Financial Analysis of Taletalk Bangladesh Limited

Teletalk Bangladesh Limited is a public limited company, registered under the Registrar of
the Joint stock companies of Bangladesh.
1.1 Introduction:
Tele density of Bangladesh is still the lowest in South Asia, according to the statistics of the
InternationalTelecommunication Union (ITU). About 1.56% among 100 people has access to
telecom facility. It shows the high potential in the telecommunication sector in Bangladesh.
The existing telecommunication companies operating in Bangladesh have been enjoying
competitive advantage because of less global competition but this scenario is soon to be
changes as global giants are focusing on Bangladeshi markets with differentiated service and
competitive advantages
1.2Telecommunication Sector in Bangladesh:
Telecom is a fast changing dynamic sector. Continuous change in technologies and
opportunities created by such change and consequent impact on the customer/user
necessitates changes and adaptation of policies in the sector. Countries which respond timely
and appropriately to such change grow successfully whereas others who fail, lag behind,
remaining trapped in the vicious circle of poverty and under-development.
Bangladesh being a developing country is fast trying to catch up with the developed world,
and adapt its policies, in response to changing needs, opportunities and requirements in
different sectors, including the telecom sector.
Due to the inherent dynamism of the telecom sector and the speed with which the change is
taking place therein, there is a convergence of technologies, of knowledge, expertise,
experience, and of policies and strategies, to achieve defined policy objectives.
In order to materialize the strategic vision behind liberalization of the telecom sector, the
Bangladesh Govt. announced the national Telecom Policy 1998, with the main objective of
creation of an environment of competition by establishing market oriented regime,
appropriate sets of regulations, standards, procedures, conditions and investment climate so
that the users have multiple choices for access to networks and market of different services,
systems and carriers at a competitive and reasonable price. With a view to ensuring a level
playing field for all operators in multi-operator environment, the Government in pursuance of
the Bangladesh Telecom Act (BTA) 2001, established in July 2001, the Bangladesh Telecom
Regulatory Commission (BTRC) which started its operation from 31st January, 2002.
Previously, the Govt.’s Telecom Department BTTB, as per the Telegraph Act 1885, had the
exclusive privilege of acting both telecom operator and regulator until 1995.
Presently there are seventeen operators in Bangladesh. Among these six are mobile operators
and others are PSTN operators. The PSTN operators are Rankstel, Onetel, BanglaPhone,
Jubok Phone, Peoples Telecom, National Telecom, SATel etc The mobile operators are as
follows:
Citycell (Pacific Bangladesh Telecom Limited):
Robi:
Grameenphone:
Banglalink:
Teletalk (Teletalk Bangladesh Ltd)
Airtel:
1.3 Research Methodology
1.3.1 Origin of the Report:
Internship is a compulsory requirement for every student pursuing a MBA degree at the
Faculty of Business Administration, International Islamic University of Chittagong (Dhaka
Campus).
I have working Teletalk Bangladesh Ltd. so that I have work for my internee report to find
out existing problems on Teletalk. The topic was set after discussion with the internship
supervisor at IIUC. This internship report on ”Financial Analysis of Mobile phone industry in
Bangladesh ”A study of Teletalk Ltd is submitted on 6th June 2011.
1.3.2 Objectives of the Study:
The broad objective was defined at first. This broad objective was fragmented into some
smaller, clearer, specific objectives.
A) Broad Objective:
The broad objective of this study is to know about the Tele history of Bangladesh and analyze
the present Customer Satisfaction of Teletalk Bangladesh Limited. and how to improving it.
B) Specific objectives:
To focus on the competitive advantages enjoyed by the Teletalk Bangladesh Ltd. over its
competitors.
To understand the need gap of mobile services in different regions of Bangladesh
To know the preferences and expectations of the subscribers from a government owned
mobile service providers in Bangladesh
To know subscribers’ perception of the current mobile services offered by existing providers
in Bangladesh
To measure the sensitivity towards Tariff structure and acquisition cost of mobile
connections.
To measure the present and past financial condition of Teletalk and compare with each other.
Find the financial problem and the solution from it.
1.3.3 Data Collection:
In most of the cases the selected organizations and persons were visited and the
questionnaires were distributed to those organizations selected employees and subscribers for
collecting data. A week later they were contacted to collect the responses but not all
questionnaires were found completed. This part of the research was too difficult and
painstaking because it required frequent visits to the respondents to collect all the responses.
It took about 4 weeks to cover all the respondents.
1.3.3.1 Methodology:
At first I collect the primary and secondary data from various source of information. These
data will be following by several steps in given below:
A) Sampling:
Definition of the Population:
Two major types of population were targeted for the study. Subscribers of different mobile
operators are mainly the targeted population. There are many categories of mobile subscriber.
For example, businesspersons, corporate clients, small and medium sized enterprises,
employees, professionals, students all are Mobile subscriber. Therefore not all mobile
subscribers have been considered as the population of this study. Rather, only the educated
and organizations were considered as the population of the study.
B) Sampling Method:
Multistage random sampling was used for the selection of the sample. Since two types of
target market were considered, the sampling was done in two different phases.
Sampling of organizations
Sampling of mobile subscribers.
1.3.3.2 Primary Source:
Questionnaire survey: I survey on dealers, subscribers and retailers and business market. My
sample size is 40. But I consider the best 30 samples for implementing the information. It
helps me to collect the information about the SWOT analysis of Teletalk Bangladesh Ltd and
the market position of the company.
Interview collection from Management: I cover up the face-to-face and telephone interview
among the interviewee for getting the vital information.
Conversion to the others: I have done the conversation among each other in the group and
also discuses with my course instructor to institute the formation of report.
1.3.3.3 Secondary Study:
A monthly business magazine on Mobile phone technology named “GSM Technology”
published in the Bangladesh was extremely helpful for the study. This study could be more
informative if more issues of the magazine could be collected. The magazine focuses on the
Mobile phone technology all over the world. The prime secondary source was “Teletalk
website”, Goggle website, monthly magazine; some information was collected from the
Internet from various web sites.
1.4 Data Analysis:
No complex analysis was performed in this study because this very new topic needs a primary
research in our country. May be this primary study will then show the ways to go for in-depth
study which may require more complex analysis of data. Method of rank order was conducted
to find out the most important factors affecting the choice of Mobile Phone Company by
subscriber.
1.5 Limitations:
The major limitation of the report is that it is mostly based on secondary studies and partially
on primary analysis. Another limitation of the report is that it does not at the mobile industry
comparing other substitutes and present investment environment of the country.
As, I had more dependence on the secondary sources, so there might be some level of
inaccuracy with those collected information. Though, adequate verification and cross
checking was used, to minimize the error level.
Confidential information regarding past marketing and sales information was not accurately
obtained. Alike all other business holders also very conservative and strict in providing those
information. Still I had tried my best in obtaining that sensitive information, as much as
possible.
Many of the analysis on the obtained data are based upon my sole interpretation. This in result
might bring some biases, as lack of knowledge and depth of understanding might hinder me
to produce an absolute authentic and meaningful report.
Chapter-two
About Teletalk
Organization Overview
2.1 Background:
Teletalk Bangladesh Limited is a public limited company, registered under the Registrar of
the Joint stock companies of Bangladesh. Total shares owned by the Government of the
Peoples Republic of Bangladesh. We continue to grow and engage our customers through our
clear commitment to offering high quality products and services as well as leading customer
retention and loyalty programmers. Teletalk continues to be a part of the revolution that’s
connecting millions of Bangladeshi people and around the world.
Teletalk Bangladesh limited was established keeping a specific role in mind. Teletalk has
forged ahead and strengthened its path over the years and achieved some feats truly to be
proud of, as the only Bangladeshi mobile operator and the only operator with 100% native
technical and engineering human resource base, Teletalk thrives to become the true people’s
phone – “Amader Phone”.
Starting of mobile telephone service through a state-run entity was the cherished dream of all
people of Bangladesh. Bangladesh Government had honored the dream by including this issue
in its election pledge. Our government had taken several positive steps for making this dream
into a reality. Though money is very hard to come by in the national budget, our government
had allocated approximately Taka 800 (eight hundred) crore for the mobile telephone project.
We have also created the new company Teletalk Bangladesh Limited in 2004 to operate and
render its services to the people. (The present government is committed to reach mobile
telephony to the doorsteps of the common man at an affordable price. Teletalk, a state-run
public mobile-telephone company was launched with that objective in mind. The venture has
proved to be successful one, as the introduction of Teletalk has led to reduction of tariffs in
mobile telephone services rendered by other providers as well. Teletalk is the only state-run
mobile telephone
Service provider in the country. It has already completed one year of operation. In this year
Teletalk has a story of success as well as failure. On the other hand, there is still undesirable
weak or no network in some important places despite its best and sincere efforts.
People’s expectation from Teletalk is very high – people have shown tremendous enthusiasm
to have a connection of Teletalk mobile phone. Therefore, Teletalk must honor its customers
by improving its services day-by-day so that people may be proud of the organization. This
state-run company should however, be given enough authority and freedom to expand its
network and to provide more and more value added services to strengthen its position in the
market. This will not only create a source of revenue for the Government but also give rare
opportunity to the public to have better and quality services at cheaper rates.
Under these circumstances,the idea of establishing mobile telephone project (the project) in
the public sector was conceived. Little of the Project was 10 ten Lakh T&T mobile telephone
project (1st phase -2.5 lakh) at an estimated cost of tk 7.96 billion.
At present situation Teletalk subscribers 3million but active subscribers 2.6 million.
2.2 BTTB to execute the project :
The ECNEC of the Government of the peoples Republic of Bangladesh decided to from a
separate public limited Company for implementation and operation of the project. Then the
Bangladesh Telephone & Telegraph Board (BTTB), having longest experience of serving in
the telecom sector in Bangladesh, undertook initiatives to from the desired company in public
sector. In view of the fact that formation of a public limited company involves considerable
time and various relevant formalities, it was decided that BTTB should implement the project
and operation thereof would be carried out bu the desired company. Subsequently, the assets
out of this process would be taken over by the desired company to be formed.
2.3 Commercial Launch of Teletalk:
The long awaited launching of a mobile telecom network by a state-run enterprise had finally
materialized on 31 March 2005. It also fulfilled a cherished dream of people who
continuously demanded to the government for such an enterprise. The government started the
“Mobile Telephone Project” and Bangladesh Telegraph & Telephone Board (BTTB) was
entrusted with the responsibility for implementing the same. The Project work started in June
2004 and the network was soft launched on 29 December 2004. I am happy that BTTB had
been able to keep its promise and deliver in time.
Teletalk Bangladesh Ltd. was formed to operate the network installed by BTTB and it has
been successful in operating a standard network and give proper service to the people of
Bangladesh. Teletalk has introduced many attractive packages and all of them have been
welcomed by the market. From the very beginning of it’s launching,
Teletalk got huge popularity as it triggered the true competition in the market. I am happy to
know that within one year, Teletalk has covered 61 districts, 120 upazillas and most part of
the three major highways of the country. However, there is still a long way to pass for
improving its network.
People have high expectation from Teletalk. They expect continuous network coverage all
over the country, prompt customer service, and more value added services, data services of
high band-width etc. from Teletalk. Teletalk must honor its customers by improving its
services day-by-day so that people can realize that even in a competitive scenario, the public
sector organization can achieve remarkable development if they get opportunity.
2.4 Share Holder of Teletalk:
The Teletalk Ltd total number of share 6438661. The ministry of poat & Telecommunications
(Government) keep total 6438639 number of share, Other only22number of share by public
Government 100%

