Final Presentation Mkt 412

8/3/2019 Final Presentation Mkt 412

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Shamima Akhtar.051 535 030 M Mahmudul Hasan..073 330 530

Sharmin Akhtar Khan082 635 030 Rumanam Ajid.082 341 030 Shams Arefin..091 051 7030


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Watson, come here: I want you. This was the

first message evertransmitted from one placeto another, through a device calledtelephone.


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The telecom sector in Bangladesh has emerged rapidly. Citycell (Pacific Bangladesh Telecom Limited) is the first mobile

communications company of Bangladesh (1990). It is the only CDMAnetwork operator in the country.

Citycell had a virtual monopoly until 1996 when the government gave

licenses to three more companies to operate cell phones in Bangladesh-Grameenphone Limited (GP), Telecom Malaysia International BangladeshLimited (AKTEL), and Sheba Telecom (Banglalink)

On March 26, 1997, GrameenPhone launched its service on theIndependence Day of Bangladesh. They were the first to introduce GSM

technology in country. There are 6 mobile phone operators in Bangladesh. These are:

Grameenphone Ltd., Robi Axiata(AKTEL), Banglalink, Citycell, Teletalk andAirtel (Warid).

The number of mobile phone subscribers in Bangladesh as of February2009 was 45.21 million, rising to 76.43 million at the end of June 2011


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A large segment of the country's population now utilizesubscription to more than one operator.

The telecom industry of Bangladesh is varying its product in termsof augmented features and benefits to appeal to distinctive

segments of customers within that one segment, while all theplayers in the industry are attempting to compete with each otherin all segments.

The customers of the telecom industry are being exposed totelecom products, and combined with constantly reducing call

rates resulting from competition. Business Monitor International (BMI) has predicted that by the end

of 2011, mobile subscribers will reach figures of around 115 million.


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1.1 1.83.9 8.9

17.1

28.3

43.7

52.43

68.64

0

10

20

30

40

50

60

70

80

2002 2003 2004 2005 2006 2007 2008 2009 2010

Subscribers in million

Source: CRAB


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40.69%

32.77%

32.04%

19%

12%

6%

3%

2010

2009

2008

2007

2006

2005

2004

percentage of growth

Market Growth

Radical changesat growth rate

in2007-2008


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BD subscriber growth to remain oneof the fastest in Asia

Market penetration % 2009

Source: AT Capital Research; Note: Size of bubble denotes relative population of country.


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Relative wealth e.g. GNP per capita Quality, availability, and pricing for wire line

services. Innovative service offerings The intensity of competition Variations between national markets

The price of a handset Acquisition price of a SIM


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GP has been the market leader at a stretch formore than a decade

The mobile telecommunication industry had

68.64 million subscribers in December 2010 ofwhich GPs subscriber base stood at 29.97

million as of December 2010 which is 44% of

the total subscriber in the Industry On the other hand, Airtel has achieved 6%,

ROBI Axiata 18%, Banglalink 28%, Citycell 3%,Teletalk 2% market share as of December 2010


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Operators/month

Jul 10 Aug 10 Sep 10 Oct 10 Nov - 10 Dec - 10

GP43% 44% 44% 43% 43% 44%

Banglalink 28%

28% 28% 28% 28% 28%

Robi Axiata 19% 18%18% 18% 18% 18%

Airtel5% 5% 5% 6% 6% 6%

Citycell3% 3% 3% 3% 3% 3%

Teletalk2% 2% 2% 2% 2% 2%

Total 100% 100% 100% 100% 100% 100%


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1.50% 1.90% 2.30%2.50%

5.20%6.10%

7.80% 8.00%

10%

2002 2003 2004 2005 2006 2007 2008 2009 2010

Telecoms contribution to Govt Revenue (%)

Source: AMTOB & NBR


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Access to communications Mobile Remittance

Productivity Reduce transaction costs Provide opportunities for business expansion Encourage entrepreneurialism Improve in search for employment Facilitate mobile banking


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source : world bank; Qiang 2009

Economic impact of the mobile communications industry in 2009 as a % of total GDP, by type of impact


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Porters Five Forces Barriers to Entry:High competition creates low entry barriers.

Bargaining Power of Suppliers:The bargaining power ofsuppliers in the industry is strong in some cases if not in all

Bargaining Power of Customers: In our country the customershave absolute bargaining power

Threats from competitors:high competition

Threat from Substitute Products:

. In case of Bangladesh mobile telecom industry, substitutes exist in theform of government land lines and some upcoming PSTN operators.Some additional substitutes include wireless Internet providers such asWiMax based companies


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Product (services)

Core

Phone call and Text message Supplementary

Voice SMS

Mobile banking Internet

Bill payment


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Price A pre-paid connection can be purchased within 200

Taka, where a post-paid connection can be purchased

within 1000 Taka. But on an average it's now 1 Taka per minute for voice

call. SMS charge less than 1 Taka per SMS for someoperators

Internet service. It can be on volume basis (dependanton bytes downloaded or transferred) or at fixed rates.In most cases, the average rate per kilobyte is aroundTaka. 0.02.


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Promotion

Mobile companies use very aggressive promotionalcampaign

Each company follows different strategies for theirpromotional campaign.

Telecom companies have captured a major segment

of advertising among all the products and services. Sponsoring various events is another promotional

strategy followed by these companies.


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Place

Distribution facilities almost everywhere in

Bangladesh Own customer care centers almost in all the

important areas

One or more authorized dealers in every district

Recharge centers are available where ever isneeded.


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Process

All the companies have well designed process to

provide the service properly. Customer care centers are available to solve the

problems of the customers if thy have any.

Call centers are being a very important part

developing relationship with the customers.

Role of high tech facilities and degree ofautomation of the service is noteworthy.


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Physical Environment

Physical environment is not important for the

customers for availing the telecom facility. Even though the customer care centers are with

good environment.

Employees are well dressed and well mannered.


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People

Customer care employees are cooperative and

well mannered. Call center employees are well trained and are

suitable for the job design.

Other employees are not the subject of matter for

the customers.


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Productivity and Quality

Each telecom company has their specific

productivity and quality for their targetedcustomer segments.

Productivity and quality includes constantmaximum network coverage, call tariff and

packages.


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Expand Valued Added Services (VAS) Convergence will become more important

Infrastructure Sharing Public Private Partnerships (PPPs) Lower Broadband Costs Digital Bangladesh Possible Tax Cuts 3G/4G


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Clarity on process and terms of Telecomlicense renewal

3G networks are expected to significantlyenhance user experience 3G License uncertainty


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Bangladesh mobile telecoms consumerssuffer one of the highest levels of taxation

The recent amendment to the Telecoms Actmight increase the risks of arbitraryregulatory interventions.


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Flexibility in Government Regulations Prospective IPOs by other players industry

like GP Offering post-paid connections to young-

adults Contract Cell Phones Merger and 3G & 4G viability Mobile Apps


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Rapid Mobile Phone Growth Should Continue Market growth will be supported by both the introduction of

3G networks(likely 2011 or early 2012) as well as prospective

further cuts in Broadband wholesale costs and intro ofsecond submarine fibre optic cable. Aggregate revenue growth for Telecoms sector as a whole

likely to remain robust.


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Final Presentation Mkt 412

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