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Factors Affecting Customer Satisfaction in

Telecom Industry

1. INTRODUCTION

1.1 Origin of the report

This project report on “Factors affecting customer satisfaction in telecom industry” has been
authorized by Dr. Nazrul Islam as a fulfillment of the course (BUS 498) requirement.

1.2 Rationale of the Study

Although models of service quality and customer satisfaction have been well researched within
the consumer goods and services area, much less attention has been paid to high involvement
service satisfaction.

This study will benefit the telecom industry by helping it identify the determinants of customer
satisfaction. It will also provide a model to the industry that can be used in evaluating consumer
satisfaction for future purposes. The study will also help understand how satisfied the customers
are with the service.

1.3 Objective of the study

Following are the objectives of the study:

Broad Objective → To identify the variables that affect the customer satisfaction in the
telecommunication industry.

Specific Components → To attain the broad objective, following specific objectives will be
pursued:
 To provide an overview of the telecom industry in Bangladesh
 To measure customers’ perception about telecommunication services in Bangladesh.
 To find out a model of consumer satisfaction for the telecom industry.
 To measure overall satisfaction level of customer in telecom industry.
 Making some recommendations to the mobile phone service providers to improve and
maintain service quality from users’ standpoint.

BUS 498: PROJECT REPORT


Factors Affecting Customer Satisfaction in
Telecom Industry

1.1 Scope of the study

This particular study of “Factors affecting customer satisfaction in telecom industry” explores
the profile of the target market of mobile phones and as well it identifies the relationship between
consumer promotions, price perceptions with product quality perceptions and customer
satisfaction in the mobile market of Bangladesh.

1.5 Research Methodology

1.5.1 Type of the Research

• Exploratory Research

1.5.2 Statement of the Problem

In the mobile telephony sector in Bangladesh vast competition has emerged. So, the subscribers
now have various alternatives to choose according to their convenience. Obviously customers
prefer a particular brand on the basis of some criteria. Therefore, to survive in the industry the
companies have to identify the factors related to customer satisfaction and loyalty. More
precisely, what are the factors that affect satisfaction level of customers towards telecom service
providers?

1.5.3 Data Collection Method

Both primary and secondary information sources have been used to complete this study.

• Primary Data: Data has been collected through a questionnaire containing several types
of questions for respondents profile, usage background and satisfaction measurement.
• Secondary Data: Secondary data has been collected from academic and business
journals, texts, electronic databases, newspapers, magazines and internet.

1.5.4 Population and Sample

The study is limited to the user of mobile telecommunication sector and there are six mobile
operators in Bangladesh, all of which has been attempted. The study is also limited to the
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measurement of customer satisfaction and identification of the underlying factors as well. As a


technique, convenient sampling has been applied and sample size was 50. The survey has been
conducted within Dhaka city.

1.5.5 Questionnaire Design

One questionnaire was developed in English on the basis of insights from interview with the
respondents. Close-ended questionnaire was used to collect data from the respondents. There
were three sections in the questionnaire.

Section A: Personal Information.There were 7 questions. For example-age, profession, income


and monthly usage etc.

Section B: Satisfaction measurement question. There were 11 variables (services) in Likert


rating scales ranging from highly satisfied (1) to highly dissatisfied (5)

Section C: Attitude seeking questions. 13 statements in Likert rating scales ranging from
strongly agree (1) to strongly disagree (2).

BUS 498: PROJECT REPORT


Factors Affecting Customer Satisfaction in
Telecom Industry

1.5.6 Approach to the Problem

1.5.6.1 Theory Development

Independent Variables Dependent Variable

Network Coverage

Network Quality

Customer Support

Complaint
Management

Availability of Overall Customer satisfaction


customer service
centers

Price (Tariff)

Bill Payment System

Value Added Services

Internet Service

Promotional offers

Figure 1: Research Framework


To identify the determinant factors regarding satisfaction level of cell phone users that could
improve the efficiency to get the customers or make the customers switch from the competitors’
products, some variable have been identified, which are significantly correlated with the
customers’ satisfaction level. When a customer decides to use a particular connection, he
normally considers coverage, network quality, customer support, complaint management,
availability of customer service centers, tariffs, bill payment system, VAS, internet service, and
various promotional offers. So carrying on with a mobile connection is based on the
simultaneous activation of these variables.

BUS 498: PROJECT REPORT


Factors Affecting Customer Satisfaction in
Telecom Industry

For analyzing data, relevant statistical techniques have been used such as bar chart analysis,
spearsman’s correlation, one sample test, regression analysis, global test, individual test etc.
Finally the findings will be interpreted with the existing body of knowledge.

1.5.6.2 Model development

Regression Model:

Y=β0+ β1* X1+ β2* X2+ β3* X3+ β4* X4+ β5* X5+ β6* X6+ β7* X7+β8* X8+ β9* X9+ β10* X10

Here,
Constant= β0
Independent Variables:

X1= Network Coverage X7=Bill Payment System


X2 =Network Quality X8=Value Added Services
X3=Customer Support X9= Internet Service
X4=Complaint Management X10=Promotional offers
X5= Availability of customer service centers
X6= Price (Tariff)

Dependent Variable:
Y= Overall satisfaction
** β1, β2, β3, β4, β5, β6, β7,β8, β9, β10 are coefficients

1.5.6.3 Research Hypotheses

Research hypothesis 1: Network Coverage


H0: Network coverage has no significant influence on overall customer satisfaction.
H1: Network coverage has significant influence on overall customer satisfaction.

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Factors Affecting Customer Satisfaction in
Telecom Industry

Research hypothesis 2: Network Quality


H0: Network quality has no significant influence on overall customer satisfaction.
H1: Network quality has significant influence on overall customer satisfaction.
Research hypothesis 3: Customer Support (Helpline)
H0: Network quality has no significant influence over overall customer satisfaction.
H1: Network quality has significant influence over overall customer satisfaction.
Research hypothesis 4: Complaint Management
H0: Complaint Management has no significant influence on overall customer satisfaction.
H1: Complaint Management has significant influence on overall customer satisfaction.
Research hypothesis 5: Availability of customer service centers
H0: Availability of customer service centers has no significant influence on overall customer
satisfaction.
H1: Availability of customer service centers has significant influence on overall customer
satisfaction.
Research hypothesis 6: Price
H0: Price has no significant influence on overall customer satisfaction.
H1: Price has significant influence on overall customer satisfaction.
Research hypothesis 7: Bill payment system
H0: Bill payment has no significant influence on overall customer satisfaction.
H1: Bill payment has significant influence on overall customer satisfaction.
Research hypothesis 8: Value added service
H0: Value added service has no significant influence on overall customer satisfaction.
H1: Value added service has significant influence on overall customer satisfaction.
Research hypothesis 9: Internet Service
H0: Internet service has no significant influence on overall customer satisfaction.
H1: Internet service has significant influence on overall customer satisfaction.
Research hypothesis 10: Promotional offer
H0: Promotional offer has no significant influence on overall customer satisfaction.
H1: Promotional offer has significant influence on overall customer satisfaction.

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Factors Affecting Customer Satisfaction in
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1.6 Data Analysis and Reporting


• Softwares that have been used are Microsoft Word, Microsoft Excel, and SPSS.
• The study also tested reliability of the instrument so that it enables us to present a robust
and valid result.

1.7 Limitation

The quality of the report is limited due to the difficulties I had to go through. I had to face the
following difficulties while preparing the report:

• Limitation of time was a problem. I could have prepared the report much better if I had
gotten more time.
• Unwillingness of people to fill up the survey was a problem. I really had to get through a
hard time getting the surveyed papers done.
• Some of the respondents failed to complete the survey paper due to their work pressure.
For this reason among the 70 respondents 100% of the answers might not be correct.
• There are vast amounts of information and write-ups relating to the topics of this research
hat are present in the internet and various other sources, but it was not possible to gain
access to much such information. So missing out some important aspect of the discussed
topics can be a possibility.
• A minimal sample size has been used for this research; if a larger sample was taken into
consideration the research would have been more accurate.
• The survey has been conducted in Dhaka city which could be a possible reason for the
people’s mind set to be similar and survey results not being very different from each
other, the results could be different if people from outside metropolitan cities were
brought under consideration.

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Factors Affecting Customer Satisfaction in
Telecom Industry

2. LITERATURE REVIEW
The wide acceptance of mobile phones by the Bangladeshi consumers is a recent phenomenon,
evident from the beginning of current decade. Downward economic trend, severe retaliation
among the firms and less effective forecast about the market potential have put this prospective
sector in clear suspicion although since the year 2000, Bangladesh has witnessed growth in
excess of 3000% in its mobile market (www.telecominsight.com, march 2008).

The attitude of the consumers towards this new technology can be explained by the technology
acceptance model (TAM), developed by Fred Davis and Richard Bagozzi. TAM explains a
consumer’s choice of action with two measures of attitude- ease of use and usefulness (sultana,
Ghosh and Khan, 2008). Since consumers in Bangladesh drastically captured this technology, it
can be attributed to this model.

Telecom service

The telecom market place is more competitive than ever and telecom operators are increasingly
competing with players from other sectors. Operators need new ways to differentiate their
offerings, increase revenues, reduce business costs and build brand equity-often in partnership
with several other contents and application providers. For mobile operators, the goal is to
become their customers’ channel of choice for a whole range of services beyond traditional
voice. So operators need a fast, efficient way to offer new services and contents that are localized
and unique to them, or to offer them packaged in a way that builds a unique user experience
(Fowzia and Diba, 2009).

