Shamima Akhtar.051 535 030 M Mahmudul Hasan..073 330 530 Sharmin Akhtar Khan082 635 030 Rumanam Ajid.

082 341 030 Shams Arefin..091 051 7030

Watson, come here: I want you. This was the first message ever transmitted from one place to another, through a device called telephone.

The telecom sector in Bangladesh has emerged rapidly. Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of Bangladesh (1990). It is the only CDMA network operator in the country. Citycell had a virtual monopoly until 1996 when the government gave licenses to three more companies to operate cell phones in BangladeshGrameenphone Limited (GP), Telecom Malaysia International Bangladesh Limited (AKTEL), and Sheba Telecom (Banglalink) On March 26, 1997, GrameenPhone launched its service on the Independence Day of Bangladesh. They were the first to introduce GSM technology in country. There are 6 mobile phone operators in Bangladesh. These are: Grameenphone Ltd., Robi Axiata(AKTEL), Banglalink, Citycell, Teletalk and Airtel (Warid). The number of mobile phone subscribers in Bangladesh as of February 2009 was 45.21 million, rising to 76.43 million at the end of June 2011

A large segment of the country's population now utilize subscription to more than one operator. The telecom industry of Bangladesh is varying its product in terms of augmented features and benefits to appeal to distinctive segments of customers within that one segment, while all the players in the industry are attempting to compete with each other in all segments. The customers of the telecom industry are being exposed to telecom products, and combined with constantly reducing call rates resulting from competition. Business Monitor International (BMI) has predicted that by the end of 2011, mobile subscribers will reach figures of around 115 million.

80 70 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 Subscribers in million
Source: CRAB

68.64 52.43 43.7 28.3 17.1 1.1 1.8 3.9 8.9

Market Growth
percentage of growth 2004 2005 2006 2007 2008 2009 2010 3%

6%
12% 19%

Radical changes at growth rate in 2007-2008

32.04%
32.77% 40.69%

BD subscriber growth to remain one of the fastest in Asia

Market penetration % 2009

Source: AT Capital Research; Note: Size of bubble denotes relative population of country.

Relative wealth e.g. GNP per capita Quality, availability, and pricing for wire line services. Innovative service offerings The intensity of competition Variations between national markets The price of a handset Acquisition price of a SIM

GP has been the market leader at a stretch for more than a decade The mobile telecommunication industry had 68.64 million subscribers in December 2010 of which GPs subscriber base stood at 29.97 million as of December 2010 which is 44% of the total subscriber in the Industry On the other hand, Airtel has achieved 6%, ROBI Axiata 18%, Banglalink 28%, Citycell 3%, Teletalk 2% market share as of December 2010

Operators/ month
GP

Jul 10 43% 28% 19%

Aug 10 44% 28%

Sep 10 44% 28% 18%

Oct 10 43% 28% 18%

Nov - 10 43% 28% 18%

Dec - 10 44% 28% 18%

Banglalink Robi Axiata Airtel Citycell Teletalk

18%

5%
3% 2% 100%

5%
3% 2% 100%

5%
3% 2% 100%

6%
3% 2% 100%

6%
3% 2% 100%

6%
3% 2% 100%

Total

Telecoms contribution to Govt Revenue (%)

10% 7.80% 8.00%

5.20%
2.30% 2.50%

6.10%

1.50%

1.90%

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: AMTOB & NBR

Access to communications Mobile Remittance Productivity Reduce transaction costs Provide opportunities for business expansion Encourage entrepreneurialism Improve in search for employment Facilitate mobile banking

Economic impact of the mobile communications industry in 2009 as a % of total GDP, by type of impact

source : world bank; Qiang 2009

Porters Five Forces

Barriers to Entry: High competition creates low entry barriers.
Bargaining Power of Suppliers: The bargaining power of
suppliers in the industry is strong in some cases if not in all

Bargaining Power of Customers: In our country the customers

have absolute bargaining power

Threats from competitors: high competition Threat from Substitute Products:

. In case of Bangladesh mobile telecom industry, substitutes exist in the form of government land lines and some upcoming PSTN operators. Some additional substitutes include wireless Internet providers such as WiMax based companies

Product (services)
Core Phone call and Text message Supplementary Voice SMS Mobile banking Internet Bill payment

Price
A pre-paid connection can be purchased within 200

Taka, where a post-paid connection can be purchased within 1000 Taka. But on an average it's now 1 Taka per minute for voice call. SMS charge less than 1 Taka per SMS for some operators Internet service. It can be on volume basis (dependant on bytes downloaded or transferred) or at fixed rates. In most cases, the average rate per kilobyte is around Taka. 0.02.

Promotion
Mobile companies use very aggressive promotional

campaign Each company follows different strategies for their promotional campaign. Telecom companies have captured a major segment of advertising among all the products and services. Sponsoring various events is another promotional strategy followed by these companies.

Place
Distribution facilities almost everywhere in

Bangladesh Own customer care centers almost in all the important areas One or more authorized dealers in every district Recharge centers are available where ever is needed.

Process
All the companies have well designed process to

provide the service properly. Customer care centers are available to solve the problems of the customers if thy have any. Call centers are being a very important part developing relationship with the customers. Role of high tech facilities and degree of automation of the service is noteworthy.

Physical Environment
Physical environment is not important for the

customers for availing the telecom facility. Even though the customer care centers are with good environment. Employees are well dressed and well mannered.

People
Customer care employees are cooperative and

well mannered. Call center employees are well trained and are suitable for the job design. Other employees are not the subject of matter for the customers.

Productivity and Quality

Each telecom company has their specific

productivity and quality for their targeted customer segments. Productivity and quality includes constant maximum network coverage, call tariff and packages.

Expand Valued Added Services (VAS) Convergence will become more important Infrastructure Sharing Public Private Partnerships (PPPs) Lower Broadband Costs Digital Bangladesh Possible Tax Cuts 3G/4G

Clarity on process and terms of Telecom license renewal 3G networks are expected to significantly enhance user experience 3G License uncertainty

Bangladesh mobile telecoms consumers suffer one of the highest levels of taxation The recent amendment to the Telecoms Act might increase the risks of arbitrary regulatory interventions.

Flexibility in Government Regulations Prospective IPOs by other players industry like GP Offering post-paid connections to youngadults Contract Cell Phones Merger and 3G & 4G viability Mobile Apps

Rapid Mobile Phone Growth Should Continue Market growth will be supported by both the introduction of 3G networks(likely 2011 or early 2012) as well as prospective further cuts in Broadband wholesale costs and intro of second submarine fibre optic cable. Aggregate revenue growth for Telecoms sector as a whole likely to remain robust.