Competitive Analysis

on Mobile Phone
Operator Industry
The study has many dimensions and covers a broad spectrum. The subject matter of the study
includes the analysis of the mobile phone operators market and competitive positioning with
service comparison

3/23/2017
 Submitted By
Group 002
MIS-7th Batch, MBA (2nd Semester)
07-008 Rajon Hossain
07-009 Mohiuddin Shawon
07-011 Tapas Saha
07-030 Tareq Hossain
07-039 Ishtiaque Rahman
07-040 Jahangir Alam
07-046 Abdul Latif
07-051 Abdul Jalil
07-053 Bayezid Hossain
07-069 Badhon Mondal

Submitted To
Dr. MD. Hasibur Rashid
Professor
Department of Management Information Systems
Faculty of Business Studies
University of Dhaka.

i
 LETTER OF TRANSMITTAL
Date: March 23, 2017

Dr. MD. Hasibur Rashid

Professor

Department of Management Information Systems

University of Dhaka

Subject: Submission of Term paper entitled Competitive Analysis on Mobile Phone

Operator Industry

Sir,

It is a great pleasure and privilege to present the term paper entitled Competitive Analysis on
Mobile Phone Operator Industry for consideration by the course Networking-
Telecommunication, Corporate and Social (MIS-520).

We can confirm that this work is original and has not been published elsewhere nor it is currently
under consideration for publication elsewhere.

In this paper, we represent the competitive analysis, market analysis and service differentiation with
a description of overall mobile operators industries.

Thank you for entrusting us with the task and considering us for this topic.

Sincerely

Group-002

MIS-7th Batch, MBA (2nd Semester)

Department of Management Information Systems

Faculty of Business Studies

University of Dhaka

ii
 EXECUTIVE SUMMARY

Bangladesh is, in many ways, a country ahead of its time in terms mobile access. Despite being
ranked as a low income country, over 50% of the population subscribes to mobile services and
has outpaced all its peers in terms of network coverage. Most popular Bangladeshi mobile
operators are GrameenPhone, Banglalink, TeleTalk, Airtel, Citycell and Robi. Every operator has
different service, network capacity, infrastructure and calling price etc.

The total number of Mobile Phone subscriptions has reached 131.956 million at the end of
January 2016. Among Six mobile operator companies, Grammenphone holds most of the market
share. GP covers almost 43% of total markets in terms of subscribers. Whereas Banglalink holds
almost 24%, Robi holds 21% and Airtel holds 8%. Teletalk holds only 3% in terms of total
subscribers. Citycell lost its market and its subscriber base has fallen. Now the company has only
1% of the total market and struggling to survive into the market.

Mobile network operators are looking to innovative value- added services (VAS) to remain
competitive and respond to the slowing growth in core mobile services. Grameenphone is a GSM
(global system of mobile communication)-based cellular operator in Bangladesh. Grameenphone
provides Internet service in its coverage area. As it has EDGE/GPRS/3G enabled network.
Grameenphone enjoys the first mover competitive advantage to offer EDGE and 3G services to
its subscribers. Banglalink is the second largest cellular service provider in Bangladesh. Banglalink
& Robi are the market challenger whereas Airtel & Teletalk are the market followers. Teletalk is the
market nicher. Citycell was shut down and struggling. It also fell into the market nichers category. As
the market for mobile operators expanded, the number of competitors expanded as well and each
trying to capture a particular market segment of their service. It is unlikely that the mobile industry
will ever develop into pure competition, since the trend is toward specialized products and not
toward a generic operation and service. Therefore this term paper represents the competitive analysis,
market analysis and service differentiation with a description of overall mobile operators industries.

iii
 Table of Contents
LETTER OF TRANSMITTAL .................................................................................................. ii
EXECUTIVE SUMMARY ....................................................................................................... iii
1 INTRODUCTION ............................................................................................................... 1
1.1 Background of the Study ............................................................................................... 1
1.2 Scope of the Study ........................................................................................................ 1
1.3 Objectives of the Study ................................................................................................. 2
1.4 Limitation of the Study ................................................................................................. 2
2 MOBILE PHONE OPERATOR .......................................................................................... 3
2.1 Origin of Mobile Phone Operators in Bangladesh.......................................................... 4
2.2 Mobile Phone Operator in Bangladesh .......................................................................... 5
2.3 Grameen Phone Limited (GP) ....................................................................................... 7
Mission: .............................................................................................................................. 7
Vision: ................................................................................................................................

7
2.3.1 Network infrastructure ........................................................................................... 7
2.3.2 Services: ................................................................................................................ 8
2.4 Banglalink Digital Communications Limited ................................................................ 8
2.4.1 Subscriber Base ..................................................................................................... 8
Mission: .............................................................................................................................. 8
Vision: ................................................................................................................................

8
2.4.2 Network Infrastructure ........................................................................................... 9
2.5 Teletalk Bangladesh Limited ......................................................................................... 9
Mission: ............................................................................................................................ 10
Vision: ..............................................................................................................................

10
2.5.1 Subscribers Base: .................................................................................................10
2.5.2 Services: ..............................................................................................................10
2.6 Robi Axiata Limited.................................................................................................... 10
2.6.1 Network infrastructure: ........................................................................................ 11
2.6.2 Services: .............................................................................................................. 11
2.7 Airtel Bangladesh........................................................................................................ 11
2.7.1 Services: .............................................................................................................. 11
2.7.2 Subscribers base: ................................................................................................12

iv
2.8 Pacific Bangladesh Telecom Limited (Citycell)........................................................... 12
2.8.1 Network Infrastructure ......................................................................................... 12
2.8.2 Subscribers base: ................................................................................................ 13
2.9 Bangladesh Telecom Network Topology ..................................................................... 13
3MARKET SHARE ANALYSIS OF MOBILE OPERATOR COMPANIES ...................... 14
3.1 Company Coverage of Market..................................................................................... 14
3.2 Designing Competitive Strategies ............................................................................... 14
3.2.1 Market-leader....................................................................................................... 14
3.2.2 Market-challenger ................................................................................................ 15
3.2.3 Market-follower ................................................................................................... 15
3.2.4 Market-Nicher ..................................................................................................... 15
3.3 Mobile Operators Strategy for Market Positioning ..................................................... 16
3.3.1 Engaging the People ............................................................................................ 16
3.3.2 Ensuring Technological Advancement ................................................................. 16
3.3.3 Providing identical Services ................................................................................. 17
3.3.4 Resulting Digital Revolution ................................................................................ 17
4COMPETITIVE ANALYSIS ............................................................................................ 18
4.1 Mobile Technology Effect on Competitive Advantage ................................................ 18
4.1.1Bangladesh telecommunication bring mobile data revolution via 3G/3.5G ........... 18
4.2 Evaluation of Competitive Factor ................................................................................ 19
4.3 Balancing Customer and Competitor Orientations ....................................................... 19
4.4 The forces of competition: .......................................................................................... 20
4.4.1 Threats of entry .................................................................................................... 21
4.4.2 Bargaining power of buyer ................................................................................... 21
4.4.3 Bargaining power of supplier ............................................................................... 21
4.4.4 Threat of Substitute .............................................................................................. 21
4.4.5Rivalry among existing competitor ....................................................................... 22
4.5 Mobile Operators Industry Analysis (BCG Model)...................................................... 22
4.5.1 Star: ..................................................................................................................... 22
4.5.2 Cash cow: ............................................................................................................ 23
4.5.3 Question mark: .................................................................................................... 23
4.5.4 Dog: ..................................................................................................................... 23
4.6 Key success factor (KSF): ........................................................................................... 23

