Chapter-1

1.0 INTRODUCTION:
17 May marks the anniversary of the signature of the first International Telegraph Convention and the creation of the International Telecommunication Union. Since 1973, the occasion has been recognized as World Telecommunication Day. So the significance is clear here that Telecommunication Sector has a particular acknowledgement in the world and the result is the creation of World Telecommunication Day. In fact, Telecommunication is one of the talks of the world at present. Tele density of Bangladesh is still the lowest in South Asia, according to the statistics of the International Telecommunication Union (ITU). About 1.56% among 100 people has access to telecom facility. It shows the high potential in the telecommunication sector in Bangladesh. The existing telecommunication companies operating in Bangladesh have been enjoying competitive advantage because of less global competition but this scenario is soon to be changed as global giants are focusing on Bangladeshi markets with differentiated service and competitive advantages. With the advancement of science and technology, we wonder regularly. Today’s world is the world of technology. No doubt of it that the most success sector is telecommunication. It can be said that last few days ago people can not even imagine about the today’s communication ways. And it is also true that people have become more desperate to think about new things in this sector. In this course of action, mobile, voice call service, SMS, video telephony, teleconference, video conference etc. along with other communicating ways, have emerged. So, the best news from the business point of view is the creation of the telecommunication market. Its size is beyond of imagination that there are 750 GSM operators doing business throughout the world. The picture of Bangladesh helps to realize the matter more clearly that we have six operators even in this small country. And out of 14 corer population, almost 2 corers are using this service. Millions of dollars have already been invested in this sector and also are being invested.

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Technology was not only transforming the character of the telecommunications industry from within, but more significantly, much more significantly in my view, is changing the role played by telecommunications in economic and social life. Telecommunication has come to play a significant role in facilitating Bangladesh as well as the whole world changing social division of labor between material production and business and consumer services. Optical fiber cables, microwave and satellite links to the mainland, to say nothing of cross-border roaming with cellular mobile telephones and pagers, are daily reducing the transactions costs of doing business, widening the scope of markets as well as bringing together friends and families. But more than that, telecommunications is becoming part of the strategic value-chain at the heart of modern business. Obvious examples include the customer services banks provide over their ATM networks; the facilities offered by airline and travel agency customer reservation systems; the information available from online service providers; the planning and co-ordination and monitoring and control facilities available over wide area computer networks together with file transfer and data management capability; and so on. Much speculation takes place as to the future possibilities afforded by inter-active multi-media broadband networks, often with the thought that the technological potential is developing so rapidly that research and development engineers are fast creating solutions in search of problems, and services in search of markets. So it can be easily said that working and studying with this sectors not only clear our view about the Telecommunication but also grasp ample opportunity from this sectors. 1.1 Origin of the Report: MBA program at Stamford University requires a four months long internship program to introduce the students with the real life business administration. Teletalk Bangladesh limited was the organization where the internship took place. The topic was set and supervised by the internship supervisor Professor Dr. Anisur Rahman, Department of Marketing, Faculty of Business Studies, University of Dhaka and also guided by the Manager of the Teletalk Bangladesh Limited.

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1.2 Problem Statement of the Report The problem statement of this research is Exploration of "Marketing Prospects and Problems of Telecommunication Industries in Bangladesh. Scenario: A Study of Teletalk Bangladesh Limited". 1.3 Objectives of the Study: As telecommunication sector is booming business at present over the world and as I am working in the marketing department of a big telecommunication company, the topics is so interesting to work with. The broad objective has been stated as the title of this project. Even this broad objective can be fragmented into some smaller, clearer, specific objectives. A) Broad Objective: The broad objective of this project is to study the marketing prospects and problems of Teletalk Bangladesh Ltd. comparing the whole marketing situation of telecommunication market in Bangladesh with Teletalk Bangladesh limited
B) Specific objectives:

• • • • • •

To have an idea about the real situation of Mobile Market in Bangladesh and abroad. To have an idea of marketing activities of different Mobile operators operating in Bangladesh. Comparing the SWOT of different operators in Bangladesh To focus on the competitive advantages enjoyed by the Teletalk Bangladesh Ltd. over its competitors. To know the service marketing strategies Teletalk Bangladesh Ltd. To know different factors affecting the loyalty of Teletalk Bangladesh Limited and determine the most important factors for recommendation by using statistical tools.

To compare the different marketing strategies of TBL with other operators.

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1.4 Scope of the Study: The project part of this report focuses on Marketing Situation of different operators. It also determines the loyalty factor of Teletalk Bangladesh Limited. This report covers the present status of different operators, as well as the SWOT analysis of theses operators, their promotional activities, their tariffs and other issues. This study covers only Dhaka City because of possible complexity and difficulty in covering whole country and because of shortage of time and manpower required for the survey. Professionals of different operators, their clients, dealers and individual customers are the main population of the study. 1.5 Limitations: Limitation, which I have faced while doing my report are discussed below:  Since the Teletalk at its early stage in Bangladesh, not all even are well-known with the service of the mobile company. One of the major limitations faced while conducting the study was to communicate with the selected respondents because they were very busy with their regular jobs.  As, I had more dependence on the primary sources, so there might be some level of inaccuracy with those collected information.  Confidential information regarding past marketing and sales information was not accurately obtained. Alike all other business holders also very conservative and strict in providing those information. Still I had tried my best in obtaining that sensitive information, as much as possible.  Many of the analysis on the obtained data are based upon my sole interpretation. This in result might bring some biases, as lack of knowledge and depth of understanding might hinder me to produce an absolute authentic and meaningful report.  Time constraint was another limitation restricting this report from being more detailed or analytical. The relationship managers at the operation or strategic level of the concerned department are terrible busy with meeting their targets. So, it was very difficult for me to get them free and obtain some practical ideas regarding their expectation and opportunities regarding my topic.

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1.6 Sources and Methods of Data Collection: This research is mainly exploring the marketing prospects and problems of telecommunication industries in Bangladesh. It also explores the determining factors of the brand loyalty of Teletalk Bangladesh limited. The research method of this paper is exploratory one i.e. secondary data analysis and personal interview. Primary Source: Interview with the individual subscriber of different operators. Secondary Source: The secondary sources like company’s internal newsletter, journals, web pages, annual reports, various books, and other internal publications were also used to get information when necessary. 1.7 Sampling: A) Definition of the Population: Two major types of population were targeted for the study. Subscribers of different mobile operators are mainly the targeted population. There are many categories of mobile subscriber. For example, businesspersons, corporate clients, small and medium sized enterprises, employees, professionals, students all are Mobile subscriber. Therefore not all mobile subscribers have been considered as the population of this study. Rather, only the educated and organizations were considered as the population of the study. B) Sampling Method: Multistage random sampling was used for the selection of the sample. Since two types of target market were considered, the sampling was done in two different phases. 1. Sampling of organizations 2. Sampling of mobile subscribers. C) Sampling Size: As the information will be used here for qualitative analysis and some judgmental decision so the samples are taken only for getting some information and also get some clear perception about some problem. D) Report Preview: The report is divided into four different parts. First part of the report is the organization part, which will give a general picture of the organization the second part is a brief note

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of marketing actions taken by different operators. The forth part will describe the recommendation part by carefully concerning the findings of the previous discussion. The third part is all about telemarket situation and some related factors affecting mobile market of Bangladesh. 6 .

Under these circumstances. Bangladesh Telephone & Telegraph Board (“BTTB”). Moreover. it was decided that BTTB should implement the Project and later on the assets out of this process would be taken over by the desired company to be formed for maintenance and operation. On the same day the Company obtained Certificate of Commencement of Business. mobile telephone was opened to private sector for more than a decade during which four mobile operators came up to serve the people in this sector.5 Lakh)’ at an estimated cost of Tk.2 BTTB to execute the Project In ECNEC it was decided to form a separate public limited company for implementation and operation of the Project.1 Background In Bangladesh.Chapter-2 2. the idea of establishing mobile telephone project (the “Project”) in the public sector was conceived. the quality of service being provided by them was not satisfactory and.000 being the only government sponsored mobile telephone company in the country. 7 . having longest experience of serving the telecom sector in Bangladesh. nor could they cover the whole geographical area of the country. 2004 as a public limited company under the Companies Act. 2. undertook initiatives to form the desired company in public sector.20. Title of the Project was ‘10 (Ten) Lakh T&T Mobile Telephone Project (1st Phase .000. 1994 with an authorized capital of Tk.2. their call charges were too high. 000.3 Incorporation of Teletalk Teletalk Bangladesh Limited (the “Company”) was incorporated on 26 December.0 ORGANIZATION OVERVIEW: 2.7. But they could not fulfill the public demand as anticipated.96 billion. above all. 2. In view of the fact that formation of a public limited company involves considerable time and various relevant formalities.

06 billion). GPRS (GSM Packet Radio System) facilities for 2.500 subscribers. BTTB executed supply..5. To ensure fair competition between public and private sectors and thereby to safeguard public interest. Ltd.2 Phase-Wise and Total Project Cost In order to ensure timely implementation of the Project. Geographically Package I covers greater Dhaka. 8 . Germany.000 GSM subscribers.40 billion). and subsequently upon application. China at a cost of US$35. Bogra and most of the North Bengal districts. in place of BTTB.17 million (Tk.5 The Project 2. To create a new source of revenue for the government. on turn-key basis. Initially the License was issued in the name of BTTB.2.4 Operating License The Company has obtained the Cellular Mobile Phone Operator License from Bangladesh Telecom Regulatory Commission (“BTRC”) on 1 September. Accordingly. Sylhet. 2.0-895.88 million (Tk. 2004 for a period of 15 years. with: • • Siemens AG. testing and commissioning agreements. Faridpur.2/935. and Huawei Technological Co. To meet a portion of unmitigated high demand of mobile telephone. at a cost of US$40. 2. Barisal and its peripheral area and Package II covers greater Chittagong. installation. BTRC has changed the name of the operator as Teletalk Bangladesh Ltd. competitiveness and mainly to avoid future dependence on any single supplier the entire Project has been divided into two Packages.2.5.5. Khulna.1 Basic Objectives For Which Your Company Was Formed Are Highlighted Here Under: • • • • To provide mobile telephone service to the people from the public sector.0-940.2.3 Major Scope Of The Project Is As Under: • • Mobile Switching System and Access Network for 250. The Company has to operate within the frequency 890.2 Megahartz of GSM band allocated by BTRC for GSM technology. 2.

