A Project Report

On

Overall Activities and Marketing strategy of

Radiant Communications Limited

ASA UNIVERSITY BANGASDESH

ASA U

university

Bangladesh

A Project Report
On

Overall Activities and Marketing strategy of

Radiant Communications Limited
PREPARED FOR:
Dr. Iqbal Hossain
Dean(Acting)& Chairman ,
Department of Business Administration
ASA University Bangladesh
PREPARED BY:
Md. Sohel Rana
ID no.: 071-2-263
1th Batch
Department of Marketing
ASA University Bangladesh

Date of Submission: 5th January, 2012

II

Students Declaration

I, Md. Sohel Rana ID No: 071-2-263 declares that the presented internship report on Overall
Activities and Marketing strategy of Radiant Communications limited, submitted as requirements
of Bachelor of Business ASA University Bangladesh was prepared by me. I tried my best to collect
effective information that made the report specific and original. This report is not submitted for any
other course, degree, and fellowship. Whole report is uniquely done by me.

Signature

Md. Sohel Rana

ID No:071-2-263
1st Batch
Major In Marketing
Program: BBA
ASA University Bangladesh

III

Letter of Transmittal
Dr. Iqbal Hossain
Dean (Acting) & Chairman,
Department of Business Administration
ASA University Bangladesh
Subject: Submission of Project Report on Overall Activities and Marketing strategy of Radiant
Communications Ltd
Dear Sir,
I, hereby, submit you Project Report on Overall Activities marketing strategy of Radiant
Communications Ltd which has been prepared as a partial fulfillment of the requirements for the
BBA program. I tried to put in all my knowledge that was gathered through the period of my
graduation in order to complete this report. However, all the internship &report completion period
was a learning experience for me. The report might fail to notice any important condition. I hope that
you would disregard my mistakes considering my limitation.
Finally, I would like to express my sincere admiration and thanks to you. I will be glad to answer any
queries that you may have in this regard.

Sincerely Yours,

Md. Sohel Rana

ID No: 071-2-263
1st Batch
Major In Marketing
Program: BBA
ASA University Bangladesh

IV

Acknowledgement
First of all I like to express my deepest gratitude to almighty Allah for his endless grace that has made
me possible in preparation and timely completion of this internship report on Overall Activities and
Financial Performance of Radiant Communications Ltd. I would like to express my thanks and
convey my gratitude to honorable Supervisor, Dr. Iqbal Hossain Dean (Acting) & Chairman,
Department of Business Administration ASA University Bangladesh for giving me an opportunity to
prepare this report.
I am also grateful to the management of The Radiant Communications Limited for offering me the
Internship training. My special thanks to Md.Sohel Mallik Ron, for helping me in different ways to
complete my report.
I also like to show cordial thanks to Chief Financial Officer: Z.A.M Mokhlesur Rahman under whom
I am completing my three months internship program. I am also grateful to all other employees and
stuffs. They were really very co-operative and friendly in nature. It would be very difficult to
complete this report successfully without their mindfully assistance.
My special gratitude goes to all the officials of ASA University Bangladesh (my
teachers, classmate & others), whose help and co-operation made me possible
to prepare this report.

Executive Summary
Radiant Communications Ltd. (RCL) is one of the best performing Internet Service and Solution
provider from 2004 to till now. In the first chapter of the report introduction of the company is
described. Here we will find out origin, significance, scope of the report. The objective of the report is
mainly classified in two ways, general and specific. The report is mainly based on the specific
objectives. It is descriptive in nature, which briefly reveals the overall activities and financial
performance of RCL. To know the overall activities and financial performance of Radiant
Communications Ltd secondary data and primary data have been used. Different ratios have been
used to find out the RCLs financial conditions. In the second chapter we RCLs vision, mission, and
core values is described. Also there will be the ethical principal and different functions of RCL in this
chapter. Chapter three is the theoretical part of the report. Here all the terms are described
theoretically that are used in this report. Chapter four contains the overall activities of RCL. Different
products and services of RCL such as Satellite Connectivity, IP Telephony Solutions (IPTS) is
described here. We will also know how these terms work for the firm, different business area of the
firm, their pricing strategy and also their competitors in the ISP market. Chapter five is the financial
analytical part of the report. RCLs liquidity condition is strong but as a service firm they dont need
that much liquidity. RCL should invest more and should be aware to expand their business. Different
activity ratio and profitability ratio have been used to calculate RCLs financial condition. There
inventory turnover was strong in the year 2008. But after that their inventory position was not good
and the result was low inventory turnover. The total asset turnover of RCL was in a upper trend. So it
was a good sign for the firm. Besides, their gross profit was declining which is an alarming sign for
the firm. But their debt ratio was in a declining stage too. There operating expense was high which
results a declining profits margin. And in the final chapter we will define our findings. Here we will
see their different services and products such as IP telephony, IP transit etc, there main 7 business
area, their main competitors (such as Amra, Link 3), and finally their financial activities. On the basis
of our findings we put our recommendation next. Then we end our report with little conclusions. In
the conclusion we will define their future plans, strategy for the development.