Moreover, the product mobile phone itself is changing its image from a voice communication
device to a personal communication, information and entertainment terminal. 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 opportunities that lie in the telecom market seem endless and the growing
demand for mobile telephony systems is creating a world-wide market. [5]
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To the consumer, this revolution in mobile phones represents knowledge, power and
convenience. To the telecom industry, this revolution in mobile phones represents a huge source
of untapped revenue, far greater than voice services. As the concept of the mobile phone is
changing, today’s customers expect more than from the mobile phones. The whole mobile phone
industry is moving towards providing innovative services to their customers. These days mobile
phone users or subscribers choose their operators on the basis of various value-added services
they offer compared to only making a phone call (Ishrat and Alam, 2008).

Value added services have become such an important trend in the telecommunication industry
that to survive in this industry a company has to offer competitive value added services
compared to other mobile phone operators (Ishrat and Alam, 2008). It has become one of the key
strategies to survive in the telecommunication industry as well to satisfy the demand of the
customers. Here, value added services can be referred to as all services beyond standard voice
calls and fax transmissions (Ishrat and Alam, 2008). Technologies like SMS, MMS and GPRS
are usually considered as value added services a distinction may also be made between standard
(peer to peer) content and premium charged content ((Ishrat and Alam, 2008). These services
provide benefit that core services cannot.

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Factors Affecting Customer Satisfaction in
Telecom Industry

Ishrat and Alam (2008) classified VAS in following parts:

Telecom Service

Value-Added Service (VAS)

Voice Call Service

Non-voice call Service

Stand-alone Non-Stand alone

Figure 2: Telecom service framework

First type of VAS stands alone from an operational perspective. These types of services need not
be coupled with other services, but they can be. They are often provided as an optional service
along with voice services, but they could be offered and used by themselves without voice
service. For example, SMS could be offered and used as a service without voice calling.

The second type of VAS, are those services that do not stand alone. Instead, they add value to the
existing voice call services. For example, Missed call alert and call block.

However, it is often found that the service providers in many developing countries do not serve
their customers properly. There are several reasons behind that behavior, such as consumers are
not educated and aware about their right and privilege, lack of professionalism from the firm’s
side, lack of competitiveness and so on. This scenario is equally true in case of Bangladesh
mobile telecommunication industry (Fowzia and Diba, 2009). Moreover, since service is the

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most critical issue for the mobile phone service industry to carry on, it is very important to know
the ideas customers have towards service quality.

Customer Satisfaction

Customer satisfaction is a well known and established concept in several areas like marketing,
consumer research, economic psychology, welfare-economics, and economics. Customer
satisfaction generally means customer reaction to the state of fulfillment, and customer judgment
of the fulfilled state (Ibrahim, Ishtiaque and Islam, 2007). There are many benefits for a company
from a high customer satisfaction level.
• It heightens customer loyalty and prevents customer churn
• It lowers customers price sensitivity
• It reduces the cost of failed marketing and of new customer creation.
• It reduces operating costs due to customer number increases.

The most common interpretations obtained from various authors reflect the notion that
satisfaction is a feeling which results from a process of evaluating what has been received
against what was expected, including the purchase decision itself and the needs and wants
associated with the purchase (Armstrong & Kotler, 1996).

Bitner& Zeithaml (2003) stated that satisfaction is the customers’ evaluation of a product or
service in terms of whether that product or service has met their needs and expectations.
According to Boselie, Hesselink, andWiele (2002) satisfaction is a positive; affective state
resulting from the appraisal of all aspects of a party’s working relationship with another.

Customer satisfaction is defined as an "evaluation of the perceived discrepancy between prior


expectations and the actual performance of the product" (Tse and Wilton, 1988, Oliver 1999).
Any discrepancy leads to disconfirmation; i.e. positive disconfirmation increases or maintains
satisfaction and negative disconfirmation creates dissatisfaction (Ibrahim, Ishtiaque and Islam,
2007).

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Satisfaction of customers with products and services of a company is considered as most


important factor leading toward competitiveness and success (Hennig-Thurau and Klee, 1997).
Customer satisfaction is actually how customer evaluates the ongoing performance (Gustafsson,
Johnson and Roos, 2005). According to Kim, Park and Jeong (2004) customer satisfaction is
customer’s reaction to the state of satisfaction, and customer’s judgment of satisfaction level.
Customer satisfaction is very important in today’s business world as according to Deng et al.,
(2009) the ability of a service provider to create high degree of satisfaction is crucial for product
differentiation and developing strong relationship with customers.

Customer satisfaction makes the customers loyal to one telecommunication service provider.
Previous researchers have found that satisfaction of the customers can help the brands to build
long and profitable relationships with their customers (Eshghi, Haughton and Topi, 2007).
Though it is costly to generate satisfied and loyal customers but that would prove profitable in a
long run for a firm (Anderson, Fornell and Mazvancheryl, 2004). Therefore a firm should
concentrate on the improvement of service quality and charge appropriate fair price in order to
satisfy their customers which would ultimately help the firm to retain its customers (Gustafsson,
Johnson and Roos, 2005). It is a common phenomenon that the services a brand offers and the
price it charges actually determine the level of satisfaction among its customers, than any other
measure (Turel et al. 2006).

Customer’s involvement is also important as when buyer consider the product important and
invests time to seek information then it ultimately enhances the satisfaction level (Russell-
Bennett, McColl-Kennedy and Coote, 2007). This satisfaction may influence the concerned
company by repurchase, purchase of more products, positive word of mouth and willingness of
customer to pay more for the particular brand. Any business is likely to lose market share,
customers and investors if it fails to satisfy customers as effectively and efficiently as its
competitors is doing (Anderson, Fornell,and Mazvancheryl, 2004).

In general, it is the satisfaction about the product/service as a whole that merits attention, since
this satisfaction influences the consumers’ future buying and consuming behavior. Yet it is also
important to understand the factors that contribute to satisfaction or dissatisfaction. Often,
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dissatisfaction about one particular feature or a service leads to dissatisfaction about the service
as a whole, even if the customer satisfaction indexes are based on the measurement of
cumulative satisfaction.

According to Asaduzzaman, Amdadul and Tawhida, 2009, satisfaction depends on bill payment
system, FnF, Network quality, and network coverage etc.

Improvement and efficiency


In
Coverage, quality, after sales service, bill payment system, FnF

Better
Will lead to

Voice call services Value added/Non-


voice call services

Will ensure increased


Customer
Satisfaction
Figure 3: Determinants of Satisfaction

There is an important distinction between consumer satisfaction about a particular operator and
customer satisfaction about the sector as a whole. For instance, one may be quite satisfied with
the offerings and performance level of a particular mobile phone operator, but in general feel
uncomfortable with the pricing and marketing strategy as a whole.

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Due to growing competition in mobile telecommunication sector, it is necessary for the operators
to know the customer perception about the satisfaction on the service provided by them. Thus
this study attempts to identify and analyze the factors affecting overall customer satisfaction.

Loyalty versus Satisfaction

Customer loyalty is not the same as customer satisfaction. Customer satisfaction measures how
well a customer’s expectations are met by a given transaction, while customer loyalty measures
how likely a customer is to repurchase and engage in partnership activities. Satisfaction is a
necessary but not a sufficient condition for loyalty. In other words, a customer can have
satisfaction without loyalty, but it is hard to have loyalty without satisfaction (Ibrahim, Ishtiaque
and Islam, 2007).

This study also aims to investigate the service quality perceptions of mobile phone users in
Bangladesh to know which items they value more and are satisfied with, and to understand if
there is a gap between the perceived importance and perceived satisfaction as well as to what
extent customers are loyal to their service providers.

3. TELECOM INDUSTRY IN BANGLADESH


3.1.1 About Bangladesh

Bangladesh is one of the poorest, most densely populated, least developed countries in the world.
Apart from its lowly economic status, major impediments to growth have included frequent

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cyclones and floods and the slow implementation of much-needed economic reforms. The
country has a reputation for the inefficiency of its state-owned enterprises [5].

Although Bangladesh is a densely populated country with significance presence of digital divide,
the telecommunication sector has been treated as a great opportunity for both international and
local investors by looking at country’s surprisingly energetic telecoms sector, in particular, the
effort that has been going into building telecom infrastructure and the progress that has been
made on regulatory reforms. [5]

3.1.2 History of Telecommunication systems in Bangladesh


Communication in Bangladesh is based on Telephone, mobile communication, TV Broadcast,
Radio, Internet etc. Three types of radio broadcast stations; AM15, FM 13 and shortwave 2. [5]

Figure 4: Fixed telephone line per 100 inhabitant [10]

Bangladesh appears as an important area for the expansion of mobile telecommunication


program. The inefficiency in the state owned sectors and slow implementation of much needed
economic reforms have exerted a negative impact on the country’s telecommunication
infrastructures and regulatory systems. As a result, fixed line telephone has not been expanded
up to the desired level. More than ninety percent of the Bangladesh telephone services are
located in the urban areas. The far-flung rural areas are isolated from this fixed line telephone
network [Article 9].

