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1.

Introducing the Company


1.1 The Company
Pacific Bangladesh Telecom Limited (PBTL) is the first mobile phone service provider in the Indian
subcontinent. The address of the Head office is: Pacific entre! "#$ %oha&hali '( )ha&a "*"*.
PBTL +as founded b, Pacific -roup Limited and Hutchison .hampoa Limited. CityCell is the
brand name under +hich Pacific Bangladesh Telecom provides +ireless telecom or mobile phone
service and products to the general and other customers.
1.2 Pacific Group Ltd.
The Pacific -roup is a group of companies under common o+nership. The group has interests in
automobile service (Pacific %otors Ltd.)$ consumer electronics (Pacific Industries Ltd.)$ fisheries
(Bengal /isheries Ltd.)$ tea (0o,apara Tea ompan, Ltd.) and telecommunications (Pacific
Bangladesh Telecom Ltd.). This group of industries +as founded b, reno+ned industrialist and
current honorable foreign minister 1 %r. %. %orshed 2han.
1.3 Hutchison Whampoa Ltd.
Hutchison .hampoa Limited (H.L) is a Hong 2ong3based diversified$ multinational compan, +ith
its origins dating bac& to the "455s. (s part of the Li 2a36hing group of companies$ H.L7s ultimate
shareholder is heung 2ong (Holdings) Limited$ +hich has a #8.8 9 interest in the ompan,. In
terms of mar&et capitali:ation$ H.L is one of the largest companies listed on the Hong 2ong stoc&
e;change. .ith over "<5$555 emplo,ees +orld+ide$ the -roup operates five core businesses in #"
countries.
1.4 The Company History
In =ctober "885$ Hutchison Bangladesh Telecom Limited (HBTL) +as formed as a >oint venture
bet+een Bangladesh Telecom Limited (BTL) and Hutchison .hampoa Limited of Hong 2ong. In
%arch of that ,ear BTL had been issued a license b, Bangladesh Telegraph and Telephone Board
(BTTB) for operating cellular$ paging and other +ireless communication net+or&s.
Ho+ever$ soon there +as legal dispute bet+een BTTB and BTL regarding the refusal of BTTB to
provide Public 6+itch Telecommunication 0et+or& (P6T0) channels for connectivit, to the BTTB
net+or&. The 6upreme ourt then ruled in (pril "88? that BTTB +ould have to provide P6T0
connections to HBTL$ and that BTL +ould have to transfer the cellular portion to the license of
HBTL. BTTB gave HBTL the P6T0 connections in (ugust "88? and HBTL began commercial
operation of the first cellular telephone service in Bangladesh in the same month. The o+ners of
HBTL decided to sell their sta&es in the compan, due to the legal +ar. HBTL@s shares +ere divided
"
into t+o parts: T,pe ($ +hich +as held b, BTL and T,pe B$ held b, Hutchison. Aach t,pe of share
represented <59 title of HBTL. Pacific %otors Limited bought the t,pe ( shares +hile Hong 2ong
based financial investors /ar Aast Telecom Limited bought the T,pe B shares.
=n "*th /ebruar, "88B$ HBTL +as renamed Pacific Bangladesh Telecom Limited. PBTL uses the
brand name it,ell to mar&et its cellular products. In order to boost the financial and also the
managerial strength of PBTL$ the shareholders of PBTL has completed the transaction under the
agreements in +hich /u>itsu Limited$ Capan and (sian Infrastructure )evelopment ompan,
((I)A)$ established in a,man Islands$ +ould acDuire "59 and *59 eDuit, shares in PBTL$
respectivel, on Cune *555.
.ith this acDuisition of "59 shares in PBTL b, /u>itsu Limited$ a -lobal /ortune <55 compan,$ the,
have further strengthened their presence in Bangladesh and also have demonstrated confidence as +ell
as their commitment to the Bangladesh mar&et. /u>itsu has long been suppl,ing %icro+ave lin&s and
telecommunications eDuipment to BTTB and is clearl, a leading mar&et pla,er in providing
telecommunication solutions in Bangladesh. Being "59 eDuit, shareholder of the compan, /u>itsu is
in a position to nominate " (one) )irector to the Board of PBTL.
Fig 1: Ownership structure of PBTL (CityCell)
Pacific Bangladesh Telecom Limited
(PBTL)
Pacific
Motors Ltd.
(PML)
(4!)
"u#itsu Ltd.
("L)
(1!)
"ar $ast
Telecom.
Ltd.
("$TL)
(%!)
&sian Inf.
'e(. Co. Ltd.
(&I'$C)
()!)
*
1.5 History in rief
Ta*le 1+ Chronology of CityCell,s &chie(ements
'ate $(ent
1989
Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular, paging, and other
wireless communication networks.
Apr-90
Hutchison Bangladesh Telecom Limited (HBTL) was incorporated in Bangladesh as a joint
venture between BTL and Hutchison Telecommunications (Bangladesh) Limited.
Aug-93 1st cellular operation in the outh !sian sub"continent
Aug-93 HBTL began commercial operation in #haka using the !$% mobile technolog&.
Dec-93 %aci'ic $otors Limited ac(uired the entire )*+ share holding o' HBTL.
Feb-96
HBTL was renamed as %aci'ic Bangladesh Telecom Limited (%BTL) and launched the brand
name ,-it&-ell #igital. to market its cellular products.
Mar-97 1st to e/tend coverage to -hittagong.
Apr-97 -it&-ell began commercial operation in -hittagong.
Mar-99 1st to adopt -#$! technolog&. -#$! technolog& was 'irst introduced b& -it&-ell.
Jan-01 1st to set"up a communications backbone to -hittagong.
Apr-01 #haka"-hittagong microwave is launched.
Nov-01 -it&-ell introduced the 1)"second pulse rate in the cellular industr& o' Bangladesh.
Jan-02 -it&-ell commences operations in the &lhet 0one.
Jan-02
1alue !dded ervices (1!), such as 23 hour billing in'ormation, news, services, sports, etc., are
introduced.
Mar-02 4irst operator in Bangladesh to o''er o''"peak rates.
July-02 4irst operator in Bangladesh to o''er prepaid services with two"wa& %T5 (BTTB) connectivit&.
Sep-02 -it&-ell e/tends coverage to 6angpur, #inajpur, 7 &edpur, the northern districts o' Bangladesh.
Oct-02 hort $essage ervice ($) is introduced.
Jan-03 -it&-ell launched its services in the major northern business cit& o' Bogra.
Feb-03 4irst operator in Bangladesh to introduce the 8ne28ne post"paid package.
Jun-03 -it&-ell reaches a coverage level o' 3* districts out o' a total o' 93 (91 districts eligible).
Jun-03 5etwork capacit& is increased to 23*,***.
Aug-03
-it&-ell introduces ,!mar %hone., a postpaid mobile"to"mobile package o''ering the lowest
outgoing rate per minute in Bangladesh.
Sep-03 4irst operator in Bangladesh to introduce :## and 5;# 'or prepaid subscribers.
Oct-03 -it&-ell reaches a coverage level o' )1 districts out o' a total o' 93 (91 districts eligible).
Nov-03 -it&-ell<s 23"hour customer call center opens. 5etwork capacit& is increased to 2=*,***.
Mar-0! -it&-ell opens its customer service centres > da&s a week countr&wide.
June-0! -it&-ell launches 6:$ based handsets.
Mar-0"
-it&-ell introduces, ,!laap -all me., a pre"paid BTTB both"wa& connectivit& package with the
uni(ue ,-all2-ash. 'eature to earn (talk"time) credits upon receiving -it&-ell calls.
June-0" ingtel ac(uires 3)+ e(uit& stake o' -it&-ell. Has a call option to ac(uire another 1)+ b& 2**>.
). Mission- .ision- /*#ecti(es- 0trategies
?
2.1 !ission
PBTL@s mission statement is "To e the most successful cellular# pa$in$ and other %ireless
ser&ice pro&ider in 'an$ladesh y &irtue of ha&in$ $reater operatin$ e(pertise.) it,ell@s
inherent emphasis is on Dualit,$ not cheapness of service. The first priorit, is to provide a high end
service that can be used for both commercial and personal use.
2.2 *ision
The Eision of the compan, is "To to e the leader in the Telecom industry in the re$ion and
pro&ide a complete communication solution to the customers %ith a smile.) There is an emphasis
on strong customer relations. This is important to it,ell especiall, as$ until recentl,$ the,
positioned their pac&ages as high end pac&ages (corporate and business users). 6uch customers +ill
reDuire strong support for brand lo,alt, to develop.
2.3 +,ecti&es
2.3.1 -ualitati&e +,ecti&es.
Increasing service offerings.
A;panding the net+or&.
reating innovative$ uniDue$ and cost3effective various products to customers.
Increasing loyalty by focuse custo!er retention progra!"
2.3.2 -uantifiale o,ecti&es.
Increase subscriber base to " million b, )ec ?"$ *55<
88.<9 overall net+or& availabilit, b, the end of *55<
0et+or& coverage in B" districts (out of eligible B") b, the end of *55<
2.4 /trate$ies
2.4.1 0unctional Le&el /trate$y
PBTL@s focus is on efficienc,$ Dualit,$ innovation$ and customer responsiveness.
2.4.2 'usiness Le&el /trate$y
PBTL applies cost leadership and differentiation strategies as its business level
strategies.
2.4.3 Corporate Le&el /trate$y
PBTL follo+s related diversification as their corporate level strategies.
#
%. /rgani1ational 0tructure
PBTL has a total of about <55 emplo,ees:

Fig #: Organogra! of Pacific Banglaesh Teleco! Li!ite
3.1 /ales 1 !ar2etin$. (s the name implies$ this division@s >ob is to conduct mar&eting promotion
of it,ell. The >ob of its emplo,ees is to maintain relationship distribution channel$ media$ and
corporate clients. This division also deals +ith value added services$ brand and product design.
In the 6ales )ivision there are hannel 6ales$ orporate 6ales and )irect 6ales. In the %ar&eting
)ivision$ there are %ar&et ommunications$ Brand$ E(6$ Product )evelopment and /.T F
Bac&bone )epartments. The 6enior Eice President is the hief %ar&eting =fficer of this 6ales F
%ar&eting )ivision. )etails about the departments have been discussed in the follo+ing chapter.
<
3.2 Customer /er&ice +peration# 'illin$ and 3T. This department deals +ith customer after the sale
occurs. %ain activities of this department includes maintaining data base of the customers$ preparing$
distributing$ and collecting the bills$ activating ne+ connections$ deactivating connections$ helpline
service$ interchanging of the )%( sets$ collecting the fault, and repairable sets$ returning repaired
sets$ changing )%( sets and so on. This department is divided into three divisions.
a4 'illin$ and 3T 4 /er&ice 5eli&ery
Fig $: Billing an IT
Fig %: &er'ice (eli'ery
3.3 0inance and Commercial. This department is divided into t+o divisions$ a) L preparation and
Purchase$ and b) /und %anagement. Here L is opened for purchasing of sets and eDuipment$ and all
the funds collected are used and controlled for the ma;imum benefit of the compan,. This department
is also responsible for the budgeting +hich ta&es place once a ,ear for the ne;t three ,ears.
Fig ): Finance an Co!!ercial
'illin$ and 3T
6is2 !ana$ement 6e&enue Generation
/er&ice 5eli&ery
0ront +ffice 7ccount *erification Collections Wor2shop
0inance and Commercial
Commercial LC 1
Purchasin$
0und !ana$ement
B
3.4 8n$ineerin$. This department is responsible for the setting up and maintenance of the heav,
eDuipment and the ma>or telecom channels reDuired for providing services to customers. This
department is divided into G divisions. The, are 6+itch$ entral Base station$ %icro+ave$ Hadio
/reDuenc,$ Base Transceiver 6tation$ Po+er$ Planning and development.
Fig *: +ngineering
3.5 7ccounts. This department is responsible for collecting direct cash or chec& or charging credit
cards from the customers +ho are pa,ing for the service and eDuipment. This department is also
responsible to maintain the balance of store +here sets and eDuipments are gathered for future purpose
and present operation.

