This is GrameenphoneVision and Values

Ten Years of Empowering PeopleRefreshed Image

The Shareholders�Key Financial Figures�

Contribution to National Exchequer�Directors' Report�

Profile of the Directors�Letter from the CEO�

Profile of the Management Team�Organizational Chart�

Corporate Governance�Leadership Development�

Major CSR Initiatives in Health Sector�Ensuring Network Quality�

Easily Accessible Customer Service

CONTENTS

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Grameenphone Ltd., the

largest telecommunications

service provider in

Bangladesh, received its

operating license in

November 1996 and started

its service from March 26,

1997, the Independence Day

of Bangladesh.

Now, after 10 years of

successful operations,

Grameenphone is the largest

mobile phone service

provider in Bangladesh, with

more than 14 million

subscribers as of July 2007.

Grameenphone provides

services to rural and urban

customers across

Bangladesh, where mobile

telephony is acknowledged

as a significant driver of

socio-economic

development, both for

individuals and the nation.

2 3

We exist to help our customers get the full benefit of

communications services in their daily lives. We want to make it easy

for customers to get what they want, when they want it.

"WE ARE HERE TO HELP"Our Vision

Our Values

We are practical. Everything we produce should be easy to understand and use. Because we never forget we are trying to make our customers' lives easier.

MAKE IT EASY

We are creative. We bring energy and imagination to our work. We want to be a partner in the development of our community. We are passionate about our business, customers and our country.

BE INSPIRING

Everything we set out to do should work. If it does not, we are there to put things right. We are about delivery, not over promising - actions not words.

KEEP PROMISES

We acknowledge and respect the local culture. We are respectful and professional in regard to all our interactions, both internally and externally. We are open, helpful and friendly.

BE RESPECTFUL

Grameenphone Ltd., the

largest telecommunications

service provider in

Bangladesh, received its

operating license in

November 1996 and started

its service from March 26,

1997, the Independence Day

of Bangladesh.

Now, after 10 years of

successful operations,

Grameenphone is the largest

mobile phone service

provider in Bangladesh, with

more than 14 million

subscribers as of July 2007.

Grameenphone provides

services to rural and urban

customers across

Bangladesh, where mobile

telephony is acknowledged

as a significant driver of

socio-economic

development, both for

individuals and the nation.

2 3

We exist to help our customers get the full benefit of

communications services in their daily lives. We want to make it easy

for customers to get what they want, when they want it.

"WE ARE HERE TO HELP"Our Vision

Our Values

We are practical. Everything we produce should be easy to understand and use. Because we never forget we are trying to make our customers' lives easier.

MAKE IT EASY

We are creative. We bring energy and imagination to our work. We want to be a partner in the development of our community. We are passionate about our business, customers and our country.

BE INSPIRING

Everything we set out to do should work. If it does not, we are there to put things right. We are about delivery, not over promising - actions not words.

KEEP PROMISES

We acknowledge and respect the local culture. We are respectful and professional in regard to all our interactions, both internally and externally. We are open, helpful and friendly.

BE RESPECTFUL

5

Once considered a fancy gadget for the elite, the mobile phone has been transformed into an essential tool for all. Mobile phones are now empowering people from all groups in all areas of Bangladesh.

Grameenphone Ltd. received its operating license in November 1996 and started its service from March 26, 1997, the Independence Day of Bangladesh. The shareholders established the company realizing the important role telecommunications can play in economic development: Connectivity translates into productivity. They also made a commitment that "Good Development is Good Business".

Grameenphone is a unique international joint venture between Telenor AS (62%), a leading telecommunications company of Norway, and Grameen Telecom (38%), a not-for-profit company in Bangladesh, working in close collaboration with the micro-credit pioneers Grameen Bank and Professor Muhammad Yunus, the Nobel Peace Prize winners in 2006.

Entrepreneur Iqbal Quadir first had the idea of providing mobile telephony to the poor of Bangladesh. His early discussions with Professor Yunus later resulted in launching the internationally acclaimed Village Phone Program, coupling micro-credit with mobile telephony to make telecommunications accessible to the rural poor.

The shareholders also contributed with their unique strengths. Being at the forefront of developing and delivering modern telecommunications facilities for more than 150 years, Telenor provided the managerial expertise and technological know-how to set up a world-class mobile phone operation in an emerging market. On the other hand, Grameen Telecom provided the knowledge and deep understanding of the local economy.

MAKING IT AFFORDABLE

Now, after 10 years of successful operations, Grameenphone is the largest telecommunications service provider in Bangladesh. Grameenphone provides services to rural and urban customers across Bangladesh, where mobile telephony is acknowledged as a significant driver of socio-economic development, both for individuals and the nation.

From the beginning, the goal was to offer affordable mobile phone services to as many people as possible. However, the challenges were significant. The country had a very large population with a very limited purchasing power and poor infrastructure. Grameenphone saw an opportunity to utilize wireless technology to create a viable mobile telephony operation that could also become an engine for economic growth.

Providing telecommunications services to low-income groups is not without its difficulties. An increased focus on the operator's total cost of ownership is needed to ensure viability. Other entry-level barriers include subscriber handling costs, availability of affordable handsets, and regulatory and taxation issues. Grameenphone, in cooperation with Telenor, addressed many of these issues by focusing on developing the right technology, services and business models to make mobile telephony affordable for low-income customers.

TEN YEARS OF EMPOWERING PEOPLE

4

TEN YEARS OFEMPOWERING PEOPLE

5

Once considered a fancy gadget for the elite, the mobile phone has been transformed into an essential tool for all. Mobile phones are now empowering people from all groups in all areas of Bangladesh.

Grameenphone Ltd. received its operating license in November 1996 and started its service from March 26, 1997, the Independence Day of Bangladesh. The shareholders established the company realizing the important role telecommunications can play in economic development: Connectivity translates into productivity. They also made a commitment that "Good Development is Good Business".

Grameenphone is a unique international joint venture between Telenor AS (62%), a leading telecommunications company of Norway, and Grameen Telecom (38%), a not-for-profit company in Bangladesh, working in close collaboration with the micro-credit pioneers Grameen Bank and Professor Muhammad Yunus, the Nobel Peace Prize winners in 2006.

Entrepreneur Iqbal Quadir first had the idea of providing mobile telephony to the poor of Bangladesh. His early discussions with Professor Yunus later resulted in launching the internationally acclaimed Village Phone Program, coupling micro-credit with mobile telephony to make telecommunications accessible to the rural poor.

The shareholders also contributed with their unique strengths. Being at the forefront of developing and delivering modern telecommunications facilities for more than 150 years, Telenor provided the managerial expertise and technological know-how to set up a world-class mobile phone operation in an emerging market. On the other hand, Grameen Telecom provided the knowledge and deep understanding of the local economy.

MAKING IT AFFORDABLE

Now, after 10 years of successful operations, Grameenphone is the largest telecommunications service provider in Bangladesh. Grameenphone provides services to rural and urban customers across Bangladesh, where mobile telephony is acknowledged as a significant driver of socio-economic development, both for individuals and the nation.

From the beginning, the goal was to offer affordable mobile phone services to as many people as possible. However, the challenges were significant. The country had a very large population with a very limited purchasing power and poor infrastructure. Grameenphone saw an opportunity to utilize wireless technology to create a viable mobile telephony operation that could also become an engine for economic growth.

Providing telecommunications services to low-income groups is not without its difficulties. An increased focus on the operator's total cost of ownership is needed to ensure viability. Other entry-level barriers include subscriber handling costs, availability of affordable handsets, and regulatory and taxation issues. Grameenphone, in cooperation with Telenor, addressed many of these issues by focusing on developing the right technology, services and business models to make mobile telephony affordable for low-income customers.

TEN YEARS OF EMPOWERING PEOPLE

4

TEN YEARS OFEMPOWERING PEOPLE

6 7

PIONEERS OF MOBILE TELEPHONY

Grameenphone has been a pioneer in introducing new products and services in the local market. In June 1998, faced with limited interconnection facilities with the lone fixed-line operator, state-owned Bangladesh Telegraph and Telephone Board, Grameenphone introduced an innovative mobile-to-mobile product. Many were skeptical about the viability of a product by which a user could only reach another mobile phone. However, the 'GP to GP' connection went on to become one of the fastest selling products in the market. Among many other firsts, Grameenphone was also the first operator to introduce the prepaid service in 1999, launched a youth brand djuice in April 2005 and EDGE and Voice SMS in September the same year. The first segmented offering catering to the needs of the business community, Business Solutions, was introduced in January 2006.

Much of Grameenphone's success is due to its ability to adapt to the needs of its customers. It has implemented customer-driven innovations that meet the specific needs of low-income segments. Telenor's experience from other developing markets and best practices from across the Group can serve as a catalyst for innovation in Bangladesh. For example, a common electronic prepaid top-up solution called Flexiload has been introduced in Telenor's operations in Pakistan, Malaysia, Ukraine and Bangladesh. As Bangladesh has a cash economy, subscriptions have to be adapted to what people can afford. By offering the Flexiload electronic recharge service, Grameenphone has made mobile telephony accessible for subscribers who can reload their phones with small amounts and pay as they go - as is typical in a cash economy.

WIDEST NETWORK COVERAGE

The Grameenphone network now covers more than 95 percent of the country's population, up from around 50 percent two years earlier. During the same period, the company also introduced a range of enabling services and the entire network is now EDGE/GPRS enabled. Grameenphone has greatly benefited from Telenor Group's, with its 12 mobile operations worldwide, aggregated purchasing power. This has enabled the company to rapidly extend its network coverage and upgrade its network. Group cost-saving initiatives have also allowed Grameenphone to reduce tariffs substantially,

thus making mobile communication affordable for a wider community in Bangladesh, especially those who have little to spend on communication.

Over the years, the shareholders have re-invested nearly all of their earnings to expand coverage and increase capacity of the network. The cumulative investments up to December 2006 stood at about BDT 76 billion, making Grameenphone one of the largest private sector investments in the country.

COMMITTED CUSTOMER SERVICE

Grameenphone has always been committed to provide quality after-sales service to its customers. It was the first company to set up a 24-hour Call Center in the country in 1999. In order to make customer service more easily accessible, the Grameenphone Customer Service desk concept was developed in 2005. There are now more than 600 Grameenphone Customer Service desks in operation around the country. These service desks have remarkably reduced travel time for customers from as much as eight hours to a maximum of one hour for any after-sales service. The flagship Grameenphone Centers were also launched last year to provide a "one-stop solution" for all customers. The centers are designed to increase customer satisfaction by integrating all sales and after-sales services in an open, friendly and comfortable environment. Presently, there are 80 Grameenphone Centers in operation around the country.

CONTRIBUTION TO GROWTH

The telecommunication industry in Bangladesh is now estimated to represent more than one percent of the country's GDP.

Since commercial operations began in March 1997 and up to December 2006, Grameenphone has contributed over BDT 67 billion to the country's National Exchequer in direct and indirect taxes. Grameenphone's annual revenues surpassed BDT 45 billion in 2006, and the total contribution to the National Exchequer, including all taxes and VAT from the services, was more than BDT 20 billion during the year.

Grameenphone directly employs more than 5,000 people and it is estimated that another 100,000 people are directly dependant on the business, working for the vendors, suppliers and retailers. In addition, there are now over 280,000 Village Phone operators earning a living through the Village Phone Program.

TEN YEARS OF EMPOWERING PEOPLETEN YEARS OF EMPOWERING PEOPLE

6 7

PIONEERS OF MOBILE TELEPHONY

Grameenphone has been a pioneer in introducing new products and services in the local market. In June 1998, faced with limited interconnection facilities with the lone fixed-line operator, state-owned Bangladesh Telegraph and Telephone Board, Grameenphone introduced an innovative mobile-to-mobile product. Many were skeptical about the viability of a product by which a user could only reach another mobile phone. However, the 'GP to GP' connection went on to become one of the fastest selling products in the market. Among many other firsts, Grameenphone was also the first operator to introduce the prepaid service in 1999, launched a youth brand djuice in April 2005 and EDGE and Voice SMS in September the same year. The first segmented offering catering to the needs of the business community, Business Solutions, was introduced in January 2006.

Much of Grameenphone's success is due to its ability to adapt to the needs of its customers. It has implemented customer-driven innovations that meet the specific needs of low-income segments. Telenor's experience from other developing markets and best practices from across the Group can serve as a catalyst for innovation in Bangladesh. For example, a common electronic prepaid top-up solution called Flexiload has been introduced in Telenor's operations in Pakistan, Malaysia, Ukraine and Bangladesh. As Bangladesh has a cash economy, subscriptions have to be adapted to what people can afford. By offering the Flexiload electronic recharge service, Grameenphone has made mobile telephony accessible for subscribers who can reload their phones with small amounts and pay as they go - as is typical in a cash economy.

WIDEST NETWORK COVERAGE

The Grameenphone network now covers more than 95 percent of the country's population, up from around 50 percent two years earlier. During the same period, the company also introduced a range of enabling services and the entire network is now EDGE/GPRS enabled. Grameenphone has greatly benefited from Telenor Group's, with its 12 mobile operations worldwide, aggregated purchasing power. This has enabled the company to rapidly extend its network coverage and upgrade its network. Group cost-saving initiatives have also allowed Grameenphone to reduce tariffs substantially,

thus making mobile communication affordable for a wider community in Bangladesh, especially those who have little to spend on communication.

Over the years, the shareholders have re-invested nearly all of their earnings to expand coverage and increase capacity of the network. The cumulative investments up to December 2006 stood at about BDT 76 billion, making Grameenphone one of the largest private sector investments in the country.

COMMITTED CUSTOMER SERVICE

Grameenphone has always been committed to provide quality after-sales service to its customers. It was the first company to set up a 24-hour Call Center in the country in 1999. In order to make customer service more easily accessible, the Grameenphone Customer Service desk concept was developed in 2005. There are now more than 600 Grameenphone Customer Service desks in operation around the country. These service desks have remarkably reduced travel time for customers from as much as eight hours to a maximum of one hour for any after-sales service. The flagship Grameenphone Centers were also launched last year to provide a "one-stop solution" for all customers. The centers are designed to increase customer satisfaction by integrating all sales and after-sales services in an open, friendly and comfortable environment. Presently, there are 80 Grameenphone Centers in operation around the country.

CONTRIBUTION TO GROWTH

The telecommunication industry in Bangladesh is now estimated to represent more than one percent of the country's GDP.

Since commercial operations began in March 1997 and up to December 2006, Grameenphone has contributed over BDT 67 billion to the country's National Exchequer in direct and indirect taxes. Grameenphone's annual revenues surpassed BDT 45 billion in 2006, and the total contribution to the National Exchequer, including all taxes and VAT from the services, was more than BDT 20 billion during the year.

Grameenphone directly employs more than 5,000 people and it is estimated that another 100,000 people are directly dependant on the business, working for the vendors, suppliers and retailers. In addition, there are now over 280,000 Village Phone operators earning a living through the Village Phone Program.

TEN YEARS OF EMPOWERING PEOPLETEN YEARS OF EMPOWERING PEOPLE

8 9

Grameenphone has recently started a bill payment service called BillPay, which allows the Power Development Board customers in Chittagong to pay their electricity bills via their mobile phone. Bills have traditionally been paid through banking outlets, but the scarcity of rural outlets means this is often a time consuming process that involves travel. The essence of the initiative is to use mobile infrastructure in areas with limited/non-existing banking infrastructure, converting cash into electronic money. It is expected that the BillPay service will be expanded to cover other cities and include more utility services.

BRIDGING THE DIGITAL DIVIDE

Grameenphone is now building on its mobile network to bring affordable Internet and email access to people across Bangladesh. It has set up more than 550 Community Information Centers (CIC) in rural areas. Run by local entrepreneurs, the centers are equipped with PCs connected to the Internet via the Grameenphone mobile network using EDGE technology. They provide high-speed Internet access and other information-based services in rural areas where previously the nearest facilities were at least 25 kilometers away in the nearest city or town. Typical services are telemedicine, access to governmental forms, and local and foreign "blue collar" employment services.

Grameenphone is committed to making mobile telephony and other technology solutions available to everyone, thereby making a positive contribution to the lives of the people of Bangladesh. Declining tariffs, affordable prices of handsets and superior network coverage all over the country are the three main drivers for Grameenphone's success.

There are currently six mobile operators in the country, with a total of about 20 million subscribers as of April 2007. According to a recent Wireless Intelligence report, Bangladesh, the 7th largest country in the world with a population of about 145 million, is presently one of the top 10 mobile phone growth markets in the Asia-Pacific region. However, the telephone penetration rate still remains low at around 13 percent.