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 4.6.1 The boundaries of the industry .............................................................................24
4.6.2The structure of the industry................................................................................. 24
4.6.3 Factors condition: ................................................................................................24
4.6.4 Demand condition: ...............................................................................................25
4.6.5 Availability of related and supporting industries: ................................................. 25
4.6.6 Nature of rivalry: .................................................................................................25
4.6.7 Government policies: ...........................................................................................25
4.7 SWOT Analysis of Mobile Operators Companies .......................................................26
4.7.1 Potential Internal Strengths: .................................................................................26
4.7.2 Potential Internal Weaknesses: .............................................................................28
4.7.3 Potential External Opportunities: .........................................................................30
4.7.4 Potential External Threats: ...................................................................................31
5SERVICES OFFERED BY MOBILE OPERATORS ........................................................ 32
5.1 Services offered GrameenPhone ..................................................................................33
5.2 Services offered by Banglalink ....................................................................................33
5.3 Services offered by Airtel............................................................................................ 34
5.4 Services offered by Robi .............................................................................................35
5.5 Services offered by TeleTalk .......................................................................................36
5.6 Services offered by Citycell ........................................................................................36
6 Findings, Recommendation and Conclusion ......................................................................38
6.1 Major Findings: ..........................................................................................................38
6.2 Recommendation: .......................................................................................................38
6.3 Conclusion ..................................................................................................................39
7 Bibliography .....................................................................................................................41

vi
 1 INTRODUCTION

1.1 Background of the Study

In Bangladesh cell phone business is very profitable. Day by day cell phone user is increases.
Firstly, City cell started this business in our country. Now In cell phone industry there are six
companies available these are - GrameenPhone, Robi, Airtel City Cell, Banglalink, and Tele talk
and all those companies objectives are to serve the subscribers and gaining profit. By serving
good network coverage they try to gain good reputation among the subscribers.

Every company always tries to increase their user. For increasing user every company offer
various attractive package. Now-a-days mobile communication is a most used and popular
communication system for man. Wireless and mobile communication systems have growth
highly within last few years. Still these technologies have a huge market potential. Mobile phone
markets are one of the most turbulent market environments today due to increased competition
and change. Thus it is of growing concern to look at consumer buying decision process and cast
light on the factors that finally determine consumer choices between different mobile operators.
On this basis, this report deals with consumers choice criteria in mobile operators markets by
studying factors that influence intention to get an overview of mobile operator market, analysis
of market, competition and services.

1.2 Scope of the Study

Mobile phone operators have become a part and parcel of telecom industry. The study has many
dimensions and covers a broad spectrum. The subject matter of the study includes the analysis of
the mobile operators market and competitive positioning with service comparison. If a larger
time period was covered then a more comprehensive understanding of the study wouldve been
possible.

The Report describes the Services of Grameen Phone, Robi, City Cell, Banglalink, and Tele talk
and recently marged with Robi also come as a Airtel and also investigates the perceptions of the
Customers towards the Services and other Operational Activities performed by the mobile
companies and their effects on the Satisfaction of the Customers. The scope of the report is to get

1
an overview of each and every mobile phone operator companies, their market analysis, sevices
and competitive position.

1.3 Objectives of the Study

To gather knowledge about the origin, operation and services of mobile phone operators
in Bangladesh.

To be aware of industry and market share analysis of mobile operator companies.

To learn about the competitive positioning, competitive success factors and strategic
positioning of the mobile operator companies through competitive analysis

1.4 Limitation of the Study

Limitation of time: We had a little opportunity to spend enough time to prepare this type of big
report within a short period of time. For this reason we have to hurry for complete this report
within the time.

Incomplete information: In collecting many data, we got incomplete answer from the source.
That also hampers our work done correctly and in time. We also found some misleading
responses.

Short experience: We are in learning stage and have little experience for reporting on such a big
project. We tried heart and soul to prepare the report professionally.

2
 2 MOBILE PHONE OPERATOR

A mobile phone operator is a telephone company that provides services for mobile phone users.
The operator gives a SIM card to the customer who inserts it into the mobile phone to gain
access to the service.

The world's largest individual mobile operator by subscribers is China Mobile with over 500
million mobile phone subscribers. Over 50 mobile operators have over 10 million subscribers
each, and over 150 mobile operators had at least one million subscribers by the end of 2009. In
February 2010, there were 4.6 billion mobile phone subscribers, a number that is estimated to
grow. Total mobilecellular subscriptions reached almost 6 billion by end 2011, corresponding to
a global penetration of 86%. There are two types of mobile phone operator:

Mobile Network Operator (MNO):

A mobile network operator (MNO) which owns the underlying network and spectrum assets
required to run the service. A mobile network operator or MNO, also known as a wireless service
provider, wireless carrier, cellular company, or mobile network carrier, is a provider of services
wireless communications that owns or controls all the elements necessary to sell and deliver
services to an end user including radio spectrum allocation, wireless network infrastructure, back
haul infrastructure, billing, customer care, provisioning computer systems and marketing and
repair organizations.

Mobile Virtual Network Operator (MVNO):

A mobile virtual network operator (MVNO) which buys wholesale service from an MNO and
sells on to its own customers. A mobile virtual network operator (MVNO), or mobile other
licensed operator (MOLO), is a wireless communications services provider that does not own the
wireless network infrastructure over which the MVNO provides services to its customers. An
MVNO may use its own customer service, billing support systems, marketing, and sales
personnel. (AT Capital Research, 2010)

3
2.1 Origin of Mobile Phone Operators in Bangladesh

The liberalization of Bangladesh's telecommunications sector began with small steps in 1989
with the issuance of a license to a private operator for the provision of cellular mobile services to
compete with Bangladesh Telegraph and Telephone Board (BTTB), the previous monopoly
provider of telecommunications services within Bangladesh. Significant changes in the number
of fixed and mobile services deployed in Bangladesh occurred in the late 1990s and the numbers
of services in operation have subsequently grown exponentially in the past five years.

The landmarks in history of mobile operator industry are:

1979 : Reconstructed as Bangladesh
Telegraph and Telephone Board (BTTB)
with right to issue license for telecom and
wireless services.
1981 : Digital Telex Exchange
Bangladesh.
1983 : Automatic Digital ITX started
Dhaka.
1985 : Coinbox Telephone service
introduced in Bangladesh by BTTB.
1989 : GENTEX Telegraph messaging
service introduced in Bangladesh.
1989 : Bangladesh Rural Telecom Authority
got license to operate exchanges in 200
upazilla.
1989 : Sheba Telecom got license to operate
exchange is 199 upazilla.
1989 : Cellular mobile phone company
Pacific Bangladesh Telephone Limited and
Bangladesh Telecom got license.
1995 : Card Telephone service introduced in
Bangladesh by BTTB and TSS.
1995 : Regulatory power of BTTB
transferred to Ministry (MoPT).
1995 : 2nd and 3rd ITX installed in Dhaka.
1996 : GrameenPhone got cellular mobile
Telephone license.
1996 : Telecom Malaysia International
in
Bangladesh got cellular mobile license.
1998 : Telecom Policy.
in
2000 : Global Telecom Service (GTS) Telex
Exchange venture with British Teleco.
2001 : Telecommunication Act, to establish
Bangladesh Telecommunication Regulatory
Commission (BTRC).
2002 : ICT Policy.
2004 : Teletalk cellular mobile launched.
2005 : Egypt-based Orascom acquired
Sheba Telecom
2006 : NGN introduced in BTTB.
2008 : BTTB converted into Bangladesh
Telecommunications Company Limited
(BTCL) with 100% shares owned by
Government. The Submarine Cable Project
transformed into Bangladesh Submarine
Cable Company Limited (BSCCL)
2008 : Japanese NTT DoCoMo bought 30
percent stake in Robi
4
2009 : Bharti Airtel acquired 70 percent 2016 : CDMA operator CityCell shut down
stake in Warid Telecom
2009 : Internet Protocol Telephony Service 2016 : Robi, Airtel Bangladesh announce
Provider (IPTSP) Operators launched. merger completion
2010 : Robi rebranded to Robi Axiata 2017 : Robi-Airtel Bangladesh network
Limited integration reaches seventh region;
Banglalink investing USD100m in
2012 : 3G mobile service is introduced by expansion
state owned Teletalk in October.
2017 : LTE launch permission imminent,
2013 : 3G auction held for private 4G spectrum auction in four months says
companies regulator.

