telecommunication in bangladesh

1.1 Origin of the report:

At the beginning we are very much grateful to Almighty Allah for giving us strength and opportunity and sound mind to complete the report. It is common practice to thank all those people who contributed to the task that one has to achieve and we see no reason to change this custom. We have received endless support and guidance in preparation of this report from numerous sources. We would like to take this opportunity to thank them all. We also like to thank our honorable teacher MD.Kamrul Hasan for his helping mentality.

1.2 Background of the study:

“Watson, come here: I want you.” This was the first message ever transmitted from one place to another, through a device called telephone. American genius, Alexander Graham Bell (1847-1922) along with his assistant Thomas Watson invented the device. It was March 10, 1876, an important day for human civilization, the first step towards developing means of communication

Bangladesh Telecommunication Regulatory Commission (BTRC) an independent Regulatory Commission established under the Bangladesh Telecommunication Act, 2001, (Act no18 of 2001) published by the parliament in the Bangladesh Gazette extraordinary in new on April 16, 2001. BTRC started his journey from 31st January 2002 to conduct the activities of the said act. With a initiation of its activates, necessary authority, responsibilities and related concern of the ministry of posts and Telecommunications were vested on to BTRC

1.3 Objective of the study:

Broad Objective: under the Bangladesh Telecommunication Regulatory Act 2001. The Act has delineated its objectives as follows:

• To encourage the orderly development of Telecommunication System that enhance and strengthens the social and economic welfare of Bangladesh ;

• To ensure in keeping with the prevalent Social and economic realities of Bangladesh, access to reliable, reasonably price and modern Telecommunication services and internet. Services for the greatest number of people as far as practicable;

• To ensure the efficiency of the national Telecommunication System and it capability to complete in both the national and international spheres;

• To prevent and abolish discrimination in providing telecommunication services, to progressively effect reliance and competitive and market oriented system and in keeping with these objectives to ensure effective control of the Commission;

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Specific objective: To prepare and submit the term paper within specified time. To have a very practical idea and over viewing the telecommunication sector focusing on a specific company and their performance Present Company’s current mission, vision, objectives, and goals. Find out their strength, weakness, opportunities, threats. Defining their market segmentation, target market and product positioning and key marketing areas.

1.3 Scope of the research:

This research will try to answer the problem statement stated. This means, the investigation will follow the pathway provided by the theoretical framework. The readers might sometimes feel that, more investigation could have been done. Or the theoretical framework should have designed with more corresponding theories. But considering the time frame and size of the research paper, we tried to nail down the topic as much as possible and had tried to formulate the 8 description in a concise way. The inability of physical presence in the Company and the country also limits the in-depth research.

1.4 Methodology:

We have conducted the literature search connected to the topic to support and direct the research. This search was mainly conducting on the University databases, Journal databases, websites and Textbooks.

We have searched the databases provided by search engines like Google and textbooks. The key words mainly used were Bangladesh Telecom industry, Telecom future, Bangladesh telecom Market.

In the full range of articles and journals on the subject of internationals marketing, investing in a new market, the We have found one of them very useful on the subject of “Bangladesh Telecom Brief 2014” This paper tells the inside of offering and the potential what Bangladesh market offers, not exactly the same subject but one major side of our paper has the subject of same interest.

The Theoretical Framework has been created with the help of some text books on International Marketing and marketing in general. Text books of marketing such as “International marketing” by Cateora & Ghauri (2006), “Internationall Marketing” by Bennett & Blythe (2002) and On Competition of Porter M. (1998) has been used for this project.

Many foreign investors are now interested to do business in telecom sector in Bangladesh which reveals that Bangladesh has become a significant hub for telecoms. It has been forecasted that the average revenue from telecoms sector will be Tk1500crore2 a year. Bangladesh is a country which is densely populated and also is a flat and easily extends able coverage. The infrastructure and Tele-density is low which on the other hand made the

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market a perfect place for telecom business. The demand is very high and the consumer base is very large but the investment is low because of the topographic layout. The government has a receptive foreign investment policy with no restrictions on repatriation of profit. Even though the current infrastructure is not much developed but it is suitable for foreign investment.

Bangladesh has a huge potential in WiMax and submarine cable which is a new technology in the country and has attracted the foreign telecom operators. Many foreign telecom operators are coming to Bangladesh to explore the potentiality of the technology.

The government is encouraging private sector to invest more in the industry as they think that the industry is playing a vital role in developing the socioeconomic structure of the country. And to ensure that, the government has taken several attempt. Giving private sector the license for fixed line telephone is one of those attempts. Due to the environmental facts, the foreign entrants should adjust their equipments according to demand of the environment

1.5 Definitions & Acronyms

Telecommunications, also called telecommunication, is the exchange of information over significant distances by electronic means. A complete, single telecommunications circuit consists of two stations, each equipped with a transmitter and a receiver. The transmitter and receiver at any station may be combined into a single device called a transceiver. The medium of signal transmission can be electrical wire or cable (also known as “copper”), optical fiber. The free-space transmission and reception of data by means of electromagnetic fields is called wireless.

1.6 Limitation

Difficulty in accessing latest data of internal operations.

