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1.0 Introduction: The history of mankind proves that communication is a very important in the day by day life of the common people. Since then, there have been attempted in make communication easier people has been concentrating on it and such as today we see the birth of the latest devices of communication and telecommunication. Bangladesh is not so far away from such technological advancements, compared with the rest of the world. The country has witnessed a rapid boom in the mobile phone industry. Within the last one decade, the user base of mobile phones has skyrocketed to massive proportions. There are currently five companies in the industry, namely, CityCell, GrameenPhone, AKTEL, Banglalink and Teletalk. The Pacific Bangladesh Telecom Limited owning CityCell introduced cellular telephones in Bangladesh using AMPS technology in the early nineties. Initially a monopoly, the company charged a premium price for their connections and was affordable only the upper-upper segment of the country, especially for residents of Dhaka and Chittagong. Their network was also limited to this Dhaka-Chittagong region. They are still remembered by many for their initial overcharging. In those days, they became a symbol of affluence. 3 years later, Grameen Phone and AKTEL (TMIB) came up with GSM technology and soon Sheba Telecom followed suit with WLL technology. Subsequently Pacific Telecom switched to CDMA 1 and Sheba tuned with GSM. With the entry of GP and TMIB into the
Transcript
Page 1: 1final Report of Citycell

1.0 Introduction:

The history of mankind proves that communication is a very important in the day by day

life of the common people. Since then, there have been attempted in make communication easier

people has been concentrating on it and such as today we see the birth of the latest devices of

communication and telecommunication. Bangladesh is not so far away from such technological

advancements, compared with the rest of the world. The country has witnessed a rapid boom in

the mobile phone industry. Within the last one decade, the user base of mobile phones has

skyrocketed to massive proportions.

There are currently five companies in the industry, namely, CityCell, GrameenPhone,

AKTEL, Banglalink and Teletalk. The Pacific Bangladesh Telecom Limited owning CityCell

introduced cellular telephones in Bangladesh using AMPS technology in the early nineties.

Initially a monopoly, the company charged a premium price for their connections and was

affordable only the upper-upper segment of the country, especially for residents of Dhaka and

Chittagong. Their network was also limited to this Dhaka-Chittagong region. They are still

remembered by many for their initial overcharging. In those days, they became a symbol of

affluence. 3 years later, Grameen Phone and AKTEL (TMIB) came up with GSM technology and

soon Sheba Telecom followed suit with WLL technology. Subsequently Pacific Telecom

switched to CDMA 1 and Sheba tuned with GSM. With the entry of GP and TMIB into the scene,

price came down significantly to be afforded by the upper and middle class segments of urban

population and network coverage expanded countrywide. Until then, all operators provided full-

fledged connection with at least NWD and T&T connectivity. There after, state owned land

phone connectivity provider BTTB refused to provide any more inter connectivity with land

phones to mobile phone operators for additional subscribers.

Presently it can be definitely assumed that, the market for mobile telephones in

Bangladesh is by any scale, promising. For mobile operators, at least two things are worth to be

born in mind. Firstly, the core product itself is a highly technical service, so brand-image and

noticeable product features are needed to differentiate the product. Besides, a recent study shows

that awareness level of different target market is extremely high. Almost everyone who can

operate and afford a cell phone knows about the service and also the name of top three operators.

So, for top three players, the game is to generate as much trial as possible by converting non-

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users and at the same time retaining the users. Since the market has just started to approach the

mass segment, new market penetration seems to be the least expensive strategy.

1.1 Origin of the report

This internship report was carried out to fulfill the partial requirement for the completion

of the BBA Program of North South University. I joined Pacific Bangladesh Telecom Ltd as an

intern for the period May to August 2006. It has been a very interesting experience, one that has

provided an in-depth perspective into the actual workings of an organization. I have been able to

provide a view of their operations and also learn from those who work in City Cell about the

every day problems faced and the greater business issues in general.

The youth market today is an extremely technologically aware, a segment of society that

has been active in transforming the application and use of digital technologies in unprecedented

ways (Selian, 2004). This market segment is here defined as the range of teenagers and young

adults between the age of 13-28 comfortable communicating via mobile phones and playing with

digital gadgetry than any previous generation with using the Internet, building websites.

Understanding the youth segment is core to the long-term success of the mobile industry

(Wireless World Forum, 2005). Young people represent Different sectors of the market with high

liquid assets, a higher demand for communicative devices than any other demographics. The

youth market has historically shown a rapid viral adoption of new trends and can often self-

market products and services with little input from the producer or provider (Wireless World

Forum, 2005). In order to understand the attitude of the booming youth market of mobile users in

Bangladesh, a thorough assessment of this segment is crucial, especially for the interest of

CityCell and other mobile phone companies operating in Bangladesh.

As the young consumers itself is important in the mobile phone industry, mobile operators

in developed nations have already started studying this market from all possible perspectives in

order to understand their guiding motivators. The popularity of mobile phone among the youth

market in Bangladesh has emerged only 6/7 years back. From that viewpoint, it is still a new

technology on the rise in a developing nation like Bangladesh. However, the market is growing

fast and new competitors are arriving in the market. In this situation, it has become necessary for

the mobile operators like CityCell in Bangladesh to get hold on the attractive segments of the

youth market and rule over rivals by following differential strategy.

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1.2 Objectives of the Study

1.2.1 General Objective

To develop a conceptual model of the factors influencing the attitude of the youth market

of mobile users in Bangladesh while preferring a brand and find out the attitudinal changes

brought by this combined influence.

1.2.3 Specific Objective

1. To identify the internal and external factors influencing the attitude of the youth market

of mobile users in Bangladesh and investigate how they influence.

2. To investigate the attitudinal changes of the youth market of mobile users brought by

the combined influence of these factors.

1.3 Statement of Significance

The study will make the following significant contributions to CityCell in Bangladesh.

Identifying the internal and external factors influencing the attitude of the youth market of

mobile users in Bangladesh which would provide a comprehensive portrayal of the youth

market segment to CityCell, which will help the company to implement an effective

positioning strategy.

Identifying the factors influencing the attitude of the youth would provide a guideline to the

CityCell to adopt factors that influence positive attitude and reject factors that influence

negative attitude.

CityCell would be able to compare its present market situation with other mobile operators in

Bangladesh and would also get to know the current position and acceptance of other mobile

operators among the youth market in the country.

This study would enable CityCell to design and offer their services according to the

requirements and preferences of the youth market of mobile users.

The findings of the study would also assist the policy makers and experts of CityCell to come

up with effective decisions regarding this specific market segment.

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1.4 Research Hypothesis

For this study, the researcher is going to undertake explanatory hypothesis, where there is

an implication that the existence of, or a change is, one variable causes or leads to an effect on the

other variable. Therefore, for this research, the independent variables are the internal and external

factors of a young mobile user. The internal factors are demographic, psychographic, behavioral

characteristics of a mobile user and his/her perception towards “Mobile Phone”. On the other

hand, the external variables are media and advertising, brand image, youth service offerings,

reference group influence. The dependent variable is the attitude of the young people. Therefore,

the research hypothesis would be, the internal and external variables play important role in

changing and shaping the attitude of young people using mobile phone in Bangladesh.

1.5 Research Design

With the intension to identify the factors, exploratory research design will be

selected as suitable for this study.

1.6 Scope of the Research

As far as the youth segment is concerned, the researcher has restricted from the age range

of 13 to 28 years. This study includes the school students, college students, university students

and office executives. Therefore, this research is expected to represent the youth market of

mobile users and reflect their mobile phone behaving pattern. In order to complete the study

within the given period, the researcher concentrated the study in Dhaka only.

1.7 Data Collection Method

Both of the primary and secondary information has been used to conduct the

study. Information was collected through open ended and close ended questionnaire. The

questionnaire contains 25 questions 12 of which are open ended questions.

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1.7.1 Primary source

In terms of primary source, data has been collected directly from different mobile users of

different segments. Here I have used both questionnaire and personal interview to collect the data

from the direct user.

1.7.2 Secondary source

In the secondary source, data are collected through the different textbooks and journals

relating to the theoretical framework of the project was accessed to define and to determine

satisfaction. Furthermore, annual report, company projects profile, related data, brochures had

been collected from the City Cell and also the web page relating to City Cell have also been used

as our source of secondary data.

1.7 Sampling Method

1.7.1 Sampling procedure

For this study, the researcher has to get respondents who are the regular users of mobile

phone offered by any mobile operator. However, there is no list of young mobile phone users

available with the mobile companies. Therefore, the researcher has no other option than to

follow one of the non-probabilistic sampling methods, known as Convenience sampling. In this

method, the researcher can take any one (within the age range) from any educational institution

or organization who is a regular mobile phone user. According to Naresh K Malhotra,

convenience sampling can be used for generating new ideas, exploring new opportunities.

1.7.2 Sample size

80 mobile users’ of schools, colleges, and universities (academic institutions) students and

junior executives of commercial organizations in Dhaka city are picked for this study.

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1.7.3 Sample Frame

Table1: Consumers Occupation

Occupation Sample allocation

School Students 20

College students 20

University students 20

Office executives 20

Total 80

1.8 Data Analysis

As this is an exploratory research, the out come of this research is restricted to only the

development of an initial understanding. For the exploratory research the unstructured data

collection has been included and the non-statistical data analysis has been executed for data

analysis. For this reason, the researcher has collected data by using qualitative method.

Particularly the qualitative data has been gathered from in depth personal interview and content

analysis has been properly utilized. 