Notably, it is possible to triple the number of subscribers, raising the total number to 50 million, within 2009. Reduced entry cost for new subscribers will be the main driver for this growth with lower handset prices and reduced connection taxes.

A study published in 2005 by the London Business School established a clear link between economic growth and mobile phone penetration in developing nations. The study showed that for the period from 1996 to 2003, a developing country with 10 more mobile phones per 100 people enjoyed per capita GDP growth that was 0.6 percentage points higher than in an otherwise identical country. The benefits brought by the mobile phone include a reduction of the number of middle-men, higher profitability for businesses and improved contact between family and friends.

BEYOND BUSINESS: CONNECTING VILLAGES

Grameenphone's first community service initiative was the Village Phone Program, started on the same day the commercial service was launched in 1997. Administered by Grameen Telecom, the Village Phones provides access to telecommunication services in rural areas to people who could not otherwise afford to own a phone. It also provides the Village Phone operators with an

opportunity to earn a good income. Typically, a village woman, also a borrower of Grameen Bank, finances a mobile phone through micro-credit and earns money by offering a phone service in their communities. Studies have shown that one of Village Phone's most important contributions was making market information accessible to everyone. It has also substantially empowered women from the rural households to make a living for themselves and their families.

MUCH-NEEDED PUBLIC SERVICES

In October 2006, Grameenphone launched the HealthLine Service, a 24-hour Medical Call Center manned by registered physicians who provide medical advice and assistance. The HealthLine Service is accessible to all Grameenphone subscribers and those who

register are also able to conduct consultations over the phone (their medical files are retained at the Call Center). In Bangladesh, with one doctor per 4,000 people, this service represents a much-needed extension of primary health care services. The HealthLine Service initiative was awarded the GSMA Award for "Best use of mobile for social and economic development" at he 3GSM World Congress held in Barcelona, Spain in February 2007.

TEN YEARS OF EMPOWERING PEOPLETEN YEARS OF EMPOWERING PEOPLE

8 9

Grameenphone has recently started a bill payment service called BillPay, which allows the Power Development Board customers in Chittagong to pay their electricity bills via their mobile phone. Bills have traditionally been paid through banking outlets, but the scarcity of rural outlets means this is often a time consuming process that involves travel. The essence of the initiative is to use mobile infrastructure in areas with limited/non-existing banking infrastructure, converting cash into electronic money. It is expected that the BillPay service will be expanded to cover other cities and include more utility services.

BRIDGING THE DIGITAL DIVIDE

Grameenphone is now building on its mobile network to bring affordable Internet and email access to people across Bangladesh. It has set up more than 550 Community Information Centers (CIC) in rural areas. Run by local entrepreneurs, the centers are equipped with PCs connected to the Internet via the Grameenphone mobile network using EDGE technology. They provide high-speed Internet access and other information-based services in rural areas where previously the nearest facilities were at least 25 kilometers away in the nearest city or town. Typical services are telemedicine, access to governmental forms, and local and foreign "blue collar" employment services.

Grameenphone is committed to making mobile telephony and other technology solutions available to everyone, thereby making a positive contribution to the lives of the people of Bangladesh. Declining tariffs, affordable prices of handsets and superior network coverage all over the country are the three main drivers for Grameenphone's success.

There are currently six mobile operators in the country, with a total of about 20 million subscribers as of April 2007. According to a recent Wireless Intelligence report, Bangladesh, the 7th largest country in the world with a population of about 145 million, is presently one of the top 10 mobile phone growth markets in the Asia-Pacific region. However, the telephone penetration rate still remains low at around 13 percent.

Notably, it is possible to triple the number of subscribers, raising the total number to 50 million, within 2009. Reduced entry cost for new subscribers will be the main driver for this growth with lower handset prices and reduced connection taxes.

A study published in 2005 by the London Business School established a clear link between economic growth and mobile phone penetration in developing nations. The study showed that for the period from 1996 to 2003, a developing country with 10 more mobile phones per 100 people enjoyed per capita GDP growth that was 0.6 percentage points higher than in an otherwise identical country. The benefits brought by the mobile phone include a reduction of the number of middle-men, higher profitability for businesses and improved contact between family and friends.

BEYOND BUSINESS: CONNECTING VILLAGES

Grameenphone's first community service initiative was the Village Phone Program, started on the same day the commercial service was launched in 1997. Administered by Grameen Telecom, the Village Phones provides access to telecommunication services in rural areas to people who could not otherwise afford to own a phone. It also provides the Village Phone operators with an

opportunity to earn a good income. Typically, a village woman, also a borrower of Grameen Bank, finances a mobile phone through micro-credit and earns money by offering a phone service in their communities. Studies have shown that one of Village Phone's most important contributions was making market information accessible to everyone. It has also substantially empowered women from the rural households to make a living for themselves and their families.

MUCH-NEEDED PUBLIC SERVICES

In October 2006, Grameenphone launched the HealthLine Service, a 24-hour Medical Call Center manned by registered physicians who provide medical advice and assistance. The HealthLine Service is accessible to all Grameenphone subscribers and those who

register are also able to conduct consultations over the phone (their medical files are retained at the Call Center). In Bangladesh, with one doctor per 4,000 people, this service represents a much-needed extension of primary health care services. The HealthLine Service initiative was awarded the GSMA Award for "Best use of mobile for social and economic development" at he 3GSM World Congress held in Barcelona, Spain in February 2007.

TEN YEARS OF EMPOWERING PEOPLETEN YEARS OF EMPOWERING PEOPLE

10 11

Grameenphone launched a new, refreshed logo in November 2006. The new logo and fresh, dynamic visuals express the values Grameenphone is known for: trust, reliability, quality and constant progress. It also signals the company's continued focus on securing the best possible communications services for its customers.

With this change, the company continues to build on its success and traditions, maintaining its strong brand-name "Grameenphone" as part of its refreshed brand identity. The name Grameenphone carries with it all of the heritage, success and values of the company's past. It has now been given a more modern design that reflects the future view of the company as well. This change is not just about changing the look. It reflects the continuous efforts to evolve the organization and its dynamics to serve the customers even better in the future.

Since Grameenphone received its operating license more than 10 years ago, both the telecoms industry and the needs of the customers have changed considerably. Thus, the company has also evolved to meet the changing needs of all its customers across Bangladesh. As such, Grameenphone needed a refreshed visual identity that reflected its ambitions for the future.

Grameenphone has been instrumental in making mobile communications accessible across Bangladesh over the last decade, providing quality network and after-sales service, innovative products and services and empowering people. The introduction of mobile telephony has revolutionised the way people communicate and has been a driver of socio-economic development for individuals and the country.

The rich heritage of Grameenphone means that it is uniquely placed to understand and meet the changing needs of the customers, and it can be faster and more relevant in its responses. Grameenphone is now building on this foundation, to be even better in how it meets the needs of the customers in the future.

The logo refreshment was applied on all elements of Grameenphone's appearance and brought renewal in other areas as well. The new logo has been gradually visible on all Grameenphone sales and service centers, franchises, retail outlets, billboards, electronic media and on the company website.

Grameenphone has been a partner in development both for individuals as well as for an emerging Bangladesh. The refreshed Grameenphone brand will continue its focus on providing the market's most innovative, relevant and useful services backed by world-class quality at every touch point.

REFRESHED IMAGE

REFRESHED IMAGE

10 11

Grameenphone launched a new, refreshed logo in November 2006. The new logo and fresh, dynamic visuals express the values Grameenphone is known for: trust, reliability, quality and constant progress. It also signals the company's continued focus on securing the best possible communications services for its customers.

With this change, the company continues to build on its success and traditions, maintaining its strong brand-name "Grameenphone" as part of its refreshed brand identity. The name Grameenphone carries with it all of the heritage, success and values of the company's past. It has now been given a more modern design that reflects the future view of the company as well. This change is not just about changing the look. It reflects the continuous efforts to evolve the organization and its dynamics to serve the customers even better in the future.

Since Grameenphone received its operating license more than 10 years ago, both the telecoms industry and the needs of the customers have changed considerably. Thus, the company has also evolved to meet the changing needs of all its customers across Bangladesh. As such, Grameenphone needed a refreshed visual identity that reflected its ambitions for the future.

Grameenphone has been instrumental in making mobile communications accessible across Bangladesh over the last decade, providing quality network and after-sales service, innovative products and services and empowering people. The introduction of mobile telephony has revolutionised the way people communicate and has been a driver of socio-economic development for individuals and the country.

The rich heritage of Grameenphone means that it is uniquely placed to understand and meet the changing needs of the customers, and it can be faster and more relevant in its responses. Grameenphone is now building on this foundation, to be even better in how it meets the needs of the customers in the future.

The logo refreshment was applied on all elements of Grameenphone's appearance and brought renewal in other areas as well. The new logo has been gradually visible on all Grameenphone sales and service centers, franchises, retail outlets, billboards, electronic media and on the company website.

Grameenphone has been a partner in development both for individuals as well as for an emerging Bangladesh. The refreshed Grameenphone brand will continue its focus on providing the market's most innovative, relevant and useful services backed by world-class quality at every touch point.

REFRESHED IMAGE

REFRESHED IMAGE

THE SHAREHOLDERS

The shareholders of Grameenphone contribute their unique, in-depth experience in both telecommunications and development. The international shareholder brings technological and business management expertise while the local shareholder provides a presence throughout Bangladesh and a deep understanding of its economy. Both are dedicated to Bangladesh and its struggle for economic progress and have a deep commitment to Grameenphone and its mission to provide affordable telephony to the entire population of Bangladesh.

12 13

TELENOR MOBILE COMMUNICATIONS

Telenor AS is the leading Telecommunications Company of Norway listed in both the Oslo and NASDAQ Stock Exchanges. It owns 62% shares of Grameenphone Ltd.

Telenor, a 150 year-old organization, has played a pioneering role in the development of cellular communications. Manual mobile telephony services were introduced in Norway in 1966, as a forerunner to the automatic NMT system, which appeared in 1981. Its digital successor, GSM, was introduced in 1993, and third generation mobile network, UMTS, was launched for commercial use in 2004.

Telenor's strong international expansion in recent years has been based on leading-edge expertise, acquired in the Norwegian and Nordic markets, which are among the most highly developed technology markets in the world. It has substantial international operations in mobile telephony, satellite operations and pay Television services. In addition to Norway and Bangladesh, Telenor owns mobile telephony companies in Sweden, Denmark, Hungary, Russia, Ukraine, Montenegro, Thailand, Malaysia, Pakistan and Serbia with more than 123 million mobile subscriptions worldwide as of June 2007.

Telenor uses the expertise it has gained in its home and international markets for the development of emerging markets like Bangladesh.

�GRAMEEN TELECOM

Grameen Telecom, which owns 38% of the shares of Grameenphone, is a not-for-profit company and works in close collaboration with Grameen Bank, winner of the Noble Peace Prize in 2006 along with its founder Professor Muhammad Yunus. The internationally reputed bank for the poor, has the most extensive rural banking network and expertise in microfinance. It understands the economic needs of the rural population, in particular the women from the poorest households.

Grameen Telecom, with the help of Grameen Bank, administers the Village Phone Program, through which Grameenphone provides its services to the fast growing rural customers. Grameen Telecom trains the operators, supplies them with handsets and handles all service-related issues.

Grameen Bank currently has 2399 branches, providing services in 76,848 villages, covering more than 91 percent of the total villages in Bangladesh. As of March 2007, the bank had 7.06 million borrowers, 97 percent of whom were women.

Grameen Telecom's objectives are to provide easy access to GSM cellular services in rural Bangladesh and creating new opportunities for income generation through self-employment by providing villagers with access to modern information and communication based technologies.

Grameen Telecom [38%]

Telenor Mobile Communications AS [62%]

THE SHAREHOLDERS

THE SHAREHOLDERS

The shareholders of Grameenphone contribute their unique, in-depth experience in both telecommunications and development. The international shareholder brings technological and business management expertise while the local shareholder provides a presence throughout Bangladesh and a deep understanding of its economy. Both are dedicated to Bangladesh and its struggle for economic progress and have a deep commitment to Grameenphone and its mission to provide affordable telephony to the entire population of Bangladesh.

12 13

TELENOR MOBILE COMMUNICATIONS

Telenor AS is the leading Telecommunications Company of Norway listed in both the Oslo and NASDAQ Stock Exchanges. It owns 62% shares of Grameenphone Ltd.

Telenor, a 150 year-old organization, has played a pioneering role in the development of cellular communications. Manual mobile telephony services were introduced in Norway in 1966, as a forerunner to the automatic NMT system, which appeared in 1981. Its digital successor, GSM, was introduced in 1993, and third generation mobile network, UMTS, was launched for commercial use in 2004.

Telenor's strong international expansion in recent years has been based on leading-edge expertise, acquired in the Norwegian and Nordic markets, which are among the most highly developed technology markets in the world. It has substantial international operations in mobile telephony, satellite operations and pay Television services. In addition to Norway and Bangladesh, Telenor owns mobile telephony companies in Sweden, Denmark, Hungary, Russia, Ukraine, Montenegro, Thailand, Malaysia, Pakistan and Serbia with more than 123 million mobile subscriptions worldwide as of June 2007.

Telenor uses the expertise it has gained in its home and international markets for the development of emerging markets like Bangladesh.

�GRAMEEN TELECOM

Grameen Telecom, which owns 38% of the shares of Grameenphone, is a not-for-profit company and works in close collaboration with Grameen Bank, winner of the Noble Peace Prize in 2006 along with its founder Professor Muhammad Yunus. The internationally reputed bank for the poor, has the most extensive rural banking network and expertise in microfinance. It understands the economic needs of the rural population, in particular the women from the poorest households.

Grameen Telecom, with the help of Grameen Bank, administers the Village Phone Program, through which Grameenphone provides its services to the fast growing rural customers. Grameen Telecom trains the operators, supplies them with handsets and handles all service-related issues.

Grameen Bank currently has 2399 branches, providing services in 76,848 villages, covering more than 91 percent of the total villages in Bangladesh. As of March 2007, the bank had 7.06 million borrowers, 97 percent of whom were women.

Grameen Telecom's objectives are to provide easy access to GSM cellular services in rural Bangladesh and creating new opportunities for income generation through self-employment by providing villagers with access to modern information and communication based technologies.

Grameen Telecom [38%]

Telenor Mobile Communications AS [62%]

THE SHAREHOLDERS

KEY FINANCIAL FIGURES

14 15

KEY FINANCIAL FIGURES

Profit & Loss Account

Revenue:T raffic revenueSubscription r evenue-post paidC onnection revenueRoaming r evenueInt erconnection revenueOther oper ating revenue

Other income, net

Operating expenses:Di rect cost of network revenueNetwork oper ation and maintenance expensesGener al and administrative expensesSelling and distribution expensesBad debtDepr eciation and amortization

Operating profit

Finance costs, netLoss on disposal of pr operty, plant and equipmentShar e or profit/(loss) of associate company Profit before taxIncome tax expense Profit for the year

39,085,284489,854487,211351,104

3,815,8571,411,105

45,640,415102,285

45,742,700

(10,072,244)(2,105,687)(3,915,212)(3,944,291)

(41,641)(7,468,350)

(27,547,425)18,195,275

(918,824)(258,821)

1,87617,019,506(7,515,483)

9,504,023

2006 2005

2004 2005 2006

19,627

29,473

45,640

25,596,882558,186307,880361,335

1,866,057782,791

29,473,131113,770

29,586,901

(6,705,018)(1,428,489)(2,279,156)(2,056,829)

(150,767)(4,364,921)

(16,985,180)12,601,721

(740,819)(99,412)

-11,761,490(4,848,613)

6,912,877

Key Financial Ratios:Net profit to turnoverReturn on investment (ROI)Asset turnover ratioEarning per share (EPS)Dividend per share (DPS)Dividend pay out ratio

200523%38%88%

BDT 122.0BDT 21.5

18%

200621%36%

103%BDT 168.0 BDT 25.8

15%

Revenue (in million BDT)

Financial Statements for the Year 2006 in '000 BDT

Notes:1) The financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS), International Financial Reporting Standards (IFRS), Companies Act 1994 and other applicable laws in Bangladesh.2) Closing conversion rates considered for 2006 and 2005 against USD are BDT 69.65 and BDT 68.40 respectively.

18

CONTRIBUTION TO NATIONAL EXCHEQUER

BDT 20.5 BILLION PAID IN 2006

Grameenphone Ltd. has contributed more than BDT 67 billion to the National Exchequer in taxes, duties and payments to various Government bodies since its inception in March 1997 up to December 2006.

