SWOT Analysis Report

On
Teletalk Bangladesh Limited (TBL)

Prepared by

Trishia Nashtaran
Assistant Manager
System Operations

Dated: 2nd April, 2014

Introduction .................................................................................................................................... 3

Strength of TBL ................................................................................................................................ 3

Weakness of TBL .............................................................................................................................. 4

Opportunity for Teletalk .................................................................................................................. 5

Threat for Teletalk ........................................................................................................................... 5

Recommendations ........................................................................................................................... 6

Conclusion....................................................................................................................................... 6

1 Introduction
A SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a business venture. It involves specifying the objective of
the business venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieving that objective. The degree to which the internal
environment of the firm matches with the external environment is expressed by the concept of
strategic fit.
Here we will go through strengths, weaknesses, opportunities, and threats of Teletalk
Bangladesh Ltd to identify where we stand and where we can look forward to.

2 Strength of TBL

A loyal customer group:

In Bangladesh, patriotism is the essence of our existence. As the only Bangladeshi mobile
operator and the only operator with 100% state owned and engineering human resource base,
Teletalk thrives to become the true peoples phone Amader Phone. The slogan "Desher Taka
Deshey Rakhun" makes a great sense for the people to see their country more economically
solvent and powerful. Notwithstanding a highly competitive telecommunication market, a loyal
customer group is always engaged with Teletalk.

Management Profile:
Being a state owned company, Teletalks Board of Directors consists of senior government
officials. Therefore, TBL has the opportunity to express their demand to the highest authority of
Government through the Board members. Along with veteran BoD members, Teletalk has highly
experienced and technically expert management. As the main part of the management comes
from telecommunication ministry, the first telecom industry of Bangladesh (Bangladesh
Telecommunication Company Limited), they have got utmost knowledge at this sector in
Bangladesh. Teletalk has also hired skilled professionals in the management from private sector,
which is crucial in order to keep up with the competition. Besides, A number of employees are
sent abroad by Teletalk for professional training.

Business and financial benefits as a Government owned company:

Teletalk got the first 3G license (as test basis) and has been running 3G services since 14th
October, 2012, under the project named Introduction of 3G Technology and Expansion of 2.5G
Network. Though usually the commercial loan interest rate is very high, the DPA part (major
amount) of 3G Project is aided by the loan of China Exim Bank with a low interest rate and
flexible time period for loan payment, under a Government to Government agreement.

Implementing Governments vision of digital Bangladesh:

Teletalk remains clearly ahead of in e-governance, e-education and other digitization procedure.
Teletalk is the pioneer of providing public exam result, processing university admission form fee
collection, medical exam fee collection, BCS exam fee collection through SMS and Web. It not
only enables students to apply for all major universities, medical and BCS exam from their home
but also manages their sit plan, digital admit card and make available them online. Teletalk has
also introduced REB (Rural Electrification Board) Bill Payment service, a unique, innovative and
3

in-house development service, which enables rural people to pay their bill from nearer retailer
shop.

Getting Advantage in Tender Procedure:

According to public procurement policy Government entities cant award any project, service
etc. to private organization without floating tender. The tender procedure is lengthy and
sometimes impractical for certain services. Being a government company Teletalk takes
advantage of signing of MoU with other government entities (all public universities, PSC, NTRCA,
REB etc) without taking part in any tender.

Pioneer of 3G Service in Bangladesh:

Teletalk is the first operator to launch 3G services in Bangladesh. As Governments priority
project, it has got long enough time as the only player in the market to provide 3G services. By
this time it got attention from a significant subscribers base to prove their service quality. As
the very first 3G operator, Teletalk has successfully utilized its opportunity to earn the highest
brand value in the market.

3 Weakness of TBL

Promptness and efficiency of service:

By nature, Teletalk has to go through many administrative and bureaucratic steps to launch a
new service, to change an existing service and to invest for a new a service, which hinders quick
decision, quick implementation and all out marketing.

Customer Care Service:

There are huge complains regarding call centre service. Subscribers have to wait for a long in a
queue to get connected. Call centre support levels are also not divided into different levels
according to complicacy level.

Marketing:
It is tough for Government organization to spend huge money for marketing with maintaining all
administrative procedures in a tight schedule, while all the companies are trying to make space
more with their all out marketing efforts. We report that Teletalk is sluggish to conduct 360
degree marketing approach and establish its brand value.

Internal IT implementation:
Teletalk still does not implement ERP with full phases. Most of works (leave application, meeting
arrangements, interdepartmental letter exchange etc.), which can be permitted easily through
modern ERP system, require manual permissions, which slows down its daily activities.