It is difficult to provide customer related information regarding their service

To collect the secret information was very difficult for one because of the excessive nature of confidential maintained by the officials

Lacking of primary information

Survey on few numbers of people

Limitation of time

2.1(a) History of GrameenPhone Limited:

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The idea of providing wider mobile phone access to rural areas was originally conceived by

Iqbal Quadir, who is currently the founder and director of the Legatum Center

for Development and Entrepreneurship at MIT.He was inspired by the Grameen

Bank microcredit model and envisioned a business model where a cell phone can serve as

asource of income. After leaving his job as an investment banker in the United States,Quadir

traveled back to Bangladesh, after meeting and successfully raising money from New York

based investor and philanthropist Joshua Mailman, and worked for three yearsgaining support

from various organizations including Nobel Peace Prize laureateMuhammad Yunus of

Grameen Bank and the Norwegian telephone company, Telenor.He was finally successful in

forming a consortium with Telenor and Grameen Bank toestablish Grameenphone.

Quadir remained a shareholder of Grameenphone until 2004.Grameenphone received a

license for cellular phone operation in Bangladesh from theMinistry of Posts and

Telecommunications on November 28, 1996. Grameenphonestarted operations on March 26,

1997, the Independence Day in Bangladesh.Grameenphone originally offered a mobile-to-

mobile connectivity (widely known as GP-GP connection), which created a lot of enthusiasm

among the users. It became the firstoperator to reach the million subscriber milestone as well

as ten million subscriber milestone in Bangladesh.

2.2(a)Background of GrameenPhone Limited:

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Grameenphone widely known as GP is the leading telecommunications service provider

in Bangladesh. With more than 37.7 million subscribers (as of April 2012), Grameenphone is

the largest cellular operator in the country. It is a joint venture enterprise

between Telenor and Grameen Telecom Corporation, a non-profit sister concern of the

internationally acclaimed microfinance organization and community development

bank Grameen Bank. When Grameenphone started its journey cell phone was a luxury

product for everyone. Before the advent of Grameenphone cell phone was mostly used by

some urban people. Grameenphone started its journey with Village phone program. This

initiative was taken to empower rural women of Bangladesh. Grameenphone started their

journey on 26th March 1997.Since then Grameenphone has come a long way. It became the

first and only operator to cover 98% of the country’s people with network. Grameenphone

has built the largest cellular network in the country with over 13,000 base stations in more

than 7000 locations. It is the first company to introduce GSM technology. Grameenphone’s

the first operator to start the pre-paid service in September 1999.It also established 24 hour

call center, started offering value added services like VMS, SMS, fax and data transmission

services, international roaming service, WAP,SMS-based push pull services, EDGE, personal

ring back tone and many other products and services.

The technology used by GP can only be described as state of the art. GP’s Global System for

Mobile or GSM technology is the most widely accepted digital system in the world, currently

used by over 300 million people in 150 countries. GSM brings the most advanced

developments in cellular technology at a reasonable cost by spurring severe competition

among manufacturers and driving down the cost of equipment. Thus consumers get the best

for the least.

As a result GP is delivering the digital revolution to the doorsteps of the poor and

unconnected. By being able to connect to urban areas or even to foreign countries, a whole

new world of opportunity is opening up for the villagers in Bangladesh. Grameen Bank

borrowers who provide the services are uplifting themselves economically through a new

means of income generation while at the same time providing valuable phone service to their

fellow villagers. The telephone is a weapon against poverty.

2.3(a) Branding Grameenphone:

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http://www.assignmentpoint.com/business/human-resource-management/presentation-on-recruitment-of-grameenphone.html

The name or names that identify a company’s products can be very important

in pos i t i on i ng them . The b r a nd name d i s t i ngu i s hes a p roduc t f rom

compe t i t o r ’ s products. A strong brand identity creates major competitive

advantages. A brand tha t i s r ecogn i zed by buye r s encou ra ges r epea t

pu rchas es . G ramee nphone i s successful in its products branding.

Co rpo ra t e branding places primary emphasis on building brand identity using

the corporate name. Grameen phone has become a corporate name in telecommunication

business in Bangladesh. Corporate branding offers the advantage of using one

advertising and sales promotion program to support all of the firm’s products.

And it is often found in Grameenphone advertisements. Corporate branding has become a

branding strategy because the product offering is relatively narrow in

telecommunication business.

The Vision, the Mission and the Objective

Company Vision

“We are here to help”

Company Mission:

The vision will be achieved by

Connecting Bangladesh with ease and care

Being user-friendly

Providing value for money

Providing simple and timely connections

Having a right and understandable process

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Objectives of the GrameenPhone: GrameenPhone’s basic strategy is the coverage of

both urban and rural areas. The Company has devised its strategies so that it earns healthy

returns for its shareholders and at the same time, contributes to genuine development of the

country. In short, it pursues a dual strategy of good business and good development.

Serving the mass market is one of GP’s primary goals. By serving the general public as

opposed to niche markets, the Company plans to achieve economies of scale and healthy

profits. At the same time, service to the general public means connectivity to a wider

population and general economic development of the country. In contrast to the “island”

strategy followed by some companies, which involves connecting isolated islands of urban

coverage through transmission links, GrameenPhone builds continuous coverage, cell after

cell. While the intensity of coverage may vary from area to area depending on market

conditions, the basic strategy of cell-to-cell coverage is applied throughout GrameenPhone’s

network. In addition, GP has positioned itself to capitalize on the declining prices of

handsets, making its goal to serve the general public realistic.

