Term Paper of Economics Course Code-MKT-507

Submitted to : Md. Abdullah Al Jamil Lecturer Department of Marketing Comilla University

Submitted by Name & Particular

: Roll Number

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SYED KHALID BIN NAZRUL DELOWAR HOSSAIN Mohammad Shaparan Alamgir Zaman Tithi Chakra Borty Abu Hanif Md. Shohel Department of Marketing EMBA 2nd semester, Comilla University.

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A Study on Telecommunication Industry Policy, procedure and Output

Table of Contents

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Particular INTRODUCTION
COMPANY OVER FLOW

POLICY OF INDUSTRY PROCEDURE OF THE INDUSTRY OUTPUT OF THE INDUSTRY FINDINGS(DRAWBACK/DETAILS) RECOMANDATIONS CONCLUSION REFERENCE

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INTRODUCTION Communications is now the business phenomena in an Economic and Social system all over the world. Digital communications is the part & parcel of modern business. Communications over the phone is backed by enormous telecom industries. Telecom industries in Bangladesh are very first and rapidly growing to meet the 21 st centuries goal. The Bangladesh telecommunications market is severely underserved. The extremely high poorest fixed lines network, provide a strong indicator of the potential demand for telecommunications, especially in the rural areas. When comparing Bangladeshi's level of income and its tele-density with other countries, it is clear that the country's telecommunications services have been neglected. Furthermore, out of the 500,000 fixed phone lines (350,000 considered operational) that are installed, 80% of the lines are in the country's two largest cities, Dhaka and Chittagong. In fact, two thirds of all fixed lines in Bangladesh are in Dhaka, where less than a tenth of the population lives. population density, accompanied by the fact that Bangladesh has the one of the world's in a country such for poor countries and rural areas, it is cheaper to build mobile infrastructure than fixed line communications. In terms of topography, Bangladesh is a flat country where 90% of the country is dominated by alluvial river plains, which does not raise more than 10 meters above sea level. The highest peak is Keokradang (1230m), 80 km southwest of Chittagong in the Hill Tracts. The flatness facilitates the construction of base stations and improves its coverage area. Besides reviewing the macro indicators to identify potential demand, consumer demand for cellular services has also been studied.

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To understand the potential demand for telecommunications services in Bangladesh, let us look at some of the key macro-indicators of the country. With a population of nearly 150 million people living in an area slightly larger than the United Kingdom, Bangladesh is the most densely populated country in the world, with roughly 980 people per square kilometer. More than 80% of its population lives in the rural areas, where two thirds of the population is engaged in agricultural activities. Its standing in the Human Development Index (HDI) remains almost unchanged at 132 nd position, according to the United Nations Development Report released last year. In a country such as Bangladesh where the state-owned operator, the Bangladesh Telegraph and Telephone Board (BTTB), dominates the landline telephone system and provides poor services and infrastructure, cellular phones tend to be substitute for landlines. The mobile phone operations decisions were never being influenced by any International agreement but held up as an independent entity for making marketto grow. Self learning and liberalizing the mobile phone sector shaped up in asequential strategy for Bangladesh. From 1993 till 1996 the mobile phoneservices were monopolized by one company; Pacific BangladeshTelecom Ltd.which didnt let the customer benefitted, however, with the commissioning of mobile phone service by Grameen Phone Limited and Aktel in 1997, the situationstarted to improve in terms of price reduction and quality. The later period could be said Grameen phone Ltd. golden period, but the arrival of Banglalink in 2005. The mobile phone market brought immense price competition. The intensity of competition came as a blessing for the customers. This change intrend forced every player to adjust their price policy and quality.

* A case Study About Citycell Citycell (Pacific Bangladesh Telecom Limited) is Bangladeshs pioneering mobile communications company and the only CDMA mobile operator in the country. Citycell is a customer-driven organization whose mission is to deliver the latest in advanced telecommunication services to Bangladesh. The company offers a full array of fixed and mobile services for consumers and businesses that are focused on the unique needs of the Bangladeshi community. Citycells growth strategy is to integrate superior customer service, highest standard technology and choice of packages at affordable rates.