26 December.2. They expect continuous network coverage all over the country. Teletalk got huge popularity as it triggered the true competition in the market. People have high expectation from Teletalk. I am happy that BTTB had been able to keep its promise and deliver in time. Teletalk has covered 61 districts. 120 upazillas and most part of the three major highways of the country.000 Table 1: Some major events of Teletalk 2. 2006 9 . The Prime Minister inaugurated the telephone line talking with the President Commercial launching of operation Number of subscribers reached at 100. from Teletalk. Teletalk has introduced many attractive packages and all of them have been welcomed by the market.000 Distribution of SIM cards outside Dhaka Participation in the Telecom Fair 2 Commencement of SMS operation Number of subscribers reached 400. However. From the very beginning of its launching. The government started the "Mobile Telephone Project" and Bangladesh Telegraph & Telephone Board (BTTB) was entrusted with the responsibility for implementing the same. It also fulfilled a cherished dream of people who continuously demanded to the government for such an enterprise. 2005 2 – 24 September. the public sector organization can achieve remarkable development if they get opportunity. The Project work started in June 2004 and the network was soft launched on 29 December 2004. prompt customer service. 2005 12 October. data services of high band-width etc.6 Some major events of Teletalk Formation of Teletalk Bangladesh Ltd. and more value added services. 2005 23 June. Teletalk must honor its customers by improving its services day-by-day so that people can realize that even in a competitive scenario. 2005 27 August. 2004 29 December. I am happy to know that within one year. 2005 23 December. was formed to operate the network installed by BTTB and it has been successful in operating a standard network and give proper service to the people of Bangladesh. there is still a long way to pass for improving its network. Teletalk Bangladesh Ltd. 2004 31 March.7 Launch of Teletalk: The long awaited launching of a mobile telecom network by a state-run enterprise had finally materialized on 31 March 2005.

versatility of connections having ISD.8 At the Beginning Stage of Teletalk: Teletalk Bangladesh ltd started its commercial operation on 31 March 2005 with skyscraping expectation. it's no more a luxury. The biggest weakness was a premature entrance in a mature market. is probably the biggest weakness from operational perspective of Teletalk. Healthy competition came into the mobile I market causing almost 50%." But "think-tanks" of Teletalk miserably failed to identify the difference of stepping into a developed market and 10 . As soon as anyone could catch hold of a Teletalk mobile. The slump in price made mobile phone affordable even for the low-income group of people. On the other hand it's being the part of government. Having the slightest of ideas of what problems can impound and compound starting a commercial operation with such a small coverage containing pockets all over the places. Another good reason for that craze was its flexibility in connectivity with the other operators. Probably it's the right times to asses the achievements it has made . Many of us used to say "Where is the harm in throwing a system on use with such a small number of BTSs if operator like Grameen could start its commercial operation with couple of BTSs around. The most remarkable success of Teletalk is the slump in Tariff Structure. if not more. Teletalk had its first setback. this period might seem to be small. It's the only SIM. which will be understandable as we go through this article. As soon as Teletalk announced its tariff the long-lasting oligopoly between other private mobile operators were shattered. Economy ISD service along with both incoming and outgoing connectivity with any of the land phones. reduction in price both in terms of SIM price and usage rate. Banglalink or Aktel.compare them with what it could have achieved and also to scrutinize the opportunities and threats which are looming over. Using a mobile phone soon became a necessity.2. People became crazy to get a Teletalk SIM. One long year has passed since Teletalk started its commercial operation. he started comparing it with the services of Grameen. Considering the time of operation of other existing operators in this field. but considering the first year of operation of an operator it's pretty significant a time. which has such a. At a time when people were desperately searching the way out to get rid of the oligopoly of a few operators. Teletalk started its operation with big bang of response. The strength of Teletalk was the confidence of the subscribers in the government institution.

287 PCO subscriber • Customer Care: There are eleven customer cares of TBL situated on Dhaka. • Changes Taken Place In The Market – – – Competition among the mobile phone operators has reduced subscription rates and call rates. A lot of people got involved in subscription selling business as a supplementary to their original line of business. Some others came into this business as a replacement for their original business. especially with GRAMEEN. Barisal. Rajshahi and Comilla. Sylhet. it became a nightmare for the Teletalk subscribers to use a Teletalk mobile.9 Present Status of Teletalk: Definitely there is no justification brooding on the past unless we utilize that experience in the further course of time. – Because of drastic reduction in call rates. profitability of PCOs has dropped. Mymenshing. 2. the progress of development of network was far below the expectation of subscribers. This contributed to the high growth rate in this sector.that into a developing market.000 subscriber of TELETALK. Chittagong. Let’s try to find out the present standing of Teletalk. Among them there are 850. Moreover. Migration of businesses: – High profitability has attracted many people to the distribution channel. Market competitiveness: 11 .000 prepaid and 2450 postpaid and 20. Khulna. mostly because of non-cooperation. Increase in number of players in the channel has reduced revenue for everyone. Uttara. This triggered a lot of changes in the market. and as a result. • Subscriber Base: At present there around 875. Faridpur. Above all the interfacing with other operators was so poor. There are now options in the hand of the customers at an affordable price. Bogra. some PCOs are migrating to subscription distribution business.

– New package offers by existing operators. • Industry Growth: Important Factors – Growth in mobile phone subscription business is affected by various factors: Entrance of new companies.– – Because of rise in number of mobile phone connections. A segment of the customer segment is always interested in buying new offers. music. between the age of approximately 15 and 30 12 . Reduction in tariff and subscription fee has encouraged these kinds of buyers. Age of visitors: Most of the visitors at the mobile phone shops are young. PCOs. electronic recharging. In some areas. there had been a surge in subscription selling business. value added services (ring-tones. revenue from recharging business has increased. because of increase in current subscribers and reduction in potential subscribers. growth in subscription business has declined. Many people are now involved in businesses of scratch cards. etc. as many of the potential customers have turned into current subscribers. Whenever new companies have entered the market. ● Consumer Profile – – At the point of purchase. These low price offers have also brought some periphery customers under mobile subscription – Penetration of mobile phone subscription. handsets. This has happened in case of entrance of Banglalink and that of Teletalk. Supporting businesses: – – A lot of supporting businesses have strung up to cope with the high demand created by extremely high growth rate in the market. sellers do get the opportunity to draw a picture of the consumer. This loss of revenue from subscription business was compensated in cases by profit from selling handsets. There are some areas where there has been a drop in subscription selling. New offers from existing operators have always created interest among the customers. handset repair. accessories. games. downloads).

158 thana and the main national highways and developed 11 full-fledged customer care centers. any service company must have its department compatible with this concept. The ratio between new users and current users vary from place to place.10 Departments of the Teletalk: As the service marketing concept must demand the process.– First time buyers:Of all the visitors at the shops. Teletalk dose not deny the concept. price. The current non-users of mobile phone who visit shops are mostly from the lower SEC and possess little knowledge about mobile phones 2. physical evidence along with products. most are found to be current owners of mobile phones. persons.11 TELETALK and its business analysis TELETALK is a newly emerged Govt. Grameen Phone (GP) and Banglalink for providing more superior services to 13 . promotion. Within a very short period of time. Over 200 outlets are being working to distribute SIMs and Scratch cards in the country. In most of the places. Some even buy more than one connections at a time. The rest (70-90%) are current owners of mobile phone. it has covered 61 dist. place. having the following department to achieve its objectives: • • • • • • • Human Resource Marketing Customer Service Billing And It Operations: Network Plnning System Engineering: Procurement Finance 2. TELETALK BANGLADESH LIMITED has gone into interconnection agreement with all four private cell phone service providers named Citycell (PBTL). HQ. mobile service operator in country’s cell phone service market with nation wide coverage.. around 10-30% visitors at mobile shops currently do not possess a mobile phone. AKTEL (TMIB). Of the current owners most are young and always looking for new offers.

Economy ISO service along with both incoming and outgoing connectivity with any of the land phones. As soon as anyone could catch hold of a Teletalk mobile. It's the only SIM. transparent financial transaction. Teletalk had its first setback. Many of us used to say "Where is the harm in throwing a system on use with such a small number of BTSs if operator like Grameen could start its commercial operation with couple of BTSs around. The strength of Teletalk was the confidence of the subscribers in the government institution. Recognizing its tremendous success (introducing web based lottery. 100% ISD and EISD facility. On the other hand it's being the part of government. born out of commitment. At a time when people were desperately searching the way out to get rid of the oligopoly of a few operators. fewer Packages.TELETALK’s consumers." But "think-tanks" of Teletalk 14 . professional excellence. The slump in price made mobile phone affordable even for the low-income group of people. j Teletalk started its operation with big bang of response. all Package has BTTB incoming and outgoing. TELETALK has been emerged a trend setter in mobile phone sector of Bangladesh. no incoming Charge. As soon as Teletalk announced its tariff the long-lasting oligopoly between other private mobile operators were shattered. Having the slightest of ideas of what problems can impound and compound starting a commercial operation with such a small coverage containing pockets all over the places. all transaction through Bank. It got unique position for its special features that other players are not offering right now. Using a mobile phone soon became a necessity. it's no more a luxury. People became frenzy to get a Teletalk SIM. such as. if not more. To make profit but not at the cost of customer. Banglalink or Aktel. no tricks: customer Confidence. he started comparing it with the services of Grameen. Healthy competition came into the mobile market causing almost 50%. versatility of connections having ISD. nationwide transmission backbone support. is probably the biggest weakness from operational perspective of Teletalk. which has such a. The most remarkable success of Teletalk is the slump in Tariff Structure. which will be understandable as we go through this article. The biggest weakness was a premature entrance in a mature market. self employed virtual dealership. Another good reason for that craze was its flexibility in connectivity with the other operators. reduction in price both in terms of SIM price and usage rate. fastest coverage progress and price-cut).

now-a-days. Moreover subscribers can select three numbers that provide them a reduce tariff round the clock. Above all the interfacing with other operators was so poor. mostly because of non-cooperation. • Post-paid package: Teletalk post-paid package designed for high user group. Rajshahi Division (86). the progress of development of network was far below the expectation of subscribers. it became a nightmare for the Teletalk subscribers to use a Teletalk mobile. the whole country is considered as a single zone. 2. • Rajanighandha post-paid: It has one (1) second pulse facility. In fact it has network coverage in 61 districts but the truth is that the weakest part of the TBL is its low network coverage. Peoples' hope was immediately dashed out and all the opportunities Teletalk had started with immediately began shrinking and squeezing. Moreover. Chittagong Division (77). 500 at least in a month. Sylhet Division (38). 2. At present.1 Product Profile: Different packages of Teletalk. Barisal Division (35) . no security deposit. has become most strategic strength for any operator and Teletalk has given the highest priority regarding the coverage. Dhaka Division (134). TBL has 668 BTS around the Bangladesh and the distribution is like in Dhaka City (177). which are three Teletalk numbers. Chittagong City (71). but bill must be Tk. no line rent. or two Teletalk numbers and one T & T number that offers a reduced tariff.12 Network Coverage: Network Coverage. Khulna Division (50).13.13 Marketing Mix: 2. Subscribers could pay their bill with cash card. also select three numbers for friend and family (F&F) option. • Standard Pre-paid package: 15 . especially with GRAMEEN.miserably failed to identify the difference of stepping into a developed market and that into a developing market.

