City Cell

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Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of Bangladesh. It is the only CDM net!or" operator in the country. s of # March $%%&' Citycell(s total mobile subscriber base is #.)* million' up #+, per cent or *&%'%%% from t!o years ago' gi-ing it the best gro!th rate of the company till date. Citycell is currently o!ned by .ingtel !ith /)0 sta"e and the rest ))0 o!ned by Pacific 1roup and 2ar 3ast Telecom. By the end of $%%, Citycell had refurbished its old brand identity and introduced a ne! logo and corporate identity4 the ne! logo is -ery reminiscent of the old logo. 5o!e-er the slogan has remained unchanged 6because !e care6 s of pril $%#$' Citycell has #.&%# million subscribers Cellphone carrier Citycell is set to transform itself as a 1.M operator early $%#+ after t!o7 decades of merican technology failed to re-erse the struggling firm(s fortune' a top official has said. Mehboob Cho!dhury' the company(s chief e8ecuti-e officer (C39)' said it !ill ta"e almost si8 months to s!itch o-er from CDM to 1.M technology' pending "ey appro-al from the telecom regulator. The Bangladesh Telecommunication :egulatory Commission (BT:C) said it !ould not gi-e its stamp of appro-al for the technology change unless it pays the $g licence rene!al charges. Citycell' ma;ority controlled by .ingapore(s .ingTel' has the lo!est mar"et share in the country !ith ;ust #.*<< million users. Bangladesh(s si8 mobile operators had a user base of <+ million till =une $%#$. The operator(s mar"et share has seen a path of decline o-er the years as it has lost out to its ri-als' despite offering lo!est call rate. Its mar"eting of unchangeable handsets and .IM cards has made it unattracti-e to customers' forcing them to s!itch o-er to 1.M operators. But Mr Cho!dhury !ould not say !hether the adoption of ne! technology !ould help regain its

lost glory as the country(s oldest !ireless carrier. Mr Cho!dhury said .aturday his company is planning to in-est in erecting more Base Transcei-er .tation (BT.). People familiar !ith the situation said it !ould need to pump T" #* billion for the ne! technology. 9fficials at the Bangladesh Telecommunication :egulatory Commission (BT:C) said the commission has already ta"en a decision to allo! the operator to mo-e to the 1.M technology. BT:C chairman >ia hmed said Citycell(s appro-al !ould depend on the deposits of its second installment for $1 licence rene!al' the payment of !hich must be made by ugust +#. t present' all operators e8cept Citycell are gi-ing mobile phone ser-ice by using 1.M technology. CDM (code di-ision multiple access) is a ?. technology that does not let the subscribers choose handsets' !hile the 3uropean technology 1.M (global system for mobile communications) pro-ides clients fle8ibility. The Citycell boss said that his customers !ill ha-e open both option' for choosing :IM or .IM card. t present' Citycell has &*% BT.' although other mobile phone companies ha-e more than +'%%% stations. The oldest operator of the country has #% M5@ spectrum in the &%% M5@ CDM band' !hile other 1.M based operators are using spectrum of <%% and #&%% band. Citycell is the first mobile operator in Bangladesh and launched operations !ith the name of Bangladesh Telecom Ltd. It got licence in =uly #<&<.

Citycell is currently o!ned by .ingtel of .ingapore !ith a /) per cent sta"e' local Pacific 1roup !ith /) per cent' and 2ar 3ast Telecom' a 5ong Aong7based =apanese company' controls the rest #% per cent.

Communication in Bangladesh is based on Telephone' mobile communication' TB Broadcast' :adio' Internet etc. Three types of radio broadcast stations4 M#)' 2M #+ and short!a-e $. There are +,* Internet hosts !ith #% I.PCs and /)%'%%% internet users as of the year $%%*. Telephone density is less than # per #%% persons. Mobile cellular density is #+ per #%% per person. The country is introducing digital systems' trun" systems !hich include B52 and ?52 micro!a-e radio lin"s and some fiber optic lin"s. The country has a lin" to 3urope !ith .3 7 M37D37/ fiber optic submarine cable. (CI Dorld 2act Boo" $%%&) -M3T59D9L91E De ha-e conducted the literature search connected to the topic to support and direct the research. This search !as mainly conducting on the ?ni-ersity databases' =ournal databases' Library =ournals' !ebsites and Te8tboo"s. De ha-e searched the databases pro-ided by ?ni-ersity library access' li"e 3merald' Business Insight' BIFInform' 1lobal Information Inc (professional :esearch reports) and search engines li"e 1oogle scholar and uni-ersity special search engine connected to all databases and te8tboo"s. The "ey !ords mainly used !ere Bangladesh Telecom industry' Telecom future' Trends in Telecom' Bangladesh telecom Mar"et. In the full range of articles and ;ournals on the sub;ect of internationals mar"eting' in-esting in a ne! mar"et' the De ha-e found one of them -ery useful on the sub;ect of GBangladesh Telecom Brief $%%/H This paper tells the inside of offering and the potential !hat Bangladesh mar"et offers' not e8actly the same sub;ect but one ma;or side of our paper has the sub;ect of same interest. The Theoretical 2rame!or" has been created !ith the help of some te8t boo"s on International Mar"eting and mar"eting in general. Te8t boo"s of mar"eting such as GInternational mar"etingH