2014 : 64 districts covered with 3G by

Teletalk Grameenphone, Banglalink and
Robi

2.2 Mobile Phone Operator in Bangladesh

Up to 50% people of Bangladesh using Bangladeshi mobile operators for communication.

Already BTRC give permission to 6 Telecommunications company to giving services in
Bangladesh. Most popular Bangladeshi mobile operators are GrameenPhone, Banglalink,
TeleTalk, Airtel, Citycell and Robi. Every operator has different service, network capacity,
infrastructure and calling price etc. (Telcoma, 2016)

5
The total number of Mobile Phone subscriptions has reached 131.956 million at the end of
January 2016. The Mobile Phone subscribers are shown below:

Table 1: Subscriber of Mobile Operator

OPERATOR SUBSCRIBER (IN Percentage

MILLIONS)
Grameen Phone Ltd. (GP) 56.204 42.59%
Banglalink Digital Communications Limited 32.368 24.53%
Robi Axiata Limited (Robi) 27.795 21.06%
Airtel Bangladesh Limited (Airtel) 10.510 7.96%
Pacific Bangladesh Telecom Limited (Citycell) 0.867 0.66%
Teletalk Bangladesh Ltd. (Teletalk) 4.211 3.19%
Total 131.956

SUBSCRIBER (IN MILLIONS)

60
50
Title

40

30
Axis

20
10

0
Grameen Banglalink Robi Airtel Citycell Teletalk
Phone Bangladesh
SUBSCRIBER (IN MILLIONS) 51.549 31.145 26.283 7.716 1.276 3.89

Figure 1: Subscribers of mobile operators in Bangladesh

6
 2.3 Grameen Phone Limited (GP)

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

Bangladesh. It has started operations on March 26, 1997. With more than 54.5 million
subscribers and 46.3% subscriber market share (as of August 2016). Grameenphone is the largest
mobile phone operator in the country. It is a joint venture between Telenor and Grameen Telecom
Corporation, a non-profit sister concern of the microfinance organization and community
development bank Grameen Bank. Telenor, the largest telecommunications company in Norway,
owns a 55.8% share of Grameenphone, Grameen Telecom owns 34.2% and the remaining 10% is
publicly held. (GrameenPhone, 2015)

Mission: Leading the industry and exceed customer expectations by providing the best wireless
services, making life and business easier

Vision: We exist to help our customers get the full benefit of communications services in their
daily lives. We want to make it easy for customers to get what they want, when they want it.
We're here to help.

2.3.1 Network infrastructure

Grameenphone was the first company to introduce GSM technology in Bangladesh. It also
established the first 24-hour Call Center to support its subscribers. According to Grameenphone,
it has invested more than BDT 259 billion (USD 3.27 billion) to build the network infrastructure
since 1997. It invested over BDT 15 billion in 2014 alone.

Grameenphone has built the largest cellular network in the country with over 8,000 base stations.
As of presently, over 99 percent of the country's population is within the coverage area of the
Grameenphone network. The entire Grameenphone network is also GPRS/EDGE/3G enabled,
allowing access to dial-up quality speed Internet and data services from anywhere within the
coverage area. There are over 10 million GPRS/EDGE/3G users in the Grameenphone network.
GP has 3G network at most of the urban and sub-urban area. The tower range of GP exists 5-7
km.

7
2.3.2 Services:
GP provides first post-paid and pre-paid connection plans in Bangladesh. Also 3G service,
Internet packages, billpay, cellbazaar, online services and more.

2.4 Banglalink Digital Communications Limited

Banglalink is the second largest cellular service provider in Bangladesh after Grameenphone.
Banglalink is one of the largest cellular service providers in Bangladesh. Banglalink Digital
Communications Ltd. (previously Orascom Telecom Bangladesh Ltd.) is fully owned by
Telecom Ventures Ltd. (previously Orascom Telecom Ventures Ltd.) of Malta, which is a 100%
owned subsidiary of global telecom holding. Following business combination, in April 2011,
between Vimpelcom Ltd. and Wind Telecom S.P.A, Vimpelcom owns 51.92% shares of global
telecom holding. (Banglalink Digital Communications Limited, 2015)

2.4.1 Subscriber Base

As of September 2015, Banglalink had a subscriber base of 32.61 million with 24.81% market
share. It is a wholly owned subsidiary of Telecom Ventures Ltd. of Malta which is owned by
Global Telecom Holding.

Banglalink had 1.03 million connections until December 2005. The number of Banglalink users
increased by 257 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. On 20
August 2008, Banglalink got past the landmark of a 10 million subscriber base.

Mission: Banglalink understands customer needs best and will create and deliver appropriate
communication services to improve peoples lives and make them easier.

Vision: Our customers' needs matter most to us- making their life simple and improving it is all
we want. Banglalink demonstrate the following values in their day-to-day activities to ensure
making a difference in every area of operations.

8
2.4.2 Network Infrastructure
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.

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.

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.

2.5 Teletalk Bangladesh Limited

Teletalk Bangladesh Ltd is a GSM based state-owned mobile phone company in Bangladesh.
Teletalk started operating on 29 December 2004. It is a Public Limited Company of Bangladesh
Government, the state-owned telephone operator. TeleTalk provide GPRS and EDGE internet
connectivity and now waiting for the license from Government to start the 3G which is the latest
cellular information service. Teletalk is the first operator in the country that gave BTTB (now
BTCL) incoming facility to its subscribers. TeleTalk is the 6th largest mobile phone operator in
Bangladesh with 1.147 million subscribers as up to July, 2010

When TeleTalk first came into operation it brought in a hope among the people. The mission
statement of TeleTalk is "Desher Taka Deshey Rakhun" (Keep your money in your country) but
ultimately it could not retain its customers' expectation with a weak network service in this
highly competitive market. Russia's AFK Sistema and UAE-based telecom operator Etisalat
showed interest to buy stakes in the state-run TeleTalk. Recently Vietnam's Viettel also wanted to
invest $250 million in TeleTalk. (Teletalk Bangladesh Ltd., 2015)

9
Mission: The mission statement of TeleTalk is "Desher Taka Deshey Rakhun" (Keep your
money in your country). To innovate and constantly find new ways to enhance services to
customers current needs and desires for the future.