Fig ,: -ccounts
8n$ineerin$
/%itch
Central 'ase /tation Control
'ase Transcei&er /tation
Plannin$ 1 5e&elopment
!icro%a&e
6adio 0re9uency
Po%er
7ccounts
7ll type of payments collection /tore :/ets and e9uipments4
G
3.; 7dministration and Human 6esource. (s the name implies$ this department has three ma>or
divisions. The (dministration division is responsible for ontract$ Legal and Protocol F -overnment
affairs. The Purchase F -eneral %aintenances is responsible for Purchase F 6upport and Astate F
Properties$ %aintenance F general securit,. The Human Hesource department is responsible for
procuring future emplo,ees according. This department is also responsible for maintaining the
database of all emplo,ees$ leaves$ attendance$ health care and related fields of emplo,ees.
Fig .: -!inistration an /u!an 0esource
7dministration and Human 6esource
Contract# Le$al and
Protocol
Procurement Purchase 1 General 7dmin
4
4. "unctions of the 0ales and Mar2eting 'i(ision
The ma>or mar&eting goal of this division is to capture a significant mar&et segment that +ill ,ield
ma;imum revenue b, means of passing on directl, or indirectl, high end cellular phone service.
%an, clients provide telecom services to their localit, b, Tellular or /i;ed .ireless pac&age (/.T).
The rates of this pac&age ma, be lo+ but this is offset b, the high freDuenc, of usage and the strong
support claimed to be provided b, it,ell.
Fig 1: &ales 2 3ar4eting (i'ision
4.1 /*P
The office of the 6enior Eice President of 6ales and %ar&eting )ivision is responsible for
coordination of mar&eting activities across the compan, and to provide top level management +ith an
overall picture of the mar&et situation.
4.2 *P
The Eice3President of the division oversees the product and business development scenario of
the compan,. He is responsible to the 6EP of the division.
4.3 Product 5e&elopment
This department is responsible for find out the innovative features that can attract the e;isting
and potential customers. Product development is one of the &e, departments in the compan,. .hile
developing ne+ pac&ages and tal& plans this department has to &eep in mind the profit and cost issue.
Inder all these constraints the department has been producing e;citing and ne+ features +hich
ultimatel, attract customers.
6EP
EP
%anager
Product )evelopment
%anager
Brand
%anager
Ealue (dded 6ervice
%anager
%ar&eting
ommunication
%anager
hannel 6ales
%anager
orporate
6ales
%anager
/.T and Bac&bone
6enior
A;ecutive
A;ecutive
8
4.4 *alue 7dded /er&ice :*7/4
This is another department +hich also deals +ith product development but this department is
concerned onl, +ith the Ealue (dded 6ervices that the compan, offers. Ealue added services are
those other than basic voice calls. it,ell@s E(6 department is one of leading E(6 providers in the
countr, in terms of the number of +ide range services that it is providing.
#.#." 6hort %essages 6ervice (6%6)
#.#.* Eoice %ail 6ervice
#.#.? all onferencing
#.#.# 6%6 Based Information 6ervices
/un (Co&es$ Duotations$ etc.)
/inancial 6ervices
Amergenc, 6ervices
6ports
6%6 Ban&ing F others
Table 2: All of the Voice Based Information Services at a Glance
Foo#Fone $locat%on ba&e#' J"5"
F%reFone $locat%on ba&e#' J8""
(ol%ce()one $locat%on ba&e#' J888
Me#%()one $locat%on ba&e#' J<5<
Auto*ob%le +or,&)op $locat%on ba&e#' JBBB
Flo+er &)op $locat%on ba&e#' J#5#
N-. Ne+&()one JGGG
/)annel 0 Ne+&()one J###
A-N 1angla Ne+&()one J???
2eat)er()one J"**
3vent&()one J"*?
A%r()one J"*#
4a%l()one J"*<
35c)ange 4ate()one J"*B
6oro&cope()one J"*G
(rayer()one JG4B
4.5 'rand
The brand department of the compan, deals +ith image o the brand to the customers. It
basicall, helps the brand to portra, its intentioned image to the potential target group. This
"5
department along +ith the %ar&eting ommunication department deals +ith the promotional
activities.
4.; Corporate /ales
There is a separate office of assistant vice3president for corporate sales +ho is also
responsible for corporate customer relations. orporate customers are given high priorit, in terms of
sales and also in terms of after sales service. =f course this is due to the high usage and need for good
long term good+ill +ith such corporate clients. This department ho+ever deals mainl, +ith sales to
corporate customers and maintenance of relations +ith both current clients as +ell as scouting out
potential ne+ corporate clients$ +hereas the after sales service and other issues are dealt +ith b, the
customer services operations section of the compan,.
4.< Channel /ales
The assistant vice president responsible for channel management has the ver, important >ob
of setting up mar&eting channels b, +hich pac&ages are distributed among clients and b, +hich
feedbac& is obtained from customers. This department is responsible for the selection of ne+ dealers
and motivating them and current dealers to promote it,ell pac&ages to their customers in their
respective areas. This department is also responsible for seeing that there is an e;cellent support
net+or& for each dealer and that the, are satisfied +ith their monetar, or other+ise remuneration.
This department is also responsible for chec&ing that each dealer does not cut into the sales of
another dealer in a ver, pro;imal region.
4.= !ar2etin$ Communications
The chief responsibilit, of this department is logicall,$ promotion and communication of ne+
products and product ideas to customers both directl, through selection of advertising media$ then
dissemination of information b, means of advertisementsK and indirectl, through dealers b, providing
them +ith promotional material. This department is also responsible for public relations +hich do not
include corporate relations. This is handled$ as +e have seen$ b, other departments. The responsibilit,
of this department is immensel, important especiall, in the introduction stage of a pac&age for
customers. The, also provide help for other departments such as the front office and services
mar&eting in order to promote it,ell pac&ages to both current and ne+ customers. This helps ver,
much in handling cases of dissatisfied customers and also in case of ad>usting customers +ith old
pac&ages +ho have to be convinced to upgrade their pac&ages to the ne+ ones on offer.
""
The compan, sub3contracts its promotional materials production to local companies. (
regular number of events are held to integrate promotional activities +ith public relation e;ercises to
enhance the image of it,ell and better promote the pac&ages on offer.
4.> Product 1 Tariff desi$n
This sub3department is under the Product )evelopment department and is responsible for the
design of pac&ages and the fi;ing of tariff rates +hich are actuall, the rates of usage for each pac&age.
This department is also responsible for the coordination of mar&et research for the +hole compan,.
The, +ill integrate &no+ledge gleaned from e;tensive mar&et research into the design of ne+
pac&ages that fulfills the needs of customers. This is done ver, freDuentl, as the needs of even the
most stable of customer segments change and the compan, has to change the tariff structure of its
offered pac&ages accordingl,.
4.1? 0WT and 'ac2one
This particular department loo&s after the /i;ed .ireless Terminal clients and the pac&ages.
/.T has been one of the most profitable sectors for the compan,. (s a result this department has a
great significance to the compan,. PBTL has underta&en a commercial program to e;pand its business
activities to selling bac&3bone for data transfer to corporate clients. This net+or& stretches from
hittagong to 6,lhet through )ha&a. It has immense potential and ma, generate significant revenues
for the compan,.
The overall structure of the sales F mar&eting department and its sections of it,ell has both
advantages and disadvantages in terms of organi:ational structural and respective functionalit,.
"*
3. Products and 0er(ice offered *y Pacific Bangladesh Telecom Limited
5.1 Post Paid Pac2a$es
5.1.1 @CityCell 1???A :6e$ular4. ommercial' Business' Personal use b, high income
consumers. This product can reach the Local TFT$ 0.)$ I)) and all %obile service operators
across the countr,. It is one of the old pac&ages of it,ell. 6till this pac&age is being provided to
man, high income group consumers. Both small and large institutions and organi:ations subscribe the
service as their needs.
CityCell 1??? :Bormal /cenario4.
!onthly /uscription char$e T2. 1???
+ut$oin$ 6ate Pea& (4(%34P%) =ff3Pea& (4P%1""P%) 63=3P (""P%14(%)
To %obile (Lonal) ?.55 ?.55 ".<5
To %obile (Inter:onal) 4.55 4.55 4.55
To TFT ?.55 M BTTB ?.55 M BTTB ".<5 M BTTB
3ncomin$ 6ate
/rom TFT *.55'min *.55'min ".55'min
CityCell 1??? :6oamin$ /cenario4.
!onthly /uscription char$e T2. 1???
+ut$oin$ 6ate /lat Hate
To %obile (Lonal) ?.55
To %obile (Inter:onal) 4.55
To TFT ?.55MBTTB
3ncomin$ 6ate
/rom TFT ?.55
5.1.2 @CityCell 5??A :6e$ular4. ommercial' Business' Personal use b, high income
consumers. This product can reach the Local TFT$ 0.)$ I)) and all %obile service across the
countr,. This is one of the regular pac&ages +hich have the most number of subscribers. This pac&age
is &no+n and admired to all. The subscription fee and the tariff are affordable than the other mobile
operators are offering. These da,s not onl, high income group but also high medium and medium
income groups also use this service because of the lo+est billing rate offered b, it,ell.
CityCell 5?? :Bormal /cenario4.
!onthly /uscription char$e T2. 5??
+ut$oin$ 6ate Pea& (4(%34(%) =ff3Pea& (4P%3""P%) 6=P (""P%34(%)
To %obile (ll %obiles #.55 ?.55 ".<5
To TFT$ 0.)$ I)) #.55 M BTTB ?.55 M BTTB ".<5 M BTTB
"?
3ncomin$ 6ate
/rom TFT ?.55'min *.55'min ".55'min
CityCell 5?? :6oamin$ /cenario4.
!onthly /uscription char$e T2. 5??
+ut$oin$ 6ate Pea& (4(%34(%) =ff3Pea& (4P%3""P%) 6=P (""P%34(%)
To %obile (ll %obiles #.55 ?.55 ".<5
To TFT$ 0.)$ I)) #.55 M BTTB ?.55 M BTTB ".<5 M BTTB
3ncomin$ 6ate
/rom TFT ?.55'min *.55'min ".55'min
5.1.3 @!oile 25?A :!oile to !oile %ith 'TT' 3ncomin$ and Limited +ut$oin$4.
Personal use b, middle income consumers. 6ignificant number of customers is having this
subscription. It is ver, popular among students and medium salaried servicemen and a good number
people from different occupation are using this line.
!oile 25? :Bormal /cenario4.
!onthly /uscription char$e %ith CL3 T2. 25?
+ut$oin$ 6ate Pea& =ff3Pea& 6=P
To %obile (Lonal) #.55 ?.55 ".<5
To %obile (Inter:onal) B.55 <.55 <.55
To TFT 0'( ?.55 M BTTB ".<5 M BTTB
3ncomin$ 6ate
/rom TFT ?.55'min *.55'min ".55'min
!oile 25? :6oamin$ /cenario4.
!onthly /uscription char$e %ith CL3 T2. 25?
+ut$oin$ 6ate Pea& =ff3Pea&M6=P
To %obile (Lonal) #.55 ?.55
To %obile (Inter:onal) B.55 <.55
To TFT 0'( 0'(
3ncomin$ 6ate
/rom TFT B.55 #.55
Incoming from an, mobile is free.
"
st
minute from BTTB is free for all post paid cellular pac&ages.
"#
5.1.4 @7maar PhoneA :!oile to !oile4. Personal use b, mainl, medium income
consumers. Though not +idel, used but still this option is open for a group of people +ho >ust +ant
mobile to mobile connection in lo+ rate.
!oile to !oile :Bation Wide 6oamin$ /cenario4.
!onthly /uscription %ith CL3 T2. 2?? Bation Wide 6oamin$
+ut$oin$ Pea& (4(%14P%) =ff3Pea& (4P%14(%)
To %obile <.55 #.55
Pulse "< sec. applicable from *nd minute
5.1.5 @TellularA :0i(ed Wireless Telephone4. ommercial'Business use b, commercial
institutions and business organi:ations. This pac&age has been mostl, used in village area$ but
recentl, +e have seen that in cit, area man, people using this service for mobile to mobile business
because of lo+ rate. High freDuenc, antenna help the /.T sets to reach signals be,ond the service
area.
Tellular :0i(ed Wireless Telephone4.
!onthly /uscription 0ee T2. 25?
+ut$oin$ 6ate Per !inute
To %obile (.ithin Lone) *.<5
To %obile (=ther Lone) <.55
To TFT$ 0.)$ I)) *.<5 M BTTB
3ncomin$
/rom TFT$ 0.)$ I)) ".<5'min
/rom (n, %obile /reeN
Pac2a$e Tar$et mar2et se$ment
(amar Phone Personal use b, mainl, medium income consumers
6habar Phone Personal use b, middle income consumers
it,ell <55 ommercial'business'personal use b, middle'high income consumers
it,ell Premium ommercial'business'personal use b, high income consumers
/.T (Tellular) pac&ages
ommercial'business use b, commercial institutions and business
organi:ations
Table $: Current Post5pai pac4ages: features an target seg!ent
5.2 Pre Paid Pac2a$es
The ne+3generation subscribers are ver, interested +ith this service. It is also helpful for limited
income group of people. O(alap@ pre3paid card is available ever,+here and this service provides flat
rate and nation +ide roaming. ( ver, significant edge that it,ell pre3paid pac&ages have over other
pre3paid pac&ages from other companies is the pac&age that features T F T incoming and outgoing.
Ot)er bene7%t& 7or t)e &ub&cr%ber8
6%6 facilit, and other value added services
"<
6cratch card in a variet, of denominations (e.g. T&. ?55$ T&. #55 and T&. <<5)
2no+ the balance b, dialing J4""
5.2.1 @7alap 24A :!oile to !oile %ith T 1 T 0acilities4. (alap *# is mobile3to3mobile as
+ell as mobile3to3BTTB pac&age. This plan gives subscribers 1
(ccess to an, mobile in Bangladesh
*#3hour BTTB connectivit,
*#3hour 0.) and I6) facilit,
Eer, attractive and simple tariff plan
/reedom to choose ? it,ell numbers and ma&e calls at <59 reduced tariff under =ne*=ne
scheme9
"B
&alap )4 (&lso 2no4n as &alap &)
&alap )45&alap &