VI

List of Abbreviation

PoP
WAN
BTRC
NMC
IPT
MPLS
IPTS
PSTN
FOST
MRTG

:
:
:
:
:
:
:
:
:
:

Point of Presence
Wide Area Network
Bangladesh Telecommunication Regulatory Commission
Network Management Center
Internet Protocol Telephony
Multi Protocol Label Switching
Internet Protocol Telephony Solutions
Public Switched Telephone Network
Fiber Optics based specialized Training
Multi Router Traffic Grapher

VII

TABLE OF CONTENTS

Contents

Page

Chapter-01: Introduction

1-7

1.1 Introduction of The Report

1.2 Origin of The Report

1.3 Significance of the Report

1.4 Scope of the study

1.5 Objective of the Report

1.6 Methodology of the Study

1.7 Source of Data

1.7.1 Instrument Used For Analysis

1.8 Limitations of the Study:

Chapter-02: Profile of Radiant Communications Ltd

8-13

2.1 Overview of Radiant Communications Ltd.

2.2 Vision

2.3 Mission

2.4 Strategic objectives

10

2.5. Core Values

10

2.5.1 Ethical Principles

10

2.6 Function of Radiant Communications Ltd

11

2.7 Managerial Hierarchy of Radiant Communications Ltd

12

2.8 Five Years Glance of RCL

13

Chapter-03: Theoretical Aspects

14-22

3.1 Product and Services

15

3.2 Network Overview

3.3 Pricing Strategy

15

3.4 Network Management Center (NMC)

15

3.5 Installation Program

16

3.6 IP Transit backbone

16

3.7 The Multi Router Traffic Grapher (MRTG)

17

3.8 Financial Performance Analysis

17

15

VIII

3.9 Balance Sheet

17

3.10 Income Statements

18

3.11 Asset

18

3.12 Leverage

18

3.13 Equity

19

3.14 Ratio Analysis

19

3.14.1 Current ratio

20

3.14.2 Quick ratio

20

3.14.3 Inventory Turnover

20

3.14.4 Total Asset Turnover

21

3.14.5 Debt Ratio

21

3.14.6 Gross profit ratio

21

3.14.7 Operating Profit Margin

22

Chapter-04: Overall Activities of Radiant Communications Ltd

4.1 Products and Services of RCL
4.2

Business Area

23-29
24
25

4.3 Pricing Strategy

26

4.4 Competitors of RCL

27

4.5

Network Management Center (NMC)

27

4.6

IP Address

28

4.7 Installation Program

28

4.8

Multi Router Traffic Grapher (MRTG)

28

4.9

Redundancy of IP Transit backbone

29

4.10 Bandwidth Scalability

29

4.11 Redundancy of Last mile

29

Chapter-05: Financial performance Analysis

5.1

30-37
31

Ratio Analysis

5.1.1 Current Ratio

31

5.1.2 Quick Ratio

32

5.1.3 Inventory Turnover

33
IX

5.1.4 Total Asset Turnover:

34

5.1.5 Debt Ratio

35

5.1.6 Gross Profit Margin

36

5.1.7 Operating Profit Margin

37

Chapter-05: Findings, Recommendation & Conclusion

6.1
Major Findings

38-41
39

6.2

Recommendations

40

6.3

Conclusions

41

Chapter ONE

Introduction

1.1

Introduction of The Report

In the age of globalization, the importance of communication sector is beyond description. Starting in
the early 1990s, Bangladesh had dialup access to e-mail using the Bulletin Board Systems (BBSs) of a
few local providers, but the number of users did not total more than 500. The number of Internet
subscriptions in Bangladesh grew from 186,000 in 2000 to 617,300 in 2009. However, only 0.4% of
the population used the Internet in 2009 giving Bangladesh one of the lowest usage percentages in the
world, ahead of only North Korea, Myanmar, and Sierra Leone. By 2011 however, the number of
Internet users in Bangladesh had seen phenomenal growth of over 900% bringing the total number of
users to 5,501,609 (3.5% of the total population) mainly due to wide availability of mobile Internet
access. In 2005 there were more than 180 ISPs operating in the country. ISP's are regulated by the
Bangladesh Telecommunication Regulatory Commission (BTRC). In 2011 there were 111 licensed
ISPs providing services nationwide and 84 ISPs providing services in the central zone. Radiant
Communications Limited (RCL) was established in 2005 to market the IP backbone connectivity
based on satellite. In the year 2006 it has incorporated the IP-Interconnectivity service using
Submarine cable backbone of BTTB. In the year 2009 it has incorporated the IP-Interconnectivity
service using private International Internet Gateway Operator. Recently it has incorporated the IPInterconnectivity service using Radiant Communications Limited IIG Wing.

1.2

Origin of the Report

It is an opportunity for the students to acquire an in-depth knowledge about the practical orientation
and experiences of dynamic business world through the internship program. It is obligatory to
undertake an extensive study to prepare a report for the students of Business Administration, National
University, who are desirous to the successfully completion of their BBA program. As part of the
program, I am highly proud to join with Radiant Communications Ltd as internee and selecting topic
Overall Activities and financial performance of Radiant Communications Ltd. I had work there in
several departments, but I had to select an area of study in which I can make detail financial research
and present my understanding in the report. This report, Overall Activities and financial performance
of Radiant Communications Ltd, has been prepared to fulfill the partial requirement of BBA program
as a mean of Internship Program.

1.3

Significance of the Report

2

Education will be the most effective when theory and practice blends. Theoretical knowledge gets its
perfection with practical application. And the internship is designed to bridge the gap between the
theoretical knowledge and real application. The prime reason of this study is to become familiar with
the practical business world and to attain practical knowledge about the overall corporate world,
which is so much essential for each and every student to meet the extreme growing challenges in job
market.

1.4

Scope of the Report

The report is mainly confined to the Overall Activities and financial performance of Radiant
Communications Ltd. In order to conduct study on this main issue, the following aspects come within
the scope of the study.

1.5

An overview of Radiant Communications Ltd

To know the function of different division of Radiant Communications Ltd
Evaluation of financial performance of RCL through trend analysis of financial ratios of RCL

Objective Of The Report

The main objective of education is to acquire knowledge. There are two types of objectives of the
report. One is general objective and the other is Specific objective.

General Objective:
The prime objective of this report is to know about the overall activities and to analyze financial
performance over five years data of Radiant Communications Ltd.