This package also offers a reduced tariff for two Teletalk numbers or one Teletalk & one T&T round the clock (FnF). Scratch card validity is lifetime and other facilities are same to other pre-paid package. 2. Narayanganj. Padma Package 16 . • Padma pre-paid package: This package is designed for the subscribers who live in other places except Dhaka metropolitan area. Pre-paid (Standard) Package • • • • • Connection fee : 290.. Talk Time Free) Call Charge will be 20% more when used in Dhaka Metro. Narayangonj.It has no line rent.13.00 Tk. Gazipur. 190. Talk Time Free) 1st pulse for first 30 sec and 15 sec pulse onwards VAT will be added as usual Connection fee. Subscribers has to pay 100% extra charge if it is used in Dhaka metropolitan area and Gazipur. International Roaming: It has roaming facilities in 5 country also.2 Price: Pricing is one of the marketing mix tools that a company uses to achieve it marketing objectives. Its first pulse is 30 seconds and the following 15 seconds.00 Tk (100 Tk. Corporate Package: Teletalk has around 20 corporate clients using prepaid or postpaid service. Narayangonj. (50 Tk. Teletalk decides its service pricing on the basis of cost based pricing. The price of this package is cheaper than other packages. ISD and E-ISD: All teletalk SIMs are ISD and it has opportunity to call only 7. The fortunate matter is that within one month it is going to inaugurate roaming service in over 400 operators of 159 country. whole country is in single zone. Gazipur. That’s why they try to fix a reasonable price for the consumer. They always think about the consumer purchase capability.50/= to 55 countries by using 012 code called economy ISD.

00/min [Any time] 1 sec pulse Connection fee : 590. Security Deposit tk .Shapla Package (Post-paid) • • • • • • • • • • • • • • • Teletalk to other phone. The distribution channel for mobile phone subscription has changed somewhat over the last year or so.75 Tk or 2 Teletalk and 1 other operator 1. It has already appointed 62 dealers over the country. Apon 3 jon (FnF) facility (3 Teletalk Number 0.3 Place: Teletalk has a proper distribution team and channel. There is still a multitude of levels within the channel. 10% exempted.00 Tk.1000. This channel has shrunk vertically during the last year or so and created a shallower channel. Besides it is distributing its product by customer care and bank. tk . Post-paid Package 2. Vat applicable Connection fee : 990.) If monthly bill exceeds 2000 tk 5% exempted and if 4000 tk. tk.1.1.50 Tk. monthly line rent Payment facility in Cash Card Minimum charge 500 Tk. Connection : 990.1500. Rajanigandha Package (Post-paid) 17 .00 Tk 1 sec pulse No.13.30/min [any time] Teletalk to Teletalk. It is strugling very hard to make its product available countrywide.00 Tk Minimum Monthly Bill tk .

Each promotion tools has unique characteristics to improve their total sales. Teletalk Marketing promotion can be classified in several steps Advertisements in the national newspapers Examples of advertisements published in the national newspapers: Advertisements through billboards The billboards installed so far by Teletalk Bangladesh Limited is listed below : SL No 1 2 3 Location qty View Kachpur. U.Dhaka Facing Saidabad bridge 1 1 1 Unipol 18 .Company Customers Main Dealers (Area-based) Authorised Dealers SubAuthorised Dealers Area-based Authorised Dealers Wholesalers Wholesalers without Stores Retailers Fig 1: Distribution channel 2. Teletalk are trying to do more promotional activities for their service.4 Promotional Activities Of Teletalk Promotion: Promotion is one of the marketing tools that a company uses to achieve its marketing objectives.13.Dhaka Facing Op N.

near sea beach Patanga sea beach more Dewanhat moor. free gifts. Teletalk uses personal selling in different stages of marketing and distribution. Shirajgang 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 1 1 1 1 1 Unipol Unipol Unipol Unipol Unipol Unipol Unipol Bus Unipol Unipol Unipol Table 2: Advertisements through billboards Personal Selling: Personal presentation by the firm’s sales forces for the purpose of making sales and building customer relationship. SK Mujib Road Banani.4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Mohakhali Flyover (Both) Shahabagh GEC Circle (Ctg) Gabtoli Bus Stand-Savar face Chittagong Railway Station Dhanmondi Rassel Square Cox.s Bazar. Farmgate Sheraton Hotel Gulshan-1. discount and several types of occasional program. Company distributes their product (SIM. strong incentive of purchase. Sales promotion: Sales promotion includes a wide way of tools that can attract consumer’s attraction. Azampur Asulia road. Cash card) among the wholesalers and retailers by maintaining the excellent relationship. 19 . Airport Bus Branding Agrabad. Dhaka Khamarbari. Front of Community Center Malibagh Moor Mirpur-10 Hatikamrul Moor. Teletalk’s communicate with corporate client by its sales force building and keeping relationship with potential and existing valued customer. Moor Khilgaon Flyover Mohakhali. Scratch. Ctg Zatrabari Moor Uttara.

who is a patient of blood cancer. Road show: Teletalk organized a two days long road show. wholesalers and retailers. people. Go to SMS option.where regular offer is 290TK. Public relation can also influence a product sales or brand awareness. the process is : 1. places. Teletalk arrange conference every year among the dealers. here is some examples of Teletalk promotion that can be highlighted : Medical treatment for Bushra: Teletalk initiated a helping program for Bushra . To SMS for her. She is a 3 years old girl suffering from blood cancer. She needs bone marrow transplantation. They always try to influence and convince them for creating a market demand and sale their product. organizations and even nations. Sent to 666. General people can also come to the Teletalk office for their quaries and for expressing their concern about any telecom related factors. One can send SMS for Bushra to help raise fund for medical treatment.Teletalk sales promotion includes credit sales. Teletalk arrange meeting always with the wholesalers and retailer for maintaining a good relationship with them. There was slogan on handbag for raising awareness for reading book. commission etc. ideas.Following address is the public relation office of Teletalk: Social Committment: 20 . 2. Write Bushra 3. Here subscribers got the opportunity to buy SIM of different pre-paid package at 90TK. Public Relation: Public relation is used to promote products. Handbag Distribution: At Bangla academy “Ekusay Boi Mela” Teletalk distributed handbag in visitors who bought book from fair. activities.

GPRS: 2. To get this service instead of access code 00 dial 012. then area code and then desired number. 1. Cricket Update: 3. You will be able to get the Sehri and Iftar's time during the Ramadan. Weather. Cricket. Teletalk Own VAS Offerings: 1. Teletalk offers scores of important cricket match through push-pull service. 4. Pray time with the push-pull service. ORCA (Old Rajshahi cadet association) had organized a blood donation program which was sponsored by TeleTalk. Horoscope. 2.00 only Both Bengali & English language can be used.50 Tk per minute. 21 . Cash card electronic charging: 5. Jokes. Friends and family Number. Post-paid bill query. SMS A SMS of 160 characters charge Tk. Teletalk has sponsored and directly participated in various voluntary Blood Donation Programs around the country. In this way subscriber has to pay 7. In Bangladesh every year in cold prone area people died in cold related disease due to their disability to buy warm cloths. then country code. medical treatment sponcer for Bushra: 6.14 Service offered: Services Teletalk ISO facilities: Every subscriber of Teletalk gets the opportunity of economy ISO or EISD in 25 countries. one can get answer to the question he requires. Quotes. Teletalk Push-Pull Service It is like SMS. To know the score type eric and the first three letter of the participated country and then send to 222 number.Blood Donation program: One of prominent social contribution of Teletalk is in the field of Voluntary blood donation. Blanket distribution Program: In Ranjpur district TeleTalk distributed 500 blankets in distressed people by Anjuman Mofidul Islam.

Singapore. New York. Sylhet. Tokyo. To Migrate your Pre-paid standard Connection to Teletalk PADMA. Some Other Value Added Service Of Teletalk: Jokes joke<space><joke number> Joke Number: 001 . Calcutta. leo. cht. khl. cap. New York. Chittagong. Sylhet. Beijing. vir. black Signs: ari. London. brs Taxi Type: yellow. Delhi. London. Beijing. Bangkok. Tokyo. amb Taxi taxi<space><division> <space><taxi type> Example: taxi dhk yellow hor<space><sign> Example: hor ari qot<space><quote type><space><quote number> Example: qot love 023 Horoscope Quotes Emergency emrg<space><division> <space><ph num type> Example: emrg dhk pol International fc<space><city name> Weather Example: fc new york Forecasting City Name: Dhaka. Karachi Division: dhk. Calcutta. aqu. Singapore.043 Division: dhk.038 Example: joke 020 Weather wt<space><city name> Example: wt dhaka City Name: Dhaka. lib. Bogra. Karachi Cricket cric<space><first 3 alphabet of cricketing country> Example for Bangladesh : cric ban Table 3: Value Added Service Of Teletalk 22 . jes. sag.038 Birth Quote Number: 001 . Bangkok. cht. syl. Chittagong. jes. raj.7. can. raj. Delhi. Barisal. pis Love Quote Number: 001 . Bogra. Paris. sco. gem. brs Ph Number Type: pol. Melbourne. fire. tau. Melbourne. syl. khl. Moscow. Moscow.095 Fun Quote Number: 001 . Paris. Barisal.076 Friend Quote Number: 001 . Sydney. Sydney.