Recruiting Policy:
Unlike other multinational companies, Teletalk recruits and promotes employees by a general
recruiting policy (Written & VIVA) after a certain time interval fulfilling all the administrative
procedures. A common exam is tough to find right persons for specified positions.

4 Opportunity for Teletalk

Corporate subscribers:
Though it is tough for Teletalk to compete with private operators, it can still bring all
government employees under its umbrella as its corporate subscribers using its advantage of
being a Government owned company. Being a state owned company, Teletalk doesnt require
high revenue like private operators. It can offer cheapest rate of the market to attract not only
Government entities but also private organizations.

3G technology:
As 3G technology is the mainstay for Teletalk now, Teletalk needs to take the full advantage of it
to build a great impression on telecom sector. Unlike second-generation, or 2G networking, 3G
allows for the simultaneous transmission of voice and data due to its increased bandwidth. As
per BTRC website, Teletalk is in the fifth position in respect of subscribers base. However, after
launching 3G it has been creating space in market at a greater acquisition rate.
Teletalk market share was 1.70% on December, 2012 and reached to 2.49% on December, 2013
increased by 0.79%. During this time TBL acquired 1.172 million subscribers with 71.03%
increase rate. The new 1.172 million subscribers are not all 3G users. That means 3G brands also
help Teletalk to attract 2G users. People are more confident ever before on Teletalk services
and it is the time for Teletalk to secure its position and retain customer confidence.

VAS services:
Teletalk is prominent for its unique and innovative VAS services including PSC/JSC/SSC/HSC
result publications, University admission fee collection, Medical admission fee collection, BCS,
NTRCA exam fee collection etc. All these services require a Teletalk prepaid SIM to process
request. A student from PSC exam to his professional exam is well acquainted with Teletalk
services.

Attracting the youth:

The younger generation is more patriotic, they are more honest to see their countrys product
on the top and they value their culture. With proper marketing, Teletalk has good market space
to attract them.

5 Threat for Teletalk

There are some external threats not only for Teletalk but also for whole telecommunication
industry.
Teletalk needs to compete with other giant multinational companies.
A decreasing call rate, increasing competition and increased government regulations
against the telecommunications industry are just a few external threats that can limit a
telecommunications company's future success.
High SIM tax is also a hindrance for growth of this industry.
Though not scientifically proven, some believe telecom frequency is hazardous to health. If
not properly looked after, this issue may affect the sector growth.
5

All the operators of Bangladesh have already launched 3G services. Using 3G network
subscribers can smoothly make packet switch voice & video call over Skype, Viber etc
instead of traditional circuit switch voice call. Over 80% revenue still comes from traditional
voice call. So it is a little concern if subscribers start using more packet switch voice call than
earlier.
Frequent change of leadership delays ongoing projects.

6 Recommendations
Considering all the facts my recommendations toward Teletalk are as follows:
1. Teletalk has increased its network capacity notably in the last two years but still remains far
behind than GP, Robi and Banglalink specially in rural areas. The company network capacity
should be expanded more to compete with the major players of the industry.
2. As the very first 3G service provider in the country, the sub base is rapidly growing and this
trend must be kept constant.
3. Teletalk should concentrate more to increase its brand value. As Teletalks current 3G brand
values is impressive, it should use this opportunity to attract more 2G subscribers. It can
arrange seminar to promote its services, be present on the media with its recent success and
reach more people.
4. Teletalk can focus on achieving the customized service provider for the Corporate Customers.
5. As TBL is providing most coverage in Hill Tracks area, providing unique packages to those
districts can attract more users.
6. It is the time for Teletalk to go for all out promotions. Apart from TV medium and newspaper it
should go for street promotion, campus promotion and mostly on the internet particularly on
Facebook and Twitter in order to attract young generation.
7. As different Educational service is provided by Teletalk SIM only, separate promotion can be
made to utilize those SIMs as a primary SIM to the students.
8. Teletalk should immediately enlist itself in the stock exchange by issuing shares or bond. This
will provide Teletalk the required fund for expansion and quality service, and will bring more
transparency and efficiency in all stage of the company.
9. Teletalk customer care and call centre support should be improved. Most of the operators are
planning to outsource its customer care services. Teletalk can also follow the strategy.
10. Taking advantage of the goodwill, TBL can introduce Mobile Payment System nationwide
through which the country can enter into Digital Payment Platform.

7 Conclusion
As the only state owned company, Teletalk has peoples love and Governments support. Like
any other organization, Teletalk has some advantages over its competitors as a state owned
company and at the same time it has some disadvantages. Its our responsibility to utilize the
advantages, identify the disadvantages and work on those in order to fulfill public expectations. I
believe our skilled and experienced management will lead this company to become a profitable,
healthy, professional and true peoples company.