2.5 Teletalk Participation in the share Market.

After acquiring the assets and upon increasing the paid up capital by that extent, as the
Government. Decision the board of directors the company has approved to go for IPO@40as
%TBL of paid up capital i.e. 257 core )in the capital market. Such decision of the board has
also been communicated with the ministry of posts and Telecommunications for obtaining
further guidelines.
2.6 Corporate Social Responsibility:
TBL is a socially responsible company. Our mobile service are in many ways a social service
in itself; enable business improvements and new business development to participate in the
development of the country. Our Corporate Social Responsibility program covers many
aspects of life with special focus on health. Education and disaster management
CSR (Corporate Social Responsibility) During the financial year:
Teletalk believes in the empowerment of the people as well as the power inherent in all of us
to collectively enforce positive change in our own lives. As a company still in its early years,
Teletalk Bangladesh Limited still engaged itself in several CSR activities. Notables among
them during the financial year have been described below:
Teletalk has established a short code SMS helpline for children with disability/diseases
The “666 – Helpline for Children” was established with a view to create a specialized fund
for children with dire need of financial assistance. All SMS sent to this number will be
charged and the amount will be retained in a special fund. This fund will be used for
rehabilitation / treatment of the children
Children’s art initiative
Teletalk has created an unique outlet to acknowledge and encourage children’s art. With
association from “Talent Promotion Initiative” Teletalk has arranged a children’s art
competition, where children have engaged in a day long painting competition with
Bangladeshi seasonal themes.Teletalk Bangladesh Limited then published a special
“Billboard Calendar” based on selected pictures from the competitions.
Blanket Distribution Program
In Rangpur district Teletalk distributed 500 (Five Hundred) pieces of Blankets to the
distressed people in the winter through Anjuman Mofidul Islam.
Medical Treatment for Bushra
Teletalk initiated a helping program for Bushra – a patient of blood cancer. One can send
SMS for Bushra to help raise fund for medical treatment. For a girl of 3 year old needing bone
marrow transplantation, Teletalk’s unique way of extending help as well as including the
community at large was appreciated.
Blood Donation Program:
Teletalk has sponsored and directly participated in voluntary blood donation program. ORCA
(Old Rajshahi Cadet Association) had organized a blood donation program which was
sponsored by Teletalk.
2.7 Initial Capacity At the time of lunching:
With a capacity of 2.5 Lakh Mobile Phone, it is not possible to cover a network throughout
Bangladesh. According to scope of the project this capacity is limited to all metropolitan
cities, all district head quarters and three major highways. In spite of that, BTTB’s Mobile
Project will cover about 275 Upazillas and growth centers.
Government decision to own a Mobile Company was to ensure fair competition between
public and private companies. After the emergence of Teletalk Bangladesh Limited, rates &
tariffs in the market have been reduced tremendously. Moreover all the mobile operators are
now continuously trying to provide more value added quality services with cheaper rate. Only
fair competition can ensure better service and Teletalk is a party to it.
2.8 Incorporation of Teletalk:
With the view described above, Teletalk Bangladesh Limited (the “Company”), being the
only government sponsored mobile telephone company in country, was incorporated on 26
December, 2004 as a public limited company under the Companies Act, 1994 with an
authorized capital of Tk.20,000,000,000. On the same day the Company obtained Certificate
of Commencement of Business.
2.9 The Objectives of Teletalk:
1. To provide mobile telephone service to the people from the public sector
2. To ensure fair competition between public and private sectors and thereby to safeguard
public interest
3. To meet a portion of unmitigated high demand of mobile telephone.
4. To create a new source of revenue for the government.
2.10 Mission & Vision:
To innovate and constantly find new ways to enhance our services to our customer’s current
needs and desires for the future. Our vision is to know our customers and meet their needs
better than any one else.
2.11 Operating License:
The Company has obtained the Cellular Mobile Phone Operator License from Bangladesh
Telecom Regulatory Commission (“BTRC”) on 1 September, 2004 for a period of 15 years.
Initially the License was issued in the name of BTTB, and subsequently upon application,
BTRC has changed the name of the operator as Teletalk Bangladesh Ltd. in place of BTTB.
The Company has to operate within the GSM 900 and GSM 1800 bands as per slots allocated
by BTRC.
2.12 Capital Structure and Acquisition of Assets:
The Company was incorporated with an authorized capital to Tk.2000 crore divided into 2
crore ordinary shares of Tk.1000/- each out of which the paid up capital was Tk.22000/-
dividend into 22 ordinary shares of TK 1000/- each. Since the Company inherited the BTTB
Project of 10 (ten) Lakh T&T Mobile Telephone Project (1st Phase-2.5 Lakh), the relevant
equipment and infrastructures necessarily were in the name of erstwhile BTTB (now BTCL).
Upon approval of government, the Company on 21 May, 2008, by executing a Vendors’
Agreement with the Ministry of Posts and Telecommunications, has acquired all the
equipment and infrastructures valuing 6,438,639,000/-,thereby transferring the title of the
relevant assets in its own name. In consideration 6,438,639 fully paid ordinary shares of
Tk.1000/- each have been issued in the name of the Ministry of Posts and
Telecommunications.
2.13 Teletalk’s Network Expansion Projects:
Teletalk initially started with the BTTB’s mobile telephone Project of 2.5 lac capacity. After
implementation of the project by BTTB and operation of the same, the Board of Directors felt
it necessary that in odder to thrive tn the stiff competitive market, Teletalk has to improve its
services and expand its network on a continuous basis. With this end in view, the Board of
Directors took up its expansion projects one after another.
The first phase of the network expansion project was approved by the Board in June, 2006
with a cost of Tk. 200 crore. The project was destined to increase the subscribers base by 8
lac. The entire project has been implemented by huynds from its own resources.
The Board of Directors has approved another expansion project of Tk.533 corr in July, 2008.
This project has been targeted to increase its subscriber’s capacity by further 18 lac in its net.
The project although has commenced on self-financing stages. Necessary L/Cs has already
been established to import capital machineries.
With technological development in the telecom sector, the Board of Directors of the
Company has been thinking to implement 3G technology and expansion of 2.5G network
simultaneously. The DPP of the Project has already been submitted with the government of
Bangladesh for consideration. The cost of the project has been estimated a more than
Tk.2,000 crore. A long term loan with simple terms and conditions is expected from the
Chinese government of Bangladesh has been under active consideration of the appropriate
authorities. The destined project, if implemented, would add further 5 lac subscribers in the
network.
After acquiring the assets and upon increasing the paid up capital by that extent, the Board of
Directors of the Company has, on principle, agreed to off-load at least 25% of its shares in the
capital market. Such decision of the Board has also been communicated with the Ministry of
Posts and Telecommunications for obtaining further guidelines.
Operational activities and network expansion
The second phase of network expansion programme at a project cost of equivalent to
taka5,330 million(including a foreign currency component equivalent to TK,2,730
million)financed from its own resources and partially by local banks has since taken off to
yield a further capacity increase of 1.8 million of subscribers. At the initial stage, the pace of
activities was somehow slow due to the Bangladesh banks regulatory measure; but with
timely solution of the problem, that complicacy has been successfully overcome. However,
after completion of the ongoing expansion programme, the total number of subscribers is
expected 3.00 million.
Teletalk Bangladesh Limited has continually expanded its network, to better accommodate its
growing customer base as well as to keep the promise of providing better service. As of now,
Teletalk has already established its network foothold in 64 Districts, 402 Upazilas, and most
of the highways. Teletalk is continuing its network expansion to reach more corners of
Bangladesh.
3G Project:
Considering the advent modern telecom service for the subscribers, Teletalk has planned to
launch another project named Introduction of 3G Technology and Expansion of 2.5G
network. The implementations of the projects is proposed as January 2011 10 December 2012
and the project cost is BDT 19009.9 Millions. BDT 4239.9 Millions will be provided by
Teletalk and BDT 1447 Millions (USD211 million) will be financed by china EXIM Bank as
project aid. After the implementation of the project, Teletalk will able to cater additional 6.5
million new subscribers of which 4.00 million subscribers will be for 2.5G and 1.5 million for
3G subscriber. In other way, this project will increase the number of base stations by 1960 of
2.5G BTS and will introduce 600nos of 3G NodeB. Moreover the project will bring a set of
modern revenue generating services such Mobile TV, Mobile Broadband and etc. In fiscal
year of 2009-10, significant progresses on the
approval of GoB, Feasibility study by Chain EXIM Bank and project planning have been
done.After launching of the project Teletalk will able to play a significant role in the building
Digital Bangladesh through e-education, e-Public health, e-Commerce,e-Government, High
speed communication network services.
2.14 Teletalk’s Services:
The Company has country-wide strong telecom network covering 61 district headquarters,
major upazillas and highways. It has 21 customer care centers throughout the country.
Teletalk offers a wide range of services to its customers. Teletalk has different packages of
like GPRS, Push-Pull services, SMS, Telecharge, Post-paid connection, Pre-paid connections
etc. Like other operators, Teletalk has different value added services like, Color Ring Back
Tone (CRBT), Pre-paid Bonus, E-Pay System.
Different Packages of Teletalk:
Teletalk offers a wide range of services to its customers. Following are an outline of the
services presently available with Teletalk.
GPRS:
Teletalk offers unlimited internet browsing facility for TK.800 per month or only 2 paisa per
minute on actual usage basis for both post-paid and subscribers. One can use this facility by
using data-cable in computer also. Handsets with GPRS option enable this facility. Through
Teletalk GPRS, the subscribers can use the facilities like browsing, email, internet chatting,
data transfer etc.
Push-pull services:
Like ordinary SMS, one can receive answer to a question s/he asks. By using this push-pull
service, one can have the latest updates of important events like cricket matches. Besides,
other important information like weather forecast, prayer time, quotes, horoscopes and
especially sehri-iftar timing during ramadhan are also available.
SMS:
An SMS of 160 characters each for TK.1.00 only available both in English and Bangla.
ISD and EISD:
Every subscriber of Teletalk gets the opportunity of Economy ISD / (EISD) to more than 50
countries @ TK.7.50 per minute. Under this facility, the subscriber should dial 012 (instead of
dialing access code 00), then country code, then area code and finally the desired number.
Telecharge:
Teletalk, very recently, has introduced ‘Electronic Recharge’ system termed as ‘Telecharge’.
This system enables the subscribers to recharge their accounts by any denominations within
the range from TK.10 to TK.5,000. The subscriber is not required to buy any scratch cards for
such recharge.
Variety of connections:
Like all other mobile operators, Teletalk’s connections are broadly divided into post-paid,
pre-paid and PCO (public cal office) connections. Varieties in post-paid and pre-paid SIMs
are briefed under:
Post-paid:
Post-paid package has been designed for high user group, the entire country being considered
as a single zone. The subscribers can select three numbers that provide them reduced tariff
round the clock.
Rajanigondha:
At a connection fee of TK.950 only, it enables the user to have the facility of 1 second pulse
and 3 fnf connectivity with no monthly line rent. Minimum monthly bill is TK.500 only but
no security deposit.
Shapla:
With connection fee of TK.590 only, Shapla provides lowest call charge of TK.40 at all time
to any operator. This has additional advantage of migration from any post-paid connection.
This connection needs minimum monthly bill of TK.1,000 with security deposit of TK.1,500
only.
Pre-paid Standard:
This has no line rent. The whole country is a single zone. This package also offers reduced
tariff of two Teletalk numbers or one Teletalk and one T& T number round the clock. The
first pulse is 30 second and the subsequent pulses are of 15 seconds.
Padma:
This package had been designed for subscribers living outside the metropolitan areas of
Dhaka, Narayangonj and Gazipur. Subscribers however can use this SIM with the
metropolitan areas, but need to pay some additional charges. Connection fee is cheaper than
other packages. Scratch cards validity is life-time and other facilities are same as of other pre-
paid packages. All the connections of Teletalk provide free incoming facility. In
addition to above, few more value added services, as described hereunder, are in the pipeline
and expected to be operative very soon:
Colour Ring Back Tone: The subscribers will be able to define by themselves the ring back
tone, if desired, to be heard by a caller.
Pre paid Bonus: Pre paid subscribers will be given automated bonus package in terms of their
volume of calls made from Teletalk.
E-Pay system: By using this system, not only the subscribers of the Company, any person will
be able to pay bill for his/her utility services through nominated agents of the Company
without hassle of going to banks.
Missed call Alerts: The subscribers, even if disconnected from network, will be informed (on
re-connection) of all the calls made to his phone during the period of disconnection.
2.15 Organgram of Teletalk:
The company has a board of Directors consisting of Chairman and Managing Director and
Govt. High officials. Then One Board Secretary performs task as a representative of the
Board of Directors. There are seven General Managers are responsible for different
Departments. All GMs directly report to MD. Every GM is supported by Deputy General
Manager, Manager, Deputy Manager and Assistant Managers.
Figure: 1 Organogram
The diagram shown above is up to manager level of each department. There are some non-
managerial posts such as Junior Officers and Associates; those mainly perform at the
execution level of all operations.
2.16 Functions of Each Department:
Marketing Department
System Engineering
Operation
IT & Billing
Procurement
External Coordination
Customer Care
Finance
Human Resource
2.16.1 Marketing Department:
Marketing is one of the leading departments in any organization. Teletalk’s Marketing
department is not a exception of that. Marketing department of Teletalk consists of several
wings. Some major wings of Marketing department with some of its functionalities are
described below:
Value Added Services (VAS):
Teletalk provides various kinds of value added services. Some popular services of this
category are Friends and Family (FnF), Push-Pull, Voice mail service, Bangla SMS,
International SMS, Internet SMS etc Some VAS services are developed by this wing and
some are procured from content providers. This wing of MKT is fully responsible for and
initiating demandable services and selecting appropriate content providers for those.
1. Tele charge:
Tele Charge means a customer pays his bills directly from any stalls where the shopkeeper
