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1.

Introduction:
1.1.

Origin of Report:

Internship Program of North South University (NSU) is a graduation requirement for the
BBA students. This report is a partial requirement of the Internship program. Assigned by the
institutional supervisor, this report is prepared for internship and people & organization
department of Grameenphone Limited, based on the project assigned by Fund Management
and Collections department, Finance Division of Grameenphone Ltd.

1.2.

Background:

Grameenphone limited is now the foremost telecommunications service provider in


Bangladesh with 23 million subscribers as of December 2009. In the recent business world,
especially in telecommunication sector, long-term customer retention, i.e., attaining
sustainable market share is a crucial issue. This internship project is about analyzing the
present status of post-paid packages compare to other packages offered by Grameenphone
and the future prediction of the product based on organizations aptitude and customer
expectations. Grameenphone has come a long way. It is a joint venture enterprise between
Telenor (55.8%), the largest telecommunications service provider in Norway with mobile
phone operations in 12 other countries, and Grameen Telecom Corporation (34.2% ), a nonprofit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank.
The other 10% shares belong to general retail and institutional investors.
Grameenphone is seeing the Bangladeshi market as a great opportunity to do business.
Grameenphone has launched the largest Initial Public Offering (IPO) in Bangladesh. It
expects to raise US$70.4 million dollars through the IPO sale of 69.44 million shares. As a
part of continuous market development strategy, Grameenphone needs a comprehensive
study on the telecom sector and cellular industry that will help in better understanding the
industry in which it is operating. The company, 55.8% owned by Telenor of Norway, has
raised the same amount from institutional investors. The money will be spent on network
expansion and developing its information technology infrastructure.

The company has so far invested more than BDT 10,700 crore (USD 1.6 billion) to build the
network infrastructure since its inception in 1997. The population coverage of Grameenphone
network was increased from 55% to 95% during the year. And Grameenphone will continue
to make the network quality and capacity improvements through the country and also
improve coverage in major highways and important public access buildings. The entire
Grameenphone network is also EDGE/GPRS enabled, allowing access to high-speed Internet
and data services from anywhere within the coverage area. There are currently nearly 3
million EDGE/GPRS users in the Grameenphone network.

1.3.

Problem Statement:

This Internship project will be titled as Current scenario of post-paid package & its future
prospects- An analysis on Grameenphone. In the current business world, particularly in
telecommunication sector, long-term customer maintenance, i.e., attaining sustainable market
share is a vital issue. My internship project is about analyzing the present status of post-paid
packages compare to other packages offered by Grameenphone and the future prediction of
the product based on organizations aptitude and customer expectations.

1.4.

Objectives:
Broad Objective:

Analyzing the present status of the post-paid service & the future prospects of the product
based on the organizations capability and customers expectation.
Specific objective:
The research will be aimed at fulfilling the following specific objectives:

To compare the service offered by the Grameenphone in response to their customers


expectation and to find out the problems behind the post-paid service offered by the
company

To analyze whether the service is demandable for the Mobile market

To determine that is there any special feature that differentiates pre-paid service from
others and also to describe the future offers, expectations, and prospects of the
organization

1.5.

Significance of the study:

This report provides a close analytical look at the subscribers service satisfaction level that
GP is providing recently and usages with a closer to view subscribers expected services from
GP. This report will help to gather knowledge about the services provided by Grameenphone.
To remain in leading position in post-paid market, this research is very needful because
customer is the core concentration of marketing. Their satisfaction will bring
Grameenphones success and help to reach the goal.

1.6.

Methodology:

Business research used in this report is of descriptive nature. Through this descriptive
research this report seeks to determine the answers to who, what, where and how questions of
the cellular industry of Bangladesh. To prepare the report, research design and methods of
this study is described as follows:

Data source:

Data for this report has been extracted from primary sources as well as secondary sources.

Figure-1

Primary Data:
Primary Data will be collected though questionnaire survey which will be done on post-paid
users of Grameenphone and direct interview will be done with corporate employees of
Grameenphone Limited.
Secondary Data:
Majority of the data will be collected from Annual Report, Informal discussions mainly with
my supervisor, published articles on telecommunication sectors, journals, brochures,
Grameenphone official web sites. Many of the data will be collected from the observation of
the Fund Management and Collection Departments activities.

Sample Size:

The sample size of will be 120 for this project purpose.

Questionnaire design:

The questionnaire will be designed in such a way so that the view of respondents articulated
properly regarding each and every issue.

Data Collection:
Organization part-

Annual Report, Informal discussions mainly with my supervisor, published articles, journal,
and brochures, Company websites
Project part

Organization part information will be provided in a descriptive manner

Data will be analyzed by the software called SPSS

Ill conduct correlation, regression analysis and ANOVA, T-Test to find whether the
hypothesis gets proved or not

1.7.

Limitations of the study:

Time constraint is a big factor could be a big issue, as I have to do this report along with
my regular office work

Data availability could be another big issue here because company might not want to
disclose all the confidential information regarding their managerial strategies and plans.

The sample population will be limited in terms of proportion and composition.

Data collection is restricted within Dhaka city only, which may fail to represent the
factual scenario of the relationship between measured variables.

As the data are collected are collected through the surveyor, it may hamper the data
validity and reliability

Grameenphone Limited: An overview

2. Name and Location of the Company:


Grameenphone limited is now the leading telecommunications service provider in
Bangladesh. It is a joint venture enterprise between Telenor and Grameen Telecom
Corporation, a non-profit sister concern of the internationally acclaimed microfinance
organization and community development bank Grameen Bank. Telenor is the largest
telecommunications company in Norway and it owns 62% shares of Grameenphone and
Grameen Telecom owns the remaining 38%.
Headquarter of Grameenphone is situated at Bashundhara Residential Area. They also have
around 14 buildings in Gulshan area, which was the previous headquarter of Grameenphone
office. None of those are Grameenphones own building. The GP HOUSE- Grameenphone
9-story headquarter building is located adjacent to the main entrance of the Bashundhara
Residential Area. The building was constructed by Associated Builders Corporation
Limited and Vistaara and Icon Architects (VIA) was the consultant.

3. Historical Background of the Company:


The Telecom market in Bangladesh has differentiated characteristics of very low Tele-density,
inefficiency and totally controlled by capitalization. BTTB (Bangladesh Telephone and
Telegraph Board) is proved to be incapable of providing sufficient interconnections to meet
the demand of mobile services providers. The state owned BTTB has been the monopoly
telephone service provider in the telecom industry. The zest of improving the efficiency and
ability of BTTB, the government initiated a restructuring program in telecom sector to
corporatize BTTB.
BTTB provided only fixed line telephony services in the urban areas where as 80% of the
population of Bangladesh lived in the rural areas. This unequal distribution of services
created the opportunity for the mobile operators to do business. In the telecom sector earth
shaking changes cropped up when Bangladesh government allowed private sector
participation in telecom sector by granting the permission to operate as a private service
provider in 1989. This license was awarded to two operators, BRTA (Bangladesh Rural
Telecom Authority) and Sheba Telecom Pvt. Ltd. Opening its mobile phone sector for private
and foreign investment in 1989, Bangladesh holds the pioneering figure among LDCs.
Pacific Telecom launched the country's first mobile phone service.

Figure-2

3.1.

Achieving Licenses:

The granting of service license to Bangladesh Telecom Authority in 1989 paved the way for
mobile service in Bangladesh. Pacific Bangladesh Telecom Limited (PBTL, now Citycell)
operating under CDMA technology was offered a cellular license in Bangladesh in 1993. In
1996, Bangladesh was preparing to auction off private cell phone licenses to four companies.
So in October 10 1996, at the request of Dr. Muhammad Yunus (Grameen Banks founder)
completely independent of Grameen Bank, a not-for-profit private company called Grameen
Telecom was formed as private limited company. Grameen Telecom, in turn, created a forprofit company called Grameen Phone, found a foreign partner, and put in a bid; Grameen
Phone received one of the four licenses.

3.2.

Launching Grameenphone service:

In the midst of lack of communication means, Grameenphone launched its service on the
Independence Day of Bangladesh with an effective and user-friendly mobile phone network.
They started their operation from March 26, 1997 with only 72 employees. They converted to
public limited company on June 25; 1997.Grameenphone put a positive impact on the
lifestyle of the people of Bangladesh.
Grameenphone was the first company to introduce GSM technology in Bangladesh when it
launched its services in March 1997. Since its inception, Grameenphone remains committed
to providing the best service to its customers, as well as launching innovative new products
and services. The Village Phone Program started in 1997 that provided a good incomeearning opportunity to more than 210,000 mostly women Village Phone operators living in
rural areas. Grameenphone makes its profits by serving wealthier urban customers. But from
the point of view of the Grameen family and its strong anti-poverty mission, the for-profit,
urban-only Grameen Phone exists for only one reason: To fund, with its profits, the extension
of cell phones into rural Bangladesh in order to provide entrepreneurial opportunity to
Grameen Bank members through Village Phone. As Dr. Yunus puts it, "Grameen Phone is
merely what we need to do Grameen Telecoms Village Phone."
The Village Phone Program was an exclusive program to provide widespread access to
telecommunications service in remote, rural areas. Controlling by Grameen Telecom
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Corporation, it enables rural people who normally cannot afford to own a telephone to gain
the service while providing the VP operators an opportunity to earn a living.

3.3.

Journey of Grameenphone:

After a successful launching, Grameenphone introduced its services in the second largest city
of Bangladesh, Chittagong In June 1998. Cell to cell coverage in the Dhaka-Chittagong
corridor also enabled Grameenphone to introduce its service in a number of other districts
along the way.
In 1999, Grameenphone expanded its business and started its business in Khulna. A good
number of other districts came under their coverage because of cell to cell coverage between
Dhaka and Khulna. Grameenphone was also the pioneer to introduce the pre-paid service in
September 1999. They introduce the EASY pre-paid service in the local market. Besides, it
established the first 24-hour Call Center, introduced value-added services such as Voice Mail
Service (VMS), Short Message Service (SMS), fax and data transmission services, and many
other products and services.
In 2000 Grameenphone started its services in Sylhet, Barisal and Rajshahi and brought all six
divisional headquarters under the coverage of its network. The service in Barisal region was
happening after the microwave link between Khulna and Chittagong was completed. After six
years of operation, in August 2003 Grameenphone has more than one million subscribers.
And from November 2005 Grameenphone continues to being the largest telecommunication
operator of Bangladesh with more than 5 million subscribers. Grameenphone Ltd is
continuing its operations with a success in 2006. In November it has just reached the mark of
10 million customers.
In 2008, Grameenphone has been listed in Bangladesh capital market after completing the
largest initial public offering (IPO) ever in the countrys history. Trading of Grameenphone
shares began in both Dhaka and Chittagong Stock Exchanges on 16 November 2009. The
share of BDT 10 each was offered with premium at BDT 70 and on 30 December 2009 the
trading price closed at BDT 187.5 in the Dhaka Stock Exchange. The number of subscribers
is increasing day by day. At present there are around 50 million telephone users in
Bangladesh whereas more than one million are fixed-phone users and rest mobile phone
subscribers. As of December 2009, Grameenphone has crossed more than 23 million
8

subscribers. GPs subscription base reached at 23.3 Million with 44.4% market share at the
end of 2009. Grameenphone operates a digital mobile telecommunication network based on
GSM standard in the 900MHz and1800MHz frequency bands under a license granted by
BRTC which will expire on November 2011.

4. Name and Characteristics of founder:


Grameenphone is a joint venture company comprising of:

Figure-3

Telenor A state-owned telecommunication company from Norway. It has a long history


of successful cooperation with other operators in Russia, Hungary, Montenegro, Ireland,

Bangladesh, Greece, Germany, Germany, Australia, Malaysia etc.


Grameen Telecom - A sister concern of Grameen Bank. It was established by Grameen
Bank to organize and assist those Grameen bank borrowers who wish to retail telephone

services in the rural areas.


Marubeni Corporation A leading investment and trading company from Japan. The

company owns 9.5% of GP.


Gonofone Development Corporation A New York-based telecommunication
development company having investments in many companies in USA, Russia and other
parts of Europe. Gonofone Development Corp. owns 4.5% of GP.

5. Existing Share-holders:
9

Grameenphone is the largest mobile phone company in Bangladesh. The shareholders of


Grameenphone add their exclusive, in-depth experience in both telecommunications and
development. Telenor holds 55.8 per cent of Grameenphone, with Grameen Telecom
Corporation owning the remaining 34.2 per cent. The rest of the shares belong to general
retail and institutional investors. Telenor has played a pioneering role in development of
cellular communications in Bangladesh.

Figure-4
The international shareholder brings technological and business management expertise while
the local shareholder provides an existence throughout Bangladesh and a deep understanding
of its economy. Both are dedicated to Bangladesh and its struggle for economic progress and
have a deep commitment to Grameenphone and its mission to provide affordable telephony to
the entire population of Bangladesh.

6. Vision, Mission, Objectives and Strategy:


6.1.

Companys Vision:

Grameenphones vision is Were here to help. That means Grameenphone Ltd. is always
there to help the customers get the full assistance of communications services in their daily
lives. They want to make it simple for the customers to get what and when they want it.

6.2.

Companys Mission:

10

The mission of Grameenphone Ltd is to deliver reliable, widespread, convenient mobile and
cost effective telephone services to the people in Bangladesh irrespective of where they live.
They are providing a total communication solution to its customers. To do this, the service
advance of Grameenphone has extensively developed over the last few years. Grameenphone
subscribers now enjoy all the modern data communication and content services. Mobile
office, internet access, MMS and modern music and download services are available through
the nationwide EDGE enabled network.

6.3.