Moreover its contribution to our economy can be notable. 2. Lack of potential and efficient employee. Poor marketing 1. 7. Subscriber inclination to Teletalk as a government owned organization 3. Weak management system 9. 4. From the very beginning it is providing free TNT incoming. 2. Failed to identify difference between developed market and developing market. Lower number of human resource. 6. Expand the market in the rural area.2. High connection charge. 7. Teletalk can use the experience of BTTB. The progress of development of network is far below from the subscriber expectation. Teletalk is the only indigenous company using GSM service. 2. Opportunities Threats weakness 1. 5. WARID TELECOM a concern of Dhabi group and present market rivals. 6.Teletalk can use soft switch network. 8. Teletalk’s all connections are ISD & EISD. Lower promotional activities. Another invisible threat is land phone operator. 5. Table 4: SWOT of Teletalk 23 . Premature entrance in a mature market. 4. Teletalk can use the image of local 1.15 SWOT Analysis of Teletalk Bangladesh Ltd: Strength 1. 3. 2. Low cost provider regarding its competitor. An upcoming mobile service provider named and government owned organization. 3. It has also provided incoming facility up to 2015. Introduction of new technology and services. The invention of technology which is new modern and consumer oriented. 5. 3. 4.

It’s the only SIM which has such a versatility of connections having ISD.1 Analysis Of Strengths:  Subscriber inclination to Teletalk as a government owned organization: People have a deep inclination towards Teletalk Because subscribers have more confidence in the government institution.15. It gives a tremendous competitive advantage to the teletalk Bangladesh ltd over its respective competitors.15. owned company teletalk have a strong contribution in our national economy.2 Analysis of Weaknesses 24 . Whether other operators providers providing such kind of facility just now. So teletalk can take this advantage over its competitors. This is not seen to other providers. Its one of the high profit generating Govt. Healthy competition came into the mobile market. Economy ISD service along with both incoming and outgoing connectivity with any of the land phones.2. The other local organization named pacific telecom is providing CDMA technology which is more expensive.  It has also provided incoming facility up to 2015: Teletalk have a strong strength over its competitors incase of incoming facility.  Teletalk’s all connections are ISD & EISD: It’s a big strength of teletalk. They think that they might get some extra benefit from teletalk like lower call rate. 2. Teletalks present incoming duration is up to 20015.  Moreover its contribution to our economy can be notable: As a Govt.  Teletalk is the only indigenous company using GSM service: Teletalk is the only local organization which is providing GSM technology in this country. rather than other providers.  Low cost provider: The most remarkable success of Teletalk is the slump in tariff structure. organization in Bangladesh. It is the lowest cost provider in Bangladesh telecommunication market. As soon as teletalk announced its tariff the long lasting oligopoly between other private mobile providers were shattered. optical fiber facilities etc. Which is 20 times more than other competitors?  From the very beginning it is providing free TNT incoming: Teletalk is the only provider which is providing T&T incoming free from the very beginning.

As soon as anyone could catch hold of a Teletalk mobile.  Lower number of value added service: Teletalk Bangladesh Ltd. Where as Teletalk providing less number of value added service. As a result the service quality and customer satisfaction go down. There strategy making is not match with the current situation.  Failed to identify difference between developed market and developing market: Teletalk failed to identify the difference between developed market and developing market. are available at 3 to 4 times less price than that of teletalk.  Lower promotional activities: The promotional campaign of teletalk is not too much strong like other providers of Bangladesh as result consumers are less aware about teletalk and its package.15. People thought that teletalk should use the BTTB’s network facilities.  Lower number of human resource: The number of employee of teletalk is too much lower regarding its requirement. as a result teletalk can cover the most of the area of Bangladesh. The comparison of value added services of different operators are mention below. Banglalink or Aktel. But in reality this is not true. is providing a less number of value added service to its subscriber regarding its competitors.  Weak management system: poor coordination among different functional department of Teletalk as result service efficiency goes down.3 Analysis of Opportunities 25 .  The progress of development of network is far below from the subscriber expectation: the expansion of network coverage is too much slow. As a result subscribers are becoming dissatisfied on the Teletalk service. Premature entrance in mature market:The biggest weakness was a premature entrance in a mature market.  High connection charge: The SIM price of teletalk is too many high packages from the other operators. he started comparing it with the services of Grameen. It is totally unjustifiable to charge subscriber such an astounding price for having a SIM of a network which doesn’t have satisfactory level of coverage. having similar facilities offered by teletalk.  Poor marketing: The overall marketing activities of Teletalk is not much rich like other competitors. 2.

They know about the consumer’s need and want. So teletalk can take help from the BTTB about this matter and implement those criteria in the competitive market. from the perspective of long term sustainable development. So teletalk can bring that respective area under coverage and catch those potential consumers. Now a day’s people are ready to accept the new thing.4 Analysis of Threats  An upcoming mobile service provider named WARID TELECOM a concern of Dhabi group: At present Bangladeshi mobile sector is almost saturated . Because people have inclination to new and modern technology. So teletalk can use this technology and practice competitive advantage over rivals.  Teletalk can use softswitch network: The softswitch network separates the bearer and control layers and a softswitchcentric network can be built on different types of bearer networks such as TDM.  Teletalk can use the experience of BTTB: BTTB one of the old and experience organization in Bangladesh telecommunication sector. IP and ATM unlike.  Introduction of new technology and services: Teletalk can implement new and consumer oriented technology in this sector. People want to keep the money into own country.  Expand the market in the rural area: Till now there is huge area is remain out of coverage where a huge number of target consumers are available.14. legacy network that depend on a single specific switching technology. after that a new company named WARID is going to starts its operation in Bangladesh which going to become a big threats to teletalk and other operators. Teletalk can use the image of local and government owned organization: General people have a deep inclination to the govt. So teletalk can use such kind of soft corner of consumers and promote the service to them. owned organization especially to the local organization. the IP centered softswitch network defines the future. Based on strategic planning and the developmental phase. They have special experience about the consumer behavior of Bangladesh. 2. Which things. an operator can select suitable bearer mode technologies for different phases. It changes the consumer’s demand pattern by 26 . give teletalk competitive advantage over its respective competitors.  The invention of technology which is new modern and consumer oriented: Technology is changing with day run.

TELETALK BANGLADESH LIMITED believes in service. FDI inflow in Bangladesh is enormous. This gain in productivity is development. So it is expected in the long run. Thus development and business go together. Telephone helps people work together. 27 . In service sector. As a result consumer shifts from one technology to other technology.offering different attractive features. All the categories of subscribers. People are switch from mobile to land phone operators. TELETALK has to face an immense competition. in our initial offerings. This is the great achievement of TELETALK Bangladesh Limited. When the subscriber received their SIM kits. raising their productivity.16 Conclusion: Teletalk Is A Trend Setter In Bangladesh TELETALK Bangladesh Limited is the first government owned private cellular operator in Bangladesh. Which is very satisfactory of SIM collection rate. As a result ultimately the number of mobile user is decreasing and create problem to the mobile operators as well as teletalk. In the long run TELETALK can able to face the market competition successfully if it can meet the strategic marketing approaches in all levels of policy decisions and applications. Telecom sector is become the core of interest in FDI in Bangladesh. which in turn enables them to afford a telephone service. The main goal of TELETALK BANGLADESH LIMITED is to deliver SIM kits to the subscriber at a cheap rate and make a competitive market . 2. had collected their SIM kits through banks.  Another invisible threat is land phone operator: In Bangladesh land phone operator is expand the market with day run. As well as we are also forecasting the market culture might change if the profit margin reduce at current ratio. which might create a big problem to teletalk and others. the innocent smile of them shows recessive support to TELETALK. TELETALK BANGLADESH LIMITED has a goal to receive an economic return on its investments and to contribute to the economic development of Bangladesh where telecommunications can play a critical role. generating a good business. a service that leads to good business and good development.

2 Company Vision: "We are here to help" 3. 1997. 1996.5 Marketing Mix of Grameenphone: 3. which owns 28% of the shares of Grameenphone.5.3 Company Mission: The vision will be achieved by • • • • • Connecting Bangladesh with ease and care Being user-friendly Providing value for money Providing simple and timely connections Having a right and understandable process 3.1 Historical Background: Grameenphone was offered a cellular license in Bangladesh by the Ministry of Posts and Telecommunications on November 28. Good Development" 3. Grameen Telecom. Grameenphone and its mission to provide affordable telephony to the entire population of Bangladesh. The Company launched its service on March 26. in-depth experience in both telecommunications and development. 3.1 Products The products of Grameenphone can be classified as: 28 .Chapter-3 3 MARKETING PRACTICE OF OTHER OPERATORS AND SWOT GRAMEEN PHONE: 3. is a not-for-profit company and works in close collaboration with Grameen Bank.4 Company Objectives: "Good Business. The shareholders of Grameenphone contribute their unique. Currently Telenor holds 62% share & Grameen Telecom holds 38% share.

Grameenphone provides voice services. mobile high-speed data access. Comprising of modern mobile telecommunications services for any business needs. What Grameenphone offers is a suite of specialized products and services covering all communication needs for professionals. Grameenphone provides customer oriented and customized telecommunications solutions through a highly consultative approach. including mobile e-mail. giving you the freedom to work from anywhere you want to. As the largest and most customer centric telecommunication service provider in the country. internet access. messaging services and mobile data and internet services. especially designed for the business entities of Bangladesh. mobile fax and more. Djuice Djuice is a mobile subscription for young people who use the mobile phone for communication and entertainment. Grameenphone also provides a complete Mobile Office solution. small. medium-sized enterprises to large companies. which 29 .      Post Paid Post Paid Pre-Paid DJUICE Business Solutions Public Phone International Roaming Under Post Paid Service there are 3 products: a) Xplore-1 b) Xplore-2 c) Public phone Pre-Paid Under Pre-Paid Service there are 2 products: a) Smile (With PSTN Connectivity) b) Smile (M2M) Business Solutions Business Solutions is a high quality and fully integrated telecommunications service from Grameenphone. It is a registered trademark owned by Telenor.