Specific Objectives:
The specific objectives are as follows:

To know different services and products of Radiant Communications Ltd.

To have idea about the business area covered by Radiant Communications Ltd.
To know the pricing strategy of Radiant Communications Ltd.
To find out the competitors of Radiant Communications Ltd.
Evaluate different financial ratios to know the liquidity condition and the ability of the firm to

utilize its resources to generate profit.

To know the leverage condition and the ability of profit generation of the firm by calculating
& evaluating some related ratios.

1.6

Methodology

This report is descriptive in nature, which briefly reveals the overall activities and financial
performance of Radiant Communications Ltd. Data required for this report were collected from the
verbal conversation, observation, and from many secondary sources. Apart from these, helpful
information was collected from online resources.

1.7

Source of Data:

To know the overall activities and financial performance of Radiant Communications Ltd secondary
data and primary data have been used.
Data Collection procedure: To find out the overall activities and financial performance of Radiant
communications I use both secondary and primary data. Data sources are given below.

Secondary data

Financial Record Book of Radiant Communications Ltd (year 2008 to 2012).

Web base support from the internet. (www.radiantbd.com)
Office circular and other published papers. (collected from office)

Primary data

Face-to-face conversation with the respective officers and staffs of Radiant Communications
Ltd.

Practical work exposures from the different desks of the departments.

1.7.1 Instrument Used for Analysis:

Financial uncertainty cant be avoided. But uncertainty from fluctuations in the value of complex
financial instruments can be measured, managed, and leveraged to your companys advantage. Almost
every organization uses two main analytical instruments.
Ratio Analysis: Financial ratios quantify many aspects of a business and are an integral part of the
financial statement analysis. Financial ratios are categorized according to the financial aspect of the
business which the ratio measures. Four broad group of ratio are give below.
A. Liquidity ratios measure the availability of cash to pay debt. Four commonly used liquidity ratios
are given below:
1. Current ratio or working capital ratio
2. Quick ratio or acid test ratio
4

3. Absolute liquid ratio

4. Current cash debt coverage ratio
B. Activity ratios measure how quickly a firm converts non-cash assets to cash assets. Some
important activity ratios are:
1. Inventory turnover ratio
2. Receivables turnover ratio
3. Average collection period
4. Accounts payable turnover ratio
5. Average payment period
6. Asset turnover ratio
7. Working capital turnover ratio
8. Fixed assets turnover ratio
C. Debt ratios measure the firm's ability to repay long-term debt. Some frequently used long-term
solvency ratios are given below:
1. Debt to equity ratio
2. Times interest earned ratio
3. Proprietary ratio
4. Fixed assets to equity ratio
5. Current assets to equity ratio
6. Capital gearing ratio

D. Profitability ratios measure the firm's use of its assets and control of its expenses to generate an
acceptable rate of return. Some important profitability ratios are given below:
1. Net profit ratio
5

2. Gross profit ratio (GP ratio)

3. Price earnings ratio (P/E ratio)
4. Operating ratio
5. Expense ratio
6. Dividend yield ratio
7. Dividend payout ratio
8. Return on capital employed ratio
9. Earnings per share (EPS) ratio
10. Return on shareholders investment/Return on equity
11. Return on common stockholders equity ratio
E. Market ratios measure investor response to owning a company's stock and also the cost of issuing
stock. These are concerned with the return on investment for shareholders, and with the relationship
between return and the value of an investment in companys shares. Some important Market ratios
are:
1.
2.
3.
4.

Earnings per share

Payout ratio
P/E ratio
Dividend yield

Trend Analysis: Trend Analysis is the practice of collecting information and attempting to spot a
pattern, or trend, in the information. In some fields of study, the term "trend analysis" has more
formally defined meaning. Although trend analysis is often used to predict future events, it could be
used to estimate uncertain events in the past, such as how many ancient kings probably ruled between
two dates, based on data such as the average years which other known kings reigned.
For above analysis I have used some computer software such as ms word, excel.

1.8

Limitations

The study mainly covers the financial performance of RCL only. Apart from this the following
limitations of the study can be mentioned.

Time Limitation: To complete the study, time was limited by three months. It was really very short
time to know details about an organization like Radiant Communications Ltd.

Inadequate Data: Lack of available information about of Radiant Communications Ltd. Because of
the unwillingness of the busy key persons, necessary data collection became hard. The employees are
extremely busy to perform their duty.

Lack of Record: Unavailability of sufficient written documents as required making a

comprehensive study was another problems. In many cases up-to-date information was not available.

Lack of experiences: Lack of experiences has acted as constraints in the way of meticulous
exploration on the topic. Being a member of the organization; it was not possible on my part to
express some of the sensitive issues.

Chapter Two
Profile
Of
Radiant
Communications Ltd.

2.1

Overview of Radiant Communications Ltd

Radiant Communications Limited (RCL) was established in 2005 to market the IP backbone
connectivity based on satellite. In the year 2006 it has incorporated the IP-Interconnectivity service
using Submarine cable backbone of BTTB. In the year 2009 it has incorporated the IPInterconnectivity service using private International Internet Gateway Operator. Recently it has
incorporated the IP-Interconnectivity service using Radiant Communications Limited IIG Wing.
Headquartered in Banani, Dhaka, RCL serves the metropolitan customer base with representative
country-wide offices in Bangladesh. Supported by a management team of highly skilled and
experienced professionals, RCL offers a wide range of services, including IP transit based on satellite
and Sub-marine cable, Fiber optics based services and solutions as well as IPLC international
connectivity.

