OVERVIEW OF MOBILE

TELECOMMUNICATION INDUSTRY
IN BANGLADESH.
INTRODUCTION:
Watson, come here: I want you. This was the first message ever transmitted from one
place to another, through a device called telephone. American genius, Alexander Graham
Bell (1847-1922) along with his assistant Thomas Watson invented the device. It was March
10, 1876, an important day for human civilization, the first step towards developing means
of communication. Weve come a long way since then. Today, telephone is a part of our
everyday life. Besides telephone, now-a-days mobile phones are playing a great role to
communicate from one place to another. Today, telecommunication is one of the major parts
of life. Nowadays, the phone is not only used for making calls, among many other functions
its used for communicating through text-messages and so called multi-media messages, as
well as to connect us to the internet. The opportunities that lie in the telecom market seem
endless and the growing demand for mobile telephony systems is creating a world-wide
market. The telecom industry is nowadays not only by means of millions, but by means of
billions. Actors in this industry are seeking the most profitable markets throughout the
world. In this assignment we will discuss about the mobile telecom market situation and
their competitive analysis.
v ABOUT BANGLADESH
Bangladesh is one of the poorest, most densely populated, least developed countries in the
world. Apart from its lowly economic status, major impediments to growth have included
frequent cyclones and floods and the slow implementation of much-needed economic
reforms. The country has a reputation for the inefficiency of its state-owned enterprises.
This report looks at the countrys surprisingly energetic telecoms sector, in particular, the
effort that has been going into building telecom infrastructure and the progress that has
been made on regulatory reforms. Some key measures of the status of telecommunications
in Bangladesh are also provided.
Population:
By July 2008, the total population of Bangladesh is going to be 153,546,901 with a growth
rate 2.022%. In July 2007 the growth rate was 2.056%. (CIA World Fact Book 2008)
Age structure is 0-14 years: 33.1% (male 25,639,640/female 24,174,937), 15-64 years:
63.4% (male 48,659,087/female 46,712,687), 65 years and over:3.5% (male
2,818,638/female 2,443,350) (2007 EST.). Median age of the population is 22.5 years.
(ibid)
Communication systems
Communication in Bangladesh is based on Telephone, mobile communication, TV Broadcast,
Radio, Internet etc. Three types of radio broadcast stations; AM15, FM 13 and shortwave 2.
There are 376 Internet hosts with 10 ISPs and 450,000 internet users as of the year 2006.
Telephone density is less than 1 per 100 persons. Mobile cellular density is 13 per 100 per
person. The country is introducing digital systems, trunk systems which include VHF and

UHF microwave radio links and some fiber optic links. The country has a link to Europe with
SEA-ME-WE-4 fiber optic submarine cable. (CIA World Fact Book 2008)
vMETHODOLOGY
We have conducted the literature search connected to the topic to support and direct the
research. This search was mainly conducting on the University databases, Journal
databases, Library Journals, websites and Textbooks.
We have searched the databases provided by University library access, like Emerald,
Business Insight, ABI/Inform, Global Information Inc (professional Research reports) and
search engines like Google scholar and university special search engine connected to all
databases and textbooks. The key words mainly used were Bangladesh Telecom industry,
Telecom future, Trends in Telecom, Bangladesh telecom Market.
In the full range of articles and journals on the subject of internationals marketing, investing
in a new market, the We have found one of them very useful on the subject of Bangladesh
Telecom Brief 2004 This paper tells the inside of offering and the potential what Bangladesh
market offers, not exactly the same subject but one major side of our paper has the subject
of same interest.
The Theoretical Framework has been created with the help of some text books on
International Marketing and marketing in general. Text books of marketing such as
International marketing by Cateora & Ghauri (2006), Internationall Marketing by Bennett
& Blythe (2002) and On Competition of Porter M. (1998) has been used for this project.
v Telecom Infrastructure in Bangladesh
Many foreign investors are now interested to do business in telecom sector in Bangladesh
which reveals that Bangladesh has become a significant hub for telecoms. It has been
forecasted that the average revenue from telecoms sector will be Tk1500crore2 a year.
Bangladesh is a country which is densely populated and also is a flat and easily extends able
coverage. The infrastructure and Tele-density is low which on the other hand made the
market a perfect place for telecom business. The demand is very high and the consumer
base is very large but the investment is low because of the topographic layout. The
government has a receptive foreign investment policy with no restrictions on repatriation of
profit. Even though the current infrastructure is not much developed but it is suitable for
foreign investment.
Bangladesh has a huge potential in WiMax and submarine cable which is a new technology
in the country and has attracted the foreign telecom operators. Many foreign telecom
operators are coming to Bangladesh to explore the potentiality of the technology. Some
interested international telecom operators who want to start a business in Bangladesh are
UK-based Orange Telecom, South Korean SK Telecom and UAEs Etisalat.
The government is encouraging private sector to invest more in the industry as they think
that the industry is playing a vital role in developing the socioeconomic structure of the
country. And to ensure that, the government has taken several attempt. Giving private
sector the license for fixed line telephone is one of those attempts. Due to the
environmental facts, the foreign entrants should adjust their equipments according to
demand of the environment
v TREND IN TELECOM MARKET IN BANGLADESH
BIS Shrapnel, has launched its Bangladesh Mobile Telecommunication, 2005 report. Report
author Mr Priyam Shah explains that Bangladeshs mobile phone market has achieved