Companys Objectives:

Grameenphone (GP) has been established to provide high-quality GSM cellular service at
affordable prices. Grameenphone has a dual purpose:

To receive an economic return on its investment

To

contribute

to

the

economic

development

of

Bangladesh

where

telecommunications can play a critical role


The Company has developed its strategies so that it earns healthy returns for its shareholders
and at the same time, contributes to genuine development of the country. This is why
Grameenphone, in collaboration with Grameen Bank and Grameen Telecom, is aiming to
place one phone in each village to contribute significantly to the economic benefit of the
poor. It is on the way to get a total uprising in the telecommunication field. By accomplishing
the success factors, Grameenphone would like to be recognized as a consistent, honest and
committed company to its valued subscribers and stakeholders.

6.4.

Companys strategy:

Grameenphone Limited's strategy was to effectively become the second national operator in
Bangladesh. Instead of focusing on a high-end, niche market; it pursued a low tariff strategy
designed to compete directly with BTTB.
Continuously grow subscriber base:
Grameenphones strategy is to grow their subscriber base, while seeking to limit declines in
APPM, by increasing the availability of their products and services throughout the
Bangladesh and by aiming to improve customer retention.
Focusing on high value customer:
11

Grameenphone strive to provide superior network coverage, connectivity, quality and


reliability, as well as to continue their product and service innovations through continued
investment in their network and products. They are focusing on high value customer segment
which they expect will grow as Bangladesh population becomes more affluent with their
value-added services, in particular Internet access and BlackBerry. They intend to increase
their focus on high value business segment customers, given the high usage of voice and non
voice services by these customers.
Achieve capital and operational efficiencies to improve profit margins and cash
flow generation:
Grameenphones strategy is to continue to exercise strong discipline over their operating
costs and capital expenditure to achieve improved efficiency and productivity in their
operations and leverage their existing capacity. They have also plan to reduce their operation
and maintenance expense by, among other things, using solar power, controlling service
agreement pricing and lobbying to reduce the SIM tax.
Increased Brand Awareness and reinforce brand values:
Grameenphone intend to support their brand by undertaking brand refreshment exercises
from time to time. They have planned to increase brand awareness through various point of
sales promotions.
Increased revenue from non voice services:
Grameenphone is offering a wide-range of non voice services, including SMS, MMS, games,
information services, content download, ring back tones, Internet access and BlackBerry
services. They plan to continue increasing their revenue from non voice services, developing
additional services and further expanding their presence as one of the largest provider of
internet access in Bangladesh.
Continue to expand their comprehensive distribution network:
Grameenphone new distribution model is to push sales to retailers by distributing their SIM
cards, electronic recharge systems and scratch cards through a network of nearly 100 thirdparty distributors. Their objectives under this new distribution model are to improve their
product availability throughout the country with the establishment of more points of sales,
improve inventory management, accelerate distribution of product, provide better support to
12

their customer base, create a strong channel of communication between Grameenphone and
subscribers and obtain better market data to allow them to be more dynamic and responsive
to the market.

6.5.

Companys Value:

Make it Easy:
Grameenphone believes that they are sensible. Everything they create is easy to appreciate
and use as they never fail to remember that they are trying to make their customers' lives
easier.
Be Inspiring:
Grameenphone believes that they are imaginative. They convey energy and thoughts to their
work. Grameenphone wants to be a collaborator in the progress of our society. They are
passionate about our business, customers and country.
Keep Promise:
Everything Grameenphone set out to do should work. If it does not, they are there to put
things right. They are about delivery, not over promising - actions not words.
Be Respectful:
Grameenphone shows acknowledgement and admiration the local culture. They are courteous
and professional in regard to all interactions, both internally and externally. They are open,
helpful and friendly.

7. Organizational Structure:
Grameenphone has now more than 5000 employees. Grameenphone is divided into several
departments namely technical, sales & marketing, customer relations, administration, human
resource, finance and IT. Recently management has brought a change in the organizational
structure in view of need of time. Management and organization structure of Grameenphone
Ltd. are given in the following

13

Board of Directors:
Name

Position

Age

Date of First

Sigve Brekke

Chairman And

49

Appointment
September 1,2008

Mr. Per Erik

Director
Director

56

June 25, 2007

Hylland
Mr. Snorre

Director

37

March 23, 2009

Corneliussen
Mr. Dipal Chandra

Director

54

June 26, 2006

Barua
Mr. M. Shahjahan

Director

53

June 26, 2006

Table-1
Management Team:
Name
Oddvar Hesjedal
Laszlo Barta

Position
Chief Executive Officer
Acting Chief Marketing Officer

Age Date of Joining


58
June 3, 2008
40
September

Frode Stoldal

Chief Technology Officer

38

1,2005
November 1,

36

2007
September 10,

Ahmed Raihan

Chief Corporate affair officer, Acting

Shamsi

chief Financial officer and Company

Arnfinn Groven
Khalid Hasan

Secretary
Chief Human Resource Officer
Director, Corporate and regulatory

Syed Yamin

affairs
Director, Public Relations Divisions

Bakht
Farhad F.

Head of Internal Audit

Since 2006

Ahmed
Titus Dan

Chief Marketing Officer

Since 2008

2001
52

August 1, 2007
Since 2001

Table-2
Organogram of Management Team is given below:

14

Figure-5

8. Operating Coverage:
Grameenphone has the leading network with the widest coverage in the country. The
Grameenphone network now covers over 99 percent of the population and over 87 percent of
the land area with the remaining areas mostly falling under the Sundarbans and the
Chittagong Hill Tract areas where mobile phone coverage is not allowed. Presently
Grameenphone has covered 462 upazillas of 64 districts.

15

Figure-6
The company has so far invested more than BDT 10,700 core (USD 1.6 billion) to build the
network infrastructure since its inception in 1997. It has invested over BDT 3,100 core (USD
450 million) during the first three quarters of 2007 while BDT 2,100 core (USD 310 million)
was invested in 2006 alone. Since its inception in March 1997, Grameenphone has built the
largest cellular network in the country with over 10,000 base stations in more than 5700
locations. A record 4181 new base stations were put into operation around the country during
the year, crossing the 10,000 base station milestones in the process. In addition, the entire
Grameenphone network is EDGE/GPRS enabled, allowing its customers to access high-speed
Internet from anywhere within the coverage area.

9. Grameenphones Different Divisions and Department:


In recent times management has brought a change in the organizational structure in view of
need of time. Currently Grameenphone has 11 divisions and 5 departments to run its
operations smoothly. The divisions are:

Customer Management Division

Finance Division

Information Technology Division

16

Sales and Distribution Division

People and Organization Division

Fiber Optic Network Division

Regulatory and Corporate Affairs Division

Technical Division

Projects Division

New Business Division

Marketing Division

The departments are independent from any divisions. The names of 5 departments are:

Administration Department

Revenue Assurance and Fraud Management Department

Information Department

Internal Audit Department

Legal and Compliance Department

There are also two projects running under observation of Deputy Managing Director. The
projects are independent of Projects division. These are, CHQ Project and Efficiency Project.
Among them the respective directors head ten divisions. Marketing division is leaded by a
deputy director. A General Manager leads Information Department. He has to report direct to
the Managing Director. Head of supply chain management has to report directly to the
director of Finance Division. This responsibility is added recently to the Director, Finance
Division.

9.1.

Customer Management Division:

Customer Management Division is the link between the customers and the company. People
in this division serve the clients. A total of 210 people in this division are providing customer
service. They are escalating the relationship of Grameenphone with its valued customers.
This division can be subdivided into three major parts

Call center
Billing department
Trainee development department.

17

Figure-7
Call center:
Call center act in response to customers' query. 150 to 190 people working in shifting basis in
call center. They provide 24 hours service to the customers through telephones. They receive
queries and complaints related to GP service and network, solve them, provide different types
of information to the clients etc.
Billing Department:
Billing department is generally accountable for billing customers for the service and
collecting the revenue from them. This department works with the help of its eight units. The
units are distribution unit, general banking unit, bank reconciliation unit, bank
communication unit, collection unit, credit recovery unit, fraud management unit and revenue
assurance unit.
Trainee development department:
Trainee development department arranges all type of in-house and overseas training programs
for the employees. Experts from within the Grameenphone family conduct in-house training
programs. These programs include orientation for new employees, team-building workshops,
customized training for the senior managers on management style, motivation, and project
management and handling difficult situations. Many Grameenphone employees are sent to

18

foreign countries for overseas training, workshops and seminars. All the organization and
formalities concerning these programs are done through this department.

9.2.

Finance Division:

The Finance Division consists of 330 employees in its various departments. The Division
encompasses all financial activities - both internal and external. Department of finance is an
integral part of finance division. The main role of this department is defined in under:

Attends to financial planning and control and

Budget and budgetary control

Provide management information and development of system and method

Ensure proper internal control over the company

Analysis of financial statement for future action

Information flow for inter-department and external using

Co-ordination with external organization and internal department.

Responsible to lender, Telenor and Bangladesh Bank related to financing issues


Liaison with foreign lenders, sponsors, bankers and regulators

Investment Control:

Evaluation new investment proposal as project or programs


Prepare business case
Advice management and investment committee andre-rank the investment options

Financial Control:

Implementation of IFRS in preparing the financial statements


Maintain and develop internal control structure aiming at the Sarbanes Oxley Act

2002 (Section 404)


Check compliance of financial and procurement policies
Compliance with tax related issues and Review policies and procedure in place
and pass suggestion for continuous improvement

Payroll and Taxation:


This is a very sensitive and important segment in finance department. This department
compiles the Companies Act and rules regulations of the Government. This is also working
as legal advisory of tax, VAT and other external affairs. There is several sections based on
work volume and criteria of the extended works. The main role of this department defines as
under:

Preparation of payroll statement and bank advice

19

Preparation of salary perquisite and return submission and preparation accounts


and financial statement for tax and audit

Companys tax return and ensure assessment

Ensure tax deduction and issuing certificate individuals and ensure treasury
deposits for tax, VAT and deduction at source

Supervising and arrange VAT register and reconciliation statement

VAT return and revenue statement preparation and preparation VAT report
periodically and annually

Price declaration for service offering and ensure approval


Supervision Provident fund and ensure investment of fund and supervising
welfare fund and ensure internal using

Ensure work permit and foreign loan registration

Internal audit co-ordination and external audit finalization and Quarterly report to
NBR (National Board of Revenue) regarding connection and handsets

Return and relevant document submission to join Stock Registrar and coordination and corresponding with external organization and internal department.

In-addition to the above activities, special tasks assigned by the departmental/ management in
lieu of emergency basis also performed by this department.
Reporting & Accounting & System Administration

Financial reporting to Management, Telenor, OCM and Board


Financial and management accounting- actual and budget
Budgeting (preparation/implementation/monitoring)

Assets and Insurance

Asset addition and Capitalization WIP


Land and land advance and Insurance for fire and business interruption

International Settlement & Insurance

Letter of Credit for all imports, Leasing, insurance and contracts


International roaming and receivables, payables and invoicing
All foreign payment, employee foreign travel and training payments and advance.

Treasury Department

Fund management and Cash rolling forecast


Local payments, Employee gratuity and provident fund
Bank reconciliations

Revenue Accounting
20

Collection of prepaid, post-paid and international roaming bill from subscribers


Recognition of prepaid, post paid revenue and revenue from all sub leases
Reconciliation of all collections
Handset payment management
Banking arrangement for collection
Costing of inventories and Invoicing to subleases and collection
Participation in revenue assurance activities

9.3.

Sales and Distribution division:

Sales and distribution division have direct interface with customers. The total number of
employees of this department is 1588. The division is subdivided into two parts

Sales department
Distribution department

Figure-8

Sales Department:

Sales department of Grameenphone is responsible for selling products and services of


Grameenphone. Therefore they have to work in close collaboration with Marketing Division
for their success in selling. They also need to keep good relationship with the sellers and also
with customers.

Distribution department:
21

The responsibilities of the part or the distribution department includes instant delivery of
products and services, maintaining relationship with dealers, serving the corporate clients
with extra care, follow up existing subscribers and building relationship with new and
existing subscribers. One of the most important tasks of sales department is sales-forecast.

9.4.

Information and Technology Division:

The Information Technology Division became a separated division in 2003. Till then it was
under the wing of People & Organization Division. The IT Division comprises the following
departments:

9.5.

Core Systems:
Development/integration of business critical systems
Maintenance of business critical systems
IT Operations:
Access control, accessibility and stability for end- and IT-users
Operations, planning of operations and monitoring
Security
Readiness
Information Security:
Design, develop and deploy a security infrastructure including intrusion
detection, protection, assessment and management
Publish, monitor and enforce information and computer security policies
Supervise and/or conduct periodic security assessments
Manage long-term projects to improve security posture and capabilities
Business Processes and Architecture:
Overall IT architecture
Management of business process framework
Business process modeling
Exception handling
Project and Change Management

People and Organization Department:

People and organization Department, a significant department of Administration Division


plays very essential role in the total functioning of Grameenphone. Employee recruitment,
selection, transfer, promotion, training, performance appraisal - all these are conducted by

22

this division. The informal structure of HR according to its functions can be classified into
three main categories they are:

Human Resource Management (HRM)

Human Resource Development (HRD)

Human Resource management Information system (HR- MIS)

Human Resources Development functions aim to increase the quality of the human resources
especially through training. Different divisions send their personnel requirement to HR
department. Then HRD sets target, prepare recruitment planning and go for the recruitment
process. When an employee is recruited a separate employee file is opened comprising of all
information of the particular employee which is regularly upgraded by HRD. This department
is also responsible for performance appraisal of employees that is very important for the
confirmation, increment, promotion, transfer of employees. This is done through job analysis,
setting up of performance standard and appraisal interview. HR Management also deals with
some personnel functions like show cause, termination, Dismissal, discharge, and resignation.
It also issues circular as & when required, conduct department inquiry, and all other functions
related to HR.

9.6.

Regulatory and Corporate Affairs Division:

This division looks after the regulatory and interconnection issues. It is responsible for
maintaining close relationship with BTRC, MOPT, PSTN operators and mobile operators for
matters related to interconnection with fixed and mobile operators, and interconnection &
Revenue Sharing Agreement. This division is also responsible for maintaining relationships
with Ministries, the National Parliamentary Telecom Committee, Government agencies like
the Board of Investment (BOI), the National Board of Revenue (NBR), and law-enforcing
agencies.