Accumulated contribution to the National Exchequer from inception up to December 2006 was BDT 67.18 billion, of which BDT 20.5 billion was made in 2006 alone. Grameenphone is now the largest corporate taxpayer in the country.

Grameenphone has also generated direct and indirect employment for a large number of people over the years. The company presently has about 5,000 employees while another 100,000 people are directly dependent on Grameenphone for their livelihood, working for the Grameenphone dealers, retailers, scratchcard retail outlets, suppliers, vendors, contractors and others.

With the payments of taxes and the investments in the network, Grameenphone is making a significant contribution to the country's development and growth.

The following chart illustrates how the National Treasury was augmented over the years:

CONTRIBUTION TO GOVERNMENT AS OF DECEMBER 31, 2006

BDT 20.5 BILLION PAID IN 2006

18

CONTRIBUTION TO NATIONAL EXCHEQUER

BDT 20.5 BILLION PAID IN 2006

Grameenphone Ltd. has contributed more than BDT 67 billion to the National Exchequer in taxes, duties and payments to various Government bodies since its inception in March 1997 up to December 2006.

Accumulated contribution to the National Exchequer from inception up to December 2006 was BDT 67.18 billion, of which BDT 20.5 billion was made in 2006 alone. Grameenphone is now the largest corporate taxpayer in the country.

Grameenphone has also generated direct and indirect employment for a large number of people over the years. The company presently has about 5,000 employees while another 100,000 people are directly dependent on Grameenphone for their livelihood, working for the Grameenphone dealers, retailers, scratchcard retail outlets, suppliers, vendors, contractors and others.

With the payments of taxes and the investments in the network, Grameenphone is making a significant contribution to the country's development and growth.

The following chart illustrates how the National Treasury was augmented over the years:

CONTRIBUTION TO GOVERNMENT AS OF DECEMBER 31, 2006

BDT 20.5 BILLION PAID IN 2006

Dear Shareholders,

Your Board of Directors welcomes you to the 10th Annual General Meeting of Grameenphone Ltd. and is pleased to present the Directors' Report, together with the Audited Financial Statements of the Company for the year ending December 31, 2006 and the Auditors' Report thereon, for your consideration and approval.

Ten Years of Operation, 10 Million Subscribers

Grameenphone nearly completed 10 years of its operation in 2006 and it crossed the 10 million subscriber milestone this year. Grameenphone acquired more than 5.2 million new subscribers during the year reaching the total subscription of 10.78 million at the end of 2006 - 94 percent higher than last year. The Company continued to be the telecom market leader of the country, with the network covering more than 95 percent of the population. Grameenphone, the first mobile phone operator to launch the GSM service in Bangladesh, has led the way for 10 years in bringing telecommunication facility to the people of all levels and has become the most recognized brand in the country.

The brand image of Grameenphone along with continuing innovations in products and services, quality network coverage and committed customer service, helped the Company to remain the preferred telecom service provider of the country.

Economy, Business & Socio-political Scenario

The overall economic performance of the country was fairly good with 6.7 percent growth in the GDP in 2006 (2005: 5.7 percent) despite prolonged political turmoil in the later part of the year. Boosted by a healthy growth in exports the overall balance of payment stood at a surplus by the end of the year despite gradual slides in the external assistance and growth in imports. Foreign exchange reserve was at its record peak with around USD 3.9 billion. However, the annual rate of inflation remained high at around 7% which affected the purchase capacity of the poor. Political confrontation centering the national parliamentary elections finally led to declaration of state of emergency in the country by the caretaker government.

Record Growth of Telecommunications Sector

Telecommunication being one of the key infrastructure providers of the economy, experienced a record growth where tele-density reached 14% with 20 million people having access to telecommunication facility. In a recent GSM Association research, Bangladesh was found to be one of the top 10 mobile phone markets in the Asia-Pacific region in terms of growth and for the sector's contribution to GDP by 1%. There were six mobile operators in the country five being in the competition during the year and newcomer Warid Telecom was at its preparation phase. Call charges declined during the year by 55% as a result of increasing competition in the market which may continue further as the operators will continue to seek stronger position in the market.

Innovative Products & Services - Creating Value for the Customers

Innovation has been one of the key success factors of Grameenphone since its inception. The year 2006 was also another year of innovation and refreshment for Grameenphone. A number of new products and services were launched during the year. Grameenphone refreshed its brand identity and also simplified its main prepaid and postpaid products. Business Solution being the first segmented product for the business community has been a clear demonstration of Grameenphone's effort to cater to the specialized needs of customers.

DIRECTORS' REPORTFOR THE YEAR ENDINGDECEMBER 31, 2006

DIRECTORS' REPORT

2120

Dear Shareholders,

Your Board of Directors welcomes you to the 10th Annual General Meeting of Grameenphone Ltd. and is pleased to present the Directors' Report, together with the Audited Financial Statements of the Company for the year ending December 31, 2006 and the Auditors' Report thereon, for your consideration and approval.

Ten Years of Operation, 10 Million Subscribers

Grameenphone nearly completed 10 years of its operation in 2006 and it crossed the 10 million subscriber milestone this year. Grameenphone acquired more than 5.2 million new subscribers during the year reaching the total subscription of 10.78 million at the end of 2006 - 94 percent higher than last year. The Company continued to be the telecom market leader of the country, with the network covering more than 95 percent of the population. Grameenphone, the first mobile phone operator to launch the GSM service in Bangladesh, has led the way for 10 years in bringing telecommunication facility to the people of all levels and has become the most recognized brand in the country.

The brand image of Grameenphone along with continuing innovations in products and services, quality network coverage and committed customer service, helped the Company to remain the preferred telecom service provider of the country.

Economy, Business & Socio-political Scenario

The overall economic performance of the country was fairly good with 6.7 percent growth in the GDP in 2006 (2005: 5.7 percent) despite prolonged political turmoil in the later part of the year. Boosted by a healthy growth in exports the overall balance of payment stood at a surplus by the end of the year despite gradual slides in the external assistance and growth in imports. Foreign exchange reserve was at its record peak with around USD 3.9 billion. However, the annual rate of inflation remained high at around 7% which affected the purchase capacity of the poor. Political confrontation centering the national parliamentary elections finally led to declaration of state of emergency in the country by the caretaker government.

Record Growth of Telecommunications Sector

Telecommunication being one of the key infrastructure providers of the economy, experienced a record growth where tele-density reached 14% with 20 million people having access to telecommunication facility. In a recent GSM Association research, Bangladesh was found to be one of the top 10 mobile phone markets in the Asia-Pacific region in terms of growth and for the sector's contribution to GDP by 1%. There were six mobile operators in the country five being in the competition during the year and newcomer Warid Telecom was at its preparation phase. Call charges declined during the year by 55% as a result of increasing competition in the market which may continue further as the operators will continue to seek stronger position in the market.

Innovative Products & Services - Creating Value for the Customers

Innovation has been one of the key success factors of Grameenphone since its inception. The year 2006 was also another year of innovation and refreshment for Grameenphone. A number of new products and services were launched during the year. Grameenphone refreshed its brand identity and also simplified its main prepaid and postpaid products. Business Solution being the first segmented product for the business community has been a clear demonstration of Grameenphone's effort to cater to the specialized needs of customers.

DIRECTORS' REPORTFOR THE YEAR ENDINGDECEMBER 31, 2006

DIRECTORS' REPORT

2120

22 23

Regulatory Environment for the Industry

The telecoms sector is one of the largest private sector infrastructure providers in Bangladesh. The regulatory regime of the country is still passing through a transition process. Unpredictable tax regime and discriminatory policies are still seen impediments to the growth of the industry. In 2006, a number of changes were brought to the regulatory & tax arena for Telecom sector. Bangladesh Telecom and Regulatory Commission (BTRC) introduced a new regime replacing Government Royalty & License Fee (GRLF) with Revenue Sharing at 5.5% with the Government. BTRC introduced mandatory subscriber registration in 2006. Fair allocation of frequency is still the key issue to sustain the growth of the industry.

It is hoped that the Bangladesh Telecommunication Regulatory Commission (BTRC) being the watchdog will ensure a level-playing field in the telecom industry, with a stable and enabling regulatory environment in the country's telecommunications sector.

Corporate Social Responsibility (CSR)

More than 5,000 people are directly employed in Grameenphone while another 100,000 people are dependent on the organization working for its dealers, distributors, vendors, suppliers, contractors and others. Grameenphone values local entrepreneurs and around 800 local business houses work in the supply chain process of the Company.

As a socially responsible corporate body, Grameenphone sincerely strives to take part in the development of the country. It's CSR Strategy 2006-2007 focuses on Education, Health and Empowerment/Poverty Alleviation. In 2006, Grameenphone opened 401 Community Information Centers (CIC) across 341 Upazillas of the country to facilitate internet connectivity to the rural people by using its nationwide EDGE network. Grameenphone has recently joined hands with UNAIDS in creating awareness for the prevention of AIDS in Bangladesh. It also launched a nationwide healthcare project in partnership with the NGO Service Delivery Program (NSDP) of USAID to provide all necessary assistance to free of cost comprehensive primary healthcare services to poor pregnant mothers and infants in Bangladesh. Similar partnering is being done with Ahsania Mission on the support of Cancer Treatment.

Grameenphone is proud to be the official sponsor of Bangladesh Cricket Team.

Village Phones for Rural Women

The Village Phone Program--a unique initiative to provide universal access to telecommunications facilities in rural Bangladesh--jointly undertaken by Grameenphone and Grameen Telecom, in co-operation with Grameen Bank, has benefited 280,000 rural women to earn their living. The Village

DIRECTORS' REPORTDIRECTORS' REPORTA number of new Value Added Services (VAS) were launched in 2006. International SMS, Personal ring back tone, Bangla SMS, Cellbazaar, BillPay for utility bill payment, Mobile e-mail, Instant Messenger service - are the ones highly appreciated by the customers. PSTN connectivity to a large number of mobile to mobile connections, free BTTB incoming and economy ISD rates also benefited our customers significantly. ThankYou, a loyalty program, rewarded millions of prepaid and postpaid customers throughout the year for their use of services of the company. Grameenphone received the GSMA Global Mobile Award for its HealthLine service which is meant for catering to the health care need of many subscribers.

Customer Service - Our Commitment & Priority

Grameenphone has been always committed to serve its customer in the best possible way. In 2006, Grameenphone Centers (GPC) - a flagship sales and service center under one roof - was opened in 50 areas across the country. In addition, the Grameenphone Customer Service centers are providing after-sales service across the country from more than 600 places, reducing travel time to less than an hour now for our customers anywhere in the country. "Grahak Katha Online" an internet-based service - first of its kind in the country - has been launched allowing Grameenphone subscribers to directly interact with our Customer Managers. Interactive Voice Response (IVR) and Call Center capacity has been doubled in 2006 to coup with the increasing customer base.

Our Employees - The Driving Force behind our Success

The driving force behind Grameenphone's continued success over the years has been its professionally competent and dedicated employees. The Directors are proud to have such a competent team working for the Company in meeting the challenges in a dynamic business environment. Grameenphone believes in investing in human capital. It has continuously trained and developed its employees for enhancing their functional and management competencies and leadership qualities. A dedicated unit - Health, Safety & Environment (HSE) -- is working to ensure suitable environment in the workplace. Common values have been established across the organization to align the team towards the vision. A performance driven corporate culture along with ample opportunity for career growth, has made Grameenphone a preferred employer in Bangladesh.

Continuous Investment in Expansion and Quality

Grameenphone reinvested more than 80% of its profit over the last ten years. In 2006, BDT 21.66 Billion was invested to build quality network for its subscribers across the country. Its accumulated investment stood at BDT 76 Billion at the end of 2006. A total of 2,651 new base stations were rolled out during 2006. The Grameenphone network now covers more than 95% of the population in 440 Upazillas (or sub districts) of 61 districts of the country. Coverage along major highways have been enhanced while many important publicly accessed buildings in major cities have been provided with indoor coverage solutions.

Enhanced Value of Shareholders' Investment

Grameenphone continued to increase the value of its Shareholders' investment. In 2006, the record growth in the subscriber base has made positive contribution to the revenue, EBITDA and net result as expected by the Shareholders. Revenue in 2006 increased by 55% compared to the previous year while average revenue per user (ARPU) has fallen naturally due to slide in tariff and intake of new customers from lower income group.

The Board and the Management are determined to maintain this momentum of growth in the coming years to continue increasing value for shareholders' investment.

22 23

Regulatory Environment for the Industry

The telecoms sector is one of the largest private sector infrastructure providers in Bangladesh. The regulatory regime of the country is still passing through a transition process. Unpredictable tax regime and discriminatory policies are still seen impediments to the growth of the industry. In 2006, a number of changes were brought to the regulatory & tax arena for Telecom sector. Bangladesh Telecom and Regulatory Commission (BTRC) introduced a new regime replacing Government Royalty & License Fee (GRLF) with Revenue Sharing at 5.5% with the Government. BTRC introduced mandatory subscriber registration in 2006. Fair allocation of frequency is still the key issue to sustain the growth of the industry.

It is hoped that the Bangladesh Telecommunication Regulatory Commission (BTRC) being the watchdog will ensure a level-playing field in the telecom industry, with a stable and enabling regulatory environment in the country's telecommunications sector.

Corporate Social Responsibility (CSR)

More than 5,000 people are directly employed in Grameenphone while another 100,000 people are dependent on the organization working for its dealers, distributors, vendors, suppliers, contractors and others. Grameenphone values local entrepreneurs and around 800 local business houses work in the supply chain process of the Company.

As a socially responsible corporate body, Grameenphone sincerely strives to take part in the development of the country. It's CSR Strategy 2006-2007 focuses on Education, Health and Empowerment/Poverty Alleviation. In 2006, Grameenphone opened 401 Community Information Centers (CIC) across 341 Upazillas of the country to facilitate internet connectivity to the rural people by using its nationwide EDGE network. Grameenphone has recently joined hands with UNAIDS in creating awareness for the prevention of AIDS in Bangladesh. It also launched a nationwide healthcare project in partnership with the NGO Service Delivery Program (NSDP) of USAID to provide all necessary assistance to free of cost comprehensive primary healthcare services to poor pregnant mothers and infants in Bangladesh. Similar partnering is being done with Ahsania Mission on the support of Cancer Treatment.

Grameenphone is proud to be the official sponsor of Bangladesh Cricket Team.

Village Phones for Rural Women

The Village Phone Program--a unique initiative to provide universal access to telecommunications facilities in rural Bangladesh--jointly undertaken by Grameenphone and Grameen Telecom, in co-operation with Grameen Bank, has benefited 280,000 rural women to earn their living. The Village

DIRECTORS' REPORTDIRECTORS' REPORTA number of new Value Added Services (VAS) were launched in 2006. International SMS, Personal ring back tone, Bangla SMS, Cellbazaar, BillPay for utility bill payment, Mobile e-mail, Instant Messenger service - are the ones highly appreciated by the customers. PSTN connectivity to a large number of mobile to mobile connections, free BTTB incoming and economy ISD rates also benefited our customers significantly. ThankYou, a loyalty program, rewarded millions of prepaid and postpaid customers throughout the year for their use of services of the company. Grameenphone received the GSMA Global Mobile Award for its HealthLine service which is meant for catering to the health care need of many subscribers.

Customer Service - Our Commitment & Priority

Grameenphone has been always committed to serve its customer in the best possible way. In 2006, Grameenphone Centers (GPC) - a flagship sales and service center under one roof - was opened in 50 areas across the country. In addition, the Grameenphone Customer Service centers are providing after-sales service across the country from more than 600 places, reducing travel time to less than an hour now for our customers anywhere in the country. "Grahak Katha Online" an internet-based service - first of its kind in the country - has been launched allowing Grameenphone subscribers to directly interact with our Customer Managers. Interactive Voice Response (IVR) and Call Center capacity has been doubled in 2006 to coup with the increasing customer base.

Our Employees - The Driving Force behind our Success

The driving force behind Grameenphone's continued success over the years has been its professionally competent and dedicated employees. The Directors are proud to have such a competent team working for the Company in meeting the challenges in a dynamic business environment. Grameenphone believes in investing in human capital. It has continuously trained and developed its employees for enhancing their functional and management competencies and leadership qualities. A dedicated unit - Health, Safety & Environment (HSE) -- is working to ensure suitable environment in the workplace. Common values have been established across the organization to align the team towards the vision. A performance driven corporate culture along with ample opportunity for career growth, has made Grameenphone a preferred employer in Bangladesh.