exceptional growth since the beginning of 2004, registering a massive 100% growth in its
subscriber base during 2004, and 137% during 2005. This trend is forecast to continue over
the coming years, bringing the subscriber base to 58.2 million by 2010.
According to Mr Shah, recent growth in the Bangladesh mobile market can be attributed to
factors such as the deregulation of the telecommunication sector, low levels of tele-density,
inadequate fixed phone infrastructure, high competition following the entry of two new
operators (Banglalink and Teletalk) and, particularly, massive foreign direct investment
(FDI) by telecom giants like Telenor, Telekom Malaysia (TM), Orascom, SingTel, and most
recently by UAE-based Warid Telecom. Mr Shah explains that foreign operators, in
collaboration with local partners, have been working with the infrastructure to remove entry
barriers and make mobile telephony more affordable and widen the base of mobile
subscribers.
Mobile Price War
According to Mr Shah, the entry of Banglalink in February 2005 has sparked a price war.
Banglalinks attractive launch offer included a new connection and handset at a low start-up
cost of US$51. Following Banglalink, three other private operators Grameen Phone, Aktel
and CityCell have also come up with various value-added offers resulting in an intense
price battle.
The development of a competitive mobile phone market is expected to prompt an easing in
cellphone tariffs going forward, after years of escalation in what was a captive market.
Consumers will also benefit from cheaper connection and call rates.
State-owned operator Teletalk, however, is expected to struggle in this new environment as
it is still grappling with poor network coverage and inefficient management.
New SIM Tax
Controversially, the countrys 2004/05 annual budget (delivered in June 2005) imposed a
tax of US$18 on each new SIM card connection, raising a huge furore among cellphone
operators. Operators think that the new tax will pose a serious entry hurdle for low-income
earners and will significantly stifle growth expectations.
According to the latest figures from BIS Shrapnel research, the sale of mobile phone
connections has picked up after an initial slowdown in June and July 2006. The tax on SIM
cards was revised to US$13.50 in August in response to fierce demands from operators
Mobile Handset Market
In tandem with the growing subscriber base, sales of mobile handsets has increased at a
phenomenal pace. However, nearly 70% of mobile handsets available in the local market
have been entering through informal channels, depriving the Government and importers of
a huge amount of revenue each year. In a serious bid to turn around this drastic situation,
the Bangladesh Government reduced the tax on mobile handset imports from US$22.50 to
only US$4.50 in mid 2005. Mr Shah explains that although this initiative has revived the
situation to a certain extent, the effect on the grey market has not been as significant as
was expected by distributors and importers.
Interviews conducted by BIS Shrapnel with leading distributors reveal that the grey market
is currently holding around 40% market share, but they are hopeful this will diminish over
the coming months.
According to BIS Shrapnel research, Bangladeshs mobile handset market is dominated by
first-time users (nearly 85%), as the country is still in its infancy in terms of mobile phone