Call Type Call Charge
1
/utgoing
To !n& $obile Tk. 2.)*
To BTTB
2
Tk. 2.)*
Incoming
4rom !n& $obile 4ree
4rom BTTB Tk. 1.**
Notes:
1
4or ever& ?* second pulse 'rom the 'irst ?* second
2
BTTB charges applicable
@ 4or 8ne28ne calls to up to ? -it&-ell numbers, talk 'or as low as Tk. 1.2)Apulse
5.2.2 @7alap 'A :!oile to !oile4. In this option customer +ill have onl, mobile to mobile facilit,.
This option is offering pre3paid mobile in a lo+ rate. This plan gives the subscriber 1
(ccess to an, mobile in Bangladesh
Lo+er tariff especiall, at pea& period
/reedom to choose " it,ell number and ma&e calls at <59 reduced tariff under =ne*=ne
scheme.
&alap B
&alap B

Call Type Call Charge

%eak
(=!$"=%$)
8'' %eak
(=%$"11%$)
uper 8'' %eak
(11%$"=!$)
/utgoing To !n& $obile Tk. ).**Amin Tk. 3.**Amin Tk. 2.**Amin
Incoming 4rom !n& $obile 4ree 4ree 4ree
Notes:
@ 2* second pulse a'ter 'irst minute
@ 4or 8ne28ne calls to 1 -it&-ell number, talk 'or )*+ o' the above tari''s
@ 1!T applicable
"G
5.2.3 7alap Call !e
(alap all %e is a full BTTB connectivit, pac&age +ith the uniDue and innovative call*cash feature.
This plan gives the subscriber 1
!ccess to an& mobile in Bangladesh
*#3hour BTTB local'0.)'I6) connectivit,
Inder the call*cash feature (alap all %e subscrivers +ill get T&. 5.*< added to their
account ever, minute +hen the, receive calls from other it,ell phones
/reedom to choose up to ? it,ells number and ma&e calls at <59 reduced tariff under
=ne*=ne scheme
it,ell to it,ell 6%6 at a reduced rate of T&. ".<5
(alap all %e
&alap Call Me

Call Type
Call Charge
1

/utgoing To !n& $obile Tk. 2.)*

To BTTB
2

Tk. 2.)*
Incoming 4rom -it&-ell $obile Tk. *.2) credit per minute
4rom !n& $obile 4ree
4rom BTTB Tk. 1.**
Notes:
1
4or ever& ?* second pulse 'rom the 'irst ?* second
2
BTTB charges applicable
@ 4or 8ne28ne calls to up to ? -it&-ell numbers, talk 'or as low as Tk. 1.2)Apulse
@ 1!T applicable
@ -it&-ell to -it&-ell $ B Tk. 1.)*
"4
4%
31%
29%
36%
Citycell 1000
Citycell 500
Mobile 250
Others
Fig 16: Post5pai 2 pre5pai pac4age share of CityCell
90%
10%
Aalap A
Aalap B
"8
6. Technology Comparison+ &MP0- C'M& and 70M
;.1 7!P/. The most commonl, used cellular s,stem in 0orth (merica$ the (dvanced
%obile Phone 6,stem ((%P6) had also gained +idespread acceptance in (sia (speciall, in 2orea$
Hong 2ong$ Capan$ 6ingapore$ etc). (n analogue s,stem$ this +as introduced in the mid 45s and used
a techniDue &no+n as /reDuenc, )ivision %ultiple (ccess (/)%() to allocate hannels. Thus it
divides its entire allocation in sections of ?5 2H: and uses each of these sections as channel. Thus
(%P6 is able to provide ?5 channels per "%H: of freDuenc, allocated. The principal behind (%P6
is analogous to dividing up a large hall room (the entire freDuenc, allocated to the operator) into a
number of smaller rooms (channel) once the first pair has completed their conversation and left the
room (disconnected).
;.2 Code 5i&ision !ultiple 7ccess :C5!74. ode )ivision %ultiple (ccess is a s,stem in
+hich a subscriber uses the entire freDuenc, for the entire period that his phone is active. Installing of
segregating users b, freDuenc, (/)%() or time (T)%() this technolog, segregates customers b,
coding the signals in such a manner that each customer decr,pts onl, one signal at an, one signal at
an, given time. This +ould be similar to allo+ing a large number of people into the hall room$ but
reDuiring each pair to converse in a different language. Thus +hile ever,one +ould hear ever,one
else$ this +ould >ust be more of bac&ground noise rather than interference. =n the other hand$ each
person +ould be able to understand this partner$ because the, +ould be spea&ing the same language.
=ne of ma>or differences bet+een )%( and the other e;isting technologies is in terms of freDuenc,
reuse. Ising )%( an operator +ould use the entire allocated freDuenc, in ever, cell. The reuse
pattern$ therefore$ is in effect a Oone cell reuse pattern@. Therefore$ the operator can serve ma, more
customers per unit of allocated band+idth compared to either (%P6 of -6%. In general$ )%(
capacit, is rated to be "5 to *5 times higher then analogue techniDues such as (%P6$ and ? to <
times higher than other digital cellular technologies such as -6%.
;.3 G/!. -6% stands for P-lobal 6,stem for %obile ommunications.P It is mostl, a
Auropean s,stem and is largel, unused in the I6. Introduced in the mid345s$ the -lobal 6,stem for
%obile (-6%) ommunications is a digital cellular used e;tensivel, in Aurope and (sia. -6% is
interesting in that it uses a modified and far more efficient version of T)%(. -6% &eeps the idea of
timeslots and freDuenc, channels$ but corrects several ma>or shortcomings. 6ince the -6% timeslots
are smaller than T)%($ the, hold less data but allo+ for data rates starting at ?55 bits per second.
Thus$ a call can use as man, timeslots as necessar, up to a limit of "? &ilobits per second. .hen a
call is inactive (silence) or ma, be compressed more$ fe+er timeslots are used. To facilitate filling in
gaps left b, unused timeslots$ calls do PfreDuenc, hoppingP in -6%. This means that calls +ill >ump
bet+een channels and timeslots to ma;imi:e the s,stem@s usage. To compare +ith the other s,stems$
it should be noted that -6% reDuires " .att of output po+er from the phone.
*5
;.4 7d&anta$es of C5!7: There are numerous advantages of using )%( technolog,$ the
most important of +hich are:
:a4 Hi$her Capacity. /ince )%( ma&es more efficient use of the available spectrum$ it
can provide greatl, increased capacit,. )%( capacit, is rated to be "5 to *5 times higher than other
analogue techniDues such (%=P6$ and ? to < time higher that other digital cellular techniDues such as
-6%. .ith higher capacit,$ )%( accommodates higher demands and supports ne+ digital services
such as data transmission and mobile fi;ing.
:4 /implified Plannin$. )%( allo+s s,stem planning to become much easier through the
use of the same freDuenc, in ever, sector of ever, cell. (s the entire freDuenc, is used in each cell$
operators do not have to retune base stations$ thus capacit, e;pansion is Duic&er and simpler.
:c4 'etter *oice and Call -uality. The uniDue encoding scheme used foe each different
)%( conversation virtuall, eliminates cross3tal& and dramaticall, reduces the impact of
interference from other sources. (lso$ The larger band+idth of )%( signals (the signals use the
entire freDuenc, versus onl, a portion for competing technologies) means that the, are less prone to
fading compared to the narro+er band+idths of (%P6 and -6%.
:d4 8nhanced /ecurity and Pri&acy. 6ince the signals are coded$ it is ver, difficult to
intercept and decode a )%( signal. This prevents eavesdropping and prohibits cloning and other
t,pes of fraud. (lso$ due to the +ider band+idth$ such phones are difficult to >am.
;.5 C5!7 &s. G/!. 7 Technical Comparison
;.5.1 7d&anta$es of C5!7.
Increased cellular communications securit,
6imultaneous conversations$ less call drops$ stronger net+or&
Increased efficienc,$ meaning that the carrier can serve more subscribers
Lo+ po+er reDuirements and little cell3to3cell coordination needed b, operators
A;tended reach 1 beneficial to rural users situated far from cells
6maller phone sets
;.5.2 5isad&anta$es of C5!7.
)ue to its proprietar, nature$ all of )%(7s fla+s are not &no+n to the engineering
communit, for solving
)%( is relativel, ne+$ and the net+or& is not as mature as -6%
)%( cannot offer international roaming$ a large -6% advantage
*"
;.5.3 7d&anta$es of G/!.
-6% is alread, used +orld+ide +ith over <55 million subscribers
International Hoaming permits subscribers to use one phone throughout .estern Aurope
)%( +ill +or& in (sia$ but not popular Auropean destinations
-6% is mature$ having started in the mid345s. This maturit, means a more stable net+or&
+ith robust features. )%( is still building its net+or&
The availabilit, of 6ubscriber Identit, %odules$ +hich are smart cards that provide
secure data encr,ption give -6% e3commerce advantages
;.5.4 5isad&anta$es of G/!.
Lo+er voice clarit,
Less securit, for subscribers
/reDuent call drops
Higher number of carriers'base stations reDuired
**
1. Introduction to the Pro#ect
The topic of m, internship pro>ect is "The prospect of discount ser&ices and loyalty pro$ram
under the customer retention scheme of CityCell).
I have +or&ed under the Ealue (dded 6ervice (E(6) division of the 6ales F %ar&eting )epartment
for past three months.
)uring this period I had been assigned to create as man, valued business partners as possible for the
discount services to be offered to a certain section of the subscribers in order to retain customers of
the telecom operator. %, other responsibilities included maintaining various documents including
%emorandum of Inderstanding (%oI) papers$ creating amendments if and +hen necessar,$ regular
update of relevant data and s,nchroni:ing information +ithin it,ell and its ne+ partners.
). 0ignificance of the 0tudy
Though PBTL +as the compan, +hich first brought cellular service in this subcontinent$ it could not
be the mar&et leader in the telecom industr,$ as of no+. The gro+th rate of the compan, is slo+. The
subscriber base might suggest the compan, is alread, in the #
th
position among the # active mobile
competitors. /rom m, point of vie+$ it is the technolog, +hich is not popular in this part of the +orld.
)%( technolog, is the latest technolog, for mobile communication but ma,be too advanced for
this mar&et. But apart from the technolog, if an operator provides Dualit, service (net+or&$ customer
care$ E(6)$ offers some attractive pac&ages$ and ta&es %n%t%at%ve& for the subscribers$ it is possible to
be the mar&et leader.
This is +here the other mobile operators have started to +or& effectivel, in a greater e;tent. (fter the
entr, of banglal%n, (=rascom Bangladesh Telecom Ltd.)$ the telecom mar&et has become volatile
+ith e;isting subscribers are migrating vigorousl, at the reduction of call rates and introduction of
attractive pac&ages. 6ome operators have been seeing their subscriber base increase e;ponentiall,
+hile others are +istfull, +atching theirs decrease. In vie+ of these$ it,ell has decided to launch a
customer retention plan for its lo,al and dedicated subscriber base.
Therefore I have found it challenging to be involved in a +or& from +hich the compan, can benefit.
Through m, surve, I have tried to find about the discount service acceptabilit, among respondents$
the customer s+itching pattern and the satisfaction'dissatisfaction criterions among the e;isting
it,ell subscribers. I have also +or&ed on possible avenues on +hich it,ell can +or& further to
offer attractive benefits to its lo,al subscribers. Through m, findings and anal,ses I believe it +ould
be easier for the compan, to ta&e decisions about the areas the, have to reshape or develop regarding
their customer retention plan.
*?
%. /*#ecti(es
%.1 Broad /*#ecti(e
To have an in3depth anal,sis into the prospect of the ustomer Hetention 6cheme of it,ell
%.) 0pecific /*#ecti(es
To conduct a competitor and industr, anal,sis of the telecom mar&et and present its potentials
To assess PBTL@s current state of operation and future direction
To carr, out a 6.=T anal,sis of it,ell
To find out the satisfaction level of the subscribers
To trace the specific areas +here the subscribers are dissatisfied
To identif, the customer s+itching pattern and +a,s to retain them
To evaluate the lo,alt, program offered b, the operator under its customer retention scheme
To loo& into the discrepancies of the discount service to be launched for its lo,al and high3
end users
4. 8ypothesis
%, h,pothesis is$ (lthough PBTL brought Oit,ell@ as the first mobile telecommunication service
in the subcontinent$ its customers are not full, satisfied +ith the service. If PBTL does not ta&e care
of these dissatisfactions$ it +ill be difficult for PBTL to retain its subscribers$ thus maintain its
position and increase its mar&et share.!
3. Methodology
The topic of m, pro>ect is 7The prospect of iscount ser'ices an loyalty progra! uner the
custo!er retention sche!e of CityCell89
5.1 5ata Collection !ethod. In m, stud, I have mainl, depended on primar, data$ +hich have been
collected through direct and phone surve,.
5.2 -uestionnaire pattern. I have developed m, Duestionnaire (enclosed in the (ppendi;) mainl,
focusing on the discount service acceptabilit, among respondents$ the customer s+itching pattern and
the satisfaction'dissatisfaction criterions among the e;isting it,ell subscribers. I have also +or&ed
on possible avenues on +hich it,ell can +or& further to offer attractive benefits to its lo,al
subscribers. It is a mi;ed open F close3ended Duestionnaire that consists of "G3odd Duestions.
*#
5.3 Population. 6ince I +as tr,ing to assess the satisfaction level of various factors of the compan,$
rate of acceptabilit, of various possible benefits and the discount service options$ I have surve,ed the
it,ell subscribers onl,.
5.4 /ample /iCe. The sample si:e has been 45.
5.5 /amplin$ !ethod. )ata collection has been done based on convenient random sampling through
means of telephone and in the premises of it,ell dealer outlets +here customers visit to bu, ne+
sets and connections.
5.; /econdary 6esearch. I have also collected data and necessar, information from the E(6 (Ealue
(dded 6ervice) F the ustomer are department.
5.< 0indin$s 1 7nalysis. The results of the surve, have been represented through bar and pie charts.
%, research findings came out through anal,:ing those data.
6. Limitations of the 0tudy
6ome limiting factors +ere faced +hile conducting the research and preparing the report. These
factors are as follo+s:
0o prior research has been done on this particular issue. The lo,alt, pro>ect is an e;periment
to retain customers +hich is in its initial phaseK the privilege service for high3end users has
not ,et been launched. 6o the information presented and data collected is ver, ra+.
The findings and anal,sis are based on the results conducted from 45 respondents onl,. )ue
to the data collection method (random sampling) and non3availabilit, of lo,al'high3end
subscribers$ their opinions have not been reflected in the surve,. Therefore it is not a perfectl,
representative sample.
The sample that used to conduct the surve, is mostl, from )ha&a division. 6o concerns on
some issues such as net+or&$ ma, contain some biasness.
%oreover$ it has not been possible to get all reDuired internal information of the compan, as
these are treated as confidential compan, information.
*<
9. Industry &nalysis *y means of the 3:forces model
Integrating the various five forces$ +e get:
<.1 'ar$ainin$ po%er of /uppliers.
Bargaining po+er of suppliers is high because:
". 6uppliers provide )%( sets that cannot be found easil, from man, suppliers
*. 6uppliers do not depend solel, on it,ell for significant portion of sales
?. Products are not differentiated. Ho+ever this has little effect on over3all supplier po+er
#. PBTL cannot verticall, integrate bac&+ards as it does not have the capabilit, to produce
hard+are +hereas the primar, suppliers ma, bu, a ma>orit, sta&e in PBTL
<.2 'ar$ainin$ po%er of 'uyers.
Bargaining po+er of bu,ers is comparativel, lo+ under certain conditions:
". Tellular customers have significantl, lo+ bargaining po+er because of the high cost of
procurement of a Tellular set. The, have to rel, on PBTL for spare parts and other help.
*. Isers of lo+ cost pac&ages ma, s+itch from it,ell to other pac&ages but onl, at a certain
cost: that of cost of purchase. In man, cases it is seen that such customers run up bills eDuivalent to or
above their credit limit then abandon their it,ell number. In such cases the bu,er@s bargaining
po+er is higher.
?. In cases of pac&ages li&e it,ell <55'"555 bu,ers have significantl, less purchasing po+er
because of the high deposits paid to PBTL (T& *$<55 for local TFT connections$ additional T& *$<55
for 0.) and T& "5$555 for I6) connections). This significant amount of investment means that
customers cannot shift easil, from one compan, to another.
<.3 Potential competitors.
Let us loo& at the potential competitor@s scenario from the barriers to entr, perspective:
". Bran loyalty: )ue to decreasing performance and slo+ progress in e;pansion of net+or&$
it,ell pac&ages inspire less brand lo,alt, than before. Ho+ever potential ne+ entrants to
the industr, +ill be deterred b, the high brand lo,alt, to -rameen pac&ages. Assentiall, it is
believed that the total potential mar&et has been fulfilled b, as much as three fourths. Thus
leaving a ver, small segment of customers for ne+ entrants to gain. High brand lo,alt, to
-rameen and the die3hard users of the other three companies: =rascom$ it,ell F (&tel
ensures that potential entrants +ill be strongl, discouraged b, the high brand lo,alt, in
current mar&ets.
*. -bsolute cost a'antages 2 econo!ies of scale: urrent pla,ers have a more or less absolute
cost advantage because the, have alread, invested in telecom infrastructure and have
recouped their investments. 0e+ companies +ill have to invest in eDuipment and +ill ta&e
*B
considerabl, greater time to cover initial eDuipment3purchase e;penses. onsidering the si:e
of the four companies alread, operating and the si:e of their investments$ the, +ill not ta&e
&indl, to an upstart in the industr, and ma, use as man, competitive options as possible 1
price strateg,$ Dualit, 1 to retain an upper hand.
?. (istribution channel: (nother ma>or barrier to entr, is the access to distribution channels.
.ith four companies competing in the current mar&et environment$ the distributors of mobile
phones are becoming ver, limited. %oreover$ man, retailers +ill not +ant to carr, more lines
of mobile phone pac&ages as the, have to sell the ones the, alread, have. Thus an, increase
in the number of companies +ill cannibali:e into current sales.
#. 9o'ern!ental regulations: In Bangladesh$ the telecommunications mar&et is still o+n b, the
state3o+ned BTTB. The, are thin&ing of entering the mobile phone mar&et. Thus the, +ill
not ta&e &indl, to ne+ companies entering the industr,. This ma, ma&e them influence the
government to introduce ne+ legislation designed to restrain the business activities of ne+
companies.
<.4 Threat of sustitute products. /or it,ell the threat of substitute products is ver, real. %an,
customers prefer to use -rameen Phone above that of it,ell primaril, for the net+or& reach. There
are also a number of other factors that ma&e it,ell vulnerable to this aspect of the five forces
method of anal,sis.
Ho+ever +e should note that in case of pac&ages are used for commercial use$ it,ell has a
significant hold over customers. In case of Tellular pac&ages$ the rates being so lo+$ man, clients
prefer to stic& +ith their it,ell Tellular sets even after e;periencing technical and net+or&
problems. %oreover as the initial purchase of a it,ell Tellular set constitutes a significant
investment 1 around T& <5$555 all inclusive 1 an o+ner of a Tellular set cannot easil, substitute his or
her product.
<.5 Threat of Be% 8ntrants. The entr, barriers to this industr, are ver, high as the government
controls the licensing arrangements$ and also the e;isting operators has made sufficient inroads into
the mar&et. This +ill strongl, discourage ne+ entrants into the mar&et although the government has
decided to give a fe+ ne+ licenses.
;. Competitor &nalysis
*G