Continuous Investment in Expansion and Quality

Grameenphone reinvested more than 80% of its profit over the last ten years. In 2006, BDT 21.66 Billion was invested to build quality network for its subscribers across the country. Its accumulated investment stood at BDT 76 Billion at the end of 2006. A total of 2,651 new base stations were rolled out during 2006. The Grameenphone network now covers more than 95% of the population in 440 Upazillas (or sub districts) of 61 districts of the country. Coverage along major highways have been enhanced while many important publicly accessed buildings in major cities have been provided with indoor coverage solutions.

Enhanced Value of Shareholders' Investment

Grameenphone continued to increase the value of its Shareholders' investment. In 2006, the record growth in the subscriber base has made positive contribution to the revenue, EBITDA and net result as expected by the Shareholders. Revenue in 2006 increased by 55% compared to the previous year while average revenue per user (ARPU) has fallen naturally due to slide in tariff and intake of new customers from lower income group.

The Board and the Management are determined to maintain this momentum of growth in the coming years to continue increasing value for shareholders' investment.

24 25

Looking Forward to 2007 and Beyond

The year 2006 was a year of considerable achievement in terms of subscriber growth, expansion of network and improved customer service. This has been possible with a highly competent and dedicated team of people under the able leadership of the Management and the Board of the company. We recognize a number of significant challenges ahead. We are aligning our strategy accordingly and we are confident that we will be able to reach our goal with the sincere efforts.

Members of the Board take this opportunity to express their gratitude and sincere thanks to the Shareholders for their continued support and guidance.

We are also grateful to the Government of Bangladesh, Ministry of Post and Telecommunications (MOPT), Bangladesh Telecommunication Regulatory Commission (BTRC), Bangladesh Railway, National Board of Revenue (NBR), Bangladesh Bank, Board of Investment (BOI), Registrar of Joint Stock Companies and Firms (RJSC), Chief Controller of Export & Import, Grameenphone's bankers, vendors and other business partners for the positive support and active cooperation that the Company has received from them.

We are grateful to our valued subscribers who have helped us achieve what we are today. The Board also records its appreciation for the employees at all levels for their dedicated service, sincerity, hard work and strong commitment which enabled the Company to rapidly advance on what we perceive to be a sustainable growth path.

Thanking you all and with best regards.

For and on behalf of the Board of Directors of Grameenphone Ltd.

Arve JohansenChairmanGrameenphone Ltd.Dated: 25 June, 2007

DIRECTORS' REPORTDIRECTORS' REPORTPhones have proven to be of immense potential in boosting income of poor households in rural area, promoting health care, development of agri-business and in the social empowerment of rural women. Village Phone program is also acknowledged as a sustainable development tool by the development agencies such as the World Bank, the United Nations, the International Finance Corporation and USAID.

Contribution to the National Exchequer

Grameenphone as a responsible and transparent organization has been fully compliant with all government regulations and laws of the land since the beginning of its operation. It has become one of the largest contributors to the Government Exchequer in recent years. Since its inception till December 2006, the company contributed BDT 67.18 Billion, in direct and indirect taxes to the Government Exchequer. During 2006 alone, the company contributed BDT 20.51 Billion to the Government treasury. The contribution is expected to grow further with the expansion and growth of the organization.

Dividend

The Directors are pleased to recommend a final dividend @ 60% of the paid up share capital amounting to BDT 1,458 million (@BDT 25.8 per share of BDT 43.00 each) for the year 2006 for consideration and approval of the shareholders for distribution.

Directors of the Board

In line with the Articles of Association of the Company, all the Directors will retire at the AGM and will be eligible for re-appointment, if so nominated by the shareholders. The composition of the Board of Directors during the year was as below:

1. Mr. Arve Johansen, Telenor Mobile Communications AS, Director & Chairman

2. Mr. Ragnar H. Korsæth, Telenor Mobile Communications AS, Director

3. Mr. Ole Bjørn Sjulstad, Telenor Mobile Communications AS, Director

4. Mr. Dipal Chandra Barua, Grameen Telecom, Director

5. Mr. M. Shahjahan, Grameen Telecom, Director

Auditors:

As per Articles of Association, the external auditors of the Company Rahman Rahman Huq, Chartered Accountants, a member firm of KPMG, will retire in this AGM and, being eligible, offered their willingness to be re-appointed for the year 2007. The Directors recommend their re-appointment for the year 2007 till holding of the next AGM.

24 25

Looking Forward to 2007 and Beyond

The year 2006 was a year of considerable achievement in terms of subscriber growth, expansion of network and improved customer service. This has been possible with a highly competent and dedicated team of people under the able leadership of the Management and the Board of the company. We recognize a number of significant challenges ahead. We are aligning our strategy accordingly and we are confident that we will be able to reach our goal with the sincere efforts.

Members of the Board take this opportunity to express their gratitude and sincere thanks to the Shareholders for their continued support and guidance.

We are also grateful to the Government of Bangladesh, Ministry of Post and Telecommunications (MOPT), Bangladesh Telecommunication Regulatory Commission (BTRC), Bangladesh Railway, National Board of Revenue (NBR), Bangladesh Bank, Board of Investment (BOI), Registrar of Joint Stock Companies and Firms (RJSC), Chief Controller of Export & Import, Grameenphone's bankers, vendors and other business partners for the positive support and active cooperation that the Company has received from them.

We are grateful to our valued subscribers who have helped us achieve what we are today. The Board also records its appreciation for the employees at all levels for their dedicated service, sincerity, hard work and strong commitment which enabled the Company to rapidly advance on what we perceive to be a sustainable growth path.

Thanking you all and with best regards.

For and on behalf of the Board of Directors of Grameenphone Ltd.

Arve JohansenChairmanGrameenphone Ltd.Dated: 25 June, 2007

DIRECTORS' REPORTDIRECTORS' REPORTPhones have proven to be of immense potential in boosting income of poor households in rural area, promoting health care, development of agri-business and in the social empowerment of rural women. Village Phone program is also acknowledged as a sustainable development tool by the development agencies such as the World Bank, the United Nations, the International Finance Corporation and USAID.

Contribution to the National Exchequer

Grameenphone as a responsible and transparent organization has been fully compliant with all government regulations and laws of the land since the beginning of its operation. It has become one of the largest contributors to the Government Exchequer in recent years. Since its inception till December 2006, the company contributed BDT 67.18 Billion, in direct and indirect taxes to the Government Exchequer. During 2006 alone, the company contributed BDT 20.51 Billion to the Government treasury. The contribution is expected to grow further with the expansion and growth of the organization.

Dividend

The Directors are pleased to recommend a final dividend @ 60% of the paid up share capital amounting to BDT 1,458 million (@BDT 25.8 per share of BDT 43.00 each) for the year 2006 for consideration and approval of the shareholders for distribution.

Directors of the Board

In line with the Articles of Association of the Company, all the Directors will retire at the AGM and will be eligible for re-appointment, if so nominated by the shareholders. The composition of the Board of Directors during the year was as below:

1. Mr. Arve Johansen, Telenor Mobile Communications AS, Director & Chairman

2. Mr. Ragnar H. Korsæth, Telenor Mobile Communications AS, Director

3. Mr. Ole Bjørn Sjulstad, Telenor Mobile Communications AS, Director

4. Mr. Dipal Chandra Barua, Grameen Telecom, Director

5. Mr. M. Shahjahan, Grameen Telecom, Director

Auditors:

As per Articles of Association, the external auditors of the Company Rahman Rahman Huq, Chartered Accountants, a member firm of KPMG, will retire in this AGM and, being eligible, offered their willingness to be re-appointed for the year 2007. The Directors recommend their re-appointment for the year 2007 till holding of the next AGM.

28

LETTER FROM THE CHIEF EXECUTIVE OFFICER

29

A Challenging & Exciting Year

It was a challenging and exciting year for Grameenphone in 2006. Customer-focused innovation and the Grameenphone Team's remarkable ability to implement new initiatives have enabled us to turn the challenges into opportunities despite the growing intense competition in the market.

The subscriber-base nearly doubled from 5.5 million to 10.8 million coinciding with the 10th year of its receiving the operating license in 1996. The total revenue increased by a healthy 55% compared to the previous year and stood at BDT 45.6 billion, even though the average tariff was reduced by 55%.

Innovative and timely response to the needs of the customers, a robust and quality network with nationwide coverage and committed customer service available across the country were the primary success factors.

Refreshed Brand Image

The company refreshed its image with the introduction of a modern new dynamic logo representing the renewed vision to serve its valued customers even better. This was done while retaining the strong brand-name 'Grameenphone' - a name that has come to signify reliability and trust in Bangladesh.

Innovative Products & Services

In line with the new brand image, the mass market product portfolio was further streamlined and simplified with the introduction of the prepaid "smile" and postpaid "xplore" products. The segmented approach earlier adopted in 2005 with the launch of the first youth brand "djuice" has proven to be a success as more than 2 million customers have opted for this attractive product.

Taking this approach further ahead, for the first time, a new product called "Business Solutions" was launched specially designed to meet the needs of the business segment, both large and small enterprises.

Grameenphone started the Thankyou loyalty program to benefit both the pre-paid and post-paid subscribers through quarterly and monthly free talk-time and usage-based discounts and offering discounts at the Grameenphone partner shops and restaurants.

LETTER FROM THE CEO

28

LETTER FROM THE CHIEF EXECUTIVE OFFICER

29

A Challenging & Exciting Year

It was a challenging and exciting year for Grameenphone in 2006. Customer-focused innovation and the Grameenphone Team's remarkable ability to implement new initiatives have enabled us to turn the challenges into opportunities despite the growing intense competition in the market.

The subscriber-base nearly doubled from 5.5 million to 10.8 million coinciding with the 10th year of its receiving the operating license in 1996. The total revenue increased by a healthy 55% compared to the previous year and stood at BDT 45.6 billion, even though the average tariff was reduced by 55%.

Innovative and timely response to the needs of the customers, a robust and quality network with nationwide coverage and committed customer service available across the country were the primary success factors.

Refreshed Brand Image

The company refreshed its image with the introduction of a modern new dynamic logo representing the renewed vision to serve its valued customers even better. This was done while retaining the strong brand-name 'Grameenphone' - a name that has come to signify reliability and trust in Bangladesh.

Innovative Products & Services

In line with the new brand image, the mass market product portfolio was further streamlined and simplified with the introduction of the prepaid "smile" and postpaid "xplore" products. The segmented approach earlier adopted in 2005 with the launch of the first youth brand "djuice" has proven to be a success as more than 2 million customers have opted for this attractive product.

Taking this approach further ahead, for the first time, a new product called "Business Solutions" was launched specially designed to meet the needs of the business segment, both large and small enterprises.

Grameenphone started the Thankyou loyalty program to benefit both the pre-paid and post-paid subscribers through quarterly and monthly free talk-time and usage-based discounts and offering discounts at the Grameenphone partner shops and restaurants.

LETTER FROM THE CEO

30

Ensuring Network Quality

Fresh investments of over BDT 21 billion have been made during the year to ensure a quality network. A record number of 2651 base stations were rolled out while the core network switching and transmission capacities were increased substantially to keep up with the subscriber growth.

The Grameenphone network now covers more than 95 percent of the country's population and the entire network has EDGE/GPRS coverage. There are presently more than two million EDGE users in the Grameenphone network, indicating that more people are accessing the Internet through mobile phones than through any other means.

Indoor coverage has been provided in many important buildings while the coverage in major highways has been considerably improved during the year. Special measures were taken to constantly monitor the different network quality parameters and take up immediate remedial steps as and when necessary on a continuous basis.

Committed Customer Service

Providing easily accessible customer service is a top priority at Grameenphone. More than 600 Grameenphone Customer Service desks have been set up around the country to make customer services widely available. These centers have substantially reduced travel-time for any after-sales services from as much as eight hours to less than one hour. In addition, 80 flagship Grameenphone Centers have been opened to provide all sales and after-sales services under a single-roof.

Developing Employees & Leaders

Building leaders from within the company has always been one of the primary focus areas of organizational development. A transparent recruitment and performance assessment process along with clear career development opportunities have made Grameenphone a preferred employer in the country.

Appropriate trainings, both at home and abroad, are organized to further develop the individual skill-sets of employees. Advanced management and leadership development trainings are also arranged in cooperation with reputed international institutions, to prepare employees to take up challenging leadership roles and senior management positions within the organization.

The 5000-member Grameenphone Team is one of the most important assets of the company. The high ethical standards, professionalism, commitment and excellent teamwork demonstrated by every member of the Grameenphone Family over the years have been remarkable!

Regulatory Environment

All mobile and private PSTN operators have agreed to bilateral agreements for interconnect traffic. However, a similar two-sided agreement between mobile operators and the state-owned landline operator Bangladesh Telegraph and Telephone Board (BTTB) is still pending.

BTTB, on the other hand, further increased its interconnection capacity, providing a total of over five million Grameenphone customers landline and international dialing connectivity. The link to the sea cable also provided higher internet capacity to the Grameenphone customers, and we do hope that the sea cable will over time be utilized for more international ISD access to all mobile phone users in the country.

CSR Initiatives

As a transparent and compliant company, Corporate Social Responsibility remains an integral part of Grameenphone. A number of community service initiatives have been launched including the

LETTER FROM THE CEO

31

BillPay service, an electronic bill payment and collection service for the Power Development Board and its customers in Chittagong; the Community Information Centers, which for the first time are providing access to the Internet and other information-based services in rural areas; and the HealthLine service providing primary healthcare advice and other medical information to all Grameenphone customers through a 24-hour Call Center manned by licensed physicians.

Three important health sector CSR initiatives were launched more recently. Grameenphone will support the NGO Service Delivery Program of USAID to provide free healthcare services to the under-privileged segment of the population under its nationwide "Smiling Sun Safe Motherhood and Infant Care" program. Grameenphone will also help in the construction and up-keep of five wards and an operation theater at the Dhaka Ahsania Mission Cancer & General Hospital with the primary aim to offer free cancer treatment for disadvantaged patients. In another initiative, Grameenphone will work jointly with UNAIDS in its advocacy campaign to create awareness about HIV and AIDS and generate greater empathy for the afflicted.

Looking Ahead

The mobile phone market is expected to continue to grow at a fast pace in the years to come. Significant tariff reductions have been observed over the past years, and Bangladesh already has one of the lowest tariff levels in the world. We expect our customers to increasingly focus on the overall standard of service and new innovative services.

Grameenphone will continue to make large investments to further expand network capacity to accommodate the increasing number of subscribers. As part of the national economy, Grameenphone will also explore the possibility of listing its shares in the local capital market. It is important that the regulatory and tax regimes remain predictable and stable to sustain this high growth and large investments by the telecommunications industry.

Grameenphone will maintain its focus on making its services affordable to a much bigger segment of the population while upholding the premium quality which has always been its image. The company is well set to meet the future challenges and the Grameenphone Team will continue to deliver results beyond expectations!

Finally, I express my gratitude to the shareholders for their continued guidance and support and to all Grameenphone Family members for making Grameenphone a success that it is today. A special thanks to all the organizations for the cooperation extended towards Grameenphone including the Ministry of Posts and Telecommunications, Bangladesh Telecommunications Regulatory Commission, Board of Investment, National Board of Revenue, Bangladesh Bank, Bangladesh Railway and BTTB. The excellent support provided by Grameenphone's business partners, banks, vendors, suppliers and retailers are also greatly appreciated. Last but not least, I also express my sincere gratitude to all Grameenphone customers for making the company their preferred mobile phone service provider.

LETTER FROM THE CEO

Erik Aas

CEO

Grameenphone Ltd.

Dated: 25 June, 2007

30

Ensuring Network Quality

Fresh investments of over BDT 21 billion have been made during the year to ensure a quality network. A record number of 2651 base stations were rolled out while the core network switching and transmission capacities were increased substantially to keep up with the subscriber growth.

The Grameenphone network now covers more than 95 percent of the country's population and the entire network has EDGE/GPRS coverage. There are presently more than two million EDGE users in the Grameenphone network, indicating that more people are accessing the Internet through mobile phones than through any other means.

Indoor coverage has been provided in many important buildings while the coverage in major highways has been considerably improved during the year. Special measures were taken to constantly monitor the different network quality parameters and take up immediate remedial steps as and when necessary on a continuous basis.

Committed Customer Service

Providing easily accessible customer service is a top priority at Grameenphone. More than 600 Grameenphone Customer Service desks have been set up around the country to make customer services widely available. These centers have substantially reduced travel-time for any after-sales services from as much as eight hours to less than one hour. In addition, 80 flagship Grameenphone Centers have been opened to provide all sales and after-sales services under a single-roof.

Developing Employees & Leaders

Building leaders from within the company has always been one of the primary focus areas of organizational development. A transparent recruitment and performance assessment process along with clear career development opportunities have made Grameenphone a preferred employer in the country.