usage. Further, 80% of the handset market is dominated by ultra-low to low-end handsets,
available for less than US$68, due to the countrys low per capita income levels.
As with many other Asia-Pacific countries, the Bangladesh mobile handset market is
predominantly captured by global handset giant Nokia (approximately 52% market share)
followed by Siemens.
Mr Shah explains that the success of these two vendors can be attributed to excellent
handset quality, ease of use, an efficient sales and distribution network, dedicated aftersales service, and regular launches of low-priced handsets to meet market demand.
The Mobile World Statistics
According to The Mobile World, at the end of Q3 2005, the countrys penetration has just
nudged over 5% with 7.3 million customers. Grameen Phone is the market leader with 4.2
million customers. Number two in the market is Aktell (Telekom Malaysia) with just over 2
million customers. Sheba Telecom has just over 600,000 customers while Pacific Bangladesh
Telecom has just over 300,000 customers and Teletalk Bangladesh picks up the tail with
120,000 customers. Warid Telecom had not reported figures at the time.
v OVERVIEW OF MOBILE TELECOM MARKET IN BANGLADESH:
Currently there are 6 mobile operators in Bangladesh. They are namelyGrameenphone Joint venture ownership 62%Telenor and38%Grameen
Telecom .
Banglalink Joint venture with Orascom Telecom Co. originated from Egypt.
Aktel Joint venture between Telecom Malaysia Berhad TM and A. K. Khan&
company limited
Waried Telecom An investment of Dubai and Abu Dhabi Group UAE.
TeleTalk Public limited company but 100% share have been owned by
thegovernment of Bangladesh.
Citycell Joint venture with SingTel Asia pacific investment Pvt. limited.
Below is a table that reflects the current competition of the market. Number of subscribers
for the Mobile Phone operators is shown below:
Figure: Bangladesh Mobile operators market share.
(BTRC 2008 ) *Subscribers in Millions.
Over the last two to three years, the number of mobile subscribers in Bangladesh has been
more than or close to more than doubling on an annual basis. By end-2007, the subscriber
base had reached 34 million and was continuing to grow at an annual rate of around 60%.
With the momentum that has been developed on the back of the governments deregulation
process, the strong growth seemed likely to continue. The entry of new operators into the
market has certainly helped to further boost the competitive environment. This report
describes how the mobile market is growing and the impact this is having on the developing
nation, as well as providing an outline of the main players. The report also has a brief
overview of the TV broadcasting sector.
Consumer demand in Bangladesh makes the mobile market one of the fastest growing
markets in the world. During first six months of 2007, Bangladesh recorded 7.7 million (1.3
million/month) subscribers. At this pace, the expected mobile subscribers by the end of
2007 were 35 million and a market penetration of around 25%, signifying year-on-year
growth of up to 70%. The following figure can give an over view of the potential market of
Bangladesh in near future. (Telecom Insight 2007)
v The rivals and their brief profile:

Now we will see the brief company profile of these rivals:

grameen phone
Grameenphone is a GSM (global system of mobile communication)-based cellular operator
in Bangladesh. It has started operations on March 26, 1997. It is partly owned by Telenor
(62%) and Grameen Telecom (38%). Grameenphone is the largest mobile phone company
in Bangladesh with 23.04 million customers as of october, 2008. It is also one the fastest
growing cellular telephone network in Bangladesh. At the end of 2008, it had about 5200
BTS (Base Tower Stations) around the country. Grameenphones stated goal is to provide
cost-effective and quality cellular services in Bangladesh. On the 16th of November, 2006
GP formally changed its logo to match its parent company Telenors logo. According to GP
the new logo symbolizes trust, reliability, quality and constant progress. Grameenphone has
already picked up 425 core taka of Non-convertible Senior Coupon Biasing Bond @ interest
rate of 14.5 by the help of ten financial group of the companies. The company is recently
going to call for IPO (Initial Public Offering) to collect capital from share market of the
country of 6 core 50 lakh dollar (449 core taka). GP has submitted the prospectus of
proposal for IPO in 12/12/2008 to the chairman of SEC (Security and Exchange
Commission). The name of present CEO of GrameenPhone is Odver Heszedal.
The name Grameenphone was kept as part of the new identity because the name
Grameenphone carries with it all of the heritage, success and values of the companies past,
added the then CEO of Grameenphone Erik Aas.
Hawaii, and Ericsson provides technological support to GrameenPhone. The tower range
of GP exists 5-7 km. The technology used by Grameenphone is1G (First Generation) which
is supportable to 2G (Second Generation).
>>Products offered
Grameenphone offers subscription in two categories, Prepaid Subscription and Postpaid
Subscription.
>>Prepaid subscriptions are sub-divided into three plans:
1.
Smile:
smile (mobile to mobile connectivity within Bangladesh),
smile PSTN (nationwide and international mobile and land line connectivity)
1.
djuice (a youth based mobile to mobile connectivity within Bangladesh).
>>Postpaid plan:
xplore (nationwide and international mobile and landline connectivity)
Grameenphone also offers different value-added services including SMS, MMS, Welcome
Tunes (Ringback Tones), Voice SMS, SMS Push-Pull Service, Voice Mail Service (VMS), and
Fax and Data among others. Grameenphone was the first mobile operator in Bangladesh to
offer EDGE services to its subscribers.
>>Other activities
>>Village phone
With the help of Grameenphone, Grameen Telecom operates the national Village Phone
programme, alongside its own parent Grameen Bank and the International Finance
Corporation (IFC), acting as the sole provider of telecommunications services to a number
of rural areas.
>>Community Information Centers