1.9 Contribution to the knowledge

The research would make a remarkable contribution to the theoretical literature, particularly,

in the case of mobile companies operating in Bangladesh as well as in the market context of

developing countries.

A well-constructed study on the attitude of the youth market of mobile users in Bangladesh

may give a new outlook of the youth segments for the mobile operators like CityCell in the

developing countries.

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The conceptual model developed based on the attitude of youth in this study will enrich the

“attitude” related literature of the developing country as this model could be adapted and

validated for other countries.

1.10 Limitations

The findings are based entirely upon the research conducted in Dhaka and hence may not be

applicable directly to other districts on counts of socio-culture diversity and contextual

factors.

Such a survey needs to be undertaken periodically to judge the exact consumer perceptions

that they keep changing with time.

Due to constraints of time, certain topics have not been touched upon at all during the course

of study. An in-depth analysis may be further taken up in each of the sub-topics covered.

2.0 Organizational Part

2.1 The Company

Pacific Bangladesh Telecom Limited (PBTL) is the first mobile phone service provider in

the Indian subcontinent. The address of the Head office is: “Pacific Centre” 14, Mohakhali C/A

Dhaka 1212. Another office in 81, Kakrail (Ground Floor) , Dhaka – 1000. Other branch offices

in Rajshahi, Sylhet, Khulna and Chittagong.

2.2 Pacific Group Ltd.

The Pacific Group is a group of companies under common ownership. The group has

interests in automobile service (Pacific Motors Ltd.), consumer electronics (Pacific Industries

Ltd.), fisheries (Bengal Fisheries Ltd.), tea (Noyapara Tea Company Ltd.) and

telecommunications (Pacific Bangladesh Telecom Ltd.). This group of industries was founded by

renowned industrialist and current honorable foreign minister – Mr. M. Morshed Khan.

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2.3 The Company History

In October 1990, Hutchison Bangladesh Telecom Limited (HBTL) was formed as a joint

venture between Bangladesh Telecom Limited (BTL) and Hutchison Whampoa Limited of Hong

Kong. In March of that year BTL had been issued a license by Bangladesh Telegraph and

Telephone Board (BTTB) for operating cellular, paging and other wireless communication

networks.

However, soon there was legal dispute between BTTB and BTL regarding the refusal of

BTTB to provide Public Switch Telecommunication Network (PSTN) channels for connectivity

to the BTTB network. The Supreme Court then ruled in April 1993 that BTTB would have to

provide PSTN connections to HBTL, and that BTL would have to transfer the cellular portion to

the license of HBTL. BTTB gave HBTL the PSTN connections in August 1993 and HBTL began

commercial operation of the first cellular telephone service in Bangladesh in the same month. The

owners of HBTL decided to sell their stakes in the company due to the legal war. HBTL’s shares

were divided into two parts: Type A, which was held by BTL and Type B, held by Hutchison.

Each type of share represented 50% title of HBTL. Pacific Motors Limited bought the type A

shares while Hong Kong based financial investors Far East Telecom Limited bought the Type B

shares.

On 12th February 1996, HBTL was renamed Pacific Bangladesh Telecom Limited. PBTL

uses the brand name CityCell to market its cellular products. In order to boost the financial and

also the managerial strength of PBTL, the shareholders of PBTL has completed the transaction

under the agreements in which Fujitsu Limited, Japan and Asian Infrastructure Development

Company (AIDEC), established in Cayman Islands, would acquire 10% and 20% equity shares in

PBTL, respectively on June 2000. In June 2005 CityCell and SingTel acquired.

2.4 Current ownership Structure

2.4.1 Current owners

CITYCELL (Pacific Bangladesh Telecom Limited) is a privately owned company with

majority foreign ownership equity. Following lists the current owners of CITYCELL (PBTL):

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Ownership Structure

31%45%

24%SingTel

Pacific Motors Limited

Far East TelecomLimited

Figure: Ownership structure of CITYCELL

2.4.2 Pacific Group Ltd

The Pacific Group is a conglomerate, which includes the Telecom Strategic Business Unit

(SBU) responsible for the service provision and marketing of the CITYCELL brand. This SBU is

known as Pacific Bangladesh Telecom Ltd (PBTL). It is responsible for the overall management

of the telecom business that Pacific Group of companies is involved in.

Renowned industrialist and current foreign minister – Mr. M. Morshed Khan, founded

this group of industries.

2.4.3 Acquisition of SingTel

SingTel is Asia’s leading communication group with operations and investments in more

than twenty countries and territories around the world. Serving both the corporate and consumer

markets, the SingTel Group is committed to bringing the best of global communications to

customers in the Asia Pacific and beyond. With significant operations in Singapore and Australia

(through wholly-owned subsidiary SingTel Optus), the Group provides a comprehensive portfolio

of services that include voice and data services over fixed, wireless and Internet platforms.

Over the years, SingTel has grown to be a global player with a strong regional heritage.

With one of the most extensive and advanced telecommunications infrastructure, the Group offers

unparalleled reach in Asia and beyond. SingTel's highly developed international network

provides direct connections from Singapore to more than 100 countries. It is a major investor in

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many of the world's most sophisticated submarine cable and satellite systems. The Group is the

second largest satellite operator in the Asia Pacific.

SingTel’s ability to support multi-national corporations (MNCs) on a cross-border basis is

anchored by its extensive network of SingTel Global Offices (SGOs). Found in 35 cities in 17

countries and territories across Asia Pacific, Europe and the United States, the SGOs provide

MNCs with a single point of contact. The Group’s other major investments in the region include

Advanced Info Service of Thailand, the Bharti Telecom Group of India, Globe Telecom of the

Philippines and Telkomsel of Indonesia. Together with its regional partners, SingTel is Asia’s

largest multi-market mobile operator, serving almost 65 million customers in six markets.

SingTel employs more than 19,000 people worldwide and had a turnover of S$12.62 billion

(US$7.65 billion) and net profit after tax of S$3.27 billion (US$1.98 billion) for the year ended

31 March 2005.

Singapore Telecommunications Limited (SingTel) recently announced that it has invested

US$118 million for a 45 per cent equity stake in Pacific Bangladesh Telecom Limited (PBTL).

Of this investment, US$90 million will be applied towards the subscription of new shares. In

addition, SingTel has a call option to increase its equity interest in PBTL to 60 per cent for an

additional US$65 million. The option can be exercised between 1 April and 30 June 2007.

2.5 Mission

PBTL’s mission statement is “To be the most successful cellular, paging and other

wireless service provider in Bangladesh by virtue of having greater operating expertise.”

CityCell’s inherent emphasis is on quality, not cheapness of service. The first priority is to

provide a high end service that can be used for both commercial and personal use.

2.6 Vision

The Vision of the company is “To continue to be the leader in the Telecom industry in the

region and provide a complete communication solution to the customers with a smile.” There is

an emphasis on strong customer relations. This is important to CityCell especially as, until

recently, they positioned their packages as high end packages (corporate and business users).

Such customers will require strong support for brand loyalty to develop.

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2.7 Objectives

2.7.1 Qualitative Objectives

Increasing service offerings.

Expanding the network.

Creating innovative, unique, and cost-effective various products to customers.

Increasing loyalty by focused customer retention program.

2.7.2 Quantifiable objectives

Increase subscriber base to 1.6 million by Dec 31, 2006

95 % overall network availability by the end of 2006

Network coverage in 61 districts (out of eligible 61) by the end of 2006

2.8 Strategies

2.8.1 Functional Level Strategy

PBTL’s focus is on efficiency, quality, innovation, and customer

responsiveness.

2.8.2 Business Level Strategy

PBTL applies cost leadership and differentiation strategies as its

business level strategies.

2.8.3 Corporate Level Strategy

PBTL follows related diversification as their corporate level strategies.

2.9 Market Promotion & Communication

Brand Management

Events Management

Advertisement & Promotion

Press Advertisement, Outdoor Advertisement in Strategic points, Point of

Purchase (POP)

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2.10 Sales & Distribution

Focus on corporate sales through PBTL sales executives

Strengthen & build up the relationship with dealers & outlet holders

Increase sales outlets in strategic points

Re-alignment of distribution structure

Uniform profiling of sales outlets

3.0 Literature Review

3.1 Background of the problem

Mobile phones are no longer used purely for phone calls. They have now taken on a

convergent form, where the user can access the Internet, download polyphonic ring tones, text

message other mobile phones using SMS, take photos and send emails all from their mobile

handset. One group in particular that has heavily adopted this technology is youth. This new

media technology has spread rapidly and has created a whole new youth culture, particularly in

urban centers (Graves, 2004). Mobile phones have taken off quickly. In 2004 The Economist

reported that 600 million mobile units are sold each year. Young people in particular are a

lucrative market for the mobile-telecommunications industry and account for a large percentage

of their profits.

Many mobile operators have already shifted their attention on the youth market, targeting

it not only because this segment represent tomorrow’s adult consumers, but because they also

command a significant portion of their parents’ disposal income. These young people are the big

spenders of tomorrow (Selian, 2004). As far as this researcher is aware, no major effort has yet

been taken to study the attitude of the youth market of mobile users in Bangladesh. Therefore,

this study conducted by Citycell on the youth market is justified.