The introduction of telecommunication industry has been pretty late in Bangladesh compared to
that of the neighboring countries. This is very much attributable to the political unrest in early
1990s. 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 1990’s and the number of
services in operation has subsequently grown exponentially in the past several years.
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Though the first telecom company, Citycell, was introduced ages ago, the device has not become
so pervasive until 1997 because at that time Citycell used to dominate the industry due to the
absence of competition (Sheba Telecom struggled horribly to gain market share because of poor
infrastructure). However, during that period, customers were deprived of benefits as Citycell ran
a monopoly market focusing more on profit than on expansion.

But with the introduction of GrameenPhone and Aktel ( currently Robi), The scenario changed
significantly as call rates started to falter, with GrameenPhone racking up market share through
its improved area coverage and customer driven products.

The later injection of Egyptian company Orascom into Sheba Telecom, which renamed its brand
to Banglalink, triggered a price war that created a massive drop on both registration and call
rates. Since then there was no looking back. The industry grew at such an incredible rate in just a
decade that anyone could hardly imagine. At the same time government owned Teletalk started
journey with attractive packages. Warid starting operations in May 2007, was the sixth mobile
phone operator, and subsequently sold a majority 70% share of the company to India's Bharti
Airtel Limited.

Now there are a number of players battling so hard for their respective market share and the
consumers as well as the economy benefitted tremendously from this fierce competition. The
following sections elaborate on almost every aspect of the industry, ranging from how it become
so big, what fueled the growth to what are the risks and opportunities that it currently renders for
the players.

Figure 5: Cell phone subscription per 100 inhabitants [10]

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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. [1]

3.2 Historical landmarks

Landmarks in the history of telecom industry in Bangladesh [1]

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.

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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 Airtel Telecom

3.3 Present scenario of Telecommunication Industry

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In the past three decades, due to liberalization and privatization the entire telecommunications
industry has become a dynamic service industry subject to increasing competition with huge
growth potential. In recent years, in some Asian countries the number of mobile subscribers even
[Article 8].
passed the number of fixed-line subscribers Hence, the strategic behavior of
telecommunications companies has attracted so much attention in recent years, both in the
academic literature and in the popular press. In Bangladesh the scenario is not much different as
its socioeconomic profile offers the industry a tremendous opportunity to expand.

Players in the Market

GSM CDMA

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3.3.1 Market Growth & Competition

The mobile telecommunication service has been doubling on an annual basis over the last two or
three years. An enormous technological progress, an increased number of network operators and
the intense competition have become the regular features in the Bangladesh mobile
telecommunication sector. It has been entering into a new phase. It is predicted that this service
clearly exhibits the trend of reaching maturity. Considering it a fertile ground, the mobile
telecommunication service companies have been paying increasing attentions towards new
customers as well as the retaining of existing customers by promoting different program of
loyalty.

Market Growth from 2007 to 2011

Figure 6: Market growth in million customers [2]

The telecom industry is one of the few technical industries that have intense internal competition.
With majority of the telecom companies of the country being multinational subsidiaries, who
have vast finances at their disposal, and the Bangladesh market providing a population of
roughly (and unofficially) around 200 million many of whom are intent of carrying more than
one subscription, competitive price wars are ever present.

The Mobile Phone subscribers are shown below [2]:

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Ta
Operators 2007 2008 2009 2010 2011
Grameen Phone Ltd. (GP) 13.24 17.81 21.05 23.9 31.982
Orascom Telecom 5.55 7.45 8.76 10.59 20.126
Bangladesh Limited
(Banglalink)
Robi Axiata Limited (Robi) 5.53 8.31 10.83 14.22 13.259
Airtel Bangladesh Limited 1.27 1.56 1.87 1.91 4.607
(Airtel)
Pacific Bangladesh Telecom 0.87 1.01 0.98 1.07 1.787
Limited (Citycell)
Teletalk Bangladesh Ltd. 0.2 2.79 2.26 3.01 1.198
(Teletalk)
Total 26.66 38.93 45.75 54.7 72.963

ble 1: Subscribers in Millions at end of March in every year except in 2007 (may) [2]

3.3.2 Direct Competition

The telecommunication sector, specially the mobile phone sector, in Bangladesh is one of the
fastest growing business segments of the country which provide a lot of value addition to the
society with its service and creation of employment opportunities. At present there are six mobile
phone operator in the country with – Grameenphone, Banglalink, Robi (Aktel), Teletalk, Airtel
and CityCell.

Comparative Market Share as of March 2011

Figure 7: Percentage customer base comparison (as of March 2011) [2]

Although the number of telecommunications companies operating Bangladesh is six (five private
and one state-owned); but the aggressive competition has forced the incumbent
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telecommunications companies or mobile operators to reconfigure their strategy and business to


sustain or improve their competitive advantage. All of them compete with each other to grab
customers by providing wide range of services. Each of the operators has three or four or more
packages to fulfill its’ subscribers’ / customers’ specific needs. But to what extent customers are
satisfied with their products and services is a vital question.

In this emerging market customers are not that loyal to one particular private telecommunication
company. Hence, the major private telecommunication companies forced to consider how to
create a loyal customer base that will not be eroded even in the face of fierce competition.
Therefore, these telecommunication companies must realize the necessity of studying and
understanding various antecedents of the customer loyalty which might help them to develop a
loyal customer base.

3.3.2.1 Grameen Phone

Slogan- Stay Close

Grameenphone widely known as GP, is the leading telecommunications service provider in


[2]
Bangladesh. With more than 31 million subscribers (as of March 2011), Grameenphone is the
largest cellular operator in the country. This company was successfully listed on the stock
exchanges in November 2009-after completion of the largest IPO in the history of Bangladesh
capital market (GP annual report 2010).

Figure 8: Grameen Phone users in millions [2]

Grameenphone was the first company to introduce GSM technology in Bangladesh.[1] It also
established the first 24-hour Call Center to support its subscribers. With the slogan Stay Close,

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stated goal of Grameenphone is to provide affordable telephony to the entire population of


Bangladesh.
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 ten million subscriber milestone in Bangladesh.

Ownership Composition

Figure 9: Ownership composition of GP [3]

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,

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owns 55.8% shares of Grameenphone, Grameen Telecom owns 34.2% and the remaining 10% is
publicly held.[3]

Services Offered [3]

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Figure 10: GP services as of October 2010[3]

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3.3.2.2 Banglalink

Slogan- Making a Difference

Banglalink is the second largest cellular service provider in Bangladesh after Grameenphone. As
[2]
of November, 2009, Banglalink has a subscriber base which is more than 20 million . It is a
wholly owned subsidiary of Orascom Telecom.

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.[5]

Banglalink had 1.03 million connections until December, 2005. The number of Banglalink users
increased by 257 per cent[1] 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.
In less than two years which is by december 2007, banglalink overtook aktel to become the
second largest operator in bangladesh with more than 7.1 million customers [4]. On August 20,
2008, Banglalink got past the landmark of 10 million subscriber base [1]. banglalink currently has
20.126 million subscribers as of march 2011, representing a market share of 27.58%.

Banglalink provides its powerful network by 5500(approx) BTS (Base Tower Stations) is
covering 486 Thanas reasonably and 61 districts, covering a total population of around 90% till
mid of 2008. After Govt. withdrawal of the restriction of planting network infrastructure from
the three hilly districts (i.e. Banderbarban, Kagrachori & Rangamati) banglalink covered the 64
districts within very short time.

Figure 11: Banglalink users’ in millions [2]

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This positive change that is quite correctly attributed to banglalink, has become the corporate
positioning of banglalink and is translated in their slogan "making a difference" or "din bodol".
"making a difference" not only in the telecom industry, but also through its products and
services, to the lives of its customers. This corporate stance of "making a difference" has been
reflected in everything banglalink does.

Services Offered [4]

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Figure 12: Banglalink services as of December 2010[4]

3.3.2.3 Robi Axiata Ltd.


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Robi is the third largest mobile phone operator in Bangladesh in terms of subscribers (13.259
million as of March 2011)[2]. In early 2008 Robi slipped from the second position to the third
after facing fierce competition from Banglalink. [5]

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 28th March 2010, the service name was rebranded as ‘Robi’ and the company came to be
known as Robi Axiata Limited.

Figure 13: Robi users in million [2]

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 inception 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. Robi started investing
heavily with funds from Telekom Malaysia (the majority stake owner) on expanding its network
in 2001 but the investment was far too inadequate in comparison with GrameenPhone’s
investment. [5]

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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 12.8MHz frequency spectrum.[1]

Ownership Composition [6]

Shareholder Equity Percentage


Axiata Group Berhad 70%
NTT DOCOMO INC. 30%
[6]
Table 2: Ownership composition of Robi

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. [6]
Services Offered [6]

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Figure 14: Robi Services as of November 2010[6]

3.3.2.4 Airtel Bangladesh Ltd.

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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.[1] 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 20th December, 2010. The Bangladesh
Telecommunication Regulatory Commission approved the deal on Jan 4, 2010.[1]

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.

Bharti Airtel is making a fresh investment of USD 300 million to rapidly expand the operations
of Warid Telecom and have management and board control of the company. This is the largest
investment in Bangladesh by an Indian company. Dhabi Group continues as a strategic partner
retaining 30% shareholding and has its nominees on the Board of the Company.

The new funding is being utilized for expansion of the network, both for coverage, capacity, and
introduction of innovative products and services. As a result of this additional investment, the
overall investment in the company will be in the region of USD 1 billion.This is Bharti Airtel’s
second operation outside of India. Airtel Bangladesh had 4.37 million subscribers as of February
2011.[2]

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.

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Warid had a soft launch at the end of January 2007. 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.