by Cateora I 1hauri ($%%*)' GInternationall Mar"etingH by Bennett I Blythe ($%%$) and 9n Competition of Porter M. (#<<&) has been used for this pro;ect. - Telecom Infrastructure in Bangladesh Many foreign in-estors are no! interested to do business in telecom sector in Bangladesh !hich re-eals that Bangladesh has become a significant hub for telecoms. It has been forecasted that the a-erage re-enue from telecoms sector !ill be T"#)%%crore$ a year. Bangladesh is a country !hich is densely populated and also is a flat and easily e8tends able co-erage. The infrastructure and Tele7density is lo! !hich on the other hand made the mar"et a perfect place for telecom business. The demand is -ery high and the consumer base is -ery large but the in-estment is lo! because of the topographic layout. The go-ernment has a recepti-e foreign in-estment policy !ith no restrictions on repatriation of profit. 3-en though the current infrastructure is not much de-eloped but it is suitable for foreign in-estment. Bangladesh has a huge potential in DiMa8 and submarine cable !hich is a ne! technology in the country and has attracted the foreign telecom operators. Many foreign telecom operators are coming to Bangladesh to e8plore the potentiality of the technology. .ome interested international telecom operators !ho !ant to start a business in Bangladesh are ?A7based 9range Telecom' .outh Aorean .A Telecom and ? 3Cs 3tisalat. The go-ernment is encouraging pri-ate sector to in-est more in the industry as they thin" that the industry is playing a -ital role in de-eloping the socioeconomic structure of the country. nd to ensure that' the go-ernment has ta"en se-eral attempt. 1i-ing pri-ate sector the license for fi8ed line telephone is one of those attempts. Due to the en-ironmental facts' the foreign entrants should ad;ust their eJuipments according to demand of the en-ironment - T:3KD IK T3L3C9M M :A3T IK B K1L D3.5 BI. .hrapnel' has launched its Bangladesh Mobile Telecommunication' $%%) report. :eport author Mr Priyam .hah e8plains that BangladeshCs mobile phone mar"et has achie-ed e8ceptional gro!th since the beginning of $%%/' registering a massi-e #%%0 gro!th in its

subscriber base during $%%/' and #+,0 during $%%). This trend is forecast to continue o-er the coming years' bringing the subscriber base to )&.$ million by $%#%. ccording to Mr .hah' recent gro!th in the Bangladesh mobile mar"et can be attributed to factors such as the deregulation of the telecommunication sector' lo! le-els of tele7density' inadeJuate fi8ed phone infrastructure' high competition follo!ing the entry of t!o ne! operators (Banglalin" and Teletal") and' particularly' massi-e foreign direct in-estment (2DI) by telecom giants li"e Telenor' Tele"om Malaysia (TM)' 9rascom' .ingTel' and most recently by ? 37 based Darid Telecom. Mr .hah e8plains that foreign operators' in collaboration !ith local partners' ha-e been !or"ing !ith the infrastructure to remo-e entry barriers and ma"e mobile telephony more affordable and !iden the base of mobile subscribers. Mobile Price War ccording to Mr .hah' the entry of Banglalin" in 2ebruary $%%) has spar"ed a price !ar. Banglalin"Cs attracti-e launch offer included a ne! connection and handset at a lo! start7up cost of ?.L)#. 2ollo!ing Banglalin"' three other pri-ate operators M 1rameen Phone' "tel and CityCell M ha-e also come up !ith -arious -alue7added offers resulting in an intense price battle. The de-elopment of a competiti-e mobile phone mar"et is e8pected to prompt an easing in cellphone tariffs going for!ard' after years of escalation in !hat !as a capti-e mar"et. Consumers !ill also benefit from cheaper connection and call rates. .tate7o!ned operator Teletal"' ho!e-er' is e8pected to struggle in this ne! en-ironment as it is still grappling !ith poor net!or" co-erage and inefficient management. New SIM Tax Contro-ersially' the countryCs $%%/F%) annual budget (deli-ered in =une $%%)) imposed a ta8 of ?.L#& on each ne! .IM card connection' raising a huge furore among cellphone operators. 9perators thin" that the ne! ta8 !ill pose a serious entry hurdle for lo!7income earners and !ill significantly stifle gro!th e8pectations.

ccording to the latest figures from BI. .hrapnel research' the sale of mobile phone connections has pic"ed up after an initial slo!do!n in =une and =uly $%%*. The ta8 on .IM cards !as re-ised to ?.L#+.)% in ugust in response to fierce demands from operators Mobile Handset Market In tandem !ith the gro!ing subscriber base' sales of mobile handsets has increased at a phenomenal pace. 5o!e-er' nearly ,%0 of mobile handsets a-ailable in the local mar"et ha-e been entering through informal channels' depri-ing the 1o-ernment and importers of a huge amount of re-enue each year. In a serious bid to turn around this drastic situation' the Bangladesh 1o-ernment reduced the ta8 on mobile handset imports from ?.L$$.)% to only ?.L/.)% in mid $%%). Mr .hah e8plains that although this initiati-e has re-i-ed the situation to a certain e8tent' the effect on the grey mar"et has not been as significant as !as e8pected by distributors and importers. Inter-ie!s conducted by BI. .hrapnel !ith leading distributors re-eal that the grey mar"et is currently holding around /%0 mar"et share' but they are hopeful this !ill diminish o-er the coming months. ccording to BI. .hrapnel research' BangladeshCs mobile handset mar"et is dominated by first7 time users (nearly &)0)' as the country is still in its infancy in terms of mobile phone usage. 2urther' &%0 of the handset mar"et is dominated by ultra7lo! to lo!7end handsets' a-ailable for less than ?.L*&' due to the countryCs lo! per capita income le-els. s !ith many other sia7Pacific countries' the Bangladesh mobile handset mar"et is predominantly captured by global handset giant Ko"ia (appro8imately )$0 mar"et share) follo!ed by .iemens. Mr .hah e8plains that the success of these t!o -endors can be attributed to e8cellent handset Juality' ease of use' an efficient sales and distribution net!or"' dedicated after7sales ser-ice' and regular launches of lo!7priced handsets to meet mar"et demand. The Mobile World Statistics

