Telecomniation Sector in Bangladesh

Introduction

Telecommuncation is a fast changing dynamic sector.Continuous change in technologies and

opportunities created by such change and consequent impact on the consumer/user necessitates
changes and adaptation of policies in the sector. Countries which respond timely and
appropriately to such change grow successfully whereas others who fail, lag behind , remaining
trapped in the various circle of poverty and under – development.

Bangladesh being a development country is fast trying to catch up with the developed world and
adapt its policies, in respond to changing needs, opportunities and requirements in different
sectors,including telecommunication sector.

Due to the inherent dynamism of the telecommunication sector and speed with which the change
is taking place there in, there is a convergence of technologies of knowledge , expertise,
experience and of policies and strategies to achieve defined policy objectives.

In oder to meterialize the strategic vision behind liberalization of the telecommunication sector,
the Bangladesh Government announced the national Telecommunication policies, with the main
objectives of creation of an environment of competition by establishing market oriented regime
appropriate sets of regulations, standards, procedures, conditions and investment climate so that
the users have multiple choices for across to network and market different services, systems and
carriers at a competitive and resonable price. With a view to ensuring a level playing field for
all operators in multi-oprator environment. The Government in pursuance of the Bangladesh
telecommunication Act(BTA)2001 established in july 2001.
 History Bangladesh Telecommunication Company Limited
The liberalisation of Bangladesh Telecommunication sector began with small steps 1989 with
the issuance of licence to a private operator for the provision of inter alia cellular mobile
services to compete with Bangladesh Telegraph and Telephone Board (BTTB). The previous
monopoly provider of telecommunication services within Bangladesh significant change in
the number of fixed and mobile services deployed in Bangladesh occurred in the late 1990s and
the number of services in operation have subsequently grown exponentially in the five years. On
july 2008 the (BTTB) became a public limited company and was rename as (BTCL). The
Bangladesh goverment intially owned all BTCL shares but stated it wouid sell the shares to the
public the following year. The value of (BTCL) is estimated to be at TK 15,000 core
(TK150billion).BTCL has a total of 12,636 officials and staff.

BTCL Provide land- line telephone services in Bangladesh,s urban areas including dometic long-
distance calling and international services as well as internet services. In 2004, the Bangladesh
government issued anumber of PSTN licenses to private companies but they were barred from
providing in the lucrative Dhaka market (which accounts for the majority of the nationwide
market).

The incentive both from goverment and public sectors have helped the industry grow and it is
now one of the biggest indudtries in Bangladesh. As a populous country, its huge market has
attacted many foreign investors.

Bangladesh Mobile Operators Subscriber& Market Share

There are six(6) telecommunication companies in Bangladesh. Thus companies are subscriber
&market share are follows:

Operators Active Subscriber(in million) Comparative market share(%)

Grameenphone 56.679 42.39%

Banglalink 32.865 24.58%
Robi 28.317 21.18%
Airte 10.710 8.01%
Citycell 1.007 0.75%
Teletalk 4.143 3.30%

Total 133.720 100%

 Regulatory structure of Telecommunication services

The Telecommunication of the country has been liberalized for private investment. Bangladesh
T&T Board provides all types of telecommunication services in urban and rural areas while the
mobile, pasing and ratio trunking services are offered by private operators. Private operators were
also given license to intall and operate digtal exchanges inrural areas and they would intall
telephone exchanges in phases.

Table-1 shows the list of the private operators.

Pacitic Bangladesh telecom Limited

Bangladesh Telecom(pvt) Limited

Bangladesh Rural Telecom authority

Grameenphone(GP)

Orascom Telecommunication

Teletalk Bangladesh limited

Airtel Telecom

Orascom Telecom Bangladesh Limited(Banglalink)

The rivals and brief company profit of these rivals

 Grameenphone

Grameenphone is a GSM ( global system of mobile communication )based cellular operator

in Bangladesh. It has started operations on march 26, 1997. It is partly owned by Telenor

(62%), and Grameen Telecom (38%). Grameenphone is the largest and farstest growing
cellular telephone network in Bangladesh. At the end of 2008 ,it had about 5200 BTS ( Base
Tower Stations) around the country. Grameenphone”s stated goal is to provide cost-effective
and quality cellular in Bangladesh. According to GP the logo symbolizes trust,reliability, quality
and constant progress.

