk utilized IT & initiated e-Governance.

3.9 The Attractiveness of Teletalk Service

The most remarkable success of Teletalk is the slump in its tariff structure. With the announcement of Teletalk tariff structure the long lasting oligopoly between other private mobile operators were shattered. Healthy competition came into the mobile market both in terms of SIM price and usage rate. The competitive features for Teletalk SIM are:

1. Teletalk mobile connections enjoy BTTB’s PSTN incoming & outgoing facility.

2. Every connection has ISD & EISD calling features.

3. Require no extra charges for calling to BTTB’s PSTN telephones.

4. No charges for incoming calls from BTTB’s PSTN telephones.

5. Same per minute rate regardless of distance, make calls anywhere anytime without fear of high cost.

6. Low incremental per minute cost allows customers to make large number of calls.

7. Getting infinite period of activation while charged.

8. Negligible monthly cost for people who mainly receive calls.

3.10 Services offered by Teletalk

Teletalk offers to its valued subscriber the following connection facilities with affordable cost.

Ø Prepaid Connection.

Ø Post-paid Connection.

Ø PCO (Public Call Office) Connection.

Ø Corporate Connection.

All types of connection require the following documents:

1. 2 (two) passport size photograph

2. Paper for identity (photocopy of Identity card/Passport/any other identification document).

3.11The Objectives of Teletalk

  • To provide mobile telephone service to the people from the public sector
  • To ensure fair competition between public and private sectors and thereby to safeguard public interest
  • To meet a portion of unmitigated high demand of mobile telephone

· To create a new source of revenue for the Government.

3.12 Vision and Mission

3.12.1 Vision

The vision of Teletalk is to ensure optimum customer satisfaction by providing basic and different value added services at an affordable price at every nook and corner of the country to all sorts of people.

3.12.2 Mission

The mission of Teletalk is to innovate and constantly find new ways to enhance their services to their customer’s current needs and desires for the future.

3.13 Present Status of Teletalk

Teletalk started its commercial operation on 31st March, 2005 with sky-scrapping expectation of people. So far Teletalk covers 64 geographical district and 204 upazilla and growth centre through the installation of 462 BTS out of its 632 BTS in the original project. The Company has country-wide strong telecom network covering the district headquarters, major upazillas and highways. It has 20 Customer care canters throughout the country.

The slump in price made mobile phone affordable even for the low-income group of people, which being the vision for Teletalk. Using a mobile phone soon became a necessity; it’s no more a luxury.

3.14 Teletalk Network Expansion Project

In order to survive and proceed in a fiercely competitive market, the company needs to remain dynamic in its operations. In this context, regular and continuous expansion and up gradation of existing network elements are mandatory. As such, Teletalk, has taken Endeavour to expand its network and subscribers’ base using funds from its own revenue. The first-phase of network expansion programme at a cost of equivalent to Taka 2,101 million (including a foreign currency component equivalent to Tk.1, 415 million) financed fully from its own resources has since been completed. This has resulted in a capacity increase of 0.60 million subscribers and given significant rise of revenue.

With a view to remain always competitive and to furtherance its market share, the Company has been in the pace of its activities to pursue new expansion programmes one after another, which would continuously expand its subscriber base. The company is also investing in procurement of new Value Added Services (VAS) systems for increasing the qualitative value of its network in order to ensure seamless and even better services to its subscribers.

The second phase of network expansion programme at a project cost of equivalent to Taka 5,330 million (including a foreign currency component equivalent to Tk,2,730 million) financed from its own resources and partially by local banks has since taken off to yield a further capacity increase of 1.8 million of subscribers. At the initial stage, the pace of activities was somehow slow due to the Bangladesh Bank’s regulatory measures; but with timely solution of the problem, that complicacy has been successfully overcome. However, after completion of the on-going expansion programme, the total number of subscribers is expected to exceed 3.00 million.

3.15 Teletalk Implementation and Expansion Project (Implementation of 3G and expansion of 2.5G technology)

It may be mentioned that, the Government would soon allow the mobile telephone operators to upgrade to 3G technology. Teletalk has already necessary measures and started doing the preliminary jobs so that it can very it can very quickly adopt the advanced technology as soon as the regulatory authority permits.