ccording to The Mobile Dorld' at the end of N+ $%%)' the countryCs penetration has ;ust nudged o-er )0 M !ith ,.+ million customers. 1rameen Phone is the mar"et leader !ith /.$ million customers. Kumber t!o in the mar"et is "tell (Tele"om Malaysia) !ith ;ust o-er $ million customers. .heba Telecom has ;ust o-er *%%'%%% customers !hile Pacific Bangladesh Telecom has ;ust o-er +%%'%%% customers and Teletal" Bangladesh pic"s up the tail !ith #$%'%%% customers. Darid Telecom had not reported figures at the time.H - 9B3:BI3D 92 M9BIL3 T3L3C9M M :A3T IK B K1L D3.5O Currently there are 6 mobile operators in an!ladesh" They are namely#
• • •

$rameenphone M =oint -enture o!nership 6%&Telenor and '(&$rameen Telecom . an!lalink M =oint -enture !ith )rascom Telecom Co" originated from 3gypt. *ktel M =oint -enture bet!een Telecom Malaysia Berhad TM and . A. AhanI company limited

• •

Waried Telecom M n in-estment of +ubai and *bu +habi $roup ? 3. TeleTalk M Public limited company but #%%0 share ha-e been o!ned by the !o,ernment o- an!ladesh.



Citycell M =oint -enture !ith Sin!Tel *sia paci-ic in,estment P,t" limited.

Belo! is a table that reflects the current competition of the mar"et. Kumber of subscribers for the Mobile Phone operators is sho!n belo!O 2igureO Bangladesh Mobile operatorCs mar"et share. (BT:C $%%& ) P.ubscribers in Millions. 9-er the last t!o to three years' the number of mobile subscribers in Bangladesh has been more than or close to more than doubling on an annual basis. By end7$%%,' the subscriber base had reached +/ million and !as continuing to gro! at an annual rate of around *%0. Dith the momentum that has been de-eloped on the bac" of the go-ernmentCs deregulation process' the

strong gro!th seemed li"ely to continue. The entry of ne! operators into the mar"et has certainly helped to further boost the competiti-e en-ironment. This report describes ho! the mobile mar"et is gro!ing and the impact this is ha-ing on the de-eloping nation' as !ell as pro-iding an outline of the main players. The report also has a brief o-er-ie! of the TB broadcasting sector. Consumer demand in Bangladesh ma"es the mobile mar"et one of the fastest gro!ing mar"ets in the !orld. During first si8 months of $%%,' Bangladesh recorded ,., million (#.+ millionFmonth) subscribers. t this pace' the e8pected mobile subscribers by the end of $%%, !ere +) million and a mar"et penetration of around $)0' signifying year7on7year gro!th of up to ,%0. The follo!ing figure can gi-e an o-er -ie! of the potential mar"et of Bangladesh in near future. (Telecom Insight $%%,) - The ri-als and their brief profileO Now we will see the brie- company pro-ile o- these ri,als. grameen phone 1rameenphone is a 1.M (global system of mobile communication)7based cellular operator in Bangladesh. It has started operations on March $*' #<<,. It is partly o!ned by Telenor (*$0) and 1rameen Telecom (+&0). 1rameenphone is the largest mobile phone company in Bangladesh !ith $+.%/ million customers as of october' $%%&. It is also one the fastest gro!ing cellular telephone net!or" in Bangladesh. t the end of $%%&' it had about )$%% BT. (Base To!er .tations) around the country. 1rameenphoneCs stated goal is to pro-ide cost7effecti-e and Juality cellular ser-ices in Bangladesh. 9n the #*th of Ko-ember' $%%* 1P formally changed its logo to match its parent company TelenorCs logo. ccording to 1P the ne! logo symboli@es trust' reliability' Juality and constant progress. 1rameenphone has already pic"ed up /$) core ta"a of Kon7con-ertible .enior Coupon Biasing Bond Q interest rate of #/.) by the help of ten financial group of the companies. The company is recently going to call for IP9 (Initial Public 9ffering) to collect capital from share mar"et of the country of * core )% la"h dollar (//< core ta"a). 1P has submitted the prospectus of proposal for IP9 in #$F#$F$%%& to the chairman of

.3C (.ecurity and 38change Commission). The name of present C39 of 1rameenPhone is 9d-er 5es@edal. The name 1rameenphone !as "ept as part of the ne! identity because the name 1rameenphone carries !ith it all of the heritage' success and -alues of the companies past' added the then C39 of 1rameenphone 3ri" as. 5a!aii' and 3ricsson pro-ides technological support to 1rameenPhone. The to!er range of $P e8ists /#0 km" The technology used by 1rameenphone is 1$ (2irst 1eneration) !hich is supportable to %$ (.econd 1eneration). RRProducts offered 1rameenphone offers subscription in t!o categories' Prepaid .ubscription and Postpaid .ubscription. 22Prepaid subscriptions are sub#di,ided into three plans. 1" Smile. smile (mobile to mobile connecti-ity !ithin Bangladesh)' smile PSTN (nation!ide and international mobile and land line connecti-ity) #. d3uice (a youth based mobile to mobile connecti-ity !ithin Bangladesh). 22Postpaid plan. xplore (nation!ide and international mobile and landline connecti-ity) 1rameenphone also offers different -alue7added ser-ices including .M.' MM.' Delcome Tunes (:ingbac" Tones)' Boice .M.' .M. Push7Pull .er-ice' Boice Mail .er-ice (BM.)' and 2a8 and Data among others. 1rameenphone !as the first mobile operator in Bangladesh to offer 3D13 ser-ices to its subscribers.