The company operates a 24-hour call centre with well trained operators to respond to customer queries. Citycells customer services are open 7 days a week to ensure customers can access Citycell at any convenient time. Citycell is focused on innovation and creating new ways for customers to stay in touch and to do business. Citycell is offering a wide range of competitive pre-paid and post-paid mobile packages as well as Value Added Services such as SMS and information based services. Pacific Bangladesh Telecom Ltd.(PBTL) is the first mobile phone service provider in the Indian subcontinent and launched its mobile operations in 1993 using the name Citycell. The mobile operator is a member of the Pacific Group, one of the largest privately-owned business groups in Bangladesh. It is one of the five mobile service operators in the country and operates a nation-wide Code Division Multiple Access (CDMA) system. Most recently Singapore Telecom Limited (SingTel), South East Asias largest mobile phone company, entered Bangladeshs mobile market. Expanding further its reach in South Asia as per its overseas expansion strategy, SingTel invested US$118 million for a 45 percent stake in PBTL (Pacific Bangladesh Telecom Ltd), more popularly known as Citycell. As part of the deal, SingTel also has the option to increase its stake in the company to 60 percent foe additional US$65million between April 2007 and June 2007. POLICY
OF THE TELECOMMUNICATION INDUSTRY

HOW CELL PHONES WORK Cellular telephones have revolutionized the communications arena, redefining how we perceive voice communications. Traditionally, cellular phones remained out of the hands of most consumers due to their high cost. As a result, cell phone carriers have invested time and resources into finding ways to give the systems higher capacity and thus lower cost. Cell systems are benefiting from this research and starting to develop into large-scale consumer products. Today, cellular phones are truly consumer electronics devices with over 580 million subscribers. The Nokia Bowl and Qualcomm Stadium are further evidence of the idea that cell phones are consumer electronics devices. Since cell phones have ceased to be an exclusive status symbol of high-powered lawyers and are now in the hands of millions of consumers, they are now incredibly cost sensitive. Specifically, it is not the cost of the device that counts,

but the cost of using the device. As a result, the cellular phone infrastructure is being optimized to allow calls to be placed as inexpensively and reliably as possible. Today, more than ever, cellular companies are looking for ways to bring down the call cost to attain even higher market penetration, especially in metropolitan areas. It is common knowledge that Cellular Phones are wireless phones; however, many are confused about how a cell phone actually works. Essentially, cell phones use high-frequency radio signals to communicate with "cell towers" located throughout the calling area. Cell phones communicate in the frequency range of 806-890 MHz and 1850-1990 MHz. When the user wants to make a call, the cell phone sends a message to the tower, asking to be connected to a given telephone number. If the tower has sufficient resources to grant the request, a device called a "switch" patches the cell phones signal throughout to a channel on the "public switched telephone network" (otherwise known as the PSTN). This call now takes up a wireless channel as well as a PSTN channel that will be held open until the call is completed. The figure on the right side illustrates this process. This channel cannot be used for anyone elses call until the cell phone call is discontinued. Given this simple description of how cell phones work, we will add technical details about various facets of cell phone systems throughout the remainder of this section. As the name implies, cell phone systems are made up of many small "cells." Each cell in a cell phone system represents the area served by one cell phone tower. The concept of cells is the key behind the success of cell phones because by spacing many cells fairly close to each other, the cell phones may broadcast at very low power levels (typically 200mw1W, depending on system). Since the cell phones may broadcast at low power levels, they use small transmitters and small batteries, and thus are able to fit in a shirt pocket, unlike amateur radios which can occupy a tabletop. Cells are typically spaced around 1-2 miles apart but can be spaced up to 20 miles apart in rural areas. In loaded areas or areas with many obstacles (such as tall buildings), the cell sites may be spaced closer together. Some technologies, like PCS (Personal communication System), require closer cell spacing due to their higher frequency and lower power operation. Additionally, buildings interfere with cell signals coming from outside, so many buildings have their own "microcell." The Kingdome and New York subway are two examples of where microcells are used. Microcells may also be used to increase overall capacity within a heavily populated area such as a citys core downtown area. In fact, homes may have "picocells" connected to the homes PSTN connection to allow the cell phone to be used as a cordless phone. An example of typical microcell and picocell environments is pictured in the following figure.