The mobile telecommunications industr, in Bangladesh is no+ in its rapid gro+th stage. 6ince the
technolog, is e;pensive$ there are onl, four companies operating activel, the mobile service. The
other three companies are$ -rameen Phone$ (2Tel$ and =rascom Telecom. BTTB +ith its brand$
OTele3tal&@ has also ver, recentl, entered this competitive scenario.
(s operators of mobile cellular services$ (&tel$ -rameen Phone and Banglalin& are direct competitors
of it,ell. The PBTL license +as issued in "848. The three other license +ere a+arded during
0ovember "88B$ and are identical to each other$ ho+ever the licenses a+arded to (&tel$ -rameen
and 6heba (no+ Banglalin&) for their mobile cellular net+or&s differ in some aspects from the license
that PBTL holds.
The most significant differences are:
GrameenD'an$lalin2D7ET8L P'TL :CityCell4
Cellular mobile or fixed communications
%ust be digital technolog,. an be digital or analogue technolog,.
License Duration
Licenses valid for "< ,ears thereafter
rene+able annuall, based on performance.
License valid for *5 ,ears.
Frequency
(ssigned "5 %H:. (ssigned a total of #5 %H:.
Operator fee obligations
=perator pa,s "<9 of line rental revenues to
%inistr, of Post F Telecommunications and
call charges at actual to BTTB. (dditionall,$
operators pa, T& "5 million annuall, as
license fees.
PBTL has to pa, "59 of line rental revenues
and call charges at accruals to BTTB. 0o
license fees are pa,able.
Coverage of cell sites
overage of each cell ma, not be greater
than G &m in urban and "G.< &m in rural
areas.
overage is not restricted.
Rollout Obligation
=perators must performance obligations or
pa, fines.
0o such obligations.
=.1 Grameen Phone Limited.
-rameen Phone Ltd. (-P) is the current mar&et leader in terms of mar&et share$ +hich is
o+ned b, a consortium of investors comprising of -rameen Telecom and Telenor (0or+egian state
o+ned telecommunication compan,$ o+ning nearl, B<9 of total shares). -P is using the -6%
*4
technolog, to provide mobile cellular services to about ?.# million subscribers in Bangladesh. The
compan, started its service in %arch *B$ "88G.
-rameen Phone@s basic strateg, is coverage of both urban and rural areas. In contrast to the island!
strateg, follo+ed b, some companies$ +hich involves connecting isolated islands of urban coverage
through transmission lin&s$ the compan, has been building continuous coverage$ cell after cell. 6o far$
-P has installed more than *555 BT6@s around the countr, for cell to cell coverage. -rameen Phone
has the +idest coverage in Bangladesh. The compan, is planning to increase the net+or& coverage to
459 of the population from the current <G9 +ithin this ,ear.
=.2 7ETel :T!3'4.
Telecom %ala,sia International (Bangladesh) is a >oint venture bet+een Telecom %ala,sia
and ( 2 2han F co. T%IB also began operations in "88G using the -6% technolog,. T%IB offers its
mobile services under the brand name (2TAL. It operates as a Limited Liabilit, ompan,$ +here the
ma>orit, shareholder$ Tele&om %ala,sia$ o+n G59 shares$ +hile minorit, shares of ?59 are o+ned
b, (. 2. 2han F o. Bangladesh Limited. The compan, is no+ servicing around ".4 million
customers all over the countr,.
(&tel has been distinctl, ahead in offering the ?5 6econds Pulse! from the first minute of tal& time.
Toda,$ The compan, boasts the +idest International Hoaming service in the mar&et connecting ?"<
operators across "G5 countries. In addition$ (&tel is the first mobile operator to connect Tetulia and
Te&naf$ the northern and southern most points of Bangladesh. (&tel +as also the first to provide
seamless coverage along the )ha&a3hittagong high+a,. .ith a net+or& covering all B" (allo+able)
districts of Bangladesh$ coupled +ith the first Intelligent 0et+or& (I0) Prepaid Platform in the
countr,$ (&tel is geared to provide a +ide range of products and services to customers all over
Bangladesh.
=.3 'an$lalin2 :+rascom Telecom4.
=rascom Telecom Bangladesh$ an Ag,ptian multinational compan, +ith mar&et presence in
"" countries (and mar&et leader in 8 of them) launched their -6% net+or& on the "5th of /ebruar,
*55<. This compan, is the last addition to the -6% famil, of the local mar&et +hen on =ctober *5th$
*55#$ =rascom Telecom announced the purchase of 6heba Telecom +ith a cost of I6Q B5 million.
The compan,@s re3 branding has been under the name of Banglalin& +ith the leveraging promise to
provide the mar&et +ith Dualit, service at the most affordable prices fitting to their communications
needs.
It is also +orth mentioning that an unprecedented success of sales results follo+ed the commercial
launch of Banglalin& in earl, this ,ear. =rascom is currentl, serving around #55$555 subscribers.
*8
!ar2et share of the moile phone operators in
'an$ladesh
<G9
*89
G9
B9 "9
-rameenPhone
(&tel
Banglalin&
it,ell
Teletal&
=.4 TeleFtal2 :'TT'4.
6tate3run Bangladesh Telegraph and Telephone Board (BTTB) operates basic telecom
services$ national transmission net+or& and overseas communication. It has a monopol, over
interconnections and the international gate+a,$ in +hich all other telecommunications operators
depend on to connect to the fi;ed telephone lines and international calls. (ll phone operators are also
sub>ected to a monopolistic control b, BTTB that limits revenue sharing
"
arrangements. Cust t+o and
a half months bac&$ BTTB had launched their much3a+aited mobile phone$ Tele3tal& +hich has
generated h,pe among the potential subscribers. (s of no+$ Tele3tal& has a small customer base of
#5$555 +ith onl, TFT connectivit,. But the ma>or feature of this pac&age is absolutel, 7ree incoming
from BTTB +hich has strongl, s+a,ed the mar&et in favor of the ne+ pac&age.
"
4evenue S)ar%ng refers to sharing of revenue collected b, one compan, for a service co3produced b, t+o.
?5
<. Company and Industry life:cycle stage
(lthough revenues appear to be stead,$ PBTL is losing customers steadil, (declining mar&et share)
and$ thus is predicted that +ithin the ne;t fe+ months$ revenues +ill also start to decline. This has
happened in an industr, +hich ma, be relativel, lo+3gro+th currentl, but in +hich man, believe that
should prices of usage be decreased slightl, and the telecom sector further liberali:ed$ it could gro+
significantl, further.
Thus +e ma, state the compan, to be having ODuestion mar&@ or Oproblem child@ status +ithin the
B- matri;.
Figure 11: BC9 !atri:
If +e consider the situation in terms of the life c,cle scenario$ +e are forced to sa, that$ under current
conditions$ it,ell of PBTL is under the decline stage.
=n the other hand$ the industr, life3c,cle stage ma, be defined as a sha&e3out stage. The rate of
gro+th has slo+ed as demand has approached saturation level under current conditions. %uch of the
demand for sets and pac&ages are limited to replacement demand 1 both in terms of pac&ages and also
in terms of sets. This e;plains +h, PBTL is losing such a ma>or portion of its customers man, of
them are leaving for more versatile and cheaper pac&ages from other companies.
?"
1. The Telecom Mar2et Potential
Bangladesh has one of the lo+est tele3densit, in the +orld: lo+est tele3densit, means huge
potential to be tapped
/i;ed .ired lines less viable option$ +ireless to drive gro+th
Potential demand of cellular is estimated to be "593"#9 of population
Potential demand ranges from "#3*5 % ()ec *55#)
urrent subscriber number is appro; # %
Intapped mar&et is "53"B % subscribers no+
Ruic& F successful implementation of net+or& capacit, is the best strateg, for gro+th F
profitabilit,
-)%& re:u%re& - Sub&tant%al 0nve&t*ent; 0nnovat%on < 35per%ence
Figure 1#: Current state of the Teleco! Inustry in Banglaesh
?*
Pro#ected 0u*scri*ers 7ro4th ()4:)<)
"
),***,***
1*,***,***
1),***,***
2*,***,***
2),***,***
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120
140
160
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3.25
Figure 1$: Future irection of the Teleco! Inustry in Banglaesh
11. 0=/T &nalysis of CityCell
6.=T (nal,sis is a ver, important tool for a compan, for a compan, to anal,:e its internal e;ternal
environment. 0o+$ +e +ill see a 6.=T anal,sis of it,ell.
11.1 /tren$ths.
". Competiti&e tariff structure. Price is a big competitive advantage for it,ell.
it,ell is the onl, organi:ation +hich is selling )%( mobile phones +ith both +a, TFT
facilities at the lo+est rate. /or e;ample$ the lo+est pac&age rate of it,ell is T& #$888'S
+ith TFT incoming and outgoing facilities (O(laap all %e@$ pre-pa%#). .ith TFT facilities
the other competitors are no +here near it,ell. This pac&age has a fantastic and a ver,
innovative feature$ all*ash$ in +hich an, subscriber of this pac&age can Oearn@ or collect
5.*< ta&as per minute in his'her pre3paid account upon receiving a call from an, it,ell
mobile.
*. Bo @'usy Bet%or2A. Because of enormous number of channels$ e;cess to it,ell
mobile phones is ver, eas,. The rate of call drops is ver, lo+. It possesses high Dualit, voice
and data transmissions.
?. 7d&anced technolo$y. )%( technolog, is the best technolog, for
telecommunication. .orld class mobile operators and +orld class mobile phone
manufacturers are advancing to this ne+ technolog,. it,ell is one of the fe+ mobile
service providers +hich are using )%( technolog,. .here as other -6% mobile service
provider has to ma&e huge invest or +ill need time for transformation. urrent )%( "T
platform paves the +a, for easier migration to ?- technolog,
#. Lo% Cost. it,ell follo+s lo+ cost strategies that enables greater profit margin for
shareholders. It tries to cut cost in ever, possible +a, to ma;imi:e the strengths for future
battle.
<. 5edicated 1 professional mana$ement team. )edicated core staffs +ho are
+illing to provide significant labor hours to accomplish targets.
11.2 Wea2ness.
". 0e%er staff. The number of staffs +or&ing for it,ell is not enough at all. /ar
fe+er staff than actuall, reDuired in terms of tas&s to be completed.
??
*. Be% technolo$y. )%( is the latest technolog, but it is not +idel, used. ( still
more popular option is -6%. It is more difficult for it,ell to provide international roaming
because of fe+ number of )%( operators around the globe.
?. Lo% net%or2 co&era$e. Though it,ell started to provide mobile
telecommunication ten ,ears bac&$ it is still in behind the other operators from the point of
nation+ide coverage. -rameen phone +as able to use the optical fiber net+or& of Bangladesh
Hail+a, through strong lobb,ing +ith the past government for the ne;t t+ent, five ,ears.
That@s +h, -rameen Phone@s e;pansion has been huge$ +hereas it,ell has covered
roughl, <4 districts all over the countr, +ith a poor infrastructure.