Vision: Their vision is to know customers in every spheres and meet their needs better than
anyone else to provide mobile telephone service to the people from the public sector and to
create a new source of revenue for the government.

2.5.1 Subscribers Base:

Teletalk subscribers increase from 1.26 million customers in 2012, up to 3.823 million in January
2015. TeleTalk had 4.211 million subscribers as up to January, 2016 which shows the growth rate
of subscribers is hardly increasing in recent years.

2.5.2 Services:
Teletalk 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.

2.6 Robi Axiata Limited

Robi Axiata Limited, DBA Robi is the second largest mobile network operator of Bangladesh. It
is a joint venture between Axiata Group Berhad, of Malaysia, Bharti Airtel Limited, of India and
NTT DoCoMo Inc., of Japan. Axiata holds 68.7% controlling stake in the entity, Bharti holds
25% while the remaining 6.3% is held by NTT DOCOMO of Japan.

The first merger of Bangladeshs telecom sector has come into effect with the beginning of the
operation of Robi Axiata Limited as the merged company on November 16, 2016. Following the
merger of Robi and airtel, the merged company is now known as Robi Axiata Limited. Having
successfully completed the merger process, Robi has emerged as the second largest mobile phone
operator in Bangladesh. (Robi Axiata Limited , 2015)

10
2.6.1 Network infrastructure:
The merged company has nationwide network coverage. Robi Axiata has spectrum on GSM 900,
1800 and 2100 MHz bands. Robi has got the widest international roaming coverage among all
the operators in Bangladesh.

2.6.2 Services:
Robi 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, EDGE, 3.5G HSPA+, international roaming, Mobile Banking, SMS banking, Caller
Ring Back Tone, MMS, Voice Greetings, Welcome Tunes etc. Robi has 32 Walk in Centers
(WIC) and 1 SSD (Sales and Support Desk) at Dhaka International Airport. The customer care
also can be found through many locals and cities in Bangladesh.

2.7 Airtel Bangladesh

Airtel in Bangladesh is currently an independent product brand of Robi Axiata, since Robi Axiata
Limited is the Licensee of 'airtel' Brand in Bangladesh. The brand came under the control of
Robi Axiata after Airtel Bangladesh Limited was successfully merged into Robi Axiata Limited
on 16 November 2016. Previously Warid was launched on May 10, 2007 and Airtel was on
December 2, 2010.Axiata holds 68.7% controlling stake in the entity, Bharti holds 25% while the
remaining 6.3% is held by NTT Docomo of Japan.

The airtel brand in Bangladesh was formerly owned by Airtel Bangladesh Ltd., previously
known as Warid Telecom which was a GSM and 3G based mobile operator. Warid was the sixth
mobile operator to enter the Bangladesh market and originally launched commercial operations
under the brand name 'Warid' on May 10, 2007. In 2010, Bharti Airtel bought out majority share
of the company. (Airtel Bangladesh Limited , 2016)

2.7.1 Services:
Airtel provides both post-paid and pre-paid connection plans. Its prepaid features the remarkable
Ajibon 1 Paisa offer. Airtel Postpaid and Airtel Prepaid users enjoy various value added services
(VAS), such as SMS, MMS, GPRS, "Smart SIM", International Roaming, Corporate packages

11
for product advertising via SMS etc. Despite offering the cheapest services, Airtel cannot
properly resolve customers' complaints about its network quality.

2.7.2 Subscribers base:

As of January 2016, Airtel had a subscriber base of 10.51 million with 7.96% market share.
Airtel provides customer service through Airtel Experience Centers (AECs) and Airtel
Relationship Centers (ARCs). AECs are directly run by Airtel itself.

2.8 Pacific Bangladesh Telecom Limited (Citycell)

Citycell (Pacific Bangladesh Telecom Limited) is the oldest mobile operator of Bangladesh. It is
the only mobile operator in the country using CDMA and EVDO technology. As of August 2016,
Citycell's total mobile subscriber base is 0.142 million. Citycell is currently owned by SingTel
(44.54%), Pacific Motors (37.95%) and Far East Telecom (17.51%). It is the smallest mobile
operator of Bangladesh in terms of subscribers.

2.8.1 Network Infrastructure

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 flourish the
companies market position although it was the first company to launch Mobile cellular phones.
Executive opinion about this is that the failure of the policy maker to take right decision in right
time is the main cause.

12
2.8.2 Subscribers base:
As of January 2016, Citycell had a subscriber base of 0.867 million with 0.66% market share.
The company loses its subscribers base and its operation was suspended and it is running at a
very small scales on its CDMA and EVDO services.

2.9 Bangladesh Telecom Network Topology

13
 3 MARKET SHARE ANALYSIS OF MOBILE OPERATOR
COMPANIES

3.1 Company Coverage of Market

Among Six mobile operator companies, Grammenphone holds most of the market share. GP
covers almost 43% of total markets in terms of subscribers. Whereas Banglalink holds almost
24%, Robi holds 21% and Airtel holds 8%. Teletalk holds only 3% in terms of total subscribers.
Citycell lost its market and its subscriber base has fallen. Now the company has only 1% of the
total market and struggling to survive into the market.

Mobile operator companies' market coverage

Citycell Teletalk
1% 3%
Airtel
8%

GrameenPhone
Robi 43% 21%

Banglalink
24%

3.2 Designing Competitive Strategies

Companies can be divided into market leaders, market challengers, market followers, and market
nichers depending on their share of the total market. Each position has its own strengths and
weaknesses and its own competitive advantages and disadvantages.

3.2.1 Market-leader
Grameen phone is the market leader in Bangladesh with 43% of the total market. Its not always
easy being number one. First, theres always someone trying to take place. Second, customers

14
like familiarity, but they also like change. Market leaders have to work hard to keep their image
fresh, to be perceived as up to date and relevant to contemporary consumers.

In recent years, Grameen Phone has seen its market share slip as competitors have chipped away
atparticular segments. In response, GP has devised a three-part strategy. It is going to try to
expandthe total market, defend its current market share, and find ways to increase its market
share. It will be your job to help GP achieve these goals.

3.2.2 Market-challenger

Banglalink & Robi, is a market challenger. Two of GPs competitors successfully enter the
handheld mobile communication market. At present, Banglalink has 24.53% of the market. The
market leader has 42% of the market (i.e. Market Leader). In the past has 20% of the total market
(i.e. Market Follower). The remaining 5% of the market is split between a numbers of smaller
firms offering inferior products at cut-rate prices.

3.2.3 Market-follower

Robi & Teletalk is plagued by market followers. Its managers are always complaining about how
they do all the work, only to find their best ideas copied by others. Some of these competitors are
worse than others. Some imitate Robis products but maintain their own distinct company
identity (Imitators). Others start with the products Teletalk develops and adapt them to fit
specific market niches (Adapters). However, there are companies that simply clone Robis
products, right down to the design of their packaging (Cloners). There are even companies that
duplicate and sell Banglalink products in Black Markets through disreputable outlets
(counterfeiter).

3.2.4 Market-Nicher

Teletalk and Airtel are the market nicher because they focused into specific market segment more
than other segment. City Cell is the scientific instruments company, CDMA technology, is a
master of niche marketing. Generally, the products it develops have no use outside of the niche

15
market but have tremendous value within the niche market. For example, it has a number of
products designed to be used in specific kinds of surgical procedures.