With thousands of cellular phone calls going on at any given time within a city, it certainly would not work for everyone to talk on the same channel at once (as in CB and short-wave radios). Therefore, several different techniques were developed by cell phone manufacturers to split up the available bandwidth into many channels each capable of supporting one conversation. The following sections will discuss each technology and how it works. FDMA: FDMA stands for "Frequency Division Multiple Access". Though it could be used for digital systems, is exclusively used on all analog cellular systems. Essentially, FDMA splits the allocated spectrum into many channels. In current analog cell systems, each channel is 30 kHz. When a FDMA cell phone establishes a call, it reserves the frequency channel for the entire duration of the call. The voice data is modulated into this channels frequency band (using frequency modulation) and sent over the airwaves. At the receiver, the information is recovered using a band-pass filter. The phone uses a common digital control channel to acquire channels. FDMA systems are the least efficient cellular system since each analog channel can only be used by one user at a time. Not only are these channels larger than necessary given modern digital voice compression, but they are also wasted whenever there is silence during the cell phone conversation. Analog signals are also especially susceptible to noise and there is no way to filter it out. Given the nature of the signal, analog cell phones must use higher power (between 1 and 3 watts) to get acceptable call quality. Given these shortcomings, it is easy to see why FDMA is being replaced by newer digital techniques. TDMA: TDMA stands for "Time Division Multiple Access." TDMA builds on FDMA by dividing conversations by frequency and time. Since digital compression allows voice to be sent at well under 10 kilobits per second (equivalent to 10 kHz), TDMA fits three digital conversations into a FDMA channel (which is 30 kHz) By sampling a persons voice for, say 30 milliseconds, then transmitting it in 10 milliseconds; the system is able to offer 3 timeslots per channel in a round-robin fashion. This technique allows compatibility with FDMA while enabling digital services and easily boosting system capacity by three times. While TDMA is a good digital system, it is still somewhat inefficient since it has no flexibility for varying digital data rates (high quality voice, low quality voice, pager traffic) and has no accommodations for silence in a telephone conversation. In other words, once a call is initiated, the channel/timeslot pair belongs to the phone for the duration of the call. TDMA also requires strict signaling and timeslot synchronization. A digital control channel provides

synchronization functionality as well as adding voice mail and message notification. Due to the digital signal, TDMA phones need only broadcast at 600 miliwatts. CDMA: CDMA stands for "Code Division Multiple Access" and is both the most interesting and the hardest to implement multiplexing method. CDMA has been likened to a party: When everyone talks at once, no one can be understood, however, if everyone speaks a different language, then they can be understood. CDMA systems have no channels, but instead encode each call as a coded sequence across the entire frequency spectrum. Each conversation is modulated, in the digital domain, with a unique code (called a pseudo-noise code) that makes it distinguishable from the other calls in the frequency spectrum. Using a correlation calculation and the code the call was encoded with, the digital audio signal can be extracted from the other signals being broadcast by other phones on the network. From the perspective of one call, upon extracting the signal, everything else appears to be low-level noise. As long as there is sufficient separation between the codes (said to be mutually orthogonal), the noise level will be low enough to recover the digital signal. Each signal is not, in fact, spread across the whole spectrum (12.5 MHz for traditional cellular or 60 MHz in PCS cellular), but is spread across 1.25 MHz "passbands." CDMA systems are the latest technology on the market and are already eclipsing TDMA in terms of cost and call quality. Since CDMA offers far greater capacity and variable data rates depending on the audio activity, many more users can be fit into a given frequency spectrum and higher audio quality can be provide. The current CDMA systems boast at least three times the capacity of TDMA and GSM systems. The fact that CDMA shares frequencies with neighboring cell towers allows for easier installation of extra capacity, since extra capacity can be achieved by simply adding extra cell sites and shrinking power levels of nearby sites. CDMA technology also allows lower cell phone power levels (200 miliwatts) since the modulation techniques expect to deal with noise and are well suited to weaker signals. The downside to CDMA is the complexity of deciphering and extracting the received signals, especially if there are multiple signal paths (reflections) between the phone and the cell tower (called multi path interference). As a result, CDMA phones are twice as expensive as TDMA phones and CDMA cell site equipment is 3-4 times the price of TDMA equivalents. GSM: GSM stands for "Global System for Mobile Communications." GSM is mostly a European system and is largely unused in the US. GSM is interesting in that it uses a modified and far more efficient version of TDMA. GSM keeps the idea of timeslots and