#. Lac2 of education. The subscribers are not educated enough to handle sophisticated
)%( mobile handsets effectivel,. That@s +h, proper &no+ledge is essential to handle these
mobile sets.
11.3 +pportunities.
". 7d&anced technolo$y. 6ince )%( technolog, is the latest in the +ireless
telecommunication industr,$ it is ,et to find ne+ potential in the short future.
*. /ecured data transfer. 6ecured data transfer means it,ell has the potential to be the
leading pla,er once e3commerce ta&es off.
?. +&erseas e(pansion plan. The gro+ing need for across border telecom services at lesser cost
(e.g. +ith neighboring India$ Burma$ then onto Thailand$ etc) can be an opportunit, for
it,ell.
#. 7c9uisition of /in$tel. The acDuisition of #<9 eDuit, sta&e of it,ell brings more
opportunit, for it,ell. The compan, no+ has greater capital and more budget to invest on
its net+or& facilities. In fact$ of the Q""4 million investment of 6ingtel in PBTL$ Q85 million
+ould be spent in net+or& e;pansion plans
*
.
<. Leadership in telecommunication ser&ices. Bangladesh government has alread, started to
provide license to private sectors to set up land phone. PBTL is the onl, mobile phone
operator +ith nation+ide mobile F fi;ed license. .ith full nation+ide coverage and a huge
capital investment from 6ingtel$ it is possible to become the mar&et leader for it,ell.
11.4 Threats.
". Technolo$y factor. There is a high degree of acceptance of -6% technolog, over
)%( in local mar&et.
*. Le$al prolems. Tough legislation against eas, e;pansion into regional and
international mar&ets b,passing the state o+ned BTTB.
*
-)e Da%ly Star; June !; 200"
?#
?. Be%ly imposed ta(. In the fiscal budget proposed last +ee&$ the government has
imposed a T&. "*55 ta; on each and ever, 6I%'HII% card +hich +ould hurt the regional
e;pansion plans$ increase of customer base in the lo+er segment and the profit motive for
ever, operator including it,ell.
#. Be% competitors. If ne+$ international competitors li&e O(irtel@ of India enters the
local mar&et +ith full coverage and lo+ price$ then not onl, it,ell but also other mobile
operators +ould be in great trouble. (lread, =rascom (Banglalin&) is giving it,ell a run
for its mone, and mar&et share.
<. Gloal companies. In India global companies li&e O(TFT@ of the Inited 6tates and
in Aastern (sia OEodaphone@ of the Inited 2ingdom is +or&ing +ell. The, might thin& to
enter Bangladesh +ith higher capital. If so$ it +ill be a huge threat for it,ell.
B. 'TT' moile phone. BTTB has alread, entered the mobile telecommunications
industr, (-ele-tal,). It might carr, unfair -overnment advantages and cause severe problems
to all other mobile phone operators.
?<
1). &ssessment of CityCell>s current state and future direction
12.1 Current /tate of operations. it,ell pac&ages are focused to follo+ the compan,@s
differentiation strateg,. There area number of mar&et segments into +hich it,ell@s potential and
current customers can be divided. PBTL al+a,s strives to ma&e each it,ell pac&age released to be
uniDue and noticed above that of the competition. The, also tr, to attain distinctness in their sales and
mar&eting strateg, to ma&e them seem li&e a uniDue$ Oblue3blooded@ mobile phone compan,. In order
to do this$ the, have made a number of strategic choices +hich ma, set them as being different from
other companiesK the, also handicap them in a significant manner.
The primar, strategic choice that has affected them is such a manner is their choice of technolog,.
(lthough )%( technolog, is far in advance from other technologies$ it has ,et to gain a significant
acceptabilit, in Bangladesh. Thus +hat has happened is that there is a serious shortage of )%( sets
and$ as &noc&3on$ effect higher price of the sets that are available. .orse$ man, sets are simpl, l,ing
around due to lac& of spare3parts. ustomers have to pa, line rent for fault, or dead sets. %an,
customers are disconnecting their it,ell lines and bu,ing cheaper pac&ages from other companies.
The detrimental effect this has had on operations is that PBTL is finding increasingl, less room to
maneuver and introduce ne+ features in their service +hich +ill help them combat competition. This
also means that the, have to fight for survival rather than for dominance. Inherentl,$ PBTL@s
strategies appear to be more reactive than proactive.
( ver, important aspect of current operations is the severe effect that centrali:ation of organi:ation
has on operations. The regional offices are responsible for handling phones onl, in that :one. There is
a severe lac& of coordination bet+een the various regional offices +hich has a detrimental effect on
customer satisfaction. .orse$ the entries for each :one are done all on one floor in the head office at
the vast ma>orit, of customers bu,ing their sets directl, from PBTL$ it means that the, are also
dependent on PBTL for repairs and spare part needs. Thus the current staffs +ho +or& at repairs and
servicing are severel, over+or&ed. This affects morale and emplo,ee satisfaction$ reducing the
efficienc, of set3servicing process and thus has results in dissatisfied customers. In all PBTL is a
compan, +ith immense potential$ but it remains to be seen +hether management can full, harness
this potential. The potential is present in all the factors of operations:
") The technolog, is ver, advanced and has immense potential
*) The labor factor is strong +ith some ver, capable staff
?) PBTL has sufficient capital to underta&e infrastructure investments
#) There is still a significant portion of good+ill to+ards the compan, from its sta&eholders
?B
.hat PBTL needs to do no+ is to harness all these positive factors$ negate the detrimental ones and
move for+ard.
?G
12.2 0uture 5irection of the Company.
it,ell appears to be moving to+ards a more customer oriented approach to its overall
customer polic,. -one are the da,s +hen PBTL could dictate terms to its clients. These da,s PBTL
has to spend an increasing amount of time covering its shortfalls and persuading customers to sta,
+ith them. This is especiall, +orr,ing after +hat is perceived to be b, man, industr, insiders a
concerted effort b, -rameen Phone to ma&e head+a, into the corporate mar&et 1 a domain that +as
once almost e;clusivel, under PBTL. .hat PBTL is reall, loo&ing for is a +a, b, +hich it can
seriousl, bounce bac& into dominant position. The primar, reason for choosing )%( is that the,
hope to be able to implement the ne;t generation (?- or )%( ";) mobile phone features such as
voice conferencing$ Internet$ sending visual data$ etc into their services. It remains to be seen ho+
successful the, are in harnessing the full po+er of )%( technolog,.
There is also a proposal to decentrali:e their organi:ation in order to be able to better serve their
customers in the far reaching regions of the countr,. This means that man, ma>or functions +ill be
spread out throughout the countr, divided according to customer regions. It is ,et to be seen ho+
much decentrali:ation ma, occur$ but it is a ma>or issue under consideration. Then there is the sale of
data lin& to corporate clients. This +ill gather significant revenue for the compan, as +ell as solidif,
its position +ith its corporate clients as their primar, information transfer and telecom provider. The
incongruities bet+een the various tariff plans of the various pac&ages are to be removed both to ma&e
it much easier for customers to budget usage and also to increase the value for mone, of each
pac&age.
12.2.1 Gpcomin$ features of CityCell.
IT2 (Iser Tool 2it)
International Hoaming' 6%6
%%6 (%ultimedia %essage 6ervice)
%HBT (%ultimedia olor Hing Bac& Tone)
Infotainment
Internet (ccessU"## &bps
PTT (Push to Tal&)
Alectronic Top Ip
?4
12.2.2 7c9uisition of /in$Tel. 6ingapore Telecommunications Limited (6ingTel) recentl,
announced that it has invested I6Q""4 million for a #< per cent eDuit, sta&e in Pacific Bangladesh
Telecom Limited (PBTL). In addition$ 6ingTel has a call option to increase its eDuit, interest in
PBTL to B5 per cent for an additional I6QB< million. The option can be e;ercised bet+een " (pril
and ?5 Cune *55G.
The recent investment made b, 6ingTel has created a lot of options for the compan,. Aver,one is
e;pecting that net+or& e;pansion and technolog, up gradation +ill occur at a fast pace. This is
especiall, important if +e consider the fact that slo+l, boundaries are opening and technologies are
improving. -6% +ill give +a, to more advanced technologies li&e )%( and there +ill soon be no
national boundaries as defined in the telecom industr,. If that happens and the telecom sector is
further liberali:ed$ then PBTL can loo& for+ard to increased gro+th and revenue.
Figure 1,: &ingTel: 9roup &tructure
Temasek
62.71%
Public
37.29%
SingTel
Mobile
SingNet SingTel !tus
"#us$
National
%om!ute& S's
#ssociates
Singa!o&e
(e&seas
#PT Satellite) *ong +ong 20.3%
#,S) T-ailan. 21./%
0-a&ti) ,n.ia 28./%
N%,%) Tai1an 24./%
2lobe) P-ili!!ines 40.1%
Telkomsel) ,n.onesia 3/.0%
SingPost
,n(estment
in P0T3 4/4
60%
?8
/hareholder
Present Phase 1 Phase 2
H H H
Pacific %otors #5 ?" ?"
/ATL ?5 *# 8
(I)A *5 3 3
/u>itsu Ltd "5 3 3
&ingTel 5 %) *6
Total 1?? 1?? 1??
Figure 1.: &hare/oling of PBTL: Present 2 Future
12.2.3 /tren$ths 1 +pportunities from /in$Tel.
". ADuit, in>ection of Q85% (in phase ") +ill give necessar, thrust in aggressive
e;pansion strateg, of PBTL.
*. ( multinational corporate li&e 6ingTel as a ma>or sta&eholder +ill give enhanced
access to funding.
?. 6ingTel$ as an international pla,er$ +ill provide incremental leverage over vendors
(handsets$ eDuipment).
#. 6ingTel brings in "*5 ,ears of e;pertise 1 innovation$ Dualit,$ efficienc,$ and
corporate governance.
<. PBTL +ith 6ingTel is better poised to capture the mar&et potential F become the
mar&et leader.
B. Benefit from seamless coverage across 6ingTel net+or& in (sia and international
access across the +orld for international roaming through its submarine F satellite net+or&.
#5
1%. Presenting the 0ur(ey ?esults
13.1 7out the 6espondents
cvo_n _@c o: vmon ccmo_
*#
?59
<
B9
"*
"<9
?8
#89
5
59
6tudent
House+ife
Business
6ervice' Cob
=thers
7$e $roup of 6espondents
6eries" 4 "* "8 "" "? "5 G
"B3*5 *"3*< *B3?5 ?"3?< ?B3#5 #"3#< #<M
This bar chart represents more3or3less a normal distribution curve. 0earl, G59 of the sample is
bet+een *"3#5 ,ears of age. Hespondents are largel, in service (as represented in the pie chart) or
students. This means a good ?59 of the sample fall into the ,outh segment.
#"
?89
B"9
Pre3paid subscriber
Post3paid subscriber
*?9
GG9
%ale /emale
13.2 6e$ardin$ CityCell suscriers
@ =hich is your first mo*ile phone A it,ell #G
-rameen *<
(&tel B
6heba *