The name of present CEO of Grameenphone is Odvetr Heszedal.

The name of Grameenphone was kept as part of the new identity because the name
Grameenphone carries with it all of the heritage, success and value of the companies past,
added the then CEO of Grameenphone Erik Aas.

Hawali and Ericsson provides technological support to Grameenphone. The tower range of GP
exists 5-7 km. The technology used by Grameenphone is 1G which is Supportable to 2G.

 Banglalink

With a slogan of “making it different’’ banglalink started operations in February2005.

Previously, it was known as Sheba Telecom Pvt Ltd that had been providing GSM (global
system of mobile communication) services in Bangladesh since 1998. Orascom Telecom bought

100%share of sheba Telecom in 2004 and give its new name as Banglalink.
Banglalink is the second largest cellular service provider in Bangladesh. It is a wholly owned
subsidiary of Orascom Telecom. In August, 2006, banglalink became the first compan to provide
free incoming calls from BTTB for both postpaid and prepaid connections.

The name of present CEO of Banglalink is Ahmed Abu Domer.

The logo of the company is designed on keeping the national animal i.c Royal Bengle Tiger in
mind. Which symbolize to the faster growth. Banglalink serves their customers with more than
700 CCP (customer care point). Till now banglalink has invested 6.324 cores BDT. for the
development of the network and infrastructure.

Nokia-Siemens network & Hawaii provides technological supports to banglalink. The tower
range of banglalink exists 5-9 km in case sometime it varies to about 13-15 km. The technology
used by banglalink is 1G (First Generation) which is supportable to 2G ( Second Generation).

 Robi
Telekom Malaysia International Bangladesh (TMIB)Limited is a joint venture betweem Telekom
Malaysia Sdn. Bhd.(70%) and NTT DoCoMo(30%).

It is the third largest mobile operator in Bangladesh in terms of revenue and subscribers. In early
2008 Aktel slipped from the second position to the third after facing fierce competition from
banglalink.
Telecommunication sector luanched its operation on the 15 November, 1997 in Dhaka and
on 26 March, 1998 in Chittogram . Its founding chairman is Late Mr Zahiruddin Khan, an
ex-commerce ministe. Telecommunication sector 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.

 Citycell

Citycell ( Pacific Bangladesh Telecom Limited) is the first mobile communication company in
Bangladesh. It is the only CDMA (Code division multiple access) network operator in the
country. Citycell is currently own by Singtel with 45% stake and the rest 55% owned by
Pacific Group and Far East Telecom.

Michel Seymour is the present CEO of Citycell.

Hawii, Ericsson & Motorola provides technological support to Citycell. The tower range of
Citycell exists to 5-6 km in case sometimes it varies to about 9 km. The technology used by
Citycell is CDMAIX. Citycell is consolidating its position in wireless data by luanching their
Zoom EV-DO (evalution data optimize) for the boardband wireless internet service. Although
CDMAIX technology citycell could not flourishing the companies market position although it
was the first company to lunch mobile cellular phones.
  Teletalk
Teletalk Bangladesh Limited is a public limited company ,registered under the Registrar of the
joint stock companies of Bangladesh. Total shareowned by the Government of the People’s
Rbublic of Bangladesh. They continue to grow and engage their customers through their clear

commitment to offering high quality products and services as well as leading customer retention
and loyalty programmer. Teletalk continue to be a part of the revolution that’s connecting
millions of Bangladeshi people and around the world.

Tletalk Bangladesh Limited was established keeping a specific role in mind. Teletalk has forged
ahead and Strengthened its path overs the years and achieved some feats truly to be pound of, as
the only Bangladeshi operators and the only operator with 100% native technical and
engineering human resource base, Teletalk thrives to become the true people’s phone- Sopono
Hasi-mukha.