Figure 15: Airtel users in millions [2]

On November 10, 2007, 61 districts under Warid network coverage. [1]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. [1]On December 20, 2010, Warid Telecom was rebranded to Airtel.

Services Offered [8]

Airtel

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Figure 16: Airtel services as of November 2010 as Warid Telecom [8]

3.3.2.5 Teletalk
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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. [9]

Teletalk Bangladesh Limited (the “Company”) was incorporated on 26 December, 2004 as a


public limited company under the Companies Act, 1994 with an authorized capital of
Tk.20,000,000,000 being the only government sponsored mobile telephone company in the
country. On the same day the Company obtained Certificate of Commencement of Business. The
mission statement of Tele Talk is “Desher Taka Deshey Rakhun” (“Keep your Money in your
Country”).[9]

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
now waiting for 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. TeleTalk is the 6th largest mobile phone operator in
Bangladesh with 1.198 million subscribers as up to March, 2011 [1].

Figure 17: Teletalk users in million [2]

Teletalk is the only operator in Bangladesh (Owner: 100% Bangladesh Government) with 100%
native technical and engineering human resource base.[1]

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Teletalk is ready to provide with the help of third party software, mobile interactivity for the
citizens of Bangladesh with m-Governance. This may includes, but not limited to [9]
1. Mobile based Live Citizen Reporting Solution
2. Mobile User Info bank (Database of Mobile Users of Bangladesh)
3. Agriculture information services for the farmers and also for the end users, like product
price in different parts of the country.
4. Product ID for all consumer products/ Organization.
5. Interactivity between Government and the Citizens.

Possible departments who will be directly benefited from the above services are [9]:
1.
• Police. • BSTI
• Rapid Action Battalion • BTRC
• Fire Service • Election Commission
• NBR • Health Services.
• Agriculture Department.
• BRTA

Services Offered [9]

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Figure 18: Teletalk services as of October 2010[9]

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3.3.2.6 Citycell

Slogan-Because We Care

Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of
Bangladesh. It is the only CDMA network operator in the country. [7]

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 [7]. 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. [1]

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
[5]
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. [5]

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Figure 19: Citycell users in million [2]

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 March, 2011 Citycell has 1.787 million subscribers [1].

Ownership Structure [7]

Citycell (Pacific Bangladesh Telecom Limited) has been converted into a Public Limited
Company with effect from 28 March, 2008 in compliance with the Notification No.
SEC/CMRRCD/2006-159/Admin-03/23 of Securities and Exchange Commission of Bangladesh.
Following lists the shareholders of the company:

• Pacific Motors Limited
• Pacific Traders Limited
• Pacific Industries Limited
• Far East Telecom Limited
• SingTel Asia Pacific Investments Pte Ltd
• SingTel Consultancy Pte Ltd
• Singapore Telecom Paging Pte Ltd

Services Offered [7]

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Figure 20: Citycell services as of December 2010[7]

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3.3.3 Indirect Competition


3.3.3.1 PSTN- Voice Transfer

For voice transfer, main substitute product is BTCL's land phone. Besides BTCL's land phone
there are also some PSTN phone operators in Bangladesh. Although Bangladesh market offers
both Public Switched Telecommunications Network (PSTN) and mobile network, the later one
cordially accepted for several reasons. The time-consuming and corrupted process of registration
for a line has been main reason against the popularity of PSTN phone. Its popularity has been
damaged due to existing limited service utility, lack of flawless security against eavesdropping,
and corrupted process of billing. And when mobile telecommunication started their business
offering multiple utilities including fast and easy registration process, it became threat to PSTN
business.

Although several private companies have been operating their PSTN services other than Dhaka
city, and some have businesses in Dhaka city as well; the popularity of PSTN phones is no way
optimistic. Even though the PSTN operators have joined the fierce price war with the mobile
operators, growth of the mobile phone subscribers have only been affected by this. However,
main indirect competitors are PSTN operators since their core products are the same which is
voice calling.

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The total number of PSTN Phone Subscribers has reached 1028.19 thousand at the end of May
2010. The PSTN or fixed operators in Bangladesh with their subscriber number are listed below
[2]

Operators Subscribers
BTCL 872.41
Telebarta Ltd. 56.42
Jalalabad Telecom Ltd. 10.90
Onetel Communication Ltd. 39.57
Westec Ltd. 17.00
Sheba Phone Ltd. (ISL) 11.62
S. A. Telecom System Ltd. 18.03
Banglaphone Ltd. 2.24
Total 1028.19
Table 3: PSTN Subscribers in Thousands

3.3.3.2 ISP, VOIP & WiMax- Data Transfer

For data transfer, in Bangladesh there are more than 50 listed internet service providers. Last
year two Wimax service providers have started their operation. Illegal internet & VOIP phones
are also serving as substitutes for mobile phones. Although the Government has so far banned
majority of VoIP operators, there are still some operating illegally in the country.

Wireless Internet providers (WiMax) are also a threat as increased usage of smart phones and
PDAs because communication can be made over the Internet using hand held devices rather than
having to go over mobile phone networks.

4. DATA ANALYSIS AND FINDINGS


4.1 Target market profile (Section A of questionnaire)

AGE GROUP

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To understand the sensitivity of age towards mobile phone the population is subdivided in to
different age groups. For this report the population is divided into less than 18, 19-25, 26-30, 30-
40 and 40+.

Age group
50

40 42

30

26

20

18
14
10
Percent

0
19-25 26-30 30-40 40+

Age group

Figure 21: Age group of respondents

Analysis

From the survey result, it can be seen that 42% respondents belong to 19-25 age group which is
the highest among all groups followed by 30-30 group with 26%. It is notable that there is 0%
respondent from the first group; less than 18. Obviously, it will not be zero while considering
larger sample size. The other two groups 26-30 and 40+ are almost close to each other with 14%
and 18% respectively.

Profession

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Occupation is another very important and influencing factor. It alters and shapes a consumers
habit and choice of a product. That is why; customers have been classified according to a
generalized classification of profession, just to get a clear idea target market composition.

Profession
40

30
30

20 22

18 18

10 12
Percent

0
Student Government Service Others
Business Private Service

Profession

Figure 22: profession of respondents

Analysis

From the survey result, it is evident that consumers are there in the market from almost every
sector with a similar proportion. 30% respondent came from private service profession and 22%
from business. Percentage of respondents is the lowest in this survey with only 12%. The
profession group “others” refers to homemaker, Non-resident Bangladeshi etc. Respondents from
other group formed 18% of the survey which is tantamount to respondents from students with
18%. This profession classification is only a generalized form which might not seem similar in
reality and thus, the actual scenario might be somewhat different from this result. That difference
can be attributed to tiny sample size and general categorization of profession.

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Monthly Income
Monthly income is quite important because it has great influence over expenditure behind mobile
related services and can easily explain expenditure behind different services.

Monthly Income
60

50 52

40

30

20
18
Percent

10 12
10
8
0
Less than 20,000 30,001-40,000 50,000+
20,000-30,000 40,001-50,000

Monthly Income

Figure 23: profession of respondents

Analysis

From the survey result, it is quite surprising that 52% respondents earn less than 20,000 taka and
18% respondents earn more than 50,000 taka per month. Remaining 30% respondents earn in
between wherein 10% respondents earn 40,001-50,000 taka per month. The lowest respondent
group is 8% which earns 30,001-40,000 taka per month. Now the difference between
respondents is quite clear. Because the highest is 52% with less than20, 000 taka monthly and the
lowest is 8%with more than 50,000 monthly.

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Mobile Operator

This question has been asked just to get an idea about the market of share of the operators among
the respondents and to compare the result with the actual market share, just to know to whether it
reflects the market scenario and if does, then; to what extent?

Mobile Operator
40

36

30

20 22
20

10
10
Percent

6 6
0
Grameenphone Banglalink Teletalk
Robi Axiata Airtel Bangladesh Citycell

Mobile Operator

Figure 24: current mobile operator of respondents

Analysis

From the survey result, it is prominent that this composition totally reflects the actual market
condition. Because, 6% respondents use Airtel which is the same in whole Bangladesh. One
more thing is that most respondents use Grameen Phone, Robi and Banglalink which is also
reflection of total Bangladeshi competition. The difference is that these three groups have lower
percentage here in comparision with what it is in Bangladesh market. As a result, percentage of
Airtel, Teletalk and Citycell increased here. Still it is very lower altogether (only 22%) than that

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of Grameenphone, Robi and Banglalink jointly (78%). However, in all over Bangladesh the
difference is 12% and 80% respectively for these two groups.

Package
It is quite important for operators to know the composition of their different services so that they
can differentiate, modify or promote their service features. This is considered while making
change in services since all customers do not use and pay for the same services.

Package
60

50 52

40

30

24
20
20

10
Percent

0 4
Postpaid corporate Prepaid Corporate
Post paid Individual Prepaid Individual

Package

Figure 25: package used by respondents

Analysis

Here it can easily be seen that 52% of respondents use preaid individual connection while post
paid individual is used by 24% of respondents which is lower than half. 20% respondents use
postpaid corporate connection which is closer to post paid individual connection. Prepaid
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corporate is used by 4% respondents which is the lowest among these four packages. Based on
this, it can be assumed that mobile companies formulate and implement their strategies in
accordance with this proportion.

Monthly Usage

Monthly usage of a customer contributes to the revenue and profitability of the operator. As a
result, operators are eager to keep record of this issue just to analyze that which customer group
pay more for what services so that they can improve their profitability.