Community Information Center (CIC) or GPCIC is aimed at providing internet access and
other communications services to rural areas. In February 2006, 26 CICs were established
across the country as a pilot project. In this project, Grameenphone provides
GSM/EDGE/GPRS infrastructure and technical support and other partners Grameen Telecom.
>>Grameenphone Centers
A grameenphone center (GPC) serves as a one stop solution for customers, with all
telecommunications products and services, under a single roof. A grameenphone center also
sells phones from vendors like Nokia, Samsung, Motorola,Sagem and Benq. EDGE/GPRS
modems and accessories such chargers and headphones are also sold at GPCs.
CSR(Corporate social responsibility):

Grameenpnone focuses its CSR on the field of followings:

It contributes its responsibilities toward countries education, empowerment & health
sector.
2.
Beautification of the city towns.
3.
It is the official sponsor of Bangladesh Cricket Board (BCB).
SWOT analysis:
According to the executive opinion we have analyzed the SWOT of the company. According
to a executive of GP theirStrength: Network coverage (94%of total area of the country.) &Total number
of customer.
Weakness: Short term defensive strategy & high call rate, which may hamper
the companys good will & Future competition.
Opportunity: To get link to the up coming technology i.e. Wi-Max.
Threat: Up coming technology may not support the present technological
infrastructure. And Banglalink.
Banglalink
With a slogan of making it difference- banglalink started operations in February 2005.
Previously, it was known as Sheba Telecom Pvt. Ltd that had been providing GSM (global
system of mobile communication) services in Bangladesh since 1998. Orascom Telecom
bought 100% share of Sheba Telecom in 2004 and gave its new name as banglalink.
banglalink, is the second largest cellular service provider in Bangladesh. As of August, 2008,
banglalink has a subscriber base of more than 10 million. It is a wholly owned subsidiary of
Orascom Telecom. banglalink had 1.03 million connections until December, 2005. The
number of banglalink users increased by more than 253 per cent and stood at 3.64 million
at the end of 2006, making it the fastest growing operator in the world of that year. In
August, 2006, banglalink became the first company to provide free incoming calls from BTTB
for both postpaid and prepaid connections. banglalink provides its powerful network by
5500(approx) BTS (Base Tower Stations) is covering 486 Thanas reasonably and 61
districts, covering a total population of around 90% till mid of 2008. After Govt. withdrawal
of the restriction of planting network infrastructure from the three hilly districts (i.e.
Banderbarban, Kagrachori & Rangamati) banglalink covered the 64 districts within very
short time. The name of present CEO (Chief Executive Officer) of banglalink is Ahmed Abu
Domer.
The logo of the company is designed on keeping the national animal i.e. Royal Bangle Tiger
in mind, which symbolize to the faster growth. During the 3rdquartile of this year which
means july-september, 2008 the company earned 524 core BDT. And the companies market
1.

expanded to 10.17 million customers. An banglalinks executive opinion about this was, the
quality of product & service and continuous development of network has help them to reach
this position. He also hoped that the customer size of the company will increased to 10.35
million by the end of this year. banglalink serves their customers with more than 700
CCP(Customer Care Point). Till now banglalink has invested 6,324 cores BDT. for the
development of network and infrastructure.
Nokia-Siemens network & Hawaii provides technological support to banglalink. The tower
range of banglalink exists 5-9 km. in case sometime it varies to about 13-15 km. The
technology used by banglalink is 1G (First Generation) which is supportable to 2G (Second
Generation). Banglalink also has
1500 km. of Fiber Optic cable which gives the surety of good network. During the occasional
periods banglalink ensures much better service than the other operators.
Products Offered
Prepaid Packages
banglalink currently offers two prepaid plans. All the prepaid plans come in two phases
Standard (T&T incoming and outgoing with NWD and ISD) and M2M. All connections provide
GPRS to subscribers.
desh, with the slogan One country, one rate, is one of the cheapest prepaid plans in the
country by tariff.
ladies, first!, with the slogan Shomporker Network (means network of relationship), is
tailored for women.
Postpaid Packages
Currently there are three postpaid plans from banglalink. These packages are called
enterprise personal. All packages come with T&T local, NWD, ISD and e-ISD connectivity.
personal package 1
personal package 2
personal call and control
banglalink enterprise