Appropriate trainings, both at home and abroad, are organized to further develop the individual skill-sets of employees. Advanced management and leadership development trainings are also arranged in cooperation with reputed international institutions, to prepare employees to take up challenging leadership roles and senior management positions within the organization.

The 5000-member Grameenphone Team is one of the most important assets of the company. The high ethical standards, professionalism, commitment and excellent teamwork demonstrated by every member of the Grameenphone Family over the years have been remarkable!

Regulatory Environment

All mobile and private PSTN operators have agreed to bilateral agreements for interconnect traffic. However, a similar two-sided agreement between mobile operators and the state-owned landline operator Bangladesh Telegraph and Telephone Board (BTTB) is still pending.

BTTB, on the other hand, further increased its interconnection capacity, providing a total of over five million Grameenphone customers landline and international dialing connectivity. The link to the sea cable also provided higher internet capacity to the Grameenphone customers, and we do hope that the sea cable will over time be utilized for more international ISD access to all mobile phone users in the country.

CSR Initiatives

As a transparent and compliant company, Corporate Social Responsibility remains an integral part of Grameenphone. A number of community service initiatives have been launched including the

LETTER FROM THE CEO

31

BillPay service, an electronic bill payment and collection service for the Power Development Board and its customers in Chittagong; the Community Information Centers, which for the first time are providing access to the Internet and other information-based services in rural areas; and the HealthLine service providing primary healthcare advice and other medical information to all Grameenphone customers through a 24-hour Call Center manned by licensed physicians.

Three important health sector CSR initiatives were launched more recently. Grameenphone will support the NGO Service Delivery Program of USAID to provide free healthcare services to the under-privileged segment of the population under its nationwide "Smiling Sun Safe Motherhood and Infant Care" program. Grameenphone will also help in the construction and up-keep of five wards and an operation theater at the Dhaka Ahsania Mission Cancer & General Hospital with the primary aim to offer free cancer treatment for disadvantaged patients. In another initiative, Grameenphone will work jointly with UNAIDS in its advocacy campaign to create awareness about HIV and AIDS and generate greater empathy for the afflicted.

Looking Ahead

The mobile phone market is expected to continue to grow at a fast pace in the years to come. Significant tariff reductions have been observed over the past years, and Bangladesh already has one of the lowest tariff levels in the world. We expect our customers to increasingly focus on the overall standard of service and new innovative services.

Grameenphone will continue to make large investments to further expand network capacity to accommodate the increasing number of subscribers. As part of the national economy, Grameenphone will also explore the possibility of listing its shares in the local capital market. It is important that the regulatory and tax regimes remain predictable and stable to sustain this high growth and large investments by the telecommunications industry.

Grameenphone will maintain its focus on making its services affordable to a much bigger segment of the population while upholding the premium quality which has always been its image. The company is well set to meet the future challenges and the Grameenphone Team will continue to deliver results beyond expectations!

Finally, I express my gratitude to the shareholders for their continued guidance and support and to all Grameenphone Family members for making Grameenphone a success that it is today. A special thanks to all the organizations for the cooperation extended towards Grameenphone including the Ministry of Posts and Telecommunications, Bangladesh Telecommunications Regulatory Commission, Board of Investment, National Board of Revenue, Bangladesh Bank, Bangladesh Railway and BTTB. The excellent support provided by Grameenphone's business partners, banks, vendors, suppliers and retailers are also greatly appreciated. Last but not least, I also express my sincere gratitude to all Grameenphone customers for making the company their preferred mobile phone service provider.

LETTER FROM THE CEO

Erik Aas

CEO

Grameenphone Ltd.

Dated: 25 June, 2007

33

PROFILES OF THE MANAGEMENT TEAM

Erik Aas�(40 years of age, Norwegian)

Erik Aas joined as the Chief Executive Officer in December 2004. He has 10 years of experience from Telenor, six of which have been spent in Asia. He held the position of Marketing Director of Malaysian mobile phone company DiGi from 2002 until 2004. He was a Board Member of Grameenphone from October 2001 up to December 2004.

He completed his Master of Science degree from NTNU in Trondheim, Norway in 1991, and also earned a Master of Business Administration degree from IMD in Switzerland in 2001.

Khalid Hasan�(51 years of age, Bangladeshi)

He was appointed as Director, Corporate and Regulatory Affairs, in May 2001. He has a Masters Degree in Business Management from Dhaka University.

He has acquired a wide range of experiences during the last two decades in international business development, specializing in breakthrough joint ventures and global partnerships in rapidly changing, highly competitive environments. Prior to joining Grameenphone, he was the country manager for General Electric (GE).

Stein Naevdal-Larsen �(40 years of age, Norwegian)

Stein Naevdal-Larsen was appointed as the Chief Marketing Officer in December 2006. He joined as the CIO of Grameenphone in February 2004. He has been working in various management positions in Telenor since 1997. Prior to joining Telenor, he gained experience working in different positions in multinational companies.

His academic background is in Business Administration and Project Management from the Norwegian School of Management and in Mathematics and Informatics from the University of Oslo.

1. N.K.A. Mobin2. Syed Yamin Bakht

3. Farhad Ahmad4. Md. Arif Al Islam5. Emad Ul Ameen6. Raihan Shamsi

7. Md. Shafiqul Islam8. Lutfor Rahman

9. Erik Aas10. Khalid Hasan

11. Stein Naevdal-Larsen12. Kafil H.S. Muyeed

Emad Ul Ameen�(51 years of age, Bangladeshi)

Emad Ul Ameen was appointed as Director, Human Resources Division, in November 2003. He has a Masters degree in Marketing from Dhaka University and has extensive experience working in responsible positions in reputed multinational organizations in Human Resources functions.

Prior to joining Grameenphone, he was Director of a leading consultancy firm in the country providing services as a management consultant to various multinational and local companies in Human Resources and Corporate Governance areas. He has also worked as Director Human Resources of British American Tobacco, Director Human Resources of American Express Bangladesh and had also been with BOC Bangladesh Ltd. in various positions in its Personnel function.

1 2 3 4 5 6

7 8 9 10 11 12

32

33

PROFILES OF THE MANAGEMENT TEAM

Erik Aas�(40 years of age, Norwegian)

Erik Aas joined as the Chief Executive Officer in December 2004. He has 10 years of experience from Telenor, six of which have been spent in Asia. He held the position of Marketing Director of Malaysian mobile phone company DiGi from 2002 until 2004. He was a Board Member of Grameenphone from October 2001 up to December 2004.

He completed his Master of Science degree from NTNU in Trondheim, Norway in 1991, and also earned a Master of Business Administration degree from IMD in Switzerland in 2001.

Khalid Hasan�(51 years of age, Bangladeshi)

He was appointed as Director, Corporate and Regulatory Affairs, in May 2001. He has a Masters Degree in Business Management from Dhaka University.

He has acquired a wide range of experiences during the last two decades in international business development, specializing in breakthrough joint ventures and global partnerships in rapidly changing, highly competitive environments. Prior to joining Grameenphone, he was the country manager for General Electric (GE).

Stein Naevdal-Larsen �(40 years of age, Norwegian)

Stein Naevdal-Larsen was appointed as the Chief Marketing Officer in December 2006. He joined as the CIO of Grameenphone in February 2004. He has been working in various management positions in Telenor since 1997. Prior to joining Telenor, he gained experience working in different positions in multinational companies.

His academic background is in Business Administration and Project Management from the Norwegian School of Management and in Mathematics and Informatics from the University of Oslo.

1. N.K.A. Mobin2. Syed Yamin Bakht

3. Farhad Ahmad4. Md. Arif Al Islam5. Emad Ul Ameen6. Raihan Shamsi

7. Md. Shafiqul Islam8. Lutfor Rahman

9. Erik Aas10. Khalid Hasan

11. Stein Naevdal-Larsen12. Kafil H.S. Muyeed

Emad Ul Ameen�(51 years of age, Bangladeshi)

Emad Ul Ameen was appointed as Director, Human Resources Division, in November 2003. He has a Masters degree in Marketing from Dhaka University and has extensive experience working in responsible positions in reputed multinational organizations in Human Resources functions.

Prior to joining Grameenphone, he was Director of a leading consultancy firm in the country providing services as a management consultant to various multinational and local companies in Human Resources and Corporate Governance areas. He has also worked as Director Human Resources of British American Tobacco, Director Human Resources of American Express Bangladesh and had also been with BOC Bangladesh Ltd. in various positions in its Personnel function.

1 2 3 4 5 6

7 8 9 10 11 12

32

34 35

Kafil H.S. Muyeed�(40 years of age, Bangladeshi)

He was appointed as Director, New Business in June 2006. The New Business division is responsible for Corporate Social Responsibility, Community Relations, Strategy Coordination and New Business Development. Prior to this, Kafil was the Director, Marketing. He has a Bachelor of Science degree in Civil Engineering from the Florida Institute of Technology in the USA.

After joining Grameenphone, he gained extensive operational experience in all sales and marketing areas as well as in development of key commercial and corporate strategies to drive growth. Prior to joining Grameenphone in 1998, he gained entrepreneurial and marketing experience in international trade and export.

Syed Yamin Bakht �(49 years of age, Bangladeshi)

He joined as the Head of Information Department in June 1999. He is the Spokesperson of the company.

Educated in the United States as a Journalist, he has more than a decade of previous working experience in the media both at home and abroad. He has worked in senior positions of some leading newspapers in Bangladesh.

Lutfor Rahman�(47 years of age, Bangladeshi)

Lutfor Rahman was appointed as Acting Head of Information Technology Division in December 2006. He was earlier heading the Project and Change Management Department in IT. He joined Grameenphone in January 2001.

He has a Masters in Statistics degree from Jahangirnagar University, Bangladesh and Computing Science degree from Bond University, Australia. He also recently completed Masters in Business Administration from East West University, Bangladesh.

Before joining Grameenphone, he worked for renowned companies in senior management positions. He has more than 17 years of experience in IT involving Banking, Manufacturing and Telecom industries.

Raihan Shamsi�(34 years of age, Bangladeshi)

Raihan Shamsi was appointed as the Company Secretary in January 2005. He also has the role of Deputy Chief Financial Officer in Grameenphone.

He is a Fellow of the Institute of Chartered Accountants of Bangladesh and has experience of working in the Financial Management and Internal Control functions for around 10 years. Prior to joining Grameenphone, he worked in a number of multinational organizations including Shell, Unilever and KPMG Bangladesh.

Farhad F. Ahmad�(39 years of age, Bangladeshi)

Farhad F. Ahmad joined as the Head of Internal Audit in December 2006. He has a Master in Business Administration degree from the University of Liverpool, UK and a Bachelor in Business Administration degree from the University of Houston, USA.

Prior to joining Grameenphone, he was the Chief Operating Officer of STS Group (Apollo Hospital and International School, Dhaka). He has also worked as the Internal Audit Manager and in various Finance roles in British American Tobacco, Bangladesh.

N.K.A. Mobin�(47 years of age, Bangladeshi)

NKA Mobin was appointed as Director Administration and Projects in May 2007, responsible for Administration, Fiber Optic Network (FON), Corporate Headquarter Project (CHQ) and also Business Efficiency Projects in Grameenphone. Earlier, he was responsible for the Sarbanes-Oxley Act (SOA) implementation and Financing Projects. He joined the company as Director Finance and Company Secretary to the Board in November 1998 and continued in that responsibility till 2005.

He holds an MBA in Finance from Dhaka University and completed his Chartered Accountancy degree from the KPMG-Rahman Rahman Huq. Prior to joining Grameenphone, he worked with KAFCO, Novartis Bangladesh and Swedish Match, all of which are international and multinational companies, for more then 12 years.

Md. Shafiqul Islam�(36 years of age, Bangladeshi)

Md. Shafiqul Islam was appointed as the Chief Technical Officer in 2006. He has been working in Grameenphone since its inception. He has a Bachelors degree in Electrical and Electronics Engineering from Bangladesh University of Engineering and Technology.

Shafiq started as a planner of the Grameenphone mobile network and was involved in different areas of planning and was the Head of Network Planning since 1999. He also has been a member of the Grameenphone Business Planning team and has considerable experience in cost efficiency of network CAPEX and OPEX.

Md. Arif Al Islam�(36 years of age, Bangladeshi)

Md. Arif Al Islam was appointed as the Chief Financial Officer in 2006. He is a Fellow of the Chartered Certified Accountants from UK.

He has over five years of public practice experience in the UK with a range of experience in audit, taxation and financial consultancy services. He has been with Grameenphone over the last seven years and mainly contributed in the areas of financial planning, financial system implementation and business analysis.

PROFILES OF THE MANAGEMENT TEAMPROFILES OF THE MANAGEMENT TEAM

34 35

Kafil H.S. Muyeed�(40 years of age, Bangladeshi)

He was appointed as Director, New Business in June 2006. The New Business division is responsible for Corporate Social Responsibility, Community Relations, Strategy Coordination and New Business Development. Prior to this, Kafil was the Director, Marketing. He has a Bachelor of Science degree in Civil Engineering from the Florida Institute of Technology in the USA.

After joining Grameenphone, he gained extensive operational experience in all sales and marketing areas as well as in development of key commercial and corporate strategies to drive growth. Prior to joining Grameenphone in 1998, he gained entrepreneurial and marketing experience in international trade and export.

Syed Yamin Bakht �(49 years of age, Bangladeshi)

He joined as the Head of Information Department in June 1999. He is the Spokesperson of the company.

Educated in the United States as a Journalist, he has more than a decade of previous working experience in the media both at home and abroad. He has worked in senior positions of some leading newspapers in Bangladesh.

Lutfor Rahman�(47 years of age, Bangladeshi)

Lutfor Rahman was appointed as Acting Head of Information Technology Division in December 2006. He was earlier heading the Project and Change Management Department in IT. He joined Grameenphone in January 2001.

He has a Masters in Statistics degree from Jahangirnagar University, Bangladesh and Computing Science degree from Bond University, Australia. He also recently completed Masters in Business Administration from East West University, Bangladesh.

Before joining Grameenphone, he worked for renowned companies in senior management positions. He has more than 17 years of experience in IT involving Banking, Manufacturing and Telecom industries.

Raihan Shamsi�(34 years of age, Bangladeshi)

Raihan Shamsi was appointed as the Company Secretary in January 2005. He also has the role of Deputy Chief Financial Officer in Grameenphone.

He is a Fellow of the Institute of Chartered Accountants of Bangladesh and has experience of working in the Financial Management and Internal Control functions for around 10 years. Prior to joining Grameenphone, he worked in a number of multinational organizations including Shell, Unilever and KPMG Bangladesh.

Farhad F. Ahmad�(39 years of age, Bangladeshi)

Farhad F. Ahmad joined as the Head of Internal Audit in December 2006. He has a Master in Business Administration degree from the University of Liverpool, UK and a Bachelor in Business Administration degree from the University of Houston, USA.

Prior to joining Grameenphone, he was the Chief Operating Officer of STS Group (Apollo Hospital and International School, Dhaka). He has also worked as the Internal Audit Manager and in various Finance roles in British American Tobacco, Bangladesh.

N.K.A. Mobin�(47 years of age, Bangladeshi)

NKA Mobin was appointed as Director Administration and Projects in May 2007, responsible for Administration, Fiber Optic Network (FON), Corporate Headquarter Project (CHQ) and also Business Efficiency Projects in Grameenphone. Earlier, he was responsible for the Sarbanes-Oxley Act (SOA) implementation and Financing Projects. He joined the company as Director Finance and Company Secretary to the Board in November 1998 and continued in that responsibility till 2005.

He holds an MBA in Finance from Dhaka University and completed his Chartered Accountancy degree from the KPMG-Rahman Rahman Huq. Prior to joining Grameenphone, he worked with KAFCO, Novartis Bangladesh and Swedish Match, all of which are international and multinational companies, for more then 12 years.

Md. Shafiqul Islam�(36 years of age, Bangladeshi)

Md. Shafiqul Islam was appointed as the Chief Technical Officer in 2006. He has been working in Grameenphone since its inception. He has a Bachelors degree in Electrical and Electronics Engineering from Bangladesh University of Engineering and Technology.

Shafiq started as a planner of the Grameenphone mobile network and was involved in different areas of planning and was the Head of Network Planning since 1999. He also has been a member of the Grameenphone Business Planning team and has considerable experience in cost efficiency of network CAPEX and OPEX.

Md. Arif Al Islam�(36 years of age, Bangladeshi)

Md. Arif Al Islam was appointed as the Chief Financial Officer in 2006. He is a Fellow of the Chartered Certified Accountants from UK.