9.7.

Technical Division:

The Technical Division can be considered as the brain of this organization. Most of the
people in the technical division are from the engineering and technological educational
background. This division has 1077 at present which is the highest number of employees.
This division is divided into three departments-

23

Planning Department:
People working in planning department build the technology. They are accountable for
planning the network and equipment, taking decision about new expansion, enhancement and
up-gradation and closely monitoring network performance. They are also engaged with BSC
(Base Station Controller) and MSC (Mobile Switch center) related planning, timely supply of
equipment, making roaming agreements with other countries and negotiating with home
owners for building base stations on the roofs. This department has three parts: switch
planning, radio planning and transmission planning.
Implement Department:
The people of implementation department are responsible for the construction and acquisition
of base station room, antenna pipe, and power supply etc., installation of new base station
hardware, start-up and pilot operation of base station. It is also divided to three units: site
acquisition, civil works and roll-out.
Operations Department:

24

Operations department is responsible for smooth operations and maintenance of the network.
Their main tasks are operation, maintenance and overall management of the networks, fault
detection and fault handling of networks. This department always closely monitors the
network performance.

9.8.

Fiber optic network division:

The Fiber Optic Network (FON) Division is a complete Division under Deputy Managing
Director. It manages the nationwide Fiber Optic Network, and to create and sell the
Transmission Capacity commercially to prospective business units/clients. The division
shares use of Fiber Optic Network capacity with third parties such as other telecom operators,
ISP's DDN service provider etc. Grameenphone is capable of offering point to point full E1
connectivity within GP Transmission Network for their sub-lease clients.

9.9.

Marketing Division:

Marketing is responsible for all types of Product development and launch, Branding and
communication, International Roaming, Value Added Services and all types of Research
activities. The Division comprises the following departments:

Product and Market Development Department (PMD)

The Product and Market development Department includes Products & Prices Section
(Business Solution, djuice and, Mass), New Product development and Innovation lab, and
Forecasting and Analysis Section.

Market Research and Planning Department (MRP)-

Market Research and Planning Department includes Segmentation, Research & Planning
Section and Market Intelligence - acting as a central research point for Grameenphone.

Market Communications Department-

The Market Communication Department deals with media management, event management
and regional marketing.

International Business Department25

The International Business Department is involved in international roaming services.

Value Added Services Department-

Value Added Services Department includes Service Development and Management Section,
Content Provider / Aggregator Management Section, CPA/CSF Platform Section and
Advanced Services section.

Brand Development and Management Department

9.10. Project Division:


The task of projects division is to manage the process of initializing, prioritization,
monitoring of execution of all major change request (projects). This division is accountable
for overall performance, measure and report of IT in delivering project-based services. This
division develops, maintains, and evolves standards, tools, templates, and documented
processes for project management within IT. Another task of this division is to develop tools
to assess the effectiveness of project management efforts within IT. This division gathers
project information and maintains a list of current project activity for IT including project
timeframes and resource utilization.

9.11. New Business Division:


New business is the newest division in the Grameenphone Ltd. Mr. Kafil H.S. Muyeed is the
director of this division. To seek new business opportunity in the telecommunication industry
is the main objective of this department.

9.12. Administration Department:


This department headed by an AGM has three units

Office- The office unit looks after the furniture and general maintenance of the office

premises.
Security- The security unit is responsible for managing the security of office, TBS,

switches and BTS.


Transport- The transport unit determines the transport routes; transport related costs
and hires cars and microbuses for GP officials.
26

9.13. Revenue assurance and Fraud management department:


Revenue Assurance and Fraud Management (RAFM) function in Grameenphone is
responsible to stop revenue leakage in any form (intentional & unintentional) across the
complete business chain (Internal & External). Revenue Assurance and Fraud Management
focus includes core business processes, support processes, systems, people and organizations
involved with GP business in any form. RAFM as a principle, highly emphasize on cross
functional cooperation based on smart & effective processes.

9.14. Internal Audit Department:


This department, with a direct reporting to the Managing Director, is responsible for
monitoring the activities in the light of policies or procedures set by the Board of Directors
and/or the Management Team. In addition, this unit has to follow the Group Internal Auditing
Guideline as a part of subsidiary of Telenor Mobile. On the basis of reports of the Internal
Auditor, actions are taken to bring about developments and rectifications of systems or
policies and procedures.

9.15. Legal and Compliance Department:


This is a one-unit department whose major functions comprise as follows:

To ensure sufficient legal coverage and minimum exposure to risk


To establish high standards of corporate governance
To build GP's image as a compliant organization both among its customers
its other stakeholders

9.16. Information Department:


Information department is managing the efficient flow of information. It is responsible to
manage the relationship with media and newspapers, publish news bulletins regarding
different events of the company. It also publishes monthly newsletters and the Annual Report
of Grameenphone. It determines the contents of Grameenphone websites and Grameenphone
at work intranet site.

27

10. Industry Analysis:


In the past three decades, due to significant liberalization and privatization, the entire
telecommunications industry has become a dynamic environment with huge growth potential
subject to new opportunities as well as threats. In recent years, in some Asian countries the
number of mobile subscribers even passed the number of fixed-line subscribers. Hence, lately
the strategic behavior of telecommunications companies has attracted so much attention, both
in the academic literature and in the popular press. In Bangladesh the scenario is not much
different. At present the socioeconomic profile of Bangladesh provides a great opportunity
for the mobile industry to expand as the regulation in the mobile services is becoming more
relaxed. Although the number of mobile operators is still limited to a few (five private mobile
operators and one state-owned operator), aggressive competition has forced the incumbent
telecommunications companies or mobile operators to reconfigure their strategy and business
to sustain or improve their competitive advantage.
In order to create a stronger framework and encourage further investment and monitor and
regulate the expanding telecommunications sector, in 2001 the Government of Bangladesh
enacted a new telecommunications law, BTA. The BTA provides for the creation of the
BTRC and specifies its responsibilities. The BTRC is an independent commission and
commenced functioning from January 31, 2002.
Under the BTA, the BTRC has the power to issue, renew, suspend and cancel licenses for
establishing and operating telecommunications systems, providing telecommunications
services and using radio apparatus and radio frequencies. The power is to be exercised in
accordance with the objectives of the BTRC in sections 29 of the strengthens the social and
economic welfare of Bangladesh; ensuring access to reliable, reasonably priced and modern
telecommunications services for the greatest number of people; and encouraging the
introduction of new services and creating a favorable investment climate. The BTA also
requires the BTRC to maintain and promote competitions between service providers. In
addition, the national telecommunications policy 1998 emphasizes the need to increase
teledensity rates and expand and upgrade network coverage throughout Bangladesh, in

28

particular by promoting greater private participation in the provision of basic


telecommunications services.
Bangladesh telecom (Pvt.) Ltd. (Bangladesh Telecom) was granted a 20-year license in
1990 covering trunked radio, cellular radio (both mobile and fixed-lines, i.e. including
wireless local loop), and paging and riverine radio communications networks by BTTB. This
license refers to a short agreement entered into on July 26, 1989, under which Bangladesh
Telecom received an exclusive right to provide telecommunications services for a period of
five years.
The part of the license authorizing cellular radio telephony (fixed line and mobile) was
transferred in 1993 with the consent of BTTB to Hutchison Bangladesh Telecom Ltd.
(Hutchison Telecom) being a joint venture between Bangladesh Telecom and Hutchison
Telecom. Hutchison Telecom subsequently changed its name to Pacific Bangladesh Telecom
Ltd. (Citycell) in 1996.
The mobile phone operations decisions were never being influenced by any International
agreement but held up as an independent entity for making market to grow. Self learning and
liberalizing the mobile phone sector shaped up in a chronological strategy for Bangladesh.
From 1993 till 1996 the mobile phone services were monopolized by one company; Pacific
Bangladesh Telecom Ltd. which didnt let the customer benefitted, however, with the
commissioning of mobile phone service by Grameen Phone Limited in 1997, the situation
started to improve in terms of price reduction and quality. The later period could be said
Grameen phone Ltd. golden period, but the arrival of Banglalink in (2005) the mobile phone
market brought immense price competition. The intensity of competition came as a blessing
for the customers. This change in trend forced every player to adjust their price policy and
quality. With significant reductions in tariff levels, Bangladesh is now one of the worlds
fastest growing telecommunications markets with a tele-density of approximately 30 percent.
This growth has supported the economic growth of the Bangladesh economy and Bangladeshi
consumers have received substantial benefits. Recently, there has been more regulatory
reform activity with the promulgation of the International long Distance Telecommunications
Services (ILDTS) Policy in 2007 and the corporatization of the BTTB to form the
Bangladesh Telecommunications Company Limited (BTCL). The ILDTS Policy is
remarkably wide in its ambit and significant in terms of its effects on the telecommunications
sector in Bangladesh. It not only introduces competition in international services market but
29

also engages in significant industry restructuring by the introduction of new licence


categories such as the Interconnection Exchanges (ICXs)1. It also makes significant new
policies in relation to interconnection including voice and data, quality of service and retail
tariff-ing.

The GSM standard, operating in the 900MHz and the 1800MHz frequency bands, is the
predominant technology standard used for mobile telecommunications services in
Bangladesh.

Company
Grameenphone
Robi
Banglalink
Citycell
Teletalk
Warid

Technological Standard
GSM 900/1800
GSM 900/1800
GSM 900/1800
CDMA 800
GSM 900/1800
GSM 1800

Source: Informa Telecom & Media


30

The Bangladesh Mobile Telecommunications services industry has experienced significant


growth in recent years. The total number of mobile telecommunications subscribers in
Bangladesh increased from 4.2 million as of December 31, 2004 to 44.6 million as of
December 31, 2008, representing a compound annual growth rate of approximately 81.1%.
Grameenphone Limited believe this increase had been driven by various factors, including

An increase in the geographic coverage for mobile telecommunications services by

each of the major operators in Bangladesh


Continuing declines in the prices of mobile handsets
An increase in affordability of mobile telecommunications services due to continuing
declines in per minute prices and increasing availability of lower cost pricing plans

Despite having seen substantive growth over recent years, mobile telecommunications
penetration levels in Bangladesh remain low in comparison with those in other Asian
countries. The mobile telecommunications industry in Bangladesh is currently led by three
major GSM operators: Grameenphone, Banglalink and Robi. Grameenphone has the largest
market share with a subscriber market share of 47.0% as of December 31, 2008. Banglalink,
a subsidiary of Orascom, has the second largest market share by number of subscribers. Robi,
70.0% owned by Axiata (formerly TM International), has the third largest market share by
number of subscribers. Warid, founded by the Abu Dhabi Group, entered the market in 2007
and has gained

Company

Market Share, 2008

market share by
subscribers.
subsidiary

of

Singapore-based

Grameenphone
Robi
Banglalink

47.0%
18.4%
23.1%

Citycell
Teletalk

4.1%
2.2%

Warid

5.2%

the fourth largest


number

of

Citycell,

SingTel,

the

telecommunications company, has the fifth largest market share by number of subscribers,
and is the sole mobile operator to use a CDMA system. Teletalk owned by the Government
has the lowest market share. The following table summarizes market shares of mobile
telecommunications operators in Bangladesh:

31

Source: BTRC
Increasing competition among the major private telecommunication companies in
Bangladesh is pushing them to undertake various strategic and tactical measures to attract
new customers while retaining the existing customers. In this emerging market both prepaid
and post-paid subscribers are not exhibiting strong loyalties or commitment to any particular
service provider as they have options of switching to other service provider(s) for more
convenient and suitable service offerings. Hence, the major private telecommunication
companies have a stake high enough to consider how to create a loyal customer base that will
not be eroded even in the face of fierce competition. Therefore, the major private
telecommunication companies must realize the emergence of studying and understanding
various antecedents (viz. service quality, switching cost, trust, and customer satisfaction) of
the subscribers' relationship commitment to figure out ways to create a loyal customer base.

10.1. Market Position:


Telecom industry in Bangladesh is intensely competitive. Consumer demand in Bangladesh
makes the mobile market one of the fastest growing markets in the world. According to
Bangladesh Telecommunication Regulatory Commission (BTRC) the total number of
subscribers in the telecom industry of Bangladesh is 46.69 million as of June, 2009.
Grameenphone is the leading provider of domestic access and domestic services with nearly
44 percent of subscriber connections. Importantly, the geographic reach of the Grameenphone
network is greater than 98 percent.