<49
?"9
49
?9
it,ell
-rameen
(&tel
6heba
Hesults sho+ that #*9 of the respondents have s+itched from other operators to it,ell in the past 4
,ears or so. This Duestion has tried to find out the level of dissatisfaction among the users of mobile
phone in the mar&et at present. (bout a half of the respondents have found other operators as not upto
Ostandard@ or upto e;pectation. The ne;t fe+ Duestions aims at finding out about their (#*9 of the
respondents@) s+itching pattern and +h, the,@ve chosen it,ell or +h, the other <49 are still using
it,ell.
#*
@ 8o4 long ha(e you *een using A a. ( mobile
b. it,ell

&ns a. " m 1 " ,r "*
b. " m 1 " ,r *?
a. " 1 ? ,rs *"
b. " 1 ? ,rs ?"
a. ? 1 < ,rs "B
b. ? 1 < ,rs "4
a. < 1 4 ,rs *?
b. < 1 4 ,rs 4
a. %ore than 4 ,rs 4
b. %ore than 4 ,rs 5
5
<
"5
"<
*5
*<
?5
?<
" m 1 " ,r
" m 1 " ,r
" 1 ? ,rs
" 1 ? ,rs
? 1 < ,rs
? 1 < ,rs
< 1 4 ,rs
< 1 4 ,rs
%ore than 4 ,rs
%ore than 4 ,rs

This graph reveals an interesting picture. The light3colored bars represent number of mobile3users
+hile the corresponding dar&3colored bars represent number of it,ell users. There are fe+er
mobile users from " month to < ,ears$ +hile more are using the mobile (other operators) for more than
< ,ears. =n the contrar,$ more people are it,ell users from " month to < ,ears +hile less people
have been +ith it,ell for more than < ,ears. Interestingl,$ there are no it,ell subscribers using
this operator for more than 4 ,earsN V-rammen Phone has been in the mar&et for a little more than 4 ,ears$
+hile oddl, enough it,ell has been operating for "* ,earsN 6o$ even though a sample$ +here are the long3
time usersW X.
This trend ma, represent that it,ell users for more than B3G ,ears have started to s+itch to other
operators and'or that brand lo,alt, is lo+ among users of this operator. Its about time that it,ell
should be loo&ing into its customer retention plans and lo,alt, programs in an effective manner.
#?
@ =hy do you li2e5still use CityCellB /?- 4hy ha(e you s4itched to this operatorB
6easons for s%itchin$ toD still usin$
CityCell
"9
#9
??9
<9
G9
<9
<9
"9
#9
*49
G9
Better net+or&
6mart handsets
Lo+er call rates
-ood customer care
6uperior technolog, ()%()
(ttractive advertisements
-ood communication from the
operator
Iseful Ealue (dded 6ervices (E(6)
-ood connectivit, to other mobiles
-ood connectivit, to BTTB
I >ust li&e it,ell ' Lo,al to
it,ell' 0o e;act reason
This Duestion has been put for+ard to the #*9 of respondents +ho have s+itched to it,ell in the
past 4 ,ears or so and to that <49 of the sample +ho are still using it,ell. It is to be noted$ out of
this <49$ about ?49 are it,ell users from " month to ? ,ears
?
onl,. 6o$ basicall, this pie3chart
represents a good opinion of the #*9 s+itchers and of *59 of the it,ell Olo,alists@$ +ho have been
using the brand for more than < ,ears.
The sample has clearl, mentioned as lo+er call rates being the most important reason (??9) of
s+itching to Vand also still usingX it,ell. (ccording to the data and trend$ these s+itchings have
ta&en place predominantl, bet+een the last ? ,ears or so. (t that time$ it,ell rates +ere the
cheapest in the mar&et$ as suggested b, the press advertisements. (s of the present$ the scenario
+ould be revealed and discussed later on.
The second most important reason (*49) has been VgoodX connectivit, to BTTB. (gain$ ,ears bac&$
it,ell has been the pioneer operator to offer both3+a, BTTB connectivit,. This factor is still
considered as a ma>or feature of it,ell mobiles.
(ll the other reasons of this Duestion go unheeded as belo+ G9 of the sample have responded to
them.
?
Information anal,:ed from the previous table.
##
Co
3<!
Des
41!
This is Duite alarming for an, operator +hose sample subscribers reveal that the, are using another
connection besides it,ell. .h, is thatW In +hich +a, is it,ell not being able to provide it all for
its valued customersW .hat is it that other operators are providing more for +hich it,ell@s profits
are being divided upW The follo+ing Duestion ma, give an idea 1
@ If yes- 4hich connection do you use and 4hyB ?easons
-rameen "8 0et+or& "B
(&tel G 0et+or& B
6heba'Banglalin& < /ree 6%6 <
Tele3tal& * TFT i'c free *
(mong the ?? of the 45 respondents +ho sa, the, use another connection$ "8 use -P for the single
most important reason being strong'available net+or&. The same features for (&tel$ the second largest
mobile operator no+ in the countr,. In other +ords$ BG9 of the respondents +ho use another
connection besides it,ell do so because of the net+or&.
@
'o you use any other
connection *esides CityCellB
0o #G
Yes ??
#<
(lthough findings later on +ill sho+ that it,ell has satisfied its customers +ith access to BTTB
and arguabl, the lo+est billing rate$ the previous findings has demonstrated that it has not been
performing +ell to retain its subscribers in terms of providing a strong net+or& solution.
#B
13.3 Customer 6etention /cheme. Loyalty Pro$ram
6atin$s :on a scale of 1?4 y respondents re$ardin$ &arious enefits
intended to e offered to loyal suscriers
4.*
4.5G<
G.8
G.BG<
G.<<
B.G<
B.B*<
5
"
*
?
#
<
B
G
4
8
)iscount call rates
A;clusive customer care
)iscount line rent
Alite privilege' membership card
6pecial discounts to be en>o,ed from
various stores' shops' eating places
6pecial events organi:ed for ,ou
( number of free 6%6
These are some of the benefits that ma, be offered to lo,al'high3end users of it,ell. This is a
feedbac& from the respondents +ho opine that discount call rate'line rent and e;clusive customer care
are three of the most elusive benefits that can be en>o,ed. The privilege service to be introduced to the
lo,al'high3end users under the customer retention scheme$ includes 1 e;clusive customer care$ an elite
privilege card and special discounts to be en>o,ed from various stores'shops'eating places$ etc. (ll
these benefits have received good appreciation from the respondents scoring above average for ever,
case.
@
'o you plan to stay 4ith CityCell in the neEt 6 months to 1 year despite the presence
of other operatorsB
Ies
44
55H
BoD 3 mi$ht
not stay
%ith
CityCell
3;
45H
#G
(nother alarming data +hich sa,s #<9 of the it,ell subscribers ma, not continue +ith the operator
and has a good possibilit, of s+itching. (gain$ this calls for rigorous customer retention plans.
?easons
Ies 44 Image'Lo,alt, "8
Lo+er call rates "#
BTTB connectivit, or i'c facilities G
Hassle to change #
BoD3 mi$ht not
stay %ith CityCell
3; 0et+or& *#
Handset fle;ibilit, 8
(ttractive pac&age'benefits B
( good point in this ma, be that about #<9 of the respondents +ho sa, that the, are going to sta,
+ith it,ell (<49) for the ne;t " ,ear or so$ state the reason of image'being lo,al +ith the operator.
it,ell can certainl, cash in on this customer behavior to+ards the operator and tr, its best to retain
the other #<9. =nce again the issue of net+or& boils in as a good B<9 of this #<9 complains of this
as the primar, reason of not sta,ing on +ith it,ell.
@
3f BoDmi$ht not stay# %ould the mentioned enefits ma2e you thin2 not to s%itch to other
operatorsJ
Yes *"
0o "?
%a,be *
This Duestion is in vie+ of the benefits discussed one Duestion earlier. In a surprise reaction$ B59 of
the respondents decided to change their minds to s+itch in the ne;t " ,ear or so if the mentioned
benefits +ere to ta&e effect. In realit,$ these benefits +ould not be for the general subscribers but for
those +ho are it,ell@s long3term or high3end customers. But this response ma, suggest that the
same ma, be applicable for those target subscribers. But #*9 replied the, +ould still s+itch to other
operators. The ne;t Duestion is targeted to+ards these "< respondents.
@ If Co5may*e- 4hat 4ould ma2e you refrain from s4itching to other operatorsB
0et+or& "5
onnectivit, to mobile *
A;tent of discounts in outlets
"
0othing +ouldJ
*
J No co**ent&==
459 of these "< respondents cite the problems of net+or&'connectivit, as the factor of s+itching.
#4
13.4 Customer 6etention /cheme. 5iscount ser&ices for suscriers
Types of outlets as e(pected y the suscriers to en,oy discounts on Billiard' pool centres
,ber afZ
Beaut,parlors (both genders)
6+eetmeat shops
/urniture house
-ift' flo+er shop
Boo&stores
lothes 6tore' /ashion House
/ast food shops
%usicF %ovie stores
Hestaurants
Hospitals
6hopping malls
5 < "5 "< *5 *< ?5 ?< #5
Type 1 numer of outlets rou$ht under discount for suscriers Hospitals
6+eetmeat 6hops
,ber afZ
Boo&stores
%usicF %ovie 6tores
/urniture House
Billiard F Pool entres
Beaut,Parlours
6hopping %alls
-ift' /lo+er 6hops
lothes' /ashion House
/ast /ood 6hops
Hestaurants
If one follo+s each of the colors carefull,$ one +ould notice Duite some disparities among the
e;pected and actual figures. /or instance$ shopping mall is the highest e;pected t,pe of outlet to be
en>o,ed discount from$ +hereas$ there has been onl, # of them covered under the discount scheme
+hich is placed at no. < in the second table. The same goes for music F movie store (light blue)$ and
gift'flo+er shops (dar& bro+n) and hospitals (placed at no. * in the first table$ but la&t in the second
tableN). Hestaurants F fast food shops have +ell been ta&en care of.
#8
13.5 Concernin$ CityCell
@m _o@oc on _ m@: _ oc m n o: m cvo_n _@c
"5
<9
"<
49
#G
*#9
"G
89
"?
G9
4
#9
4
#9
"B
49
<8
?"9
Better net+or&
6mart handsets
Lo+er call rates
-ood ustomer care
(ttractive advertisements
-ood communication from
the operator
Iseful Ealue (dded 6ervices
(E(6)
-ood connectivit, to other
mobiles
-ood connectivit, to T0T