It is a pleasure to mention that the Board of Directors in its 58th meeting held on 24 December, 2009 has accorded approved to the project ‘Implementation of 3G and expansion of 2.5G Technology’ at an estimated cost of US$259.82 million (equivalent to Tk.18, 187,362,000) to be financed by the Eximbank of China under Preferential Buyers’ Credit on 80:20 debt: equity ratio. The loan amount of US$211 million would be disbursed through the Government of Bangladesh.

No objection from the Finance Division of the Ministry of Finance has been obtained. Discussions with the high power delegation from the Chinese Eximbank and CMEC have also been finalized ad they have expressed their willingness to invest in the project. If successfully completed, this will increase 5.5 million new subscribers in the Teletalk’s network (4.00 million for 2.5G and 1.5 million for 3G).

Teletalk is to get a head start over the private networks with its 3G network and will launch its services before the other networks are granted a license. The regulator, the BTRC will issue licenses on demand, but Teletalk will get priority. It is said by the Telecommunication Minister Rajiuddin Ahmed Rajuon at a press conference on 8 November, 2010.

3.16 Teletalk Future Plan

In last year 2009 the Company received a proposal from M/S. Viettel Corporation, the state-owned mobile phone operator of Vietnam, for their initial investment of US$300 million in phases, under certain terms and conditions, in Teletalk with a view to have a partnership with a portion of shareholding. Upon approval of the Board of Directors, some basic information of the Company was also provided to them to assist their feasibility study. They have submitted their report to the Government which is under consideration of the Government.

SERVICES OF TELETALK

4.1 Products List of Teletalk

Teletalk offers to its valued subscriber the following connection facilities with affordable cost. These are given below;

Ø Prepaid Connection.

Ø Post-paid Connection.

Ø PCO (Public Call Office) Connection.

Ø Corporate Connection.

Features of these services are described below;

4.2 Prepaid Services

BIJOY

Features:

· 1 second pulse.

· Connection Charge: Tk. 166

· Bonus Talk-Time: Tk. 266 (minute)

· FnF numbers, [Teletalk numbers at only Tk. 0.25/min & Other operators at Tk. 0.65/min]

· GPRS & ISD call facility

· Migration facility from other prepaid packages

· Any new SIM or re-activated SIM (closed since 01 August 2010) will enjoy Bijoy facilities

· Value Added Services available

SHADHEEN 66

Features:

· Connection charge: Tk. 399, Initial talk time Tk. 200 and SMS Tk. 100.

· 1st Minute pulse.

· FnF numbers, [Teletalk numbers at only Tk. 0.25/min & Other operators at Tk. 0.55/min]

· GPRS facility

· Incoming Bonus facility

· TK 0.49 initiation charge for each call in 1st minute

· Value Added Services available

SHADHEEN

Features:

· Connection charge: Tk. 399, Initial talk time Tk. 100 and SMS Tk. 100.

· 1st pulse for first 30 sec and 15 sec pulse onwards

· FnF numbers, [2 Teletalk numbers at only Tk. 0.25/min, 2 Other operators at Tk. 0.90/min]

· GPRS facility

· Value Added Services available

· Validity 100 days after any recharge.

· Incoming Bonus Facility

STANDARD

Features:

· 1st minute 30 sec pulse and 15 sec pulse from the second minute onwards

· FnF applicable for 3 numbers [Teletalk Tk. 0.75/min and other operators Tk. 1.25/min]

· GPRS facility

· Life long validity

· Value Added Services available

4.3 Postpaid Services

RAJANIGANDHA

Features:

· Connection : Tk. 790.00

· Credit Limit : Tk. 1000.00

· 1 Sec pulse

· Line Rate: Tk. 100.00, but for a call volume above Tk. 300/month line rent will be waived.

· FnF applicable for 5 numbers [Teletalk Tk. 0.25/min and other operators Tk. 0.80/min].