32

10.2 Porters Five Force Model:


Before getting into a market, every company should have an assessment of the market
environment, how that market could react in different circumstances. Porters (1998) five
forces model has the ability to determine the competitiveness of a market. According to
Porter (1998), the collective strength of five major forces determines the ultimate profit
potential of an industry. But whatever the collective strength is, the strategy should be
formulated in such way that the company can defend itself against these forces or influence
them in its favor. And knowledge of these contending forces provides the pathway of the right

strategic action (Porter 1998, p21-22). Porters five forces are as follows:-

33

Barriers of Entry
Bargaining Power of customer
Bargaining Power of Supplier
Available substitutes
Level of existing rivalries
10.2.1. Barriers of Entry:
Many foreign investors are now interested to do business in telecom sector in Bangladesh
which reveals that Bangladesh has become a significant hub for telecoms. All the current
players are either partially or fully foreign owned 55.80% of Grameenphone is owned by
Telenor from Norway; Telecom Malaysia owns around 70% of Robi and Banglalink is 100%
owned by Egyptian Orascom Telecom. Singapore Telecom (Singtel) has entered the market
by acquiring 45% share in Pacific Bangladesh Telecom. Warid Telecom of Abu Dhabi has got
the license and has already started their operation. And now the US giant Vodafone is
investing in the mobile telecom sector of Bangladesh by acquiring significant share of Robi.
A PSTN company named World Tel Ltd. whose license had been suspended, got back its
license with 7.5 MHz frequency in the GSM-1800 MHz band for operation in the central
zone. As the frequency is GSM, we expect World Tel may enter the mobile
telecommunication market. With its insignificance license fees, revenue sharing fees and
lower investment cost compared to the incumbent mobile operators, World Tel may challenge
our market share. This plethora of foreign investors shows that the threat of new entrants is
very high. However, the barrier to entry and exit are also high. High setup cost and high level
of sunk cost acts as a screening for small investors from crowding the sector.
10.2.2. Bargaining power of customer:
34

In the beginning, the mobile market was controlled by sellers. When Pacific Telecom first
introduced their brand Citycell, the startup connection used to sell for more than Tk.100,000.
The airtime was over Tk.16 per minute. However, with the increase in competition, buyers
gained more power. Currently, the market is mainly dominated by buyers. The prices have
come down a lot. The low level of product differentiation and very low cost of startup
connections have led the buyers to switch operators very frequently. In Bangladesh Telecom
industry, there are already 6 giant companies trying to find their niche. Companies are
undertaking various promotional and product strategies to reduce churn. It has been clearly
noticed that, as the market is growing, proportionally all the companies are getting new
subscribers depending their nationwide coverage. So it is assumed that, even if the bargaining
power of the customer seem to be high, due to the high growth rate of the market, each
company is somehow getting benefited. Their market share is increasing, keeping pace with
the growth rate of the market. The middlemen played a major role in the determining the
buyer power. Previously all the companies used external dealers to ensure the smooth flow of
their distribution. The commission paid to dealers was very high. However, the dealers paid a
very low level of commission to retailers, as a result controlling the market to a great extent.
Grameenphone is the first company to deal with this situation. They have started their own
distribution network. This has not only reduced cost in the form of dealer commission but
also increased satisfaction of retailers. Thus, in a market with strong buyer power, a selfowned distribution network can only help GP in maintaining its market leader position.
10.2.3. Bargaining power of supplier:
Bargaining power of the suppliers is low in the market as there are a lot of telecom related
suppliers available. Moreover, some giant Swedish and Finish multinational companies have
already established their business in the market. Since the numbers of mobile phone
companies are limited the suppliers cannot switch frequently or pressurize the buyers. On the
other hand suppliers like Ericsson, Nokia, Siemens and Motorola are pretty big player
themselves and have specialized sales units. Thus, there was always a good understanding
between the suppliers and buyers. This situation is now tipped a little bit in the favor of the
mobile phone companies by the entry of the Chinese company Huawei. They are offering to
supply at lower rates than the previous suppliers. As a result, companies now have the option
to go for cheaper suppliers.
10.2.4. Available substitutes:
35

The presence of 6 competitors in the market makes high availability of substitutes and
competitions. But with a lower price strategy or may be an innovative new service, this threat
could be altered says the BTRC Chairman. Bangladesh has a growing economy. Per capita
income is very low, but this could not hinder peoples mobile consumption. But since the
income level is low, so tendency of switching seems to be ignorable. And finding have
already given the idea about how the market is growing. Mobile industry is a technology
based industry and like any other technology has the danger of becoming obsolete by new
technology. Thus, the threat of potential substitutes is always there. Currently, the biggest
substitute of mobiles is land phone. The land phone market, until very recently, had been a
government monopoly. Private land phone licenses were issued in 2005 and the PSTN (land
phone) companies are yet to capture a significant portion of the market. Moreover, it was
found that people keep mobile phones even if they have land phone connection. Thus, the
threat from land phones is not that high. Another threat to the mobile phone industry is the
expansion of broadband technology. People, especially youngsters, are finding it cheaper to
chat online with their friends rather than talking. Broadband provides with quite a few
advantages over mobile phones: chance to communicate with more than one person, cheaper
rate are a few examples. However, lack of proper infrastructure is acting as a barrier to
expansion of broadband countrywide. Thus, it is yet to materialize as a real threat to the
mobile industry.

10.2.5. Level of existing rivalries:


The mobile telecom industry is intensely competitive. Even a few years back the industry was
not as strong as it is now. Initially, Citycell enjoyed total monopoly in this sector. After the
entry of Grameenphone and Aktel (which is now Robi), the industry condition had changed.
Citycell lost its place as a monopoly player as Grameenphone took over most of the market
share and Robi took the second position. The scenario further changed with the entry of
Orascom Telecom, the mobile giant from the Middle East. They entered the market by
acquiring 100% shares of Sheba Telecom and re-launching the brand as Banglalink.
Aggressive marketing and promotion were one of their main entry strategies and it worked.
The airtime rates and connection prices came down because of the competition. This was an
awakening call for the other operators. Grameenphone and Robi, who were silently enjoying
their market positions, suddenly became aggressive as well. There was a huge increase in
promotional activities of all mobile operators. The prices also started climbing downhill.
36

Companies focused on segment marketing as well as mass marketing. GP launched its youth
brand djuice to cater to the needs of young generation. Citycell came up with their Aalap
Super and Aalap Super Plus providing free airtime whole night. Robi, which was known as
Aktel that time also came up with new offers like Aktel JOY that catered to the need of
couples. Overall, the industry became a hubbub of activities.
The following table is showing the summary of Porters five force analysis at a glanceFive Force
Barriers of Entry
Bargaining Power of customer
Bargaining Power of Supplier
Available substitutes
Level of existing rivalries:

Strength
Low
High
Low
High
Moderate

10.3. Companys comparative conditions:


There are six mobile telephone operators in Bangladesh at the moment. Among them one is
Government owned telephone operator: Bangladesh Telegraph and Telephone Board (BTTB)
and the other five are privately owned companies namely Grameenphone Ltd., Axiata
(Bangladesh) Limited, Orascom Telecom Bangladesh Ltd., Pacific Bangladesh Telecom Ltd.
(PBTL) and Warid Telecom Bangladesh Ltd.

10.3.1. Grameenphone Limited:


Grameenphone Limited, the number one and leading mobile phone company in the area of
telecommunications in Bangladesh. Of Six mobile operators, Grameenphone Limited
managed to grab 43.9% of the market share only by providing cost-effective & best service
available in the market of mobile telecommunication. Grameenphone Limited has made its
expansion not only in the urban areas, but also it stretched its network in the rural areas for
the economic empowerment of the rural people. It has the largest network, the widest
coverage, the biggest subscriber base and more value added services than any other mobile
37

phone operators in Bangladesh. Grameenphone Limited has a very strong competitive


position in the telephone industry in the country.
10.3.2. Orascom Telecom Bangladesh Limited:
When Banglalink entered the Bangladesh telecom industry in February 2005, the scenario
changed overnight with mobile telephony becoming an extremely useful and affordable
communication tool for people across all segments. Banglalink was previously known as
Sheba Telecom which began operation in 1998. It was a joint venture between a Malaysian
Conglomerate, Technology Resources Industries Berhad and a local firm named Integrated
Services Ltd. (ISL). In 2005 Orascom Telecom Holding (OTH) acquired Sheba Telecom and
gave a new trading name Banglalink. Within one year of operation, Banglalink became the
fastest growing mobile operator of the country with a growth rate of 257%. This milestone
was achieved with innovative and attractive products and services targeting the different
market segments; aggressive improvement of network quality and dedicated customer care;
and effective communication that emotionally connected customers with Banglalink. At
present it is holding the 2nd position in the cell- phone industry with respect to market share.
10.3.3. Axiata (Bangladesh)Limited:
Axiata (Bangladesh) Limited is a dynamic and leading countrywide GSM communication
solution provider. It is a joint venture company between Axiata Group Berhad, Malaysia and
NTT DOCOMO INC, Japan. Axiata (Bangladesh) Limited, formerly known as Telekom
Malaysia International (Bangladesh), commenced its operation in 1997 under the brand name
Aktel among the pioneer GSM mobile telecommunications service providers in Bangladesh.
Later, on 28th March, 2010 the company started its new journey with the brand name Robi.
Robi is the third largest mobile phone operator in Bangladesh in terms of revenue and
subscribers (8.59 million as of February 2009). In early 2008 Robi slipped from the second
position to the third after facing fierce competition from Banglalink. Robi boasts of the
widest international roaming service in the market, connecting 315 operators across 170
countries. It is the first operator in the country to introduce GPRS. Robi uses GSM 900/1800
MHz standard and operates on allocated 12.8MHz frequency spectrum.
10.3.4. Warid Telecom Bangladesh Limited:
Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh. Warid is
the sixth mobile phone operator to enter the Bangladesh market. It is entirely owned
subsidiary of Warid Telecom International LLC which is the part of an Abu Dhabi based
38

group led by His Highness Sheikh Nahayan Mabarak Al Nahayan, a Member of the Royal
Family of Abu Dhabi, and the Honorable Minister of Higher Education and Scientific
Research of the United Arab Emirates. Warid officially launched their commercial services in
Bangladesh on the May 10, 2007 with a GSM Mobile Cellular network covering 64 districts
of the country and encompassing 70% of the mobile phone using population- the single
largest launch the country has ever seen. On July 19, 2007 Warid Telecom announced in
major dailies of having achieved one million subscribers in the first of 70 days of operation.
As of September, 2008 Warid has secured 3.86 million subscribers and is ranked fourth
among the six operators.
10.3.5. Pacific Bangladesh Telecom Limited:
Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company
of Bangladesh. It is the only CDMA network operator in the country. As of 1 March, 2008,
Citycell's total mobile subscriber base is 1.56 million, up 137 per cent or 680,000 from two
years ago, giving it the best growth rate of the company till date. Citycell is currently owned
by Singtel with 45% stake and the rest 55% owned by Pacific Group and Far East
Telecom.By the end of 2007 Citycell had refurbished its old brand identity and introduced a
new logo and corporate identity; the new logo is very reminiscent of the old logo. However
the slogan has remained unchanged "Because we care". As of July, 2008 Citycell has 1.67
million subscribers.
10.3.6. Teletalk Bangladesh Limited:
Teletalk Bangladesh Ltd. (Teletalk) was incorporated in December 2004 and is a wholly
owned company of the Government. It was awarded a GSM license in 2004 and commenced
commercial operations in March 2005. December 2005 and commenced its commercial
operation in May 2007. According to the website of teletalk Bangladesh (2009), Teletalk
Bangladesh Limited is a public limited company owned by Bangladesh Telegraph and
Telephone Board (BTTB) in other words by the Government of the Peoples Republic of
Bangladesh. It was incorporated on 26 December, 2004 being the only government sponsored
mobile telephone Company in the country. Teletalk Bangladesh limited was established
keeping a specific role in mind. It has forged ahead and strengthened its path over the years
and achieved some feats truly to be proud of, as the only Bangladeshi mobile operator and the
only operator with 100% native technical and engineering human resource base, Teletalk
thrives to become the true peoples phone Amader Phone.

11. SWOT Analysis:


39

Strengths:

Largest Subscriber base in Bangladesh


Shareholders with strong operation capabilities
Well-recognized brand name and reputation
Strong distribution channels and customer service
Leadership in product development and non-voice services
Experienced management team
Nation-wide coverage

Good Human Resource and Infrastructure Installation all over the country
through Bangladesh Railway and Grameen Bank.

First mover advantage


Loyal Customer Base

High Ethical Standard.

Financial Soundness.

Weakness:

Comparatively higher call rates


Dependency on prepaid products
Lack of value added services within SIM
Excessive GP-BTCL calls rates
Limited FnF (Friends and Family Numbers)

Too much inside out thinking in the company.

Different departments not working together.

Inadequate interconnection with BTTB.

Sometimes a tendency to be arrogant

No long-term Distribution/Channel strategy.

High employee turnover.

Opportunities:

Focus on additional requirement.

Economic growth of Bangladesh.

40

Improved technological improvement and network coverage


Focus on CSR program
Increased socialization
Demand for new & innovative products.
Provide online banking facilities through mobile phone
Increase the brand value through IPO (Initial public Offering)

New and better interconnection agreement

Huge need for telecom services

Declining prices for handsets

Growth in other operator will give more connection.

Threats:

Aggressive marketing from other operators


Increased marketing/operating costs
Threat of Potential new entrants
Possibility of Merger among competitors
After converting in to PLC more information has to be disclosed
Increased bargaining power of the consumers

Price war.

Switching power of customer increased

More rigid government regulations.

Change of government might lead to competitors having more clout

Sabotage of installation.

Non-co-operation of government and fixed PSTN (Public Service Telephone


Network).

12. Strategic Operations and Legal Issue:


Grameenphone (GP) always endeavors to make the best possible services. However, it does
not promise any specific quality standards in services. Grameenphone does not obligate itself
to make services available in any specific area in Bangladesh or abroad within certain dates,
however, Grameenphone tries hard to offer the best service quality, though, the quality,
41

consistency and accessibility of service is not guaranteed as the same are dependent on
various technical, physical, topographical, distinctive, environment, regulatory, legal, and
such other factors. Grameenphone is not liable or responsible for any defect/insufficiency in
the same. In addition, Grameenphone is entitled to, without any liability, refuse, limit,
suspend, disable, delete, vary and/or interrupt service or any part thereof, for one or more
Subscribers, at any time, in its sole judgment, without notice and conveying any reason.
Grameenphone have the right to temporarily postpone the services in whole or in parts of its
network for repair, maintenance or circumstances beyond Grameenphone's control. In spite of
anything controlled herein, Grameenphone reserves the right to change, vary, add, substitute,
or withdraw the Web SMS service or any other services.
Grameenphone has the right to change /vary /increase / reduce the tariff charges, prices,
validity period, product/service feature and any other offers etc at any time in its sole
carefulness for any reason subject to official notification of such offers prior to giving effect
to such changes.
Grameenphone has the right to disconnect, suspend or bar the services for any breach of any
law of the land or giving fake information on the subscription form and/ or for changes in the
given information, which is not informed to Grameenphone. Grameenphone has the right to
examine or acquire any relevant document (s) possessed by the potential subscribers or
existing subscribers which may be required by Grameenphone.
The decision of Grameenphone is final in respect of this Subscription Agreement, if any
explanation of the Terms and Conditions is required.
Web SMS subscribers ensure that the contents of the SMS do not go against national defense
and/or national interest, social and religious principle of Bangladesh. And Web SMS
subscribers also guarantee that they must not use contents of SMS, which distinguish any
religion, sex or race or have negative effects on social life. Web SMS subscriber is solely
responsible for misusing the port, hacking by third party or internally, and will be responsible
for the SMS text also.