He has over five years of public practice experience in the UK with a range of experience in audit, taxation and financial consultancy services. He has been with Grameenphone over the last seven years and mainly contributed in the areas of financial planning, financial system implementation and business analysis.

PROFILES OF THE MANAGEMENT TEAMPROFILES OF THE MANAGEMENT TEAM

37

HEAD OFINTERNAL AUDIT

Farhad F Ahmad

COMPANY SECRETARY& DEPUTY CFO

Raihan Shamsi

DIRECTORNEW BUSINESS

Kafil H. S. Muyeed

DIRECTORHUMAN RESOURCES

Emad Ul Ameen

DIRECTOR REGULATORY& CORPORATE AFFAIRS

Khalid Hasan

CHIEF MARKETINGOFFICER

Stein Naevdal-Larsen

HEAD OFINFORMATION

Syed Yamin Bakht

ACTING HEAD OF IT

Lutfor Rahman

DIRECTORADMINISTRATION &

PROJECTS

N K A Mobin

CHIEF TECHNICALOFFICER

Md. Shafiqul Islam

CHIEF FINANCIALOFFICER

Md. Arif Al Islam

CHIEF EXECUTIVEOFFICER

Erik Aas

ORGANIZATIONAL CHART

36

ORGANIZATIONAL CHART

37

HEAD OFINTERNAL AUDIT

Farhad F Ahmad

COMPANY SECRETARY& DEPUTY CFO

Raihan Shamsi

DIRECTORNEW BUSINESS

Kafil H. S. Muyeed

DIRECTORHUMAN RESOURCES

Emad Ul Ameen

DIRECTOR REGULATORY& CORPORATE AFFAIRS

Khalid Hasan

CHIEF MARKETINGOFFICER

Stein Naevdal-Larsen

HEAD OFINFORMATION

Syed Yamin Bakht

ACTING HEAD OF IT

Lutfor Rahman

DIRECTORADMINISTRATION &

PROJECTS

N K A Mobin

CHIEF TECHNICALOFFICER

Md. Shafiqul Islam

CHIEF FINANCIALOFFICER

Md. Arif Al Islam

CHIEF EXECUTIVEOFFICER

Erik Aas

ORGANIZATIONAL CHART

36

ORGANIZATIONAL CHART

39

Corporate Governance is the structured process through which an organization is directed, controlled and held accountable. It clearly defines the rights and responsibility of the Board, Management, Shareholders and other Stakeholders. Grameenphone believes in the continued improvement of corporate governance. This in turn has led the Company to commit considerable resources and implement internationally accepted Corporate Standards in its day-to-day operations.

The Board of Directors and the Management Team of Grameenphone are committed to maintaining effective Corporate Governance through a culture of accountability, transparency, well-understood policies and procedures. The Board of Directors and the Management Team also ensures maintaining of compliance with all laws of Bangladesh and company policies, procedures and internal controls.

The Articles of Association (AOA) is the key governance guideline for the company set by the Shareholders. The Board of Directors and Management Team run the affairs of the Company in compliance with the guidelines of the AOA and the Companies Act. 1994.�

BOARD OF DIRECTORS

The Directors of the Board are appointed by the Shareholders each year in the Annual General Meeting (AGM) and they are accountable to the Shareholders. The Board is responsible for guiding the company towards the goal set by the Shareholders. The Board of Directors in Grameenphone is composed of five members including the Chairman who is elected from amongst the members.

The AOA requires the Board to meet at least four times a year and when otherwise duly called for in writing by a Board member or Shareholder. Dates for Board Meetings in the ensuing year are decided in advance and published as part of the Board Calendar together with the main agenda items and the notice of each Board Meeting is given in writing.

CORPORATE GOVERNANCE

38

CORPORATE GOVERNANCE

39

Corporate Governance is the structured process through which an organization is directed, controlled and held accountable. It clearly defines the rights and responsibility of the Board, Management, Shareholders and other Stakeholders. Grameenphone believes in the continued improvement of corporate governance. This in turn has led the Company to commit considerable resources and implement internationally accepted Corporate Standards in its day-to-day operations.

The Board of Directors and the Management Team of Grameenphone are committed to maintaining effective Corporate Governance through a culture of accountability, transparency, well-understood policies and procedures. The Board of Directors and the Management Team also ensures maintaining of compliance with all laws of Bangladesh and company policies, procedures and internal controls.

The Articles of Association (AOA) is the key governance guideline for the company set by the Shareholders. The Board of Directors and Management Team run the affairs of the Company in compliance with the guidelines of the AOA and the Companies Act. 1994.�

BOARD OF DIRECTORS

The Directors of the Board are appointed by the Shareholders each year in the Annual General Meeting (AGM) and they are accountable to the Shareholders. The Board is responsible for guiding the company towards the goal set by the Shareholders. The Board of Directors in Grameenphone is composed of five members including the Chairman who is elected from amongst the members.

The AOA requires the Board to meet at least four times a year and when otherwise duly called for in writing by a Board member or Shareholder. Dates for Board Meetings in the ensuing year are decided in advance and published as part of the Board Calendar together with the main agenda items and the notice of each Board Meeting is given in writing.

CORPORATE GOVERNANCE

38

CORPORATE GOVERNANCE

41

d) Internal Control

Grameenphone has established an effective internal control system to maintain accountability, integrity and security of its assets, as well as information. The internal control system guides every member of the company with regard to processing of every transaction, authority level for approval of the transaction, documentation, access to the systems and related responsibilities. As the business of the Company evolves continuously, the requirements for amendment and improvement of internal control systems are also a continuous process. The external auditors and the internal auditors review the company's internal controls on an annual basis.

e) Sarbanes Oxley Compliance

Grameenphone has established sound internal controls over financial reporting which is in line with the requirements of the Sarbanes-Oxley Act (SOX) of the U.S. Securities and Exchange Commission.

The Sarbanes-Oxley Act includes strict requirements and internal controls relating to financial reporting and good governance. Grameenphone has successfully implemented a strong set of internal control points in its major class of transactions as well as in the IT section. Additionally, Grameenphone has also implemented various policies and procedures for ensuring strong governance at the company level.

f) Statutory Audit

Statutory Audit of the Company is governed by the Companies Act, 1994 of Bangladesh. The Companies Act explicitly provides guidelines for the appointment, scope of work and retirement of auditors. Shareholders appoint auditors in the Annual General Meeting. The Shareholders appoint auditors having reputation and affiliation with internationally reputed accounting firms. KPMG - Rahman Rahman Huq, a member firm of KPMG is the Statutory Auditor of the company. In addition to the annual audit, the auditors carry out interim audit and review the quarterly financial reports.

g) Compliance with Rules & Regulations of the Country

As the leaders of a compliant Company, the Management of Grameenphone is accountable not only to its Board or shareholders but also to various external regulatory bodies. These regulatory bodies maintain a close look on Grameenphone since it has become one of the largest organizations in Bangladesh as a result of its large subscriber base, wide network and huge contributions to the Government Exchequer. In this context, the Company provides complete financial reports to the National Board of Revenue (NBR), Registrar of Joint Stock Companies & Firms (RJSC) and the Board of Investment (BOI). Apart from this, for every approval from regulatory bodies or as a routine reporting, Grameenphone is providing information to

CORPORATE GOVERNANCE

40

MANAGEMENT TEAM

The Management Team is the executive committee of Grameenphone managing the affairs of the Company. The Management Team consists of the CEO and other key leaders across the company. The Management Team endeavors to achieve the strategic goals and mission of the Company set by the Board of Directors.

TREASURY COMMITTEE�This committee consists of three members i.e. two members from the shareholders and the Finance Director of the Company. All significant financial matters which concern the Board are discussed in this committee in detail. The issues are ultimately forwarded to the Board for their final review and approval.

CONTROL ENVIRONMENT IN GRAMEENPHONE

In implementing the right Governance in Grameenphone, the Board and the Management Team ensures the following:

a) Business Plan & Budget

The Management Team each year prepares the Annual Budget and Business Plan which is approved by the Board. It is prepared and amended from time to time with the active participation of all divisions of Grameenphone and these are reviewed and approved by the Board.

b) Financial Reporting

Grameenphone has strong financial reporting procedures in line with the requirements of the International Financial Reporting Standard (IFRS), Bangladesh Accounting Standard (BAS) and other local legislations. Grameenphone in 2006 implemented total automation under the ERP (Enterprise-wise Resource Planning) model. Reports are generated from this automated platform.

Apart from the statutory reporting, Grameenphone also maintains other reporting to its group company Telenor which consolidates subsidiary's financial information in its consolidated Financial Statements.

c) Management of Assets

Grameenphone is continuously investing in telecom network and other related infrastructure in line with the Business Plan and Budget. To maintain accountability and proper utilization of assets, it complies with clearly defined and approved policies starting from procurement, recording, reporting and up to the level of disposal of assets. To ensure proper safeguarding of assets, physical verification of network assets is conducted periodically and all risks relating to these assets are properly insured both locally and internationally.

CORPORATE GOVERNANCE

41

d) Internal Control

Grameenphone has established an effective internal control system to maintain accountability, integrity and security of its assets, as well as information. The internal control system guides every member of the company with regard to processing of every transaction, authority level for approval of the transaction, documentation, access to the systems and related responsibilities. As the business of the Company evolves continuously, the requirements for amendment and improvement of internal control systems are also a continuous process. The external auditors and the internal auditors review the company's internal controls on an annual basis.

e) Sarbanes Oxley Compliance

Grameenphone has established sound internal controls over financial reporting which is in line with the requirements of the Sarbanes-Oxley Act (SOX) of the U.S. Securities and Exchange Commission.

The Sarbanes-Oxley Act includes strict requirements and internal controls relating to financial reporting and good governance. Grameenphone has successfully implemented a strong set of internal control points in its major class of transactions as well as in the IT section. Additionally, Grameenphone has also implemented various policies and procedures for ensuring strong governance at the company level.

f) Statutory Audit

Statutory Audit of the Company is governed by the Companies Act, 1994 of Bangladesh. The Companies Act explicitly provides guidelines for the appointment, scope of work and retirement of auditors. Shareholders appoint auditors in the Annual General Meeting. The Shareholders appoint auditors having reputation and affiliation with internationally reputed accounting firms. KPMG - Rahman Rahman Huq, a member firm of KPMG is the Statutory Auditor of the company. In addition to the annual audit, the auditors carry out interim audit and review the quarterly financial reports.

g) Compliance with Rules & Regulations of the Country

As the leaders of a compliant Company, the Management of Grameenphone is accountable not only to its Board or shareholders but also to various external regulatory bodies. These regulatory bodies maintain a close look on Grameenphone since it has become one of the largest organizations in Bangladesh as a result of its large subscriber base, wide network and huge contributions to the Government Exchequer. In this context, the Company provides complete financial reports to the National Board of Revenue (NBR), Registrar of Joint Stock Companies & Firms (RJSC) and the Board of Investment (BOI). Apart from this, for every approval from regulatory bodies or as a routine reporting, Grameenphone is providing information to

CORPORATE GOVERNANCE

40

MANAGEMENT TEAM

The Management Team is the executive committee of Grameenphone managing the affairs of the Company. The Management Team consists of the CEO and other key leaders across the company. The Management Team endeavors to achieve the strategic goals and mission of the Company set by the Board of Directors.

TREASURY COMMITTEE�This committee consists of three members i.e. two members from the shareholders and the Finance Director of the Company. All significant financial matters which concern the Board are discussed in this committee in detail. The issues are ultimately forwarded to the Board for their final review and approval.

CONTROL ENVIRONMENT IN GRAMEENPHONE

In implementing the right Governance in Grameenphone, the Board and the Management Team ensures the following:

a) Business Plan & Budget

The Management Team each year prepares the Annual Budget and Business Plan which is approved by the Board. It is prepared and amended from time to time with the active participation of all divisions of Grameenphone and these are reviewed and approved by the Board.

b) Financial Reporting

Grameenphone has strong financial reporting procedures in line with the requirements of the International Financial Reporting Standard (IFRS), Bangladesh Accounting Standard (BAS) and other local legislations. Grameenphone in 2006 implemented total automation under the ERP (Enterprise-wise Resource Planning) model. Reports are generated from this automated platform.

Apart from the statutory reporting, Grameenphone also maintains other reporting to its group company Telenor which consolidates subsidiary's financial information in its consolidated Financial Statements.

c) Management of Assets

Grameenphone is continuously investing in telecom network and other related infrastructure in line with the Business Plan and Budget. To maintain accountability and proper utilization of assets, it complies with clearly defined and approved policies starting from procurement, recording, reporting and up to the level of disposal of assets. To ensure proper safeguarding of assets, physical verification of network assets is conducted periodically and all risks relating to these assets are properly insured both locally and internationally.

CORPORATE GOVERNANCE

43

i) Telenor Development Process

Telenor Development Process (TDP) has been adopted by Grameenphone since 2005 as a leadership development process. The TDP process aim to set direction, manage performance and develop individual, team and organizational capabilities to deliver business results. Under this process, critical positions are identified, along with the requirements to fill such positions. Talents and potential successors are also identified, as are candidates for future management positions. TDP at Grameenphone supports leaders and employees in developing capabilities in strategic areas thereby ensuring a responsible and productive corporate environment.��ii) Internal Value Creation (IVC)

Each year a survey is conducted where all the employees get the chance of expressing their independent views about the organization, their motivation, processes and improvement opportunities. The Management Team undertakes an action plan based on the survey results. IVC contributes to ensuring a fair, transparent and professional working environment in Grameenphone.

Grameenphone believes in transparency and accountability to society as a whole through establishment of efficient and effective Corporate Governance. It also believes that Corporate Governance is a journey not a destination and it needs to be continuously developed and adapted to meet the changing needs of a modern business.

CORPORATE GOVERNANCE

42

various bodies such as Bangladesh Bank, Bangladesh Telecommunications Regulatory Commission (BTRC), Customs Authority and other relevant organizations.

h) Internal Audit

Grameenphone's Internal Audit department is responsible for monitoring the operational activities of the Company in the light of policies or procedures set by the Board of Directors and the Management Team for ensuring an effective internal control, transparency and accountability in the organization. In addition, this unit has to follow the Group Internal Auditing Guideline, being a subsidiary of Telenor. On the basis of reports from the Internal Auditor, actions are taken to bring developments and rectifications in the processes and policies.

CORPORATE GOVERNANCE

i) Business Continuity Management (BCM)

Business Continuity Management (BCM) process has been adopted in Grameenphone in 2006 for identifying and addressing the potential risks and threats related to environmental, technical and operational areas. In this process, after an assessment of the probability and impact of the potential risks, detail plans have been prepared in order to prevent and manage the risks and to secure the continuity of the business in the long run.

j) Codes of Conduct

Grameenphone adopted a clearly defined Codes of Conduct approved by the Board for securing business ethics in all aspects of the Company's activities. The Codes of Conduct are properly communicated to all the employees, who are strictly required to abide by it.

k) Management & Leadership Development

Employees are one of the most important assets of Grameenphone. Transparency of their goal and performance measurement plays an important role in achieving the target of the organization. Grameenphone has implemented the following tools to maintain this asset to reach its goal.

43

i) Telenor Development Process

Telenor Development Process (TDP) has been adopted by Grameenphone since 2005 as a leadership development process. The TDP process aim to set direction, manage performance and develop individual, team and organizational capabilities to deliver business results. Under this process, critical positions are identified, along with the requirements to fill such positions. Talents and potential successors are also identified, as are candidates for future management positions. TDP at Grameenphone supports leaders and employees in developing capabilities in strategic areas thereby ensuring a responsible and productive corporate environment.��ii) Internal Value Creation (IVC)

Each year a survey is conducted where all the employees get the chance of expressing their independent views about the organization, their motivation, processes and improvement opportunities. The Management Team undertakes an action plan based on the survey results. IVC contributes to ensuring a fair, transparent and professional working environment in Grameenphone.

Grameenphone believes in transparency and accountability to society as a whole through establishment of efficient and effective Corporate Governance. It also believes that Corporate Governance is a journey not a destination and it needs to be continuously developed and adapted to meet the changing needs of a modern business.

CORPORATE GOVERNANCE

42

various bodies such as Bangladesh Bank, Bangladesh Telecommunications Regulatory Commission (BTRC), Customs Authority and other relevant organizations.

h) Internal Audit

Grameenphone's Internal Audit department is responsible for monitoring the operational activities of the Company in the light of policies or procedures set by the Board of Directors and the Management Team for ensuring an effective internal control, transparency and accountability in the organization. In addition, this unit has to follow the Group Internal Auditing Guideline, being a subsidiary of Telenor. On the basis of reports from the Internal Auditor, actions are taken to bring developments and rectifications in the processes and policies.