· Monthly bill will be exempted 5%, 7% & 10% according to usage of Tk. 1001-2000, Tk. 2001- 3000 & Tk. 3001 and above respectively

· GPRS facility

SHAPLA

Features:

· Connection : Tk. 290.00

· Security deposit: Tk. 700.00, Credit Limit: Tk. 1000

· Minimum monthly bill Tk. 700, It will be waived if no use in full month (Billing Cycle)

· 1 Sec pulse

4.4 Corporate Services

TBL has always been keen on introducing new and different services for its valued customers. Corporate Service is one of them. This Package is especially arranged for those customers who have their own enterprise/company/service organization etc and they are interested to take this special opportunity to avail catered services from TBL.

Corporate Facilities Are:

· One Second Pulse

· Low call rates and simple tariff plan

· FnF

· No GPRS registration fee

· GPRS unlimited available on Prepaid & Postpaid

· No use no bill

· No financial liability for the organization because the package is prepaid

· Call Conference available. [Number of caller 3 persons at a time]

· SIM price is negotiable.

Corporate Packages:

Teletalk provides its customers with various types of packages like-

· Teletalk Executive [Prepaid]

· Teletalk Executive [Postpaid]

· Professional [Prepaid]

Product Description: Teletalk Executive [Prepaid]

Package Type : Prepaid
Minimum Connection : 10
Price Per SIM : Tk. 399.00
Talk Time : Tk. 400.00
Migration Fee [Teletalk to Teletalk] : Free
GPRS [unlimited] : Tk. 600.00

Product Description: Teletalk Executive [Postpaid]

Package Type : Postpaid
Minimum Connection : 10
Price Per SIM : Tk. 399.00
Migration Fee [Teletalk to Teletalk] : Free
GPRS [unlimited] : Tk. 600.00

Product Description: Professional Package [Prepaid]

Package Type : Prepaid
Minimum Connection : 100
Price Per SIM : Tk. 250.00
Talk Time : Tk. 50.00
Migration Fee [Teletalk to Teletalk] : Tk. 50.00

Corporate Customer Care Service:

The corporate client will have the access to corporate customer care through a special hot number [267 from any Teletalk Numbers] which will be one point solution for all sorts TBL network service related problem.

4.5 Rate Plan of Teletalk

Teletalk is offering attractive packages for the customers with very competitive rates. These carefully designed packages offer a range of tariff, properties and benefits to satisfy the needs of the customers.

Rate plan of Teletalk is given below;

Packages Prepaid Postpaid
Call Categories Shadheen Standard Shapla Standard Rajanigandha Shapla
Teletalk to Teletalk

[8am-5pm]

Tk. 0.66

[24hr]

Tk. 1.40 Tk. 0.90

[24hr]

Tk. 0.80 Tk. 0.80 Tk. 0.80

[24hr]

Teletalk to Teletalk

[5pm-12am]

Tk. 0.80 Tk. 0.80
Teletalk to Teletalk

[12am-8am]

Tk. 0.60 Tk. 0.25 Tk. 0.25
Teletalk to Others

[8am-5pm]

Tk. 0.66

[24hr]

Tk. 1.90 Tk. 0.90

[24hr]

Tk. 0.99 Tk. 0.99 Tk. 1.00

[24hr]

Teletalk to Others

[5pm-12am]

Tk. 0.99 Tk. 0.99
Teletalk to Others

[12am-8am]

Tk. 1.00 Tk. 0.99 Tk. 0.99
Teletalk to Overseas

[8am-5pm]

ISD/EISD ISD/EISD ISD/EISD ISD/EISD ISD/EISD ISD/EISD

[24hr]

Teletalk to Overseas

[5pm-12am]

ISD/EISD ISD/EISD
Teletalk to Overseas

[12am-8am]

ISD/EISD ISD/EISD
FnF

Teletalk to Teletalk

Tk. 0.25 Tk. 0.75 N/A Tk. 0.25 Tk. 0.25 N/A
FnF

Teletalk to Others

Tk. 0.55 Tk. 1.25 N/A Tk. 0.80 Tk. 0.80 N/A
SMS Tk. 0.66

on net

Tk. 1.00
Voice SMS Tk. 2.00
GPRS 0.16/KB or 666/Month [unlimited] Tk. 0.02/KB or Tk. 800.00/Month [unlimited]

4.6 Value Added Services

Teletalk offers a wide range of services to its customers. Following are an outline of the services presently available with Teletalk:

  1. GPRS

GPRS stand for General Packet Radio Service. GPRS is a type of cellular mobile service by which we can transfer data. This can be compared with the fixed phone dial-up internet service. We can use our PC or the mobile set itself to get the internet service. GPRS offers up to 115 kbps which is faster than fixed phone dial-up service.