42

Grameenphone does not promise that, all messages will be delivered on time (as scheduled)
due to the service downtime/connectivity/other issues that might affect the performance of
this service and Grameenphone is not liable for any delay in broadcasting the message(s). The
result of any SMS sent for any request from a subscriber will be the responsibility of the
subscriber.
Grameenphone does not accept any responsibility for notifications that are sent or received
late, regardless of any cause whatsoever. Any authentic errors made by Grameenphone may
be corrected without customers prior permission. Grameenphone is not responsible for any
errors resulting from fraud perpetrated by any third party. Responsibilities of Grameenphone
are clearly stated in this agreement and Grameenphone takes no other responsibilities besides
these.
Subscriber/s cannot carry out any sort of advertisement & promotional activities of the said
service without former written approval from concerned Grameenphone authority. In spite of
anything contained in this contract, any information brochure, notification or any other matter
which will be published by Grameenphone regarding its Services, Service Price, Billing
policy and Credit policy will be included as the terms and conditions of this contract and both
Grameenphone and its subscriber is under obligation of the same.
Any of Grameenphones obligations under general terms & conditions will be interrupted or
delayed by force majeure or Act of Almighty, including but not limited to acts of war, riot,
civil commotion, act of State, strikes, fire, earthquake, flood or by incidence of any other
event beyond the logical control of Grameenphone, then Grameenphone shall be excused
from such performance only for such period of time as is reasonably necessary after such
occurrence has abated for the effects thereof to have dissipated. Grameenphone shall have the
right to suspend this service without any prior notice, if the customer is found in violation of
any above terms and conditions.
Grameenphone Web SMS provides access to its site to send SMS. Grameenphone will
attempt to deliver all of the SMS messages that the subscribers have addressed. Under no
circumstances can Grameenphone guarantee the delivery of messages. Grameenphone is not
responsible for any direct, indirect, incidental, special, consequential, punitive, or exemplary
damages caused by, but not limited to, delayed or failed delivery of short messages (SMS).
Sending a Text Message to someone who is not listed in Grameenphone supported network
43

list or out of their coverage area may result in message not being delivered to that person/s.
Sending messages with destination numbers in the incorrect format and not in the
International format will result in failure of message delivery. Messages not delivered after 24
hours will be deleted.
In the case a users phone is switched off or out of coverage area and not detected by the
network or SIM card or phone memory is full, the message will be stored for the maximum
validity and retried periodically according to International standards or norms until it is
delivered after which it will be deleted, if successful delivery is not possible. Customers use
of the Services is at his/her sole risk. The Services and information (as defined under
Grameenphone Web SMS Service) are provided on an "as is" and "as available" basis.
Grameenphone makes no representations, warranties, or guaranties as to the quality,
suitability, truth, accuracy or completeness of any of the Content transmitted via the Services.
Every message sent into the network is billable. There is no guarantee of actual delivery or
delivery within a specific period of time.
Any material obtained through the use of the Services is done at subscribers own discretion
and risk and s/he is solely responsible for any damage to his/her computer system or loss of
Data that results from the download of such material.
The price of each SMS is, subject to change by Grameenphone at any time. It can only be
sent to Grameenphone and djuice subscribers, subject to change by Grameenphone at any
time. Maximum of 500 SMS can be sent in a calendar day, subject to change by
Grameenphone at any time. The length of each SMS is a maximum of 160 characters, subject
to change by Grameenphone at any time. Not all special characters can be sent this is also
subject to change by Grameenphone at any time. Web SMS will not be shown in itemized
bill, subject to change by Grameenphone.
Grameenphone shall have the right to provide with any information including call
recording/details of the subscriber to the law enforcing agencies as and when required by the
law of the land

44

The SIM card and the corresponding mobile account in Grameenphones system are the sole
responsibility of the subscriber. Grameenphone is not liable for usage including
use/misuse/fraud/forgery and the like perpetrated by anyone including but not limited to the
subscriber or any third party.
The Subscriber cannot use the service(s) for any unlawful or abusive purpose, or for sending
obscene, indecent, threatening, harassing, unsolicited message or messages adversely
affecting/infringing upon national, social or economic interest, not create any damage or risk
to Grameenphone or its network and/or other Subscribers. Under such circumstances
Grameenphone shall have the right to discontinue the service.
For any Telecom offence, crime, trail, punishment, and relevant telecom matters the
Bangladesh Telecommunications Act-2001(Act No. 18 of 2001) and the Rules, Regulations
and guidelines framed there under shall be applicable and binding upon the subscribers/users.
To avail this service subscriber must have access to the necessary equipments to use the
Internet and have access to the Internet.

13. Products of Grameenphone:


14.
Grameenphones foot print covers almost 100% of the population of the country.
Grameenphone is the pioneer in providing world-class telecommunications services in
Bangladesh with innovative products and services while delivering and maintaining superior
customer experience.

13.1. Products:
Grameenphone categorizes its products into four business segments. They are Consumer
(Prepaid and Post-paid products, i.e. Smile & Xplore packages respectively), Business
(Business Solutions), Youth (djuice), and emerging markets (GP public phone and the village
phone).

Smile:

45

Smile prepaid brings the world of limitless possibilities. The services


helps gives words to every feelings, an expression to every emotion.
Smile subscribers enjoy a flat tariff to call all operators and three FnF
(Friends and Family) numbers at a competitive rate. It has the wildest recharge
options. Flexi load/ Scratch Card/Balance Transfer, and its simple recharge saves from the
hassles of rental and deposits, allowing refilling from Tk.10 to Tk1000. In addition to all that,
prepaid customers can enjoy international roaming facility and internet services from their
mobile phones.

Xplore:

Life becomes simpler with the Grameenphone xplore post-paid package. xplore provides
unlimited freedom to reach out to people. In addition the post-paid service provides 6-12%
discount on monthly bill through Thankyou bonuses. The connection come pre-activated with
EDGE, allowing easy internet access from the mobile handset.

djuice:

djuice was the first product designed to attract the youth in


Bangladesh. The brand positioned itself as a youth life-style choice.
djuice subscribers can connect with more than 3.2 million djuice
friends at a special flat rate. djuice customers enjoy the widest collection of value added
services, including the lifestyle benefit xtra-khatir. In addition, all djuice subscribers
receive other facilities enjoyed by prepaid and post-paid customers.

Business Solutions:

Business Solutions is a complete, quality business communications


service from Grameenphone-designed especially for the business
community in Bangladesh. When Business Solutions was launched, it was
for the first time that these kind services were introduced in Bangladesh.
Business solutions comes with a special service- Closed User Group (CUG)-which allows
employees of an organization to communicate between themselves at a special low rate.
Business solution offers unlimited access to the internet through the mobile handset. Also,
special rates are offered to the clients under Volume incentive discount (VID). The discount

46

amount is calculated using a two-fold matrix where company airtime usage was considered
first and discount were given to the individual accounts of the respective company based on
those figures.
At the beginning of the last year, Business Solutions, for the first time in Bangladesh, also
introduced the BlackBerry service- one of the most innovative and prestigious corporate
communication tools in Bangladesh. BlackBerry Smartphone provide Grameenphone
customers with access to a wide range of mobile applications, including email, browsing,
messaging, phone, organizers, multimedia, and a wide range of other business and lifestyle
application.

Village Phone and GP Public Phone:

The internationally acclaimed Village Phone Program started on the same day

of

commercial operations of Grameenphone in March 1997. Today, Village


Phone operators provide telecommunication services in over 58,000
villages and 64 districts of the county. The village phone program is a
unique initiative to provide telecommunication facilities in remote, rural
areas all over Bangladesh.
The Village Phone is a shared access model, which links the telecommunications sector with
the microfinance sector to enable microfinance clients, especially women, to borrow the
money needed to establish Village Phone business in rural areas. Village phone have proven
their immense potential in boosting income of poor households in rural areas, promoting
health care, development of agri-business and in the social empowerment of rural women. All
village phones were converted to prepaid products for greater convenience of the subscribers.
The Village Phone program has also been replicated in a number of countries including
Uganda and Rwanda in Africa.

13.2. Services:
The business at Grameenphone have been structured into three individual strategic business
units (SBUs)

Voice Services
Message Services
Data Services.

a. Voice Services:
47

The Voice service business provides high quality, reliable and professional voice
communication services allowing people to communicate locally and internationally across
55 countries, using economy ISD (012) connectivity. The service also provides special rates
within specific communities (Closed User Groups) and on specific Grameenphone numbers.
In addition to that, there is a special service titled Pay 4 Me, which allows subscribers at
the receiving end to accept and pay for a call.
b. Message Service:
Messaging Services offers people a much more efficient and cost-effective way of
communication. The service allows users to send Voice SMS anywhere within the country, or
a text SMS anywhere in the country as well as abroad. Another special service is the Multi
Media Service (MMS), which allows users to share pictures, animations, music, video clips,
and text messages with others. News Push is another valued service through which news
headlines can be pushed to subscribers through SMS.

c. Data Services:
Internet and Data service allows Grameenphone users to access the internet from their
handsets through Grameenphones EDGE-enabled network. The mobile data service allows
48

transfer/share of data over a mobile network, access remote servers, and access the Internet
from PC. An additional features-Mobile Fax- allows sending and receiving SMS through any
remote fax machine using any mobile phone.

14. Grameenphones post-paid:


14.1. Grameenphones Post paid Collection:
The Fund Management & Collection department is a central organ of Grameenphone Finance
department. This Department is basically committed for manipulative the post-paid air-time
collection, observing related agreements with different banks and managing the collected
fund. The basic duties and responsibilities of this unit are given below:

Monthly Post-paid collection calculation & Reconciliation.


Preparing Journal Voucher.
ERP entries
Bank Reconciliation
Preparing Top Sheet
Preparing Delay report
Solving the problem regarding Collection
Implementing online & auto debit collection facility
Monitoring & follow up Agreements with banks
Maintaining coordination with banks & BSU (Business Support Unit).

14.2. Organogram of Fund Management & Collections Department:

Additional General Manager


(AGM)

Deputy General Manager


Manager
Deputy Manager

Officer

Officer

49

From the above Organogram we can see that the Fund Management and collection
Department is headed by an Additional General Manager (AGM) then have a Deputy General
Manager (DGM) followed by a Deputy Manager (DM) with two of his subordinate Officers.

14.3. Post Paid Bill collection procedure:


Grameenphone always put emphasis on its post paid bill collection .Though the number of
post paid subscriber is much fewer compare to its total number of subscriber, but collection
from this segment responsible for a major portion of Grameenphones total revenue as in this
segment the ARPU (Average Revenue per User) and AMPU (Average Minute per User) is a
lot higher than that of the prepaid subscribers. The switching rate is also very low in case of
the post-paid users. Most of the post-paid clients are loyal consumers of Grameenphone.
Grameenphone has designed very convenient and innovative collection channel to this
important revenue generating segment and its needs. Post-paid bill collection and the entire
fund management process are managed by the Fund Management & Collections Department
under the Finance Division.

14.4. Post paid connection flow chart of Banking Unit and Fund Management
and Collection Department (FMCD):
The particular unit of Grameenphone has certain responsibilities. The finance division always
tries to co-ordinate among Banking Unit, BSU (Business Supporting Unit) and FMCD. The
working process of Grameenphone FMCD has been discussed in details below:
Description of the process flow of post paid collection:
Subscribers deposit money in different Bank branches in several payment categories based on
which bank branches send payment data to GP. Currently, there are 23 Banks and 613
branches countrywide which provide either off-line (send hardcopy statement one/ two days
later) or electronic (send end of day e-mail) or real-time (send at one-hour interval) payment
data or Auto Debit (send end of day e-mail).
According to Grameenphone (FMCD, 2010), the bill collection process can be summarized
as below:

50

Fund Management and Collection Department of Finance receive monthly statement from
each bank (mother account wise) and monthly collection reconciliation report (from
Customer Relation Software) of Banking Unit. These two reports are reconciled by FMCD.
Based on reconciled figures, for any mismatch, FMCD communicates to BU and then BU
follows up any subsequent status with bank. Whenever a subscriber deposits money against
his/her bill, it is deposited in the corresponding collection account of the bank. Bank then
transfers the money from collection account to the corresponding mother account at a regular
interval/periodically as per agreement. BU of Finance Division generates Monthly
Collection Reconciliation Report from MCRS by each bank based on the collection details
saved to a common folder where FMCD on Finance Division has access during 1st to 5th of
the following month. 2/3 days are extended for offline bank branches. Based on monthly
bank statement, Finance passes entry in the system to account for cash collection. For off-line
payment data, BU checks all the payment slips to find out any faulty slips and if found,
communicates to bank and takes necessary action. All payment information is automatically
uploaded from MCRS to BSCS through Payment Input Handler (PIH). This automated
process occurs in every 15 minutes interval. After PIH run, payment posting is given in
BSCS by transferring data to BSCS for updating subscribers account. It is an automated
process. If there is any failure in transferring data from MCRS to BSCS, the system
automatically generates e-mail and dumps the rejected files in a specified reject folder.
Concerned official of BU takes corrective actions. After corrections, the file is automatically
transferred from MCRS to BSCS through PIH. Cash collection is updated in general ledger,
information regarding barring & unbarring is gathered.