The Purpose: GrameenPhone has a dual purpose to receive an economic return on its

investments and to contribute to the economic development of Bangladesh where

telecommunications can play a critical role. This is why GrameenPhone, in collaboration with

Grameen Bank and Grameen Telecom, is aiming to place one phone in each village to

contribute significantly to the economic benefit of the poor.

The Strategies: GrameenPhone’s strategy is coverage of both urban and rural areas. In

contract to the “island” strategy followed by some companies, which involves connecting

isolated islands of urban coverage through transmission links, GrameenPhone builds

continuous coverage, cell after cell. While the intensity of coverage may vary from area to

area depending on market conditions, the basic strategy of cell-to-cell coverage is applied

throughout GrameenPhone’s network.

The People: The people who are making it happen- the employees are young, dedicated

and energetic. All of them are well educated at home or abroad, with both sexes (gender) and

minority groups in Bangladesh being well represented. They know win their in hearts that

GrameenPhone is more than phones. This sense of purpose gives them the dedication and the

drive, production-in about five years- the biggest coverage and subscriber-base in the

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country. GrameenPhone knows that the talents and energy of its employees are critical to its

operation and treats them accordingly.

The Technology: GrameenPhone’s Global System for Mobile or GSM technology is the

most widely accepted digital system in the world, currently used by over 750 million people

in 150 countries. GSM brings the most advanced development in cellular technology at a

reasonable cost by spurring severe competition among manufactures and driving down the

cost of equipment. Thus consumers get the best for the least.

Company Service: GrameenPhone believes in service, a service that leads to good

business and good development. Telephony helps people work together, raising their

productivity. This gain in productivity is development, which in turn enables them to afford a

telephone service, generating a good business. Thus development and business go together.

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2.1(b)History of Robi :

Robi launched its operations on the 15 November, 1997 in Dhaka and on 26 March, 1998 in

Chittagong as Aktel. Its founding chairman is Late Mr. Zahiruddin Khan, an ex-commerce

minister. Aktel was formed as a joint-venture between Telekom Malaysia and A.K. Khan

Company. All along through its insception it was ranked as No.2 mobile operator and was

placed far behind the industry leader GrameenPhone in terms of revenue and no. of

subscribers. Aktel started investing heavily with funds from Telekom Malaysia (the majority

stake owner) on expanding its network in 2001 but the investment was far too inadequate in

comparison with GrameenPhone’s investment. Although customer base was increasing

heavily its position remained at No.2. Unlike GrameenPhone, Aktel kept very low in

marketing its brand. But from the end of 2004, Aktel spent heavily to market its brand all

over the media, outdoor and other marketing mediums. It was a huge success and the Aktel

brand became well established. Credit was given to the then Chief Operating Officer Mr.

Vijay Watson who is believed to be the mastermind behind the change and success of Robi.

In mid 2008 news broke out that A.K.Khan & Company was selling its 30% and Vodafone,

etisalat and NTT DoCoMo were among the potential buyers. Mr. AK Shamsuddin Khan,

Chairman A.K.Khan & Company and Mr. Salahuddin Kasem Khan, former Chairman of

Aktel and Managing Director of A.K.Khan & Co Ltd represented the sellers After months of

negotiation NTT DoCoMo sealed a deal with A.K.Khan & Company for US $ 350mln on

June 2008. The deal was completed on September 19, 2008.

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2.2(b)Background Robi Axiata Limited:

Robi Axiata Limited is a dynamic and leading countrywide GSM communication solution

provider. It is a joint venture company between Axiata Group Berhad, Malaysia and NTT

DOCOMO INC, Japan. Robi Axiata Limited, formerly known as Telekom Malaysia

International (Bangladesh), commenced its operation in 1997 under the brand name Aktel

among the pioneer GSM mobile telecommunications service providers in Bangladesh. Later,

on 28th March, 2010 the company started its new journey with the brand name Robi.

Robi is truly a people-oriented brand of Bangladesh. Robi, the people's champion, is there for

the people of Bangladesh, where they want and the way they want. Having the local tradition

at its core Robi marches ahead with innovation and creativity. To ensure leading-edge

technology, Robi has the international expertise of Axiata and NTT DOCOMO INC. It

supports 2G voices, CAMEL Phase II & III and GPRS/EDGE service with high-speed

Internet connectivity. Its GSM service is based on a robust network architecture and cutting

edge technology such as Intelligent Network (IN), which provides peace-of-mind solutions in

terms of voice clarity, extensive nationwide network coverage and multiple global partners

for international roaming. It has the widest International Roaming coverage in Bangladesh

connecting 550 operators across 205 countries. Its customer centric solution includes value

added services (VAS), quality customer care, easy access call centers, digital network

security and flexible tariff rates.

With its strengths and competencies developed over the years, Robi aims to provide the best

quality service experience in terms of coverage and connectivity to its customers all over

Bangladesh. Together with its unique ability to develop local insights, Robi creates distinct

services with local flavor to remain close to the hearts of its customer.

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2.3(b)Brand image Robi Axiata Limited:Robi Axiata Limited started its commercial operations as a GSM cellular phone operator with

the objective of offering state-of-the-art and modern telecommunication services to the

people of Bangladesh at competitive prices is unique. Our new brand is people-centric. We

exist because of them. Anything is now possible. Any new idea is apprecitated no matter

where it comes from within the organization. It is all in our own hands now.”

To help people understand the idea mentioned above, the company described the new brand

in terms of purpose and principles.

Vision

To be the most preferred GSM cellular service provider in Bangladesh.

