Assignment3: Name ID Section#:

Spring 2021 Md.Ibtida Fahim 1621749043 10

Nature of Competition in
Telecommunications Industry
The telecommunications industry has emerged as the world's fastest expanding technology
industry. Because of increased technological advancements and intense rivalry among all
telecommunication service providers, the telecommunication industry plays a significant role
in almost any country's economic growth. The telecommunication market is undergoing a
massive global transition as a result of privatization and regulatory liberalization.
The telephone communications market is the most important part of the telecommunications
industry. Wireless broadband and cellular networks are also operated by businesses in this
market[ CITATION BRI \l 1033 ]. Wireline networks use wires and cables to link consumers' homes
to telephone firms' central offices. Competition in the telecommunications domain is quite
unique as it is mostly dependent on a counter-measure strategy followed by rival firms. Nature
of telecommunication industry are – i) Competitive dependent upon rival strategy ii) Pricing
differential is the basis of telecommunication industry competition iii) The bandwidth and
network coverage impact the market coverage of the firm iv) Customer retention is quite
difficult as customers frequently telecommunication services [ CITATION myp21 \l 1033 ].

The telecommunication firms compete mostly on price differential war strategy. Bangladesh
players always play good they are famous for their competing with others country, “In last five
years definitely there was some errors found in there playing, do not every country face in this
type of problems for every player is not perfect experience may develop the skills it is also
happened with Bangladesh players in last five years they also have to do hard work more for
future achievement, fore compete with other players they have to learn all things and also
have to do more practice for better performance” [ CITATION MsF12 \l 1033 ].

The loyalty program is always better for organization compared to price war in loyalty program
it will beneficial for organization in the form of increase customer base in market [ CITATION
Mol21 \l 1033 ].In loyalty war industry or companies always provide Discounts on products or
coupons for increase or consumer base, and also retain existing customers, and it will
defiantly work in market scenario, study shown that consumers always interested in Discounts
and coupons, rewards and gifts ,they are to much excited about it compare to price war or
less price, consumers never calculate gift, rewards in money they just take it as exited or
happy feelings that’s why Loyalty program work, compare to Price war.
Benefits of loyalty program always increase organization growth. Loyalty program always top
competing on price with competitors, it retains existing customers always, also it is increase
customer lifetime value for organization or any particular product, another benefit of loyalty
program is it build personal relationship with consumer and 8 create brand advocates in
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Spring 2021 Md.Ibtida Fahim 1621749043 10

market or customer mind so these are best benefits of loyalty program which is always
beneficial for organization success.
If I discuss about price war then price were always beneficial for consumers and it is always
harmful for organisation because in price war organisations or companies for competing other
companies decrease price rate products for increase sales in short term but it is also
decrease profit of organisation because they are selling products in less price [ CITATION
WIL21 \l 1033 ].But it is good for consumers because they buy this product in less price and
save money, also price war is done by companies for increase share value in market.
There are early telecommunication industry in Bangladesh are competitive in the market
because research has shown that many of the industries has collapsed [ CITATION MdH17 \l
1033 ]. The loyalty scheme of telecommunications in Bangladesh are- i) Oriented industry
always put priority to make customers happy and satisfied, ii) Provide their required products
and develop distribution to customers with profits, iii) Value technological advancement and
company image providing proper software and other significant products to the customers, iv)
giving them some preference is and repeating customers provided prophets in cash benefit
and other credit point.
Loyalty program and price war it is not possible to collude both, Because in loyalty program
organizations provide discounts, rewards to customer for increase customer base, so
basically they Spending small amount of money on it, it may be coupons or reward gifts, And
in price war here company directly decrease their product price for increase customer sales
but in its huge amount or loss company facing to increase customer base if we Collude loyalty
program and price war company facing loss in both side, that is from loyalty program and
price war both methods are paid and company have to spend money for both methods so so
it will increase cost for implementing this method that's why both made without call you would
it harmful for company or not beneficial [ CITATION Aks21 \l 1033 ]. That's why mostly it is not
collude.
Then it is open in market because it is for every consumer and also the aim of this is increase
sales or increase customer base that's why open is used instead of tacit.
Discuss about government decision or action of government about out government license,
economic of scale patents access to expensive and complex technology which type of action
can take government in price war or in tacit.
The telecommunications industry is growing as it modernizes and develops technology. The
mobile telecom industry has a greater influence in developing economies, as long-term
developments in infrastructure and networks contribute to increased voice and data
infiltration.

Bibliography
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Spring 2021 Md.Ibtida Fahim 1621749043 10

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