Ukraine and Hungary. GPCC(Grammennphone customecare centre).3 Promotional Activities Of Grameenphone: Thankyou Bonus: GP's thankyou program provides with a number of rewards that will make your mobile phone experience with us even more satisfying. It has almost thousands of outlets.5. For the first time in Bangladesh in July 2006. GrameenPhone launched Roaming Services (both GSM and EDGE/GPRS) with CAMEL Phase II for Pre paid In-bound subscribers. GrameenPhone has 315 GSM partner operators in 115 countries in 6 continents and 44 EDGE/GPRS partner operators in 16 countries. who are continuously providing products of grameen phone.5.is a leading provider of mobile voice and value added services in the Scandinavian region.2 Places/Distribution: Gramenephone makes its products highly available allover the country. GPDC(Grammennphone distribution centre). DJUICE is currently operating in Norway. there are shopping surprises with every SMS. whereits networks facility have been established. Currently they are distributing its product via Dealers. 3. As of Sep 2006. International Roaming In March 1999. • Discount through SMS With thankyou SMS Discounts. Other Promotions: 30 . GrameenPhone has unique ‘One to One’ relationship with all its International Roaming partner operators. GrameenPhone introduced this premium service for the first time in Bangladesh and now provides International Roaming service to its own subscribers traveling abroad as well as to foreign operators’ subscribers traveling in Bangladesh. • Discount on Voice Calls For pre-paid Subscribers GP gives quarterly Bonus Amount and for post-paid Subscribers. thankyou crown thankyou crown membership offers you special personal service and care with cheaper cost and alos gives Exclusive Discounts with thankyou crown membership at various exclusive local and International thankyou crown partners. Central Eastern Europe and South East Asia and embraces operation in 12 countries. 3. it gives Monthly Discount Rate on voice call. francises. Sweden.

5. They considering every thing like the economic condition of the country. product quality etc.4 Price: As strategically grameenphone is so much strong than any other operator's operating in the market. competitors offering. This is why probably their pricing is 31 . inter operator charge. the customer demand. they are very conscious about their pricing policy.• • • • GP’s Nababarsha promotions Mother's Day thankyou vaccination discount Grameenphone Services & Competition for Bangladesh-India Cricket Series! MMS Competition Fig 2: Ad of GP 3.

.. See more about pricing and tariff of different packages in appendix..... 32 .. My time...... regional office. 3. CUSTOMER CARE etc. My easy...not as customer expectations or the lowest.. My choice activation. Process and Physical Evidence: GP has superb quality HR department along with MARKETING..6 Services from Grameenphone Center • • • • • • • • • • • • • • • • • • • • • • • • • • • • Postpaid SIM replacement Postpaid reconnection Postpaid Migration Ownership transfer International Roaming Billing Address change Itemized Bill Complain & query handling F&F configuration Bar / unbar Temporary disconnection Permanent disconnection Bill / usage / payment information Welcome tunes configuration Wrong account posting Technical problem New activation Account inclusion and separation Product information Death case Duplicate paper Signatory change Refund Adjustment SIM check VSMS Zone change Zone restriction • • • • • • • • • • • • • • • • • • • • • • • • • • • Password unblock Prepaid SIM replacement Pre reconnection Prepaid Migration F & F .5.5 Persons. change and deactivation (need basis) Balance transfer related problem Expunge card Expired card Thank you bonus Complain & query handling Itemized bill Bar / unbar Welcome tunes configuration Edge configuration Dual claim Technical problem New activation.. GPDC etc. They are also infrastructurally strong as they have divisional office. FINANCE. SYSTEM ENGINEERING. BRANDING.. GPCC.. BILLING. COMMUNICATION. OPERATION... consisted of excellent professionals. 3.. IT. and a superb driving professional governing body. Product Information Refund Signatory change (for company phone only) VSMS Voice mail Cell-email Faulty SIM Replacement (both pre and post paid) FOC Password unblock Edge related services.

the basic strategy of cell-to-cell coverage is applied throughout 33 . All you need is to have a GP mobile phone to get these services. By serving the general public as opposed to niche markets. cell after cell. In short. At the same time.7 Value Added Services: You will be able to use all these services whenever you need them.8 Strategy of Grameenphone: Grameenphone’s basic strategy is the coverage of both urban and rural areas. The Company has devised its strategies so that it earns healthy returns for its shareholders and at the same time. contributes to genuine development of the country. Serving the mass market is one of GP's primary goals. service to the general public means connectivity to a wider population and general economic development of the country. In contrast to the "island" strategy followed by some companies.3. it pursues a dual strategy of good business and good development. • • • • • • • • • • • Messaging Services Information Alerts Data Transfer Fax Entertainment Services Browsing the Internet Send and receive e-mails Download Contents Customize Your Handset Participate in Competitions Vote your Opinions 3. Grameenphone builds continuous coverage. While the intensity of coverage may vary from area to area depending on market conditions. the Company plans to achieve economies of scale and healthy profits. wherever you are. which involves connecting isolated islands of urban coverage through transmission links.

International shareholders bring technological and business expertise while local shareholder provides a presence throughout Bangladesh and a deep understanding of its economy.9 SWOT Analysis Company Strengths and Resource Capabilities: • The shareholders of GP contribute their unique. • GP is the leading provider of telecom services all over Bangladesh. it is the largest in South Asia and 5th largest in the world. • • Access to the widest rural distribution network through Grameen Bank Grameen Bank has over 800 field offices in all over Bangladesh. • • • • • Availability of fiber optic Backbone Network Wide Network coverage in 61 districts. In addition.(92%) Highest number of subscribers (as of February 2007:13. All are dedicated to Bangladesh and its struggle for economic progress and have a serious commitment to GP. GP has positioned itself to capitalize on the declining prices of handsets.Grameenphone’s network. 3. in depth experience in both telecommunications and development from four corners of the globe. Grameenphone was also the first to launch the pre-paid service. which allows GP to establish towers and base stations in those places at free cost thus becoming a source of competitive edge. New products have been introduced and GP is the pioneer in launching the mobile-tomobile service.which is the most popular and best selling product of GP • International Roaming Facilities 34 .5 million) 2800 (2007) base stations operating around the country 450 distributors point of sale. making its goal to serve the general public realistic. 5 information centers. 500 outlet agents and 3000 nonexclusive outlet all over the country • • Product development plan is excellent.

• • different types of value-added services like WAP. • Therefore there is an additional desire to own a mobile phone for safety and security purpose Grameenphone has won worldwide acclaim and appreciation for its Village Phone Program through which it can intensify its operations as socially responsible company and enhance its image further • International advertisements on mobile communication in the mass media have generated more interest and awareness. SMS. • • • • • • • • Financial Soundness Skilled Human Resource Poor services due to network jam/ over load Inside-out thinking in the company Dealer management is not up to standard Complicated Price/Billing Picture Poor Ethical Standard Network limitations .Call drop. so people are more interested to own a mobile phone • • GP has the opportunity to use the optical fiber for expanding their coverage Sub-leasing transmission capacity from its optical fiber network to other mobile operators and as well as to other organization for earning future revenues 35 . and poor connectivity with BTTB result in bad image of the company. congestion. VMS and News update Market awareness . Company Weaknesses and Resource Deficiencies: Potential Company Opportunities: • • A total of 100 roaming agreements with numerous operators have been signed Constant deteriorating law and order situation is a threat to any kind of business activities in the country and thus mobile phone can help the people to relieve each others anxiety.GP has wide distribution network and good knowledge of this and therefore serves the market demand accordingly.

EDGE. Future privatization of fixed network New international gateway Alliances or joint ventures that expand the capability. For Businessmen GP has Business Solution packages where GP gives total communication solution. Their sales team hasn't the capacity to fight with GP in market. The data transfer market will probably play a significant role in revenue generation in future years. Potential External Threats: • • Other existing cellular operators (CityCell. • Adverse Shifts in Foreign Exchange rates: Devaluation is a regular phenomenon and this might continue in coming days which could affect the mobile companies since the main part of investment comes from abroad • • Deterioration of law and order. They using price as a weapon to fight with GP. an internet services which is ten times faster than the Broadband services available in the mass market in cheaper price.• Increased efficiency resulting from the introduction of new technology and automation may be viewed as an opportunity by introducing new and innovative products like SMS. AKTEL. Sheba) and their strategic moves Likely entry of potent new competitors (a) private company is planning to introduce Personal Handyphone System (PHS) cordless telephones in a profit-sharing partnership with BTTB. market coverage and competitive 36 . VMS. BL aggressively reduces the prices in all products. political instability that can affect the growth of expansion and service Banglalink continuously developing threats in market. (b) Word Tel is another company that is planning to join the cell phone e industry in Bangladesh provided the government gives it the permission to do so. WAP which could position GP as a technologically advance service provider • • • • • • • Declining prices for handset GP developed Customized offering for different segments.

has really growing fast in the past few years. aided by higher subscriber volumes.5 % of revenue but now govt. from the last decade there are signs that Bangladesh Govt. lower tariffs and falling handset prices. Malaysia etc.• AKTEL continuously loosing their market shares that's why they became aggressive and develop different product with cheaper tariff. Growth in Bangladesh’s mobile telephone sector. However. Now Bangladesh is a market for almost 20 million mobile phones. Pacific Bangladesh Telecom Limited (CityCell) has consistently set the benchmark of the telecom industry in Bangladesh. Previously telecommunications has not been on the Bangladesh government’s priority and available resources were not directed to basic infrastructure requirements for wireless technology. are in the planning to increasingly motivated to support telecommunications as they view this as a necessity rather than a luxury for economic growth and as well as potential job opportunities. formed a committee to collect more revenue from the telecom operator. And the result is to increase mobile penetration 9 to 18 in the current year than the previous year.0 Mobile Market in Bangladesh: There is tremendous potential for Wireless Internet in Bangladesh despite of Bangladesh Telephony infrastructure is relatively poor compare to any other developing countries like India. At present GP provides 5. Chapter-4 4. And finally cannibalizing develops among the AKTEL products. wants 15% of revenue. from a humble beginning in the early-1990s. They first launch mobile phone in the Sub-continent and first private wireless network in Bangladesh. first to adopt CDMA technology in the sub37 . • • • • More influence of competitor/s on the fixed network Growing bargaining power of customers Non-availability of funds Recently Bangladesh Govt.

and Orascom Ltd. friends or business associates.01 cents. All these are joint-venture companies between Bangladeshi companies and foreign partners except Orascom Ltd. in a country with the lowest number of phones in South Asia. thanks to Dr. a non-profit charity set up in 1997. Wi-fi is not the only wireless networking technology. At present 32. The women. paying for calls by the minute.000 village phones are in 52 districts. now make $500 per month. licenses for cellular mobile telephone were issued to GrameenPhone Ltd. and in particular wifi. The mobile has literally changed many village phone ladies life. 2001 and Short Message Service (SMS). GrameenPhone Ltd. The Grameen scheme has been hailed as a successful example of introducing technology to the poor. After this event. there is no more traveling to the city to make phone calls. while lowest per minute tariff is about . about the same amount as earned by the typical CEO of a Bangladeshi bank a far cry from the annual average income of US$380. Packet radio. Yunis. GrameenPhone Ltd ladies provide villagers with a vital link to services such as hospitals and to relatives both at home and abroad.500 square kilometers areas. as a relatively low-cost way of getting fast network access to rural areas and lessdeveloped country like Bangladesh. as they are known. Since the inception of mobile phone in Bangladesh early 1990s when it used to cost $1500 to get a mobile connection and the rate went down to $100 now. As for the villagers. But wi-fi is the latest thing and a growing number of companies and market analysts have started using it as the next big thing. microwave links and even 3G phone networks could all do a similar job. Recently lot of attention is focused on the use of wireless networks. The Learn Foundation has already built seven radio towers in seven villages in Bangladesh and the target is to establish a broadband network in a 2. Telecom Malaysia International BD Ltd.' who gained social importance-not to mention income-from selling wireless service to fellow villagers. the focus for a next generation internet-style boom. Thus emerged Bangladesh's 'telephone ladies.continent. in November 1996. Learn Foundation Bangladesh. 50. Villagers flock to Village phone ladies to use a mobile to call relatives. It has worked to bring computers and the Internet to isolated rural areas of Bangladesh.000 Bangladeshi women making a living as GrameenPhone ladies. 38 . launches Wireless Application Protocol (WAP) service on July1st. whom power their phones with solar panels. using wireless technology.