RR9ther acti-ities 224illa!e phone Dith the help of 1rameenphone' 1rameen Telecom operates the national Billage Phone programme' alongside its o!n parent 1rameen Ban" and the International 2inance Corporation (I2C)' acting as the sole pro-ider of telecommunications ser-ices to a number of rural areas. 22Community In-ormation Centers Community Information Center (CIC) or 1PCIC is aimed at pro-iding internet access and other communications ser-ices to rural areas. In 2ebruary $%%*' $* CICs !ere established across the country as a pilot pro;ect. In this pro;ect' 1rameenphone pro-ides 1.MF3D13F1P:. infrastructure and technical support and other partners 1rameen Telecom. 22$rameenphone Centers grameenphone center (1PC) ser-es as a Gone stop solutionH for customers' !ith all telecommunications products and ser-ices' under a single roof. grameenphone center also sells phones from -endors li"e Ko"ia' .amsung' Motorola'.agem and BenJ. 3D13F1P:. modems and accessories such chargers and headphones are also sold at 1PCs.


C.:(Corporate social responsibility)O

1rameenpnone focuses its C.: on the field of follo!ingsO #. It contributes its responsibilities to!ard countries education' empo!erment I health sector. $. Beautification of the city to!ns. +. It is the official sponsor of Bangladesh Cric"et Board (BCB). .D9T analysisO

ccording to the e8ecuti-e opinion !e ha-e analy@ed the .D9T of the company. ccording to a e8ecuti-e of 1P their7 Stren!th. Ket!or" co-erage (</0of total area of the country.) ITotal number of customer. Weakness. .hort term defensi-e strategy I high call rate' !hich may hamper the companyCs good !ill I 2uture competition. )pportunity. To get lin" to the up coming technology i.e. Di7Ma8. Threat. ?p coming technology may not support the present technological infrastructure. nd Banglalin". Banglalin" Dith a slogan of Gma"ing it differenceH7 banglalin" started operations in 2ebruary $%%). Pre-iously' it !as "no!n as .heba Telecom P-t. Ltd that had been pro-iding 1.M (global system of mobile communication) ser-ices in Bangladesh since #<<&. 9rascom Telecom bought #%%0 share of .heba Telecom in $%%/ and ga-e its ne! name as banglalin". banglalin"' is the second largest cellular ser-ice pro-ider in Bangladesh. s of ugust' $%%&' banglalin" has a subscriber base of more than #% million. It is a !holly o!ned subsidiary of 9rascom Telecom. banglalin" had #.%+ million connections until December' $%%). The number of banglalin" users increased by more than $)+ per cent and stood at +.*/ million at the end of $%%*' ma"ing it the fastest gro!ing operator in the !orld of that year. In ugust' $%%*' banglalin" became the first company to pro-ide free incoming calls from BTTB for both postpaid and prepaid connections. banglalin" pro-ides its po!erful net!or" by ))%%(appro8) BT. (Base To!er .tations) is co-ering /&* Thanas reasonably and *# districts' co-ering a total population of around <%0 till mid of $%%&. fter 1o-t. !ithdra!al of the restriction of planting net!or" infrastructure from the three hilly districts (i.e. Banderbarban' Aagrachori I :angamati)

banglalin" co-ered the */ districts !ithin -ery short time. The name of present C39 (Chief 38ecuti-e 9fficer) of banglalin" is hmed bu Domer. The logo of the company is designed on "eeping the national animal i.e. :oyal Bangle Tiger in mind' !hich symboli@e to the faster gro!th. During the +rd Juartile of this year !hich means ;uly7september' $%%& the company earned )$/ core BDT. nd the companies mar"et e8panded to #%.#, million customers. n banglalin"Cs e8ecuti-e opinion about this !as' the Juality of product I ser-ice and continuous de-elopment of net!or" has help them to reach this position. 5e also hoped that the customer si@e of the company !ill increased to #%.+) million by the end of this year. banglalin" ser-es their customers !ith more than ,%% CCP(Customer Care Point). Till no! banglalin" has in-ested *'+$/ cores BDT. for the de-elopment of net!or" and infrastructure. Ko"ia7.iemens net!or" I 5a!aii pro-ides technological support to banglalin". The to!er range of banglalin" e8ists )7< "m. in case sometime it -aries to about #+7#) "m. The technology used by banglalin" is #1 (2irst 1eneration) !hich is supportable to $1 (.econd 1eneration). Banglalin" also has #)%% "m. of 2iber 9ptic cable !hich gi-es the surety of good net!or". During the occasional periods banglalin" ensures much better ser-ice than the other operators. Products 9ffered Prepaid Pac"ages banglalin" currently offers t!o prepaid plans. ll the prepaid plans come in t!o phasesS .tandard (TIT incoming and outgoing !ith KDD and I.D) and M$M. ll connections pro-ide 1P:. to subscribers. T desh' !ith the slogan 9ne country' one rate' is one of the cheapest prepaid plans in the country by tariff. T ladies5 -irst6' !ith the slogan .hompor"er Ket!or" (means net!or" of relationship)' is tailored for !omen.