Mission

To provide total customer satisfaction as the company strives to become the most preferred

GSM cellular service provider in Bangladesh. TMIB will achieve this through developing

people, products, and services of the highest quality and meeting the needs of its employees,

shareholders and the nation.

1) Total quality objective

2) Total commitment to the needs of our customers,

3) Following the highest ethics standards,

4) Continual improvement of all work processes,

5) Permanent improvement of all the employees knowledge and skills,

6) Securing quality of the service to match the quality of services offered by the world’s

most successful companies in the field

7) Preserving the Company’s leading position in the national market of mobile

telecommunications.

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SWOT Analysis:In comparison with the top two telecom companies in Bangladesh I tried to come up with a

SWOT analysis of Robi Axiata Ltd. The SWOT Analysis is described below:-

Strengths:

• Strong Capital base

• Experienced management team

• Diversified funding sources

• Outstanding market share

• Corporate shareholding structure

• Diversified business exposure

Weaknesses:

• Significant deterioration in Asset

Quality having adequate provisions

• High ownership concentration

• Declining financial performance

• MIS needs further development

• Single unit Financial Institution

• High turnover in top & mid tier

management

Opportunities: Threats:

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• Business expansion opportunities

• SME financing

• Fund raising through new

financial products

• Capital market operation

• Scope of product diversification

• Commercial banks portfolio

• Expansion to lease financing

• Increasing local and foreign cost of fund

• New entrants into the market

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2.1(c) History of Airtel :Bangladesh was the first South Asian country to adopt cellular technology back in 1993 by

introducing Advanced Mobile Phone System (AMPS). In fact, the first mobile license was

issued back in 1989 but it took several years to launch the services. The network coverage

and number of subscribers had remained very limited due to exorbitantly high subscription

cost and call tariff. The telecommunications sector in Bangladesh is one of the fastest

growing industries and has helped boost the economic and social development in the country.

Since then, the country's cellular industry never looked back, now it has curved into the prime

communications provider during the last decade as sub sector within telecom sector.

This sub-sector has created new opportunities by generating employment, facilitating

education and health services for common people. Now there are six telecom operators

successfully running business in Bangladesh. These are: Grameen Phone, Robi, Airtel,

Banglalink, Citycell, and Teletalk. The majority shares of all these companies except Teletalk

are held by multination telecom corporations. Airtel is the sixth mobile phone carrier to enter

the Bangladesh market, and originally launched commercial operations under the brand name

"Warid Telecom" on May 10, 2007.[2] Bharti Airtel Limited took management control of the

company and its board, and rebranded the company's services under its own Airtel brand

from December 20, 2010. The Bangladesh Telecommunication Regulatory Commission

approved the deal on Jan 4, 2010

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2.3(c) Background Airtel Limited:

In January 2010, Bharti Airtel Limited, Asia’s leading integrated telecom services provider,

acquired 70% stake in Warid Telecom, Bangladesh, a subsidiary of the UAE-based Abu

Dhabi Group.

Bharti Airtel is making a fresh investment of USD 300 million to rapidly expand the

operations of Warid Telecom and have management and board control of the company. This

is the largest investment in Bangladesh by an Indian company. Dhabi Group continues as a

strategic partner retaining 30% shareholding and has its nominees on the Board of the

Company.

The new funding is being utilised for expansion of the network, both for coverage and

capacity, and introduction of innovative products and services. As a result of this additional

investment, the overall investment in the company will be in the region of USD 1 billion.

This is Bharti Airtel’s second operation outside of India. The company launched its mobile

services in Sri Lanka in January 2009 on a state-of-the-art 3.5G network. The company

crossed the 1 million customers mark within six months of launch on the back of innovative

offerings as well as rapid expansion of network coverage and distribution.

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2.3© Brand image of airtel :

Vision:

To become the essential communication provider in Bangladesh of high quality voice and

innovative data services by offering affordable products and services to all market segments

and to become an integral part of their everyday lives.

airtel Telecom's brand values include:

•Simplicity

•Honesty

•Innovation

•Quality

•Dynamic

•Friendly

•Establish and sustain as a customer centric organization

•Provide high quality and innovative communication services, through state of theart

infrastructure and a team of professionals

•Continuously develop, motivate and empower our people

•Achieve profitable growth for all our stakeholders

SWOT Analysis for Airtel Bangladesh Limited:

A SWOT has been done for the better understanding about the ongoing working process and

areas where improvement can be possible. SWOT analysis is a strategic planning method

used to evaluate the strengths, weaknesses, opportunities, and threats involved in the

company. There are so many opportunities that can help the company to be more flourished

in the telecom industry of Bangladesh.