2.2

Vision

By connecting the world, working with others, and advocating for equal access to the Internet, the
Internet Society strives to make the world a better place. Besides, to expand loyal customer base by
being known as the ISP partner that constantly exceeds customer expectation and to become the
dynamic leader in the internet market and play a vital role in the development of the country.

2.3

Mission

Facilitates open development of standards, protocols, administration, and the technical

infrastructure of the Internet.

Supports education in developing countries specifically, and wherever the need exists.

Provides reliable information about the Internet.

Serves as a focal point for cooperative efforts to promote the Internet as a positive tool to
benefit all people throughout the country.

Develop long term relationships that help our customers achieve their success.
Offer rewarding career opportunities and cultivate staff commitment.
Uphold ethical values and meets its customers need in the fastest and most appropriate way
and continue innovative works in order to achieve human resource with superior qualities,

technological infrastructure and service package.

Cost reduction integration of the technology at all level.

2.4

Strategic Objectives

Develop a customer oriented service culture with special emphasis on customer care and
convenience.

Empowering people to achieve human potential through unencumbered Internet use.

Develop innovative products and services that attract targeted customers and market
segments.

Web hosting and design, maintenance, and monitoring of websites.

To strive the customers best satisfaction & win their confidence.

To take part in the economic growth.

High-speed Internet connectivity with lower cost.

Both before and after sales services for the customer support.

2.5

Core Values

Social responsibilities we care for and contribution to our communities

Performance we measure result and achievements
Integrity we uphold trustworthiness and business ethics
Respect - we cherish every individual
Innovation we encourage creativity
Teamwork we work together to succeed

The first letters of the initial words from SPIRIT and carry equal importance.

2.5.1

Quality: Quality service experience is a paramount to the customer and strongly committed

Ethical Principles

to fulfill this idea. RCL have a culture of timely compliance of regulatory requirements.
Honesty and Integrity: RCL ensure the highest level of integrity to the customer, creating an
ongoing relationship of trust and confidence. RCL treat their customers with honesty, fairness

and respect.
Belief in Our People: Recognize that employees are the most valuable asset and competitive
strength. RCL respect the worth and dignity of individual employees who devote their careers

for the progress of the organization.

Teamwork: RCL believer in team work and feel that, loyal and motivated terms can produce
extraordinary results. RCL is driven by a performance culture where recognition and rewards
are based on individual merit and demonstrated track record.

10

Corporate Social Responsibility: As a responsible corporate citizen, we consider it

important to act on a responsible manner towards the environment and society. Our
commitment had always been to behave ethically.

2.6

Function of Radiant Communications Ltd.

Providing internet services to common people.
Introduce modern internet services in the country.
Developing marketing campaigns.
Monitoring and forecasting.
Own Fiber Optic Network throughout Dhaka City.
24 Hours Technical Support

Top Management

Chairman & Managing Director,

Deputy Managing Director,
DMD
Chief Financial Officer (CFO)
Chief Technical Officer
Head of Admin (HR)
Head of marketing & Sales

Mid-Level Management
2.7

Managerial Hierarchy of Radiant Communications Ltd Limited

Senior
Principal
Officer hierarchy of Radiant Communications
There is a figure given below which
expresses
the employee
Ltd.

Principal Officer

Junior Level Management

Senior Officer
Officer
Junior Officer
Office Assistant

11

2.8 5 Years at Glance of Radiant Communications Ltd

Particulars

2008

2009

2010

2011

2012

Turnover

4,59,29,974

7,13,30,313

5,25,39,231

6,93,56,375

8,87,53,735

Cost of Sales

2,29,34,196

3,68,13,745

2,72,92,496

3,88,72,693

4,99,82,198

Gross Profit

2,29,95,778

3,45,16,568

2,52,46,735

3,04,83,682

3,87,71,537

General &
Admin Expense

19,54,642

37,96,823

24,48,934

32,92,238

46,52,584

Operating Profit

2,10,41,136

3,07,19,745

2,27,97,801

2,75,11,822

3,46,77,252

Net Profit

1,32,30,507

2,05,73,193

1,47,35,859

2,01,98,002

2,10,44,221

Paid up Capital

5,563,697

10,873,779

6,594,367

7,162,697

11,371,938

Current Assets

1,15,00,500

3,00,45,112

1,95,00,000

2,65,65,000

3,09,62,172

Current
Liabilities

1,01,95,083

1,49,27,297

64,04,190

1,50,88,558

2,04,87,265

Total Assets

6,92,59,497

10,44,39,647

8,45,21,333

9,61,30,672

10,95,62,711

Total Liabilities

3,27,163,05

5,042,7,384

2,54,99,198

3,60,99,669

3,73,62,317

12

Chapter Three
Overall Activities of
Radiant
Communications Ltd.

3.1

Products and Services of RCL

RCL serves the metropolitan customer base with representative country-wide offices in Bangladesh.
Supported by a management team of highly skilled and experienced professionals, RCL offers a wide
range of services, including IP transit based on satellite and Sub-marine cable, Fiber optics based
services and solutions as well as IPLC international connectivity.