14.5. Post-paid Airtime collection management:


Fund Management & Collection Department is responsible for the monthly reporting and
reconciliation of post-paid bill collection. This whole process is done through the following
steps.
According to the Grameenphone FMCD, subscribers deposit money in different bank
branches in several payment categories based on which bank branches have agreement with
GP. Currently there are 23 banks and more than 613 branches nation-wide which provide
either offline (send hardcopy 1//2 days later) or electronic (send end of day e-mail) or realtime (send at 1 hour interval) or auto debit (send end of day e-mail) payment data. These
payments are transferred from collection account to respective banks mother account
51

regularly. Banks also prepare daily statement showing the payment details of the subscribers
and send it to Business Support Unit (BSU). BSU enters payments posting in the banking
software MCRS. All payment information is automatically uploaded from MCRS to BSCS
through Payment Input Handler (PIH) and thus the subscribers account is updated. BSU
reconciles daily bank data with MCRS data and any mismatch found is solved on daily basis
or on need basis by BSU through communication with the bank branches. After this
reconciliation BSU provides monthly reconciliation report to the FMCD. FMCD receives
BSU

GP Subscriber

Finance

Bank Branch

monthly statement from each bank (mother account wise) and reconciles it with the monthly
reconciliation report provided by BSU. If there is any mismatch, FMCD provides feedback to
BSU. BSU then communicates with respective bank-branch to resolve the identified
mismatch and necessary rectification is done in this regard and accordingly a rectified
reconciliation report is submitted to FMCD. FMCD rechecks and provides clearance of
particular reconciliation report.

52

Figure: Flow chart of post-paid airtime collection management


All the processes are checked and rechecked to maintain accuracy and efficiency in the
system. (Haque, M., personal communication, July, 2010).

14.6. Channels of post-paid Connection:


Since different post-paid subscribers have different choice and preference for depositing their
bill, FMCD has designed different channels of collection for post-paid airtime collection. The
subscribers can choose from any of these channels for paying their monthly dues according to
their choice and convenience. Previously this collection was only done through banks. For
better catering to this important segment, and to provide them with value for time,
Grameenphone first introduced a unique concept Flexi Load. Now most of the post-paid
airtime collection is collected through Flexi Load. Grameenphone also introduced scratch
cards for paying post-paid bills. Therefore, the channels of collection are:

Banks

Electronic Recharge System (ERS) Post Paid Collection


System

Scratch Cards

53

14.7. Post-paid Collection through various Banks:


Depending on the different needs of the post-paid subscribers, FMCD has designed different
modes of collection for the post-paid airtime collection through banks. The subscribers can
choose from any of these modes for paying their monthly dues according to their choice and
convenience.
Modes of Collection:
There are different modes of collection in case of banks. These modes of collection are:

Over the Counter (OTC)

Automated Teller Machine (ATM)

Auto debit facility (Both account & credit card holder)

Interactive Voice Response (IVR)

SMS Banking

Internet Banking

Over the Counter (OTC):


This is the oldest way of paying bills through banks. Subscribers go to the banks, fills up
receipts supplied by Grameenphone to the counterpart banks and pay the due amount. While
this is the oldest this way is time consuming also. Many times subscribers have to face long
queues and sometimes even miss the designated time for depositing money. Because of these
inconveniences, Over the Counter is becoming less popular day by day. (Haque, M., personal
communication, July, 2010)

Automated Teller Machine (ATM):


ATM allows the clients to pay their bills wherever they want, whenever they want. Any
subscriber having credit/debit card can avail this service. For subscribers with no account or
54

debit card, there are EASYPAY options where someone can just put the money in an
envelope and pay though machine. (Haque, M., personal communication, July, 2010)
SMS and Internet Banking:
SMS and Internet banking are the next phases of the billing system. These are the methods of
the near future. Through these methods a subscriber can pay his/her bills from literally
anywhere. Though these modes of collection are not that much in use now but hopes are high.
(Haque, M., personal communication, July, 2010).
Auto Debit:
Auto debit is another convenient method for paying bills. This method is available to both
account and credit card holders. This tool comes in handy specially while roaming. The
process of auto debit is as follows:

Interactive Voice Response (IVR):


This is an automated telephone billing system, where subscribers having account with certain
banks can pay their bills just through dialing a phone. Through phone the client can give
debit order to his/her account. (Haque, M., personal communication, July, 2010)
Bank Status:
Grameenphone has a huge banking network supporting the needs of its post-paid subscribers.
Currently there are 22 banks, one NBFI and more than 613 branches nation-wide, which
55

provide either offline (send hardcopy 1//2 days later) or electronic (send end of day e-mail) or
real-time (send at 1 hour interval) or auto debit (send end of day e-mail) or ATM (Automated
Tailored Machine) or OTC (Over the Counter) or IVR (Interactive Voice Response) or Credit
Card or Semi Online services.
Offline vs. Online/Real-time:
Banks that are offline transfer the collected money at least 4/5 days later than the actual day
of deposit, whereas online banks transfer the money on a day-to-day basis. In case of offline
banks, the received amount reaches the mother account many days later- resulting in loss of
revenue from interest. 50% of the banks have turned their system into online. However, until
all the banks switch to online or real-time mode and start transaction on a day-to-day basis,
GP will lose revenue from interest. Despite of this negative impact GP is trying to increase
the number of real time bank as many as possible for the sake of easier reconciliation process.
(Haque, M., personal communication, July, 2010)

14.8. Post-paid bill collection through ERS:


Grameenphone always looks for easier and innovative solutions to meet its customers needs.
For better catering to the important post-paid segment, and to provide them with value for
time, Grameenphone first introduced a unique concept, an electronic bill payment system
ERS, also known as Flexi load in September 2007. It allows the subscribers to pay their bills
without any hassle and inconvenience. Due to the simplicity and convenience most of the
post-paid airtime collection is collected through Flexi load now. After introducing this, ERS
system, Grameenphone had set the objective of encourage various Banks to collect their postpaid bill through ERS. Corporate people are mainly the users of post-paid connection of
Grameenphone and they do not want to switch their connection usually. (Haque, M., personal
communication, July 2010).Grameenphone also identified few pros and cons from their point
of view and Banks point of view. According to the Using ERS Platform for Post Paid Billing
through Bank Channel (2010)

56

Pros
Higher commission

Cons
Bank will look for credit

Commission in advance

Cost of fund

Secured on line reporting

ROI (Return on Investment)

Less manual process

Call money investment option

Paperless office

Regulatory issues

Easy reporting & recon

Automated Accounting system


Figure: Pros and cons from Banks Point of view
Pros

Cons

Less dependency on manual


process

Cost of fund : when selling on


Credit

Real time service/feedback

Return on Investment

Introducing Pre payment system


for Banks that eliminates cash
utilization gap

Require approval from Board

Easy reporting & reconciliation

Regulatory issues

Commission savings compare to


Flexiload
Figure: Operation Process of ERS system

14.9. Operational Process of ERS System (post-paid):

57

According to Using ERS Platform for Post Paid Billing through Bank Channel (2009), Banks
play the key role here, as the Bank is the master SIM holder. Here bank works a distributor.
Banks also are the intermediaries between Grameenphone and customers. Banks will be
registered in the ERS system as a Distributor and Bank will buy reload from Grameenphone.
Grameenphone is going to sell Reload Points to Banks on Credit made the stock available to
the branches (i.e. retailers). Bank branches (the service desk) will be registered as an
individual Retailer. A customer comes in any of the Registered Bank and asks for Post paid
payment. Payment is being collected by the Bank Branch. After that customer being Flexi
Loaded as per requested amount & number and Both Customers & Retailer account gets
updated.

14.10. Financial Reconciliation Process (Post-paid):


According to Grameenphone Fund Management and Collection Department (2010),
Grameenphone follow certain process for reconciliation with the bank. First, Post Paid Bill
Collection Using ERS Platform and data would be sent to Grameenphone server
automatically through ERS at 12 PM Points sold/ Bills Collected amount would be taken out
of Retailer Balance and would be equal to Payable to Grameenphone for Post Paid Bill
Collection. Then, Grameenphone ERS Server is going to update Customer Account
accordingly after getting confirmation from Grameenphone Credit Collection regarding
previous days collection through the Bank Branches. The basic process is Grameenphone
Credit and Collection unit is going to Reconcile and sends confirmation to ERS on Daily
Basis about Fund Transfer.
Data Flow every night
around 12.00a.m.
Registered Bank
Branch: Service Desk

GP ERS Server

Daily Automated Entry on


ERP from DWH

ERP

DWH

GP Credit Collection Unit

Monthly Entry on ERP from Credit collection


Unit
58

Figure: Grameenphone reconciliation process for ERS.


ERS Report DWH Report Online Bank Statement Sends Confirmation to ERS-
Entry on ERP Manual or Automated. In other word, the process is Monthly Reconciliation
would be done. ERS DWH ERP Online Bank Statement

14.11. Flexi load Process (Post-paid):


According Grameenphone FMCD (2009), Grameenphone keeps a mother account for its
Flexi load account from this account. This account is knows as ERS. Distributors purchase
Flexi load balance. First, the distributor submits the necessary instruments for buying
required Flexi load balance. Upon receipt and checking of bank instrument, Finance provides
logistics with the relevant money receipt. Logistics prepares the relevant order in ERS after
receiving the money receipt. Finance verifies the order, instrument information and if correct,
gives approval. This is how Flexi load is delivered to the distributors. The distributers further
sells the balance to the retailers, knows as NERO and ERO. Distributers get commission from
the retailers and in terns retailers get their share of commission from the end users the postpaid subscribers. This is how the Flexi load is delivered.

59

15. An Assessment of Post-paid Connections Current State


and Future prospect:
From September 7, 2008, Grameenphone brings its post-paid subscribers a completely new
range of attractive features so that they never miss a single precious moment of their lives.
Although in the early years the mobile services were primarily targeted to the post-paid
subscribers, prepaid services have become more and more popular in recent years. By the end
of 2003, the proportion of prepaid subscribers became more than 50% of the install base
worldwide (Lonergan, Swain, Guy, Yunus, Jackson, Mallinson, Barrabee, Minoru, Hatton,
Entner, Putcha, Hoffman, & Quigley, 2004). Prepaid subscribers pay in advance for a limited
amount of services and if they want to consume more airtime, they just refill their scratch
cards by paying service providers or their channel merchants. However, post-paid subscribers
usually have long-term contractual relationships with the service provider and pay on a
monthly basis according to the usage of services in the previous billing period (Turel &
Serenko, 2004). Corporate people are mainly the users of post-paid connection of
Grameenphone and they do not want to switch their connection usually. (Haque, M., personal
communication, July 2010)
Increasing competition among the major private telecommunication companies in
Bangladesh is pushing them to undertake various strategic and tactical measures to attract
new customers while retaining the existing customers. In this emerging market, both pre-paid
and post-paid subscribers are not exhibiting strong loyalties or commitment to any particular
service provider as they have options of switching to other service provider(s) for more
convenient and suitable service offerings. Hence, the major private telecommunication
companies have a stake high enough to consider how to create a loyal customer base that will
not be eroded even in the face of fierce competition. Therefore, the major private
telecommunication companies must realize the emergence of studying and understanding
various antecedents (viz. service quality, switching cost, trust, and customer satisfaction) of
60

the subscribers' relationship commitment to figure out ways to create a loyal customer base.
(Haque, M., personal communication, July 2010)
Prepaid subscribers and post-paid subscribers tend to develop different type of relationships
with their service provider because of dissimilar contractual obligation. According to Turel
and Serenko (2004), prepaid subscribers have low commitment relationship, whereas postpaid subscribers have high commitment relationship with the service provider. Moreover,
average switching likelihood of prepaid subscribers is usually higher than that of post-paid
subscribers; which ultimately shapes the subscribers' relationship commitment (Turel &
Serenko, 2004). Although there is a huge number of post-paid users of Grameenphone, but
now a days, Grameenphone put more emphasis on prepaid connection for the increasing
demand of prepaid connection. (Haque, M., personal communication, July 2010) Therefore,
it is important to understand how various antecedents of relationship commitment vary
between these two groups of subscribers. (Haque, M., personal communication, July 2010)
Grameenphone post-paid connection is now providing different offers like

Zero Line rent is one of the key attractions of this new basket of offers. xplore postpaid subscribers will enjoy 100% waiver on monthly Line Rent if their airtime usage
exceeds only BDT 450 per month.

If not, there is still good news. From now on, the new monthly Line Rent has been
reduced to BDT 50 from BDT 100.

The Monthly Commitment Fee of BDT 1000 will no longer be applicable for the
Xplore package, as the Monthly Line Rent is fixed at BDT 100 (excluding VAT).
This fee too will be waived if the subscribers monthly airtime usage exceeds BDT
1000.

The World Wide Web now is at customers fingertips 24/7, with the Unlimited EDGE
package at BDT 850 per month offer.

Additionally, Xplore post-paid subscribers will enjoy 1 second pulse on all calls,
except for calls to F&F numbers. Pulse to make F&F calls will be 60 seconds (from
1st min onwards).

The number of F&F numbers has also been increased. Now Xplore post-paid
subscribers can call four F&F numbers at 25 paisa per minute.

61

These new features, along with the existing convenient payment methods, exclusive
Thank You benefits and more, are expected to add greater value for subscribers and
help them stay better connected with their loved ones.

Grameenphone has introduced another convenient bill payment method for its postpaid subscribers. From now on, Grameenphone's post-paid subscribers with xplore,
Business Solution Post-paid and Grameenphone Public Phone packages can pay their
monthly bills using Grameenphone's scratch cards available in the market at
convenient locations all around the country.

After buying the scratch card, subscribers can pay the bill by calling Grameenphone's
Call Center Hotline 12112 (for Bengali) and 12122 (for English) or by sending SMS
to a special number. Automated voice instructions to complete the bill payment
process are given when a Grameenphone subscriber calls the Hotline to pay his/her
post-paid package bills with GP scratch cards. For the SMS option, a subscriber has to
send an SMS to the number 5666 writing Pay hidden number. Only the active
subscribers will be able to use the SMS option.

Calling to 121 is free for Business Solutions subscribers. Xplore and Grameenphone
Public Phone subscribers will have to pay the normal charge. A Tk. 2. (excluding
VAT) charge will be applicable for paying bill through SMS.