3.2 Statement of the Problem

In terms of market share of mobile phone operators in Bangladesh, GrameenPhone

constitutes the highest share of 59%, AKTEL 27%, CityCell 6%, Banglalink 7%, and Teletalk

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1% (Daily Star; Mar 13, 2006). The total number of mobile subscriber in Bangladesh is around

7,335,000. As GP is enjoying the 1st position in this race and CityCell is nowhere but in number 4

in the 5 man race, it is very important for CityCell to find out exactly what are the triggering

factors that affect the youth market of mobile users’ attitude for any brand preference.

Consumers are very dynamic and never static when they are choosing their brand. They

may chose one brand today but if some other brand offers something more attractive, they will

not hesitate to switch their brand. So, ultimately it can be said that the mobile phone users in

Bangladesh are not yet brand loyal. So, to retain the maximum users, the company must find out

the triggering factors. (Banglapedia, 2000)

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4.0 Organization StructurePBTL has around 600 employees:

4.1 Marketing Division

4.1.1 Functions of the Sales and marketing Division

The major marketing goal of this division is to capture a significant market segment that

will yield maximum revenue by means of passing on directly or indirectly high end cellular

phone service. Many clients provide telecom services to their locality by Tellular or Fixed

Advisor

Technical officer

Executive

Sr Executive

AVP

VP

GM

CTO

Director Engg

Engineering

Executive

Sr Executive

AVP

VP

Sr VP

Sales &Marketing

Officer

Executive

AVP(Finance)

Executive

AVP(Commercial)

VP

Finance & Commercial

Customer ServiceOperation

Billing & IT

Officer

Executive

Sr Executive

AVP

VP

Officer

Executive

Officer

Executive(Store)

Sr Executive

AVP

VP

Accounts

Officer

Sr Officer

Executive

Sr Executive

AVP

Sr VP

Administration

Managing Director

Chairman

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Wireless package (FWT). The rates of this package may be low but this is offset by the high

frequency of usage and the strong support claimed to be provided by CityCell.

4.1.2 SVP (CCO)

The office of the Chief Commercial Officer, who is the Senior Vice President of Sales and

Marketing Division, is responsible for coordination of marketing activities across the company

and to provide top level management with an overall picture of the market situation.

Fig 9: Sales & Marketing Division

Manager,FWT

& Backbone

Manager,VAS

Manager,Corporate

Sales

Manager,Channel

Sales

Manager,Product

Development

Manager,Brand

Manager,MarComm

Chief Commercial

Officer(CCO)

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4.1.3 VP (GM)

The Vice-President of the division oversees the product and business development

scenario of the company. He is responsible to the SVP of the division.

4.2 Product Development

This department is responsible for find out the innovative features that can attract the

existing and potential customers. Product development is one of the key departments in the

company. While developing new packages and talk plans this department has to keep in mind the

profit and cost issue. Under all these constraints the department has been producing exciting and

new features which ultimately attract customers.

4.2.1 Value Added Service (VAS)

This is another department which also deals with product development but this

department is concerned only with the Value Added Services that the company offers. Value

added services are those other than basic voice calls. CityCell’s VAS department is one of

leading VAS providers in the country in terms of the number of wide range services that it is

providing.

4.2.2 Brand

The brand department of the company deals with image o the brand to the customers. It

basically helps the brand to portray its intentioned image to the potential target group. This

department along with the Marketing Communication department deals with the promotional

activities.

4.2.3 Corporate Sales

There is a separate office of assistant vice-president for corporate sales who is also

responsible for corporate customer relations. Corporate customers are given high priority in terms

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of sales and also in terms of after sales service. Of course this is due to the high usage and need

for good long term goodwill with such corporate clients. This department however deals mainly

with sales to corporate customers and maintenance of relations with both current clients as well as

scouting out potential new corporate clients, whereas the after sales service and other issues are

dealt with by the customer services operations section of the company.

4.2.4 Channel Sales

The assistant vice president responsible for channel management has the very important

job of setting up marketing channels by which packages are distributed among clients and by

which feedback is obtained from customers. This department is responsible for the selection of

new dealers and motivating them and current dealers to promote CityCell packages to their

customers in their respective areas. This department is also responsible for seeing that there is an

excellent support network for each dealer and that they are satisfied with their monetary or

otherwise remuneration.This department is also responsible for checking that each dealer does not

cut into the sales of another dealer in a very proximal region.

4.2.5 Marketing Communications (MarComm)

The chief responsibility of this department is logically, promotion and communication of

new products and product ideas to customers both directly through selection of advertising media,

then dissemination of information by means of advertisements; and indirectly through dealers by

providing them with promotional material. This department is also responsible for public

relations which do not include corporate relations. This is handled, as I have seen, by other

departments. The responsibility of this department is immensely important especially in the

introduction stage of a package for customers. They also provide help for other departments such

as the front office and services marketing in order to promote CityCell packages to both current

and new customers. This helps very much in handling cases of dissatisfied customers and also in

case of adjusting customers with old packages who have to be convinced to upgrade their

packages to the new ones on offer. The company sub-contracts its promotional materials

production to local companies. A regular number of events are held to integrate promotional

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activities with public relation exercises to enhance the image of CityCell and better promote the

packages on offer.

4.2.6 Product (& Tariff design)

This sub-department is under the Product Development department and is responsible for

the design of packages and the fixing of tariff rates which are actually the rates of usage for each

package. This department is also responsible for the coordination of market research for the

whole company. They will integrate knowledge gleaned from extensive market research into the

design of new packages that fulfills the needs of customers. This is done very frequently as the

needs of even the most stable of customer segments change and the company has to change the

tariff structure of its offered packages accordingly.

4.2.7 FWT and Backbone

This particular department looks after the Fixed Wireless Terminal clients and the

packages. FWT has been one of the most profitable sectors for the company. As a result this

department has a great significance to the company. PBTL has undertaken a commercial program

to expand its business activities to selling back-bone for data transfer to corporate clients. This

network stretches from Chittagong to Sylhet through Dhaka. It has immense potential and may

generate significant revenues for the company. The overall structure of the sales & marketing

department and its sections of CityCell have both advantages and disadvantages in terms of

organizational structural and respective functionality.

4.3 Technology

Only CityCell using CDMA technology in Bangladesh. So. It is important for the research

to know the comparison between CDMA and other technologies.

4.3.1 AMPS

The most commonly used cellular system in North America, the Advanced Mobile Phone

System (AMPS) had also gained widespread acceptance in Asia (specially in Korea, Hong Kong,

Japan, Singapore, etc). An analogue system, this was introduced in the mid 80s and used a

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technique known as Frequency Division Multiple Access (FDMA) to allocate Channels. Thus it

divides its entire allocation in sections of 30 KHz and uses each of these sections as channel.

Thus AMPS is able to provide 30 channels per 1MHz of frequency allocated. The principal

behind AMPS is analogous to dividing up a large hall room (the entire frequency allocated to the

operator) into a number of smaller rooms (channel) once the first pair has completed their

conversation and left the room (disconnected).

4.3.2 Code Division Multiple Access (CDMA)

Code Division Multiple Access is a system in which a subscriber uses the entire frequency

for the entire period that his phone is active. Installing of segregating users by frequency

(FDMA) or time (TDMA) this technology segregates customers by coding the signals in such a

manner that each customer decrypts only one signal at any one signal at any given time. This

would be similar to allowing a large number of people into the hall room, but requiring each pair

to converse in a different language. Thus while everyone would hear everyone else, this would

just be more of background noise rather than interference. On the other hand, each person would

be able to understand this partner, because they would be speaking the same language. One of

major differences between CDMA and the other existing technologies is in terms of frequency

reuse. Using CDMA an operator would use the entire allocated frequency in every cell. The

reuse pattern, therefore, is in effect a ‘one cell reuse pattern’. Therefore, the operator can serve

may more customers per unit of allocated bandwidth compared to either AMPS of GSM. In

general, CDMA capacity is rated to be 10 to 20 times higher then analogue techniques such as

AMPS, and 3 to 5 times higher than other digital cellular technologies such as GSM.

4.3.3 Global System for Mobile Communications (GSM)

GSM stands for "Global System for Mobile Communications." It is mostly a European

system and is largely unused in the US. Introduced in the mid-80s, the Global System for Mobile

(GSM) Communications is a digital cellular used extensively in Europe and Asia. GSM is

interesting in that it uses a modified and far more efficient version of TDMA. GSM keeps the

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idea of timeslots and frequency channels, but corrects several major shortcomings. Since the

GSM timeslots are smaller than TDMA, they hold less data but allow for data rates starting at 300

bits per second. Thus, a call can use as many timeslots as necessary up to a limit of 13 kilobits per

second. When a call is inactive (silence) or may be compressed more, fewer timeslots are used.

To facilitate filling in gaps left by unused timeslots, calls do "frequency hopping" in GSM. This

means that calls will jump between channels and timeslots to maximize the system’s usage. To

compare with the other systems, it should be noted that GSM requires 1 Watt of output power

from the phone.

4.4 Advantages of CDMA

There are numerous advantages of using CDMA technology, the most important of which

are:

(a) Higher Capacity: Since CDMA makes more efficient use of the available spectrum; it

can provide greatly increased capacity. CDMA capacity is rated to be 10 to 20 times higher than

other analogue techniques such AMOPS, and 3 to 5 time higher that other digital cellular

techniques such as GSM. With higher capacity, CDMA accommodates higher demands and

supports new digital services such as data transmission and mobile fixing.

(b) Simplified Planning: CDMA allows system planning to become much easier through

the use of the same frequency in every sector of every cell. As the entire frequency is used in

each cell, operators do not have to retune base stations, thus capacity expansion is quicker and

simpler.

