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7/22/18

Landscaping the Telecom


Industry as a New Player

Sarwar

K M Shafayat Nazrul Sadia Afrin Sarwar Iqbal Zeba Noshin Abdullah Al Jubayer

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7/22/18

Current subscriber of 147 million users


(GP being the market leader)

Growth rate of (less than) 10%

Market penetration 85%

Decreasing profitability

Market is almost saturated with ‘Voice’ service

4G being introduced INTERNET SUBSCRIBERS


(80.829 MILLION)
80 75.396
Demand for data in set increasing exponentially 70

60

50
Teletalk suffers from poor marketing 40

30

20
OTT service inclusion 10 5.345
0.088
0

Mobile Internet WiMAX ISP + PSTN


Issuance of NTTN policy to develop common
transmission service

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7/22/18

Porter’s Rivalry (Competition)


Forces
Low product and service
differentiation, lower prices and
innovative services
(these attract customers)
Low margins and profits

High exit barriers in form of


regulations and specialized
equipment
Overall Competition is HIGH

Porter’s Threat of New Entrants


Forces
Initial investment is too high

Making profits will be a long way to go


(lots of big sharks in the market)

Stringent government policies


regarding new entrants deter
entry in the market
Threat is LOW

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7/22/18

Porter’s Threat of Substitutes


Forces

Over The Top services


-uses the internet to connect people
-provides cheaper and more efficient
forms of communication

Threat is IMMINENT

Porter’s Bargaining power of


suppliers
Forces
Large number of telecom
equipment manufacturers
(Ericsson, Huawei, Alcatel, Nokia etc.)
Adequate number of vendors

Have to buy spectrum from the


Bangladesh government which
holds high bargaining power
Bargaining Power of Suppliers is MODERATE

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7/22/18

Porter’s Bargaining power of


Buyers
Forces
Not all operators able to provide
excellent network services
throughout yet switching costs
between operators low

Low product variance and cheap prices


provide options of switching

Bargaining Power of Buyers is HIGH

Demographics: Increasing population along with increase in literacy


(leads to more potential customers)

Social Forces: Rise in penetration of internet and social media


(leads to higher connectivity with the increase in use of smartphones)

Political, Legal and Regulatory Factors: Government expected to become


more stringent

Technological Factors: Move towards data-driven models away from voice technology
(provides new forms of communication at a lower cost)

Global Forces: Overall decline in demand of voice services will throttle growth
(unless creative ideas and value propositions are devised)

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7/22/18

Quality of service

Quantity of subscribers

Diversification of services

Pricing strategy
(Cost, volume, types of provided services)
Operation Management

Saturated Market
TITLE
(price war; hardly any room for new entrants with same value proposition)

Stringent Government Regulations


(making it difficult to enter and thrive)

High Initial Investment


(required for infrastructure and equipment)

Already Established Network Providers


(new entrants will find it difficult to reach break-even)

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7/22/18

Decline of Demand for Voice Services


TITLE
(move towards instant messaging, e-mails and video calls)

Rise in Number of Smartphone Users


(More smartphone user leads to more affiliation with internet)

Room for Innovative Ideas Utilizing OTT Services and


Focus on Data
(Companies that can offer buyers more than what telecom service
providers offer currently could outperform in the market)

Integration with Content Service Providers


(Media covers larger share of information value chain)

Cross-Industry Partnerships
(Services such as MFS and mHealth)

Internet of Things (IoT)


(Explosion of connected devices will lead to astronomical growth in data volumes)

Security
(More proactive protection from the Internet Value Chain)

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7/22/18

Mobile Broadband
(Move away from demand-saturated voice services)

Cloud Computing
(Key for business development as shift from “buying products” to “buying services”)

Augmented and Virtual Reality


(Another OTT service or growth opportunity?)

Network Convergence
(Converging Wi-Fi and Cellular to form a seamless service)

The New Way to do Mobile

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7/22/18

- Telecom company with a focus on the future and where its headed
- Emphasis on data over voice
- Demand for voice services have been declining ever since the use of
internet has become more widespread and
- The emergence of IP telephony and other OTT services
- Voice provides just one dimension for connectivity
- Internet has opened up the doors to multi-dimensional connectivity at
a lower cost

- Focus on Fixed Broadband, Fiber-to-the-Home (FTTH) and


Fixed Mobile Convergence (FMC)
- Set up network of interconnected Wi-Fi/WiMAX zones across
the country, backed up by broadband connections set up through
optical fibers and accessible only to the registered users
- Convergence between data and voice is the key here
- Creating seamless services using a combination of fixed
broadband and local access wireless technologies

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7/22/18

Data-only Switching
Internet Broadband- sims with Wired made
value chain like internet capabilities internet redundant
along with speeds via to make connections since WiFi
provision for wireless voice calls to for home and access
voice calls networks numbers corporate use everywhere
over VoIP

We would love to hear


from you

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