Teletalk offers internet browsing facility for both post-paid and pre-paid subscribers. One can use this facility by using data-cable in computer also. Handsets with GPRS option enable this facility. Through Teletalk GPRS, the subscribers can use the facilities like browsing, email, internet chatting, data transfer etc.

How to subscribe and use GPRS on the phone:

· To activate GPRS service. Write ‘reg‘ and send SMS to 111.

· To register monthly unlimited use, write unl or daily unlimited use, write dunl and send SMS to 111.

It’ll be activated within 72hrs and the subscribers will be notified. The daily unlimited service spans from 12PM to 12PM next day upon activation. Only SMS Charge applicable.

Configuring your mobile handset for using GPRS:

Service Type APN IP Port (optional)
No Use No Pay Wap 192.168.145.101 9201
Monthly/Daily Unlimited Gprsunl 192.168.145.101 9201

Charges and Rates of using GPRS service:

Service Type Charges in BDT
No Use No Pay 0.02/KB + VAT
No Use No Pay [Shadheen66 Package] 0.016/KB + VAT
Monthly Unlimited 800.00 + VAT
Monthly Unlimited [Shadheen66 Package] 666.00 + VAT
Daily Unlimited 50.00 + VAT
  1. Push-pull services

Push Pull service is like ordinary SMS, one can receive answer to a question s/he asks. By using this push-pull service, one can have the latest updates of important cricket matches. Besides, other important information like weather forecast, prayer time, quotes, horoscopes and especially sehri-iftar timing during ramadhan are also available.

  1. SMS

An SMS of 160 characters each available both in English and Bangla.

  1. ISD and EISD

Every subscriber of Teletalk gets the opportunity of Economic ISD or EISD in 55 countries @ reduced rate per minute. Under this facility, the subscriber should dial 012, then country code, then area code and finally the desired number – instead of dialing access code 00.

  1. DESA Load shedding push-pull service

First time in Bangladesh, Teletalk with co-operation from DESA has instituted a service for consumers to obtain evening load shedding schedule through SMS. With minimal charging of Taka 1.00 per SMS, this service is a welcomed addition to the citizens of Dhaka Metropolitan area that comes under auspices of DESA services.

  1. Mobile Applications through GPRS

Teletalk has also introduced in collaboration with various content providers some Java Mobile applications. Not able among them are “Cricket Update” and “Bangla SMS”.

  1. Voice SMS

Teletalk has introduced “Voice SMS” service for it customers to send voice message.

  1. Other unique services

Teletalk has instituted some other unique value added services to accommodate growing customer needs as well as to be in the top edge of current mobile telephony advancements.

4.7 International Roaming Service

Traditional GSM Roaming is defined as the ability for a cellular customer to automatically make and receive voice calls, send and receive data, or access other services, including home data services, when traveling outside the geographical coverage area of the home network, by means of using a visited network. This can be done by using a communication terminal or else just by using the subscriber identity in the visited network.

Currently Teletalk is providing International Roaming service to 54 operators in 38 countries for Postpaid and to 12 operators in 11 countries for Prepaid to its valued subscribers.

Requirements for International Roaming Service:

· International Credit Card ( VISA and Master card) with at least 6 (Six ) months validity
· International Passport (Photocopy)
· Subscriber needs to fill up an International Roaming form provided by TBL.
· Auto Debit Form (optional – needed only if you want to authorize Teletalk to auto debit your account. Only needed for postpaid roaming).
· Two Passport size Photographs.
· Security Deposit: BDT 10,000.00 (for postpaid) BDT 0.00 (for prepaid).