frequency channels, but corrects several major shortcomings. Since the GSM timeslots are smaller than TDMA, they hold less data but allow for data rates starting at 300 bits per second. Thus, a call can use as many timeslots as necessary up to a limit of 13 kilobits per second. When a call is inactive (silence) or may be compressed more, fewer timeslots are used. To facilitate filling in gaps left by unused timeslots, calls do "frequency hopping" in GSM. This means that calls will jump between channels and timeslots to maximize the systems usage. A control channel is used to communicate the frequency hopping and other information between the cell tower and the phone. To compare with the other systems, it should be noted that GSM requires 1 Watt of output power from the phone.

PROCEDURE (FUNCTIONS
OF

OF THE INDUSTRY

DIFFERENT DEPARTMENTS)

UPPER ORGANIZATIONAL HIERARCHY

Chairma n
Vice Chairma n

CEO

Chief Marketing Officer

Chief Commercial Officer

Chief Financial Officer

Chief of Customer Care

Chief Technical Officer

DirectorHR & Admin.

MARKETING DEPARTMENT

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SALES DEPARTMENT

CUSTOMER CARE DEPARTMENT

FINANCE & ACCOUNTS DEPARTMENT

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Marketing Department: Major marketing goal is to capture a significant market segment that will yield maximum revenue by means of passing on directly or indirectly high-end cellular phone service. Many clients provide telecom services to their locality by Tellular or Fixed Wireless package. The rates of this package may be low but this is offset by the high frequency of usage and the strong support claimed to be provided by Citycell.

Market Communication & Branding: This division is responsible for the process of promoting Citycell products and also designs of new packages. This is done after extensive market research and understanding the requirements of each targeted market segment. The chief responsibility of this department is logically, promotion and communication of new products and product ideas to customers both directly through selection of advertising media, then dissemination of information by means of advertisements; and indirectly through dealers by providing them with promotional material. This division is also responsible for public relations, which do not include corporate relations. This is handled, as we have seen, by other departments. The responsibility of this department is immensely important especially in the introduction stage of a package for customers. They also provide help for other departments such as the front office and services marketing in order to promote Citycell packages to both current and new customers. This helps very much in handling cases of dissatisfied customers and also in case of adjusting customers with old packages who have to be

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convinced to upgrade their packages to the new ones on offer. The company subcontracts its promotional materials production to local companies. A regular number of events are held to integrate promotional activities with public relation exercises to enhance the image of Citycell and better promote the packages on offer.

Product Design: This division is responsible for the design of packages and the fixing of tariff rates, which are actually the rates of usage for each package. This department is also responsible for the coordination of market research for the whole company. They will integrate knowledge gleaned from extensive market research into the design of new packages that fulfills the needs of customers. This is done very frequently as the needs of even the most stable of customer segments change and the company has to change the tariff structure of its offered packages accordingly.

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Sales Department: Selling product & services is the primary goal of this department.

Corporate and Direct Sales: This Division is responsible for corporate customer relations. Corporate customers are given high priority in terms of sales and also in terms of after sales service. Of course this is due to the high usage and need for good long term goodwill with such corporate clients. This department however deals mainly with sales to corporate customers and maintenance of relations with both current clients as well as scouting out potential new corporate clients, whereas the after sales service and other issues are dealt with by the customer services operations section of the company. This division also controls selling product to the general customers. This division is also responsible for direct face-to-face inquiry by the general people who every day visit the Head Office.

Channel Management: This division is responsible for channel management has the very important job of setting up marketing channels by which packages are distributed among clients and by which feedback is obtained from customers. This department is responsible for the selection of new dealers and motivating them and current dealers to promote Citycell packages to their customers in their respective areas. This department is also responsible for seeing that there is an excellent support network for each dealer and that they are satisfied with their monetary or otherwise remuneration. Each dealer is a business partner and not a surrogate arm of the company. They are given the marketing tools to act as if they were branches of Citycell in their respective areas. This department is also responsible for checking that each dealer does not cut into the sales of another dealer in a very proximal region. Customer Care Department: This department is responsible for coordinating all customer support activities. Different goals are set for each sub-department according to the organizational aims. Service Delivery: Primary responsibility of this division is to ensure smooth coordination between the activation, servicing and bill-collection activities.