RCL also offering the following IP based Products: 13

Satellite Connectivity is Internet access provided through communications satellites. Modern

satellite Internet service is typically provided to users through geostationary satellites that can offer
high data speeds, with newer satellites achieving downstream data speeds up to 15 Mbps.
Nationwide Data Connectivity means by which a database server and its client software
communicate with each other. The term is used whether or not the client and the server are on
different machines. The client uses a database connection to send commands to and receive replies
from the server.
IP Telephony Solutions (IPTS) IP telephony (Internet Protocol telephony) is a general term for the
technologies that use the Internet Protocol's packet-switched connections to exchange voice, fax, and
other forms of information that have traditionally been carried over the dedicated circuit-switched
connections of the public switched telephone network (PSTN). Using the Internet, calls travel as
packets of data on shared lines, avoiding the tolls of the PSTN. The challenge in IP telephony is to
deliver the voice, fax, or video packets in a dependable flow to the user.
Domain Registration is the process of acquiring a domain name from a domain name registrar.
Web Solution
Hosting Solution Network Overview

RCL also offering the following IP based typical services: -

IP Transit: IP Transit is an Internet access based data transport service provided by an operator to
his customers. The network quality of an operator is evaluated according to his capacity available and
its peering. IP Transit is calculated out of bit second, and subjected to latency.
The transit service is typically priced per megabit per second per month, and customers are often
required to commit to a minimum volume of bandwidth, and usually to a minimum term of service as
well. Some transit agreements provide "service-level agreements" which purport to offer money-back
guarantees of performance between the customer's Internet connection and specific points on the
Internet, typically major Internet exchange points within a continental geography such as North
America.

14

Fiber optics [FO] Spares: This is a cable made up of super-thin filaments of glass or other
transparent materials that can carry beams of light. Because a fiber-optic cable is light-based, data can
be sent through it at the speed of light.

Private Corporate Networks.

IPLC international connectivity

Fiber Optics based specialized Training [FOST].

3.2 Business Area

RCL has 7 [seven] numbers of POPS [Point of Presence] in Dhaka Metropolitan area with full
customer care facility. The places includes

Banani: Almost 30% of RCL line is in this area because their head office exists here and so as their
main connectivity.
Gulshan: 10% of RCL line is in this area because of lower distance from the main PoP.
Uttara area: Unfortunately RCL have little connectivity in this area for existing ISP providers on that
area.
Purana Paltan: This area contains huge corporate office. That is why it is one of the most important
business areas for RCL.
Panthopath, Dhanmondi, and Mohammadpur: Are three very close PoP for the company. And
almost 40% of RCL line is here and most of the users are local ISP providers.

The cable lay-out has been made based on 24-core and 12 core Fiber optic [FO] cable by NTTN
service provider and own cable . A full redundant cable layout in Ring Topology ensured the
99.99% uptime of the service. The serviceability is escalated in 3[three] different steps which
ensured the spontaneous support/service of each customer.
RCL 24x7 Network Operation Center will monitor Customer network health and can troubleshoot
most of problems online.

15

3.3

Pricing Strategy

Bangladesh revenue board of telecommunication has set up a price ceiling for broadband service
providers, so RCL has to set the price within that price range.
Different pricing strategies followed by RCL are,
Value Based pricing: RCL is following value based pricing. They consider the purchasing power of
their customers while deciding the price range. However they evaluate the speed and maximum
access which can be provided by them within that range and fix the price for every segment. The term
is used when prices are based on the value of a product as perceived from the customer's
perspective. The perceived value determines the customer's willingness to pay and thus the maximum
price a company can charge for its product.
Product line pricing: Product line pricing is different price for different range, or different service
offered, their connections are shared connection, different package like ready speed have different
price, as ready speed has no access limitation so its a bit higher in price, and for others speed and
access limitation has cap on it so the price varies.

3.4 Competitors of RCL: All the existing and new ISP based organizations can be treated as the
competitors of RCL. MANGO, LINK 3, AMRA NET, are the most known face in the ISP market.
Their overall business policy is far advanced than RCL. Also new entrance such as OLLO NET can
give a good competition in the internet market. To understand the competition we can see different
pricing policy of the competitors.
Link 3

Radiant

Mango

16

Direct Fiber
bandwidth

Direct Fiber
bandwidth

Direct Fiber
bandwidth

1 mbps

2.5mbps

4 mbps

1,400/-

1,200/-

1,600/-

24 hours

3500/-

4000/-

4,500/-

24 hours

9,000/-

9,000/-

10,000/-

24 hours

From the above chart we can see two competitors of RCL and difference among their prices. Here for
1 mbps three different companies have three different prices based on their different
perceptions. And that creates the competition in the market.

3.5

Network Management Center (NMC)

The NMC is a centralized operations facility that controls, monitors and manages all the activities in
all the RCL customer networks. It is the center for implementation and coordination of all day-to-day
network operations and support functions, including:
network configuration administration & maintenance
new circuit comissionings
earth station line-up tests
network health status monitoring
fault diagnosis and rectifications
network performance analysis
occasional transmission service support
customer service support
RCL is committed to provide the most reliable and highest quality service to our customers. We
understand an efficient and timely response to our customer requirements is of utmost importance.
RCL NOC is 24-hour manned providing round-the-clock support to our customers. A 24-hour hotline
number have been set up to receive customers fault complaints and take care of any specific
requirements from customers from anywhere at any time of any day.

17

3.6

IP Address

If client have their own IP address then RCL will do global peering. If they require real IP Addresses
RCL will provide along with this solution. If your requirement justifies for more 16 IPs, RCL
can allocate more IPs.

3.7

Installation Program

RCL will provide an installation service at Company Name Here locations through underground fiber
as per yours requirements. RCL will configure and commission of the Routers/Switches/Firewall at
the customer Premises. All the deployed existing network system will be compatible with the
proposed system of ST yours. The entire Installation process will be monitored by experts, supervised
by experienced RCL Engineers and implemented by qualified RCL Technicians.

3.8

Multi Router Traffic Grapher (MRTG)

RCL will provide The Multi Router Traffic Grapher (MRTG) that is a tool to monitor the traffic load
on network-links. MRTG generates HTML pages containing GIF images, which provide a
LIVE visual representation of the usage of the client.