CORPORATE GOVERNANCE

i) Business Continuity Management (BCM)

Business Continuity Management (BCM) process has been adopted in Grameenphone in 2006 for identifying and addressing the potential risks and threats related to environmental, technical and operational areas. In this process, after an assessment of the probability and impact of the potential risks, detail plans have been prepared in order to prevent and manage the risks and to secure the continuity of the business in the long run.

j) Codes of Conduct

Grameenphone adopted a clearly defined Codes of Conduct approved by the Board for securing business ethics in all aspects of the Company's activities. The Codes of Conduct are properly communicated to all the employees, who are strictly required to abide by it.

k) Management & Leadership Development

Employees are one of the most important assets of Grameenphone. Transparency of their goal and performance measurement plays an important role in achieving the target of the organization. Grameenphone has implemented the following tools to maintain this asset to reach its goal.

45

Since its inception, Grameenphone has always been committed to developing local talents. The employees are one of its most important assets. As such, priority is given to creating expertise among its employees through appropriate trainings both at home and abroad.

Grameenphone presently has more than 5,000 employees. As a rapidly growing company, the need to develop personnel who can take on leadership roles have increased dramatically. In a specialized industry like the telecom sector, it is essential to develop and fill in the new leadership requirements from within.

The Human Resources Division in Grameenphone is fully geared to meet Grameenphone's human resource development and training needs. The HR Development team works closely with the other departments to assess leadership needs and human resource development challenges.

Today Grameenphone can boast the highest level of human resource competency and aptitude. Already Grameenphone has the lowest expatriate to local employee ratio of any multinational corporation in Bangladesh, and local employees are continuously being trained to take on new challenging leadership roles within the organization and fill senior management positions.

TRAINING OPPORTUNITIES

The process of leadership identification and development at Grameenphone begins during the annual appraisal dialogue. Different types of leadership development needs are identified and accordingly relevant development plans are recommended by the supervisors. Some of the leadership development plans include: training, coaching, new tasks/project work, job rotation, secondment in other Telenor operations abroad and others.

Grameenphone has separate agreements with the Stockholm School of Economics in Sweden to provide "Core Leadership Training" to senior managers, the Singapore Institute of Management for providing training on "Leadership coaching", the Hyderabad-based Indian School of Business for providing training on "Strategic leadership" and the British Council for providing "Management development" training to Grameenphone employees. In addition, Grameenphone provides educational grants encouraging employees to go for higher education.

LEADERSHIP DEVELOPMENT

44

LEADERSHIP DEVELOPMENT

45

Since its inception, Grameenphone has always been committed to developing local talents. The employees are one of its most important assets. As such, priority is given to creating expertise among its employees through appropriate trainings both at home and abroad.

Grameenphone presently has more than 5,000 employees. As a rapidly growing company, the need to develop personnel who can take on leadership roles have increased dramatically. In a specialized industry like the telecom sector, it is essential to develop and fill in the new leadership requirements from within.

The Human Resources Division in Grameenphone is fully geared to meet Grameenphone's human resource development and training needs. The HR Development team works closely with the other departments to assess leadership needs and human resource development challenges.

Today Grameenphone can boast the highest level of human resource competency and aptitude. Already Grameenphone has the lowest expatriate to local employee ratio of any multinational corporation in Bangladesh, and local employees are continuously being trained to take on new challenging leadership roles within the organization and fill senior management positions.

TRAINING OPPORTUNITIES

The process of leadership identification and development at Grameenphone begins during the annual appraisal dialogue. Different types of leadership development needs are identified and accordingly relevant development plans are recommended by the supervisors. Some of the leadership development plans include: training, coaching, new tasks/project work, job rotation, secondment in other Telenor operations abroad and others.

Grameenphone has separate agreements with the Stockholm School of Economics in Sweden to provide "Core Leadership Training" to senior managers, the Singapore Institute of Management for providing training on "Leadership coaching", the Hyderabad-based Indian School of Business for providing training on "Strategic leadership" and the British Council for providing "Management development" training to Grameenphone employees. In addition, Grameenphone provides educational grants encouraging employees to go for higher education.

LEADERSHIP DEVELOPMENT

44

LEADERSHIP DEVELOPMENT

47

LEADERSHIP EXPECTATIONS

Grameenphone has defined its leadership expectations based on five intrinsic values of personal and professional conduct. The leadership expectations from the employees are specifically defined in the following manner:

��Grameenphone has communicated its leadership expectations to all employees in leadership roles throughout the company. Grameenphone leaders are expected to guide their teams by example and conduct themselves extremely professionally.

As the company grows so does the need for competent leadership and Grameenphone is well prepared to meet new leadership challenges head-on, with the help of its dedicated group of professional leaders.

Integrity

Operational Excellence

Passion for Business

Change & Constant Renewal

Empowering people

LEADERSHIP DEVELOPMENT

46

For the frontline employees, Leadership Skills Courses are offered, where the aim is to create appreciation for different leadership approaches. Mid-level managers are recommended Effective Leadership Course where different leadership styles and approaches are shared. Moreover, programs like communication skills, teamwork, teambuilding, and problem solving and decision-making courses are there to complement basic leadership courses.

For the current and upcoming leaders of Grameenphone, "Telenor CORE Leadership Training" is offered every year. This program is designed to help leaders fulfill Grameenphone leadership expectations by increasing skills in practical leadership and their motivation to lead. In other words, this training offers the leaders with the opportunity to become confident and competent in dealing with common leadership challenges; and to be familiar with and have tested a set of good leadership practices.

Grameenphone values its local talents and continuously invests on them to develop good leaders with the expectation that they will be taking on bigger and challenging responsibilities within the company.

LEADERSHIP DEVELOPMENT

47

LEADERSHIP EXPECTATIONS

Grameenphone has defined its leadership expectations based on five intrinsic values of personal and professional conduct. The leadership expectations from the employees are specifically defined in the following manner:

��Grameenphone has communicated its leadership expectations to all employees in leadership roles throughout the company. Grameenphone leaders are expected to guide their teams by example and conduct themselves extremely professionally.

As the company grows so does the need for competent leadership and Grameenphone is well prepared to meet new leadership challenges head-on, with the help of its dedicated group of professional leaders.

Integrity

Operational Excellence

Passion for Business

Change & Constant Renewal

Empowering people

LEADERSHIP DEVELOPMENT

46

For the frontline employees, Leadership Skills Courses are offered, where the aim is to create appreciation for different leadership approaches. Mid-level managers are recommended Effective Leadership Course where different leadership styles and approaches are shared. Moreover, programs like communication skills, teamwork, teambuilding, and problem solving and decision-making courses are there to complement basic leadership courses.

For the current and upcoming leaders of Grameenphone, "Telenor CORE Leadership Training" is offered every year. This program is designed to help leaders fulfill Grameenphone leadership expectations by increasing skills in practical leadership and their motivation to lead. In other words, this training offers the leaders with the opportunity to become confident and competent in dealing with common leadership challenges; and to be familiar with and have tested a set of good leadership practices.

Grameenphone values its local talents and continuously invests on them to develop good leaders with the expectation that they will be taking on bigger and challenging responsibilities within the company.

LEADERSHIP DEVELOPMENT

49

Being a socially responsible corporate citizen of Bangladesh, Grameenphone has launched a number of major CSR initiatives in the health sector with special focus on making health services available to the economically disadvantaged segments of the population.

As Grameenphone intends to contribute towards achieving the development targets of Bangladesh, its core focus in terms of social investments is geared towards the bottom 50% of the socio-economic segment. When it comes to being involved in the community, the company believes that sustainable development can only be achieved through long-term economic growth.

In project selection, concentration is given on the uniqueness of the issue and its relevance to the Poverty Reduction Strategy Program (PRSP) and Millennium Development Goals (MDGs) of the country, its sustainability and measurability aspects, as well as possibility to employ our expertise in ensuring the desired project outcomes.

Even though Grameenphone wants to contribute towards the sustainable development of Bangladesh, it acknowledges that it does not have expertise in the development field. Hence, it is crucial to partner with appropriate development actors in undertaking initiatives to ensure better and effective implementation of the projects. To maintain consistency in partner selection and to ensure quality in project outcomes, a set of selection criteria for partnership have also been defined.

To drive this forward, Grameenphone adopted a comprehensive CSR Strategy to guide its initiatives. All initiatives that have been undertaken were evaluated according to the directions set in the CSR strategy, to assure that they respond to real needs and stakeholder expectations.

To that end Grameenphone has launched three major social upliftment initiatives, through partnerships with the leading development actors in their respective fields, to promote safe motherhood and infant care, provide free treatment for cancer patients and create awareness on HIV/AIDS in the country.

Global recognition for HealthLine Service

Since its inception in 1997, Grameenphone has been involved in many important community projects that have culminated into greater good for the society - harmonizing business with social development.

The company's CSR initiatives have been in line with either the development or enhancement of a social service for the community, or through 'CSR in Business' for the promotion of a community service doubled with the potential to create employment and empowerment opportunities, particularly in rural areas. One such CSR in Business initiative received international recognition recently.

MAJOR INITIATIVES IN THE HEALTH SECTOR

48

CORPORATE SOCIAL RESPONSIBILITY

MAJOR INITIATIVES IN THE HEALTH SECTOR

49

Being a socially responsible corporate citizen of Bangladesh, Grameenphone has launched a number of major CSR initiatives in the health sector with special focus on making health services available to the economically disadvantaged segments of the population.

As Grameenphone intends to contribute towards achieving the development targets of Bangladesh, its core focus in terms of social investments is geared towards the bottom 50% of the socio-economic segment. When it comes to being involved in the community, the company believes that sustainable development can only be achieved through long-term economic growth.

In project selection, concentration is given on the uniqueness of the issue and its relevance to the Poverty Reduction Strategy Program (PRSP) and Millennium Development Goals (MDGs) of the country, its sustainability and measurability aspects, as well as possibility to employ our expertise in ensuring the desired project outcomes.

Even though Grameenphone wants to contribute towards the sustainable development of Bangladesh, it acknowledges that it does not have expertise in the development field. Hence, it is crucial to partner with appropriate development actors in undertaking initiatives to ensure better and effective implementation of the projects. To maintain consistency in partner selection and to ensure quality in project outcomes, a set of selection criteria for partnership have also been defined.

To drive this forward, Grameenphone adopted a comprehensive CSR Strategy to guide its initiatives. All initiatives that have been undertaken were evaluated according to the directions set in the CSR strategy, to assure that they respond to real needs and stakeholder expectations.

To that end Grameenphone has launched three major social upliftment initiatives, through partnerships with the leading development actors in their respective fields, to promote safe motherhood and infant care, provide free treatment for cancer patients and create awareness on HIV/AIDS in the country.

Global recognition for HealthLine Service

Since its inception in 1997, Grameenphone has been involved in many important community projects that have culminated into greater good for the society - harmonizing business with social development.

The company's CSR initiatives have been in line with either the development or enhancement of a social service for the community, or through 'CSR in Business' for the promotion of a community service doubled with the potential to create employment and empowerment opportunities, particularly in rural areas. One such CSR in Business initiative received international recognition recently.

MAJOR INITIATIVES IN THE HEALTH SECTOR

48

CORPORATE SOCIAL RESPONSIBILITY

MAJOR INITIATIVES IN THE HEALTH SECTOR

The HealthLine Service, a community service initiative launched jointly by Grameenphone and the Telemedicine Reference Center Limited, in November 2006, has been internationally recognized and awarded the GSMA Global Mobile Award in the category of the "Best use of Mobile for Social and Economic Development" at the 3GSM World Congress in Barcelona in February 2007.

The HealthLine Service is a Medical Call Center manned by licensed physicians that allows Grameenphone subscribers an opportunity to seek health-related advice or consultation through an interactive teleconference. The HealthLine Call Center is open 24-hours a day and 7-days a week.

In a country where there is only one doctor for every 4000 people, this service can help to expand primary health care service and information. Some of the services initially available under this program include: Information on Doctor and Medical Facilities; Information on Drug or Pharmacy; Information on Laboratory Test Report (interpretation); Medical Advice/Consultation from Doctor (for registered subscribers); and, Help and advice during

50

Safe Motherhood and Infant Care Program

Grameenphone entered into a partnership with the NGO Service Delivery Program (NSDP) of USAID to support the national "Safe Motherhood and Infant Care" program to provide healthcare services to the under-privileged segment of the population, in order to ensure meeting the Millennium Development Goals set for Bangladesh.

Grameenphone will provide all necessary assistance to NSDP to facilitate free comprehensive primary healthcare services for safe motherhood and infant care. Under this project, free services will be given to all poor pregnant mothers and infants in 61 districts of Bangladesh, with special focus on the hard-to-reach areas, particularly in the coastal areas.

Reducing maternal and infant mortality rates are two of the eight focus areas identified in the 'Millennium Development Goals' for Bangladesh. Through this nationwide initiative of Safe Motherhood and Infant Care Project, Grameenphone hopes to aide in reaching these MDG targets.

Ahsania Mission Cancer & General Hospital

Grameenphone also entered into a partnership with the Dhaka Ahsania Mission to benefit the development of the Dhaka Ahsania Mission Cancer & General Hospital.

Grameenphone will sponsor the complete development and upkeep of five wards and an Operation Theater (OT) at the under-construction Dhaka Ahsania Mission Cancer & General Hospital.

One-third of the wards sponsored by Grameenphone will be reserved for more economically disadvantaged patients who will receive free admission and full treatment; the rest of the disadvantaged patients screened will receive treatment subsidized by Grameenphone.

MAJOR INITIATIVES IN THE HEALTH SECTOR

51

Medical Emergency. The shareholders of Grameenphone believe that "Good development is good business", and since Grameenphone's inception the company has always demonstrated through various sponsorships and events that Corporate Social Responsibility (CSR) is an integral function of the company.

A late 2005 survey on the CSR activities of different companies, conducted by 'Ideas & Insights', an independent organization, Grameenphone was recognized among the most socially responsible companies in the country.

Following are the other Community Service initiatives taken up by Grameenphone:

Village Phone Program

The Village Phone Program, which was started on the same day commercial operations were launched in 1997, provides a good income-earning opportunity to more than 280,000 mostly women Village Phone operators living in rural areas. The Village Phone Program is a unique initiative to provide Universal Access to telecommunications service in

UNAIDS partnership

Grameenphone embarked upon a CSR partnership with UNAIDS, a joint venture of the United Nations family, to launch the Asia Pacific Leadership Campaign on HIV and AIDS in Bangladesh, to address issues in the country regarding the global epidemic.

The initiative involves high-level leaders from different sectors of the country, including government, business, media and women, and to engage them in helping to create an enabling environment in support of action on HIV and AIDS, as per the global UN initiatives. A major focus of the initiative is to feature these leaders in the media as high profile advocates for the necessary policy reforms.

Grameenphone will work jointly with UNAIDS in their advocacy campaign to create awareness about HIV and AIDS and generate greater empathy for the afflicted. The organizations will also jointly fund all communication campaigns undertaken nationwide for the advocacy initiative.

The six Leaders (UNAIDS Ambassadors) of the campaign in Bangladesh are Advisor for Ministry of Health & Family Welfare, Water Resources and Religious Affairs, Major General (rtd) Dr. A S M Matiur Rahman, Runa Laila and Alamgir (cultural personalities), Shykh Seraj (media personality and agriculture development expert), Bibi Russell (fashion icon and activist), and Kafil H.S. Muyeed (Director, New Business Division, Grameenphone Ltd).

MAJOR INITIATIVES IN THE HEALTH SECTOR

The HealthLine Service, a community service initiative launched jointly by Grameenphone and the Telemedicine Reference Center Limited, in November 2006, has been internationally recognized and awarded the GSMA Global Mobile Award in the category of the "Best use of Mobile for Social and Economic Development" at the 3GSM World Congress in Barcelona in February 2007.

The HealthLine Service is a Medical Call Center manned by licensed physicians that allows Grameenphone subscribers an opportunity to seek health-related advice or consultation through an interactive teleconference. The HealthLine Call Center is open 24-hours a day and 7-days a week.

In a country where there is only one doctor for every 4000 people, this service can help to expand primary health care service and information. Some of the services initially available under this program include: Information on Doctor and Medical Facilities; Information on Drug or Pharmacy; Information on Laboratory Test Report (interpretation); Medical Advice/Consultation from Doctor (for registered subscribers); and, Help and advice during

50

Safe Motherhood and Infant Care Program

Grameenphone entered into a partnership with the NGO Service Delivery Program (NSDP) of USAID to support the national "Safe Motherhood and Infant Care" program to provide healthcare services to the under-privileged segment of the population, in order to ensure meeting the Millennium Development Goals set for Bangladesh.