He also said there will be around two billion mobile phone users worldwide by the end of 2008. good example is Village Phone and Farmers. In the early 1990s. the service provider of Aktel phone. when Iqbal Quadir founder of Grameen Phone was looking for investors to back his idea for a mobile-phone network in Bangladesh. and that around 80 percent of the growth will take made $27 million in pretax 39 . There is still tremendous potential considering the fact that less than five percent of the total population of 140 million uses cell phones. Rural areas are greatly benefiting from Mobile phone in Bangladesh. Olsson said. Ericsson has more than 70 percent market share in Bangladesh. It has been seems that Mr.The Daily Star news April 13. profit.There are few local companies engaged in hardware/software development for wireless devices and networks. a nonprofit in Norwalk. GP turned that profit after just five years far sooner than many First World start-ups. Recently few universities took initiative where courses in wireless media being taught.when GrameenPhone Ltd. as its new MD for Bangladesh. he said an executive at a cell-phone company in New York who told him.." says Peter Reiling. As Bangladesh Telephony infrastructure is relatively poor. Conn. Again Ericsson's South East Asia President Mats H Olsson was speaking at a press briefing organized to announce the appointment of Rafiah Ibrahim. the company supplies GSM (Global Systems for Mobile Communications) gears to GrameenPhone Ltd and Telecom Malaysia International Bangladesh. As a result it is easily observed that Bangladesh is a potential market for 13 million mobile phones. said a senior official of a leading telecom equipment vendor in Dhaka . “We’re not the Red Cross”. Iqbal Quadir try to found the perfect technology that's within their reach. 2005. At the end of 2001 Quadir showed how Third World ventures can be profitable and provide a useful service . The number of cell phone users in Bangladesh still remains below five percent despite 85 percent annual growth of the industry over the last three years. adding that the number of mobile phone subscribers is expected to reach around six to eight million by 2006. president and CEO of Techno-Serve. Currently. a Malaysian. mobile phone is creating huge impact especially among poor people in the village. "We keep coming down to this basic challenge of the purchasing power of the poor.

Hence. said one of the key responsibilities of her company is to ensure that customers in Bangladesh get maximum benefit from its global leadership. The Bangladeshi telecommunication industry has been now facing global competition as different multinational telecommunication companies have been trying to penetrating into this market. To retain market-share. like network coverage quality services. So GP has to be more competitive to keep its competitive advantages. Rafiah. 40 . she said this is a unique offering for new high-growth areas. 4.1 Privatization & Regulatory Structure of Telecommunication Services: The Telecom sector of the country has been liberalized for private investment. Private operators were also given license to install and operate digital exchanges in rural areas and they would install telephone exchanges in phases. who has 24 years of experience in the telecom industry.place in the emerging markets. the existing phone companies have been loosing their competitiveness and market-shares. and focusing on Ericsson Expander solutions. 4. Bangladesh T&T Board provides all types of telecommunication services in urban and rural areas while the mobile. existing local companies have been pursuing to fulfill the need gap of phone services in different regions of Bangladesh. paging and radio trunking services are offered by private operators. Table-1 shows the list of the private operators. From the above-mentioned Daily newspaper the researcher has observed that Bangladesh still is an emergent market for telecommunication business and it is quickly developed. subscribers believes on GP as a sword to stay one step ahead from other competitors.1.1 Tele Situation in Bangladesh Tele density of Bangladesh is still the lowest in South Asia.

mobile growth rate was too high which was 178% in 1998 and now it is come into 100% in 2006 that means industry is now going to its maturity stage. At present. From the comparison of different operators’ subscriber base.02%). In 1997 there were approximately 23.805 million (summation of all GSM operator’s SIM & CDMA operators subscriber)Bangladesh has four private companies and TeleTalk a sister concern of BTTB has entered in the market with a target to get 0. the number of mobile users in the country is approximately 27. (TBL) Warid Telecom Table 6 .25 million subscribers by first 6 months of launch and 1 million by 2006.000 mobile subscribers around the country with a low market penetration rate (. (Recently acquired by Orascom) Telecom Malaysia International (BD) Ltd. (TMIB) Grameen Phone (GP) Orascom Telecommunication Teletalk Bangladesh Ltd. Limited (PBTL) Bangladesh Telecom (Pvt) Limited (BTL) Bangladesh Rural Telecom Authority (BRTA) Seba Telecom (Pvt. The total telecom growth has increased to 55% in 2004 from 19% in 1998. Initially. TeleTalk has offered lower rate with PSTN connection all over the country.) Ltd.SL 1 2 3 4 5 6 7 8 9 Name of the Operators Pacific Bangladesh Telecom.2 Market Growth: At the initial stage of the mobile telecom industry because of high startup cost and high tariff there was only a few numbers of subscribers.Private Telecom Operators in Bangladesh 4. it can be M 41 . The total number of districts covered in mobile industry has been increased to 61 in 2004 from 1 n 1997.1.

05% 2 178% 0.Fig 6: Comparison of subscriber number of mobile operator.000 96.000 150. field work from March 12 to June 12.000 - 2424.200 19.000 60. subscriber faster than citycell which .310 160.000 100.000 BanglaLink 3.000 - 191.87% 49 65% 2003 1.000 27. 2007) 1998 Market Penetration Districts Covered Mobile Growth rate Telecom Growth 0.13% 61 67% 2005 3.500 34.21% 36 121% 2001 0.000 - 6159111 3500000 2800000 1000000 60000 - 1330000 0 2000000 6000000 5800000 705000 - 42 .200 28.371 100.000 26.10% 26 96% 1999 2000 0.61% 61 120% 65% 2006 3.000 - 471.53% 40 149% 2002 0.72 61 100% 85% 19% 17% 34% 66% 42% 40% 55% Rate Subscribers base Grameen 30.690 33.000 TeleTalk Warid - 60. Report of Grameen phone on “Customer Management Division” in the year 2005 and primary source.88% 59 116% 2004 3. (secondary Sources.000 - 775.000 Phone Citycell 19.000 AkTel 12.177 370.000 2250000 300.000 1000.000 70.500 11.000 - 1878.

72% .48%.00000 AkTel 60. Market Share of Mobile Operators 0% 3% 7% 21% 47% 22% 43 .33. The rate was increasing slowly from 1997 to 1999.Table 8: Development of the Telecom Market 1998-2006 The penetration rate of mobile phone industry in Bangladesh is increasing rapidly.1. The telecom market intends to grow at penetration rate of more than 3. where GP has already penetrated at 2. 21%to Banglalink and the rest of 3% to TeleTalk as of may. 3% to CityCell. Among them. After that.3 Market Share of Operators: The mobile phone market consists of six operators. BanglaLink 58. the rate was increasing faster and now till march” 07 the penetration rate is 3. 61% share of the market belongs to GP. CityCell 200000. Out of which. 07.00000. GP holds 1. 4. GP holding the major share maintains a ‘market leader’ strategy to all other players in the market.00000 and TeleTalk 705000. Subscriber Base of Mobile Operators: The mobile market consists of six mobile operators. 22% to AkTel.12%.

Most of the subscribers themselves of avail mobile 10 40 28 86 71 44 Ev used er GP A ktel Current using ly C ityC ell .Fig 8: Market shareof mobile phoneoperators 4. Bangla Link has got very low top of mind (TOM) 18 3 1 GP Top of Mind Akt el Cityc ell Banglal ink Telet alk Other spontaneous Fig 09: Brand Awareness.1. 4.Mobile (In %) awareness. the total awareness is high for all the mobile operators except Teletalk.5 Brand Usership: Usership of Grameen 4 6 Fig 10 : Brand User.2 (78%).only 1%.Mobile (In %) 3 3 5 Phone is much higher than that of other mobile operators among all the mobile users.1. Aktel position immediate after this. But.4 Awareness about Mobile Operators: Top of mind (TOM) awareness of Grameen was found to be the highest (18%) among is users 78 22 Brand Awareness-Mobile (In %) 81 93 8 3 1 4 0.

‘No hassle of bill payment’ has been found to be the most mentioned reason by the pre-paid mobile users (84%). and 88% for Grameen Phone. The study has found that 100% of the Bangla Link subscribers use pre-paid connections. 4. ‘Availability of cards everywhere’ has been found the next mentioned reason by the prepaid mobile users (12%). Overall No hassle in bill payment Flexibility in recharge Availability of cards everywhere Easy to see my balance Low expense No monthly rent I can talk through wireless phone Availability of low value cards I can talk during ‘my time’ 84 36 25 11 11 10 5 3 2 NE 90 20 17 12 9 7 5 2 5 NW 76 32 8 4 21 4 7 5 1 SE 87 39 40 14 8 19 5 3 1 SW 77 49 21 10 9 4 3 3 1 4. Aktel and City Cell respectively. CityCell (5%). ‘Low call rate’ has been found to be 45 .7 Reasons behind Using Pre-Paid Phones: Prepaid Post paid Most of the mobile users have been found subscribers of pre-paid connections.6 User Ship: Pre-Paid Vs. and Banglalink (3%).1.1. The scenario is quite similar in all four regions of Bangladesh. The major reasons behind using post paid mobile connections. Postpaid: Most of the mobile users have been found subscribers of pre-paid connections. 3 Fig : Usership Type (Prepaid vs Postpaid) 6 12 97 100 94 88 Percentages of pre-paid users are 97%. The reasons behind using pre-paid mobile connections. 94%.8 Reasons Behind Using Post -Paid Phones Post paid mobile users have also mentioned reasons behind their preference. Fig 11 : Usership.Mobile (In %) 4.phone service from Grameen (71%). It is followed by Aktel (28%). The highest post paid user ship has been found among the City Cell users (12%).1. Teletalk (2%) The ever user ship is much higher for Grameen Phone (86%) than the current user ship.