Postpaid Packa!es Currently there are three postpaid plans from banglalin". These pac"ages are called enterprise personal. ll pac"ages come !ith TIT local' KDD' I.D and e7I.D connecti-ity. T personal packa!e 1 T personal packa!e % T personal call and control


banglalin" enterprise

banglalin" enterprise offers a !ide range of products and ser-ices to suit the needs of the business community. The current pac"ages areO T enterprise corporate4 targeted at the corporate segment T enterprise SM74 targeted at the .M3 segment T enterprise personal


ban!lalink C8

banglalin" C? pac"age is targeted at the shop"eepers' !hich offers PC9 facility to the general public. It comes in t!o -arietiesO T C8 T C8 call and control


banglalin" point

banglalin" points are aimed at pro-iding a complete mobile solution' connections' handsets' accessories and pro-ide selected customer ser-ices li"e .IM replacement' reconnection' bill payment etc. They are strategically located at "ey points around the country. Aallol 1roup a

local distribution company had partnered !ith banglalin" to operate at least forty banglalin" points through out the country. s of March' $%%&' the deal !ith Aallol 1roup has been called off and banglalin" is focusing on managing its o!n customer care centers.


C.:(Corporate social responsibility)O

Banglalin" focuses its C.: on the field of follo!ingsO #. Tradition I culture of Bengal. $. Beautification of the city to!ns. +. It is the official sponsor of Bangladesh Tourism Corporation. /. It has under ta"en the -oting campaign to -ote for Co87ba@aar and sunder7boon and cleaning Co87ba@aar. ). It has pro-ided Trolley for the passengers of >ia International irport. .D9T analysisO ccording to the e8ecuti-e opinion !e ha-e analy@ed the .D9T of the company. ccording to a e8ecuti-e of 1P their7 Stren!th. cti-e distribution management and sales personnel I brand image. nd net!or" co-erage (<)0 of total population). Weakness. Time constant !ith other companies are not suitable. )pportunity. :ural mar"et I corporate customers. Threat. 9nly time sense. The e8ecuti-e also emphasi@ed banglalin" M as best mobile company of the country. nd are capable to be a mar"et leader !ithin short period of time. ccording to him team sprite' superior7

subordinate relationship' and !or"ing en-ironment is e8cellent. The company is ready to ta"e any challenges and ha-e the capability to o-ercome it. AT3L Tele"om Malaysia International Bangladesh (TMIB) Limited is a ;oint -enture bet!een Tele"om Malaysia .dn. Bhd. (,%0) and KTT DoCoMo (+%0). "tel is the third largest mobile phone operator in Bangladesh in terms of re-enue and subscribers (&.#/ million as of ugust $%%&). In early $%%& "tel slipped from the second position to the third after facing fierce competition from banglalin". AT3L launched its operations on the #) Ko-ember' #<<, in Dha"a and on $* March' #<<& in Chittagong. Its founding chairman is Late Mr. >ahiruddin Ahan' an e87commerce minister. AT3L !as formed as a ;oint7-enture bet!een Tele"om Malaysia and .A. Ahan Company. ll along through its insception it !as ran"ed as Ko.$ mobile operator and !as placed far behind the industry leader 1rameenPhone in terms of re-enue and no. of subscribers. AT3L started in-esting hea-ily !ith funds from Tele"om Malaysia (the ma;ority sta"e o!ner) on e8panding its net!or" in $%%# but the in-estment !as far too inadeJuate in comparison !ith 1rameenPhoneCs in-estment.


Products offered

*ktel offers an array of different pac"ages. In addition to offering the fundamental pre7paid and post7paid mobile ser-ices' it offers a !ide range of -alue added products and ser-ices such as' .M.' 1P:.' mobile data ser-ices' infotainment ser-ices' .M. ban"ing' Caller :ing Bac" Tone' :ingtones do!nload' Picture Messaging' MM.' Boice 1reetings' Call Bloc"ing on /th ugust $%%&' !hich gi-e subscriber to control !hich call he or she recei-e or not and Bengali .M..


Customer care

AT3L has #< Customer Care CentersU&V and $%% Customer .er-ice Points in *# allo!able districts all o-er the countryU<V. "tel has another *,% Atel Touch Points ( TP) scattered along the most densely populated areas.



C.:(Corporate social responsibility)O

"tel has been offering scholarships to three Bangladeshi students e-ery year for bachelor courses in engineering' information technology and business administration since #<<& to study at Multimedia ?ni-ersity in Malaysia. It is the founding member of Chittagong ."ills De-elopment Centre (C.DC) that is offering technical training and business management education through its strategic partnership !ith Penang ."ill De-elopment Centre (P.DC) of Malaysia and its internal members. It also beautifies the city areas. In $%%, "tel recei-ed .tandard Chartered72inancial 38press Corporate .ocial :esponsibility (C.:) !ard $%%* for their significant contributions to C.: and philanthropic acti-ities. .D9T nalysis ccording to the e8ecuti-e opinion !e ha-e analy@ed the .D9T of the company. ccording to a e8ecuti-e of 1P their7 Stren!th. Call rate superiority (at present situation.) I net!or" system Weakness. poor customer ser-ice I late response to competitors offer. )pportunity. great opportunity to e8pand mar"et by present net!or" system !hich adopt the Di7Ma8 technology. Threat. other potential 1.M net!or" li"e Darid(K1K) CITEC3LL Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of Bangladesh. It is the only CDM (Code di-ision multiple access) net!or" operator in the country. s of #st March' $%%&' CitycellCs total mobile subscriber base is #.)* million' up #+, per cent or *&%'%%% from t!o years ago' gi-ing it the best gro!th rate of the company till date. Citycell is currently o!ned by .ingtel !ith /)0 sta"e and the rest ))0 o!ned by Pacific 1roup and 2ar 3ast Telecom.