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Front Office & CCP (Customer Care Point): The importance of a good front office can never be over stated. It is the face of the company as seen by the customers, both current and potential. There is a significant amount of coordination carried out with sales and other relevant departments of Marketing in order to smoothly carry out all the functions of the front-office. Within a comparatively middle-sized room in the ground floor all the various activities of the front-office are carried out sales, servicing, billing and customer relations. The latter refers to the handling of the numerous queries from customers in a very positive way. All this must be done to ensure excellent customer relations vital for a serviceoriented company. Account verification/activation: This section is responsible for the coordination across the board of data required to activate or alter a customer account. The other departments deliver customer forms filled up and ready to open a new account. This is then verified and checked here before an account is activated in the customers name. Some of the main reasons behind this are to check against fraud and to check that taxes are paid on sets brought in from abroad. Adjustments: This is the department where I worked. Their primary purpose is to check for uncollected bills and follow-up on default customers. This department also has the responsibility for preparing bills for corporate clients and to clarify any queries and comply with any requests they may have regarding their bills. Workshop: This department may be considered to be actually two departments. The primary workshop where sets are actually repaired si supervised by the Engineering department but the workshop itself is run by the CSR. The other part is receipt and delivery of faulty sets. This is done at the front office.

Finance and Commercial: This department is responsible for coordination of various finance and fundmanagement activities of PBTL. This includes LC and purchase fund management,

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payment of deposit paid by customers, cash flow management, insurance cost management, forecasting and budgeting.

Commercial: a) LC preparation: It is his responsibility to coordinate all preparation for opening an LC to undertake purchase of equipment and sets from abroad b) Purchase: Here the finances for the purchase of sets and equipment are dealt with and correctly disbursed. Fund Management: This division is primarily responsible for arrangement of fund payment and control fund receipt. Employees here write checks for refund of deposits made by customers according to their relevant package. This department also handles the various incoming funds and utilizes them in a manner that provides maximum benefit for the company. This department also handles the insurance cost management as well as projecting future costs. Budgeting: Budgeting is done across the board with forecasting depending on engineerings plans for expansion. Budgeting is done yearly and on a 3 year plan. Engineering: This department is responsible for the setting up and maintenance of the heavy equipment and the major telecom channels required for providing services to customers. This department is divided into 7 divisions. Each is responsible for the assigned (by name) activities or equipment: 1. Switch (activation and deactivation of customer accounts) 2. Central Base station 3. Microwave 4. Radio Frequency 5. Base Transceiver Station 6. Power (power to run equipment and the office) 7. Planning and development: Preparing engineering plans to accomplish long and short-term organizational objectives. Billing and IT:

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This division is responsible for the actual process of preparing the bills for all the customers and the posting of those bills by means of the courier services or by post whichever is applicable at the necessary time to allow for delivery time and payment by customers. This division also checks usage against credit limit. This department has the authority to deactivate lines should a customers usage exceed his allotted or paid credit limit. This department is also responsible for entering the various invoices received in a batch against the various customer accounts.

Accounts: This department is responsible for collecting direct cash or check or charging credit cards from the customers who are paying for the service and equipment. This department is also responsible to maintain the balance of store where sets and equipments are gathered for future purpose and present operation. Collection: Here direct payment, deposit money is collected from the direct and corporate customers, dealers and from other sources Store: This section is responsible to maintain the balance of store where sets and equipments are gathered for future purpose and present operation. Administration and Human Resource: This department is responsible for coordinating across the board administrative activities, the day-to-day maintenance, security, keeping and controlling relations with Government departments and maintenance of protocols. This department is also responsible for the well being of workers and their benefits.

Contract, Legal and Protocol: This division is responsible for the coordination of contractual process (drawing up contracts for individuals and organizations), assuring compliance with regulations and legal bindings, and to coordinate high level occasions with upper management and senior government employees.