om_ cc c on _ m@: _ oc m n o: m cvo_n _@c
<4
*B9
#G
*59
**
89
*<
""9
"
59
"4
49
"*
<9
#<
"89
#
*9
.orse net+or&
0ot standard handsets
Higher call rates
0ot Dualit, ustomer care
Inattractive advertisements
Poor communication from
the operator
0ot useful' enough Ealue
(dded 6ervices (E(6)
Bad connectivit, to other
mobiles
Bad connectivit, to T0T
Hespondents have cited good connectivit, to BTTB (?"9) and lo+er call rates (*#9) as t+o of the
ma>or strengths of the compan,. =n the other hand$ +orse net+or& (*B9)$ not standard handsets
(*59) and bad connectivit, to other mobiles ("89$ +hich is again a representation of a +ea& net+or&
infrastructure)$ have been suggested as the three ma>or +ea&nesses of it,ell. There is a mi;ed
opinion regarding ustomer care as 89 thin& of it as strength$ +hile ""9 terms it as a +ea&ness for
the compan,. 6ame goes for Ealue (dded 6ervices (E(6). ( good ** persons of 45 respondents have
complained higher call rates as a +ea&ness factor. This is a point to be concerned$ as all along$ call
rates have been a strong case for the compan,.
<5
B.8<
B.G
<.8 <.4*<
<.<
<.*< <.*< <."
<.5<
5
"
*
?
#
<
B
G
6atin$s :on a scale of 1?4 y respondents re$ardin$ the
present situation of &arious factors of CityCell
onnectivit, to BTTB
all rates
ustomer care
Ealue (dded 6ervices (E(6)
-ood communication from the
operator
Initiatives for the valued
clients' customers
onnectivit, to other mobiles
Handsets
0et+or&