(c) Better Voice and Call Quality: The unique encoding scheme used foe each different

CDMA conversation virtually eliminates cross-talk and dramatically reduces the impact of

interference from other sources. Also, The larger bandwidth of CDMA signals (the signals use

the entire frequency versus only a portion for competing technologies) means that they are less

prone to fading compared to the narrower bandwidths of AMPS and GSM.

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(d) Enhanced Security and Privacy: Since the signals are coded, it is very difficult to

intercept and decode a CDMA signal. This prevents eavesdropping and prohibits cloning and

other types of fraud. Also, due to the wider bandwidth, such phones are difficult to jam.

4.4.1 Disadvantages of CDMA

Due to its proprietary nature, all of CDMA's flaws are not known to the engineering

community for solving

CDMA is relatively new, and the network is not as mature as GSM

CDMA cannot offer international roaming, a large GSM advantage

4.5 Advantages of GSM

GSM is already used worldwide with over 500 million subscribers

International Roaming permits subscribers to use one phone throughout Western

Europe CDMA will work in Asia, but not popular European destinations

GSM is mature, having started in the mid-80s. This maturity means a more stable

network with robust features. CDMA is still building its network

The availability of Subscriber Identity Modules, which are smart cards that provide

secure data encryption give GSM e-commerce advantages 

4.5.1 Disadvantages of GSM

Lower voice clarity

Less security for subscribers

Frequent call drops

Higher number of carriers/base stations required

4.6 Product and services offered by CityCell

4.6.1 Fixed Phone Package

T & T incoming and outgoing with Mobile to Mobile

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4.6.2 Post Paid Packages

4.6.2.1 ‘CityCell 1000’ (Regular)

Commercial/ Business/ Personal use by high income consumers. This product can reach

the Local T&T, NWD, IDD and all Mobile service operators across the country. It is one of the

old packages of CityCell. Still this package is being provided to many high income group

consumers. Both small and large institutions and organizations subscribe the service as their

needs. (See Appendix-A, table- 2 & 2.1)

4.6.2.2 ‘CityCell 500’ (Regular)

Commercial/ Business/ Personal use by high income consumers. This product can reach

the Local T&T, NWD, IDD and all Mobile service across the country. This is one of the regular

packages which have the most number of subscribers. This package is known and admired to all.

The subscription fee and the tariff are affordable than the other mobile operators are offering.

These days not only high income group but also high medium and medium income groups also

use this service because of the lowest billing rate offered by CityCell. (See Appendix-A, table- 3

& 3.1)

4.6.2.3 ‘Mobile 250’ (Mobile to Mobile with BTTB Incoming and Limited Outgoing)

Personal use by middle income consumers. Significant number of customers is having this

subscription. It is very popular among students and medium salaried servicemen and a good

number people from different occupation are using this line. (See Appendix-A, table- 4 & 4.1)

4.6.2.4 ‘Amaar Phone’ (Mobile to Mobile)

Personal use by mainly medium income consumers. Though not widely used but still this

option is open for a group of people who just want mobile to mobile connection in low rate. (See

Appendix-A, table- 5)

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4.6.2.5 ‘Tellular’ (Fixed Wireless Telephone)

Commercial/Business use by commercial institutions and business organizations. This

package has been mostly used in village area, but recently I have seen that in city area many

people using this service for mobile to mobile business because of low rate. High frequency

antenna help the FWT sets to reach signals beyond the service area. (See Appendix-A, table- 6)

Table 7: Current Post-paid packages: features and target segment

Package Target market segment

Mega Offer Personal usage, targeted to mass coverage

Apap Super Plus Personal usage, targeted to mass coverage

Alap Super Personal usage, targeted to mass coverage

Aamar Phone Personal use by mainly medium income consumers

Shabar Phone Personal use by middle income consumers

CityCell 500Commercial/business/personal use by middle/high income

consumers

CityCell Premium Commercial/business/personal use by high income consumers

FWT (Tellular)

packages

Commercial/business use by commercial institutions and

business organizations

4.6.3 Pre Paid Packages

The new-generation subscribers are very interested with this service. It is also helpful for

limited income group of people. ‘Aalap’ pre-paid card is available everywhere and this service

provides flat rate and nation wide roaming. A very significant edge that CityCell pre-paid

packages have over other pre-paid packages from other companies is the package that features T

& T incoming and outgoing. Other benefits for the subscriber:

SMS facility and other value added services

Scratch card in a variety of denominations (e.g. Tk. 300, Tk. 400 and Tk. 550)

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Know the balance by dialing *811

4.6.3.1 ‘Aalap 24’ (Mobile to Mobile with T & T Facilities)

Aalap 24 is mobile-to-mobile as well as mobile-to-BTTB package. This plan gives

subscribers –

Access to any mobile in Bangladesh

24-hour BTTB connectivity

24-hour NWD and ISD facility

Very attractive and simple tariff plan

Freedom to choose 3 CityCell numbers and make calls at 50% reduced tariff under

One2One scheme.

5.0 Industry Analysis

The mobile telecommunications industry in Bangladesh is now in its rapid growth stage.

Since the technology is expensive, there are only four companies operating actively the mobile

service. The other three companies are, Grameen Phone, AKTEL, and Banglalink (Orascom)

Telecom. BTTB with its brand, ‘Tele-talk’ has also very recently entered this competitive

scenario.

As operators of mobile cellular services, Aktel, Grameen Phone and Banglalink are direct

competitors of CityCell. The PBTL license was issued in 1989. The three other license were

awarded during November 1996, and are identical to each other, however the licenses awarded to

Aktel, Grameen and Sheba (now Banglalink) for their mobile cellular networks differ in some

aspects from the license that PBTL holds.

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5.1 The most significant differences

Grameen/Banglalink/AKTEL PBTL (CityCell)

Cellular mobile or fixed communications

Must be digital technology. Can be digital or analogue technology.

License Duration

Licenses valid for 15 years thereafter

renewable annually based on

performance.

License valid for 20 years.

Frequency

Assigned 10 MHz. Assigned a total of 40 MHz.

Operator fee obligations

Operator pays 15% of line rental

revenues to Ministry of Post &

Telecommunications and call charges at

actual to BTTB. Additionally, operators

pay Tk 10 million annually as license

fees.

PBTL has to pay 10% of line rental

revenues and call charges at accruals to

BTTB. No license fees are payable.

Coverage of cell sites

Coverage of each cell may not be greater

than 7 km in urban and 17.5 km in rural

areas.

Coverage is not restricted.

Rollout Obligation

Operators must performance obligations

or pay fines.

No such obligations.

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5.1.1 Grameen Phone Limited

Grameen Phone Ltd. (GP) is the current market leader in terms of market share, which is

owned by a consortium of investors comprising of Grameen Telecom and Telenor (Norwegian

state owned telecommunication company, owning nearly 65% of total shares). GP is using the

GSM technology to provide mobile cellular services to about 3.4 million subscribers in

Bangladesh. The company started its service in March 26, 1997.

Grameen Phone’s 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, the company has been building continuous coverage,

cell after cell. So far, GP has installed more than 2000 BTS’s around the country for cell to cell

coverage. Grameen Phone has the widest coverage in Bangladesh. The company is planning to

increase the network coverage to 80% of the population from the current 57% within this year.

Grameen Phone launched its service on the independence day of Bangladesh on 26th

March 1997. (See Appendix- A, table:8)

5.1.2 AKTEl (TMIB)

Telecom Malaysia International (Bangladesh) is a joint venture between Telecom

Malaysia and A K Khan & co. TMIB also began operations in 1997 using the GSM technology.

TMIB offers its mobile services under the brand name AKTEL. It operates as a Limited Liability

Company, where the majority shareholder, Telekom Malaysia, own 70% shares, while minority

shares of 30% are owned by A. K. Khan & Co. Bangladesh Limited. The company is now

servicing around 1.8 million customers all over the country.

Aktel has been distinctly ahead in offering the “30 Seconds Pulse” from the first minute of

talk time. Today, The Company boasts the widest International Roaming service in the market

connecting 315 operators across 170 countries. In addition, Aktel is the first mobile operator to

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connect Tetulia and Teknaf, the northern and southern most points of Bangladesh. Aktel was also

the first to provide seamless coverage along the Dhaka-Chittagong highway. With a network

covering all 61 (allowable) districts of Bangladesh, coupled with the first Intelligent Network

(IN) Prepaid Platform in the country, Aktel is geared to provide a wide range of products and

services to customers all over Bangladesh.

5.1.3 Banglalink (Orascom Telecom)

Orascom Telecom Bangladesh, an Egyptian multinational company with market presence

in 11 countries (and market leader in 9 of them) launched their GSM network on the 10th of

February 2005. This company is the last addition to the GSM family of the local market when on

October 20th, 2004, Orascom Telecom announced the purchase of Sheba Telecom with a cost of

US$ 60 million. The company’s re- branding has been under the name of Banglalink with the

leveraging promise to provide the market with quality service at the most affordable prices fitting

to their communications needs.