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Strength

•Global brand image

•Low call rate

•Established management

•Competitve pricing strategy

•Dedicated and customer oriented employees

•Strong economic and financial base

Weaknesses

•Limited coverage

•Poor Edge/GPRS service

•Weak network

•Lack of communications among departments

•Poor distribution channel in rural areas

Opportunities

•Better 3G offers

•Increasing commercial usage

•Increasing number of active cell phone users

•Government‟s planning of introducing 4G Network

•Promoting m-commerce service

Threats

•Price wars among compitiors

•Government regulations and political instability

•Better quality service provided by other companies, specially network coverage

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2.4 Distinctiveness:

System :GSM System :GSM System :GSM

Frequency (MHz) :900 Frequency (MHz) :900 Frequency (MHz) :900

market share: 43.83% market share:18.17% market share:6.13%

Call Rate: 75

paisa/min+VAT

Call Rate: 1.5 paisa/sec Call Rate: 0.79TK/min

3G Download Speed :0.4

Mb/s


Mb/s


Mb/s

Cell Towers : 824,297 Cell Towers : 356,961 Cell Towers : 213,321

Signal Readings :

5,186,324,530

Signal Readings :

4,564,214,432

Signal Readings :

3,456,241,320

customer service: 24 hour customer service: 24 hour customer service: 24 hour

Online Customer Service Online Customer Service Online Customer Service

Prepaid and Postpaid Packages Prepaid and Postpaid Packages Prepaid and Postpaid Packages

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http://www.grameenphone.com/personal/prepaid-postpaid



http://www.grameenphone.com/personal/customer-service/online-customer-service



3.1 Survey Findings and Analysis:

After conducting survey from 40 people we found some important information about customer preference in choosing mobile operating brand. In this section we will show the result of the qoutanaire and analysis them briefly.

Q No. 1: Customer Occupation:

Occupation Frequency RF RF(%) CRFStudent 21 0.525 53% 53%Service holder 12 0.3 30% 83%Business man 4 0.1 10% 93%Housewife 0 0 0% 93%Retired 0 0 0% 93%Other 3 0.075 8% 100%Total 40 1 100%

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Studen

t

Servic

e holder

Business

man

Housewife

Retired

Other0%

10%

20%

30%

40%

50%

60%

Series1

Chart 1: Customer Occupation

Analysis: The question about occupation was asked for understanding the relation between the purchase intention and choice of connection based on customers’ occupation. From the above charts and table we come to know that, 53% of the people of survey were student, 30% Service holder, 10% Business man and 8% belong to the other occupation.

Q No. 2: Most preferred Mobile Telecom Brand: This is the most necessary question of this survey. The intention of knowing the name of the operator that customers use is to analyze all aspects about competitive operators available in Bangladesh elaborately and compare them with top three brands to come to a decision.

Preferred Brands Frequency RF RF(%) CRFGRAMEENPHONE 14 0.35 35% 35%ROBI 9 0.225 23% 58%AIRTEL 7 0.175 18% 75%BANGLALINK 6 0.15 15% 90%TELETALK 4 0.1 10% 100%CITYCELL 0 0 0% 100%Total 40 1 100%

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GRAMEENPHONE

ROBI

AIRTEL

BANGLALIN

K

TELET

ALK

CITYCELL

0%5%

10%15%20%25%30%35%40%

Series1

Most preferred Mobile Telecom Brand

Analysis: Among 40 respondents GP is in the first position based on number of users which is 35%. Then Robi is in the 2nd position with 23%, and Airtle is in the 3th position with 18%. In our report we are going to discuss about these three leading brands.

Q No. 3: Mobile Package Customer Use:

Package Frequency RF RF(%) CRF

Prepaid 38 0.95 95% 95%

Post Paid 2 0.05 5% 100%

40 1 100%

Analysis: Among 40 respondents 95% people use Prepaid package and 5% use postpaid package.

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95%

5%

Package Customer Use

PrepaidPost Paid

Q No. 4: Number of SIM cards Customers are using:

SIM Frequency RF RF(%) CRF

Single-SIM 22 0.55 55% 55%Duel-SIM 18 0.45 45% 100%

40 1 100%

Analysis: Among 40 respondents 55% customers use one connection and 45% use 2 operators.

Q No. 5: Who influenced you to use the connection: The question was included in the survey to inquire the influential group while buying a connection. These groups can highly affect the person’s brand and package choice. We will identify which type of group is the highest influential.

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55%

45%

SIM cards Customers are using

Single-SimDuel-Sim

Influential Group Frequency RF RF(%) CRFYourself 18 0.45 45% 45%Friends 11 0.275 28% 73%Family members 7 0.175 18% 90%Relatives 2 0.05 5% 95%Employee of the company 0 0 0% 95%Others 2 0.05 5% 100%Total 40 1 100%

Yourself Friends Family members

Relatives Employee of the

company

Others0%5%

10%15%20%25%30%35%40%45%50%

Series1

Influential Group

Analysis: Most of the people choose the mobile operator with their own influence. In our say we found that 45% people choose the brand by their own. 28% of people got influenced by the friends,18% by family and 2% by relatives and others.

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Q No. 6: Customer’s mobile connection usage duration: The question on connection duration will help to understand that for how long the consumers been with the particular operator they are using. From this we can easily assume their loyalty towards that mobile operator.

Duration Frequency RF RF(%) CRF

Less than 1 year 2 0.05 5% 5%1 year 5 0.125 13% 18%

2 years 6 0.15 15% 33%

3 years 10 0.25 25% 58%

3 years and adove 17 0.425 43% 100%

Total 40 1 100%

Analysis: About 43% of people in our survey using mobile operator for 3years and above. 23% are using for 3 year, 15% 2years, 13% year and 5% less than 1 year

Q No. 7: Which factor/s you have considered at the time of purchasing the connection: This question was asked to know which factor/s affects the customers most while purchasing the connection. Another objective was to know the high demanding factor while having any connection.