will receive money in favour of Teletalk and send SMS to Tele Charge system mentioning the
paid amount of subscriber. Within a few minutes the subscriber’s account is recharged. This
wing ensures the successful operation of this service.
2. International Roaming:
One of the major services of Teletalk is International Roaming. This wing of Marketing takes
initiatives to make contract with operators of other countries. After successful testing between
Teletalk network and the network of other parties, new roaming partner comes on live.
3. Sales & Distribution:
Teletalk mainly sales SIM cards, Scratch cards to its dealers and customer care centers. And
there many items which needs to distribute among the dealers. For example- when Teletalk
launches new packages, some sorts posters are needed to distribute among the dealers.
4. Dealer Management:
Teletalk does business with accumulating many dealers to distribute its SIM cards and many
items. In reply dealer gets a commission on selling amount. To control, monitor and their
commission processing this wing is busy all day.
5. Market Research & Development:
Present market condition, its trend, prediction & forecast, analysis of existing packages are
the main working arena of this wing.
6. Media & Advertisement:
Advertisements on print media an electronic media are provided from this wing of marketing
department. The themes of lucrative ads on electronic media some times developed from this
department and finally implemented from out sourcing. And advertisements on print media
are completely prepared by the skill individuals of this wing.
7. Corporate:
Corporate subscribers are the potential customers for any mobile company. This wing of
MKT always tries to enhance this type of subscribers and ensures better services to them.
8. Marketing System of Teletalk Bangladesh Ltd:
Product
Price
Promotion
Place
8.1 Service:
Teletalk is a service based industry. So it always tries to maintain the quality of the service
when it serves to the customers. And teletalk has done the job by offering different type of
package.
8.2 Price:
Pricing is one of the marketing mix tools that a company uses to achieve it marketing
objectives. Teletalk decides its service pricing on the basis of cost based pricing. They always
think about the consumer purchase capability. That’s why they try to fix a reasonable price
for the consumer.
8.3 Promotion:
Promotion is one of the marketing tools that a company uses to achieve its marketing
objectives. Each promotion tools has unique characteristics to improve their total sales.
Teletalk are trying to do more promotional activities for their service. Teletalk Marketing
promotion can be classified in several steps:
8.4 Advertising:
Teletalk first promotional activity is advertising. They know that advertising is the way where
massage could be delivered to the consumers mind. And this Massage can be delivered to the
consumer by the sound, music, choreography, lighting and performer appearance.
Advertisement massage must be believable, meaningful and distinctive. Advertising can be
used to buildup a long-term image for a product and also can trigger quick sales. So that they
invest a huge amount of money for advertise to create a brand loyal customer.
Advertising media:
Newspaper
Web site
Magazine
TV Chanel
8.5 Personal Selling
Personal presentation by the firm sales force for the purpose of making sales and building
customer relationship. Teletalk uses personal selling in different stages of marketing and
distribution. Company distributes their product (SIM, Scratch, Cash card) among the
wholesalers and retailers by maintaining the excellent relationship.
8.6 Sales Promotion:
Sales promotion includes a wide way of tools that can attract consumer’s 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.
8.7 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. Teletalk
arrange meeting always with the wholesalers and retailer for maintaining a good relationship
with them.
8.8 Place:
Place is very much important for product sale. Place depends on good location, transportation
facility, availability, channels etc. and teletalk select a right place named Banani, from this
place people can easily buy the product and there transportation system is very easy and
available.
8.9 Marketing System:
Product
Price
Promotion
Place
8.10 Service:
Teletalk is a service based industry. So it always tries to maintain the quality of the service
when it serves to the customers. And teletalk has done the job by offering different type of
package.
8.11 Price:
Pricing is one of the marketing mix tools that a company uses to achieve it marketing
objectives. Teletalk decides its service pricing on the basis of cost based pricing. They always
think about the consumer purchase capability. That’s why they try to fix a reasonable price
for the consumer.
8.12 Promotion:
Promotion is one of the marketing tools that a company uses to achieve its marketing
objectives. Each promotion tools has unique characteristics to improve their total sales.
Teletalk are trying to do more promotional activities for their service. Teletalk Marketing
promotion can be classified in several steps:
8.13 Advertising:
Teletalk first promotional activity is advertising. They know that advertising is the way where
massage could be delivered to the consumers mind. And this Massage can be delivered to the
consumer by the sound, music, choreography, lighting and performer appearance.
Advertisement massage must be believable, meaningful and distinctive. Advertising can be
used to buildup a long-term image for a product and also can trigger quick sales. So that they
invest a huge amount of money for advertise to create a brand loyal customer.
Advertising media:
Newspaper
Web site
Magazine
TV Channel
8.14 Personal Selling:
Personal presentation by the firm sales force for the purpose of making sales and building
customer relationship. Teletalk uses personal selling in different stages of marketing and
distribution. Company distributes their product (SIM, Scratch, Cash card) among the
wholesalers and retailers by maintaining the excellent relationship.
8.16 Sales Promotion:
Sales promotion includes a wide way of tools that can attract consumer’s 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.
8.17 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. Teletalk
arrange meeting always with the wholesalers and retailer for maintaining a good relationship
with them.
8.18 Place:
Place is very much important for product sale. Place depends on good location, transportation
facility, availability, channels etc. and teletalk select a right place named Banani, from this
place people can easily buy the product and there transportation system is very easy and
available.
8.19 SIM sale in Different Customer Care Point:
Beside these, as a Government owned companies there are so many problems in Teletalk they
are:
* Some Value-Added Services are not successful
* Poor Brand Image
* Not so good relations with media & channel partners
* Poor publications
2.15.2 System Engineering:
There are two sections in System Engineering Department. These are given below.
1. Planning:
Planning Section is responsible for BTS link, Backbone, any necessary installation of
specialized telecom hardware like Soft-switch, MSC, Intelligent Network etc and overall
network planning. This department also provides any new concept to update the existing
network. At present Teletalk has the following major network infrastructure.
Figure: 2 Teletalk Network Diagram
2.Project:
This wing has some major sub sections according to the classifications of jobs. These are as
follows:
Civil: This wing performs the design works for tower of BTS.
Earthling: In some cases BTS-tower requires some sorts of earting operation to test the
feasibility of tower construction prior actual implementation.
DC-Power: In the new site of network, the supply of DC-power is generated and finally tested
prior implementation.
Transmission: This wing is responsible to tie the new site under the existing network using
the radio link. It consists of three antenna and two microwave links. Three antenna constitute
three existing cells and two microwave link connects the new site with the nearest site and
BSS.
Installation & Commissioning: this wing receives network hardware from vendor companies
and performs works for installation of new sites. When planning has been made then it is sent
to the Procurement department to purchase the necessary product for the Project
implementation.
2.16.3 Operations:
This department consists of several wings. Along with the description of different wings of
this department a complete network diagram is presented here.
1. Base Station Subsystem (BSS)
This is the largest wing among all the section of this department. Many officers are needed to
regulate the necessary activities of this wing. Whenever a new site goes on air, it
automatically comes under the supervision of this department. It has 24-hours moving team,
whose responsibility is to ensure the recovery of any down BTS within the quickest possible
time. Besides this section also performs other activities like Optimization of Network, Drive
Test, Neighboring Cell frequency Test, Carrier to interference Level and Re commissioning
2. Transmission
This section is also classified in to two categories according to the scope of the job. These are
described below:
BSS-Transmission: This wing simply ensures the connectivity from remote tower to BSS.
Back Bone Transmission: It establishes the optical fiber connectivity across the Teletalk
network element.
3. Soft-switch
Teletalk has two soft-switches, important network element for mobile connectivity. This wing
mainly performs all operational and maintenance activities of these elements.
4. Central zone
This wing is actually concerned about the network element, Intelligent Network (IN). IN can
be thought of as the billing system for pre-paid users.
5. Other zone
MSC, the switches, are the concerning part of this wing. Some highly skilled and trained
employees of Teletalk are responsible for its operational and maintenance activities.
2.16.4 IT & Billing:
IT & Billing combines the Post-paid Billing section and the Information Technology part of
Teletalk. So there are two streams of workflow exists in this department.
 Billing Section:
The workflow in this section is also sub-divided into four categories. These are given below:
1. Issuing Invoices, Providing benefits and solving problems of Post-Paid users:
This part involves the activities of New Subscribers activation, ensuring accurate charging,
accuracy of all payment records and in-time delivery of monthly invoices to the customers.
This part also includes the task of ensuring the benefits and services received by Post-paid
subscribers.
2. International Roaming:
This is one of the important functions provided by Billing. Activation of Roaming service,
ensuring correct charging of in-roamer and out-roamer and performing test for selection of
new roaming partners are some major task of this wing.
3. Inter-Operator Billing:
This function is to revenue sharing among all other telecom operators in Bangladesh. Teletalk
Billing system has a wing of Partner relationship management where this task is executed.
Here invoices are prepared for both the receivable and payable. Other operators also prepare
this type of invoices and send those to Teletalk. Then reconciliation has been performed and
actual receivables and payable amounts are determined.
4. New Post-Paid Package implementation and modification:
Post-paid packages are the non-tangible products of Mobile Company. Through this lots of
attractive features and benefits are combined in order to pursue the mass people to use their
mobile services. It’s a very common scenario for a mobile company to change their packages
and benefits within very short time. This part of billing section performs this sort of changes
in Post-paid packages of Teletalk.
 IT:
The functions of this wing are divided into six categories.
1. Extension and Maintenance of Computer Network
This is the most important function of IT. Any extensions of existing network among all the
sites of Teletalk are performed with the involvement of the officials of this section.
2. IP Phone maintenance
All the sites of Teletalk are under the network of IP-PBX system. IT has the full responsibility
to implement and maintenance activities of IP Phone system.
3. Maintaining the inventory of all Hardware necessary for individual employee
In Teletalk there are several hundreds of PCs, laptops; printers are present among all the
departments. IT has the records of all hardware and maintains a inventory of it. Any new
requirement from other department is come first to IT, then accumulating all requirements IT
collects quotations from different sellers and mentioning the suitable seller IT sends request to
approval authority for necessary fund allocation:
4. Troubleshooting of computer peripherals
IT section has some skilled employees who solve the day-to-day problems of computer
peripherals used in all departments. Another inventory has been maintained for this purpose.
5. Office automation
This is another on-demand function of IT section. Teletalk owns the office automation
software such as Enterprise Resource Planning(ERP). IT has the sole responsibility to familiar
this product among the employees through proper training and must ensure the effective use
of this software. The time-to-time maintenance is also task of IT.
6. Development wing
IT section also performs some development works such as the website of Teletalk, Automated
cheque printing software, commission calculation of dealers are some examples of
development works.
2.16.5 Procurement:
Teletalk must follow the written PPT (Procurement Policies of Teletalk) to purchase any
thing. Depending on the situation, Teletalk uses various kinds of procurement method, such
as common, special, limited and restricted categories of tenders, Direct Quotation Method
(DQM), Spot Quotaion Method (SQM), Purchase from Open Market (POM) etc. this
department also determines the policies of frame work i,e way of receiving goods either
within three months, six months or in a year. Based on the source of procurement, it has two
wings.
1. Local Procurement:
Teletalk needs to procure many items from the local market such as AC, generators, Laptops,
PCs, Servers, tower construction equipments etc.
2. Foreign Procurement:
All special categories of telecom hardware equipments are bought from foreign countries. For
example, MSC, CRBT Intelligent Network (IN), Billing Servers, Soft-switch etc. Except that
Teletalk also purchase SIM cards and sometime scratch cards from foreign countries.
2.16.6 External Co-ordination:
This department mainly exchanges information with the outsiders. There are two wings
through the department is functioning its activities.
1. EC
Some regular reports are sent to Bangladesh Telecommunication Regulatory Commission
(BTRC). For example total number of subscribers, total number of BTS etc. Since Teletalk
uses frequencies assigned by BTRC, the charge known as Spectrum Charge are paid through
this department. Further more the license fee is also paid through this department according to
the instruction of BTRC. These are all about the out flow of information from Teletalk. On
the other hand, if BTRC proposes new rules and regulations, the Teletalk is informed through
this department. Except that the guidelines of designing service packages are also received
from BTRC. Sometimes this wing performs some promotional activities or deciding to be
sponsor of any welfare activities.
2. Inter Operator Relations:
At present an association has been formed among the mobile operators of Bangladesh, called
AMTOB (Association of Mobile Telecom Operation in Bangladesh). Being a member of the
association, this wing provides all sorts of reports and transmits its comments on every
conflicting issue on behalf of Teletalk.
2.16.7 Customer Care:
Teletalk is a service company and obviously the customers are the life of Teletalk.
Customers’ satisfaction is the earnest goal of this company. And this department acts as a
medium to communicate directly with customers. So, from the organizational point of view
customer care contains huge significance among all the departments. In all divisional districts
Teletalk has set up customer care centers. At present there are eighteen customer care centers
in all over Bangladesh.
Station Address Help Line