In #<&< Bangladesh Telecom Limited (BTL) !as a!arded a license to operate cellular' paging' and other !ireless communication net!or"s. Then in #<<% 5utchison Bangladesh Telecom Limited (5BTL) !as incorporated in Bangladesh as a ;oint -enture bet!een BTL and 5utchison Telecommunications (Bangladesh) Limited. 5BTL began commercial operation in Dha"a using the MP. mobile technology in #<<+ and became the #st cellular operator in .outh siaU$V. Later that year Pacific Motors bought )%0 of BTL. By #<<* 5BTL !as renamed as Pacific Bangladesh Telecom Limited (PBTL) and launched the brand name GCitycell DigitalH to mar"et its cellular products. Michel .eymour is the present C39 of Citycell 5a!aii' 3ricsson I Motorola pro-ides technological support to Citycell. The to!er range of Citycell e8ists to )7* "m. in case sometime it -aries to about < "m.(Ma8.) The technology used by Citycell is CDM #W(Code di-ision multiple access). Citycell is consolidating its position in !ireless data by launching their >oom 3B7D9 (e-aluation data optimi@e) for the broadband !ireless internet ser-ice. lthough CDM #W technology is the latest technology citycell could not not flourishing the companies mar"et position although it !as the first company to launch Mobile cellular phones. 38ecuti-e opinion abut this is that the failure of the policy ma"er to ta"e right decision in right time is the main cause . But he also appreciated the policies of present C39 of citycell for capturing the mar"et position. 5e also thin"s that the countries most Mobile companies are 1.M' so they may induce the 1.M union to capture the mar"et.


Products 9ffered

Citycell offers prepaid' postpaid and fi8ed phone plans. .ince Citycell operates in CDM ' :IMCs are usually sold !ith a phone mostly cheap Chinese sets produced by >T3' 5ua!ei' .amsung' Motorola and lcatel. Citycell currently has the cheapest phoneXconnection tariff at #+<< ta"a.


Customer Care Center

There are * Customer care centers of Citycell in the country. 9ne for each di-ision and there are another )%% Customer care Points scattered around the country



Performance

T Dorld operator ran" by connections O $)&th T Mar"et .hare O Y/.)0 T Mar"et Penetration O Y#.#0 UPData 7 N$ $%%&V


C.:(Corporate social responsibility)O

Citycell -ocuses its CS9 on the -ield o- -ollowin!s. #. It contributes its responsibilities to!ard countries education' anti7drug I health sector. $. Beautification of the city to!ns. +. It is the official sponsor Bangladesh 2ootball federation. .D9T analysisO ccording to the e8ecuti-e opinion !e ha-e analy@ed the .D9T of the company. ccording to a e8ecuti-e of 1P their7 Stren!th. Digital technology C+M*1:" nd net!or" co-erage (<$0 of total population). Weakness. 2ailing of ma"ing consciousness to the people about C+M*1: technology. )pportunity. Broadband !ireless technology of 74#+) (e-aluation data optimi@e). nd up coming technologies are supportable to the present technology.

Threat. 1.M technology !here people habited !ith the change of 5andset. D :ID Darid Telecom International Ltd. is a 1.M7based cellular operator in Bangladesh. Darid is the si8th mobile phone carrier to enter the Bangladesh mar"et. It is currently struggling but is trying to find a !ay out. Darid officially launched their commercial ser-ices in Bangladesh on the May #%' $%%, !ith a 1.M Mobile Cellular net!or" co-ering */ districts of the country and encompassing ,%0 of the mobile phone using population7 the single largest launch the country has e-er seen. In December $%%)' Darid Telecom International LLC paid L)% million dollars(?.) to obtain a 1.M license from the BT:C and became the si8th mobile phone operator in Bangladesh. In a press conference on ugust #,' $%%*' Darid announced that his net!or" !ould be acti-ated t!o months ahead of schedule' in 9ctober' $%%*. gain in 9ctober' $%%* Darid Telecom put off the launch of its cellphone ser-ices in Bangladesh until pril' $%%, after its ma;or supplier Ko"ia !al"ed out on an agreement o-er a payment dispute. The present C39 of D :ID Mr. Munir 2arooJui.


Products 9ffered

Darid pro-ides both post7paid and pre7paid connection plans. The post7paid plan is branded and mar"eted across the country under the name >ahi Post7paid' !hich means leader or royalty. The pre7paid segment is branded and mar"eted as >em Pre7Paid. The ;em Prepaid category is di-ided into four segmentsO T >em ($/ hours) T >em # .ec

T >em 2un T >em 2n2 The ;ahi Postpaid category is di-ided into three segmentsO T >ahi :oyal T >ahi e8tra >ahi7Post7paid and >em Pre7paid user en;oy -arious -alue added ser-ices(B .)' such as .M.' MM.' 1P:.' */A .IM' Dual .IM product' Corporate pac"ages for product ad-ertising -ia .M.' and a host of other features. 5o!e-er' International :oaming is a-ailable only to >ahi (post7paid) users.