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Less than 1 year

1 year 2 years 3 years 3 years and adove

0%5%

10%15%20%25%30%35%40%45%

loyalty towards the mobile operator

RF(%)

Factors Frequency RF RF(%) CRFCall rate 13 0.325 33% 33%

Network 14 0.35 35% 68%

Service 7 0.175 18% 85%

Brand image 4 0.1 10% 95%

Others 2 0.05 5% 100%

40 1 100%

Analysis: From this chart we found out the factors affecting purchase decision. We can see that customers rated network, call rate and service as the most important factor while buying any connection. Especially GP users preferred network and AT users prefer call rate as the most important factor for buying the connection.

Q No. 8: The major reason of my satisfaction to the mobile operator is: This question will identify the factors that affected the most for the satisfaction of the customers towards the operator.

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Call rate Network Service Brand image Others 0%

5%

10%

15%

20%

25%

30%

35%

Factors in choosing mobile operator

RF(%)

Factors Frequency RF RF(%) CRF

Low call rate 10 0.25 25% 35Well network coverage 15 0.375 38% 63%Good internet service and Packages 6 0.15 15% 78%Good brand image 5 0.125 13% 90%Number of FNFs 2 0.05 5% 95%Others 2 0.05 5% 100%Total 40 1 100%

Low call r

ate

Well netw

ork cove

rage

Good inter

net ser

vice a

nd Pack...

Good brand im

age

Number of F

NFs

Others0%

5%

10%

15%

20%

25%

30%

35%

40%

Series1

Reasons of Customer's satisfaction to the mobile operator

Analysis: From the chart we can see that 38% users chosen network, 25% chosen call rate, 15% chosen service,13% chosen Brand Image,5% chose fnf and other services as their main factor for satisfaction.

Q No. 9: The major reason of my Dis-satisfaction to the mobile operator is:

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Factors Frequency RF RF(%) CRF

Poor network 10 0.25 25% 35High call rate 12 0.3 30% 55%

Useless SMS 8 0.2 20% 75%

Poor internet Offers 5 0.125 13% 88%

Poor customer care service 3 0.075 8% 95%

Others 2 0.05 5% 100%

Total 40 1 100%

Note: Scaling Notations 1= Strongly Agree

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Poor netw

ork

High ca

ll rate

Useless

SMS

Poor inter

net Offers

Poor custo

mer car

e serv

ice

Others

0%

5%

10%

15%

20%

25%

30%

35%

Series1

Reasons of Customer's Dissatisfaction to the mobile operator

2= Agree 3= Neutral 4= Disagree 5= Strongly Disagree

Q No. 10: Network Coverage of my mobile operator is very wide: Quality of network matters the most if anyone wants to use a mobile operator. This was the reason to include the question about the quality of the network that the customers are using.

Preferred Brands 1 RF 2 RF 3 RF 4 RF 5 RF UserGRAMEENPHONE

3 21% 6 43% 5 36% 0 0% 0 0% 14

ROBI 0 0% 3 33% 5 56% 1 11% 0 0% 9AIRTEL 0 0% 0 0% 2 29% 3 43% 2 29% 7

Analysis: Those who rated scale “1” for their connections’ network coverage is only GP. Among all of them GP is in the 1st position. Other than almost all operators users have some issues with their network coverage that means they rated “4” for that actor. On rate “4” there are Robi and AT. However, there are a few users of Robi and Airtle who are dissatisfied with their network coverage. But in the “neutral” scale Robi is in the fast and Airtle the last.

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1 2 3 4 50%

10%

20%

30%

40%

50%

60%

GRAMEENPHONEROBIAIRTEL

Network Coverage

Q No. 11: Call Rate of the connection is standard: According to our survey “Call Rate” is the second most important feature for determining customer satisfaction. This question was included to identify which operator’s customers are most satisfied with their call rate.

Brand 1 RF 2 RF 3 RF 4 RF 5 RF UserGRAMEENPHONE 0 0% 0 0% 7 50% 6 43% 1 7% 14ROBI 0 0% 1 10% 6 60% 1 10% 2 20% 9AIRTEL 0 0% 2 29% 5 71% 0 0% 0 0% 7

Analysis: From the chart and table we can see that 29% users are satisfied with the AT call rate. That means among 7 users 2 users are satisfied. Robi users are neutral and sometimes dissatisfied with their connection. AT is the main competitor of Robi and, GP is in the nearer position to Robi in competition.

Q No. 12: Price of SIM is moderate

The question was included in the survey to identify which operator’s SIM price is satisfactory to the customers. From this survey we can recognize the affordability of the users in case of SIM price.

29

1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%

80%


Call Rate

Brands 1 RF 2 RF 3 RF 4 RF 5 RF UserGRAMEENPHONE 0 0% 2 14% 12 86% 0 0% 0 0% 14ROBI 0 0% 3 33% 6 67% 0 0% 0 0% 9AIRTEL 0 0% 2 29% 5 71% 0 0% 0 0% 7

Price of SIM

Analysis: In terms of price of a SIM card, Robi takes the first position because it has 33% satisfied and 67% neutral customers. Besides, GP takes the second position because it has 86% neutral and 14% satisfied customers.

Q No. 13: Free Talk Time & Bonus Facilities are good: This question was included to understand the level of satisfaction of the customers in terms of free talk time and bonus facilities of the operators they use. In addition it will help to identify which operator satisfied their customers the most based on that factor.

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1 2 3 4 50%

10%20%30%40%50%60%70%80%90%


Brands 1 RF 2 RF 3 RF 4 RF 5 RF UserGRAMEENPHONE

0 0% 4 29% 8 57% 2 14% 0 0% 14

ROBI 0 0% 4 44% 5 56% 0 0% 0 0% 9AIRTEL 2 29% 2 29% 3 43% 0 0% 0 0% 7

Analysis: From the chart we can see that most of the users are neutral and there are some satisfied customers.