Dhaka Head Office Cell: 015 5015 7750, 015 5015

And 7760
Banani Customer Care Center Fax: 02-8857592
House # 41, Road # 27, Block # A
Banani, Dhaka.

Uttara Customer Care Center Cell: 015 5015 0061

AB Super Market  Fax: 02-8955007
(2nd floor, west side), Road # 2, Sector
# 3,
Uttara, Dhaka.

Dhanmondi Customer Care Center PSTN: 02-9670811

Dr. Refatullah’s Happy Arcade (2nd Cell: 015 5015 0073Fax: 02-
 floor) 9673636
House # 3, Road # 3,
Dhanmondi, Dhaka.

Palton Customer Care Center PSTN: 02-9561111

Surma Tower (1st Floor) Cell: 015 5015 0074Fax: 02-
59/2 Purana Palton, Dhaka 9561188

Mirpur Customer Care Center Cell: 015 5015 0098

Akhanda Tower (Press Market) Block-
Kha,
Road-1, Plot-12, Section-6, Mirpur-10,
Senpara Parbota, Dhaka.

Farmgate Customer Care Center Cell: 015 5015 0060

Boro Bazar(2nd floor), Shopping
Complex,
104, Green Road, Farmgate, Tejgaon,
Dhaka-1215.

Tongi Customer Care Center Cell: 015 5015 7780

TSS Bhavon, Tongi. Fax: 02-9816799

Chittagong Agrabad Customer Care Center PSTN: 031-2516800

C & F Tower (2nd Floor) Cell: 0155 015 0078Fax: 031-
1222, Shaikh Mujib Road, 2516802
Agrabad, Chittagong.

Dampara Customer Care Center PSTN: 031-2857866

Idris Center (1st floor) Cell: 0155 015 0079, 0155
444 M. M. Ali Road 0150080Fax: 031-2857899
Dampara Chittagong.

Khulna Teletalk Customer Care Center PSTN: 041-733946, 041-733947

Amin Plaza (2nd Floor) Cell: 015 5015 0065Fax: 041-
68/B, K D A, Avenue 733948
Khulna.

Rajshahi Teletalk Customer Care Center PSTN: 0721-812323, 0721-

 282, Ahamad Plaza (2nd Floor) 812324
Alupotti, Ghoramara, Rajshahi. Cell: 015 5015 0063Fax: 0721-
812333

Sylhet Teletalk Customer Care Center PSTN: 0821-724455, 0821-

R, N, Tower (1st Floor) 813033
Chowhatta, Sylhet Cell: 015 5015 0067Fax: 0821-
715500

Bogra Teletalk Customer Care Center PSTN: 051-60000

Islamic Studies Group Bhaban (1st Cell: 015 5015 0064Fax: 051-
Floor) 60499
Station Road, Satmatha, Bogra.

Barisal Teletalk Customer Care Center PSTN: 0431-2176011

01 no, East Bagura Road, (Ground floor Cell: 015 5015 0066Fax: 0431-
of Hotel Ababil), Barisal. 2176012

Comilla Teletalk Customer Care Center PSTN: 081-71111

325/365 Jhawtola (1st Floor) Cell: 015 5015 0068Fax: 081-
Comilla. 71114

Mymensingh Teletalk Customer Care Center PSTN: 091-66300

3, Ganginarpar (1st Floor) Cell: 015 5015 0062Fax: 091-
Mymensingh. 65300

Faridpur Teletalk Customer Care Center PSTN: 0631-66670

Bahadur Market Cell: 015 5015 0075Fax: 0631-
14/111, Hazratala Mohalla, 66673
Faridpur Sadar, Goalchamat, Faridpur.

Dinajpur Teletalk Customer Care Center Cell: 0155 015 7782

Alam Corporation, (1st Floor), Fax: 0531-52680
Jail Road, Munshipara, Dinajpur.

Bandarban Teletalk Customer Care Center PSTN: 036-163422

Nuel Plaza (1st floor), Jahangir Bhaban, Cell: 0155 015 0096Fax: 0361-
K B Road, (In front of Bandarban Sadar 63588
Thana), Bandarban.
Khagrachori Teletalk Customer Care Center PSTN: 037-161145
Court Road, Diginala Road, Cell: 0155 015 0081
Khagrachori. Fax: 0371-61149

Rangamati Teletalk Customer Care Center PSTN: 0351-71195

Paurashaba Market.  Rangamati. Cell: 0155 015 0095
Fax: 0351-71351

Jessore Teletalk Customer Care Center Cell: 015 5015 7781

4, BK Road, Bejpara, Jessore. Fax: 0421-63555

Kushtia Teletalk Customer Care Center PSTN: 071-71009

Shatabdi Bhaban Market (2nd floor), Cell: 015 5015 0097
92, N.S Road, Thana Traffiq more,
Kushtia.