Grameenphone Xplore Package 1, Xplore Package 2, Business Solution Post-paid and


Grameenphone Public Phone subscribers will be able to use this service to pay their
post-paid mobile phone bills. This service will enable them to pay their bill any time
of the day without any hassle.

Xplore post-paid subscribes has discovered a whole new range of attractive offers,
that begins with the unification of the two separate packages - Xplore package 1 and
Xplore package 2 from 26th March, 2010.

A 75% discount on the existing F&F rates is being offered so that subscribers can stay
in constant touch with their loved ones. The new F&F rate for Xplore post-paid
subscribers is 25 paisa/min to 3 F&F numbers, 24 hours a day. Moreover, Xplore
subscribers can now change their F&F numbers every 30 days, instead of the existing
60 days.

Regular tariff and SMS rates have been slashed down as well. Xplore subscribers can
now enjoy a flat tariff of BDT 1.30/min for calls to any operator 24 hours a day. SMS

62

to F&F numbers is charged at BDT 0.50/sms, while SMS to any other number,
including other GP numbers, is BDT 1/sms.

Xplore subscribers will receive a 30-second pulse for the 1st minute and 15-second
pulse for each subsequent minute after that.

All new xplore subscribers will now get EDGE P3 (12am-8am) and MCA (Missed
Call Alert) subscription free for the first 3 months, along with 100 SMS free of charge
over the same period.

16. Statistical Analysis:


16.1. Objectives:
In this part, statistical analysis will be done from on the collected data on post-paid
connection of Grameenphone. The objectives are:
Broad Objective:
Analyzing the present status of the post-paid service & the future prospects of the product
based on the organizations capability and customers expectation.
Specific objective:
The research will be aimed at fulfilling the following specific objectives:

To compare the service offered by the Grameenphone in response to their customers


expectation and to find out the problems behind the post-paid service offered by the
company

To analyze whether the service is demandable for the Mobile market

To determine that is there any special feature that differentiates pre-paid service from
others and also to describe the future offers, expectations, and prospects of the
organization

Courses of action:
Focus will be on some courses of action. First, variables in the analysis will be shown and
then the data sheet on the variables on which statistical analysis will be done will be
presented. After that, descriptive statistics of the variables along with some graphical
63

representations of the variables will be displayed. With the data, estimations of population
means of each of the variables using confidence level technique will be conducted and an
analysis of the correlation among the independent variables and the dependent variable will
be conducted. Finally, F-test, Durbin Watson auto correlation test and individual t-test for
beta coefficients will be carried out and multiple linear regression model will be shown.

16.2. Variables in the analysis:


This section is going to describe what the variables are and what do they mean.

Dependent Variable:

Escalating demand for post-paid connection

Independent Variable:

Intense advertising for prepaid connection : Intense advertising for prepaid


connections affect the demand for the post-paid connection

Continuous Promotion for prepaid connection: Continuous Promotion for


prepaid connection affects the demand for the post-paid connection.

Availability of prepaid connection: Availability of prepaid connection influences


the demand for the post-paid connection

64

Flexibility (eg: Flexi load, balance transfer) : Flexibility of prepaid connection


influences the demand for the post-paid connection

To make the analysis part easier some short forms has been used during giving input. Those
shortcuts are:
ed= Eascalating demand
ai= intense advertising
cp= continuous promotion
apc= availability of prepaid connection
flx=flexibility

16.3. Basic descriptive analysis:


It is important to know some of the basic descriptive statistics of the variables that are
included in the model. Although they are not the key focus of this report as inferential
statistics are, nevertheless they are very important in knowing the central tendency of their
distribution and also the degree of dispersion. Understanding such statistics help us to
determine the skewness of the distribution of the variables and hence will help us infer more
about the distribution of the population means.
Table:1
Descriptive Statistics

ed
ai
cp
apc
flx
Valid N
(listwise)

N
120
120
120
120
120

Minimum Maximum
2.43
4.29
2.67
5.00
2.00
4.67
2.33
4.67
3.00
4.67

Mean
3.5190
4.1278
3.4417
3.9806
3.8889

Std.
Deviation
.48997
.51889
.65024
.52978
.46409

Variance
.240
.269
.423
.281
.215

120

65

Mean, standard deviation of different factors of each of the variables are showed in the table
above. The mean shows us the central tendency and the standard deviation shows us the
dispersion. For example, continuous promotion for prepaid connection variable has high
degree of dispersion due to high standard deviation compared to variables such as flexibility
or availability of prepaid connection.

16.4. Graphical Presentation of Each Variables:


16.4.1 Escalating Demand for post-paid connection:

Price of Grameenphone Post-paid package is affordable:


Table: 2
Price of GP post-paid affordable

Valid

Moderately Disagree
Neutral
Moderate Agree
Highly Agree
Total

Frequency
5
14
29
72
120

Percent
4.2
11.7
24.2
60.0
100.0

Valid
Percent
4.2
11.7
24.2
60.0
100.0

Cumulative
Percent
4.2
15.8
40.0
100.0

Interpretation:
In the table, it is shown that 60% of post-paid users of Grameenphone think that price of
Grameenphone post-paid connection is affordable. Whereas only 4.2% of Grameenphone
post-paid users think that price of Grameenphone post-paid package is not affordable.
Therefore, the statistics says that, the users of Grameenphone post-paid users do not think
about the price and they do not have complaint against price.

66

Price of Post-paid connection is affordable


4%

12%

Moderately Disagree
Neutral
24%

60%

Moderately Agree
Highly Agree

Satisfied with Grameenphone post-paid package:


Table: 3
Satisfied with GP Post-paid

Valid Moderately Disagree


Neutral
Moderately Agree
Highly Agree
Total

Frequency
30
45
28
17
120

Percent
25.0
37.5
23.3
14.2
100.0

Valid
Percent
25.0
37.5
23.3
14.2
100.0

Cumulative
Percent
25.0
62.5
85.8
100.0

Interpretation:
From the table, it can be seen that 37.5% people agree that Grameenphone post-paid package
is satisfactory in all way. 25% people are not happy with all kind of service of Grameenphone
post paid package. But the maximum percentage shows that Grameenphone post-paid
package is successful to satisfy its customers.

67

Satisfied with GP Postpaid


40

37.5

35
30

25

25

23.3

20
15
14.2

10
5
0
Moderately Disagree

Neutral

Moderately Agree

Highly Agree

Network coverage is pleasing:


Table: 4
Network Coverage pleasing

Valid

Highly Disagree
Moderately Disagree
Neutral
Moderately Agree
Total

Frequency Percent
2
1.7
44
36.7
59
49.2
15
12.5
120
100.0

Valid
Percent
1.7
36.7
49.2
12.5
100.0

Cumulative
Percent
1.7
38.3
87.5
100.0

Interpretation:
From the table, it can be seen that, 49.2% people are happy with the network coverage of
Grameenphone. Only 1.7% people said that they are not happy with the network coverage
which is a very small percentage. It shows that Grameenphones network service is pleasing
and Grameenphone post-paid users are happy with the network service of Grameenphone.

68

Network Coverage pleasing


49.2
50
45
40
35
30
25
20
15
10
5
0

36.7

12.5

M
od
er
at
el
y

Ag
re
e

eu
tr
al
N

D
is
ag
re
e
M
od
er
at
el
y

H
ig
hl
y

D
is
ag
re
e

1.7

Do not bother about the call rate:


Table: 5
Don't bother about call rate

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
7
45
54
14
120

Percent
5.8
37.5
45.0
11.7
100.0

Valid
Percent
5.8
37.5
45.0
11.7
100.0

Cumulative
Percent
5.8
43.3
88.3
100.0

Interpretation:
From the table it can be seen that 45.0% of post-paid users do not think about the call rate
while they talk over phone. Only 5.8% of post-paid users are not happy with call rate and
they really care about call rate while talking over phone. The table shows that, Call rate is not
so important for Grameenphone post paid users.

69

Don't bother about call rate

11.7

5.8

Moderately Disagree
Neutral
Moderately Agree

37.5

Highly Agree

45

Continuous advertising of prepaid package affect post-paid:


Table: 6
Continuous ad of prepaid affect post paid

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
12
12
74
22
120

Percent
10.0
10.0
61.7
18.3
100.0

Valid
Percent
10.0
10.0
61.7
18.3
100.0

Cumulative
Percent
10.0
20.0
81.7
100.0

Interpretation:
From the table it can be seen that, 61.7% people say that continuous advertisement of prepaid
package of Grameenphone may affect the escalating demand of post paid package. Only
10.0% people show different opinion regarding this issue.

70

Continuous advertising of prepaid package affect Postpaid


70
60
50
40
61.7

30
20
10
10

10

Moderately Disagree

Neutral

18.3

Moderately Agree

Highly Agree

Attractive offer of Prepaid package affect to switch from post-paid connection:


Table: 7
Attractive offer of prepaid connection affect to switch from post paid

Valid

Moderately Disagree
Neutral
Moderately Agree
Total

Frequency
63
48
9
120

Percent
52.5
40.0
7.5
100.0

Valid
Percent
52.5
40.0
7.5
100.0

Cumulative
Percent
52.5
92.5
100.0

Interpretation:
From the table, it can be seen that 52.5% of Grameenphone post paid users says that they are
not agree with the term that different type of attractive offer of prepaid connection make
people think of changing their post paid connection. Only 7.5% people think that attractive
offer of prepaid connection sometimes make them think of switching their current post paid
connection. The table shows that post paid users of Grameenphone will not switch their
current connection package even though they might be offer with attractive offer of
Grameenphone prepaid package.

71

active offer of prepaid connection affect to switch from post


7.5

Moderately Agree

40

Neutral

52.5

Moderately Disagree

10

20

30

40

50

60

Dont bother about the attractive offer of other packages while bought post paid
package:
Table: 8
Don't bother about attractive package of Prepaid

Valid

Frequency
Moderately Disagree 18
Neutral
38
Moderately Agree
61
Highly Agree
3
Total
120

Percent
15.0
31.7
50.8
2.5
100.0

Valid Percent
15.0
31.7
50.8
2.5
100.0

Cumulative
Percent
15.0
46.7
97.5
100.0

Interpretation:
From the table, it can be seen that 50.8% of Grameenphone post paid users says that they are
not agree with the term that they thought of attractive of Grameenphone prepaid package
while they bought their post paid connection. Only 15.0% people think of offer of prepaid
connection. The table shows that, post paid users of Grameenphone attractive offer of prepaid
package hardly attract post paid users while they bought their post-paid connection.

72

Don't bother about attractive package of Prepaid


2.5

15
Moderately Disagree
Neutral
Moderately Agree
Highly Agree

50.8
31.7

Availability of Prepaid connections may hamper the demand of post-paid


connection :
Table: 9
Availability of prepaid connection hampers demand of post-paid

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
7
45
54
14
120

Percent
5.8
37.5
45.0
11.7
100.0

Valid
Percent
5.8
37.5
45.0
11.7
100.0

Cumulative
Percent
5.8
43.3
88.3
100.0

Interpretation:
From the table, it can be seen that 45.0% people agree that availability of prepaid connection
may hamper the demand of post-paid connections. Only 5.8% thinks different. 37.5% people
were neutral. But majority of the participation of post paid users shows that, availability of
prepaid connection may hamper the demand of post paid connection.

73

vailability of prepaid connection hampers demand of postpa

5.8

11.7

Moderately Disagree
37.5

45

Neutral
Moderately Agree
Highly Agree

Flexibility of Grameenphone prepaid package might lead to switch post-paid:


Table: 10
Flexibility of prepaid might lead to switch to prepaid from post-paid

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
12
12
74
22
120

Percent
10.0
10.0
61.7
18.3
100.0

Valid
Percent
10.0
10.0
61.7
18.3
100.0

Cumulative
Percent
10.0
20.0
81.7
100.0

Interpretation:
From the table, it can be seen that, 61.7% are agree with the term that Flexibility (Flexi load,
Balance transfer, Available Prepaid Card) of Grameenphone Prepaid package sometimes
make people think of changing their post-paid connection. Only 10.0% shows some different
opinion. So, Flexibility of prepaid connection may hamper the escalating demand for postpaid connection of Grameenphone.

74

Flexibility of prepaid lead to switch to prepaid from postpaid


61.7

70
60
50
40
30

18.3

20

10

10

10
0
Moderately Disagree

Neutral

Moderately Agree

Highly Agree

16.4.2. Intense Advertising for prepaid connection:

Advertisement of Grameenphone prepaid connection is more noticeable than postpaid connection:


Table: 11
Prepaid ad more noticeable

Valid

Frequency
Neutral
7
Moderately Agree 71
Highly Agree
42
Total
120

Percent
5.8
59.2
35.0
100.0

Cumulative
Valid Percent
Percent
5.8
5.8
59.2
65.0
35.0
100.0
100.0

Interpretation:
From the table it can be seen that, 35.0% people highly agree that advertisement of
Grameenphone prepaid connection is more noticeable than post-paid connection. 59.2%
people moderately with the term. None agrees that advertisement of post-paid connection is
noticeable. It shows that Grameenphone is more emphasizing on advertisement of prepaid
connection than post-paid connection.
75

Prepaid ad more noticeable


59.2
60
50
35

40
30
20
5.8

10
0

Neutral

Moderately Agree

Highly Agree

Grameenphone is putting more importance to advertisement of prepaid:


Table: 12
GP is putting more emphasis on prepaid ad

Valid

Neutral
Moderately Agree
Highly Agree
Total

Frequency
16
63
41
120

Percent
13.3
52.5
34.2
100.0

Cumulative
Valid Percent
Percent
13.3
13.3
52.5
65.8
34.2
100.0
100.0

Interpretation:
From the table, it can be seen that 34.2% of Grameenphone post-paid users highly agrees that
Grameenphone is putting more emphasis on advertisement of Grameenphone prepaid
connection than post-paid connection. 52.5% moderately agrees with the term. It shows that
Grameenphone is more emphasizing on advertisement of prepaid connection than post-paid.