Q No. 14: I don’t have to walk or travel a lot to find my mobile operator’s recharge points: Sometimes customers have to go a long way to find their operators’

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Free Talk Time & Bonus Facilities

1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%


recharge point which they don’t want. So this question was added to identify which operator’s recharge point is nearer to the customer’s location of work or living.


Analysis: According to this factor GP is in good position as most of the GP customers are satisfied with the location of recharge point. However, Robi and AT are the main competitors of GP in terms of this factor.

Q No. 15: Friends & Family (F&F) Number Facility my mobile operator provides is good enough: This question was asked to inquire whether the customers were satisfied with their operator’s FnF facility or not. This will also reveal about the quality of that facility as well as the name of the operator that provided the most satisfactory FnF facility.


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1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%

80%


F&F Facilities

Availability of recharge points

1 2 3 4 50%

10%20%30%40%50%60%70%80%90%


Analysis: From the above chart and table we can see that 2% GP users are dissatisfied with the FnF facility and 70% remains neutral about it. Here, Robi and AT have the higher satisfied customers. So, Robi and AT are the main competitors of GP in terms of FnF facility.

Q No. 16: I am satisfied with the quality and facility of Internet & GPRS Connection: 3G is new initiative in Bangladesh. So, this question will help us to know the satisfactory level of the customers with the 3G internet data service. It will also come up with a result that which operator provides the best 3G internet facility among all in Bangladesh.


2 14% 6 43% 6 43% 0 0% 0 0% 14

ROBI 1 11% 4 44% 4 44% 0 0% 0 0% 9AIRTEL 0 0% 2 29% 5 71% 0 0% 0 0% 7

Analysis: As 3G is a new issue nowadays, everyone is not aware of it and using it wisely. From the chart we can see that GP, BL and other operators are in the Neutral level where most of the GP and Robi users are in the highly satisfactory level. Here, GP is the leader.

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Internet & GPRS Facilities

1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%

80%


1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%

80%


Q No. 16: The TVCs are actually making a difference for staying with the operator: For better promotion and creating attention to the customers all the operators are using huge TVC promotional activities. Sometimes these activities influence the customers most to use that operator’s connection. So to identify which operator is actually making any difference for staying with or having the connection, this question was included to the survey.


0 0% 5 36% 9 64% 0 0% 0 0% 14

ROBI 0 0% 4 44% 5 56% 0 0% 0 0% 9AIRTEL 0 0% 0 0% 3 43% 3 43% 1 14% 7

Analysis: GP’s TVCs are making the difference to the customers for staying and they are satisfied with them that is 36%.Robi is also making very good awareness through TVCs which is 44% satisfied. They both have high neutral customers GP 64% and Robi 56%. But ii is Airtle is making very little difference through TVCs which is only 14% ‘highly dissatisfactory.’ 43% of their customers are dissatisfied and 43% neutral.

34

1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%


The TVCs are actually making a difference for staying with the operator

1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%

80%


Q No. 18: The customer care department (Call Center) is helpful and informative: Call center is helpful for numerous fruitful information that a customer can face while using the operators connection. To identify which operator’s customer care department is the most helpful according to the customers, this question was included.


1 7% 2 14% 9 64% 1 7% 1 7% 14

ROBI 0 0% 2 22% 6 67% 1 11% 0 0% 9AIRTEL 0 0% 1 14% 5 71% 1 14% 0 0% 7

Analysis: From the chart and table we can see that GP has the highly satisfied customers for customer care (call center) service which is 7%and only 14% are satisfied. So, GP is the main competitor of Robi and Airtle.

Note: Scaling Notations

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Customer care facilities

1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%

80%


1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%


1= YES 2= NO

Q No. 19: I want to switch to other operator: This question was added to know what percentage of customer wants to switch to other operator from their existing one. In addition, we also wanted to know that to which operator they want to switch as well as the reason behind switching decision.

Analysis: From the above table we can see that 79% of GP users, 57% of AT users and 67% of Robi users don’t want to switch their existing connection. So, here Airtle is in the 3rd position. Again, total 33% of Robi, 21% of GP users and total 43% of AT users want to switch from their existing connection. So, here Airtle is in an alarming position from which they can lose customers or have churn out intentions.

Q No. 20: I am satisfied with my mobile operator: This question was included to inquire about the customers’ satisfaction towards the operator. It will also result about their satisfaction with the operator they use. The higher they rate the higher their satisfaction and loyalty level.

36

I want to switch to other operator

1 20%

10%

20%

30%

40%

50%

60%

70%

80%

90%


Brands 1 RF 2 RF UserGRAMEENPHONE

3 21% 11 79% 14

ROBI 3 33% 6 67% 9AIRTEL 3 43% 4 57% 7

Analysis: From the above table we can see that 79% of GP users, 57% of AT users and 67% of Robi users are satisfied with their existing connection. So, here Airtle is in the 3rd position. Again, total 33% of Robi, 21% of GP users and total 43% of AT users are not satisfied with their existing connection. So, here Airtle is in an alarming position from which they can lose customers or have churn out intentions.

