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PRESENTERS

NAME BATCH ID
Mohsin Md Abdul Karim 51E 13
Md. Zobaer Islam 51E 10
Anik Mallik 51E 37
Md Sayedur Rahman 51E 39
Rayhanus Salam Rupak 53E 15

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 Company Overview
The only state-owned mobile company
Incorporated on December 26, 2004
A network foothold in 64 Districts, 402
Upazilas, and most of the highways.
OBJECTIVE To provide affordable mobile telephone
FOR service
FORMATION
To ensure fair competition between
public and private sectors
To meet demand at remote areas

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 ACHIEVEMENTS

In 2006 In 2012

Free incoming calls 3G Mobile Telephone Services

Drop in call rate per min

Landline connectivity

Source: TBL Annual Report 2012-13 5

VISION
STATEMENT Our vision is to know our
customers and meet their needs
better than anyone else.

MISSION
STATEMENT To innovate and constantly find
new ways to enhance our services
to our customers current needs
and desires for the future.

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 REBRANDING

Before After

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 Ecnec Approves Teletalks 3G
Expansion Project
Approval of Teletalks 3G network expansion
project of BDT 675.81 crore on June 22, 2016.
(World Business Times, 2016)

To take the operators 3G internet facility to rural

people

Teletalk Bangladesh Limited will set up cyber

centers and 1,200 base transceiver stations (BTS).
Besides, a total of over 500 BTS of 2.5G will be
built.
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 FINANCIAL OUTLOOK
Gross Profit Margin Net Profit Margin
63.1%
62.4% 7%

4%
59.8%

-3%
56.8% -5%

-12%

2009-10 2010-11 2011-12 2012-13 2009-10 2010-11 2011-12 2012-13 2013-14

Net Profit After Tax BDT (m)

463.84

110.28

(175.03)
(208.60)
(272.33)

2009-10 2010-11 2011-12 2012-13 2013-14 9

ECONOMIC ANALYSIS

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 Telecommunication Market Size

Source: BTRC (updated August, 2016) 11

 Scope of Competition
Oligopolistic Market: 3 major players comprising
90% of market share

Competitive: Lowest ARPU (Average Revenue per

User) market in the world

TBL - Network foothold in 64 Districts, 402

Upazilas, and most of the highways

Wide scope to compete in the regional areas

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 Industry Growth Cycle
Demand is saturated and slow-growing;
Excess supply of competition too willing to discount, which is
evident from ARPU being lowest for this industry;
Eroding margins, profits, and returns owing to lower Average
Price per Minute (APPM);
Emphasis on cost-cutting to stay ahead of margin erosion;
And consolidation of competitors, i.e. the merger of Robi and
Airtel.

Matured
Industry

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 PEST Analysis
TBL the only state run operator
Political

Robi-Airtel merger will shape the

industry

Ecnec Approves Teletalks 3G Expansion

Project Government will finance BDT
608 crore

Government has taken various polices to

increase FDI and planned to create 100
economic zones by the next 15 years
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 PEST Analysis
Economic 7.1% GDP growth

Lower Middle Income on July 1, 2015

Per capita income rose to $1,314 from
$543
Rate of ultra-poor declined to 11% in
2015 from 24.2% in 2006.
50 million people entered in mid
income slab from low income slab

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 PEST Analysis - Economic

A study made by
Deloitte & Touche,
found that every 1%
increase in mobile
penetration has raised
GDP growth in
Bangladesh by 0.12%.

Source: Based on BTRC website and World Bank website

published data

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 PEST Analysis - Economic

Unemployment rate is
predicted to decrease
in the following years
from 4.43% to 4.38%

Source: Industry Report, IDLC Securities Limited

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 PEST Analysis - Economic

Disposable income of
people is forecasted
to increase to BDT
74.86 million from
58.74 million

Source: Based on BTRC website and World Bank website

published data

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 PEST Analysis - Social
The popularity of
Mobile Internet User this social network
is so high that
people in rural area
substitute internet
for using Facebook.

Almost 80% of
Source: BTRC
internet users of
Bangladesh are on
Facebook.
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 PEST Analysis
Social Transformation from agrarian
economy by urbanization
Increasing female participation
rate in workforce

Technological Merger: Highest spectrum

owning company with a total of
39.8 MHz
Expansion project of 3G

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 Porters Five Forces Analysis
INTENSITY OF Very High
COMPETITIVE
RIVALRY One of the lowest ARPU market in the world

High exit barrier

Price war

Robi-Airtel merger in number of competitors

BARGAINING Very High
POWER OF
BUYERS Homogenous service

Upcoming mobile number portability facility

Low switching cost

Offers & promotions-aware and prudent customers 21

 Porters Five Forces Analysis
BARGAINING Low
POWER OF
SUPPLIERS

Good supply chain network

Medium to long term contract

THREAT OF Low
NEW ENTRY
High entry barrier

Large capital & resource intensive

High brand positioning

High economies of scale 22

 Porters Five Forces Analysis
THREAT OF Moderate to Low
SUBSTITUTION

Substitute of Voice Call - imo, Tango, Viber, Skype,

whatsapp, etc, are getting popular

Substitute of Data Revenue & Voice Call ISP & PSTN.

Proportion of total internet subscribers for ISP and
PSTN is increasing.

Source: BTRC website 23

 Porters Five Forces Analysis
Intensity of Competitive
Rivalry
5
4
3
2 Bargaining Power of
Threat of New Entry
1 Buyers

Bargaining Power of
Threat of Substitution
Sellers

Source: Team Calculation

Legend

0 No threat to TBL
1 Insignificant threat to TBL
2 Low threat to TBL
3 Moderate threat to TBL
4 Significant threat to TBL
5 High Threat to TBL 24
 SWOT ANALYSIS
Strength Weakness
Government sponsored company Weak network coverage
Low call rate
Cheaper internet cost
Less amount of VAS
Excellent network in remote areas Growing customer
First mover advantage in 3G dissatisfaction
All connections are ISD & EISD
and free of extra charge

SWOT

Opportunites Threats
Less bindings in legal environment Robi- Airtel merger
Rising income level Increased growth of ISP and PSTN
Decrease in the price of smart phone Loss of BDT 400 crore
ICT revolution
Chances of knock-out from the
Multilateral use of mobile phone
market
Mobile number portability 25
 Industry Life Cycle Analysis
The industry life cycle is important in analyzing
the strength of competition in an industry.
There are five sequential stages:
Embryonic
Growth
Shakeout
Mature
Decline
Competition increases as the industry
progresses through the cycle.

Source: (TBL Annual Report 2012-2013)

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 Stage 1

Embryonic:
The industry is just beginning to develop
Development is slow
Buyers are unfamiliar with product
High prices

Source: (TBL Annual Report 2012-2013)

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 Stage 2
Growth:
Demand takes off
Many new customers
First-time demand
Prices fall with development and higher
volume
Entry barriers are relatively low
Relatively low competition

Source: (TBL Annual Report 2012-2013)

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 Stage 3

Shakeout:
Rate of growth slows
emand approaches saturation levels
Few potential first-time buyers
Rivalries become intense
Excess capacity may exist

Source: (TBL Annual Report 2012-2013)

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 Stage 4

Mature:
Market is totally saturated
Demand is limited to replacement demand
Growth is low or zero
Barriers increase
Threat of new entries decrease
Competition drives prices down

Source: (TBL Annual Report 2012-2013)

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 Stage 5

Decline:
Falling demand = Excess capacity
Growth becomes negative due to
Technology substitution

Demographics

International competition

Source: (TBL Annual Report 2012-2013)

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THANK YOU
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