W-CDMA/GSM technology has been successful as a niche marketer because it is always on the
lookout for under-served or emerging niche markets. To this end, its marketers have developed a
network of contacts among its customers. W-CDMA technology keeps in constant
communication with these customers, asking them what their needs are, where they see room for
improvement in CDMA technologys products, and where they see their professions going in the
future. RIM succeeds not because it settles into a niche, but because it anticipates the next niche
market opportunity.

3.3 Mobile Operators Strategy for Market Positioning

Mobile operators basic strategy is coverage of both urban and rural areas. In contrast to the
island strategy followed by some companies, which involves connecting isolated islands of
urban coverage through transmission links, they builds continuous coverage, cell after cell.
While the intensity of coverage may vary from area to area depending on market conditions, the
basic strategy of cell-to-cell coverage is applied throughout mobile network. They have a dual
purpose to receive an economic return on its investments and to contribute to the economic
development of Bangladesh where telecommunications can play a critical role.

3.3.1 Engaging the People

The people who are making it happen the employees are young, dedicated and energetic. All
of them are well educated at home or abroad, with both sexes (genders) and minority groups in
Bangladesh being well represented. This sense of purpose gives them the dedication and the
drive, producing in about three years the biggest coverage and subscriber-base in the country.
Mobile operators knows that the talents and energy of its employees are critical to its operation
and treats them accordingly.

3.3.2 Ensuring Technological Advancement

Mobile operators Global System for Mobile or GSM/CDMA technology is the most widely
accepted digital system in the world, currently used by over 300 million people in our country.
GSM/CDMA brings the most advanced developments in cellular technology at a reasonable cost

16
by spurring severe competition among manufacturers and driving down the cost of equipment.
Thus consumers get the best for the least.

3.3.3 Providing identical Services

Mobile operators believes in service, a service that leads to good business and good
development. Telephony helps people work together, raising their productivity. This gain in
productivity is development, which in turn enables them to afford a telephone service, generating
a good business. Thus development and business go together.

3.3.4 Resulting Digital Revolution

By bringing electronic connectivity to rural Bangladesh, Mobile operators is delivering the
digital revolution to the doorsteps of the poor and unconnected. By being able to connect to
urban areas even to foreign countries, a whole new world of opportunity is opening up for the
villagers in Bangladesh. Mobile operators has been established to provide high-quality
GSM/CDMA cellular service at affordable prices. They have a dual purpose:

To receive an economic return on its investment

To contribute to the economic development of Bangladesh where telecommunications
can play a critical role

17
 4 COMPETITIVE ANALYSIS

4.1 Mobile Technology Effect on Competitive Advantage

Several characteristics of mobile technology make it an attractive option for narrowing the
digital divide. In fact, these characteristics help to deliver better quality services which create
competitive advantage for the operators companies. Following effects play a dominant role for
GP, Banglalink, Robi & Airtel to engage more customers through quality services.

Ability to overcome geographic barriers caused by rugged mountains, wet and swampy
ground,
Shorter payback period of mobile telecom projects compared to fixed line
projects. Lower installation costs than fixed phones.
Scalability (mobile phones can be deployed gradually as new customers are added simply
by adding antennae as needed).
Innovation in pricing such as pre-paid
cards. No requirement of electricity.
Lower social entry barriers than computer-based Internet.

4.1.1 Bangladesh telecommunication bring mobile data revolution via 3G/3.5G

In September, Bangladesh entered a new era in communications with the launch of third
generation (3G) mobile network service, which is expected to offer faster internet access for
millions of users. Information and communication technology experts and economists are
anticipating that the new service, to be offered by five cell phone providers, will open up new
business and job opportunities for the country's youth.

Margoob Chowdhury, a Bangladeshi who works for Singapore-based Research in Motion,

predicted "phenomenal" growth in certain sectors over coming years. Faster internet browsing
will facilitate all kinds of online businesses, he told Khabar South Asia. "The mobile app
development sector will grow phenomenally, as more subscribers will be downloading and using
the apps on their phones. During a September 8th auction of the 3G spectrum, four major private

18
operators. Grameenphone, Banglalink, Telecommunication sector and Airtel paid $525m to the
Bangladesh Telecommunication Regulatory Commission (BTRC) to secure licences.

Grameenphone bought 10 MHz, while Banglalink, Telecommunication sector and Airtel each
bought 5Mhz. State-owned operator Teletalk is already providing 3G services on an experimental
basis. Grameenphone, which covers 44% of the mobile market, launched Bangladesh's first 3G
networks on September 29th, with service to Chittagong and Dhaka. Now it is all over
Bangladesh.

4.2 Evaluation of Competitive Factor

Table 2: A Worksheet for Evaluating Competitors

Criteria GP Banglalink Robi Airtel TeleTalk Citycell

Marketing Skills Strong Strong Average Strong Average Weak

Target Population Strong Strong Strong Strong Average Weak
Financial Resources Strong Strong Average Average Average Average
Area of Network Strong Strong Strong Average Weak Weak
Advertising Skills Strong Strong Strong Strong Average Weak
R&D Skill Strong Average Average Average Average Average
Distribution Strong Strong Strong Average Weak Weak
Human Resources Strong Strong Strong Average Average Weak
Package Skills Strong Strong Strong Strong Weak Weak

4.3 Balancing Customer and Competitor Orientations

It is needed to add an understanding of competitors to our understanding of customers. In

practice, many companies focus on one or the other. Mobile operators of Bangladesh are mainly
customer centered but external competitor analysis of services, technology and market coverage
are also done to balance the competition enhancing customer satisfaction.

19
Analysis of customer - It requires three areas.

i. Who are the customer?

ii. What do they want?

iii. How customers do choose between competing companies?

Analysis of competition - To lead to market and financial success in an industry it is important

to center on delineating those factors related to the competition.

Competitor-centered companies tend to see the marketplace in terms of their competitors.

They define situations by the size, actions, and reactions of the competition.

Customer-centered companies tend to see the marketplace in terms of their customers. They
define situations by the size, segments, and preferences of the market.

Mobile operators of Bangladesh like GP, Banglalink, Robi, Airtel are more customers centered
than competitor centered. They balance between customer satisfaction and competition via better
market adaptation.

4.4 The forces of competition:

As the market for mobile operators expanded, the number of competitors expanded as well and
each trying to capture a particular market segment of their service. It is unlikely that the mobile
industry will ever develop into pure competition, since the trend is toward specialized products
and not toward a generic operation and service. Industries can also be described in terms of entry,
mobility, and exit barriers.

If entry barriers are high, then it is difficult and expensive to enter an industry. If mobility
barriers are high, it is difficult to move into more attractive market segments. If exit barriers are
high, then the difficulty of leaving an industry is an obstacle to companies wishing to pursue
entirely new markets. Cost structure also plays a role in defining industry competition.
Competition will tend to focus on the specific areas in an industry where it is possible to reduce
costs.

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4.4.1 Threats of entry
Though entry is not so tough, there are lots of threat to entry. Because it is difficult to cover the
network over the whole country. And without covering the network its not possible to compete.
Developing infrastructure requires huge investment and many years of time, which creates a
barrier for new entrant.

4.4.2 Bargaining power of buyer

Power of buyer is very vital thing to compete within the industry. Buyer has variety of options to
choose from. Since there are six mobile operators in Bangladesh, customers have huge variety of
services that increase the bargaining power. There is opportunity for buyers to select the best
company. Bangladesh buyers get the most priority in telecommunication industries.