Monthly Usage
40

30 32

24
20

18

14
10 12
Percent

0
Less than BDT 100 501-1000 2000+
BDT 101-500 1001-2000

Monthly Usage

Figure 26: Monthly usage of respondents

Analysis

From the survey result, it can be seen that 32% respondents spend 1001-2000 taka per month as
their usage bill of mobile. The closest percentage of respondents is 24% which is associated with
an expenditure of 101-500 taka per month. Only 12% respondents expend more than 2000 per
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month and 14% expend less than 100 taka per month. 18% of respondents expend 501-1000 per
month which is much closer to the second highest percentage.

Usage Duration
It answers loyalty question of customers. Because for a new connection, operators have to spend
more while old customers become cash cow without much investment.

Usage Duration
60

50 52

40

30

24 24
20

10
Percent

0
1-3 years 3-5 years 5+ years

Usage Duration

Figure 27: usage duration of respondents

Analysis

Interesting and motivating results came for the operators. 52% respondents are using their recent
connection for more than 5 years. It is very unlikely that they will change the operator but
obviously, they might change.24% respondents using this recent connection for 1-3 years and
24% using for 3-5 years. There are 0% respondent from less than 1 year group but does not
means there in actually no one. Because we have already seen that number of cell phone users
have grown significantly in the last year.
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4.2 Factors and Model of Satisfaction (Section B of Questionnaire)

Now different models can be developed by considering different variables:

Table 3: Model Summary

Adjusted R Std. Error of the


Model R R Square Square Estimate
1 .073(a) .005 -.015 .634
2 .389(b) .151 .115 .592
3 .468(c) .219 .168 .574
4 .473(d) .223 .154 .578
5 .499(e) .249 .164 .575
6 .528(f) .278 .178 .570
7 .623(g) .389 .287 .531
8 .695(h) .484 .383 .494
9 .695(i) .484 .368 .500
10 .706(j) .499 .370 .499
a Predictors: (Constant), Network Coverage
b Predictors: (Constant), Network Quality, Network Coverage
c Predictors: (Constant), Customer Support, Network Coverage, Network Quality
d Predictors: (Constant), Complaint Management, Network Coverage, Network Quality, Customer
Support
e Predictors: (Constant), Availability of customer service, Customer Support, Network Coverage,
Network Quality, Complaint Management
f Predictors: (Constant), Price, Network Coverage, Availability of customer service, Customer Support,
Network Quality, Complaint Management
g Predictors: (Constant), Bill payment, Network Quality, Availability of customer service, Complaint
Management, Price, Network Coverage, Customer Support
h Predictors: (Constant), Value Added Services, Availability of customer service, Network Quality, Price,
Customer Support, Bill payment, Network Coverage, Complaint Management
i Predictors: (Constant), Internet Service, Customer Support, Availability of customer service, Price,
Network Quality, Bill payment, Network Coverage, Value Added Services, Complaint Management
j Predictors: (Constant), Promotional Offers, Customer Support, Availability of customer service,
Network Coverage, Bill payment, Internet Service, Price, Network Quality, Value Added Services,
Complaint Management

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From table 3, it can be observed that model 10 performs better than the others since the value of
r2 is the highest among all other models. So, in this study, model 10 will be considered.
Thus the model to be considered is,

Y=β0+ β1* network coverage+ β2* network quality+ β3* customer support+ β4* complaint
management+ β5* availability of service centers+ β6* price+ β7* bill payment+β8*value added
services+ β9* internet service+ β10* promotional offers.

From the regression analysis of model 10, it has been found that the Value of R Square is .499.
That means, independent variables (Promotional Offers, Customer Support, Availability of
customer service, Network Coverage, Bill payment, Internet Service, Price, Network Quality,
Value Added Services, Complaint Management) have 70.6% impact over the dependent variable
(overall customer satisfaction ). In other words, the dependent variable which is overall customer
satisfaction can be influenced 63.5% by the independent variables listed earlier. Here, stanadard
error of this estimate is .499.

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Network Coverage

H0: Network coverage has no significant influence on overall customer satisfaction.

H1: Network coverage has significant influence on overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 4: Correlation with network coverage

Network Overall
Coverage Satisfaction
Spearman's Network Coverage Correlation
1.000 .087
rho Coefficient
Sig. (2-tailed) . .549
N 50 50
Overall Correlation
.087 1.000
Satisfaction Coefficient
Sig. (2-tailed) .549 .
N 50 50

Decision: Since p-value (.549) is more than (.05), H0 is accepted. That is, network
α value
coverage has no significant influence on overall customer satisfaction.

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Network Quality

H0: Network quality has no significant influence on overall customer satisfaction.

H1: Network quality has significant influence on overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 5: Correlation with network quality

Network Overall
Quality Satisfaction
Spearman's rho Network Quality Correlation
1.000 .325(*)
Coefficient
Sig. (2-tailed) . .021
N 50 50
Overall Correlation
.325(*) 1.000
Satisfaction Coefficient
Sig. (2-tailed) .021 .
N 50 50
* Correlation is significant at the 0.05 level (2-tailed).

Decision: Since p-value (.021) is less than (.05), H0 is rejected and H1 is accepted. That is,
α value
network quality has significant influence on overall customer satisfaction.

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Customer Support (Helpline)

H0: Customer support has no significant influence over overall customer satisfaction.

H1: customer support has significant influence over overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 6: Correlation with customer support

Customer Overall
Support Satisfaction
Spearman's rho Customer Support Correlation
1.000 .316(*)
Coefficient
Sig. (2-tailed) . .025
N 50 50
Overall Correlation
.316(*) 1.000
Satisfaction Coefficient
Sig. (2-tailed) .025 .
N 50 50
* Correlation is significant at the 0.05 level (2-tailed).

Decision: Since p-value (.025) is less than (.05), H0 is rejected and H1 is accepted. That is,
α value
customer support has significant influence on overall customer satisfaction.
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Complaint Management

H0: Complaint Management has no significant influence on overall customer satisfaction.

H1: Complaint Management has significant influence on overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 7: Correlation with complaint management

Complaint Overall
Management Satisfaction
Spearman's rho Complaint Correlation
1.000 .275
Management Coefficient
Sig. (2-tailed) . .053
N 50 50
Overall Satisfaction Correlation
.275 1.000
Coefficient
Sig. (2-tailed) .053 .
N 50 50

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Decision: Since p-value (.053) is more than (.05), H0 is accepted. That is, complaint
α value
management has no significant influence on overall customer satisfaction.

Availability of customer service centers

H0: Availability of customer service centers has no significant influence on overall customer
satisfaction.

H1: Availability of customer service centers has significant influence on overall customer
satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 8: Correlation with availability of customer centers

Availability
of customer Overall
service Satisfaction
Spearman's rho Availability of Correlation
1.000 .264
customer service Coefficient
Sig. (2-tailed) . .063
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N 50 50
Overall Correlation
.264 1.000
Satisfaction Coefficient
Sig. (2-tailed) .063 .
N 50 50

Decision: Since p-value (.063) is more than (.05), H0 is accepted. That is, availability of
α value
customer service centers has no significant influence on overall customer satisfaction.

Price

H0: Price has no significant influence on overall customer satisfaction.

H1: Price has significant influence on overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 9: Correlation with price

Overall
Price Satisfaction

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Spearman's rho Price Correlation


1.000 .301(*)
Coefficient
Sig. (2-tailed) . .034
N 50 50
Overall Correlation
.301(*) 1.000
Satisfaction Coefficient
Sig. (2-tailed) .034 .
N 50 50

Decision: Since p-value (.034) is less than (.05), H0 is rejected and H1 is accepted. That is,
α value
price has significant influence on overall customer satisfaction.

Bill payment system

H0: Bill payment has no significant influence on overall customer satisfaction.

H1: Bill payment has significant influence on overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,


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Table 10: Correlation with bill payment system

Bill Overall
payment Satisfaction
Spearman's rho Bill payment Correlation
1.000 .409(**)
Coefficient
Sig. (2-tailed) . .003
N 50 50
Overall Correlation
.409(**) 1.000
Satisfaction Coefficient
Sig. (2-tailed) .003 .
N 50 50
** Correlation is significant at the 0.01 level (2-tailed).

Decision: Since p-value (.003) is less than (.05), H0 is rejected and H1 is accepted. That is,
α value
bill payment has significant influence on overall customer satisfaction.

Value added service

H0: Value added service has no significant influence on overall customer satisfaction.

H1: Value added service has significant influence on overall customer satisfaction.

Level of significance, = 0.05


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Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 11: Correlation with value added service

Value
Added Overall
Services Satisfaction
Spearman's rho Value Added Correlation
1.000 .414(**)
Services Coefficient
Sig. (2-tailed) . .003
N 50 50
Overall Satisfaction Correlation
.414(**) 1.000
Coefficient
Sig. (2-tailed) .003 .
N 50 50

Decision: Since p-value (.000) than (.05), H0 is rejected and H1 is accepted. That is, Value
α value
added service has significant influence on overall customer satisfaction.

Internet Service

H0: Internet service has no significant influence on overall customer satisfaction.


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H1: Internet service has significant influence on overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 12: Correlation with internet service

Internet Overall
Service Satisfaction
Spearman's rho Internet Service Correlation
1.000 .128
Coefficient
Sig. (2-tailed) . .375
N 50 50
Overall Correlation
.128 1.000
Satisfaction Coefficient
Sig. (2-tailed) .375 .
N 50 50

Decision: Since p-value (.375) is more than (.05), H0 is accepted. That is, internet service
α value
has no significant influence on overall customer satisfaction.