It is also worth mentioning that an unprecedented success of sales results followed

the commercial launch of Banglalink in early this year. Orascom is currently serving

around 400,000 subscribers. (See Appendix- A, table: 9)

Vision of Banglalink

"Banglalink understands people's needs best and will create and deliver appropriate

communication services to improve people's life and make it easier"

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5.1.4 Tele-talk (BTTB)

State-run Bangladesh Telegraph and Telephone Board (BTTB) operates basic telecom

services, national transmission network and overseas communication. It has a monopoly over

interconnections and the international gateway, in which all other telecommunications operators

depend on to connect to the fixed telephone lines and international calls. All phone operators are

also subjected to a monopolistic control by BTTB that limits revenue sharing1 arrangements. Just

two and a half months back, BTTB had launched their much-awaited mobile phone, Tele-talk

which has generated hype among the potential subscribers. As of now, Tele-talk has a small

customer base of 40,000 with only T&T connectivity. But the major feature of this package is

absolutely free incoming from BTTB which has strongly swayed the market in favor of the new

package.

Market share of the mobile phone operators in Bangladesh

57%

29%

7%6%1%

GrameenPhone

Aktel

Banglalink

CityCell

Teletalk

Source: The Daily Star; Mar 13, 2006

5.2 SWOT Analysis of CityCell

This SWOT Analysis is a result of the knowledge gained working for CityCell.It is a very

important tool for a company for a company to analyze its internal external environment. Now,

the SWOT analysis of City Cell is shown.

1

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5.2.1 Strengths

1. Competitive tariff structure

Price is a big competitive advantage for CityCell. CityCell is the only organization which

is selling CDMA mobile phones with both way T&T facilities at the lowest rate. For example,

the lowest package rate of CityCell is Tk 4,999/= with T&T incoming and outgoing facilities

(‘Alaap Call Me’, pre-paid). With T&T facilities the other competitors are no where near

CityCell. This package has a fantastic and a very innovative feature, Call2Cash, in which any

subscriber of this package can ‘earn’ or collect 0.25 takas per minute in his/her pre-paid

account upon receiving a call from any CityCell mobile.

2. No ‘Busy Network’

Because of enormous number of channels, excess to CityCell mobile phones is very easy.

The rate of call drops is very low. It possesses high quality voice and data transmissions.

3. Advanced technology

CDMA technology is the best technology for telecommunication. World class mobile

operators and world class mobile phone manufacturers are advancing to this new technology.

CityCell is one of the few mobile service providers which are using CDMA technology.

Where as other GSM mobile service provider has to make huge invest or will need time for

transformation. Current CDMA 1X platform paves the way for easier migration to 3G

technology

4. Low Cost

CityCell follows low cost strategies that enables greater profit margin for shareholders. It

tries to cut cost in every possible way to maximize the strengths for future battle.

5. Dedicated & professional management team

Dedicated core staffs who are willing to provide significant labor hours to accomplish

targets.

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5.2.2 Weakness

1. Fewer staff

The number of staffs working for CityCell is not enough at all. Far fewer staff than

actually required in terms of tasks to be completed.

2. New technology

CDMA is the latest technology but it is not widely used. A still more popular option is

GSM. It is more difficult for CityCell to provide international roaming because of few

number of CDMA operators around the globe.

3. Low network coverage

Though CityCell started to provide mobile telecommunication ten years back, it is still in

behind the other operators from the point of nationwide coverage. Grameen phone was able to

use the optical fiber network of Bangladesh Railway through strong lobbying with the past

government for the next twenty five years. That’s why Grameen Phone’s expansion has been

huge, whereas CityCell has covered roughly 58 districts all over the country with a poor

infrastructure.

4. Lack of education

The subscribers are not educated enough to handle sophisticated CDMA mobile handsets

effectively. That’s why proper knowledge is essential to handle these mobile sets.

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5.2.3 Opportunities

1. Advanced technology

Since CDMA technology is the latest in the wireless telecommunication industry, it is yet

to find new potential in the short future.

2. Secured data transfer

Secured data transfer means CityCell has the potential to be the leading player once e-

commerce takes off.

3. Overseas expansion plan

The growing need for across border telecom services at lesser cost (e.g. with neighboring

India, Burma, then onto Thailand, etc) can be an opportunity for CityCell.

4. Acquisition of Singtel

The acquisition of 45% equity stake of CityCell brings more opportunity for CityCell. The

company now has greater capital and more budget to invest on its network facilities. In fact,

of the $118 million investment of Singtel in PBTL, $90 million would be spent in network

expansion plans2.

5. Leadership in telecommunication services

Bangladesh government has already started to provide license to private sectors to set up

land phone. PBTL is the only mobile phone operator with nationwide mobile & fixed license.

With full nationwide coverage and a huge capital investment from Singtel, it is possible to

become the market leader for CityCell.

2

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5.2.4 Threats

1. Technology factor: There is a high degree of acceptance of GSM technology over

CDMA in local market.

2. Legal problems: Tough legislation against easy expansion into regional and

international markets bypassing the state owned BTTB.

3. Newly imposed tax: In the fiscal budget proposed last week, the government has

imposed a Tk. 1200 tax on each and every SIM/RUIM card which would hurt the regional

expansion plans, increase of customer base in the lower segment and the profit motive for

every operator including CityCell.

4. New competitors: International competitors like ‘Warid Telecom’ of Dhabi Group

enters the local market with full coverage and low price, then not only CityCell but also

other mobile operators would be in great trouble. Already Orascom (Banglalink) is giving

other operators a run for money and market share.

5. Global companies: In India global companies like ‘AT&T’ of the United States

and in Eastern Asia ‘Vodaphone’ of the United Kingdom is working well. They might

think to enter Bangladesh with higher capital. If so, it will be a huge threat for all of the

existing operators. There are rumor of AKTEL’s acquisition.

6. BTTB mobile phone: BTTB has already entered the mobile telecommunications

industry (Tele-talk). It might carry unfair Government advantages and cause severe

problems to all other mobile phone operators.

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6.0 Conceptual Model of Mobile Users in Bangladesh

Figure 3 displays a conceptual model of the attitude of the mobile users in Bangladesh.

An understanding the attitude of the youth market of mobile users toward mobile phone services

will be gained within the context of this model. The model has two different parts in it. The first

part exhibits the antecedents or factors (internal and external) influencing the attitude of the

young mobile users; the second part exhibits the attitude and its components (Cognitive,

Affective, and Cognitive) of the young mobile users. (Schiffman and Kanuk, 8th edition). The

study will be carried out based on the conceptual model of attitude.

Figure 3

A Conceptual Model of the Attitude of the Mobile Users in Bangladesh

33

Internal Factors

- Demographic Characteristics

- Psychographic Characteristics

- Behavioral Characteristics

- Perception toward “Mobile Phone”

External Factors

- Media and Advertising

- Brand Image- Service Offerings- Reference Group

Influence

Attitude of the Mobile

Users

-Cognitive

- Affective

- Conative

Consequence/OutcomeFactors/Antecedents

Source: The antecedents/factors, and their proposed relationships with the attitude of the mass market of mobile users were gleaned from a large body of literature and were adapted for this model.

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6.1 Components of the Attitude of Mobile Users

Attitude is a learned predisposition to behave in a consistently favorable or unfavorable

way with respect to a given object (Schiffman and Kanuk, 8 th edition). According to the tri-

component attitude model, attitudes consist of three major components: a cognitive, an affective

and a conative component. By understanding the components of the attitude of young mobile

users, the researcher can better explain or predict their behavior in terms of mobile phone.

6.1.1 The Cognitive Component

The first part of the tri-component attitude model consists of a person’s cognitions, that is,

the knowledge and perceptions that are acquired by a combination of direct experience with the

attitude object and related information from various sources (Schiffman and Kanuk, 8th edition).

This knowledge and resulting perceptions commonly take the form of beliefs; that is, the

consumer believes that the attitude object possesses various attributes and that specific behavior

will lead to specific outcomes (Schiffman and Kanuk, 8th edition). By using a specific mobile

phone service and by collecting information regarding that service from various sources (friends,

internet etc.), a person may form a belief regarding that mobile phone service. If the person has a

positive experience with that brand and hears “good” about that brand from sources (friends,

family), he/she may form a positive belief regarding that brand.

6.1.2 The Affective Component

A consumer’s emotions or feelings about a particular product/brand constitute the

affective component of an attitude (Schiffman and Kanuk, 8th edition). These emotions and

feelings are frequently treated by consumer researchers as primarily evaluative in nature; that is,

they capture an individual’s direct or global assessment of the attitude object (i.e., the extent to

which the individual rates the attitude object as “good” or “bad”) (Schiffman and Kanuk, 8th

edition). It is like asking a young mobile user to evaluate a brand by his/her emotion or feeling

towards that brand; that is, whether he/she holds a good/bad feeling about that brand.

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6.1.3 The Co native Component

Conation, the final component of the tri-component attitude model, is concerned with the

likelihood or tendency that an individual will undertake a specific action or behave in a particular

way with regard to the attitude object (Schiffman and Kanuk, 8th edition). In marketing and

consumer research, the conative component is frequently treated as an expression of the

consumer’s intention to buy (Schiffman and Kanuk, 8th edition). The likeliness to buy a specific

mobile phone service will present the conation of the young mobile users.

Figure 4

A Simple Representation of the Tri-Component Attitude Model

Source: Consumer Behavior (Schiffman and Kanuk), 8th edition

35

Conation

Cognition Affective

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6.2 Antecedents/Factors Influencing the Attitude of Mobile Users

In this study, the researcher is trying to identify the factors influencing the attitude of the

youth market of mobile users. These factors can be internal (such as demographic,

psychographic, behavioral etc.) or external (such as media, advertising, reference groups etc).