Customer Care Centers and <ranchises

Warid Telecom <ranchise" Darid has ten customer care centers around the country located at "ey locations. These centers are directly run by Darid itself. Darid has another #$% franchises spread across Bangladesh' the largest chain of retail outlets in the country' !hich is further bac"ed up by a chain of sub7 franchises' affinity partners I distributors. .IM Cards' .cratch Cards and sometimes mobile sets are sold at these outlets. Bill collection for post paid users and >em top up for pre7paid users can also be a-ailed at the franchises. These franchises directly appoint dealers and sub7dealers in their designated areas. .D9T nalysis ccording to the e8ecuti-e opinion !e ha-e analy@ed the .D9T of the company. ccording to a e8ecuti-e of 1P their7 Stren!th. Customer ser-ice I K1K net!or".

Weakness. Product design I product mar"eting. )pportunity. dopting Di7Ma8 !hich !ill definitely supported by the +1(K1K) net!or". Threat. 9ther potential competitors. Teletal" Teletal" Bangladesh Limited is a public limited company' registered under the :egistrar of the =oint stoc" companies of Bangladesh. Total shares o!ned by the 1o-ernment of the Peoples :epublic of Bangladesh. De continue to gro! and engage our customers through our clear commitment to offering high Juality products and ser-ices as !ell as leading customer retention and loyalty programmers. Teletal" continues to be a part of the re-olution thatCs connecting millions of Bangladeshi people and around the !orld. Teletal" Bangladesh limited !as established "eeping a specific role in mind. Teletal" has forged ahead and strengthened its path o-er the years and achie-ed some feats truly to be proud of' as the only Bangladeshi mobile operator and the only operator !ith #%%0 nati-e technical and engineering human resource base' Teletal" thri-es to become the true peopleCs phone M G mader PhoneH. Product offeredO Teletal" offers an array of different pac"ages. In addition to offering the fundamental pre7paid and post7paid mobile ser-ices' it offers a !ide range of -alue added products and ser-ices such as' .M.' 1P:.' mobile data ser-ices' infotainment ser-ices' .M. ban"ing' Caller :ing Bac" Tone' :ingtones do!nload' Picture Messaging' MM.' Boice 1reetings. The pre7paid pac"ages are7 T .tandard

T .hapla (Pre7paid) T .hadheen nd the post7paid pac"ages are7 T .tandard (ra;anigandha) T .hapla (Post7paid)


Teletalk Customer Care Point=CCP>

Teletal" has established their customer care point only in the di-isional cities and the big citied only. In their CCPCs they pro-ides free ser-ices to their customer and also sells the mobile hand sets' and mobile accessories. .D9T nalysis ccording to the e8ecuti-e opinion !e ha-e analy@ed the .D9T of the company. ccording to a e8ecuti-e of 1P their7 Stren!th. 1o-t. o!ned public ltd. Co. I they use the freJuency of BTCL Dhich is co-ered all around the country. Weakness. Poor customer ser-ice I bad product design. )pportunity. great opportunity to e8pand mar"et by present net!or" system !hich adopt the Di7Ma8 technology. Threat. other potential 1.M companies. - 2orecast about telecommunication mar"et in BangladeshO

9-er the last t!o to three years' the number of mobile subscribers in Bangladesh has been more than or close to more than doubling on an annual basis. By end7$%%,' the subscriber base had reached +/ million and !as continuing to gro! at an annual rate of around *%0. Dith the momentum that has been de-eloped on the bac" of the go-ernmentCs deregulation process' the strong gro!th seemed li"ely to continue. I3M:Cs Mobile 2orecast on Bangladesh pro-ides o-er *) operational and financial metrics for the Bangladesh !ireless mar"et. De co-er Juarterly historical data starting in #N$%%/ and ending in #N$%%&. De also pro-ide four7year forecasts at the operator le-el going out to $%#%. 9perators co-ered for Bangladesh includeO Bangalin"F.heba (9rascom Tel)' 1rameenPhone (Telenor)' TM IntCl (Tele"om Malaysia)' PBTL (.ingTel)' and Darid BTTB. 9ur Mobile 2orecasts are updated Juarterly and are a-ailable for one7time deli-ery or through regular updates. Kotable highlights of the +N%& Bangladesh Mobile 2orecast includeO #) Total subscribers in Bangladesh !ill increase from the pro;ected /*.< million in $%%& to )&.$ million in $%#%. De' therefore' forecast that the le-el of !ireless penetration !ill increase steadily in Bangladesh from our pro;ected $<.%0 in $%%& to +/.,0 in $%#%. $) The le-el of competition in the !ireless mar"et !ill continue to increase' and the 55I inde8 !ill go do!n from %.$<& in $%%& to %.$&) in $%#%. The three largest operators in the country (Bangalin"F.heba' 1rameenPhone' and TM International) !ill be losing mar"et shares to Darid. +) The largest operator in the country !ill continue to be 1rameenPhone (Telenor)' but its mar"et share (by subscribers) !ill decrease from /).%0 to /$.<0 in the forecast period' $%%& Z $%#%. In the figure belo! BMI (business monitor international) had forecasted a rapid gro!th and a-erage y7o7y gro!th of )*0 per year bet!een year $%%, and $%##. Mar"et penetration should be reached by )%0 by the end of $%%< and can be increased by ,)0 during the forecasted period. .o' according to the forecast' by the year $%##' mobile subscribers !ill be ##)millions. That sounds li"e a great potential mar"et. (ibid)