 Airtel
Airtel Telecom International Limited is a GSM based cellular operator in Bangladesh. Airtel is the
sixth mobile phone carrier to enter the Bangladesh market. It is currently struggling but is tying to
find a way out.
Airtel officially luanched their commercial services in Bangladesh on the May10, 2007 with a GSM
Mobile Cellular Network covering 64 distict of the country and encompassing 70% o f the mobile
phone using population the single largest launch the country has ever seen.

In December 2005, Airtel TElecom International LLC paid $50 million dollers (US)to obtain a GSM
license Wi-Max which will definitely supported by the 3G network.

Supplementary Services

Services :

Call Waiting and Call Holding

Call Forwarding

Call Conferencing

National Roaming-Both way

Dedicated Customer Services

Music

Entertainment

Downloads

Internet& Data Services

Messaging

Community&Chat

Information &Services

Mobile Assistance

Education & Career

Bangladesh Telecommunication bring mobile data revolutionm
via4G

In February, Bangladesh entered a new era in communication with the launch of fourth
generation mobile network services, which is expected to offer faster internet access for millions
of users. Information and communication technology expert and economists are anticipating that
the new service, to the offered by five cell phone provides, will open up new business and
job opportunity for the country’s youth.

Margoob Chowdhury a Bangladeshi who works for Singapore based Research in Motion
predicted “phenomental’’ growth in certain sectors over coming years. Faster internet browing
will facilitate all kinds of online businesses, he told Khabar South Asia. The mobile app
development sector will grow phenomentally, as more subscribers will be downloading and
using the apps on their phones, “he said”.

Mobile Banking
Mobile banking (also known as M-banking or SMS banking) is a term used for performing
balance,cheque,account transactions, payment etc. via a mobile device such as a mobile phone.
Mobile banking is most often performed via SMS or the Mobile internet but can also use special
programs downloaded to a mobile device. The standard package of activities that Mobile
banking covers are mini statements and checking of account history,alerts on account activity or
passing of set thesholds, monitoring of term deposits, access to loan statements; access to
card deposits, mutural funds\equity statements, insurance policy management, pension plan
management, status on payment of cheques, ordering cheques books, balance checking, recent
transactions, due date of payment, PIN provisions, change of PIN and reminder over the internet,
blocking of cards, domestic and international fund transfers, micro-payment handling, Mobile
recharging, commercial payment proccesing, bill payment processing, peer to peer payment, and
deposits at banking agent, The advent of mobile technogogy can enables banks to have a
presence in rural areas intead of a traditional branch based environment.Thus m-payment and m-
commerce will pay a significant role for the un-banked and banked population. This particular
payment service will eventually facilitate a comprehensive payment distribution channel for the
quick delivery of international and domestic transfer of founds in rural areas. The service can
also provide a new channel to facilitate new account acquistion for banks, utility bill payment,
point of sale purchases, and funds transfers person to person, person to business, person to
govt: and versa. Although some forms of mobile payment such as utility bill payment and
rail ticket purchasing has started, no standard has been estabilished yet. Strategic priorities in this
area would be developing policy guidelines in areas such as mobile banking and payment
thought mobile phone.

CONCLUSION
The sector of telecommunication industry in Bangladesh is energing day by day. Though there
are some problems in the sector of telecommunication in Bangladesh, there are some prospects
also have. If all telecom operator come in one platform for giveing better service to all types of
subscribers, then total industry will able to earn more profit and confident of general subscribers.

The buyer is powerful in the industry, but since the market is growing largely, it will be easy for
the company to hold its own share, because of poverty, the population will be unlikely to avail
the swiching cost. And this also reduces the risk of high availiability of substitutes . The supplier
is not powerful in this case which is a plus for the company and the company can play with the
price to kept the production cost low. Since the market is yet to be matured and growing very
fast. I assume that the suppliers companies are also increasing. Some multinational companies
are showing their interest to enter into the market. This can lead some new suppliers to arrive
into the market and make the environment more competitive. So at some stage the bargaining
power of the suppliers will become very low.

So from the above discussion, it can be said that the Bangladesh Telecommarket was alot of
potential to offer considering strategically ignorable or somehow alterable threats. The market
looks very potential and prospective. And lots of a opportunities are waiting....