This is another +a, of loo&ing at the strengths'+ea&nesses of it,ell. Hespondents here have been
as&ed to rate the various factors of the compan,. <.4* is the average score for these factors. E(6 falls
>u&t above this score$ meaning respondents do not thin& there are enough'useful value added services
in store for them. Ruite far belo+ this score is the factor$ OInitiatives ta&en b, the operator for the
valued subscribers@.
2eeping e;actl, this in mind$ the ustomer are F E(6 department of it,ell has planned to
launch a privilege service for a certain portion of its valued customers for the ustomer Hetention
Plan of it,ell.
<"
14. The Customer ?etention 0cheme for CityCell 0u*scri*ers
14.1 Prologue
it,ell has planned to introduce Trump ard! 1 a Privilege 6ervice for its valued customers. This
service +ould allo+ it,ell subscribers to avail different products and services at a reasonable
discounted price from various reno+ned outlets Vshops$ restaurants$ department stores$ and other &ind
of service providersX all around the ma>or cities of Bangladesh. The discount card service has been
divided into four3tiers$ depending on the monthl, usage histor, of its valued customers.
D Platinum ard
D -old ard
D Yo7 ard
D Eirtual )iscount ard (6%6 oupon)
14.) /*#ecti(es of the Pri(ilege 0er(ice
The Privilege 6ervice is aimed to have a profound effect on the compan, and its subscribers. The
main ob>ectives of this service are 1
To retain customers and create lo,alt,
To create high3end users among e;isting subscribers
To give recognition to high revenue3generating F lo,al users of it,ell
To increase revenue F (HPI
#
through possible increased bills and 6%6 activities
To provide an e;tra value to it,ell@s premium users built on the Because .e are! theme.
14.% Target &udience
Bet+een post3paid and pre3paid pac&ages it,ell has segregated its customers into t+o ma>or
categories according to their t%*e per%o# and b%ll%ng &tatu&:
Long3term ustomer
High3end ustomer
Lon$Fterm Customer. These are lo,al post3paid subscribers +ho have been active +ith it,ell for
a period of < ,ears and above.
#
(HPI VAverage 4evenue per un%tX
<*
[ (ctive 6ince "88? S ?5* subscribers
[ (ctive 6ince "88# S *#" subscribers
[ (ctive 6ince "88< S ?88 subscribers
[ (ctive 6ince "88B S G5B subscribers
[ (ctive 6ince "88G S "$8B? subscribers
[ (ctive 6ince "884 S "$5?< subscribers
[ (ctive 6ince "888 S *$#<# subscribers
6ubscribers +ho have never been deactivated since "88< or before that$ have completed a
decade or more ("53"* ,ears) +ith it,ell. In vie+ +ith this$ these customers +ould be
en>o,ing the Platinum privilege. This card is entitled to get the highest amount of discount
among the tier. V(ppro;. 8<5 subscribers entitled according to dataX
(ctive subscribers +ith it,ell since "88B388$ shall be en>o,ing the -old privilege. Ipon
completion of their "5
th
,ear$ subscribers in ever, tier shall be re+arded +ith -old ard. /or
e;ample$ active subscribers since "88G shall be completing their "5
th
,ear +ith it,ell on
*55G. V(ppro; . B$*55 subscribers to be entitled from *55B upto *558X
Hi$hFend Customer.
Post3paid subscribers pa,ing a monthl, bill of over <$555 Ta&a +ould be en>o,ing the Platinum
privilege.
Post3paid subscribers pa,ing a monthl, bill bet+een *$<55 and <$555 Ta&a +ould be en>o,ing
-old privilege.
Post3paid'pre3paid subscribers +ho are among the ,outh segment of the population +ould be
provided +ith the Yo card$ coming free +ith a ne+ pac&age called O(alap all %e@. VThis
pac&age is a full BTTB connectivit, pac&age +ith the uniDue and innovative
Oall*ash@ feature$ +here subscribers +ill get T&. 5.*< added to their account ever,
minute +hen the, receive calls from other it,ell phonesX
Post3paid'pre3paid subscribers pa,ing a monthl, bill of less than *$<55 and not among the
,outh segment$ can avail the pioneering 6%6 )iscount oupon service. The Eirtual )iscount
ard is a completel, ne+ discount idea through SMS D%&count /oupon!. This Ovirtual@ discount
coupon can be availed b, the subscriber upon t,ping the name of the shop'restaurant'hospital and
sending the 6%6 to a designated number of it,ell. Ipon receiving this$ an 6%6 oupon +ill be
sent to the sender (both Post3paid and Pre3paid subscribers) through 6%6 +ith a te;t containing the
validit, period of the coupon. The Ooupon@ ma, have the follo+ing message to the sender and the
participating outlet:
?2elco*e to @ Ana*e o7 ouletB; you can en>oy @C #%&count9 -)%& %& val%# 7or to#ay A@#ateB only9 -)an, you9D
<?
14.4 Competition
There are similar privilege discount cards li&e$ )>uice Ttra 2hatir ard b, -rameen Phone and
another discount card b, (&tel (0ot ,et launched).
14.3 IMC (Integrated Mar2eting Communications) /ptions
The main role of the Trump card advertising +ould be to give the customer a feeling of being
e;clusive. Earious promotional activities +ould be underta&en a fe+ da,s'+ee&s from the date of
launch (date of launching ,et to be decided).
Personali:ed letters mailed to the targeted subscribers along +ith the Trump ard.
0e+spaper advertisements in ma>or dailies +ould be a medium to a+are the possibilities of the
Trump ard as +ell as to promote the partners.
( boo&let3st,led or a ?'#3fold brochure +ould also be distributed to the target mar&et.
Earious Branding'Promotional materials +ould be placed in different outlets for ma;imum
visibilit, and clarification to subscribers3cum3shoppers.
14.6 Branding5Promotional Materials
ards
/l,ers
6tands
Posters
6tic&ers
)anglers
Brochures
atalogues
)ispla, Items
14.9 'esign Theme
The Platinum card +ill get the highest amount of discount from the merchants. The card +ould reflect the
idea of being the most e;clusive and precious.
The -old card +ill get slightl, less discount than the platinum card$ but it should not give the customer
the impression of being less important.
The Yo card +ould have a fun&, loo& +ith lot of colors to appeal to the ,outh generation.
<#
14.; Benefits
14.;.1 Benefit to Customer5Cardholder+
/eeling of being honored and privileged
)iscounts from various outlets: reduced e;penses in purchasing goods and services
Participation in different activities'events organi:ed b, it,ell
A;clusive service at it,ell /ront )es& F ustomer are (/or Platinum F -old ard3holders onl,)
14.;.) Benefit to outlets5(alued *usiness partners+
6uch introduction of discount cards +ould have a direct positive impact on the sales of it,ell@s participating
product and service partners. The decision of the amount of discount provided rests solel, on the outlets. The
attractive discount offers are sure to increase visit freDuenc, of the subscribers to the participant@s outlets. (n
obvious point to mention is that it,ell has a rich portfolio of #$<5$555 eligible subscribers to be registered
for these privilege card'coupon services. This is also an opportunit, to enhance the participant@s business
revenue b, ensuring a higher sales volume through participating in the Privilege ard 6ervices of it,ell.
)irect Promotion
Increased ustomer /lo+
Higher 6ales Eolume
(ffiliation effect +ith a larger and a more +idel,3branded organi:ation
&cti(ities from CityCell>s end for the outlets+
Press campaign
Press advertisements in leading national dailies
6eparate promotional brochure to be delivered to all the it,ell subscribers
6uppl, of Branding'Promotional materials to the participant@s outlet(s)
)ispla, of outlets@ logo in the 6%6 coupon
14.;.% Benefit to CityCell
Hetention of customers
Lo+er Oustomer )iscontinuation Hate@
Increased lo,alt, among e;isting customers
Improved customer relationship F corporate image
Increased Brand3visibilit, through P=6 materials at outlets
<<
High self e;posure through it,ell@s high3end F lo,al users
Increased revenue through possible increased bills and 6%6 activities
?elation of Trump Card 4ith Customer ?etention F Loyalty+
A;isting customers +ould prefer to continue their subscription for the added benefits
)iscontinued customers can be pushed to restore their subscription
ustomer Hetention Team can use the ard as an added tool
ardholders +ill be able to participate in various programs'events using their cards
Increased re(enue 4ith Trump Card+
ardholders +ill tr, to &eep up their usage to maintain eligibilit,
6ubscribers +ho lac& eligibilit, for a nominal amount (*%n%*u* -a,a 2;"00 per *ont)) +ill tr, to
increase usage to achieve eligibilit, of holding a card$ resulting an increase in revenue
Ne+ subscribers +ill be tempted to achieve eligibilit, of holding a card$ resulting another increase in
revenue
0on3card holders shall be availing the Eirtual )iscount oupon through 6%6 usage thus increasing
revenue collection through E(6 (Ealue (dded 6ervice)
Issues 4ith 0trategic Partners+
omplementar, Trump ards can be distributed to strengthen relationship +ith &e, strategic partners of
it,ell.
Benefit to employees of CityCell+
Amplo,ees of it,ell shall be provided +ith a Trump ard (Platinum or -old$ depends on management
hierarch,)$ through +hich the, +ould be able to en>o, similar benefits as the high3end subscribers. This +ould
also add to their >ob satisfaction and motivation.
14.< $Etent of Co(erage of Trump Card Business Partners
'ha2a.
Hestaurant ?8
/ast /ood 6hop *#
lothes'/ashion House "<
Hotels F Hest House ""
-ift'/lo+er 6hop <
6hopping %all #
6aree F -old House #
Beaut, are entre #
Billiard F Pool entre ?
6ports 6tore *
/urniture House *
Boo& 6tores F %usic *
)igital 6ecurit, "
Aducation VoachingX "
%anufacturing "
)r, leaner "
<B
Ba&er, "
,ber afZ "
6+eetmeat 6hop "
Hospital F linic "
Total "*?
<G
Chittagong+
Hestaurant "<
Hotel G
/ashion F %usic ?
/urniture House *
/itness F 6+imming *
,ber afZ "
)iagnostic enter "
6uper 6hop "
Total ?*
0ylhet+
Hotel$ Hestaurant F /ast /ood G
)ress$ Handicraft F 6aree G
6port ?
Alectronics$ ,ber afZ F omputer *
)epartmental F 6uper 6tore *
Ce+elr, F -ift 6hop *
Travel (genc, "
=thers "
Total *<
Ghulna+
Hotel$ Hestaurant F /ast /ood G
/ashion ?
6hopping %all "
Total ""
?a#shahi+
Hotel$ Hestaurant F /ast /ood #
Hospital F linic "
6hopping %all "
Beaut, are "
Total G
7rand Total 1<;
<4
$8E ignup with $erchants
$erchant List with respective discount rates
will be given to the !genc&. !genc& will
develop all -ommunication and #eliverable
$aterials as per !pproval o' 1! Team.
5ew $erchants -ollection -ontinues. List will
be updated (uarterl&.
!genc& will provide
#eliverable :tems to the
1! Team to deliver to
the $erchants.
%BTL Bill %rinting Team will
deliver the Trump -ards to
the ubscribers.
$arketing
#epartment will
launch Trump -ard
with proper
-ommunication
through applicable
media.
-ustomers will use the -ard till
the 1alidit& %eriod. !'terwards,
the& will be delivered with a new
card as per the process.
! 1alid -ard ensures discount
during bill pa&ment. $erchant
saves a log o' card usage.
$erchant sends the log to %BTL.
This log will be used to introduce and
calculate Esage %oints and 6ewards
(similar to 6ed 6ewards)
-it&-ell -all -enter will receive an&
complain on 5on"Fntertainment o'
Trump -ard b& $erchant.
Figure 1%: 0lo% Chart of acti&ities for the Platinum 1 Gold
Card for the hi$hFend suscriers of CityCell
<8
end Go< card through #$ package to
veri'ied registrants.
%rovide complimentar& cards to outlet
owners that are promotional partners
#istribute cards at events
1eri'ication o' registrants through e"mail and outbound team.
Go< card can be used b& users o' other mobile operator services.
Track usage through Log Book. !ward points to Best -ard
Eser (to be limited to -it&-ell users onl&).
$erchants to check 'or validit& o' card when card is shown
b& customer to avail discount.
%romote to customers through press
ads and venue signage
Figure 1): 0lo% Chart of acti&ities for the Io Card for the
youth se$ment of the suscriers of CityCell
B5
5ew merchant collection continues. List will be
updated (uarterl&
-it&-ell -all -enter will receive an& complain on
5on"Fntertainment o' Trump -ard b& $erchant.
!'ter purchasing, customer will show the
1alid 1irtual #iscount -ard ($ -oupon)
while pa&ment.
1! Team will
deliver
promotional
items to the
participating
merchants
$erchants will
maintain a sheet
o' the users to be
provided b&
-it&-ell to
declare the Best
#iscount -ard
user.
$arketing dept will o''iciall& launch the
service b& giving newspaper ads and
other customer communications.
1! (7$) team also checks 7
approves the items to ensure
compliance with participants<.
.re(uirements.
.&0 Team signs agreement with interested companies
1! (Fngg.) team develops the
Te/t and He&words o' the $
with speci'ic validit& period
6e(uired materialsAitems 7 other
promotional items will be developed b&
the !genc& and checked b& the 1!
(7$) Team
!genc& will communicate the
1irtual #iscount -ard ($
-oupon) service to the -it&-ell
ubscribers.
-ustomers will send $ %ush to get the 1irtual
#iscount -ard ($ -oupon) :n repl&, heAshe will
receive an $ with the #iscount 6ate and 1alidit&
period.
B"
14.1 0=/T &nalysis of the Pri(ilege 0er(ices of CityCell
/tren$ths
Previousl, launched in Cul, *55* so the brand name is +ell3established
=nl, lo,alt, card in the industr, that covers all classes of customers
Launching +ith "84 6igned %erchants
o E( )a& launc)e# F-4A /ar# +%t) 1" *erc)ant& only
%erchants in < ma>or cities
# Tier )iscount ards
A;clusive ards for Post3paid 6ubscribers
ontinuous Affort to increase %erchants
Wea2nesses
Less than ?<$555 (lo+est subscriber base) eligible Post3paid Privilege card holders in launching phase
0o full3time dedicated emplo,ee to maintain and run the program
+pportunities.
Introduction of Points! 6,stem on card usage
Introduction of Branding (ctivit, through the signed %erchants'participants
=ther merchants ma, and +ill be interested in carr,ing the card once the, see ho+ it attracts traffic
0ation+ide coverage (future)
Threats
Introduction of ompetitor@s Privilege ard
o E( alrea#y launc)e# F-4A /ar# t)roug) G#>u%ceH; *ay go 7or %ncrea&%ng *erc)ant& an# *erc)ant
loyalty by o77er%ng e5tra-pr%v%lege& to t)e*9
o AI-3J %& act%vely +or,%ng on launc)%ng (r%v%lege /ar#& +)%c) +oul# be launc)e# any t%*e &oon9
%erchants@ non3cooperation in entertaining the discount cards can result in a bad impact on the brand and
organi:ation
Figure 1*: 0lo% Chart of acti&ities for the *irtual
5iscount Card :/!/ Coupon4 for the suscriers
B*
13. ?ecommendations
I have designed m, recommendations concerning the Oustomer Hetention 6cheme@$ aiming to help improve
it,ell in retaining its customers. I have also tried to present recommendations about current +ea&nesses of
the compan, and about various factors of dissatisfaction among the e;isting subscribers. %, recommendations
are:
The Privilege 6ervices of the ustomer Hetention 6cheme of it,ell should be launched as soon as
possible as Od>uice@ of -rameen Phone has alread, started to saturate a certain segment of the mar&et
through its OT3tra 2hatir ard@. (s first3movers advantage$ -P has alread, secured a confident berth ahead
of it,ell.
The t,pes and numbers of discount outlets brought under the )iscount 6ervice scheme should seriousl, be
reconsidered and restructured follo+ing a more e;tensive surve,. %, research clearl, sho+s a gap bet+een
customers@ e;pectations and outlets alread, brought under the discount service.
There are a fe+ benefits mentioned in the Duestionnaire$ such as discount call rates$ discount line rents$ etc.
+hich have received Duite an applause from the respondents. ( fe+ more creative and +orth, benefits
Vappreciated b, the lo,al subscribers and cost3effective for it,ellX can be brought into the pipeline and
introduced as benefits for the lo,al customer faction.
Privilege 6ervices for the subscribers is not the onl, means b, +hich it,ell can afford to retain its lo,al
customers. Immediate and effective solutions should be ta&en in terms of its +ea& areas as pointed out b,
the respondents.
it,ell needs Duic& e;pansion in net+or& development all over Bangladesh if it +ants to &eep its
customers to sta, +ith it. If there is an, other provider +ith same options +ith countr, +ide net+or& (an#
t)ere %&=)$ it +ill be a disaster for it,ell. (lread, customers have been s+itching to other operators as
their second option as a result of their poor net+or& infrastructure.
(lthough it,ell has Olo+er call rates@ associated +ith its brand name$ other operators have alread, come
up +ith various attractive pac&ages and options such as$ %, Time$ %, hoice$ V-rameenPhoneX$ "5
B?
second pulse and BTTB incoming free for the "
st
minute for all pre3paid subscribers V(&telX$ double tal&3
time for a single prepaid card VBanglalin&X. 6o there should be more initiatives and stri&ing benefits for
their subscribers a la its lo,al F high3end users.
The Ealue (dded 6ervice (E(6) department should be coming up +ith more ideas to entertain its
customers. This department has its potential but should be using it to the fullest to provide even more
useful services to cater to customers@ needs and +ants.
ustomer are has turned out to be one of the most focused points in the telecom industr,. 6urve, results
sho+ subscribers e;pect a lot out of it and +ould appreciate special care facilities. Therefore the Oall
enter@ should be open to all &inds of Dueries of the customers. The number of helpline officers should be
appropriate in order to reduce the Dueue +here the customers +ould be +aiting on line. it,ell can
initiate a number training programs or ps,chological courses to train the officers and e;ecutives of the
O/ront office@ and O)irect 6ales@.
(vailabilit, of Dualit, handsets is a ma>or and gro+ing concern among it,ell subscribers. ma, go for
strategic alliance +ith %obile phone manufacturer li&e L- Alectronics$ %otorola$ 0o&ia$ 6amsung$
(udiovo; orporation or H,undai or other )%( phone manufacturer to have technical support and for
availabilit, of various )%( sets.
B#
V
16. Conclusion
I +ould li&e to start the conclusion part b, restating the h,pothesis of m, stud,. %, h,pothesis +as (lthough
PBTL brought Oit,ell@ as the first mobile telecommunication service in the subcontinent but its customers
are not full, satisfied +ith the service. If PBTL does not ta&e care of these dissatisfactions and another
compan, enters the mar&et +ith similar offers$ it +ill be difficult for PBTL to retain its subscribers$ thus
maintain its position and increase its mar&et share!.
/rom the anal,sis of the surve, results$ it is clear that it,ell@s subscribers are dissatisfied about different
services of the compan,. %oreover$ the anal,sis indicated that the subscribers are not Duite lo,al to the
compan,. 6ome of the respondents have clearl, pointed that if it,ell does not +or& on its +ea&nesses$ the,
+ill not hesitate to s+itch. 6o$ m, h,pothesis proves to be a valid one. I firml, believe that if it,ell follo+s
m, recommendations$ it +ill be able to achieve a sustainable distinctive competitive advantage and to run
smoothl, +ith lo,al subscribers F mar&et leadership.
B<

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