4.4.3 Bargaining power of supplier

Here, supplier dominates a great deal of services. The bargaining power of suppliers in the
mobile industries varies depending on the brand name and strategic importance of the supplies as
well as the size of the company.

4.4.4 Threat of Substitute

Substitute is necessary to give backup in the position of difficulties. The substitutes that would
replace the products or services of today are strongly related to the factor of innovation.
21
Substitutes of Bangladesh mobile companies are PSTN operators, VOIP service, skype,google
talk,wimax and etc. So the threat of substitutes is week in Bangladesh

4.4.5 Rivalry among existing competitor

Rivalry is very high among the cell phone companies existed in the industry. Bangladesh has
already six giant mobile operator companies. They have created significant brand positioning and
economies of scale in network coverage.

Each company is trying to increase the market share by lowering call rate, superior network
coverage and better value added services. The competition has driven the industrys average
revenue per share to a very low level. Grameenphone is leading the industry and standing in an
advantages position than others. The rivalry among existing competitors is very high.

4.5 Mobile Operators Industry Analysis (BCG Model)

Star Question
Grameenphone mark
Banglalink
Robi
Cash Cow Dog

Airtel Teletalk
Citycell

4.5.1 Star:
Currently Grameenphone is in the first place of the telecommunication sector in Bangladesh. It
has the largest market share of Bangladesh telecommunication sector. Grameen phone capture its
market through providing the best network facilities which other existing companies cannot. And
as its a first mover in market with GSM (Global System Modulation) technology it has the first
mover advantage.

22
Although its call charge is slightly high compare to its competitors but stills its in the star
position because of its network facilities and of course the customer service.

4.5.2 Cash cow:

Banglalink and Robi is the follower of Grameen phone in terms of number of customer and the
quality of their services and also they have vast customer service facilities all over the
Bangladesh. The bundle offers, customer service, customer care facilities, networking and
commitment to customers make them to gain second position in telecommunication sector of
Bangladesh. Robi, due to the recent promotional activities and network improvement, Robi is
able to gain sudden growth in their business.

4.5.3 Question mark:

Airtel can be placed into the Question mark category. In recent time they offer different packages
according to the customers demand which make the customer much easier to choose which one
they actually need. From the recent merge of robi and airtel, increases the companys overall
performance in terms of market coverage and services and so we can place it into question mark.

4.5.4 Dog:

Teletalk are products with low growth or market share. Citycell is the company that is struggling
to survive in telecommunication sector of Bangladesh. It has slow growth in market share as well
as its profitability. From all side like, network facilities, commitment to customers, number of
customers, customer service and the customer care facilities make them in the last position in
telecommunication sector in Bangladesh.

This company currently failed from all side to capture the market as well as retain their existing
customer. Because of their poor network system and customer service they currently lose their
customer which kicks out them from competition.

4.6 Key success factor (KSF):

The key success determines the requirement for successful participation in an industry. The key
successful factor required two interrelated activities:

23
4.6.1 The boundaries of the industry
Drawing the company industry boundaries is a vital first step analyzing the competition. An
industry is the growing place accompanied with companies that offer product to satisfy
customers needs. The boundaries of the cell phone industry are as follows.

Customer segment: Customer of the industry is growing day by day in consecutive way.
Bangladeshi people are eager to use cell phone. All most all kinds of people are enjoying this.
More than 10 million customers are available.

The technology in meeting customer need: The technology in the industry is very highly
used in efficient way. The modern and latest technologies are available in the industry.If we
consider the area for competition, it is the whole country. To compete in the industry it should be
against poor or vague of industry and boundaries.

4.6.2 The structure of the industry

Understanding the competition requires an appropriation of the industry structure. To get success
company strategy is influenced by this structure.

Barriers to entry and exit- As private company can enter, its easy to enter and do its job. But
its difficult to get license in the long run process of political process and developing the
network.

Level of product differentiation- Product is not very much different in this industry.

They are almost similar.

Level of concentration- the competitors concentration is also similar to get the more
subscribers. And in several situations the concentration is to keep the customer happy to be with
company.

Economic of scale and exist- To identify the structure of the industry it is very important to
know the economic status of the competitors. Their economic status is very strong to fight within
the area.

4.6.3 Factors condition:

The findings show that Bangladesh has a preferable factors condition. Availability of cheap and
highly competent skilled labor, good communication infrastructure, and low Tele density makes
24
the country preferable in this case. Even though the communication system is not very top class,
but new technologies are yet to be established and lot of foreign bidders are willing to buy it.
Foreign companies, who are already using these facilities, are getting benefited. This has been
reflected by the increasing market share gaining by the companies over time.

4.6.4 Demand condition:

Demand condition in the country seems to be very high. One million new subscribers each
month is a high rate of market growth which reflects the high customer demand. Even though per
capita income is very low, it could not create any obstacle in the growth of the market. It seems
like; communication has become a dire need among the society and people want to practice that
at a preferable cost. And availability of different substitutes has kept the price low.

4.6.5 Availability of related and supporting industries:

Findings have explored that the availability of related and supporting industries is great. Number
of giant multinational companies is providing telecom related support in the industry.

Smartphone companies are playing a vital role in developing the total infrastructure of
telecommunication in Bangladesh by training the willing to be trained labor and also brining the
latest technology within the country.

4.6.6 Nature of rivalry:

The social structure of the country might be able to have an effect on the management style. So it
seems like the management style of both of the country may differ in a lot ways.

And this can determine the nature of rivalry of the company within the market. It should be
mentioned that the social structure and also the climatic and topographical differences might
have some effect on the administrative or management style of the company.

4.6.7 Government policies:

It has already been discussed in the previous section about the government policies and
government interferences in strategy making of a company. But again it is worth mentionable

25
that, the research found that the government is not interfering much in the companys decision
making which seem to be intensifying the possibility of success of the company.

The table below is showing the summary of analysis of Key Success Factors at a glance-

Table 3: Analysis of Key Success Factors

Factors Conditions Notes

Factor conditions Good Cheap and skilled labor, Good
communication infrastructure, low Tele
density

Demand condition Very High 0.1 million new subscribers each month
Supporting industries Very mature Presence of huge mobile market
supporting industry

Government Policies Very liberal Easy licensing, Tax free time, less
interference

Customer segment Large customer base More than 10 million customers

The technology in New technologies 4G and IP based technology
meeting customer need

Barriers to entry and exit Very High Difficult to spread operation in whole
country

Level of product Differentiated Large number of customer oriented

differentiation product product

Level of concentration High Advertising and customer campaign

4.7 SWOT Analysis of Mobile Operators Companies

4.7.1 Potential Internal Strengths:

Strengths are those characteristics that enable a company to sell their product in to the Market as
a high rate and make the company well-known. Cell phone industries strengths are shown below.

High quality network service: Cell phone industries must have good network coverage
system because cell phone is a network coverage based industry. GP placed the most admire

26
position in the cell phone industry. This is the strength of GP. Though Robi and Bangla Link
network coverage system is not bad but every one chose first GP. They already prove their
network system every district and almost every upazilas under their network coverage system.
GPs main rival is Robi but Bangla Link also gains a position because their market growth is
very fast.