3.9

Redundancy of IP Transit backbone

RCL is primarily connected with Radiant Communications Ltd IIG wing named CUBE. Its IP
transit backbone is connected with Tier-1 carrier Radiant communaction, Telecom ITALIA. It is
also connected with ITC operator and has 4.5 miters Own VSAT backup from day one of
commissioning. It is also on process to connect Telecom Malaysia, PCCW, and TATA
Communications.

18

3.10 Bandwidth Scalability

Bandwidth scalability is most important for a services provider; a risk losing all access to the
complaining receiver this is a strong incentive to cooperate, especially when the receiver is a
popular public-access site. RCL have presented Active Internet Traffic Filtering, network-layer
ltering mechanism that preserves a signicant fraction of a receivers tail circuit in the face of
bandwidth, ooding, while requiring a reasonable amount of resources from participating ISPs.
RCL active action identifying undesired traffic, blocking it, Path-based Wire-speed Filtering,
Provider-client Message Authentication, Non-compromised Path, Temporary Filters Selective
vs Aggregate Filtering, on-cooperating Source Gateways, Controlling Resource Consumption,
Malicious Filtering Requests, Taming Filtering-request Floods, Spoofed Addresses and Paths,
Source-address Spoong, On-off Sources

3.11 Redundancy of Last mile

RCL 7 [seven] numbers of POPS [Point of Presence] of Dhaka city are primarily connected in
respective loop on high capacity transmission backbone by fiber optics to ensure the
redundancy. For Graphics Information Systems Limited connectivity we are going to setup
intelligent active device.

19

Chapter Four
Radiant
Communications Ltd
Marketing strategy

4.1 Segmentation
Radiant communication Market segmentation could be defined as the process of identifying different
groups of users within a market who could possibly be targeted with separate products or marketing
programmers. Market segmentation could help improve a companys competitive position as
marketing is concerned with matching the companys resources to the user groups. According to the
property of the customers, users could be segmented as business users and personal users; and based
on the speed of the fiber internet service, customers can be dived into high speed (from 500Mbps to
1Gbps) users and medium speed (50 Mbps to 500 Mbps ) users. Based on these two basic dimensions,
the users of the new fiber products could be segmented in four groups as illustrated in the table below :

Business Users demand for

High speed connection

Business Users satisfied with

medium speed connection

Personal Users demand for

High speed connection

Personal Users satisfied with

medium speed connection

Table 6.0 Market segmentation for fiber product

20

4.2 Positioning
As analyzed above, it is advisable that Radiant Communication adopts the differentiation generic
strategy to maintain its competitive advantage, so as for the selection of marketing segments Radiant
Communication also needs to cover the majority of users. But in consideration of the operating cost
and further differentiation strategy by combining other Radiant Communication services with the new
fiber product in term of package, it is practical need that Radiant Communication give up the high
end market, i.e. the high speed connection market. So for the positioning strategy, Radiant
Communication has chosen the two types of segments: Business Users satisfied with medium speed
connection and Personal Users satisfied with medium speed connection .

4.3

Marketing mix

Marketing mix consists of marketing strategies that companies used to persuade and manipulate the
market and marketing mix is most popularly represented by the 4Ps (Baker & Hart 2008, p463) Below
the marketing plan will be unfolded using the 4Ps framework .

4.3.1 Product decisions

Based on the conclusions we have above, the new fiber product will use the differentiation
genericstrategy and focus on the users who are satisfied with the medium speed. Several product
decisions could thus been made to describe the features of the new product. Firstly, the new product
should have its own product name to differentiate itself from other product that Radiant
communication provides and the competitors provide to make it standing out; secondly, the new
product will be released into the market in term of a package rather than a standalone form to avoid
direct competition with other fiber internet service providers and create differentiations. Radiant
communication could provide various plans that consist of different Radiant communication products,
for example, a exPress 50 that consists of 50Mbps fiber speed, home line and basic Mio TV
services is the basic plan and exPlore Home 50 will based on the previous plan and add more
services such as mobile line and more TV channels, likewise exPress 100 exPlore Home 200
plans could also be provided to customers; thirdly, all plans should be under at the two years contract
aiming at sustaining more customers and avoid frequent change of users.

4.3.2

Pricing mix

Several factors need to be considered and leveraged carefully before pricing the fiber products: cost,
competition level, and companys strategy to occupy the market and achieve profitability at the same
time, product strategy to differentiate the products. To address all these concerns regarding the
companys strategic considerations, generally the company could price its new products in a medium
level with the help of the following pricing strategies. The first is Product Bundle Pricing which set a
price for several products that are combined in a package; this is in accordance with the bundle
product strategy that just mentioned. As the products are combined together, Radiant Communication
could set a competitive price compared to the values it provides to the customers in the package to
21

achieve both objectives of occupying the market and sound profit; another pricing strategy that could
be used is Promotional Pricing as promotional activities will be of great importance to the marketing
of the new product which will be explained in detail in the coming part of this study, and using a
promotional pricing strategy to provide lower and attractive price will help the company to obtain
more contract signed for the new product in a short period of time. One more pricing tactic that could
be used is Psychological Pricing, as mentioned above there are various ethnics groups in Singapore
but Chinese is the largest one in Singapore account for around 70% of the population, so some lucky
and magical number such as 8 could be a good idea to attract more potential Chinese customers. For
example, the monthly subscription of the bundle plan could be set as $ 88.8.