Cox’s Bazar Teletalk Customer Care Center Cell: 015 5015 0059

BTCL Bhavan, Motel Road , Cox’s
Bazar.
2.16.8 Finance:
1. Finance:
This wing performs the most important task for Teletalk like fund management where the
source of funds and its allocations are managed. Since Teletalk involves lots of foreign
purchase, LC open and its accounts maintaining is also a part of work of this department. Vat
calculation and its proper transformation from one end to other end is also ensured from this
department.
2. Budget:
The Finance section performs various financial activities such as yearly budget formation,
Monthly Inter Operator Billing, Revenue Calculation from different sources on daily basis,
Performing cross checking of bill collection with Billing department, monitoring bank
balance before and after all sorts of operation, dispute analysis on operator basis and on
source basis.
3. Accounts:
This section does Accounts design, Inventory maintenance design, A/C Transaction, Annually
financial statement based on IAS-International Accounting Standard, MIS report. VAT at
time of Procurement and payment to contractors to ensure the VAT and Income Tax rule and
regulations, maintenance of bank Account maintenance and to assist to external auditor.
2.16.9 Human Resource:
Human Resource Department plays a vital role in the overall process of the company. With
the passage of time, the importance of HR-department is drawing significances, since Teletalk
expanses from its initial stage and many people are involving with this advancing journey of
Teletalk. At present more than three hundreds of employees are working in Teletalk.
Considering the present job responsibilities, HR is sub-divided into several wings.
1. Personnel Management
This wing performs the following important activities such as Human resource planning,
Recruitment, Grievances handling, compensation management, posting etc
2. Administration
This wing works for leave management, medical & transport facilities, welfare allowances
and every legal affairs of the company.
3. Human Resource Development
This wing is responsible for development of employees through appropriate training programs
and motivation of employees through time based evaluation and appraisal
Chapter-Three
SWOT Analysis
3.1 SWOT Analysis:
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying theinternal and
external factors that are favorable and unfavorable to achieving that objective. The technique
is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and
1970s using data from Fortune 500 companies. The overall aspects of SWOT analysis can be
easily described with following diagram:
Figure: 1 Definition of SWOT
3.1.1Strength:
 Teletalk is the only one state owned mobile company of Bangladesh. Being a part of
Government administration, Teletalk enjoys lots of administrative and business benefits. For
example: The government of Bangladesh has given license of 2.5G & 3G network to some of
the existing mobile operators(The implementation of the project is proposed as january 2011
to December 2012). Teletalk owns this license only because it’s state owned company.
 Among all the operators Teletalk was given the privileges to publish S.S.C./ H.S.C., Degree
results. Just because of the initiatives of the Government, Teletalk enjoys this privilege.
 Sometimes Teletalk runs with some sorts of financial crisis. At that moment Governments
can arrange or manage loans to overcome the crisis.
 Along with the additional privileges, Teletalk owns a highly qualified bunch of
professionals whose dedication and hard work have great impacts on the achievements of
Teletalk.
3.1.2Weakness:
 The major weakness of Teletalk is the slowness of the decision making process. As a result
it sometimes compels to face some unwanted competition among other companies and
sometimes it even incurs losses. Since telecom is one of the growing sectors in Bangladesh,
dynamic decisions should be taken at proper time.
 Being a mobile company, the success depends on the expansion of network as much as
possible and effective marketing with required customer cares. So, the co-ordination among
those important fields is the most important factor to sustain in the competitive market.
Teletalk is lagging this sort of co-ordination from the standard mark.
 To meet the existing demands of cellular phones and to provide maximum service Teletalk
needs more individuals who will work in line with the existing dedicated members. The total
manpower is quite below to the minimum requirement
..
3.1.3Opportunities:
 People of Bangladesh naturally like to use the country products very much and they are
inspired to use Teletalk’s service with true patriotic feelings. Getting consistent with this
emotion, Teletalk represents itself as “Amader Phone” and says to mass: “Keep Country’s
Money within the Country”. If Teletalk provides similar services like other foreign
companies, obviously people will welcome Teletalk with great care.
 Teletalk has become profitable government companies because of true dedication and day-
night efforts of its all staffs who are highly qualified and experienced. If their contributions
are evaluated by the Teletalk management with care and incentives, bonuses, performance
appraisals can be provided with a timely fashion, existing employees will be highly motivated
to create any radical advancement of Teletalk.
3.1.4 Threats:
 Although Teletalk is a state owned mobile company, it contains a very few market share.
The maximum market shares are occupied by Grameen Phone, Banglalink, Robi and other
foreign companies. Teletalk faces tremendous competition in the mobile industries because of
these highly equipped foreign organizations. If one company lessens the call rate, the other
companies also offer lesser rate.
 Similar Service are offered by other Telecom nation Company as like as GP, Robi,
Banglalink, Airtel
Since Teletalk is a governments’ company, government can interrupt the usual decision flow
of the organization, which in turn may cause unnecessary delay in activities. So, sometimes
the government itself acts as threat.
Chapter-Four 
 Topic Analysis & Description
 
4.0 Different measures for improving Finance of Teletalk
 
4.1 Brief Description of Teletalk Bangladesh Ltd:
Tele density of Bangladesh is still the lowest in South Asia. The Bangladeshi
telecommunication industry has been now facing global competition as different multi-
national telecommunication companies have been trying to penetrating into this market.
Hence, the existing phone companies have been loosing their competitiveness and market-
shares. To retain market-share, existing local companies have been pursuing to fulfill the
need gap of phone services in different regions of Bangladesh.
4.1 Mission & Vision:
To innovate and constantly find new ways to enhance our services to our customer’s
current needs and desires for the future. Our vision is to know our customers and meet
their needs better than any one else.
4.1 Objectives:
ü  To provide mobile telephone service to the people from the public sector
ü  To ensure fair competition between public and private sectors and thereby to   safeguard
public interest
ü  To meet a portion of unmitigated high demand of mobile telephone.
ü  To create a new source of revenue for the government.
 4.1.1 Privatization & Regulatory structure of Telecommunication Services:
The Telecom sector of the country has been liberalized for private investment. Bangladesh
T&T Board provides all types of telecommunication services in urban and rural areas
while the mobile, paging and radio trunking services are offered by private operators.
 Private operators were also given license to install and operate digital exchanges in rural
areas and they would install telephone exchanges in phases. Table-1 shows the list of the
private operators.
 
Table 1 – Private Telecom Operators in Bangladesh
SL Name of the Operators

1 Pacific Bangladesh Telecom. Limited (PBTL)

2 Bangladesh Telecom (Pvt) Limited (BTL)

3 Bangladesh Rural Telecom Authority (BRTA)

4 Seba Telecom (Pvt.) Ltd. (Recently acquired by Orascom)

5 Telecom Malaysia International (BD) Ltd. (TMIB)

6 Grameen Phone (GP)

7 Orascom Telecommunication

8 Teletalk Bangladesh Ltd. (TBL)

9 Warid Telecom

4.1.2 Scope to be explored:

m-Governance is derived from e-governance refers to government’s use of information
and communication technology to exchange information and services with citizens,
businesses, and other arms of government. Teletalk is ready to provide with the help of
third party software, mobile interactivity for the citizens of Bangladesh with m-
Governance. This may includes, but not limited to
 
ü  Mobile based Live Citizen Reporting Solution
ü  Mobile User Info bank (Database of Mobile Users of Bangladesh)
ü  Agriculture information services for the farmers and also for the end users, like product
price in different parts of the country.
ü  Product ID for all consumer products/ Organization.
ü  Interactivity between Government and the Citizens.
4.1.3 Reasons behind Using Pre-paid Phones:
 Most of the mobile users have been found subscribers of pre-paid connections. The
reasons behind using pre-paid mobile connections. ‘No hassle of bill payment’ has been
found to be the most mentioned reason by the pre-paid mobile users (84%). ‘Availability
of cards everywhere’ has been found the next mentioned reason by the prepaid mobile
users (12%). The scenario is quite similar in all four regions of Bangladesh.
4.1.4 Reasons behind Using Post -paid Phones:  
Post paid mobile users have also mentioned reasons behind their preference. The major
reasons behind using post paid mobile connections. ‘Low call rate’ has been found to be
the most mentioned reason by the post-paid mobile users (74%). The scenario is almost
similar in all the four regions of Bangladesh.
4.1.5 Number of Calls per Day:
Nearly two-fifths of the respondents have mentioned that on an average they receive less
than 5 calls per day (39%). Almost the same number of respondents receives 5-7 calls per
day.
Regarding the outgoing calls, it should be mentioned that 59% of the respondents make
less than 5 calls, while 31% make less than 5-7 calls per day.
4.1.6 Duration of per call:
Majority of the respondents (34%)
have reported that the duration of most of their calls is less than 5 minutes.
4.1.6 Reasons behind Using Mobile Phone Service:
Most of the users opined that they use phone service for personal reasons (52%). However,
about half of the respondents use for both personal and official/business related reasons
(44%).
 Likes and Dislikes of Different Phones:
Two-thirds of Grameen phone users have responded that they like the network availability.
One-fifth of the users of Grameen phone have expressed that they like My Time, My Easy
Time, My Jones, etc; whereas 46% of them dislike higher call rate of Grameen. Pulse
facilities given by Robi (Aktel) liked by 31% of Robi (Aktel) users while the and lower
call rate is liked by 24% of them. Lesser availability of the network (29%) and high call
rate (22%) are the key disliking factors to the Robi users.
T&T phone user take T&T phone as a cheaper option than mobile phones. That the phone
can be used by all the members of the family is an important reason for preferring T&T
phone to mobile phone
4.1.7 Major Achievements of Teletalk:
a. First mobile operator to give ‘Free incoming’ to all subscribers.
b. First mobile operator to give ‘BTTB Connectivity’ to all subscribers.
c. First mobile operator to give ‘ISD & EISD Facility’ to all subscribers.
d. First mobile operator to introduce ‘single-Zone country wide Network.
e. First public sector enterprise to introduce e-governance.
4.2 Financial Analysis
 4.2.1 Future Outlook :
The Company started its commercial operation on 31st March, 2005. While the Company
is structuring and training a will focused technical term to ensure high standard of mobile
service performance, it is at the same time developing and training its sales, logistics and
marketing term to ensure sale of the entire service. This Company is putting in place a
professional organization with all the required systems and tools to run the business
efficiently and profitably
4.2.2 Provision for doutful debts
A net amount of Tk.3,506007 representing receivable from PCO clients and post paid
subscribers appears doubtful of recvery The board of Directors therefore recommends
making a provision for the same amount in the financial statements under review.
However, the management has taken due care to recover the doubtful debts within shortest
possible time.
 4.2.3 Fairness of the financial Statement and accounting policies
Its is the responsibility of the Directors as per the  of the Companies Act,1994,to prepar
financial statements for each year. The  financial statements and other financial
information included in this report fairly present all material aspects,The financial
conditions,results of operations, cash flow statement and the charges in equity  of the
company for the year under review.
The Company has used appropriate accounting policies in preparation of these financial
statements supported by reasonable and prudent judgment and estimates as necssary
international Accounting Standards (IAS), as applicable in Bangladesh has beenfollowed
in preparation o these financial statements in compliance to the relevant accounting
principles..
4.2.4 Financial results
During the year ended on 30th June, 2010, the company has registered gross revenue of
more than Tk. 2328.52 million from its operating activities (2008-09, Tk. 1961.19 million)
A brief results is shown hereunder
 
