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8/3/2019 Final Presentation Mkt 412
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Shamima Akhtar.051 535 030 M Mahmudul Hasan..073 330 530
Sharmin Akhtar Khan082 635 030 Rumanam Ajid.082 341 030 Shams Arefin..091 051 7030
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Watson, come here: I want you. This was the
first message evertransmitted from one placeto another, through a device calledtelephone.
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The telecom sector in Bangladesh has emerged rapidly. Citycell (Pacific Bangladesh Telecom Limited) is the first mobile
communications company of Bangladesh (1990). It is the only CDMAnetwork operator in the country.
Citycell had a virtual monopoly until 1996 when the government gave
licenses to three more companies to operate cell phones in Bangladesh-Grameenphone Limited (GP), Telecom Malaysia International BangladeshLimited (AKTEL), and Sheba Telecom (Banglalink)
On March 26, 1997, GrameenPhone launched its service on theIndependence Day of Bangladesh. They were the first to introduce GSM
technology in country. There are 6 mobile phone operators in Bangladesh. These are:
Grameenphone Ltd., Robi Axiata(AKTEL), Banglalink, Citycell, Teletalk andAirtel (Warid).
The number of mobile phone subscribers in Bangladesh as of February2009 was 45.21 million, rising to 76.43 million at the end of June 2011
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A large segment of the country's population now utilizesubscription to more than one operator.
The telecom industry of Bangladesh is varying its product in termsof augmented features and benefits to appeal to distinctive
segments of customers within that one segment, while all theplayers in the industry are attempting to compete with each otherin all segments.
The customers of the telecom industry are being exposed totelecom products, and combined with constantly reducing call
rates resulting from competition. Business Monitor International (BMI) has predicted that by the end
of 2011, mobile subscribers will reach figures of around 115 million.
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1.1 1.83.9 8.9
17.1
28.3
43.7
52.43
68.64
0
10
20
30
40
50
60
70
80
2002 2003 2004 2005 2006 2007 2008 2009 2010
Subscribers in million
Source: CRAB
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40.69%
32.77%
32.04%
19%
12%
6%
3%
2010
2009
2008
2007
2006
2005
2004
percentage of growth
Market Growth
Radical changesat growth rate
in2007-2008
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BD subscriber growth to remain oneof the fastest in Asia
Market penetration % 2009
Source: AT Capital Research; Note: Size of bubble denotes relative population of country.
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Relative wealth e.g. GNP per capita Quality, availability, and pricing for wire line
services. Innovative service offerings The intensity of competition Variations between national markets
The price of a handset Acquisition price of a SIM
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GP has been the market leader at a stretch formore than a decade
The mobile telecommunication industry had
68.64 million subscribers in December 2010 ofwhich GPs subscriber base stood at 29.97
million as of December 2010 which is 44% of
the total subscriber in the Industry On the other hand, Airtel has achieved 6%,
ROBI Axiata 18%, Banglalink 28%, Citycell 3%,Teletalk 2% market share as of December 2010
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Operators/month
Jul 10 Aug 10 Sep 10 Oct 10 Nov - 10 Dec - 10
GP43% 44% 44% 43% 43% 44%
Banglalink 28%
28% 28% 28% 28% 28%
Robi Axiata 19% 18%18% 18% 18% 18%
Airtel5% 5% 5% 6% 6% 6%
Citycell3% 3% 3% 3% 3% 3%
Teletalk2% 2% 2% 2% 2% 2%
Total 100% 100% 100% 100% 100% 100%
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1.50% 1.90% 2.30%2.50%
5.20%6.10%
7.80% 8.00%
10%
2002 2003 2004 2005 2006 2007 2008 2009 2010
Telecoms contribution to Govt Revenue (%)
Source: AMTOB & NBR
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Access to communications Mobile Remittance
Productivity Reduce transaction costs Provide opportunities for business expansion Encourage entrepreneurialism Improve in search for employment Facilitate mobile banking
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source : world bank; Qiang 2009
Economic impact of the mobile communications industry in 2009 as a % of total GDP, by type of impact
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Porters Five Forces Barriers to Entry:High competition creates low entry barriers.
Bargaining Power of Suppliers:The bargaining power ofsuppliers in the industry is strong in some cases if not in all
Bargaining Power of Customers: In our country the customershave absolute bargaining power
Threats from competitors:high competition
Threat from Substitute Products:
. In case of Bangladesh mobile telecom industry, substitutes exist in theform of government land lines and some upcoming PSTN operators.Some additional substitutes include wireless Internet providers such asWiMax based companies
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Product (services)
Core
Phone call and Text message Supplementary
Voice SMS
Mobile banking Internet
Bill payment
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Price A pre-paid connection can be purchased within 200
Taka, where a post-paid connection can be purchased
within 1000 Taka. But on an average it's now 1 Taka per minute for voice
call. SMS charge less than 1 Taka per SMS for someoperators
Internet service. It can be on volume basis (dependanton bytes downloaded or transferred) or at fixed rates.In most cases, the average rate per kilobyte is aroundTaka. 0.02.
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Promotion
Mobile companies use very aggressive promotionalcampaign
Each company follows different strategies for theirpromotional campaign.
Telecom companies have captured a major segment
of advertising among all the products and services. Sponsoring various events is another promotional
strategy followed by these companies.
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Place
Distribution facilities almost everywhere in
Bangladesh Own customer care centers almost in all the
important areas
One or more authorized dealers in every district
Recharge centers are available where ever isneeded.
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Process
All the companies have well designed process to
provide the service properly. Customer care centers are available to solve the
problems of the customers if thy have any.
Call centers are being a very important part
developing relationship with the customers.
Role of high tech facilities and degree ofautomation of the service is noteworthy.
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Physical Environment
Physical environment is not important for the
customers for availing the telecom facility. Even though the customer care centers are with
good environment.
Employees are well dressed and well mannered.
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People
Customer care employees are cooperative and
well mannered. Call center employees are well trained and are
suitable for the job design.
Other employees are not the subject of matter for
the customers.
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Productivity and Quality
Each telecom company has their specific
productivity and quality for their targetedcustomer segments.
Productivity and quality includes constantmaximum network coverage, call tariff and
packages.
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Expand Valued Added Services (VAS) Convergence will become more important
Infrastructure Sharing Public Private Partnerships (PPPs) Lower Broadband Costs Digital Bangladesh Possible Tax Cuts 3G/4G
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Clarity on process and terms of Telecomlicense renewal
3G networks are expected to significantlyenhance user experience 3G License uncertainty
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Bangladesh mobile telecoms consumerssuffer one of the highest levels of taxation
The recent amendment to the Telecoms Actmight increase the risks of arbitraryregulatory interventions.
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Flexibility in Government Regulations Prospective IPOs by other players industry
like GP Offering post-paid connections to young-
adults Contract Cell Phones Merger and 3G & 4G viability Mobile Apps
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Rapid Mobile Phone Growth Should Continue Market growth will be supported by both the introduction of
3G networks(likely 2011 or early 2012) as well as prospective
further cuts in Broadband wholesale costs and intro ofsecond submarine fibre optic cable. Aggregate revenue growth for Telecoms sector as a whole
likely to remain robust.
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