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Contract: The personnel in this position are responsible for the appointment and contract of employees and to draw new ones at the end of the probationary period. They are also responsible for canceling contracts due to contrary and unbecoming behavior or other issue of conflict between the company and an employee. They are also responsible for supervising the drawing up of contracts with other organizations for whatever purpose deemed necessary. Legal: Here, the personnel are responsible for ensuring compliance with legal issues and to ascertain beforehand any potential conflict with government regulations. Protocol & Government Relations: The executive here is responsible for the coordination of various activities and occasions involving important personnel the board of directors, senior government employees, etc. Procurement: The Human Resource department is responsible for procuring future employees according. This department is also responsible for maintaining the database of all employees, leaves, attendance, health care and related fields of employees. Purchase and General Administration: He is responsible for the general purchase and support activities that entail buying and storing office materials and supplies. He is responsible for negotiations for real estate and other land factors. He is also responsible for coordination of general maintenance and security activities.

Purchase & Support: This refers to employees in Admin who are responsible for the procurement of support materials, usually office supplies, computers for personnel, etc and the delivery and storage of these materials. This is a very important aspect of admin because the needs of employees are very much varied and budget is very tight. Thus a great deal of coordination is involved here. Estate & Properties:

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As the name states, this department is responsible for all real estate and property related affairs. This includes finding land for transceivers, office space available for rent at optimum location and negotiation of purchase, if need be, as well as rent.

Maintenance & general security: The executives here are responsible for the safety and security of personnel and equipment. He is also responsible for coordinating general maintenance activities throughout the organization

OUTPUT OF THE INDUSTRY CITYCELL

AT

PRESENT

Though Citycell is a pioneer one among the mobile companies, but it has not much improved as expected. The main reason is the network coverages that they have. But now at present it is improving day by day. For network coverage GP is the market leader now. After the partial acquisition of SingTell, Citycell is going move fast for increasing its customer base with the financial & Technical support from SingTell. Now there are 20 lacs subscribers of Citycell and it has been seen that of these approximately 4 lacs subscriber increased during November, 06 to June, 07. So, it is been expected that if such operations of the company continues, the number of subscribers would increase in future.

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Findings or Drawback CDMA : Due to its proprietary nature, the engineering community for solving does not know all of CDMAs flaws. CDMA is relatively new, and the network is not as mature as GSM.

CDMA cannot offer international roaming, a large GSM advantage. Introduced in the late 90s, the Global System for Mobile (GSM) Communications is a digital cellular used extensively in Europe and Asia. In addition to dividing its frequency allocation by frequency, this technology allows multiple users to use same frequencies by using a technique know as time Division Multiple Access (TDMA). In this method each pair of user, on average are assigned only a fraction of a second every second.

GSM: Lack of access to burgeoning American market. Like AMPS, GSM operators cannot allocate identical frequencies to adjacent cells because of the potential for interference. Grameen, Aktel and Sheba currently use four cell reuse patterns. Thus the systems are able to use on average one-fourth of the total allocated frequency on each cell.

Recommendation The analysis is based on the result of a consolidated evaluation of relevant theory and empirical information collected accordingly. All the collected information has been observed through the gloss of theoretical framework and has been used for answering the problem statement. As it has been mentioned before that qualitative research method will be conducted, which is more 19 explorative and un-structured with high emphasis on understanding (Ghauri et al, 2005, p202). The scope of qualitative data analysis comprises data reduction, data display; conclusion drawing says Miles and Huberman (1994). Data reduction is process of selecting focusing, simplifying the data; data display is the compressed assembly of information which helps in the conclusion drawing. In this case, we have focused and simplified the data according to the theory and afterword displayed those data for an attempt to take decision and also the

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conclusion. The recommendation is made based on the conclusion which also includes some further research direction.

CONCLUSION: Now a-days there are fierce competition exist among the companies operating as Mobile Service Provider in the country. Mobile industries are now in growth stage and its areas are spreading day by day. Mobile sector plays a significant role in the economy of Bangladesh, recently FDI (Foreign Direct Investment) through this sector are increasing. Now almost every company has Foreign Ownership Equity. Customers are also getting different opportunities as because fierce competition among the companies. It will be very helpful for the country if the mobile company works for the betterment of the peoples as well as for the country. We firmly believe that if Citycell follows these strategies, it will be able to achieve a sustainable distinctive competitive advantage and to run smoothly with loyal subscribers & market leadership

REFERENCE: City cell Year journals News papers of Bangladesh Bennett, R. and Blythe, J. 2002, International Marketing: Strategy Planning, Market entry and implementation, Kogan Page Limited (UK).

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