4.1 Conclusion:

37

I am satisfied with my mobile operator

1 20%

10%

20%

30%

40%

50%

60%

70%

80%

90%


Brands 1 RF 2 RF UserGRAMEENPHONE

11 79% 3 21% 14

ROBI 6 67% 3 33% 9AIRTEL 4 57% 3 43% 7

Grameenphone is the largest mobile phone operator in the country undoubtedly. The network of this phone never makes people unhappy. Whenever and wherever we go, we can easily get the network of this SIM. But the problem is that, the call rate is really very expensive and for this reason, many people especially students or poor people cannot use this sim. Grameen phone is mostly used by businessman or job holders. And it is the most strong telecommunication company in our country. Robi, is another very popular telecommunication company in our country. It is used by all classes’ people in our country. Network connection is also very strong but not more than GP. But the problem occurs sometimes in internet settings. People sometimes really find complex by using internet package but day by day internet connection become so improved that now a days Rabi is also represents itself as one of the best telecommunication company in our country. Airtel is the most popular telecommunication company in our country among the young generation. Most of the students are taking Airtel as their sim card because the call rate is so cheap so young generation always feel attract to use Airtel. Airtel also gives many attractive offers so that people always choose Airtel without any botheration. But the main problem is, Airtel provides vary bad network so that sometime even most of the time people getting tired and irritated. So we can see that all the telecommunication company in our country have advantages as well as disadvantages. People choose their sim card according their needs and abilities. Telecommunication companies in our country are now very demandable and competition is also getting high day by day.

4.2 Recommendation:

To the Grameenphone authority:

38

Network Availability: Sometimes poor network is the vital problem for the subscribers due to some planned works. So it should be solved technically to ensure the users to enjoy full fledge of networks. If GP is having lack of technical equipment or technical hands they should immediately fulfilled the desired necessity.

Charge: Grameenphone provides less facility for the subscribers. It should charge the users the least amount as its intention should be in long run, economies of scale.

Hotline: GP should train its customer relation people well enough to solve the problems customers on the hotline. Call waiting time should be minimized. Also number of customer relation employees should be increased in relation to increase in sales.

Availability of Connection: Sometimes users’ dissatisfaction arises due to unavailability of connection facility, because no one usually can get connected at once while there is some planned work or technical up gradation. This problem should be immediately solved to increase customer satisfaction.

Others:

- Other problems like unavailability of Pre-Paid cards should be resolved.

- GP can add disaster SMS for the customer.

- The company should efficient courier services to reach the bill to the right customer as soon as possible.

- Number of BTS station needs to increase to increase the capacity.

- Credit Control system should be improved

To the Robi authority:

Robi could work more on making the salary and benefits they provide to make them more attracting as employees find this factor very important to boost their satisfaction level. Robi could work more on their premises to protect against natural calamities, so that employees feel safe as it is a very essential in employee satisfaction

Robi could introduce Casual leave as many employees refered to do so. They could increase paternity leave. Robi could also increase compassionate leave, as 3 days are not enough for someone to recover from shock of death of close people.The company could conduct salary review more oftenn as some employees are not satisfied with the salary review. This will help

39

the company satisfy their employees.Other than providing benefits and facilities more often, that rise the cost of the company, Robi could work more on conducting some Employee Involvement Programs to sustain their employees. Getting employees' ideas and getting their involvement is critical in rapidly changing world. If the company is going to be competitive, it's mandatory to involve not just hands, but the ideas from everyone in your organization.

The company can also provide recognition to their employees through a lot of activities at minimum cost. A recognition program does not have to be expensive. The structure of a recognition program is limited only by your imagination. An effective program has the following components:

• Fairness

• High visibility and consistency.

To the Airtel authority:

To be fair, a program must not favor one employee over another, merely because of his or her position within the organization, or his relationship with his supervisor. There must be an effective means of identifying employees who should be recognized. In many programs, there is an easy means by which employees can nominate others for recognition. As a supplement to a nomination program, supervisors can keep lists of notable employee achievements.

According to my opinion there is a slight discrimination among departments at Robi Axiata Limited. This may be a critical point for the organization. Therefore, Robi could work to diminish the sense of discrimination among employees, to keep them satisfied.

After analyzing all probable prospect of Airtel network campaigns I made some recommendations for them. Hope that if they put some consideration on these recommendations it will be more effective for them to promote their products among the youth of Bangladesh.

• The campaigns could be more successful for the company if Values Added Service was promoted through the network campaigns.

• Not any of their advertisement talked in details about the packages they offered for the customers.

• Less promotional activity in the urban area as they did maximum promotional campaigns in rural area. They needed to do some rally promotional activity in urban areas.

• As they started giving advertisement before the Ramadan month so it was effective for them but they needed to continue their campaigns even after the Ramadan also.

40

• They could keep renowned famous person in the arrangement of artist in this campaign. The youngster was not that much familiar face in TV.

• Airtel use new strategies of branding below the line must not be the only way of escalating their visibility. Above the line efforts are equally required to be taken.

At the same time they provide huge bonus talk time or SMS to the customers usable for short time period. Before they notice they bonus they validity almost expired as a result customers became dissatisfied. So they need to increase the time period of this usable bonus talk time or SMS.

• Airtel not supposed to be throwing unnecessary SMS to the subscribers. It makes the consumers bothered while a SMS is received during working hours. SMS can be sent on weekend, holidays, during festivals time or in off peak hour so that it does not make the customers disappointed.

APPENDED PARTS

41

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telecommunication in bangladesh

Education