Almost the same number of subscribers receives 5-7 calls per day. The scenario is almost similar in all the four regions of Bangladesh. it should be mentioned that 59% of the subscribers make less than 5 calls.the most mentioned reason by the post-paid mobile users (74%). 3% 1 3% 38% 39% 3% 1 2 % 2% 1 % 6% 3 % 5 % A bo ve 1 6 calls 1 6 4-1 c alls 1 -1 1 3 calls 8-1 calls 5-7 calls 0 Less than 5 calls Outgoing Incoming 92% 94% Fig12 : Duration of per call 4.1. Fig 11 : Num ber of calls.10 Duration Of Per Call Majority of the subscribers (34%) have reported that the duration of most of their calls is less than 5 minutes. 1 % 0% 1 % 1 % 6% 5% Ab 1 ove 0 m ue in t s 8 0m u e -1 in t s Outgoing 5 m ue -7 in t s Le t a 5 ss h n m ue in t s Incoming 46 .9 Number Of Calls Per Day Nearly two-fifths of the subscribers have mentioned that on an average they receive less than 5 calls per day (39%).per day 5% 9 Regarding the outgoing calls.1. Overall Low Call Rate Monthly payment T&T Incoming No Problem in card refilling 74 55 11 11 NE 83 67 0 0 NW 40 40 0 0 SE 71 67 19 19 SW 100 17 0 0 4. while 31% make less than 5-7 calls per day.

The number of operators is still significantly low considering the size of the market and demand for services.12 Likes And Dislikes Of Different Phones Two-thirds of Grameen phone users have responded that they like the network availability. One-fifth of the users of Grameen phone have expressed that they like My Time. PBTL is the pioneer. they use GSM mobile phones which are able to demonstrate thousands of alternative handsets with reasonable price ranges. etc.1. Lesser availability of the network (29%) and high call rate (22%) are the key disliking factors to the Aktel users. 4. PBTL is finding it quite difficult to compete with the rivals.4. about half of the respondents use for both personal and official/business related reasons (44%). whereas 46% of them dislike higher call rate of Grameen. However. In Bangladesh. PBTL is handicapped by the CDMA technology. But CDMA technology is unable to do so because the cost of CDMA handsets is quite higher than the GSM compatible handsets. In case of the mobile phone industry in Bangladesh.14 Bargaining Power Of Buyers 47 . the rivalry is quite high.1. majority of the cell phone users are from the young generation who likes to lead their life in dynamic styles. In this industry. That the phone can be used by all the members of the family is an important reason for preferring T&T phone to mobile phone. So. 4. Pulse facilities given by Aktel liked by 31% of Aktel users while the and lower call rate is liked by 24% of them.1.13 Degree Of Rivalry Among Established Firms The rivalry among the established firms in the industry determines the profit rate in many cases (Hill & Jones. because using this technology means limited options for handsets.11 Reasons Behind Using Mobile Phone Service Most of the users opined that they use phone service for personal reasons (52%).1. But still PBTL has been succeeded to capture quite a good portion of the market share. T&T phone users take T&T phone as a cheaper option than mobile phones. For this reason. 4. My Easy Time. But it has failed to grab the opportunity due to inertia and high exit barrier. 2001).

PBTL has a 48 .16 The Threat Of Substitute Products For PBTL. They have to rely on PBTL for spare parts and other help. In such cases the buyer’s bargaining power is higher. However it is notable that in case of packages are used for commercial use. Users of low cost packages may switch from City Cell Digital to other packages but only at a certain cost: that of cost of purchase. and Teletalk or Banglalink connections above that of City Cell Digital primarily for the network reach. the threat of substitute products is very real.500 for ISD connections).15 Bargaining Power Of Suppliers Bargaining power of suppliers is high because:  Suppliers provide CDMA sets that cannot be found easily from another supplier Suppliers do not depend solely on City Cell for significant portion of sales Products are not differentiated. There are also a number of other factors that make City Cell Digital vulnerable to this aspect of the five forces method of analysis.1.000 for local T&T connections.  In cases of packages like City Cell 500/1000 buyers have significantly less purchasing power because of the high deposits paid to PBTL (Tk 1.1. 4.000 for NWD and Tk 2. additional Tk 1. Many customers prefer to use GrameenPhone. In many cases it is seen that such customers run up bills equivalent to or above their credit limit then abandon their City Cell Digital number. AKTEL.Bargaining power of buyers is comparatively low under certain conditions:  Tellular customers have significantly low bargaining power because of the high cost of procurement of a Tellular set. This significant amount of investment means that customers cannot shift easily from one company to another. However this has little effect on over-all supplier power PBTL cannot vertically integrate backwards as it does not have the capability to produce hardware whereas the primary suppliers may buy a majority stake in PBTL    4.

3 Taka per minute (depending on the company and type of use). • Reasons for encouragement lies in the fact that people are finding mobile phones more and more useful. • • The coverage area of mobile networks is also increasing rapidly. 4. and others are now following. GP is the pioneer in reducing the start-up cost. the telecom industry in Bangladesh has undergone changes in different ways. • Start-up prices have gone down. • The main obstacle to the growth of this industry is insufficient interconnection with BTTB. There is little possibility that they will go down dramatically in the near future. GrameenPhone was also the first to launch the prepaid service. Mobile phone operators are providing 24-hour customer service. Many potential clients are being discouraged to subscribe.900 Taka. 49 .g. • New products are being introduced. in June 1998. the rates being so low. many clients prefer to stick with their City Cell Digital Tellular sets even after experiencing technical and network problems.significant hold over customers. today that subscription cost Taka 4500 during campaign periods. In case of Tellular packages. a GP-GP subscription cost 12.000 all inclusive – an owner of a Tellular set cannot easily substitute his or her product. • Many new entrepreneurs and large investors are taking interest in the mobile phone industry. • The airtime charges range from 4 to 3. Moreover as the initial purchase of a City Cell Digital set constitutes a significant investment – around Tk 15.2 Market Development of Mobile Industry: Since the introduction of mobile phones in August 1993. as a result of which the industry’s growth has been hampered. e. • Some of the constraining factors have not improved.

• International advertisements on mobile communication in the mass media have generated more interest and awareness. brand loyalty is discussed in detail considering as a vital aspect. High brand loyalty to GrameenPhone and the diehard users of the other three companies: Sheba. quality – to retain an upper hand. But this has also raised their expectations from the service-providing companies. Due to decreasing performance and slow progress in expansion of network. Essentially it is believed that the total potential market has been fulfilled by as much as three fourths and thus leaving a very small segment of customers for new entrants to gain. they will not take kindly to an upstart in the industry and may use as many competitive options as possible – price strategy. Mobile phones are becoming more useful and affordable day by day.3.3 Impact of Porter’s Five Forces The following discussion entails a brief industry analysis in terms of Michael Porter’s five forces model (Porter. 4.1 The Risk Of Entry By Potential Competitors To describe the risk of entry by potential competitors. providing the customers with more alternatives. City Cell Digital packages inspire less brand loyalty than before. Considering the size of the four companies already operating and the size of their investments. New companies will have to invest in equipment and will take considerably greater time to cover initial equipment-purchase expenses. Brand Loyalty.• Knowledge about mobiles among the customers and also among the general people has greatly improved. • Competition has increased. Absolute Cost Advantage and Economies of Scale. 4. PBTL & AKTEL ensures that potential entrants will be strongly discouraged by the high brand loyalty in current markets. However potential new entrants to the industry will be deterred by the high brand loyalty to GrameenPhone packages. 1979). 50 . Current players have a more or less absolute cost advantage because they have already invested in telecom infrastructure and have recouped their investments.

as they have to sell the ones they already have. In Bangladesh. Government Regulations.Distribution Channel. Findings and Recommendation: 5. Thus they will not take gently to allow new companies entering the industry. Other important things I have included in the early part of my report are SWOT of different operators and marketing mixes. I discussed some strategies for attracting new investment for the expansion in this sector.8 million subscribers and hold a infinitesimal market share around 3 %. They have already entered the mobile phone market. the telecommunications market is still own by the state-owned BTTB. This may make them influence the government to introduce new legislation designed to restrain the business activities of new companies. 2005. But in less than three year it has achieved 0. the distributors of mobile phones are becoming very limited. So it has become easy for me to side out the findings. I have discussed the present status of telecommunication industry in Bangladesh. It was 51 . Thus any increase in the number of companies will cannibalize into current sales. six major players of the telecommunication industry. Chapter-5 5.1 Findings: In this report. In addition. With four companies competing in the current market environment. Basing on the study major finings are as follows: Teletalk started its operations 31st march. I also thrashed out the goals of mobile phone industry in Bangladesh. Another major barrier to entry is the access to distribution channels. many retailers will not want to carry more lines of mobile phone packages. Moreover.

As a service organization. in where professionals and expertise have given emphasised on TQM(Toatal Quality Management). % market share. The below mentiond discussion and analysis of the SWOT will make the findings more clear: 5. In contest of promotional activities GP. citycell are more concern about 7 P’S i.price. GP is enjoying competitive advantages over the other competitors in the mobile industry. CityCell and Teletalk market shares are 7% and 3% respectively. Therefore GP has to increase the satisfaction level to be one step a head from its competitors. But the scene is reverse for teletalk. So. place. The industry average for satisfaction subscribers are average satisfied with their current mobile connection line. So among the six operators Aktel and Banglalink are core competitors for GrameenPhone.found from the study that GP still is the market leader in the mobile phone industry and they hold 47% market share. Aktel. Not only that teletalk is still far behaind from the other operators from the context of value added service. person. environmental friendly organization. promotion. Banlalink. Banglalink is holding moderate position of customer satisfaction level whereas CITICELL and TeleTalk are holding bellow average of customer satisfaction. better after sale service. Banlalink..e. citycell always keep themselve ahead that actually boost up their brand awareness. Aktel. physical evidence and process. Besides these they have strong human resource department and fine corporate culture. But the matter of fact that Teletalk has a very little number of advertisement. product. Aktel is the next closed competitor for GP. GP. GrameenPhone’s customer satisfaction level is higher than industry average. GP become the market leader not just because of numbers but also for their good network coverage. customer responsiveness.2 SWOT Analysis of Teletalk Bangladesh Ltd: Analysis Of Strengths:  Subscriber inclination to Teletalk as a government owned organization: People have a deep inclination towards Teletalk Because subscribers have more confidence 52 . Aktel is also reaching GP and they hold 22. value added service etc.