Good advertisement: Todays world every business is advertising based. And Cell
industries need full advertising support. Major emphasis is on TV advertisements as this is the
most popular Media available. 50% of the annual budget is dedicated to TV. And other budget
should provide for another media, as daily newspaper, bill board, neon sign, outside of bus,
leaflet etc. GP has in-house agency so it is the strength for GP. They allocated big budget for
advertising. In recent days GP lunch a new SIM which name is Djuice and for that SIM they
arrange live concert show TV advertisements, billboards, leaflet etc. Though Robi is GPs main
competitor but they can notserve that type of advertisement which already has done by GP. GP is
the sponsor of Bangladesh Cricket Board. In general sense it is one type of advertising. Bangla
Link also tries to do that type of advertisement and them also success by providing Ladies First
SIM advertisement. But GPsevery advertisement is popular which is providing by TV media.

Known as a quality brand: Well-known brand name is most important for any
company and also any cell phone industries. GP brand name is very popular for the cell phone
subscribers because it also known as village phone. Village people also like GP for that brand
name. Since Grameen bank is popular thats why Grameenphone also popular for all the people.
Though Teletalk is a brand name but it is not known to all, so it is a leakage for Teletalk on the
other hand for GP it is strength.

Good reputation among customer: Any cell phone industries must have good
reputation among the customers. Good reputation is a vital factor for the company. GP has good
reputation among the customer because for their network and service facilities. Though other
companies like Robi, CityCell, Bangla Link and Teletalk have reputation but they can not
provide satisfy on their subscribers mind because of their network coverage. CityCell has bad
reputation because of their CDMA network system. In GSM system GP is the best position in
Bangladesh.

27
 Skilled Human resources: Any cell phone company should have their greatest asset is
their dedicated employee. The Human Resource department should its main strength in
accumulating wealth. GP has skilled human resources. They only give the job to innovated
human for their betterment.

Product Diversification: To increase their strength Cell Phone Companies must have a
research department. GP is the best for product diversification because they provide several types
of SIM to minimize the risk. But Robi, CityCell cannot diversify their product.

Adjusting the current strategy and changing and adding new strategy: the
internal analysis and competitive analysis process provide insight into whether fine tuning or
more dramatic change is necessary for all cell phone company so Adjusting the current strategy
and changing and adding new strategy is very important strength for cell phone industries. GP
has strong management department they can easily adjust or change their strategy for their
betterment. But City cell has no strong management department thats why they cannot reach
their ultimate goal.

Country wide sales network: cell phone industries should have countrywide
Distribution Network. Without this network not only cell phone industry but also other industry
can not run their business. And GP has strong distribution network channel but City cell Tele talk
have no strong distribution channel thats why they can not gain popularity in the peoples mind.

4.7.2 Potential Internal Weaknesses:

Low quality network service: If Cell phone industries have no proper network service
then they will be disabling to get customer satisfaction. GP cannot cover every Upazillas so its a
weakness for GP but Robi, City cell, Bangle Link and Teletalk network service is not very bad.

Lack of advertising: Cell industries need full advertising support. So it is vital fact to
popular the package or product of the company. GP has in house agency but sometimes they
cannot make standard add other companies in our country like City cell, Banglalink etc also
follow theme of GP

28
 Weak Brand name: brand name is most important for any company and also any cell
phoneindustries. If any companies have weak brand name then it also will be hamper of the
business. CityCell, Teletalk cannot make strong brand name among customer mind. If any
company do not have good brand name then customer will not buy their product.

Bad reputation among customer: Any cell phone industries must have good
reputation among the customers. To create reputation on customer mind every must provide extra
facilities but GP and other companies cannot provide all facilities properly. Thats why bad
reputation occurs on customer mind. Tele talk, CityCell is the best example in our country.

Unskilled Human Resources: Unskilled employee is a burden of any company. Though

GP has skilled human resources, there are also some unskilled employees. They just cant do
their job properly according to the accommodation of full satisfaction of the company.

Lack of Product Diversification: If any company cannot diversify their product then
they cannot reach their destination. GP also diverse their product but not at the proper time so its
a weakness for the GP it also a weakness for Robi.

Lack of Adjust the current strategy and change or add new strategy: If the cell
phone companies strategies are not flexible to adjust and change or add the new strategy then
they cannot solve their present problem and ultimately unable to reach their goal. For the GP,
Robi its a problem.

Identify the companys competitors: There are some competitors existed in the
industry. If the company is unable to identify its competitors, it will become a weakness for the
company. GP has good forecasting ability to identify the competitors. GP can measure the
competitions. For that cause, GP offered djuice to compete with the competitors.

Lack of managerial depth and talent: Lack of managerial depth and talent is very
harmful for any company. As GP has lack of managerial depth, it lost some talents from the
organization those have gone to Bangla Link. Managerial department of GP is very strong. So,
there are many talents existing comparing with the others. Lack of managerial talent makes a
business failure because of their wrong decisions in the important situations.

Weak distribution network: if any company have not proper distribution network then
will unable to provide their product the entire customer.

29
4.7.3 Potential External Opportunities:

Huge Subscribers: We know that Bangladesh is highly populated country. Cell phone is
vital thing for quick communication. So, cell phone industry has good opportunity to use this
demand. GP has gained this opportunities by acquiring more than 50 lac subscribers where
second highest is less than 30 lac.

Enter new market or segments: Since people always demand more and more. Its the
opportunity to enter new market or segments. If the company offers any new product or service
preferable, the customers will get that to enjoy the modern facilities. Its a great news for GP that
GP is enjoying this opportunities through offering new services and products. Last revelatory
offer of GP is djuice that make the GP available in new segments.

Faster market growth: Faster market growth is very important for any cell phone
company. The fastest growth of cell phone industry is used in BanglaLink, but GP also
competing with the existing growth rate.

Loyal customer: Every company has some loyal customers. The loyal customer of GP is
very high. So, it is a great opportunity for GP if GP can keep them happy. In comparison of loyal
customer other companies are competing well.

Government support: The government is giving many facilities to the cell phone
industry to satisfy the people in using cell phone. GP is getting more facilities as its largest
company in Bangladesh. The network of railway optical fiber is used by GP. And the latest
exposing tax on SIM is let GP get some sorts of facilities intangibly.

Good will: Its very important for any kind of organization to compete with the
competitors. People know the name of GP as greatest and best cell phone company in
Bangladesh.

Low cost strategy: If a company can establish the network and everything properly for
the better service, the cost of the company can be reduced after that. Then they just expand for
the regulatory cost.

30
4.7.4 Potential External Threats:

Unsteady Political Situation: The unsteady political situation creates threat for
companys performance. But in comparison with others it is not so harmful for GP as much as
others. GP is not facing as it is an established company.

Competitors: Competitors are the greatest threat for any company and also Cell Phone
Company. In present days cell phone industry is very competitive. GP takes BanglaLink and
Robi as strong competitors. For that cause, GP always tries do better than them to keep running
before them.

Slower market growth: As the economic condition of the country is so good and
purchasing capacity is low, the market growth is also low here. GP is also facing same problem
but too much as GP has already more than 50 lac subscribers.

Changing buyer demand: Human being is always changing and demand also changing.
Since new competitors are entering the market and offering new product and services, the people
also demand more varieties of product. GP is competing with this threat well offering new
products and services according to the people demand.

Costly regulatory requirements: Though GP has established a strong network, its

difficult to maintain in efficient way to serve the best services.

Bad weather: Bad weather is very harmful for Cell Phone Company because it creates
barriers to serve the better network service.