(Figures are in  30 June,  30 June, Difference
million Taka) 2010 2009
Taka %
(m)
Network revenue                           20.
2,207.50 1,839.23 368.27
Hardware revenue                                15.73      25.
76.51 60.78
Interest on bank                                  
account
42.00 58.49 (16.49) (28.1
Other revenue                                          
2.51 2.69 (0.18) (6.69
Total revenue (A                                 18.
) 2,328.52 1,961.19 367.33
Direct operating                             14.
expense
857.98 1,001.76 (143.78)
Network operating                            15.73    
expense
164.91 149.18 (10.5
General&administrative                                    0.
expense
192.48 193.63 (1.15)
Selling &distributing                                    1.
expense
200.07 202.99 (2.92)
Provision for doubtful                                      2.77   
debts
3.51 0.74 (374.3
Total expense (B                                  8.
) 1,418.95 1,548.30 (129.35)
EBITDA (A                                    
- 909.57 412.89 496.68 120.2
B)
Depreciation and                          10.
amortization
1,539.39 1,715.47 (176.08)
Net profit/ net                                  51.
loss(before tax)
(629.82) (1,302.58) 672.76
Tax adjustment                                67.
340.90 202.98 137.92
Net Loss after tax                                  73.
adjustment
(288.92) (1,099.60) 810.68
 
Major items of expenses include Direct Operating Costs and Depreciation on assets which
were Tk.856.98 million and Tk.1539.39 million respectively. General,Selling and network
operating expenses remained in proportion to the normal business trend of the
Company.Depreciation expenses, however increased in proportionate to the installation of
new capital machineries. However,the EBITDA (Earning before interest depreciation and
amortization) of the year was Tk. 909.57 million which reveals improvement of the overall
operational activities in comparision to the previous years
4.2.5 Balance Sheet of teletalk Ltd 2009 &2010
Teletalk Bangladesh Limited

Balance Sheet

As on 30 June 2010
Note 2010 2009
s
Source of fund Taka Taka
Shareholders equity:
             Share capital 5          6,438,661,000          6,438,661,000

             Accumlated loss 6                

(4,188,879,617) (3,899,935,020)
         2,249,781,383          2,538,725,980
Long term liabilities:
Deposit from subscribers,dealers and 7             112,433,309             113,114,225
agents
           Deferred tax liability 8             104,615,119             445,510,848

            217,048,428             558,625,073

         2,466,829,811            3,097,351,053
Application of fund
Property, plant and equipment cost 9          8,407,909,757          8,126,332,501

less:Accumlated depreciation          5,818,699,896          4,504,103,434

         2,589,209,861          3,622,229,067
Capital work-in-progress 10          1,406,678,974             638,542,354

Intangible assets 11               46,399,592             171,370,087

Deferred expenses 12               61,330,100             159,333,374

Current assets and advances

Inventories 13               35,732,976              30,159,901

Service handsets for staff                 5,623,316                9,754,188

Sundry debtors 14             792,271,866             750,764,263

Advances,deposit and prepayments 15               83,653,739              30,018,141

Advance income tax 16               37,511,186              32,573,142

Accrued interest against fixed deposit recepit               11,734,389              17,425,363
Cash and cash equivalents 17             714,507,230             583,146,792

         1,681,034,702          1,453,841,790

Current liabilities and provisions
Payable to BTRC 18             205,517,109              45,826,982

Provision for income tax               11,703,514              11,698,514

Security deposits from suppliers               36,996,752              41,329,843
Unearned revenue 19               99,649,885             126,070,115

Sundry creditors 20          2,963,956,157          2,723,040,166

         3,317,823,417          2,947,965,620

Net current assets                
(1,636,788,715) (1,494,123,830)
          2,466,829,811          3,097,351,053

 
4.2.6 Profit & Loss account of Telatalk Ltd (2009-2010)
Teletalk Bangladesh Limited

Profit and Loss Account

For the year ended 30 june 2010

Notes 2010 2009

 Taka  Taka
Revenue
Network revenue 21      2,207,497,027     1,839,227,516

Hardware revenue 22           74,036,065         59,138,061

Brckbone revenue             2,475,142           1,641,999

     2,284,008,234       1,900,007,576
Operating expense 23
Direct cost of network revenue 24         619,901,263       680,316,219

Direct cost of hardware revenue         238,085,311       321,442,269

        857,986,574       1,001,758,488
     1,426,021,660       898,249,088
Gross profit
Less; Other operating expense:
Netwark operating and maintenance exp 25         164,905,804       149,186,123

General and administrative expense 26         192,484,181       193,628,474

Selling and distribution expense 27         200,073,094       202,991,614

Provision for bed & doubtfut debts             3,506,007              739,493
Depreciation and amortization 28      1,539,394,534     1,715,469,416
      2,100,363,620       2,262,015,120
Operationg loss        (674,341,960)    (1,363,766,032)
Non-operating income 29           41,999,077         58,487,865

Other income 30             2,507,556           2,695,915

          44,506,633         61,183,780

       (629,835,327)    (1,302,582,252)
Net loss before tax
less: income tax (expense )/income 31    

Current tax                   5,000  –

Deferred tax income         340,895,729       202,975,591
        340,890,729       202,975,591
Net loss after tax trensferred to accumulated loss        (288,944,597)    (1,099,606,661)
Chart Sales & Loss Combination with Graf:
Chart of Sales & loss Combination
Sl no Year Sales Loss
       
1 2010 2284008234 288944597
       
2 2009 19000075576 1099606661
       
3 2008 1519080932 1626534312
       
4 2007 1001597841 610939350
 
4.2.7 Statement of Cash Flow Statement
Teletalk Bangladesh Limited

CASH Flow Statement

For the year ended 30 june 2010

2010 2009
 Taka Taka
A. Cash flows operating activities:
Net loss before tax          (629,835,326)     (1,302,582,252)
Add: Items not involving in movement of cash:
Depreciation on property,plant and equipment         1,314,596,462      1,424,555,742
Amortizaion of intangible assets           125,467,070         149,539,750
Amortizaion of deferred expenses             99,331,002         141,373,924
Provision for bed&doubtful debts               3,506,007               739,493
        1,542,900,541      1,716,208,909
          913,065,215         413,626,657
Cash renerated from operation
(Increase)/decrease of inventories              (5,573,075)           15,454,369
Decrease of service handsets for staff               4,130,872             3,330,697
Increase of sundry debtors            (45,013,612)          (87,940,015)
(Increase)/decrease of advance, deposits and            (53,635,598)           22,133,843
prepayments
Decrease of deposits from subscribers, dealers and                 (680,916)            (1,607,163)
agents
Increase/decrease of payable toBTRC           159,690,127           11,668,806
Increase/decrease of security deposits from suppliers              (4,333,091)           13,119,732
increase/decrease of unearned revenue            (26,420,230)           40,106,806
Increase of sundry creditors           240,915,991         509,991,770
          269,080,468         526,258,845
Income tax paid & deducted at source              (4,938,043)            (5,830,743)
Net cash generated from operating activities         1,177,207,640         934,054,759
B. Cash flow from investing activities:
Increase of property, plant and equipment            (33,232,399)            (8,579,980)
Increase of capital work-in-progress          (809,810,552)        (665,952,617)
Increase of intangible assets                 (496,575)        (138,498,632)
Increase of deferred expenses              (1,327,728)        (490,496,786)
Decrease/ increase of accrued interest against fixed               5,690,974              (326,742)
deposits
Net cash used in investing activities        (1,045,847,204)        (862,404,757)
C.Cash flow from Financing Activities:
Net cash inflow from financing activities
D. Net cash flow (A+B+C)           131,360,437             71,650,002
E. Operating cash and cash equivalents           583,146,792           511,496,790
F. Closing cash and cash equivalents           714,507,230           583,146,792
4.2.8 Statement of Changing Equity
Teletalk Bangladesh Limited

Statement of Changes in Equity

For the year ended 30 june 2010

Paritculars Share capital Accumulated loss Total

Opening balance as at jult 22000          (1,173,794,047)        (1,173,772,047)
2007
Net loss for the year          (1,626,534,312)        (1,626,534,312)
issuance of share capital 6438639000         6,438,639,000
Closing balance as at june 6438661000          (2,800,328,359)         3,638,332,641
2008
Net loss for the year          (1,099,606,661)        (1,099,606,661)
Closing balance as at june 6438661000          (3,899,935,020)         2,538,725,980
2009
Net loss for the year            (288,944,597)           (288,944,597)
Closing balance as at june 6438661000          (4,188,879,617)         2,249,781,383
2010
 
4.2.9 Note of financial Statement
Teletalk Bangladesh Limited
Notes to the Financial Statements
For the year ended 30 june 2010
 
 
1 Background
Teletalk Bangladesh Limited (hereinafter referred to as the Company)was incorporated as
a public limited company on 26 December 2004 with an authorized capital of BDT
20000000000 dividend into 20000000 ordinary shares of BDT 1000 each. The Company
obtained the Certificate  of Commencement of business from the Registrar of join Stock
Companies and Firms on the same day .The  Company is wholly owned by the
Government of the peoples Republic of Bangladesh and represented by various ministries
and Bangladesh Telephone Board (BTTB) presently BTCL.
The Executive Committee of the national Economic Council (ECNEC) of the Government
of the people  Republic of Bangladesh decided to from a separate public sector for
implementation and operation of the project named 10(ten) Lakh T&T Mobile Telephone
Project (1st Phase-2.5 lakh)and decided that BTTB presently BTCL should implement the
project and commercial operation be carried out by a public limited company to be formed
and later on after completion of the project , the assets out of this process would be
transferred to the company
2 Nature of Business
The principal activities of the company are to promote and develop telecommunication and
ancillary service,to promote and undertake programs or activities to extend wireless and
cellular mobile telephone service, to enable the people to resell telephone service on a
commerciall basis and also to develop a network that would meet the telecommunication
needs of the subscribers and to provide access to similar services at a most competitive
price.
3 Significant accounting policies:
3.1 Basis of accounting:
The financial statements have been prepared on going concern basis under the historical
cost convention on Generally Accepted Accounting Principles (GAAP) in accordance with
the Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS), Companies Act 1994 and other applicable laws and regulations.
3.2 Going concern review:
The Company has been experiencing operating losses during last few years, negative cash
flows during the period, working capital deficiencies and adverse key financial ratios.
However, the management has reviewed the projected cash flows and profit forecast and
concluded that the Company is expected to overcome the present situation in a foreseeable
future. The Company’s projected cash flow and profit is supported by the fact that it will
increase its subscribers. As a result, the Company does not anticipate any adverse situation
that may affect the going concern status of the Company.
3.3 Recognition of property, plant and equipment:
Properties, plants and equipments are stated at cost less accumulated depreciation. Cost
includes expenditure directly attributable to the acquisition and installation of the assets.
Any repairs and maintenance to the assets are charged to the income statement as expenses
during the period when these are incurred.
3.4 Depreciation of property, plant and equipment:
Depreciation on properties, plants & equipments has been charged on straight-line method
considering the economic and technical lives of the same. Full year’s depreciation is
charged on assets during the period of acquisition irrespective of its date of acquisition and
no depreciation will be charged on assets during the period of disposal. For the purpose of
these financial statements, proportionate depreciation has been charged therein.
3.5 Depreciation rates used are as follows:
Name of the assets                             Rate of depreciation 
Base station                                         15% -20%
Switching equipment                          10% -20%
Transmission equipment                      20%
Office equipment                                20%
Furniture & fixtures                            20%
Computers                                           20%
Transport vehicles                               20%
                         