banglalink enterprise offers a wide range of products and services to suit the needs of the
business community. The current packages are:
enterprise corporate; targeted at the corporate segment
enterprise SME; targeted at the SME segment
enterprise personal
banglalink CU

banglalink CU package is targeted at the shopkeepers, which offers PCO facility to the
general public. It comes in two varieties:
CU
CU call and control
banglalink point
banglalink points are aimed at providing a complete mobile solution, connections, handsets,
accessories and provide selected customer services like SIM replacement, reconnection, bill
payment etc. They are strategically located at key points around the country. Kallol Group a
local distribution company had partnered with banglalink to operate at least forty banglalink
points through out the country. As of March, 2008, the deal with Kallol Group has been
called off and banglalink is focusing on managing its own customer care centers.

CSR(Corporate social responsibility):

Banglalink focuses its CSR on the field of followings:

Tradition & culture of Bengal.
Beautification of the city towns.
It is the official sponsor of Bangladesh Tourism Corporation.
It has under taken the voting campaign to vote for Cox-bazaar and sunder-boon and
cleaning Cox-bazaar.
5.
It has provided Trolley for the passengers of Zia International Airport.
SWOT analysis:
According to the executive opinion we have analyzed the SWOT of the company. According
to a executive of GP theirStrength: Active distribution management and sales personnel & brand
image. And network coverage (95% of total population).
Weakness: Time constant with other companies are not suitable.
Opportunity: Rural market & corporate customers.
Threat: Only time sense.
The executive also emphasized banglalink as best mobile company of the country. And are
capable to be a market leader within short period of time. According to him team sprite,
superior-subordinate relationship, and working environment is excellent. The company is
ready to take any challenges and have the capability to overcome it.
AKTEL
Telekom Malaysia International Bangladesh (TMIB) Limited is a joint venture between
Telekom Malaysia Sdn. Bhd. (70%) and NTT DoCoMo (30%).
Aktel is the third largest mobile phone operator in Bangladesh in terms of revenue and
subscribers (8.14 million as of August 2008). In early 2008 Aktel slipped from the second
position to the third after facing fierce competition from banglalink.
AKTEL launched its operations on the 15 November, 1997 in Dhaka and on 26 March, 1998
in Chittagong. Its founding chairman is Late Mr. Zahiruddin Khan, an ex-commerce minister.
AKTEL was formed as a joint-venture between Telekom Malaysia and A.K. Khan Company.
All along through its insception it was ranked as No.2 mobile operator and was placed far
behind the industry leader GrameenPhone in terms of revenue and no. of subscribers.
AKTEL started investing heavily with funds from Telekom Malaysia (the majority stake
owner) on expanding its network in 2001 but the investment was far too inadequate in
comparison with GrameenPhones investment.

Products offered
1.
2.
3.
4.

Aktel offers an array of different packages. In addition to offering the fundamental pre-paid
and post-paid mobile services, it offers a wide range of value added products and services
such as, SMS, GPRS, mobile data services, infotainment services, SMS banking, Caller Ring
Back Tone, Ringtones download, Picture Messaging, MMS, Voice Greetings, Call Blocking on
4th August 2008, which give subscriber to control which call he or she receive or not and
Bengali SMS.
Customer care

AKTEL has 19 Customer Care Centers[8] and 200 Customer Service Points in 61 allowable
districts all over the country[9]. Aktel has another 670 AKtel Touch Points (ATP) scattered
along the most densely populated areas.
CSR(Corporate social responsibility):