Grameenphone will provide all necessary assistance to NSDP to facilitate free comprehensive primary healthcare services for safe motherhood and infant care. Under this project, free services will be given to all poor pregnant mothers and infants in 61 districts of Bangladesh, with special focus on the hard-to-reach areas, particularly in the coastal areas.

Reducing maternal and infant mortality rates are two of the eight focus areas identified in the 'Millennium Development Goals' for Bangladesh. Through this nationwide initiative of Safe Motherhood and Infant Care Project, Grameenphone hopes to aide in reaching these MDG targets.

Ahsania Mission Cancer & General Hospital

Grameenphone also entered into a partnership with the Dhaka Ahsania Mission to benefit the development of the Dhaka Ahsania Mission Cancer & General Hospital.

Grameenphone will sponsor the complete development and upkeep of five wards and an Operation Theater (OT) at the under-construction Dhaka Ahsania Mission Cancer & General Hospital.

One-third of the wards sponsored by Grameenphone will be reserved for more economically disadvantaged patients who will receive free admission and full treatment; the rest of the disadvantaged patients screened will receive treatment subsidized by Grameenphone.

MAJOR INITIATIVES IN THE HEALTH SECTOR

51

Medical Emergency. The shareholders of Grameenphone believe that "Good development is good business", and since Grameenphone's inception the company has always demonstrated through various sponsorships and events that Corporate Social Responsibility (CSR) is an integral function of the company.

A late 2005 survey on the CSR activities of different companies, conducted by 'Ideas & Insights', an independent organization, Grameenphone was recognized among the most socially responsible companies in the country.

Following are the other Community Service initiatives taken up by Grameenphone:

Village Phone Program

The Village Phone Program, which was started on the same day commercial operations were launched in 1997, provides a good income-earning opportunity to more than 280,000 mostly women Village Phone operators living in rural areas. The Village Phone Program is a unique initiative to provide Universal Access to telecommunications service in

UNAIDS partnership

Grameenphone embarked upon a CSR partnership with UNAIDS, a joint venture of the United Nations family, to launch the Asia Pacific Leadership Campaign on HIV and AIDS in Bangladesh, to address issues in the country regarding the global epidemic.

The initiative involves high-level leaders from different sectors of the country, including government, business, media and women, and to engage them in helping to create an enabling environment in support of action on HIV and AIDS, as per the global UN initiatives. A major focus of the initiative is to feature these leaders in the media as high profile advocates for the necessary policy reforms.

Grameenphone will work jointly with UNAIDS in their advocacy campaign to create awareness about HIV and AIDS and generate greater empathy for the afflicted. The organizations will also jointly fund all communication campaigns undertaken nationwide for the advocacy initiative.

The six Leaders (UNAIDS Ambassadors) of the campaign in Bangladesh are Advisor for Ministry of Health & Family Welfare, Water Resources and Religious Affairs, Major General (rtd) Dr. A S M Matiur Rahman, Runa Laila and Alamgir (cultural personalities), Shykh Seraj (media personality and agriculture development expert), Bibi Russell (fashion icon and activist), and Kafil H.S. Muyeed (Director, New Business Division, Grameenphone Ltd).

MAJOR INITIATIVES IN THE HEALTH SECTOR

52

As a responsible corporate citizen of the country, Grameenphone has always undertaken and sponsored projects that generate greater good for the society. In this advocacy initiative too, Grameenphone will provide necessary support to execute the awareness and advocacy campaign.

MAJOR INITIATIVES IN THE HEALTH SECTOR

remote, rural areas. Administered by Grameen Telecom Corporation in cooperation with Grameen Bank, it enables rural people who normally cannot afford to own a telephone to avail the service while providing the VP operators an opportunity to earn a living.

The Village Phone initiative was given the "GSM in the Community" award at the GSM World Congress held in Cannes, France in February 2000. The Village Phones have proven their immense potential in boosting income of poor households in rural areas, promoting health care, development of agri-business and in the social empowerment of rural women.

Community Information Centers (CIC)

Having a nationwide EDGE-enabled network, Grameenphone initiated the Community Information Center (CIC) project in 2006. The CICs are Internet kiosks, set up through independent entrepreneurs across rural Bangladesh. Currently there are over 550 CICs across the country. These Centers have narrowed the gaping digital divide between the urban and

53

rural populace, giving over 20 million people access to the Internet and other information-based services for the first time. Set up with technical assistance from the GSM Association, the Community Information Centers are equipped with the minimum of a computer, a printer, a scanner, a web-cam and an EDGE-enabled modem to access the Internet. Set up on shared premises in select rural markets around the country, CICs are designed to be run independently as small businesses by local entrepreneurs.

Presently access to passport forms, birth and death certificates forms and other related information are available through the Government websites. Market prices of agricultural produce are also available through the website of the Agricultural Extension Department.

BillPay Service

The BillPay service, introduced in Chittagong in 2006, enables Power Development Board (PDB) customers in Chittagong to pay their bills electronically at any Grameenphone authorized BillPay center. Its service is reliable, quick and convenient, ensuring end-to-end transparency and ultimate convenience for the electricity consumers.

This was the first time a mobile phone operator launched a service with "universal access" for all citizens, i.e. equal service to anybody with or without a mobile phone from any operator. The solution removes problems associated with standing in long queues in banks, traveling, limited payment hours and various post-payment hassles.

It is expected that over the course of the next few years the BillPay service will be expanded to cover other cities and include more utility services under its umbrella.

In these ways, Grameenphone has fostered development and growth in Bangladesh. With a large network in place across the country, and the acumen and drive to utilize that network for services above and beyond its core business focus, Grameenphone is echoing the shareholders' belief that good development is indeed good business.

MAJOR INITIATIVES IN THE HEALTH SECTOR

52

As a responsible corporate citizen of the country, Grameenphone has always undertaken and sponsored projects that generate greater good for the society. In this advocacy initiative too, Grameenphone will provide necessary support to execute the awareness and advocacy campaign.

MAJOR INITIATIVES IN THE HEALTH SECTOR

remote, rural areas. Administered by Grameen Telecom Corporation in cooperation with Grameen Bank, it enables rural people who normally cannot afford to own a telephone to avail the service while providing the VP operators an opportunity to earn a living.

The Village Phone initiative was given the "GSM in the Community" award at the GSM World Congress held in Cannes, France in February 2000. The Village Phones have proven their immense potential in boosting income of poor households in rural areas, promoting health care, development of agri-business and in the social empowerment of rural women.

Community Information Centers (CIC)

Having a nationwide EDGE-enabled network, Grameenphone initiated the Community Information Center (CIC) project in 2006. The CICs are Internet kiosks, set up through independent entrepreneurs across rural Bangladesh. Currently there are over 550 CICs across the country. These Centers have narrowed the gaping digital divide between the urban and

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rural populace, giving over 20 million people access to the Internet and other information-based services for the first time. Set up with technical assistance from the GSM Association, the Community Information Centers are equipped with the minimum of a computer, a printer, a scanner, a web-cam and an EDGE-enabled modem to access the Internet. Set up on shared premises in select rural markets around the country, CICs are designed to be run independently as small businesses by local entrepreneurs.

Presently access to passport forms, birth and death certificates forms and other related information are available through the Government websites. Market prices of agricultural produce are also available through the website of the Agricultural Extension Department.

BillPay Service

The BillPay service, introduced in Chittagong in 2006, enables Power Development Board (PDB) customers in Chittagong to pay their bills electronically at any Grameenphone authorized BillPay center. Its service is reliable, quick and convenient, ensuring end-to-end transparency and ultimate convenience for the electricity consumers.

This was the first time a mobile phone operator launched a service with "universal access" for all citizens, i.e. equal service to anybody with or without a mobile phone from any operator. The solution removes problems associated with standing in long queues in banks, traveling, limited payment hours and various post-payment hassles.

It is expected that over the course of the next few years the BillPay service will be expanded to cover other cities and include more utility services under its umbrella.

In these ways, Grameenphone has fostered development and growth in Bangladesh. With a large network in place across the country, and the acumen and drive to utilize that network for services above and beyond its core business focus, Grameenphone is echoing the shareholders' belief that good development is indeed good business.

MAJOR INITIATIVES IN THE HEALTH SECTOR

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Ensuring a quality network along with providing coverage around the country has always been a priority focus area of Grameenphone.

Extensive network expansion measures were implemented to keep up with the rapid growth of subscribers during last year. The company made a fresh investment of over BDT 21 billion in 2006, primarily to increase capacity and expand coverage of the network.

An aggressive roll-out program was implemented by installing new network elements with emphasis on maintaining quality service. A total of 2651 new base stations were added to the network during the year while the entire network was made EDGE/GPRS enabled.

At the same time, a number of steps were taken to identify the problem spots in the network in order to constantly improve the quality. Immediate necessary actions were taken to improve the capacity or coverage problems by initiating new sites. Feedback received from different customer touch points were also analyzed and investigated, resulting in further improving of the network quality.

Special efforts were taken up to ensure network quality in urban areas. In Dhaka and other major cities In-building Solutions and Microcells have been deployed to provide improved coverage in high-rise buildings and busy street intersections.

More than 100 Indoor base stations have so far been installed to serve important high-rise buildings in the major cities. In addition, 39 Microcells were deployed to improve network coverage and quality in crowded street junctions.

Improving coverage in national and regional highways was also one of the major focus areas in 2006. Innovative solutions like optimized coverage enhancement techniques have helped Grameenphone to improve the coverage situation in weaker coverage spots along major highways. Grameenphone subscribers today can enjoy seamless service along the major national highways. This is of course giving a great deal of comfort to subscribers while they commute along the national highways. Moreover, the Grameenphone network already has good coverage along most of the existing railway tracks around the country.

Quality is an ongoing activity with plenty of improvement opportunities; Grameenphone has dedicated teams all around the country to conduct regular extensive quality checks on the ground and take immediate measures to improve the quality. Customer feedbacks are given high importance and actions are taken to resolve the identified problems. Grameenphone is well-positioned with its international standard expertise, tools and processes to ensure premium network quality for its valued subscribers.

ENSURING NETWORK QUALITY

54

EXPANSION OF NETWORK CAPACITY AND COVERAGE

ENSURING NETWORK QUALITY

55

Ensuring a quality network along with providing coverage around the country has always been a priority focus area of Grameenphone.

Extensive network expansion measures were implemented to keep up with the rapid growth of subscribers during last year. The company made a fresh investment of over BDT 21 billion in 2006, primarily to increase capacity and expand coverage of the network.

An aggressive roll-out program was implemented by installing new network elements with emphasis on maintaining quality service. A total of 2651 new base stations were added to the network during the year while the entire network was made EDGE/GPRS enabled.

At the same time, a number of steps were taken to identify the problem spots in the network in order to constantly improve the quality. Immediate necessary actions were taken to improve the capacity or coverage problems by initiating new sites. Feedback received from different customer touch points were also analyzed and investigated, resulting in further improving of the network quality.

Special efforts were taken up to ensure network quality in urban areas. In Dhaka and other major cities In-building Solutions and Microcells have been deployed to provide improved coverage in high-rise buildings and busy street intersections.

More than 100 Indoor base stations have so far been installed to serve important high-rise buildings in the major cities. In addition, 39 Microcells were deployed to improve network coverage and quality in crowded street junctions.

Improving coverage in national and regional highways was also one of the major focus areas in 2006. Innovative solutions like optimized coverage enhancement techniques have helped Grameenphone to improve the coverage situation in weaker coverage spots along major highways. Grameenphone subscribers today can enjoy seamless service along the major national highways. This is of course giving a great deal of comfort to subscribers while they commute along the national highways. Moreover, the Grameenphone network already has good coverage along most of the existing railway tracks around the country.

Quality is an ongoing activity with plenty of improvement opportunities; Grameenphone has dedicated teams all around the country to conduct regular extensive quality checks on the ground and take immediate measures to improve the quality. Customer feedbacks are given high importance and actions are taken to resolve the identified problems. Grameenphone is well-positioned with its international standard expertise, tools and processes to ensure premium network quality for its valued subscribers.

ENSURING NETWORK QUALITY

54

EXPANSION OF NETWORK CAPACITY AND COVERAGE

ENSURING NETWORK QUALITY

57

Grameenphone is committed to provide quality customer service to its valued subscribers. The Commercial Division initiated a number of steps in 2006 to make customer service more easily accessible around the country.

With the slogan "Let's not expect the customers to travel to get the service rather let service travel to the customers," the division aims to provide proper and on-time delivery of services.

The 'Grameenphone Service Month' was observed in March 2006 with the target to provide improved customer experiences. During this month, the existing customer service activities were further strengthened while some new initiatives were taken. With the motto 'dial 121 and get your problem solved,' a single hotline number was promoted to all Grameenphone customers making it easier for them to access the Grameenphone Call Center, which is open 24 hours a day throughout the year.

A unique initiative called Grameenphone Grahak Katha to involve the customer community throughout the country was started in 2006. Through these town hall-type meetings, customers can exchange their views and opinions about the Company with Grameenphone officials. It is an initiative to build a bridge between customers and Grameenphone. This motivating and enabling relationship brings a continuous feedback, ideas, responses which recognize our customers for staying with us.

Another innovative service called 'Grahak Katha Online' was launched to cater to Grameenphone subscribers through the Internet. This service is open 24 hours a day.

To interact and inform our valued subscribers, a new unit 'Travelers to Customers' was formed to make proactive outbound visits to customers' premises. To provide a positive customer experience and communicate effectively with subscribers, an Outbound Calling Center has been set up, which proactively creates awareness and informs the subscribers about various services that Grameenphone is currently offering.

With the concept of providing all sales and after-sales services under a single roof, the flagship Grameenphone Centers (GPCs) were also launched in 2006. A total of 80 GPCs have been opened around the country. Customers can visit the GPCs for any sales or after-sales service on all working days.

More than 600 Grameenphone Customer Service desks came into operation in 2006 in order to make after-sales service more easily available around the country. Located at almost every Upazilla (sub-district), the Grameenphone Customer Service desks have reduced travel time for any after-sales service from as much as eight hours to a maximum of one hour. In addition, an SMS-based service was introduced to enable customers to locate the addresses of the nearest Grameenphone Customer Service desks and the Grameenphone Centers.

EASILY ACCESSIBLE CUSTOMER SERVICE

56

EASILY ACCESSIBLECUSTOMER SERVICE

57

Grameenphone is committed to provide quality customer service to its valued subscribers. The Commercial Division initiated a number of steps in 2006 to make customer service more easily accessible around the country.

With the slogan "Let's not expect the customers to travel to get the service rather let service travel to the customers," the division aims to provide proper and on-time delivery of services.

The 'Grameenphone Service Month' was observed in March 2006 with the target to provide improved customer experiences. During this month, the existing customer service activities were further strengthened while some new initiatives were taken. With the motto 'dial 121 and get your problem solved,' a single hotline number was promoted to all Grameenphone customers making it easier for them to access the Grameenphone Call Center, which is open 24 hours a day throughout the year.

A unique initiative called Grameenphone Grahak Katha to involve the customer community throughout the country was started in 2006. Through these town hall-type meetings, customers can exchange their views and opinions about the Company with Grameenphone officials. It is an initiative to build a bridge between customers and Grameenphone. This motivating and enabling relationship brings a continuous feedback, ideas, responses which recognize our customers for staying with us.

Another innovative service called 'Grahak Katha Online' was launched to cater to Grameenphone subscribers through the Internet. This service is open 24 hours a day.

To interact and inform our valued subscribers, a new unit 'Travelers to Customers' was formed to make proactive outbound visits to customers' premises. To provide a positive customer experience and communicate effectively with subscribers, an Outbound Calling Center has been set up, which proactively creates awareness and informs the subscribers about various services that Grameenphone is currently offering.

With the concept of providing all sales and after-sales services under a single roof, the flagship Grameenphone Centers (GPCs) were also launched in 2006. A total of 80 GPCs have been opened around the country. Customers can visit the GPCs for any sales or after-sales service on all working days.

More than 600 Grameenphone Customer Service desks came into operation in 2006 in order to make after-sales service more easily available around the country. Located at almost every Upazilla (sub-district), the Grameenphone Customer Service desks have reduced travel time for any after-sales service from as much as eight hours to a maximum of one hour. In addition, an SMS-based service was introduced to enable customers to locate the addresses of the nearest Grameenphone Customer Service desks and the Grameenphone Centers.

EASILY ACCESSIBLE CUSTOMER SERVICE

56

EASILY ACCESSIBLECUSTOMER SERVICE