4.4. Promotional mix

The promotional mix that used to increase the exposure of the new product and persuade the potential
customers into buying behaviors will be of critical strategic importance in consideration of the
companys strategic goal to occupy the market in the marketing plan in the next three years. In term of
budgeting, the promotional activities would take up a large proportion of the budget which will be
reflected in the budgeting later for its importance in the marketing plan. And in term of promotional
channels Radiant communication could use the following channels to unfold its promotional
activities: direct mailing, sale promotion, personal selling, advertising, telephone sale. Among these
techniques, advertising and sale promotion is of no doubt will be very important but the direct mailing
is also very effective in Radiant communications case as the company is the largest internet service
providers in Singapore and its majority of users will check their mailbox at least on a month basis to
get their bill of the Radiant communication services, so sending the promotional information through
direct mailing could be an effective method under such circumstances.
4.4.1
Place mix
When the place mix is the least concerned P among the 4Ps concept, it is not the least important to
beconsidered. In contrast, it is the source of competitiveness to Radiant communication, a company
that earn the customers royalty by its well known quality service. For the place mix, several
suggestions could be provided to the company to keep up its quality service as it promised. Firstly, the
installation and activation period must be reduced largely. Currently, as a new product, the fiber
internet connection could take up 4 to 9 week to activate which is not acceptable compared to its the
promis of quality service though it is new products. Secondly, as mentioned earlier, there had been
cases customers were very unsatisfied as they signed up the contract eying for the premium gifts but
wer later told that there were not enough of stocks, so this time Radiant communication should avoid
these cases from happening again. And to achieve this, a well estimation of the number of premium
gifts needed and closed careful management of the stocks will playing important role to avoid such
cases from happening again and if the stock is running out then the new customers who are about to
sign the contract should be told in advance about the possible delay of the delivery of the premium
gifts.

22

4.5

Implementation and budgeting

Due to the limit of the access to the actual digits and data regarding the budgeting of the marketing
plan even in term of approximate digits, the budgeting will be served in the reference purpose .
Activities

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Budget

Advertisement&Prom
otion

Sale force stimulation

Sale force training

3,600

300

200

Distribution channel
maintenance

Telephone sale

R&D

150

500

3,000

Total

7,750

In thousands (SGD)
Chart 2.0 Radiant communication marketing actions and budget Gantt chart for 2011 (Fiber division)

Activities

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Budget

Advertisement
Promotion

4,600

Sale force
stimulation

400

23

Sale force
training

300

Distribution
channel
maintenance

250

Telephone
sale

R&D

500

3,000

Total

9,050

In thousands (SGD)
Chart 3.0 Radiant communaction marketing actions and budget Gantt chart for 2012 (Fiber division)

Activities

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Budget

Advertisement
Promotion

3,600

Sale force
stimulation

400

Sale force
training

400

Distribution
channel
maintenance

350

Telephone
sale

R&D

Total

500

3,000

8,250

In thousands (SGD)
24

Chart 4.0 Radiant communication marketing actions and budget Gantt chart for 2013 (Fiber division)

As shown in the three charts above, the promotional and advertisement effort will
be increase in the first two years, but in the third years, the budgeting will be
reduced as the product is expected to be accepted and commercialized by the
market. So the budgeting is reduced in the third years in consideration of the cost
control.
4.6 Sale forecast
The sale forecast is also very approximate and discrepancies could even be very
large to the actual digits due to the limited access to the companys data.
2010

2011

2012

2013

Sale
revenue
(after tax)

300,000

400,000

600,000

750,000

Cost

210,000

266,000

360,000

440,000

Profit

90,000

134,000

240,000

310,000

In thousands (SGD)
Table 7 Projected profit and loss statement (fiber product division)
Please be noted that the growth of revenue and profit is more than 10% which has been previously set
by the marketing objective in a corporate level, but since this is only about the fiber product division,
the growth rate is even higher which acceptable in common understanding.

4.7

Control and feedback collection system

When the marketing plan is under implementation, the company should focus on the control and
feedback collection effort to closely monitor the implementation of the marketing plan, in this regards
several tools could be used such as market share analysis, profitability analysis and sale force
efficiency monitoring. For example the market share is expected to reach 35% in the end of the three
year plan, but the company should divide the target into smaller targets on a year or month basis to
ensure that the marketing effort could achieve the target in the end of the 2013. Whats more in term
of feedback collection, the customer center (call center) could help monitor the feedback from the
customers. For example, the company could calculate the number of calls that customers called in to
complain the companys services and products regarding the fiber internet service.

4.8

Marketing system
25

 Product
Price
Promotion
Place
4.8.1 Service
RCL is service based industry. So it always tries to maintain the quality of the service when it
customer. And RCL has done the job offering different type of package.

4.8.2 Price
Pricing is one of the marketing mix tool that a company uses to achieve it marketing objective. RCL
decides its service pricing on the basis of cost based pricing. They always think about the consumer
purchase capability. Thats why they try to fix a reasonable price for the consumer.

4.8.3 Promotion Strategy of RCL

Promotion is one the marketing tools that a company uses to achieve its marketing objective. Each
promotion tools has unique characteristics to improve their total sales. RCL are trying to do more
promotional activities for their service. RCL marketing promotion can be classified in several steps:

4.8.4 Advertising
RCL first promotional activity is advertising. They know that advertising is the way wher massage
could be delivered to the consumers main. And this Massage can be delivered to the consumer by the
sound. Music, choreography, lighting and performer appearance. Advertising can be used to buildup a
long- term image for a product and also can trigger quick sales . So that they invest a huige amount of
money for advertise to create a brand loyal customer.

Advertising media:

Newspaper

Web site

Magazine

Billboard
26

Leaflet

Flyer

Poster

Banner

4.8.9 Personal selling

Personal presentational by the firm sales force for the purpose of making sales and building customer
relationship. RCL uses personal selling in different stages of marketing and distribution. Company
distributes their product among the local provider and retailers by maintaining the excellent
relationship.

4.8.10 Sales Promotion

RCL sales promotion includes a wide way of tools that can attract consumers attraction, strong
incentive of purchase, free gifts, discount and several types of occasional program. PHP sales
promotion includes credit sales, commission etc. PHP arrange conference every year among the
dealers, wholesalers and retailers. They always try to influence and convince them for creating a
market demand and sale their product.