Aktel has been offering scholarships to three Bangladeshi students every year for bachelor
courses in engineering, information technology and business administration since 1998 to
study at Multimedia University in Malaysia. It is the founding member of Chittagong Skills
Development Centre (CSDC) that is offering technical training and business management
education through its strategic partnership with Penang Skill Development Centre (PSDC) of
Malaysia and its internal members. It also beautifies the city areas. In 2007 Aktel received
Standard Chartered-Financial Express Corporate Social Responsibility (CSR) Award 2006 for
their significant contributions to CSR and philanthropic activities.
SWOT Analysis
According to the executive opinion we have analyzed the SWOT of the company. According
to a executive of GP theirStrength: Call rate superiority (at present situation.) & network system
Weakness: poor customer service & late response to competitors offer.
Opportunity: great opportunity to expand market by present network
system which adopt the Wi-Max technology.
Threat: other potential GSM network like Warid(NGN)
CITYCELL
Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of
Bangladesh. It is the only CDMA (Code division multiple access) network operator in the
country. As of 1st March, 2008, Citycells total mobile subscriber base is 1.56 million, up 137
per cent or 680,000 from two years ago, giving it the best growth rate of the company till
date. Citycell is currently owned by Singtel with 45% stake and the rest 55% owned by
Pacific Group and Far East Telecom.
In 1989 Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular,
paging, and other wireless communication networks. Then in 1990 Hutchison Bangladesh
Telecom Limited (HBTL) was incorporated in Bangladesh as a joint venture between BTL and
Hutchison Telecommunications (Bangladesh) Limited. HBTL began commercial operation in
Dhaka using the AMPS mobile technology in 1993 and became the 1st cellular operator in
South Asia[2]. Later that year Pacific Motors bought 50% of BTL. By 1996 HBTL was
renamed as Pacific Bangladesh Telecom Limited (PBTL) and launched the brand name
Citycell Digital to market its cellular products. Michel Seymour is the present CEO of
Citycell
Hawaii, Ericsson & Motorola provides technological support to Citycell. The tower range of
Citycell exists to 5-6 km. in case sometime it varies to about 9 km.(Max.) The technology
used by Citycell is CDMA1X(Code division multiple access). Citycell is consolidating its
position in wireless data by launching their Zoom EV-DO (evaluation data optimize) for the
broadband wireless internet service.
Although CDMA1X technology is the latest technology citycell could not not flourishing the
companies market position although it was the first company to launch Mobile cellular
phones. Executive opinion abut this is that the failure of the policy maker to take right
decision in right time is the main cause . But he also appreciated the policies of present CEO
of citycell for capturing the market position. He also thinks that the countries most Mobile
companies are GSM, so they may induce the GSM union to capture the market.
Products Offered

Citycell offers prepaid, postpaid and fixed phone plans. Since Citycell operates in CDMA,
RIMs are usually sold with a phone mostly cheap Chinese sets produced by ZTE, Huawei,
Samsung, Motorola and Alcatel. Citycell currently has the cheapest phone+connection tariff
at 1399 taka.
Customer Care Center

There are 6 Customer care centers of Citycell in the country. One for each division and there
are another 500 Customer care Points scattered around the country
Performance

World operator rank by connections : 258th

Market Share : 4.5%
Market Penetration : 1.1%
[*Data Q2 2008]
CSR(Corporate social responsibility):

Citycell focuses its CSR on the field of followings:

It contributes its responsibilities toward countries education, anti-drug & health
sector.
2.
Beautification of the city towns.
3.
It is the official sponsor Bangladesh Football federation.
SWOT analysis:
According to the executive opinion we have analyzed the SWOT of the company. According
to a executive of GP theirStrength: Digital technology CDMA1X. And network coverage (92% of
total population).
Weakness: Failing of making consciousness to the people about CDMA1X
technology.
Opportunity: Broadband wireless technology of EV-DO (evaluation data
optimize). And up coming technologies are supportable to the
present technology.
Threat: GSM technology where people habited with the change of
Handset.
WARID
Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh. Warid is
the sixth mobile phone carrier to enter the Bangladesh market. It is currently struggling but
is trying to find a way out.
Warid officially launched their commercial services in Bangladesh on the May 10, 2007 with
a GSM Mobile Cellular network covering 64 districts of the country and encompassing 70%
of the mobile phone using population- the single largest launch the country has ever seen.
In December 2005, Warid Telecom International LLC paid $50 million dollars(US) to obtain a
GSM license from the BTRC and became the sixth mobile phone operator in Bangladesh.
In a press conference on August 17, 2006, Warid announced that his network would be
activated two months ahead of schedule, in October, 2006. Again in October, 2006 Warid
Telecom put off the launch of its cellphone services in Bangladesh until April, 2007 after its
major supplier Nokia walked out on an agreement over a payment dispute. The present CEO
of WARID Mr. Munir Farooqui.

Products Offered
1.