Both these factors have combined influence on the attitude (cognitive, affective, and co native) of

youth. Attitudes have a motivational quality; that is, they might propel a consumer toward a

particular behavior or repel the consumer away from a particular behavior (Schiffman and Kanuk,

8th edition). In terms of this study, I can say that - a positive attitude toward a mobile phone

operator may motivate the person to buy that particular brand and a negative attitude toward a

mobile phone operator may motivate the person to avoid that particular brand. Therefore, the

attitudinal changes brought by the internal and external factors in the youth market of mobile

users are very important to investigate for the mobile operators.

Certain external and internal factors/antecedents influence the youth market of mobile

users, which are outlined here.

Table 10: Variables and Attributes

Variables Attributes

Internal Factors 1. Demographic Characteristics Age Gender

OccupationEducation

2. Psychographic Characteristics (Personality)

Innovativeness

Need for UniquenessExploratory Purchase BehaviorVicarious ExplorationUse InnovativenessVisualizers vs. Verbalizers

3. Behavioral Characteristics Usage SituationBenefitsUsage rate

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Loyalty statusService Preference (Pre vs. Post)

4. Economic Consideration

External Factors 1. Media and Advertising Media Preference

Media Exposure (Frequency and Timing)Consumer Promotion Tools (free SMS; buy 1, get 1 free; discount on call-rate etc)

2. Brand Image Present imageBrand evaluation based on various criteria

3. Youth Service Offering GenYo vs. D-Juice vs. Fun Dose Recommendations from Consumers

4. Reference Group Influence Reference Groups:Family MembersFriendship GroupsWork GroupsCelebrities

Source: The attributes of the internal and external variables of the youth market of mobile users were gleaned from a large body of literature. (Schiffman and Kanuk, 8th edition)

6.3 Internal FactorsIn order to understand the attitude of the youth market of mobile users, the researcher has

to consider certain internal factors such as their demographic, psychographic, and behavioral

characteristics. Along with these characteristics, the researcher has to consider their perception

regarding the product “mobile phone” itself. According to the youth market analysis and

consumer research organization, Macro, the importance of identifying target groups in terms of

age, gender, and socio-economic level is self-evident (2004). The relevant internal characteristics

are described below:

6.6.1 Demographic Characteristics

In any study, demographic characteristics are usually considered in the analysis. It generally

includes age, gender, occupation, household income, etc. As the attitude of mobile users differs

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from segment to segment, it is very important for the researcher to get individual picture of each

demographic segment separately. The demographic characteristics considered in this study are

described below.

Age

Age is profoundly related with the maturity of the person and the issues that basically

structure person’s likings and disliking in behaving socially. Age has important impact in

determining the consumer behavior towards the market (MACRO). It is mostly evident in the

purchasing behavior differences regarding the age discrepancies. As the study is based on the

youth market, the age limit is considered here from 13 to 28

Gender

The differences in consumption behavior of people to some extent greatly relevant with

gender differences (MACRO). It is to find out whether the consumption differs in gender

variation and the consumption pattern as well as overall attitude towards the youth market.

Occupation

As child-rearing practice figures persons norms in the very early stage of human life,

occupation shapes the attitude in the matured stage. It influences person in the socialization

process where all the social functions are involved. Thus here the occupation is to find out the

person’s occupational influences.

6.6.2 Psychographic Characteristics

To understand the attitude of young mobile users, the researcher has to consider certain

psychographic characteristics such as social class, certain personality traits etc. These

characteristics influence the attitude of the youth market.

Innovativeness

Consumer innovators are those who are likely to be the first to try new products, services, or

practices (Schiffman and Kanuk, 8th edition). The market response of such innovators is often a

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critical indication of the eventual success or failure of a new product or service (Schiffman and

Kanuk, 8th edition). Therefore, this trait is crucial for this study.

Social Character

As used in consumer psychology, social character is a personality trait that ranges on a

continuum of from inner-directedness to other directedness (Schiffman and Kanuk, 8th edition).

Inner-directed consumers tend to rely on their own inner values or standards in evaluating new

products and other-directed consumers tend to look to others for direction on what is right or

wrong (Schiffman and Kanuk, 8th edition). This trait is significantly related to the youth market of

mobile users.

Need for Uniqueness

Consumers who have “need for uniqueness” (NFU) seek to be unique. For these people

conformity to others’ expectations or standards, either in appearance or in their possessions, is

something to be avoided (Schiffman and Kanuk, 8th edition). This is of course an important trait

to consider in order understanding youth segment.

Exploratory Purchase Behavior

Exploratory purchase behavior refers to switching brands to experience new and possibly

better alternatives (Schiffman and Kanuk, 8th edition).. This is a very common tendency among

the young mobile users who always seek for new and attractive features in their mobile phones.

Vicarious Exploration

Vicarious exploration refers to securing information about a new or different alternative and

then contemplating or even daydreaming about the option (Schiffman and Kanuk, 8 th edition).

Looking for information regarding new offers, features, options etc is very common among youth

segment.

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Use Innovativeness

Use innovativeness refers to using an already adopted product in a new or novel way

(Schiffman and Kanuk, 8th edition). The youth market today is a segment of society that has been

active in transforming the application and use of digital technologies in unprecedented ways

(Selian, 2004). The use-innovativeness trait is particularly relevant to technologic products, in

which some models offer an abundance of features and functions (Schiffman and Kanuk, 8 th

edition).

Visualizers vs. Verbalizers

Visualizers refer to consumers who prefer visual information and products and verbalizers

refer to consumers who prefer written or verbal information and products (Schiffman and Kanuk,

8th edition). Understanding visual vs. verbal preference among the mobile users will help the

mobile operators to design advertising and select media according to the choice of the segment.

6.6.3 Behavioral Characteristics

Behavioral characteristic is an extremely popular and effective form of segmentation

(Schiffman and Kanuk, 8th edition). By understanding the behavioral characteristics, the

researcher will get to know young mobile users usage pattern, awareness, loyalty etc., which in

turn influence the attitude of this segment. Thus, behavioral characteristics play an important role

in understanding the attitude of the youth market of mobile users. Under the behavioral

characteristics, the researcher has considered following attributes.

Usage Situation

Marketers recognize that the occasion or situation often determines what consumers will

purchase or consume and for this reason, they sometimes focus on the “usage situation” as an

important behavioral characteristics (Schiffman and Kanuk, 8th edition). Some situational factors

that might influence a purchase or consumption choice include - time (when), objective (why),

location (where) and person (for whom). To understand the youth market of mobile users, this is

a very important behavioral attribute.

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Benefits

Marketing and advertising executives constantly attempt to identify the one most important

benefit of their product or service that will be most meaningful to consumers (Schiffman and

Kanuk, 8th edition). Examples of benefits that are commonly associated with mobile phones are

communication, entertainment, information, social status etc. By recognizing the key benefits of

mobile phone among the youth market, the mobile operators can focus more on those specific

features and improve them.

Usage rate

Usage rate differentiates among heavy users, medium users, light users, and nonusers of a

specific product, service, and brand (Schiffman and Kanuk, 8th edition). To understand the youth

market of mobile users, it is important to identify their usage rate of mobile phone.

Loyalty status

Marketers often try to identify the characteristics of their brand loyal consumers so that they

can direct their promotional efforts to people with similar characteristics in the larger population

(Schiffman and Kanuk, 8th edition). Other marketers target consumers who show no brand loyalty

(brand switchers) in the belief that such people represent greater market potential than consumers

who are loyal to competing brands (Schiffman and Kanuk, 8th edition). To identify the loyalty

status of the youth market of mobile users, it is very important for the mobile operators to focus

on this attribute.

Service Preference

All mobile operators have two major service categories, post paid and pre-paid. In post-paid

service, the subscribers have the facility of paying the bill and line rent at the end of the month.

On the other hand in pre-paid service, the subscribers enjoy the benefit by purchasing pre-paid

cards of different amounts starting from Taka 50/- to 600/-.

In this study, the researcher will ask the respondent about the type of service category

(post paid or pre paid) he/she uses. This way the researcher will be able to find out the service

preference of the mobile users in Dhaka city. Then, the researcher will also try to find out the

reason of the subscriber behind preferring the pre paid or post paid. This will help the researcher

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to know the features that inspired the subscriber to select one particular service category. After

that, by asking the reason of not using the other service category, the researchers will come to

know about the flaws of that particular category. Thus, it will help the product development

department to redesign the category and to be a preferable one as the other one.

6.6.4. Economic Consideration

In this study, the researcher will asked the respondents about their economic condition

regarding their use of mobile phone. This would help the researcher to know more about their

expense pattern. To know this, the researcher would ask about the person who bought him/her the

current mobile connection, the person who normally bears their regular mobile expense, and even

who is going buy him/her the next mobile. This way, the researcher can get idea about economic

condition of the prospective buyers of the new mobile package or any value added services

targeted towards the people.

6.7 External Factors

External factors include promotional characteristics, which constitutes media and

advertising, brand image, package offering, and service variety. These are mostly the services

offered by the mobile operators in order to influence the decision making process of the market.

Another external factor is reference group influence of the market of mobile users. This

constitutes family, friends etc. Audrey N. Selian has also mentioned the forces of peer pressure

and conformity in his research on youth market of mobile users in USA (2004).

6.7.1 Media and Advertisements

By giving advertisements in various media, the mobile operators actually make people

aware about their different services. Therefore, advertising is the non-personal communication of

information, usually paid for and persuasive in nature, informing about products or services by

identified sponsors through various media (Banglapedia, 2000). On the other hand, media refers

to communication vehicles such as newspapers, magazines, radio, television etc. (Hairong Li,

2003)

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Media preferences

The researcher will try to find the media preference of young mobile users. This will help to

select media to promote the new product targeted towards the youth market of mobile users.