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Promotional offer

H0: Promotional offer has no significant influence on overall customer satisfaction.

H1: Promotional offer has significant influence on overall customer satisfaction.

Level of significance, = 0.05


Decision rule: If P Value < , Ho is rejected. Otherwise accepted


α value

The test statistics is,

Table 13: Correlation with promotional offer

Promotional Overall
Offers Satisfaction
Spearman's rho Promotional Correlation
1.000 .330(*)
Offers Coefficient
Sig. (2-tailed) . .019
N 50 50
Overall Correlation
.330(*) 1.000
Satisfaction Coefficient
Sig. (2-tailed) .019 .
N 50 50
* Correlation is significant at the 0.05 level (2-tailed).

Decision: Since p-value (.019) is less than (.05), H0 is rejected. That is, promotional offer
α value
has significant influence on overall customer satisfaction.

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Fitted regression model:

Y=β0+ β2* X2+ β3* X3+ β6* X6+ β7* X7+β8* X8+β10* X10

Here,
Constant= β0
Independent Variables:

X2 =Network Quality
X3=Customer Support
X6= Price (Tariff)
X7=Bill Payment System
X8=Value Added Services
X10=Promotional offer

Dependent Variable:
Y= Overall satisfaction
**β2, β3, β6, β7, β8, β10 are coefficients

Now, the ability of the independent variables x2, x3 ….x10 to explain the behavior of the dependent
variable Y would be tested. Basically, in this test it will be investigated whether it is possible all
the dependent variables have zero net regression coefficients. Could the amount o explained
variation, r2 occur by chance? This is referred to as Global test.

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If the null hypothesis is true, it implies the regression coefficients are all zeo and logically, are of
no use in estimating the dependent variable, in that case, some other independent variables will
be considered.

Global test

H0: β0= β2= β3= β6=β7=β8=β10=0

H1: Not all the βs are 0

Level of significance, = 0.05


Decision Rule: Reject Ho, if >


FCOMP FTABLE

F distribution is to be used.

=2.04
FTABLE

The test statistics is,

Table 14: ANOVA test

Sum of
Model Squares df Mean Square F Sig.
10 Regressi
7.976 6 1.329 5.012 .001
on
Residual 11.404 43 .265
Total 19.380 49
a Predictors: (Constant), Promotional Offers, Customer Support, Network Quality, Bill payment, Price, Value
Added Services
b Dependent Variable: Overall Satisfaction

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Decision: Since (5.012) is more than (2.04), H0 is rejected.


FCOMP FTABLE

That is, not all the βs are 0

Now the variables individually will be tested to determine which regression coefficients may be
0 and which are not. Because if a β could equal 0, it implies that this particular independent
variable is of no value in explaining any variation in the dependent value. If there are coefficients
for which H0 cannot be rejected, they will be eliminated from the regression equation.

Individual test

Level of significance, = 0.05


Critical value of t is 2.021 using {n-(k+1)} formula where, n=50 and k=6

Decision rule: Ho will be rejected if or .


t COMP > 2.0121 t COMP < −2.021

t distribution is to be used.

Table 15: Coefficients of variables

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .680 .324 2.099 .042
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Network
.186 .098 .240 2.898 .064
Quality
Customer
.061 .104 .086 2.587 .560
Support
Price -.030 .072 -.061 -4.18 .678
Bill payment .186 .097 .289 2.915 .062
Value Added
.113 .091 .188 3.240 .222
Services
Promotional
.149 .083 .247 4.795 .080
Offers
a Dependent Variable: Overall Satisfaction

Network Quality Customer support

: β2= 0 : β3= 0
H0 H0

:
:
H1 β 2 ≠ 0 H1 β 3 ≠ 0

=0.05
=0.05
α α

t distribution is to be used.
t distribution is to be used.
Decision:
Decision:

. So, Ho is rejected So, Ho is rejected.


t COMP > 2.0121 t COMP > 2.0121

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Price t distribution is to be used.

: β6= 0 Decision:
H0
. So, Ho is
t COMP ( 2.915) > 2.021
:
H1 β6 ≠ 0 rejected.

Value added services


=0.05
α
: β8= 0
H0
t distribution is to be used.

Decision: :
H1 β8 ≠ 0
. So, Ho is
t COMP (-4.18) < −1.980
=0.05
rejected. α

Bill payment
t distribution is to be used.
: β7= 0
Decision:
H0
. So, Ho is
: t COMP (3.240) > 2.021
H1 β 7 ≠ 0
rejected.

=0.05
α

Promotional offers

: β10= 0
H0

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:
H 1 β10 ≠ 0

=0.05
α

t distribution is to be used.

Decision:

. So, Ho is rejected
t COMP (4.795) > 2.021

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Result:

Thus, we conclude that regression coefficients for the network quality, customer support, price,
bill payment system, value added service and promotional offer are not equal to zero.
Thus, the revised model is,
Y=2.099+ 2.898* X2+ 2.587* X3-4.18* X6+2.915 * X7+3.240* X8+4.795* X10

Independent Variables Dependent Variable

Network Quality

Customer Support
Overall Customer satisfaction
Price (Tariff)

Bill Payment System

Value Added Services

Promotional offers

Figure 28: Derived framework of customer satisfaction


Or
Overall customer satisfaction=2.099+ 2.898* network quality + 2.587* customer support -4.18*
price+2.915 * bill payment system +3.240* value added service +4.795* promotional offer

It means that,
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Overall customer satisfaction = f (network quality, customer support, price, bill payment system,
value added service and promotional offer)

This model of satisfaction is valid because 78% respondents are satisfied with their operators
whereas 18% remained neutral. 4% respondents are dissatisfied.

Overall Satisfaction
80

70

60

40

20
18
Percent

8
0 4
highly satisfied Satisfied Indifferent Dissatisfied

Overall Satisfaction

Figure 29: overall satisfaction of respondents

The model of customer satisfaction derived from the same source where this overall satisfaction
level has been found. Moreover, most of the respondents who are satisfied with their operator
were satisfied to the independent factors as well.

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4.3 Consumers’ Attitude (Section C of questionnaire)


Some other factors in section C of questionnaire have been attempted to analyze to get idea about
consumers’ perception towards telecom industry:

It is important to verify the statements that have been made in questionnaire which will help us
understand consumers’ attitude towards telecom industry. One sample t-test has been used to
figure out the validity of each statement. The confidence level is 95% confidence interval.
Beneath, the results have been shown:

1. Service features are important in operator selection

H0: Service features are not important in operator selection

H1: Service features are important in operator selection

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < -value. Otherwise, accept H0

Table 16: One-Sample Test of service feature


Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Service
18.040 49 .000 1.56 1.39 1.73
feature

Statistical Decision: Since p-value ( .000)< -value (.05) H0 is rejected and H1 accepted.

It means that Service features are important in operator selection

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2. Brand image is important in operator selection

H0: Brand image is not important in operator selection

H1: Brand image is important in operator selection

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < α -value. Otherwise, accept H0

Table 17: One-Sample Test of brand image

Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Brand Image 15.277 49 .000 2.26 1.96 2.56

Statistical Decision: Since p-value (.000) < -value (.05) H0 is rejected and H1 accepted.
It means that Brand image is important in operator selection.

3. Operators should further reduce the cost

H0: Operators should not reduce the cost

H1: Operators should further reduce the cost

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < -value. Otherwise, accept H0

Table 18: One-Sample Test of cost reduction

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Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Cost reduction 16.066 49 .000 1.72 1.50 1.94

Statistical Decision: Since p-value (.000) < -value (.05) H0 is rejected and H1 accepted.

It means that Operators should further reduce the cost

4. Due to problem in changing mobile number users can not switch to other operators.

H0: Others’ recommendation does not matter in selecting operator

H1: Due to problem in changing mobile number users can not switch to other operators.

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < α -value. Otherwise, accept H0

Table 19: One-Sample Test of switching

Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Opeartor
12.032 49 .000 1.64 1.37 1.91
switching

Statistical Decision: Since p-value (.000) < -value (.05) H0 is rejected and H1 accepted.

It means that Due to problem in changing mobile number users can not switch to other
operators.

5. Others’ recommendation matters in selecting operator


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H0: Others’ recommendation does not matter in selecting operator

H1: Others’ recommendation matters in selecting operator

Level of significance,  = 0.05

Decision Rule: Reject H0 if p-value < -value. Otherwise, accept H0

Table 20: One-Sample Test of recommendation

Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Recommendation 19.395 49 .000 3.42 3.07 3.77

Statistical Decision: Since p-value (.000) < α -value (.05) H0 is rejected and H1 accepted.

It means that Others’ recommendation matters in selecting operator

6. Advertisements are attractive

H0: Advertisements are not attractive

H1: Advertisements are attractive

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < α -value. Otherwise, accept H0

Table 21: One-Sample Test of advertisements

Test Value = 0
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95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Advertisements 18.444 49 .000 2.42 2.16 2.68

Statistical Decision: Since p-value (.000) < α -value (.05) H0 is rejected and H1 accepted.