Warid provides both post-paid and pre-paid connection plans. The post-paid plan is branded
and marketed across the country under the name Zahi Post-paid, which means leader or
royalty. The pre-paid segment is branded and marketed as Zem Pre-Paid.
The Zem Prepaid category is divided into four segments:
Zem (24 hours)
Zem 1 Sec
Zem Fun
Zem FnF
The Zahi Postpaid category is divided into three segments:
Zahi Royal
Zahi extra
Zahi-Post-paid and Zem Pre-paid user enjoy various value added services(VAS), such as
SMS, MMS, GPRS, 64K SIM, Dual SIM product, Corporate packages for product advertising
via SMS, and a host of other features. However, International Roaming is available only to
Zahi (post-paid) users.
Customer Care Centers and Franchises
Warid Telecom Franchise.
Warid has ten customer care centers around the country located at key locations. These
centers are directly run by Warid itself. Warid has another 120 franchises spread across
Bangladesh, the largest chain of retail outlets in the country, which is further backed up by a
chain of sub-franchises, affinity partners & distributors.
SIM Cards, Scratch Cards and sometimes mobile sets are sold at these outlets. Bill collection
for post paid users and Zem top up for pre-paid users can also be availed at the franchises.
These franchises directly appoint dealers and sub-dealers in their designated areas.
SWOT Analysis
According to the executive opinion we have analyzed the SWOT of the company. According
to a executive of GP theirStrength: Customer service & NGN network.
Weakness: Product design & product marketing.
Opportunity: Adopting Wi-Max which will definitely supported by the
3G(NGN) network.
Threat: Other potential competitors.
Teletalk
Teletalk Bangladesh Limited is a public limited company, registered under the Registrar of
the Joint stock companies of Bangladesh. Total shares owned by the Government of the
Peoples Republic of Bangladesh.
We continue to grow and engage our customers through our clear commitment to offering
high quality products and services as well as leading customer retention and loyalty
programmers. Teletalk continues to be a part of the revolution thats connecting millions of
Bangladeshi people and around the world.
Teletalk Bangladesh limited was established keeping a specific role in mind. Teletalk has
forged ahead and strengthened its path over the years and achieved some feats truly to be
proud of, as the only Bangladeshi mobile operator and the only operator with 100% native
technical and engineering human resource base, Teletalk thrives to become the true

peoples phone Amader Phone.

Product offered:
Teletalk offers an array of different packages. In addition to offering the fundamental prepaid and post-paid mobile services, it offers a wide range of value added products and
services such as, SMS, GPRS, mobile data services, infotainment services, SMS banking,
Caller Ring Back Tone, Ringtones download, Picture Messaging, MMS, Voice Greetings.
The pre-paid packages are Standard
Shapla (Pre-paid)
Shadheen
And the post-paid packages are Standard (rajanigandha)
Shapla (Post-paid)
Teletalk Customer Care Point(CCP)
Teletalk has established their customer care point only in the divisional cities and the big
citied only. In their CCPs they provides free services to their customer and also sells the
mobile hand sets, and mobile accessories.
SWOT Analysis
According to the executive opinion we have analyzed the SWOT of the company. According
to a executive of GP theirStrength: Govt. owned public ltd. Co. & they use the frequency of BTCL
Which is covered all around the country.
Weakness: Poor customer service & bad product design.
Opportunity: great opportunity to expand market by present network
system which adopt the Wi-Max technology.
Threat: other potential GSM companies.
v Forecast about telecommunication market in Bangladesh:
Over the last two to three years, the number of mobile subscribers in Bangladesh has been
more than or close to more than doubling on an annual basis. By end-2007, the subscriber
base had reached 34 million and was continuing to grow at an annual rate of around 60%.
With the momentum that has been developed on the back of the governments deregulation
process, the strong growth seemed likely to continue.
IEMRs Mobile Forecast on Bangladesh provides over 65 operational and financial metrics for
the Bangladesh wireless market. We cover quarterly historical data starting in 1Q2004 and
ending in 1Q2008. We also provide four-year forecasts at the operator level going out to
2010. Operators covered for Bangladesh include: Bangalink/Sheba (Orascom Tel),
GrameenPhone (Telenor), TM Intl (Telekom Malaysia), PBTL (SingTel), and Warid BTTB. Our
Mobile Forecasts are updated quarterly and are available for one-time delivery or through
regular updates. Notable highlights of the 3Q08 Bangladesh Mobile Forecast include:
1) Total subscribers in Bangladesh will increase from the projected 46.9 million in 2008 to
58.2 million in 2010. We, therefore, forecast that the level of wireless penetration will
increase steadily in Bangladesh from our projected 29.0% in 2008 to 34.7% in 2010.
2) The level of competition in the wireless market will continue to increase, and the HHI
index will go down from 0.298 in 2008 to 0.285 in 2010. The three largest operators in the