3.6 Intangible assets and accumulated amortization:
Intangible assets are stated at cost less accumulated amortization using the straight-line
method. Intangible assets include cost of acquisition of operating software and accounting
& inventory software. These are amortized over a period of three years from the period of
acquisition irrespective of its date of acquisition and no depreciation will be charged on
assets during the period of disposal. For the purpose of these financial
statements amortization has been charged proportionately for six months.
3.7 Preliminary expenses and accumulated amortization:
This represents expenses incurred before commencement of commercial operation of the
Company. These are amortized over a period of three years from the year of incurrence of
commercial operation. For the purpose of these financial statements amortization has been
charged proportionately for six months.
3.8 Deferred expenses and accumulated amortization:
Deferred expenses representing project implementation cost, documentation fees and
training expenses has been charged in these financial statements with a view to write off in
4 years commencing from the period of incurrence of such expenses. For the purpose of
these financial statements amortization has been charged proportionately for six months.
3.9 Inventories:
Inventories include SIM card, scratch card, cash cards and mobile sets. Those are
measured at the lower of cost and net realizable value. Cost is determined using the
weighted average costing method.
Year      2010                Taka, 35,732,976
Year      2009                Taka, 30,159,901
3.10 Stock of service handsets for employees:
Stocks of service handsets for employees are valued at original cost. These are charged as
expenses at the time of issued for employees.
3.11 Sundry debtors:
Sundry debtors consist of receivable from distributors, dealers, inter-operators and
unrealized bills for network revenue which are recognized at the balance sheet date.
                                   Year      2010                Taka, 792,271,865
Year      2009                Taka, 750,764,263
3.12 Taxation:
Current income tax is recognized on the basis of company’s computation based on the best
estimated profit for the period at the rate of 45% pursuant to provisions of Income Tax
Ordinance 1984 and the relevant Finance Ordinance. Despite of having no taxable income
a tax provision @ 0.25% of total turnover has been accounted for in accordance with
aforesaid Finance Ordinance.
ü  Current tax
ü  Deferred Tax
3.13 Foreign currency transactions
Transactions in foreign currencies are converted into equivalent BDT applying the ruling
rate at the date of such transactions. Assets and libabilities outstanding at 30 june 2009
denominated in foreign currencies have been shown in BDT at the rate in terms foreign
currencies ruling on the Balance Sheet date. 
3.2 Revenue recognition:
3.2.1 Network revenue:
Prepaid network revenue is recognized (exclusive of VAT) as per actual usage of prepaid
(scratch) cards recorded in the unused portion cards  remains as unearned revenue and
recognized as liability of the company.
Year      2010                Taka, 2,207,497,027
Year      2009                Taka, 1,839,227,516
3.2.2 Pre-paid revenue:
Prepaid network revenue is recognized (exclusive of VAT) as per actual usage of prepaid
(scratch) cards recorded in the network. The unused portion of the prepaid cards remains
as unearned revenue and recognized as liability of the Company.
3.2.3 Postpaid revenue:
Postpaid network revenue is recognized on accrual basis and recorded as income
(exclusive of VAT) on delivery of the bill to subscribers on a monthly basis.
3.2.4 Interconnection revenue:
Interconnection revenue consists of charges imposed to other cellular operators for
receiving calls from their subscribers’ cellular numbers. These are recognized as per
invoices raised on a monthly basis.
Year      2010                Taka, 190,156,165
Year      2009                Taka, 231,457,709
3.2.4 Roaming revenue:
Roaming revenue consists of charges imposed to other cellular operators outside
Bangladesh for using the network of the company in the country. It is recognized as per
invoices raised on a monthly basis.
Year      2010                Taka, 3388656
Year      2009                Taka, 4184727
3.2.5 Backbone revenue:
Backbone revenue includes charges to different parties for using the company’s network
facilities and is recognized on the basis of issuance of invoice
Year      2010                Taka,. 2,475,1420
Year      2009                Taka,. 1,641,999
3.3Hardware revenue:
3.3.1  Handset revenue:
Handsets revenue is recognized at the time of sale of subscribers’ set.
 Year      2010                Taka,. 74,036,065
Year      2009                Taka. 59,138,061
 
3.3.2 Connection revenue:
Connection revenue is recognized as income when SIM cards are sold and delivered to the
subscribers.
3.3.3 SIM replacement revenue:
This represents charges realized from subscribers in case of new SIM cards and recognized
an income when received.
Year      2010                Taka, 12,121,566
Year      2009                Taka, 6563,863
3.3.4 Customer support revenue:
The amount of charges received from subscribers for rendering various service provided to
them, and it is recognized on collection basis.
Year      2010                Taka, 63356
Year      2009                Taka, 85250
 
 
9. Property, plant and Equipment

Cost Depreciation WDV

on
Name of As on Additional As on As on Charged As on Jun
assets 01.07.09 during year 30.6.10 01.07.09 during year 30.6.10

 Base                                      

Station 5,296,741,1 187,824,213 5,484,565,3 2,884,633,5 866,715,380 3,751,348,9 1,733,2
29 42 26 06 6

 Switchin                                                      

g 1,206,120,4 52,526,804 1,258,647,2 606,421,805 182,333,724 788,755,529 469,89
equipmen 65 69
t

 Transmis                                                   

sion equ 1,431,666,1 11,894,234 1,443,560,4 903,624,532 226,365,498 1,129,990,0 313,57
72 06 30
 Office                                                                   
Equipmen 80,592,558 21,785,830 102,378,38 37,757,085 19,722,305 57,479,390 44,898
t 8

 Furniture                                                                         

& 49,049,364 6,192,130 55,241,494 27,954,460 4,201,776 32,156,236 23,085
Fixtures

 Compute                                                                     

r 19,862,287 1,354,045 21,216,332 9,126,288 10,330,779 19,457,067 1,759,2

 Motor                                                     

Vehicles 42,300,526 42,300,526 34,585,738 4,927,000 39,512,738 2,787,7

 Total 30                                         

june 2010 8,126,332,5 281,577,256 8,407,909,7 4,504,103,4 1,314,596,46 5,818,699,8 2,589,2
01 57 34 2 96 0

 Total 30                                         

june 2009 7,677,113,4 449,219,016 8,126,332,5 3,079,547,6 1,424,555,74 4,504,103,4 3,622,2
85 01 93 2 34 7

Notes:  Some Important notes

2010(Taka) 2009(Taka)

6. Accumlated loss                  0  Taka

 Taka

Opening balance     (3,899,935,020)   (2,800,328,359)

Add: Net loss for the year        (288,944,597)   (1,099,606,661)

Total     (4,188,879,617)     (3,899,935,020)

 
7. Deposits from subscribers,dealers&agent

2010(Taka)   2009(Taka)

   Deposits from PCO subscribers          97,717,420        97,717,420

    Deposits from postpaid subscribers            1,508,305          1,466,805

   Deposits from dealers & distributors          13,207,584        13,930,000

Total         112,433,309        113,114,225

 
10. Capital work-in-progress 2010 (Taka)   2009(Taka)

Opening balance         638,542,355      413,228,773

Add: Addition during the year         809,810,552      665,952,617

     1,448,352,907    1,079,181,390

Less: Capitalized during the year          41,673,933      440,639,036

Total      1,406,678,974      638,542,354

 
11. intangible Assets 2010 (Taka)   2009(Taka)

 Software at cost         449,658,247      311,159,615

Add: Addition during the year               496,575      138,498,632

        450,154,822      449,658,247

Less: Accumulated amortization

Opening balance         278,288,160      128,748,410

Amortized during the year         125,467,070      149,539,750

Total          46,399,592      531,522,392

 
 
12. Deferred expenses 2010(Taka)   2009(Taka)

Cost         565,495,679      516,448,911

Add:Addition during the year            1,327,728        49,046,786

        566,823,407      565,495,697

Less: Accumulated amortization

 opening balance         406,162,323      264,788,399

Amortized during the year          99,331,002      141,373,924

        505,493,325      406,162,323

Total          61,330,082      159,333,374

 
13. Inventories 2010 (Taka)   2009(Taka)

SIM cards          24,480,160        17,104,638

Scratch cards          10,559,599        12,362,046

Cash cards               693,217             693,217

Total          35,732,976        30,159,901

 
14. Sundry debtors 2010 (Taka)   2009(Taka)

Monthly telephone bills         161,254,942      157,491,647

Receivable for intercon, charges         620,150,285      577,855,244

Receivable for dealers and distributer          74,545,397        78,116,003

Receivable from roaming operators            8,646,222          8,561,312

Receivable from sheba Telecom            1,740,629          1,299,660

        866,337,475      823,323,866

Less: Provision for bed&doubtful debts

Opening balance          70,559,603        69,820,110

Add: Provision made during the year            3,506,007             739,493

Total          74,065,610        70,559,603

 
15. Advance,deposits and prepayments 2010 (Taka)   2009(Taka)

Advance

Advance against expance            3,766,328          1,086,079

Advance paid to various suppliers          45,174,404          6,766,522

Advance to staff                  2,000              35,000

Advance to staff against petty cash            1,067,181          1,018,348

         50,009,913          8,905,949

Deposit

Security deposit                 16,500              16,500

Security deposit to T&T                 54,800              54,800

                71,300              71,300

Prepayments

Office rent            9,804,269          6,891,563

BTS rent          23,768,257        14,149,329

         33,572,526        21,040,892

Total          83,653,739        330,018,141

16.Advance income tax 2010 (Taka)   2009(Taka)