It means that Advertisements are attractive

7. Service quality is good enough to charge current price

H0: Service quality is not good enough to charge current price

H1: Service quality is good enough to charge current price

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < -value. Otherwise, accept H0

Table 22: One-Sample Test of service quality

Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Service
19.893 49 .000 2.98 2.68 3.28
quality

Statistical Decision: Since p-value (.000) < -value (.05) H0 is rejected and H1 accepted.

It means that Service quality is good enough to charge current price

8. Operators are extremely profit oriented

H0: Operators are not profit oriented

H1: Operators are extremely profit oriented

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Level of significance,  = 0.05

Decision Rule: Reject H0 if p-value < α -value. Otherwise, accept H0

Table 23: One-Sample Test of profit

Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Profit
14.343 49 .000 1.94 1.67 2.21
making
Statistical Decision: Since p-value (.000) < -value (.05) H0 is rejected and H1 accepted.

It means that Operators are extremely profit oriented

9. Operators are competitive enough to retain customers

H0: Operators are not competitive to retain customers

H1: Operators are competitive enough to retain customers

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < -value. Otherwise, accept H0

Table 24: One-Sample Test of competition

Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
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Competition 20.665 49 .000 2.32 2.09 2.55

Statistical Decision: Since p-value (.000) < -value (.05) H0 is rejected and H1 accepted.

It means that Operators are competitive enough to retain customers

10. If switching costs were lower, many would change their operator.

H0: If switching costs were lower, many would not change their operator.

H1: If switching costs were lower, many would change their operator.

Level of significance, α = 0.05

Decision Rule: Reject H0 if p-value < -value. Otherwise, accept H0

Table 25: One-Sample Test of switching cost

Test Value = 0
95% Confidence
Interval of the
Difference
Sig. (2- Mean
t df tailed) Difference Lower Upper
Switching
20.023 49 .000 2.94 2.64 3.24
cost

Statistical Decision: Since p-value (.000) < α -value (.05) H0 is rejected and H1 accepted.

It means that if switching costs were lower, many would change their operator.

11. You would buy the same operator, if another connection is needed (repurchase)

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Repurchase
50

40 42

30

26
20
18

10 12
Percent

0
Strongly Agree Indiff erent Strongly Disagree
Agree Disagree

Repurchase

Figure 30: repurchase intention of respondents

In this survey, respondents were asked whether they are willing to purchase the same
operator, if they had to. 42% respondents strongly agreed to buy the operator again whereas
26% were agreed to buy. A little portion of respondents were confused whereas 20%
disagreed.

12. You would recommend others to use your operator

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Word-of-mouth
40

34
30
30
28

20

10
Percent

0
Strongly Agree Indifferent Strongly Disagree
Agree Disagree

Word-of-mouth

Figure 31: word-of-mouth intention of respondents

In the survey, around 40% respondents are sure that they will recommend others to use
their operators whereas 30% will not. 28% respondents were in neutral position.
Certainly, it indicates customers’ satisfaction and promotes the products to position itself
in the market.

13. You would change your operator, if MNP introduced


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MNP
40

38

30

24
20
20

10
10
Percent

0
Strongly Disagree Strongly Agree Agree
Disagree Indifferent

MNP

Figure 32: Loyalty level of respondents

Although consumers were satisfied with the services they are getting which proved in their
word-of-mouth practices, 38% respondents agreed with the statement that they will leave their
operator if they had been given a chance to change operator keeping the number with them. It
proves the third statement in the section C of questionnaire that due to problem in changing
mobile number, users cannot switch to other operators. But 20% respondents claimed that they
will stick to their operator, certainly, they are showing loyalty to their operators. Overall, not a
good loyalty level is there in respondents’ intention.

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5. DISCUSSION
Determinants of customer satisfaction in any industry have always been a great interest for
researchers. Many studies have been undertaken to identify the determinants of satisfaction in
telecom of Bangladesh. Findings of this study match with the majority of them. In this study it
has been found that satisfied customers tend to be satisfied in network quality, customer support,
price, bill payment system, value added services and promotional offers. Almost similar results
have been found in earlier studies as well.

Ibrahim, Ishtiaque and Ayub in 2007, found in their survey that price is a highly important factor
to choose the service of mobile telecommunication company. It is evident in their survey that
price sensitivity influences the customer enormously. Value added services and call quality also
have great influence in satisfaction level. When the customer support become wider, the trend of
satisfaction becomes strong. Moreover, billing system is also important to raise customers’
satisfaction.

In this study, internet service showed weak association with overall satisfaction and thus, got
eliminated. But Moqbul, Rubina, and Mizenur in 2009, found in their survey that internet service
is a strong predictor of customer satisfaction.

Fowzia and Diba in 2009 identified four factors in their study that are responsible for choosing
an operator. Among the four factors, promotional offer is the most important for operator
selection. The other key factors are charge, after sale service and value added service. All these
four factors have specifically been identified in this study as well.

Asaduzzaman, Amdadul and Tawhida in 2009 conducted a survey and came up with a result. It
says that quality of service, bill payment system, FnF, network quality, network coverage are
strong predictors of user satisfaction in Bangladesh.

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Last of all, it can be assumed that user satisfaction towards telecom service in Bangladesh lie
depend on several key determinants and those are responsible for customer satisfaction and
retention.

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6. RECOMMENDATION
This research aimed to find out critical factors which mostly influence the level of satisfaction of
mobile phone users in Bangladesh. For this reason 10 variables have been chosen which might
influence the user satisfaction. But from the analysis it has been seen that all the factors do not
influence the user satisfaction equally.

Major findings are:


Network quality, customer support, price, bill payment system, value added service and
promotional offer are the most influential factors that affect overall user satisfaction.

Based on the findings, here are some recommendations for the telecom companies:
Before offering any new package they should consider these factors seriously in order to
satisfy their target market customers and therefore getting the comparative advantages.
Customer relation affairs should be improved in order to increase and maintain
satisfaction of the users.
Network coverage is no more competitive advantage, though they should not ignore this.
But they should keep in mind that whatever the coverage is, it should have quality.
Operators can reduce customer costs and provide increased value by reducing tariff and
increasing smaller pulses.
Different mobile phone operators have occupied different positions in the perception of
consumers. Each mobile phone operator should develop their positions in the mind of
customers where the operators need improvement in different value added services.
Billing statement should be clearly described and roaming charges should be reduced.
While introducing innovative VAS to the system, the cost of providing VAS must not
exceed the customer benefit.
Expansion of more and more customer service system whether be it over the phone or
physical place, should be there to provide an excellent usage experience.
Extensive market research should be there to listen to the customers so that no customer
feels inferior and moreover, it is likely to increase customer satisfaction and loyalty.
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Operators should invest more corporate social responsibilities so that they contribute to
the society and customers get a positive idea about the operators.
Operators generally have a huge capital investment and they have huge loan amount as
well. So they should restructure their capital structure by raising fund from stock market
or in short, they should offer IPO (Initial Public Offering) in the stock market.
Although, operators recruit many Bangladeshi people as employee they hire top
management from somewhere else. They should rely on Bangladeshi human resources’
capability.
Operators should continuously introduce new technologies and provide funds as
scholarship or sponsorship to the universities in this regard.

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7. CONCLUSION
In this modern era, we cannot think of a world without telecommunication. It is to be mentioned
that the world is going to be smaller and smaller due to this technology. As a matter of reference,
mobile communication launched in Bangladesh in August 1993. Consequently, by this time,
almost seven crore people benefited by using this technology. In addition, thousands of people or
even more are managing their livelihood by being engaged in this industry. There are sex mobile
operators in Bangladesh at this moment and they are continuously trying to compete with each
other. So, if any company wants to dominate the market it must consider the satisfaction level of
the customers. It must offer such a package as the customer demands otherwise it will not
survive in the market. To realize this goal, this research has been conducted in order to find out
the factors which mostly influence the customer satisfaction. As customer demands change from
time to time so mobile phone service providers should continuously carry on research how they
can satisfy the customers. In the paper, some key factors have been identified that contribute
highly in overall customer satisfaction. These factors that have been identified are of great
importance to mobile service providers and to customers as well. Because focusing in these
factors can lower customers’ cost and increase product benefit to the customers. Operators can
also benefit from these factors because it will ensure customer satisfaction and loyalty which will
earn bread for them. In addition to realizing the importance of telecommunication, we have tried,
through our research, to find out how the service providers can influence more customers to use
the telecommunication system by providing better services. Because it is not possible to develop
the country in all field without developing telecommunication. It can be concluded that this
research will help the mobile service providers to improve their services in the fields in which
they are concerned.

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BIBLIOGRAPHY
 Books:
 Business Research Methods, eighth edition, by William G. zikmund, Barry J. Babin, John C.
Carr and Mitch Griffin; South western.
 Douglas A. Lind, William G. Marchal and Samuel A. Wathen-Statistical techniques in
Business and economics, International edition, Mcgraw Hill.
 Kotler, P. & Armstrong, G. (2010), “Principles of Marketing”, 13th ed. New Jersey: Prentice
Hall.
 Bitner, M. J. & Zeithaml, V. A. (2003).Service Marketing (3rd ed.), Tata McGraw Hill, New
Delhi.

➢ Publications:
1. Annual Report 2010; GrameenPhone
2. Annual Report 2007-2008, BTRC.