country (Bangalink/Sheba, GrameenPhone, and TM International) will be losing market

shares to Warid.
3) The largest operator in the country will continue to be GrameenPhone (Telenor), but its
market share (by subscribers) will decrease from 45.0% to 42.9% in the forecast period,
2008 ? 2010.
In the figure below BMI (business monitor international) had forecasted a rapid growth and
average y-o-y growth of 56% per year between year 2007 and 2011.
Market penetration should be reached by 50% by the end of 2009 and can be increased by
75% during the forecasted period. So, according to the forecast, by the year 2011, mobile
subscribers will be 115millions. That sounds like a great potential market. (ibid)
The reality is close to the forecast. According to BTRC, The total number of Mobile Phone
Subscribers has reached 32.33 million at the end of October 2007, when BMIs expectation
was about 35 millions. Mr. Manzurul Alam, Chairman BTRC while answering a question, has
given the latest information. As of April 2008, the total number of mobile phone subscribers
stands at 40.34 millions. And the average growth rate falls in the range of 1 million
subscribers per month.
Figure: BMI forecast
v Brief about PSTN Operators in Bangladesh:
Beside the six mobile telecommunication companies there are twelve PSTN (public switched
telephone network) companies in Bangladesh. Among these BTTB was only govt. owed
company, which has been converted into Public Ltd. Co. in august this year and now it is
working as a name BTCL (Bangladesh Telecommunication Company Ltd.). Accept BTCL all
other PSTN use wireless system CDMA (Code division multiple access) technology. The raise
of private PSTN companies made the market of PSTN in the country very competitive. Now
the call rate of PSTN has been reduced than the previous rate.
Here the list of PSTN subscribers of the country is shown in a figure with their customer size
bellow:
Operators

Subscribers
Subscribers
Subscribers
December 2007September 2008 October2008

BTTB

872.409

872.409

873.265

Ranks Telecom Ltd.

112.560

148.173

149.495

Telebarta Ltd.

55.809

56.424

56.424

Jalalabad Telecom Ltd.

3.948

4.949

5.110

Onetel Communication
Ltd.

30.126

38.364

38.529

National Telecom Ltd.

17.521

48.467

51.496

Peoples Telecom Ltd.

32.961

46.211

53.085

Westec Ltd.

17.400

17.000

17.000

Dhaka Telephone Co.

Ltd.

27.793

58.074

59.436

Sheba Phone Ltd. (ISL)

8.232

10.018

9.930

S.A Telecom System Ltd. 8.134

14.372

14.804

Banglaphone

0.026

0.026

0.026

Total

1,186.919

1,314.487

1,328.600

*Subscribers in Thousands Source: BRTC

v CONCLUSION
The buyer is powerful in the industry, but since the market is growing largely, it will be easy
for the company to hold its own share, because of poverty, the population will be unlikely to
avail the switching cost. And this also reduces the risk of high availability of substitutes.
The supplier is not powerful in this case which is a plus for the company and the company
can play with the price to keep the production cost low. Since the market is yet to be
matured and growing very fast, we assume that the suppliers companies are also
increasing. Some multinational companies are showing their interest to enter into the
market. This can lead some new suppliers to arrive into the market and make the
environment more competitive. So at some stage the bargaining power of the suppliers will
become very low.
So from the above discussion, it can be said that the Bangladesh telecom market has a lot
of potential to offer considering strategically ignorable or somehow alterable threats. The
market looks very potential and prospective. Lots of opportunities are waiting.
Bangladesh has cheap skilled and willing to be skilled labor. Communication infrastructure is
in good condition and has the ability to serve the international entrants. Customer demand
for telecom product is very high due to the high growth rate of the market. As the industry
is becoming bigger, availability of supporting industries are increasing and already there are
lots of supporting companies in the market. And finally the government policies are very
welcoming and liberal.
From the above discussion we can comment that the mobile telecommunication of
Bangladesh is very competitive & the rivals are facing huge competition in the market.
Therefore we observe that the mobile companies are changing their strategies day to day to
survive in the market. So it will be difficult for any new company to enter in this market. But
we can simply say that the mobile telecom market of Bangladesh is a well balanced & fully
competitive.