Consumer Promotion Tools

The mobile operators often offer different types of consumer promotion tools in order to

attract their targeted market, like free SMS, buy 1 get 1 free etc. In this study, the researcher will

find the promotional tools that are preferred by the young mobile users. This will help the mobile

operator to select an appropriate promotional strategy for this segment.

6.7.2 Brand Image

Brand image is the sum of all tangible & intangible traits – the ideas, beliefs, values,

prejudices, interests, features & ancestry that make it unique. A brand image visually &

collectively represents all internal & external characteristics – the name, symbol, packaging,

literature, signs, vehicles & culture. It’s anything & everything that influences how a brand or a

company is perceived by its target market. (www.brandwerksgroup.com)

At present, there are four mobile phone service providers operating in Bangladesh. They

are namely, AKTEL, Grameen Phone, CityCell and Bangla link. Each of companies has

differentiated itself on the basis of frequent service offerings, attractive service at lower cost,

strong network coverage, and fabulous package offerings at lower price.

Current Image

As far as the study is concerned, the researcher will ask the respondent to rank the four

mobile operators, in terms of their established brand association in the market. This will help the

researcher to find out the current image of each of the mobile operators perceived by the mass

market of mobile users.

Brand Evolution Criterion

In this study, the researcher will ask the respondents to express their perception about the

features of different mobile operators based on different criterion. For example, the respondent

will be asked to rank the features like, initial price, pulse rate, promotional campaign, network

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coverage, or special offers etc. offered by the mobile operators. This will help the researcher to

identify the most and least preferred features of a mobile phone service while making purchase

decision.

6.7.3 Group Influence

Youth market of mobile user is very much influenced by credible, attractive or powerful

reference group. It enhances and induces their attitude and behavior change. It might be friends or

family but they must be perceived and persuaded as powerful and credible (Schiffman and

Kanuk, 8th edition).

Friendship Group

This is the most informal and important referral group in purchasing decision influencer over

youth. Every youth more or less belongs to any friendship group where they are very much

influenced by their consent and likeness.

Family Members

In Bangladesh the social and cultural infrastructure denotes to tight family bonds that clearly

advocates the purchasing decision influencer of mass market. Moreover, socio economic

condition of Bangladesh depicts the role of families over the youth from the perspective of

financial support.

Work Group

The formal work group consists of individuals who work together as part of a team and thus

have a sustained opportunity to influence each other’s consumption related attitudes and actions

(Schiffman and Kanuk, 8th edition). In Bangladesh working opportunity as part time profession is

not available but here in the study this influencing factor will focus to identify the impact of such

group over the junior executives who have just entered in the job market.

Celebrities

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Celebrities, particularly movie stars, TV personalities, popular entertainers, and sports icons

provide a very common type of reference group appeal (Schiffman and Kanuk, 8th edition).

Particularly in youth segment it has an immense influence due to their young age emotional

interferences. It is highly observed in this segment that people are continuously search for

advocating by the prominent personalities.

7.0 Findings and Analysis

7.1 Preferred Operators

Table: 11

Operators 80 (respondents)

GP 40

AKTEL 18

Bangla Link 14

CityCell 6

Tele Talk 2

49%

22%

18%8% 3% GP

AKTELBangla LinkCityCell

Teletalk

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Figure: Percentage of Preferred Operators

The figure and the chart indicate that most of the respondents are the subscribers of

GrameenPhone. After GP, the respondents use AKTEL and Banglalink However, they do not

seem to prefer other operators like, Teletalk and CityCell that much.

7.2 Usage Situation

Table: 12- Occasions of using the mobile phones

Attributes 80

(respondents)

To contact friends & family 34

To make emergency calls 22

To receive others' calls 24

42%

28%

30%To contact friends &familyTo make emergencycallsTo receive others'calls

Figure: Percentage of Occasions of using the mobile phones

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The figure and the chart indicate that 42% of the respondents use mobile to contact their

friends and family. 30%, to receive other calls and 28% people use mobile to make emergency

calls.

7.3 Usage Rate

Table: 13- Average talk time duration

Attributes

% of 80 (r)Less than 15 sec. 2.5615-30 sec 10.5131-60 sec 25.131- 5 min 48.46More than 5 min 13.33

The comparison table and chart indicates that most respondent (48.46%) talk 1 minute to

5 minutes. However, some talk for 31sec to 1 minute.

Table: 14 - Average SMS per day

The comparison table and the chart above show that young people at every level love to

send SMS (short message service). Mostly (62%) send less than 5 SMS per day. However, some

29% send more than that (5-10).

Attributes

% of 80(r)Less than 5 61.795 - 10 29.2311 - 15 4.62More than 15 4.36

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7.4 Loyalty Status

Table: 15 - Reasons of switching the current line

Attributes 80(respondents)

New attractive packages 24

Current line is expensive 16

Network problem 24

No GPRS facility 6

Friends' influence 8

Personal Problem 2

30%

21%31%

8% 10%

New attractivepackages

Current line isexpensive

Network problem

No GPRS facility

Friends' influence

Figure: Percentage of reasons of switching the current line

When I asked people about the reasons behind changing the current line, (if they decided

to), most of them mentioned about the new attractive packages offered by different companies.

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Like, most of the school students want to change their present mobile phone line for new

attractive package offers. Apart from this, many students in think that their current line is

expensive, where executive levels think the same. Most of them are not brand loyal and switch

brands whenever there is a better offer in the market.

7.5 Benefit

Table: 16- Perception towards mobile phones

Attributes 80 (respondent)

Communication device 36

Information device 18

Entertainment device 12

Social status symbol 14

44%

23%

15%

18%

CommunicationdeviceInformation device

EntertainmentdeviceSocial statussymbol

Figure: Percentage of Perception towards mobile phones

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The comparison table shows that maximum respondent perceive mobile phone as a

communication device. More than 44 % respondents think the same. 23% respondents also

perceive it as an information source. However, 15% use their mobile phones as the source of

entertainment source. Again, 18 % consider mobile phone as a social status symbol.

Recently people are getting familiar with the different functions of mobile phone and

those are not yet to become a motivating factor for the subscribers. That is why people still

perceive mobile phone as a communication device.

7.6 Service preference

Table: 17- Use Pre-paid or Post-paid

Attributes 80(respondents)

Pre-paid 64

Post-paid 16

Pre-paid80%

Post-paid20%

Figure: Percentage of Service preference

The comparison table shows that maximum young mobile users prefer pre-paid mobile

service than post-paid. Everybody knows that Post–paid is expensive than Pre-paid. Moreover,

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Pre-paid gives some additional facilities to the students, who carries the regular expense of using

a mobile phone. A big portion in university level, use Pre-paid, where the office executives’ use

post-paid. Again, the young earners wants to talk much but don’t want to make mandatory

monthly line rent due to communications. At the moment City Cell has 85% pre-paid uses and

15% post-paid users.

7.7 Economic Consideration

Table: 18 - Carrier of the regular mobile phone expense

Attributes 80 (r)

My Parents 30

Myself 46

Relatives 2

Brother / Sister 2

37%

57%

3%3%

My ParentsMyself

RelativesBrother / Sister

Figure: Percentage of Carrier of the regular mobile phone expense

The chart indicates that almost 57% of the respondents carry their regular expense using a

mobile phone, without taking any help from their parents. They carry their regular mobile phone

expense from their personal income. 37% of the respondents are mostly dependent on their

parents for their regular mobile phone expenses, as students at this level usually do not have any

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personal source of income. However, some of them carry own expenses by engaging themselves

in part time jobs.

7.8 Media Preference

Table: 19

Media80 (r)

Television 24

Newspaper 34

Magazine 2

Billboard 20

others 0

I asked the respondents about their top 3 preferred media. This would help the mobile

operator to select the media for any offering targeted towards the segment. The findings show

that, Newspaper is their first priority, then Television is the second, and then Billboard is their

third priority. It implies that, maximum respondents like to go for detail information in

Newspaper than visual image in Television.

Therefore, I can conclude that, Newspaper would be the best for giving advertisements

with detailed information and Television and Billboard can be preferred for informing, creating

awareness, and giving reminders.

7.9 Consumer promotion

Table: 20 - Consumer promotional tools

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Attributes 80(r)

Free talk time 24

Free SMS 17

Discount card 25

Buy 1, get 1 free 6

Free ring tone download 8

30%

21%

31%

8%

10%Free talk time

Free SMS

Discount card

Buy 1, get 1 free

Free ring tonedownload

Figure: Percentage of Consumer promotional tools

I asked the respondents about their most preferred consumer promotion tool that they

would like to have with their mobile phone connection. I find that students in both private and

public universities want “free SMS” the most. Sending and receiving SMS have become a new

trend among the youth group. Sometimes sending a SMS is enough than making a call. Students

in this level seem to know it very well. The chart also shows that most of the respondent want

free talk time and free SMS as promotional tools. I got the same result from the junior executive

level.

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It implies that young people enjoy the free talk time offered by the mobile operators from

time to time. Besides this, they also want various discount cards to get discounts in concerts, food

courts etc. Buy1, get 1 free and discount card offers are also popular among the young people.