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 5 SERVICES OFFERED BY MOBILE OPERATORS

Operators have a large footprint in the value added services space, with GP, Robi and Bangalink
most active. Most of this is concentrated in entertainment and social media, with a limited,
although growing; presence in commercial services targeting core life needs in banking,
agriculture and education amongst others. This is also reflected in our own tracker, with
Bangladesh having a relatively low number of active M4D services (roughly one per million
mobile subscribers) compared to its benchmarked peers.

However, these products and services are increasingly being led by operators. Market forces are
evidently at work operators have limited budgets both in investment and corporate finance,
and allocating these to M4D VAS is indicative of the perceived return opportunity. We believe
operators will continue to grow their position as the dominant players in M4D given weakening
subscriber growth, declining ARPU and a drive for revenue diversification coupled with
consumer demand for services adding value to livelihood, and rising mobile internet penetration.

32
5.1 Services offered GrameenPhone
GP offers a huge variety of services to the customers as a market leader in mobile operators in
Bangladesh. In addition to enjoying the services, the operators offers the following Value Added
Services* that are designed to meet customer needs.

/W-CDMA

5.2 Services offered by Banglalink

Banglalink currently offers two prepaid plans. All the prepaid plans come in two phases
Standard (T&T incoming and outgoing with nationwide dialing and ISD) and M2M. All
connections provide GPRS to subscribers. Currently there are three postpaid plans from
Banglalink for its tail customers. These packages are known as Enterprise Personal, which is a

33
subset of much larger Banglalink enterprise. All packages come with T&T local, nationwide
dialing, ISD and e-ISD connectivity.

5.3 Services offered by Airtel

Airtel provides both post-paid and pre-paid connection plans. Its prepaid features the remarkable
Ajibon 1 Paisa offer. Airtel Postpaid and Airtel Prepaid users enjoy various value added services
(VAS), such as SMS, MMS, GPRS, "Smart SIM", International Roaming, Corporate packages
for product advertising via SMS etc. Despite offering the cheapest services, Airtel cannot
properly resolve customers' complaints about its network quality. Airtel is often blamed by its
subscribers for the unclear voice quality on its 2G network.

34
5.4 Services offered by Robi
Robi offers an array of different packages and VAS. 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, EDGE, 3.5G HSPA+, international roaming, Mobile Banking, SMS
banking, Caller Ring Back Tone, MMS, Voice Greetings, Welcome Tunes etc. Robi has got the
widest international roaming coverage among all the operators in Bangladesh.

35
5.5 Services offered by TeleTalk
Teletalk provides Telephony, EDGE, GSM, HSDPA/3G services. It also provides prepaid,
postpaid and VAS. It has different packages for youth (Youth, Shadheen), students (Agami,
Bornomala) and elder generation.

5.6 Services offered by Citycell

Citycell offers both prepaid and postpaid plans. Since Citycell operates in CDMA technology, it
offers R-UIMs instead of SIMs. Currently it only sells ZTE S183 handset at BDT 2000. Zoom
Ultra is a data plan where the customer receives an internet dongle to surf the web wherever

36
Citycell has coverage. Zoom Ultra comes with a choice of prepaid or postpaid. Zoom came with
either one of two MODEMs, Huawei EC321 or ZTE MG880+. Zoom Ultra uses better
technology, as it uses EV-DO technology. ZTE AC782 or Tianjian E618 is the dongle given with
Zoom Ultra. Huawei EC5321 router is also offered for Zoom Ultra service. Zoom Ultra provides
download speeds up to 512kbit/s.

37
 6 Findings, Recommendation and Conclusion

6.1 Major Findings:

Most of the telecommunication customers have given their opinion about the
effectiveness of network.

The customers of Airtel perceived low call rate than that of GP.

GP is in a strong position than Robi regarding availability of SIM card.

It is found that the opinion of the customers of Robi is less scattered than GP i.e Robi

Offer low price SIM card.

All telecommunication companies try to establish their own customer relationship respect
to other country.

It is observed that Robi and banglalink is in a better position than GP in providing special
offers to the customers.

Many telecom companies customers are enjoying more free talk time & bonus facilities
than GP customers.

Flexi load facility of Grameenphone is more available than that of easy load facility of
other companies surrounding the country.

The performances of all telecommunication companies are satisfactory regarding friends
and family number facilities to the customers.

It is found that most of the customers of GP and Robi are showing their neutrality
regarding Internet and GPRS connection. But in comparison between these two
operators, GP is in better position.

Bangladesh Telecommunication Company can improve the Accounting information
system by implementing a Central software system.

The customers of mobile operators are satisfied in case of location of the service center.

6.2 Recommendation:

The authority of Grameenphone should reduce its higher call charge. At the same time,
the reduced call charge should be applied for all operators, not only for GP to GP, but also
from GP to other operators.
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Companies should provide more customer benefit regarding their services.

Companies should focus more to the prepaid subscribers than the post-paid subscribers.

SIM replacement (in case of lost or damaged SIM) charge should be reduced.

Most of the value added services (VAS) are not friendly for general handset users. GP
should take some steps so that general handset users get an opportunity to have that VAS.

Customers have been switching to other operators as a result of their poor network
infrastructure. So, telecom companies should have quick expansion in network
development all over Bangladesh if it wants to keep its customers to stay with it.

Time duration of easy load and scratch card should lengthen. Easy load facility should be
made easily available.

Charge should be reduced than the existing charge to take a new SIM if it is either
damaged or lost.

Companies should concernted about their customer care and their services. Now this days
customers are more concern about quality service.

Customer Care has turned out to be one of the most focused points in the telecom
industry. Survey results show subscribers expect a lot of it and would appreciate special
care facilities.

The Bangladesh Telecoms sector's growth has exceeded all expectations and has had a
transformative impact on the economy in terms of aggregate investment, FDI and
productivity levels.

With 3G and provision of data services, we expect the Mobile Telecoms sector (being
largely foreign owned), to continue to be the highest contributor to FDI.

6.3 Conclusion
At present, there are six mobile phone operators and one state-run fixed line operator providing
telecommunication service in Bangladesh. Operators have used different strategies to penetrate
in to this huge unmet market. Little research study on the telecom sector with particular emphasis
on the cellular industry of Bangladesh has been carried out so far that can provide substantial
market information about this rapidly growing industry. The market intelligence of respective
operator companies reaches out to gather relevant information, which remains highly
confidential and exclusive from one another.

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In Bangladesh cell phone business is very profitable. Day by day cell phone user is increases.
Firstly, City cell started this business in our country. Now In cell phone industry there are six
companies available these are - Grameen Phone, Robi, Airtel, City Cell, Banglalink, and Tele
talk with objectives are to serve the subscribers and gaining profit. By serving good network
coverage they try to gain good reputation among the subscribers. Every company always tries to
increase their user. For increasing user every company offer various attractive package. From any
account of what we have been doing and what we have not been able to do and why, we would
find it difficult to disagree that there is still a long way between promise and performance, and
between aspiration and accomplishment.

Robi has been a force to be reckoned with in the telecommunication industry of Bangladesh,
being one of the fastest growing mobile communication companies offering comprehensive
GSM mobile solutions to more than two million subscribers. And they wish to increase better
performance from day by day. Although GP is the leading Mobile Company in Bangladesh, it has
established a monopoly market in the country. General customers allege that GP is not reducing
its call rate; rather it is trying to grip the market in the name of different promotions. When one
finds that another company is offering better facilities than his/her operating company then
he/she tends to switch the mobile company but most interesting is that almost all users who
switch on company, dont throughout the previous SIM. They keep it and when finds that the
previous company is offering better they again comeback to that company.

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