It’s the only SIM which has such a versatility of connections having ISD. organization in Bangladesh. The other local organization named pacific telecom is providing CDMA technology which is more expensive. Banglalink or Aktel.  Moreover its contribution to our economy can be notable: As a Govt. owned company teletalk have a strong contribution in our national economy. Whether other operators providers providing such kind of facility just now.  It has also provided incoming facility up to 2015: Teletalk have a strong strength over its competitors incase of incoming facility. he started comparing it with the services of Grameen. So teletalk can take this advantage over its competitors. Its one of the high profit generating Govt. This is not seen to other providers. Healthy competition came into the mobile market. They think that they might get some extra benefit from teletalk like lower call rate. optical fiber facilities etc.  Teletalk is the only indigenous company using GSM service: Teletalk is the only local organization which is providing GSM technology in this country.in the government institution. rather than other providers. As soon as anyone could catch hold of a Teletalk mobile.  Teletalk’s all connections are ISD & EISD: It’s a big strength of teletalk. 53 . It gives a tremendous competitive advantage to the teletalk Bangladesh ltd over its respective competitors. Analysis of Weaknesses  Premature entrance in mature market:The biggest weakness was a premature entrance in a mature market. As soon as teletalk announced its tariff the long lasting oligopoly between other private mobile providers were shattered. Teletalks present incoming duration is up to 20015.  Low cost provider: The most remarkable success of Teletalk is the slump in tariff structure. Economy ISD service along with both incoming and outgoing connectivity with any of the land phones. Which is 20 times more than other competitors?  From the very beginning it is providing free TNT incoming: Teletalk is the only provider which is providing T&T incoming free from the very beginning. It is the lowest cost provider in Bangladesh telecommunication market.

are available at 3 to 4 times less price than that of teletalk. As a result the service quality and customer satisfaction go down.  Weak management system: poor coordination among different functional department of Teletalk as result service efficiency goes down. having similar facilities offered by teletalk. as a result teletalk can cover the most of the area of Bangladesh. It is totally unjustifiable to charge subscriber such an astounding price for having a SIM of a network which doesn’t have satisfactory level of coverage. The comparison of value added services of different operators are mention below. As a result subscribers are becoming dissatisfied on the Teletalk service.  The progress of development of network is far below from the subscriber expectation: the expansion of network coverage is too much slow. is providing a less number of value added service to its subscriber regarding its competitors. owned organization especially to the local 54 . People thought that teletalk should use the BTTB’s network facilities. Lower number of human resource: The number of employee of teletalk is too much lower regarding its requirement.  Lower number of value added service: Teletalk Bangladesh Ltd. There strategy making is not match with the current situation. But in reality this is not true. Analysis of Opportunities  Teletalk can use the image of local and government owned organization: General people have a deep inclination to the govt. Where as Teletalk providing less number of value added service.  Lower promotional activities: The promotional campaign of teletalk is not too much strong like other providers of Bangladesh as result consumers are less aware about teletalk and its package.  Failed to identify difference between developed market and developing market: Teletalk failed to identify the difference between developed market and developing market.  High connection charge: The SIM price of teletalk is too many high packages from the other operators.  Poor marketing: The overall marketing activities of Teletalk is not much rich like other competitors.

which might create a big problem to teletalk and others.  Introduction of new technology and services: Teletalk can implement new and consumer oriented technology in this sector.organization. Analysis of Threats  An upcoming mobile service provider named WARID TELECOM a concern of Dhabi group: At present Bangladeshi mobile sector is almost saturated .  The invention of technology which is new modern and consumer oriented: Technology is changing with day run. It changes the consumer’s demand pattern by offering different attractive features. after that a new company named WARID is going to starts its operation in Bangladesh which going to become a big threats to teletalk and other operators. legacy network that depend on a single specific switching technology. give teletalk competitive advantage over its respective competitors. Which things. from the perspective of long term sustainable development. Now a day’s people are ready to accept the new thing. As a result consumer shifts from one technology to other technology. an operator can select suitable bearer mode technologies for different phases. People want to keep the money into own country.  Teletalk can use the experience of BTTB: BTTB one of the old and experience organization in Bangladesh telecommunication sector.  Expand the market in the rural area: Till now there is huge area is remain out of coverage where a huge number of target consumers are available. 55 . Based on strategic planning and the developmental phase. Because people have inclination to new and modern technology. So teletalk can use such kind of soft corner of consumers and promote the service to them. IP and ATM unlike. They know about the consumer’s need and want. They have special experience about the consumer behavior of Bangladesh. the IP centered softswitch network defines the future. So teletalk can use this technology and practice competitive advantage over rivals. So teletalk can bring that respective area under coverage and catch those potential consumers.  Teletalk can use softswitch network: The softswitch network separates the bearer and control layers and a softswitchcentric network can be built on different types of bearer networks such as TDM. So teletalk can take help from the BTTB about this matter and implement those criteria in the competitive market.

Finally I have suggested few points to make telecommunication industry healthy: • • • • Promote competition and investment by private firms. technological choice. 56 . information is playing an even greater and more important role in their day-to-day life. For the high demand of the mobile phone there are many unmeet demand are waiting to acquire. Provide and promote education of what telecommunications and information services can do and how to use them. People are switch from mobile to land phone operators.3 Recommendations: It was found that few operators in the market are trying to meet the growing demand of the city dwellers need for communication. People are gradually becoming informed about the value of information and understand the fact that timely access to the right information slants the balance of market information in their favor. Therefore. legal and cultural support might help achieve the goals. As self-employment and market orientation is increasing among people. As a result ultimately the number of mobile user is decreasing and create problem to the mobile operators as well as teletalk. Teletalk has to run to meet those demand of customers by providing the product and services at an affordable and minimal price. Ensure access to advanced services in rural and high-cost areas. political. Another invisible threat is land phone operator: In Bangladesh land phone operator is expand the market with day run. and social. governments of developing countries in general and Bangladesh in particular. Ensure access to advanced services for schools and libraries. have to address this issue of increased basic telecommunication connectivity to keep its population in the fast track of economy. 5. I believe the strategies and policies about financial planning of telecommunication infrastructure projects.

The number of 57 . for govt. The industry’s character was monopolistic and people had been expecting for T&T incoming and outgoing mobile phone. it was troublesome to control the total mobile phone service market. In present scenario all those objective has been achieved. 10) Spend money wisely to minimize the cost which leads to maximize the profit. So. raising their productivity. Expand the coverage as soon as possible. Advertisement should be more appealing. 5.4 Conclusion: Telephone helps people work together. generating a good business. Billing system should be improved. This gain in productivity is development. to invest in profitable sector.There were three reasons behind the inception of TeleTalk. it has to consider the following point to be a healthy market share holder in future: 1) 2) 3) 4) 5) 6) 7) 8) 9) Strengthening the network system. Thus development and business go together. But TeleTalk. Launch less product rather than multiple products at tie. The price of SIM and call rate were sky touching. Tariff should be user-friendly and comprehensive. All operators are coming up with different attractive products and services. Reduce the call charge. which in turn enables them to afford a telephone service. Improve the standard of advertisement. Add value to particular product. phone into their hand because it seems to them very reasonable in price. mobile telecommunication industry has tremendous competition. And third reason was for Govt. First. Scratch card validity was only for 21 days and it was very pain full for general subscriber.s has only three percent market share and this rate is not stable and sometimes downward Teletalk has a threat of price war from its competitors. Second reason was people were expecting a Govt. In fact.

Teletalk maintains relation ship marketing policy as well.4 billion dollars.2007. its distributors. The investment of mobile phone operation is 3. John M. Friday. Report on “Mobile phones are everywhere” and The business section of The Daily NEWAGE. When service came with lower tariff was the strong path to influence people about the new service. This report will assist me to build up a better career in the job section.3 4. consumers and its overall marketing condition in communication sector. promotional activities etc.7. may 18. 5. 2007 from 11 million a year ago (Asian Development Bank). marketing strategy. Teletalk Bangladesh ltd introduce in 2005. At a time Teletalk takes also better position in consumer mind by its quality. retailers. Teletalk Bangladesh Limited is the first government owned private cellular operator in Bangladesh. So that there sales volume is more then others. I learn so many things from this report about Teletalk Bangladesh its service nature. p. “Main story” and interview of “Mobile personality” of Monthly Magazine “THE MOBILE” April 2007 p. Philip Kotler 2. 6. 58 . 11e. Ivancevich. Special feature of The Daily Prothom Alo on “2nd Anniversary Teletalk Bangladesh Limited” Saturday. March 1992. Reference: 1. There was 100% telecom growth in the last year. Teletalk formed a cheap rate for the first time in Bangladesh. In that time Teletalk followed a smooth marketing strategy. I gather some essential information from my survey that has needed to improve in some sector like network coverage. Business for the 21st Century. " Taking the measuring of Quality. Marketing Management.2007.mobile phone subscriber hit 22 million up to march 31.7. 2003 by Steven J Skinner. 3. attractive tariff plan etc.17-19. And the number of subscribers would be doubled to 44 million in next two years.18. p. " Service Savvy. Report on SWOT analysis and tele situation of Bangladesh is the part of our credit course of BBA Program. march 31 .p.

com www. Report of Grameen phone on “Customer Management Division” in the year 2005 page 1-18.grameenphone. 8.7. .com • www.banglalinkgsm.com.com • www.com 01) Amplifications of some noticeable abbreviations: SIM ADB GSM DSE .teletalk.iutworldtelecommunication.waridtel.aktel.Bangladesh Telegraph and Telephone board.com.bd www.google.com • www.Global System Mobile.citycell.com • www.bd • www.Dhaka Stock Exchange CDMA .Asian Development Bank . Report of TeleTalk on “SERVICE PROMOTION POLICY OF TELETALK BANGLADESH LIMITED” in the year 2006.Code Division Multiple Application BTTB . 59 . Website • • • www.Subscriber Identification Module . 9.