The reality is close to the forecast. ccording to BT:C' The total number of Mobile Phone .ubscribers has reached +$.++ million at the end of 9ctober $%%,' !hen BMICs e8pectation !as about +) millions. Mr. Man@urul lam' Chairman BT:C !hile ans!ering a Juestion' has gi-en the latest information. s of pril $%%&' the total number of mobile phone subscribers stands at /%.+/ millions. nd the a-erage gro!th rate falls in the range of # million subscribers per month. 2igureO BMI forecast - Brief about P.TK 9perators in BangladeshO Beside the si8 mobile telecommunication companies there are t!el-e P.TK (public s!itched telephone net!or") M companies in Bangladesh. mong these BTTB !as only go-t. o!ed company' !hich has been con-erted into Public Ltd. Co. in august this year and no! it is !or"ing as a name BTCL (Bangladesh Telecommunication Company Ltd.). ccept BTCL all other P.TK use !ireless system CDM (Code di-ision multiple access) technology. The raise of pri-ate P.TK companies made the mar"et of P.TK in the country -ery competiti-e. Ko! the call rate of P.TK has been reduced than the pre-ious rate. 5ere the list of P.TK subscribers of the country is sho!n in a figure !ith their customer si@e bello!O

)perators BTTB :an"s Telecom Ltd. Telebarta Ltd. =alalabad Telecom Ltd. 9netel Communication Ltd. Kational Telecom Ltd. Peoples Telecom Ltd. Destec Ltd. Dha"a Telephone Co. Ltd. .heba Phone Ltd. (I.L) .. Telecom .ystem Ltd. Banglaphone Total

Subscribers +ecember %??0 &,$./%< ##$.)*% )).&%< +.</& +%.#$* #,.)$# +$.<*# #,./%% $,.,<+ &.$+$ &.#+/ %.%$* 151(6"@1@

Subscribers September %??( &,$./%< #/&.#,+ )*./$/ /.</< +&.+*/ /&./*, /*.$## #,.%%% )&.%,/ #%.%#& #/.+,$ %.%$* 15'1A"A(0

Subscribers )ctober%??( &,+.$*) #/<./<) )*./$/ ).##% +&.)$< )#./<* )+.%&) #,.%%% )<./+* <.<+% #/.&%/ %.%$* 15'%("6??

P.ubscribers in Thousands Source: BRTC - C9KCL?.I9K The buyer is po!erful in the industry' but since the mar"et is gro!ing largely' it !ill be easy for the company to hold its o!n share' because of po-erty' the population !ill be unli"ely to a-ail the s!itching cost. nd this also reduces the ris" of high a-ailability of substitutes. The supplier is not po!erful in this case !hich is a plus for the company and the company can play !ith the price to "eep the production cost lo!. .ince the mar"et is yet to be matured and gro!ing -ery fast' !e assume that the suppliers companies are also increasing. .ome multinational companies are sho!ing their interest to enter into the mar"et. This can lead some ne! suppliers to arri-e into the mar"et and ma"e the en-ironment more competiti-e. .o at some stage the bargaining po!er of the suppliers !ill become -ery lo!. .o from the abo-e discussion' it can be said that the Bangladesh telecom mar"et has a lot of potential to offer considering strategically ignorable or someho! alterable threats. The mar"et loo"s -ery potential and prospecti-e. Lots of opportunities are !aiting.

Bangladesh has cheap s"illed and !illing to be s"illed labor. Communication infrastructure is in good condition and has the ability to ser-e the international entrants. Customer demand for telecom product is -ery high due to the high gro!th rate of the mar"et. s the industry is becoming bigger' a-ailability of supporting industries are increasing and already there are lots of supporting companies in the mar"et. nd finally the go-ernment policies are -ery !elcoming and liberal. 2rom the abo-e discussion !e can comment that the mobile telecommunication of Bangladesh is -ery competiti-e I the ri-als are facing huge competition in the mar"et. Therefore !e obser-e that the mobile companies are changing their strategies day to day to sur-i-e in the mar"et. .o it !ill be difficult for any ne! company to enter in this mar"et. But !e can simply say that the mobile telecom mar"et of Bangladesh is a !ell balanced I fully competiti-e. #.# 9rigin of the :eport The course instructor of Consumer Beha-ior' Mr. .yed Munir Ahasru assigned us to de-elop a report on a particular product and design its mar"eting strategies !ith respect to the dynamics of Consumer beha-ior. De decided to !or" on the CityCell DigitalCs latest pac"age M [C. #.$ 9b;ecti-es The main ob;ecti-e of this research is to find out the strategies to successfully establish and position [C. In the process !e !ill also #. naly@e the current mar"et situation and Cs position $. Identify the consumer characteristics of [C +. Identify ho! CityCell is influencing the target customers /. .ee ho! [C is attracting customers and ). .et the strategies to create a more positi-e attitude to!ards the product. #.+ Methodology

To get a fair -ie! of the mobile phone ser-ice industry !e ha-e informally tal"ed to a number of mobile phone users. Their comments reflected their needs' demands' need gaps and also their self7concepts and lifestyles. De ha-e tried to get the most accurate information about the company strategy from the sources in the company. The findings ha-e been sho!n in the follo!ing parts of this paper. #./ .cope of the :eport The report starts !ith an o-er-ie! of the mobile phone industry' CityCellCs position in it and !hat impact the introduction of [C had in CityCellCs position. During the de-elopment of this report !e ha-e tried to "no! not only about [C but also about the competing pac"ages i.e. 1rameen and "telCs similar ser-ices. De ha-e tried to find out !ho are going for this ne! pac"age and !hy they are going for it. t the same time !e ha-e tried to identify their ideas of personality and lifestyle. The sur-ey ga-e us a -ie! of the customersC needs' preferences and the problems they face !hile ma"ing purchase decisions.

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