7.10 Brand Image

7.10.1 Brand image of Telecom companies

The researcher has used the projective technique (word association) in order to identify

the brand image of the present mobile phone companies in Bangladesh. While taking the in-depth

interview and questionnaire survey, the respondents were asked to associate a word that comes to

their mind when a company name is uttered. Word association is an effective and easy method to

recognize the image of any brand, and that’s why the researcher has applied it.

Grameen Phone is the no. 1 telecom company in Bangladesh. According to 80

respondents of this survey, Grameen phone has a very strong brand image. They consider

Grameen Phone as the “Boss”, which has huge coverage and good network. Even when I divided

the sample into School and College, University and Junior Executive level, their perception

about Grameen Phone remains the same.

AKTEL is the most dynamic GSM service provider in the country. After GP, AKTEL has

second highest no. of subscribers in Bangladesh. All respondents of the survey consider AKTEL

to be the most “Competitive” one and “Clearly ahead”, which is offering the service with a

convenient “Pulse rate, and “Lowest call rate”.

CityCell is the first telecom company, and the only CDMA service provider in

Bangladesh. However, the brand image of this company does seem to be in a good position.

According the 80 respondents, CityCell is the “Cheating cell” and the “Worst” one. They also

think that CityCell is providing the service at the Lowest Rate.

Banglalink is the most upcoming company among the cellphone service providers in

Private sector in Bangladesh. Even though, Banglalink is in its introductory stage, it could build

the brand awareness with in a very short time. According to the 80 respondents at different levels,

Banglalink is the Upcoming Company, which is offering the highest no. of Free SMS to its

subscribers. They also think, Banglalink Can do better in future. In addition, the respondents also

consider Banglalink to be the most Competitive one among the other telecom companies.

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Here, the researcher does not compare TeleTalk because TeleTalk is new in market and

the respondents did not gave sufficient information about the compny.

Table: 20 Brand images of Telecom companies

Companies Brand Image

Grameen PhoneAll (%)

AKTELAll (%)

CityCellAll(%)

BanglalinkAll (%)

Huge Coverage 21.47 1.59 2.3 0.49

Good Network 25.94 2.83 3.3 0.29

The Boss 11.8 7.1 2.44 1.08

Clearly Ahead 11.76 17.49 1.15 1.47

Competitive 6.58 14.49 5.74 7.95

Can do better 5.74 9.79 8.33 12.17

Cheating Cell 5.08 2.48 4.25 4.43

Lowest call rate 2.48 16.58 21.02 3.73

Upcoming 2.41 6.13 7.22 20.01

Pulse rate 2.28 20.29 9.07 0.29

Worst 1.37 0.76 30.00 7.95

Free SMS 2.11 0.48 5.18 35.13

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7.21 Brand Evolution

Table: 21 - Features to consider before buying mobile phone connection

Attributes80 (%)

Per minute call rate 18.41

Network coverage 15.04

Pulse duration 14.87

TNT access 9.09

Initial price 7.35

Customer service quality 7.24

No frequency problem 6.73

Availability of cards 5.78

18%

15%

15%9%

7%

7%

7%6%

Per minute callrateNetworkcoveragePulse duration

TNT access

Initial price

Customerservice qualityNo frequencyproblemAvailability ofcards

Figure: Percentage of Features to consider before buying mobile phone connection

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I asked the respondents about the features that they consider before buying a mobile

phone connection. The chart shows that most of the respondents consider some common features

before buying a mobile phone service. The first feature they all consider is “per minute call rate”.

The company that offers the lowest per minute call-rate is the most attractive company to them.

At the same time, they consider the network coverage and pulse duration. Then they check the

network coverage, as they may often need to contact people living outside Dhaka. However, 10%

look for the T&T access facility, as they may need to contact people who use only T&T. The

table shows that some respondents are very rational in buying their mobile connection; they

consider per minute call rate and network coverage. These two factors are directly relevant with

the mobile phone services.

7.11 The Reference Group

Table: 14 - The Reference Group of buying mobile connection

Attributes 80 (%)

Myself 48.81

Friends 26.33

Family Members 21.21

Celebrities in Ads 1.83

Colleagues 1.46

49%

26%

21%

2%1%

Myself

Friends

Family Members

Celebrities in Ads

Colleagues

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Figure: Percentage of the Reference Group of buying mobile connection

Now it is time to know the people, who mainly influenced someone about buying mobile

connection. The comparison table indicates that 49% respondents depend on self-instinct while

shopping for mobile phones. However, they also ask for advices from reference groups. Whereas

some rely on their friends. Family is a great influencer for almost 20% respondents. When 2/3

members in a family use the mobile connection of a particular company, then they will influence

other to buy the same line because of FNF call rate which is the lowest rate.

8.0 Recommendations

In this study, the researcher had to gather information from about 80 respondents, which

certainly reflects their behaving pattern towards mobile phone. The researcher can offer some

suggestions for the new mobile package or any value added services targeted towards the youth

market of mobile users, which are based on the findings from this field survey.

8.1 Package feature

Young people within the age range of 13 to 28 years usually make up to 10 calls per

day.(Table 13 and 14) Moreover, in each call they prefer to talk at least 1 minute and even

more 5 minutes in many cases. Therefore, CityCell should offer lower call rate with peak, off

peak, super off peak option in the mobile package targeted towards the youth segment.

The users do not have many options, they tend to go for the cost effective one, but not

for the unique one. However, people love uncommon things. However, they always look for

attractive offers whether they are common or not (table: 15). That is why, if CityCell offer

customized services; which are cost efficient, mass segment will buy them. The young

people have high literacy, familiarity, and competency with technology. They like to deal

with technical devices and want to keep up-to-date information regarding new technologies.

CityCell can take this advantage and can direct most of their service towards this lucrative

market.

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The analysis indicates that young mobile users are use-innovative. The youth

segment treats mobile phone as a communication and information device (table: 16) This

implies that they prefer use it as a source of information and entertainment, like cricket

update, dictionary, downloading ring-tone/logo, providing news headlines, sending e-mail,

transferring balance and movie schedule etc. If CityCell offer more services, youth market is

highly likely to adopt them. However, the new services have to be cost efficient or else

young users will not use them.

It is found that, people within the age range of 13 to 28 loves to talk to their friends

and family members (table: 12). Therefore, CityCell should offer lower call rate for the

family and friends number and SMS chat, group SMS etc. at a lower rate.

Young people prefer to use pre-paid than post-paid (Table: 17) Therefore, the youth

package should have the facilities of the pre-paid mobile connection. Such as no monthly

line rent, card facilities, VAS etc.

Before offering any new value added service, CityCell need to think about the person

who regularly carries the mobile phone expense of the young mobile users. The researcher

has found that 37% of the young mobile users’ parents regularly carry their mobile expense

which is a big portion of the total respondents. If the parents find the offered VAS beneficial

for their children, only then they would accept their children to spent money for that.

However, when the young user pays the regular phone bill, then anytime he/she can decide to

use the VAS.

8.2 Media selection

People love to gossip, wherever it is; they love to get things free, whatever it is.

Therefore, CityCell should offer free talk time, SMS, ring tones from time to time. They can

also offer discounts card to buy things at lower price. For that CityCell should prefer

newspapers more than TV and billboards as this are the respondents’ first priority. (Table:

19)

8.3 Brand image

Young mobile users always keep updated information of new mobile phone services.

This helps them to evaluate all the offers available in the market and buy the best

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one.Therefore, the brand and product image of the company are important, and the mobile

operators should work on it before offering a new one.According to the respondents

CityCell’s network as well as coverage is not very good. So, the company should work on it.

A huge portion of the young people does not even know about GenYo offered by

CityCell. The people who know about it do not find it interesting. It is because CityCell itself

does not have a good image in the market. Even the survey indicates that people who want to

be unique and want to buy exceptional products/services do not have a positive attitude

towards CityCell. Therefore, CityCell should try to improve their company image before

offering any new package or option. Young mobile users always keep updated information of

new mobile phone services. This helps them to evaluate all the offers available in the market

and buy the best one. Therefore, the brand and product image of the company are important,

that largely depend on media sector.CityCell should expose their new packages and up

coming features in vast way.

8.4 Brand Evolution

The analysis indicates that 18.41% respondents consider call rate and 15% consider

pulse duration before buying a mobile connection (table: 21). Therefore, CityCell should

offer lower call rate with peak, off peak, super off peak option in the mobile package with

minimum pulse rate targeted towards the youth segment.

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9.0 ConclusionIntroduction of sales tax on Subscriber’s Identification Module (SIM/RUIM) has put

negative impact on the country’s private cell phone business. Bangladesh Telecommunications

Regulatory Communication (BTRC) has conducted a survey to assess the impact of the

introduction of the sales tax on SIM, first proposed at the rate of Tk. 1200 in the budget for fiscal

2005-06, and the later lowered to Tk. 900.

The BTRC has recently conducted the survey on connections provided by four private and

a state-owned operators for the months of May and June. It apprehends that the new sales tax on

the SIM might further lower the growth of the local call phone market in the coming months.

This is a sign that the mobile companies are going face a tough time. Moreover, people

mainly prefer to use mobile phone because of its initial low price. Now the situation has changed.

Now the mobile operators have to come up with better package features and services. In order to

increase the growth rate, they can offer packages in installments. This would help them to get

fixed income people as their subscribers. However, the people who wanted to buy a connection;

would buy it anyway. Nevertheless, this added VAT would make people think twice before

buying a mobile connection or even switching the brands. Therefore, the mobile companies

should work on their existing packages and come up with new VAS and packages.

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