Under section 64 4,238,144 4,238,144

Deducted at sources by bank & others

Aginst interest  from short term 3,820,452 3,280,219

Aginst interst from fixed deposits 29,310,797 25,045,287

Aginest others 141,793 9,493

33,273,042 28,334,999

37,511,186 32,573,143

17. Cash and cash equivalents 2010 (Taka)   2009(Taka)

Cash in hand 928,449 514,420

Cash at bank:

Citibank NA 40,045,077 4,282,532

 The city bank 48,961,877 11,911,808

Dhaka bank 37,960,850 6,467,428

DBBL 23,315,791 22,872,713

EBL 175,899 150,901

BASIC Bank 28,836,087 7,635,766

Bank Asia 9,880 9,880

HSBC 1,502,144 2,311,504

IFIC 7,425,798 27,688,753

PBL 18,547,111 23,619,575

SBL 592 592

JBL 103,268,842 21,946,383

southeast bank 7,086,894 1,664,657

PBL 7,850 7,578

317,144,692 130,570,070

Short term of deposits (FDRs) 396,434,087 452,062,302

Total 713,578,779 582,632,372

 
18.Payable to BRRC 2010 (Taka)   2009(Taka)

Frequently charges          23,175,075        23,284,288

Revenue sharing charges         132,342,034        22,542,694

Annual licenses free          50,000,000

Total         205,517,109          45,826,982 

19. Unearned revenue 2010 (Taka)   2009 (Taka)

Scratch cards            8,998,504        35,772,925

Tele charges          90,651,381        90,297,190

 Total          99,649,885        126,070,115
 
20. Sundry creditors 2010 (Taka)   2009 (Taka)

Outstanding electricity bills &others          16,035,953          21,994,749

Audit free payable               329,250             156,750

VAT current account         799,978,542      754,852,242

tax& VAT deducted at source          16,263,703          8,747,646

Payable to suppliers      1,298,886,520    1,128,012,097

Interconnection charge payable         765,639,071      748,350,242

Payable to roaming operators          29,116,297        23,219,618

Commission payable          36,681,381        36,681,382

Provision for office rent               157,000             157,000

Advance against cash card               868,440             868,440

Total      2,963,956,157      2,723,040,166

 
21.Network Revenue   2010 (Taka)   2009 (Taka)

         

Traffic revenue   2,013,952,206    1,603,585,080

Interconnection revenue     190,156,165       231,457,709

Roaming revenue         3,388,656           4,184,727

Total   2,207,497,027    1,839,227,516

 
22.Hardware revenue 2010(Taka)  2009(Taka)

Sale of SIM card       61,851,144         52,488,948

Replacement of SIM card       12,121,566           6,563,863

 Customers support revenue             63,356               85,250

  Total         74,036,066           59,138,061
 
23.Direct Cost of network revenue

    2010(Taka)   2009(Taka)

         

Cost of scratch & cash card 10410144 9,426,441

Interconnection 345,989,301 441,460,847

Revenue sharing-BTRC 109,799,340 74,562,076

Annual license free-BTRC 50,000,000 50,000,000

Frequency charges-BTRC 94,037,424 89850926

Roaming expenses 6,862,131 13,168,413

Cost of content provider 2,802,951 1,847,516

Total   619901291   680316219

         
 
 
 
24 Direct Cost of network revenue

    2010(Taka)   2009(Taka)

         

Cost of SIM card   237849361   320489206

Packing expenses   235950   953063

 Total   238085311   321442269

 
25.Network operation & maintenance expense    

2010(Taka)   2009(Taka)
BTS rental charges 53375233 46136257

BTS electricity 104067571 95128672

Maintenance expense 7463000 7921194

Total   164905804   149186123

26.General & administrative expense    

2010(Taka)   2009(Taka)

Salary & Allowances 100938528 95981868

Peinting & Stationery 11676458 16242540

Prepair & maintenance 5063982 4075804

Office rent 20188212 27965248

Car rental expenses 11803856 9014385

Telephone,fax & e-mail 800521 561367

Distribution of habd sets 4130872 3330697

Travelling expense 4825580 3633899

Security guard and cleaning 6170761 4993312

Utilities 4035157 4781257

Entertainment 1422130 1254218

Legal & professional fees 747895 226598

Office expense 1773391 1905545

Board meeting fees 462500 336625

Audit fee including VAT 172500 156750

membership fees 918903 1062385

Fual& Lubricent 15414297 12277264

GSM Association fee 584592 2538796

Employee training expense 35700 1612400

 AGM expense 105500

Recruiting expense 126000

Postage & courier 540414 615163

Mincellaneous 651932 956853

Total   192484181   193628474

 
27.Selling & distribytion expense    

2010(Taka)   2009(Taka)

Advertisement 52010639 60472606

Business promotion 3185352 16399615

Sales commission 144877103 126119393

Total 200073094 202991614

 
28.Depreciation & amortization

2010(Taka)   2009(Taka)

Dep: on prpperty,plant & equipment (note,9) 1314596462 1424555742

Amortization on intangible assets 125467070 149539750

Amortization on defeerd expense 99331002 141373924

Total 1539394534   1715469416

 
29.Other income /Expense

2010(Taka)   2009(Taka)

     

Sale of tender document 273000 3259000

Foreign exchange loss (216150) (1323600)

Commission from Education board & others 2369186

 Miscellaneous income 815200 760515

Total 3241236   2695915

4.3 Ratio analysis of Teletalk Bangladesh Ltd.
(A)       Liquidity Ratio:
I.  Current Ratio: 
For Teletalk June 30, 2008-2010
Telltale’s acid-test is weak. Strong current ratio and week acid-test indicates a potential
problem in the inventory account.
(B)       Financial Leverage Ratios:
II. Debt-to-total assets ratio
III. Total Capitalization Ratio:
For TeletalkJune 30, 2010-2008
Teletalk financed by long – term debt utilization ratio 0.11, 0.18 and 0.17 in the year 2010,
2009 and 2008.
(C)    Profitability Ratio:
Teletalk Bangladesh Ltd. gross margin ration increase 2008 to 2010.
I. Net Profit Margin Ratio:
For Teletalk Bangladesh Ltd June 30, 2010-2008
Teletalk Bangladesh Ltd. net margin ration decline 2008 to 2010.
II. Return on Investment
Teletalk Bangladesh Ltd. Return on Investment ratio is falling 2008-2010.
III. Return on Equity:
For Square Pharmaceuticals December 31, 2005-2007
Teletalk Bangladesh Ltd Return on Equity ratio is falling 2008-2010.
4.4 Capital Structure:
Definition:
Simply capital structure defined as a mixture of Debt and Capital or Financing mix. It’s
depends on the nature of the firm and manager intensity. It could be 100% of equity. There
are thousand of combination is possible in the capital structure of Firm.
Optimum capital Structure:
The mixture of capital structure which balancing the risk and return of investment in a
flexible way and reduce the cost of investment. is called Optimum capital structure.
 
4.5 Factors affecting capital structure:
Business Risk:
When the expected returned don’t matches with the actual return then it’s consider as
business risk. Business risk is arises from ineffective operation of the firm which is also
called systematic risk. Deviation occurs because of low quality of products, weak marketing
channel, less demand for products.
Tax position:
Tax position also affects the firm positively or negatively. When the firm has strong earning
capacity then the firm may issues debt. Which help from payment of tax. But if the firm has
lower earning trends then should not issue debt to take tax advantage
Financial flexibility:
When the firm has rules of Turing the debt holder to share holders then the firm trends for
debt issuing would be more. So this factor has an impact on the capital structure.
Managerial attitude toward Borrowings:                                                      
If the manager of firm is aggressive in nature, they would like to take more debt in order to
take tax advantage and risk of the firm also increase proportionately. Other hand, if the
manger is conservative in nature who doesn’t like to take risk, he may not issue debt.
Financial risk:
If the firm has any fixed cost item in its capital structure then the firm should not issue more
debt. The higher would be the fixed cost the higher would be the risk. Fixed cost item are
debenture, preferred stock.
Chapter- Five
Findings & Analysis
5.1 Problem in the Finance of Teletalk:
By the above analysis I find the following problems in Taletalk Bangladesh Ltd. Finance
wings.
 Shortage of working Capital.
 Insufficient fund for new investment.
 Shortage of fund for network expansion.
 Problem for quick Decision making.
 In confidence of the subscribers about teletalk network
 Poor Work Delegation Structure.
 Lack of co-ordination among the employees & departments.
 Lack of potential and efficient employee.
 Shortage of Logistics Supports
 Dealer Insufficiency
 Lack of accounting information system.
 Increasing revenue
 Increasing Inventories.
 Increasing operating expanses.
 Poor Brand Image.
 Poor reputation among customers.
 Shifts consumer tastes.
 Lower promotional activities.
 Packages are not so lucrative.
Subscribers are not conscious about all packages & Value-Added Services.
Lack of after sales service.
5.2 How to improve the financial problems of Teletalk:
 First and main problem of the Teletalk Bangladesh Ltd. is fund problem this problem over
come by collecting fund:
 This fund may be collect by short term lone.
 Fund may be collect by IPO.
 Teletalk Bangladesh Ltd has some opportunity to get soft lone from china. This lone may
be paid by 15 years.
 Collect short-term loan from Commercial Bank.
 Teletalk Bangladesh Ltd. can take the soft loan for new investment.
 By Improve the information system and by employing experts to take a good & quick
decision making
 Ensuring Improved Network Quality for the satisfaction of the customer.
 Employing qualified employee & make perfect them by proper trainning.
 Improve the Interaction between the employees and make them helpful to each other.
 Improve the Logistic system by a systematic way.
 Teletalk Bangladesh Ltd. main revenue comes from the Dealers sales so that Teletalk
Bangladesh Ltd. must be improving the Dealers Management system.
 Teletalk Bangladesh Ltd. can improve the Accounting information system by implementing
a Central software system.
 Teletalk can decrease the inventories by improve the sales by implementing different
Marketing strategy.
Conclusions:
At last we can Say that Teletalk is a growing up but at present the Company no profits, After
three year Teletalk Ltd profitable Sectors because new technology 2.5G,3G established in the
Company. At present Teletalk ltd subscribers 3 million but active subscribers 2.6 million.
Teletalk try to providing and to do so, it has established country-wide strong telecom network
coverage at all districts, upazillas and Highways. Teletalk established 23customer care
Center, 22,420 SIM Retailed center, 520 SIM Replacement Point, 30,090 Telecharge Centers
and 79 number of countrywide. Also Teletalk has international Roaming services with 54
operators of 38 countries worldwide.
The company also thinks about the new consumers as well. If the company can ensure such
types of situation and follows the recommendations those are cover in this report,
So I hope Teletalk Ltd as soon as profitable