 Urls:
1. http://en.wikipedia.org
2. http://www.btrc.gov.bd
3. http://www.grameenphone.com
4. http://www.banglalinkgsm.com/
5. http://mushfiq009.wordpress.com/%E2%80%9Coverview-of-mobile-telecommunication-
industry-in-bangladesh-%E2%80%9D/
6. http://www.robi.com.bd
7. http://www.citycell.com/
8. http://www.bd.airtel.com
9. http://www.teletalk.com.bd
10.http://www.itu.int/ITU-D/ict/statistics/
11.http://www.telecominsight.com
12.http://statistics.laerd.com/spss-tutorials/spearmans-rank-order-correlation-using-spss-
statistics.php

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➢ Articles:

1. Mohammad A. Ashraf and Mofd. H. R. Joarder- Cell Phone customer experience: An appraisal
for grameenphone (GP) in Bangladesh, East West Journal of Business and Social Studies,
January 2010.
2. Abureza Mohammad Muzareba and Shehely Parvin- Mobile Telecommuniation Market in
Bangladesh, June 2009.
3. Md. Asaduzzaman, Md. Amdadul Hoque and Ms. Tawhida Khatoon- Service quality of mobile
phone & user satisfaction in Bangladesh, BUBT journal, vol.2, 2009.
4. Md. Jahangir Alam, Shakila Yasmin, and Homaya Latif Ahmed- Factors affecint customer
satisfaction in the mobile phone industry: an empirical study in Bangladesh, 2007.
5. Mohammd Moqbul Hossain Bhuiyan, Rubina Maleque and Mohammad Mizenur Rahaman-
Users’ attitudes towards mobile phone internet in Bangladesh:a survey study, December 2009.
6. Soyeniyi O. J., Abiodun A. J. - Switching Cost and Customers Loyalty in the Mobile Phone
Market: The Nigerian Experience
7. Masud Ibn Rahman & A. S. M. Tareq -Factors Shaping the Customer’s Choice of Brands in
Mobile Telecommunication Sector in Bangladesh: An Insight Into Aktel GSM Bangladesh Ltd
8. Mohammad Muzahid Akbar and Noorjahan Parvez –“Impact of service quality, trust, and
customer satisfaction on customers loyalty”; ABAC Journal Vol. 29, No. 1 (January-April 2009,
pp.24-38)
9. Abdullah Mohammad Ibrahim, Abu Naser Ahmed Ishtiaque and Mohammad Ayub Islam;
Customer loyalty: A study of Mobile Telecommunication Service Providers in Bangladsh,
Journal of Business studies, June 2007.
10. Shahida Sultana, Suntu Kumar Ghosh, and Mohammad Ashiqure Rahman Khan- Factors
affecting the selection of mobile handset in Bangladesh.
11. Ishrat Sultana and Zahidul Alam- Mobile Phone Value-Added Services: A Surviving Strategy
While Ensuring Customer Satisfaction, ASA University Review, December 2008.
12. Rehana Fowzia and Farhana Diba, Factors affecting customers choice on mobile phone operators:
A case study on grameenphone,2009.
13. Boeselie, P., Hesselink, M. & Wiele, T.V (2002). “Empirical evidence for the relationship
between customer satisfactionand business performance”. Managing Service Quality, 12 (3), 184-
193.
14.Ayesha Saeed, Nazia Hussain, Adnan Riaz –“Factors Affecting Consumers’ Switching
Intentions” , European Journal of Social Sciences – Volume 19, Number 1 (2011)
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Telecom Industry

15.Muzammil Hanif, Sehrish Hafeez, Adnan Riaz- “Factors Affecting Customer Satisfaction”;
International Research Journal of Finance and Economics - Issue 60 (2010)
16. Oliver, R.L. (1999), “Whence Consumer Loyalty, “The Journal of Marketing, Fundamental
Issues and Directions for Marketing, Vol. 63, pp. 33-44
17. Tse, D. K., and Wilton, P. C. (1988), "Models of Consumer Satisfaction Formation: An
Extension," Journal of Marketing Research, 25 (May), 204-12.
18. Hennig-Thurau, T., and Klee, A. (1997), “The Impact of Customer Satisfaction and Relationship
Quality on Customer Retention: A Critical Reassessment and Model Development, “Psychology
& Marketing”, Vol. 14, Issue 8, Page 737–764
19. Gustafsson, A., Johnson, M.D., and Roos, I. (2005), “The Effects of Customer Satisfaction,
Relationship Commitment Dimensions, and Triggers on Customer Retention”, Journal of
Marketing, Vol. 69, pg. 210–218.
20. Kim, M.K., Park, M.C., and Jeong, D.H. (2004) “The effects of customer satisfaction and
switching barrier on customer loyalty in Korean mobile telecommunication services”, Electronics
and Telecommunications Research Institute, School of Business, Information and
Communications University, Yusong-gu, Hwaam-dong, Taejon 305-348, South Korea.
21. Deng, Z., Lu, Y, Wei, K. K., Zhang, J. (2009), “Understanding customer satisfaction and loyalty:
An empirical study of mobile instant messages in China”,International Journal of Information
Management, Vol. 30, pages 289–300
22. Eshghi, A., Haughton, D., and Topi, H., (2007), “Determinants of customer loyalty in the
wireless telecommunications industry”,Telecommunications policy, Volume 31, Issue 2, Pages
93-106.
23. Anderson, E.W., Fornell, C., and Mazvancheryl, S.K. (2004), “Customer Satisfaction and
Shareholder Value”, Journal of Marketing, Vol. 68, pg; 172–185.
24. Turel, O., and Serenko, A. (2006), “Satisfaction with mobile services in Canada: An empirical
investigation”, telecommunication policy, volume 30, issue 5, 6, Pages 314-331.
25. Russell-Bennett, R, McColl-Kennedy, J.R., Coote, L.V. (2007) “Involvement, satisfaction and
brand loyalty in a small business services setting”, Journal of Business Research, Volume 60,
Issue 12, December 2007, Pages 1253-1260.
26.Mohammed Upal – “Telecommunication Service Gap: Call Center Service Quality Perception
and Satisfaction” , Communications of the IBIMA , Volume 3, 2008

APPENDIX
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Factors Affecting Customer Satisfaction in
Telecom Industry

Factors affecting customer satisfaction in telecom industry


Survey Questionnaire
I am a student from East West University, conducting a survey on “Factors affecting customer
satisfaction in telecom industry”. For this purpose, I request you to fill this questionnaire. I assure you
that I will not use the filled information for any other purpose other than academic purpose.

Part A: Personal Information

1. To which age group do you belong?


a)
b) Less than 18
c) 19-25
d) 26-30
e) 30-40
f) 40+

1. What is your Profession?


a)
b) Student
c) Business
d) Government Service
e) Private Service
f) Others

1. How much is your monthly income?


a)
b) Less than BDT 20,000
c) BDT 20,000-30,000
d) BDT 30,001- 40,000
e) BDT 40,001-50,000
f) BDT 50,000+

1. Which one is your current mobile operator?


a)
b) Grameen Phone
c) Robi Axiata Ltd.
d) Bangla Link
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Factors Affecting Customer Satisfaction in
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e) Airtel Bangladesh
f) Teletalk
g) Citycell
1.

2. What type of packages do you use?


a)
b) Post paid-corporate
c) Post paid individual
d) Prepaid-corporate
e) Prepaid-individual

1. How much is your monthly usage?


a)
b) Less than BDT 100
c) BDT 101-500
d) BDT 501-1000
e) BDT 1001-2000
f) BDT 2000+

1. For how many years have you been using your connection?
a)

b) Less than 1 year


c) 1-3 years
d) 3-5 years
e) 5+ years

Part B: Customer Satisfaction level and loyalty

1 2 3 4 5
Highly satisfied Satisfied Indifferent Dissatisfied Highly dissatisfied

Service Degree

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Telecom Industry

1 Network Coverage 1 2 3 4 5
)

2 Network Quality (voice clarity/call drop) 1 2 3 4 5


)

3 Customer support (helpline) 1 2 3 4 5


)

4 Complaint management/Problem resolution process 1 2 3 4 5


)

5 Availability of customer service centers 1 2 3 4 5


)

6 Price (overall charges) 1 2 3 4 5


)

7 Bill payment system 1 2 3 4 5


)

8 Value Added Service (SMS/MMS/roaming/caller 1 2 3 4 5


) tunes)

9 Internet service 1 2 3 4 5
)

1 Promotional offers (call rate discount/ bonus 1 2 3 4 5


0 talktime)
)

1 Overall satisfaction 1 2 3 4 5
1
)

The following questions seek your opinion:

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1 2 3 4 5
Strongly agree Agree Indifferent Disagree Strongly Disagree

Statement Degree

1 Service features are important in operator selection 1 2 3 4 5


)

2 Brand image is important in operator selection 1 2 3 4 5


)

3 Due to problem in changing mobile number, users 1 2 3 4 5


) can not switch to other operators

4 Operators should further reduce the cost 1 2 3 4 5


)

5 Others’ recommendation matters in selecting 1 2 3 4 5


) operator

6 Advertisements are attractive 1 2 3 4 5


)

7 Service quality is good enough to charge current 1 2 3 4 5


) price

8 Operators are extremely profit oriented 1 2 3 4 5


)

9 Operators are competitive enough to retain 1 2 3 4 5


) customers

1 If switching costs were lower, many would change 1 2 3 4 5


0 their operators
)

1 You would buy the same operator, if another 1 2 3 4 5


1 connection is needed (repurchase)
)

1 You would recommend others to use your operator 1 2 3 4 5


2

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1 You would change your operator, if MNP 1 2 3 4 5


3 introduced
)

a)

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