Decision Making

Management Decision Problem (MDP): which operator can provide superior

call rate according to given time slot to minimize overhead cost?

To answer the question, we need to find call rates (per minute) for each mobile company
operators regarding respective time slots 6am-12pm, 12pm-6pm, 6pm-12am, and 12am-
6am.

*Call Rates:

Data collected from respective operator’s web site:

Time / Company Grameenphone Banglalink Robi Warid

6am-12pm 1.25/min 0.69/min 1.20/min 0.49/min

12pm-6pm 0.49/min 0.69/min 1.20/min 0.49/min

6pm-12am 1.25/min 1.25/min 1.80/min 0.49/min

12am-6am 0.49/min 0.45/min 1.20/min 0.49/min

Assumption: To assist the decision some assumptions play a mandatory role, without
these the interpretation might not be proper or lead to incorrect decision. These are noted
as follows:

1. Calling option is considered only within same operator e.g. GP to GP

2. 3 hours or 180 minutes from each time slot will be adjusted
3. Network connectivity and coverage is not considered or assumed to be same
4. Corporate alliance is not visible or considering the general tariff
5. Only one package is taken from only one operator
6. Only 4 companies are taken but there are few other companies
7. No pulse (per second charge) system is considered, but only minutes
8. Vat (15%) is not considered here
9. Bonus on usage is not applicable
10. Fixed cost like connection charge and other service charge are not considered
Framework: finding the total cost for each time slot(month)

Time / Company Grameen phone Banglalink Robi Warid

6am-12pm 1.25*180*30 0.69*180*30 1.20*180*30 0.49*180*30

=6,750 tk =3,726 tk =6,480 tk =2,646
12pm-6pm 0.49*180*30 0.69*180*30 1.20*180*30 0.49*180*30
=2,646 =3,726 tk =6,480 tk =2,646
6pm-12am 1.25*180*30 1.25*180*30 1.80*180*30 0.49*180*30
=6,750 tk =6,750 tk =9,720 tk =2,646
12am-6am 0.49*180*30 0.45*180*30 1.20*180*30 0.49*180*30
=2,646tk =2,430 tk =6,480 tk =2,646

Interpretation: As per total is identified, it is very much visible that Warid

telecom can give the superior service in terms of cost to minimize the overhead cost of
the company. Grameenphone can give the rate as same as warid gives for the time slot
12pm-6pm and 12am-6am respectively and Banglalink can give lower than warid within
12am-6am only.
But as the time for this slot is only 3 hours or 180 minutes it can’t add value as much as
warid can within 24 hours. Robi is seriously expensive in this manner. All the
information positively identifies that Warid telecom can be the best option for the
company for whatever the time slot is.

Solution and decision: As warid telecom is the lowest charging operator,

management of the company is referred to adopt Waird telecom service if the previous
assumptions remain unchanged.

*Resources:

http://www.grameenphone.com/index.php?id=533
http://www.waridtel.com.bd/portal/page?
_pageid=155,376262&_dad=portal&_schema=PORTAL#
http://www.robi.com.bd/index.php/page/view/118
http://74.81.84.7/~banglali/docs.php?id=pre-paid&docs_id=78

[APA or Harvard referencing system is being ignored]