4.8.11 Public Relation

Public relation is used to promote products, people, places, ideas, activities, organizations and even
nations. Public relation can also influence a product sales or brand awareness. RCL arrange meeting
always with the local and carport customer for maintaining a good relationship with them..

4.8.12 Place
Place is very much important for product sale. Place depends on good location, transportation facility,
availability, channels etc. and RCL select a right place named Banani, from this place people can
easily buy the product and there transportation system is very easy and available..
27

4.8.13 Direct Marketing:

Direct Marketing can also be effective media of promotion for the RCL. Directly visiting the
customer could not be cost effective and feasible for RCL.

4.9 SWOT Analysis RCL

4.9.1 Strengths:
Market leaders: RCL is the first organization in Bangladesh which have reached to the
general people.
Network Availability: RCL has widest network coverage and a large of BTS station
Brand name of RCL image: RCL is well known all over the country because of its
appreciable activities in financial sector for poor people in Bangladesh.
Financial soundness: Because of the effective planning RCL is able to earn a healthy amount
of revenue which gives then financial soundness.
High ethical standard: To keep the quality of serviced RCL is street to follow its ethical
standard.
4.9.2 Weakness:
Complicated Pricing Structure: RCL has lots of product. The pricing of these products
and their billing policies are different which also difficult for amusers to understand.
Incomplete Messages through promotional activities: Most of the time the

advertisement of RCL does not clear. The appropriate message not only that most are
also so confusing to understand
Different department are not working together: The inter connection of the department

little bit weak.

4.9.3 Opportunities:
1. Economic growth of Bangladesh: The economic growth of country will increase the
expansion of ISP industry.
2. New and better interconnect agreement: RCL is going to have agreement with TK. To
have better from WIMAX.
3. Huge demand for ISP services: The market of ISP is expending. So, this is easy for RCL
to achieve the major portion of expanded market because of its leading position.
4.9.4 Threats:
1. More rigid Government regulations: Government is becoming restricted for taking away
currency from the country.
2. Political Instability: Political instability is another threat because with the change of
Government, policies are also changed.
3. Devaluation of Taka: As the investment occurs in foreign currency thats why the
devaluation of Taka decrease profit financial profit of view.

28

Chapter Five

29

Major Findings,
Recommendations &
Conclusions

5.1

Major Findings

The analysis of the overall activities and Marketing strategy of Radiant Communications Ltd reveals
the following major findings.
RCLs motto is to provide access to internet for everyone. From middle to upper class people
are fond of leading a modern life because it makes the life faster, speedy and efficient. The
main products of RCL are satellite connectivity, nationwide data connectivity, IP Telephony
Solutions (IPTS) and domain registration. They also provide IP transit and Fiber Optic
Spares (FOS) as services.
30

 The main business areas of RCL are Bannani, Gulsan, Uttara, Purana Paltan, Panthapath,
Dganmondi, and Mohammadpur.
RCLs mainly follows value based and product line pricing strategy for their customers.
RCLs main competitors are Telecom operators, existing ISP companies and local providers.
Links 3, Mango, Amra are the main competitors in the ISP market for RCL.
RCLs current sales are higher in the year 2009 and 2010 then the rest of the years which can
create negative pressure on profitability.
RCLs should offer some discount for existing users to create brand loyalty

RCLs should more concentrate on CSR activities.

The is trying to grab the ISP market of Bangladesh in both home user end and corporate
clients.
RCL main competitors are Telecom operators, existing ISP companies and local providers.
RCL competitive advantage is having the wireless broadband technology

5.2

Recommendations
RCL could offer more product packages with variable features to compete the other
broadband companies. Like: Banglalion has more product variation than QUBEE. More
product variation helps a company to be unique. RCL should come up with TV advertisement
as early as possible because as they are launching new product in present market so their
prime function to create consumers
RCL should try to expand their business area which will naturally increase their customers
and their fame.
31

 RCL should consider pricing of their product. Bangladesh has price sensitive market. At
present consequence, it has seen RCL has high price. If RCL wants to continue with this price
they should focus over their quality service and promote their product on this basic.
RCLs current slaes is higher in the year 2009 and 2010 then the rest of the years. They should
try to change marketing strategy and improving sales
RCLs Brand name should be easy to understand and communicate.
RCLs could offer more product packages with variable features.
RCL should come up with TV advertisement.
RCLs should consider pricing of their product

5.3

Conclusions

RCL is an old and exciting company in Bangladesh. Internet and telecommunication technologies are
one of the great innovations in 21st century. This innovation has a big role in the changing mode of
business environment and advertisement technology. Aamra networks are the local partner of RCL in
32

Bangladesh. RCL, the foreign partner of Aamra networks who brought WiMAX for the first time in
Bangladesh. During this period, I learned a lot about RCL and its sales operation and Strategy. In this
report, I tried to describe the operation and function of RCLs different channel. They have plans to
roll out as much network coverage as possible across Bangladesh to capture the growing market by
offering quality customer care and reliable services. RCL will soon be available right across
Bangladesh; the service is currently available in Dhaka. RCL believes that everyone should be able to
enjoy trouble-free access to the internet and the world of opportunities that it brings. The companys
aim is to make a magical internet experience available to everyone, every day, without exception. So
the company gathered a highly talented team right here in Bangladesh to build a company thats
determined to improve the internet experience for millions of people not just here, but ultimately all
over the world.

Bibliography

Financial Record Book of Radiant Communications Ltd (year 2008 to 2012).

www.radiantbd.com

33

Annexure

34

5 Years Financial Highlights

35

36

37