76

GP is putting more emphasis on prepaid ad

34.2

Neutral

Moderately Agree
52.5

Highly Agree
13.3

Billboard of Post-paid package of Grameenphone is hardly found:


Table:13
Billboard of post-paid is hardly found

Valid

Highly Disagree
Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
1
4
5
76
34
120

Percent
.8
3.3
4.2
63.3
28.3
100.0

Valid
Percent
.8
3.3
4.2
63.3
28.3
100.0

Cumulative
Percent
.8
4.2
8.3
71.7
100.0

Interpretation:
From the table, it can be seen that 28.3% of Grameenphone post-paid users highly agrees that
Billboard of post-paid package of Grameenphone is hardly found. 63.3% moderately agrees
with the term. It shows that Grameenphone is more emphasizing on advertisement of prepaid
connection than post-paid connection through billboard.

77

Billboard of postpaid is hardly found

28.3

Highly Agree

63.3

Moderately Agree

Neutral

4.2

Moderately Disagree

3.3

0.8

Highly Disagree
0

10

20

30

40

50

60

70

Grameenphone Prepaid TVC is more visible than Post-paid TVC:


Table: 14
More TVC of Prepaid then post-paid

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Valid
Frequency Percent Percent
13
10.8
10.8
3
2.5
2.5
52
43.3
43.3
52
43.3
43.3
120
100.0
100.0

Cumulative
Percent
10.8
13.3
56.7
100.0

Interpretation:
From the table, it can be seen that 43.3% of Grameenphone post-paid users highly agrees that
TVC of post-paid package of Grameenphone is hardly seen. 43.3% moderately agrees with
the term. It shows that Grameenphone is more emphasizing on advertisement of prepaid
connection than post-paid connection through TVC.

78

More TVC of Prepaid then postpaid

43.3

Moderately Disagree
Neutral
Moderately Agree
Highly Agree

2.5
10.8

43.3

Notice Grameenphone Advertisement:


Table: 15
Notice GP ads

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
21
42
50
7
120

Percent
17.5
35.0
41.7
5.8
100.0

Valid
Percent
17.5
35.0
41.7
5.8
100.0

Cumulative
Percent
17.5
52.5
94.2
100.0

Interpretation:
From the table it can be seen that, only 5.8% people highly agree that they notice and try to
remember. 17.5% people disagree and 41.7% people moderately agree that they notice
Grameenphone advertisement.

79

Notice GP ads
45
40
35
30
25
41.7

20
35
15
10

17.5

5.8

0
Moderately Disagree

Neutral

Moderately Agree

Highly Agree

Grameenphone Advertisement dont influence Post-paid users:


Table: 16
Ads don't influence to switch to prepaid from post-paid

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
8
22
59
31
120

Percent
6.7
18.3
49.2
25.8
100.0

Valid
Percent
6.7
18.3
49.2
25.8
100.0

Cumulative
Percent
6.7
25.0
74.2
100.0

Interpretation:
From the table, it can be seen that 49.2% people says that, any kind of Advertisement do not
influence them to change my post paid connection. Only 6.7% people show different opinion.
25.8% of Grameenphone post-paid users highly agree that any kind of advertisement do not
influence them to change my post-paid connection.
80

Ads don't influence to switch to prepaid from postpaid


Highly Agree

25.8

Moderately Agree

49.2

Neutral

18.3

Moderately Disagree

6.7

10

20

30

40

50

60

16.4.3. Continuous Promotion for Prepaid Connection:

Post paid users know about the current post-paid offer:


Table: 17
I know current post-paid offer

Valid

Highly Disagree
Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Valid
Frequency Percent
Percent
7
5.8
5.8
37
30.8
30.8
8
6.7
6.7
47
39.2
39.2
21
17.5
17.5
120
100.0
100.0

Cumulative
Percent
5.8
36.7
43.3
82.5
100.0

Interpretation:
From the table, it can be seen that 39.2% of Grameenphone post paid users knows about the
current offer of Grameenphone post-paid offer. Only 6.5% people highly disagree. Again,
30.8% people do not know about the current promotion of Grameenphone.
81

Post paid users know about the current postpaid offer


39.2
40
30.8

35
30
25

17.5

20
15

6.7

5.8

10
5

Hi
gh
ly
Ag
re
e

Ag
re
e

M
od
er
ate
ly

eu
tra
l
N

Hi
gh
ly
Di
sa
gr
ee
M
od
er
ate
ly
Di
sa
gr
ee

I may not change post-paid if prepaid comes with more attractive package:
Table: 18

I may change post-paid if prepaid comes with more attractive package

Valid

Highly Disagree
Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
11
24
27
34
24
120

Percent
9.2
20.0
22.5
28.3
20.0
100.0

Valid
Percent
9.2
20.0
22.5
28.3
20.0
100.0

Cumulative
Percent
9.2
29.2
51.7
80.0
100.0

Interpretation:
From the table, it can be seen that, 20% people says that they will not change their current
post-paid package even though Grameenphone comes with attractive package of prepaid
connection. Again, 20% people said different words. 28.3% people moderately agree with the
term. It shows that, continuous promotion of Grameenphone prepaid influence post-paid
users to change their current connection.
82

Not switch postpaid if prepaid offers more attractive package


28.3

30
25

22.5

20

20

20
15

9.2

10
5

Ag
re
e
H
ig
hl
y

Ag
re
e

M
od
er
at
el
y

eu
tr
al
N

D
is
ag
re
e

M
od
er
at
el
y

H
ig
hl
y

D
is
ag
re
e

Care about connectivity , not price:

Table: 19
Care about connectivity not price

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
19
35
45
21
120

Percent
15.8
29.2
37.5
17.5
100.0

Valid
Percent
15.8
29.2
37.5
17.5
100.0

Cumulative
Percent
15.8
45.0
82.5
100.0

Interpretation:
From the table, it can be seen that, 37.5% people says that they dont care about the price or
call rate of Grameenphone post-paid package as long Grameenphone provides better
connectivity. Only 15.8% Grameenphone post-paid users moderately disagree with the term.

83

Care about connectivity not price

17.5

Moderately Disagree

15.8

Neutral
Moderately Agree

37.5

29.2

Highly Agree

16.4.4. Availability of Prepaid Connection:

Availability of prepaid connection make think to switch from post paid:


Table: 20

Availability of prepaid connection make think to switch from post paid

Valid

Highly Disagree
Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
6
53
15
41
5
120

Percent
5.0
44.2
12.5
34.2
4.2
100.0

Valid
Percent
5.0
44.2
12.5
34.2
4.2
100.0

Cumulative
Percent
5.0
49.2
61.7
95.8
100.0

Interpretation:
From the table, it can be seen that 44.2% people disagree that availability of prepaid
connection make them think of switching their current post-paid connection to prepaid
connection. Only 5.0% people highly agree that availability of prepaid connection make them
think of switch from post-paid connection.
84

Availability inspires to switch from post paid


4.2

Highly Agree

34.2

Moderately Agree
12.5

Neutral

44.2

Moderately Disagree
5

Highly Disagree
0

10

15

20

25

30

35

40

45

Prepaid is available in everywhere but post-paid is not

Table: 21
Prepaid is available in everywhere but post-paid is not

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
16
18
60
26
120

Percent
13.3
15.0
50.0
21.7
100.0

Valid
Percent
13.3
15.0
50.0
21.7
100.0

Cumulative
Percent
13.3
28.3
78.3
100.0

Interpretation:
From the table, it can be seen that 50.0% of post-paid users of Grameenphone agree that,
Grameenphone Prepaid package can be found anywhere, but post-paid package cannot be. It
shows that Grameenphone is putting more emphasis on Grameenphone prepaid package than
post-paid package.

85

Prepaid is available in everywhere but postpaid is not


50
50
45
40
35
30

21.7

25
20

15

13.3

15
10
5
0
Moderately Disagree

Neutral

Moderately Agree

Highly Agree

Low price make prepaid more available

Table: 22
Low price make prepaid more available

Valid

Neutral
Moderately Agree
Highly Agree
Total

Frequency
11
82
27
120

Valid
Percent Percent
9.2
9.2
68.3
68.3
22.5
22.5
100.0
100.0

Cumulative
Percent
9.2
77.5
100.0

Interpretation:
From the table, it can be seen that 68.3% of Grameenphone post-paid users agrees that Low
Price of Prepaid connection make it more available than post-paid connection. 22.5% of
Grameenphone post-paid users highly agree with the term.

86

Low price make prepaid more available

9.2
22.5

Neutral

Moderately Agree

Highly Agree

68.3

If post-paid is available everywhere user will not switch to prepaid

Table: 23
If post-paid is available everywhere user will not switch to prepaid

Valid

Highly Disagree
Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
3
8
30
56
23
120

Valid
Percent Percent
2.5
2.5
6.7
6.7
25.0
25.0
46.7
46.7
19.2
19.2
100.0
100.0

Cumulative
Percent
2.5
9.2
34.2
80.8
100.0

Interpretation:
From the table it can be seen that, 46.7% of Grameenphone post-paid package agrees that if
post-paid is available everywhere user will not switch to prepaid connection. Only 2.5%
people disagree with the term. It shows that if Grameenphone make post paid connection
87

more available, people who think of changing their connection or thinking of buying new
connection, will go for post-paid connection.

If postpaid is available everywhere user will not switch to prepaid


46.7

50
45
40
35
30
25
20
15
10
5
0

25
19.2

Hi
gh
ly
Ag
re
e

Ag
re
e
er
ate
ly

M
od

eu
tra
l

6.7

Hi
gh
ly
Di
sa
gr
ee
M
od
er
ate
ly
Di
sa
gr
ee

2.5

16.4.5. Flexibility:

Never face bill related problem

Table: 24
Never face bill related problem

Valid

Moderately Disagree
Neutral
Moderately Agree
Highly Agree
Total

Frequency
7
12
71
30
120

Percent
5.8
10.0
59.2
25.0
100.0

Valid
Percent
5.8
10.0
59.2
25.0
100.0

Cumulative
Percent
5.8
15.8
75.0
100.0

Interpretation:

88

From the table it can be seen that, 59.2% people agree that they never face any problem
related to bill. Only 5.8% people show different opinion. 25.0% of Grameenphone post-paid
users are happy with the connection and they said they never face any bill related problem.

Never face bill related problem

5.8
10

25

Moderately Disagree
Neutral
Moderately Agree
Highly Agree

59.2

People who want to limit usage, use prepaid

Table: 25
People want to limit usage use prepaid

Valid

Frequency
Neutral
26
Moderately Agree 68
Highly Agree
26
Total
120

Percent
21.7
56.7
21.7
100.0

Cumulative
Valid Percent
Percent
21.7
21.7
56.7
78.3
21.7
100.0
100.0

Interpretation:
From the table, it can be seen that 56.7% people agree with the term that people who want to
limit their usage usually use prepaid connection. Nobody disagrees with this term. Therefore,
it shows that post-paid users do not think of usage.

89

People who want to limit


Mo usage, use prepaid
Hi
ghl
Ne
de
utr
rat
y
al
ely
Ag
21.7
21.7 ree
56.7 Ag
ree

16.5. ANOVA Test:


Hypothesis 1:
Null Hypothesis, Ho= Intense advertising for prepaid connections do not affect the demand
for the post-paid connection.
Alternative hypotheses, H1 = Intense advertising for prepaid connections affect the demand
for the post-paid connection.
Table-1
ANOVA
ed
Sum of
Squares
Between Groups 12.772
Within Groups
15.796
Total
28.569

df
10
109
119

Mean Square
F
1.277
8.813
.145

Sig.
.000

The above ANOVA table reveals that the F value (8.813) is identically greater than the
significant value (.000). It indicates that our hypothesis is correct. We reject the null
hypothesis. So, intense advertising for prepaid connections affect the demand for the postpaid connection.
Decision: There is a strong and significant relationship escalating demand for post-paid
connection and intense advertising for prepaid connections.

90

The relationship between these two variables is also shown by curve estimation in the
following
i4
a
.5
2
0
.0
3
0
.5
3
0
.04
.5
0
.0
5
2
0
.5
3
.0
3
0
.5
4
.0
4
0
.5
r
a
e
in
O
s
b
e
v
d
e
dL

Therefore, from the above graph, it can be said that there is a relationship between these two
variables. Intense advertising for prepaid connections affects the demand for the post-paid
connection.
Hypothesis 2:
Null hypothesis, Ho= Continuous Promotion for prepaid connections do not affect the
demand for the post-paid connection.
Alternative hypothesis, H1 = Continuous Promotion for prepaid connections affect the
demand for the post-paid connection

Table-2
ANOVA
ed
Sum of
Between Groups
Within Groups

Squares
19.506
9.063

df
20
99

Mean Square
F
.975
10.653
.092

Sig.
.000

91

Total

28.569

119

The above ANOVA table reveals that the F value (10.653) is identically greater than the
significant value (.000). It indicates that our hypothesis is correct. We reject the null
hypothesis. So, Continuous Promotion for prepaid connections affects the demand for the
post-paid connection
Decision: There is a strong and significant relationship between escalating demand for postpaid connection and continuous promotion for prepaid connections.
The relationship between these two variables is also shown by curve estimation in the
following:
c
p
.02
2
.5
0
.0
3
0
.5
3
.04
4
.5
0
.0
5
2
0
.5
.0
3
0
.5
3
.0
4
in
rs
a
e
0 e
.5
4
b
O
v
d
dL

From the above graph, it can be said that there is a positive relationship between these two
variables. Continuous Promotion for prepaid connections affects the demand for the post-paid
connection
Hypothesis 3:
Null hypothesis, Ho= Availability of prepaid connection does not influence the demand for
the post-paid connection
92

Alternative hypothesis, H1 = Availability of prepaid connection influences the demand for the
post-paid connection
Table-3
ANOVA
ed
Sum of
Between Groups
Within Groups
Total

Squares
5.701
22.868
28.569

df
9
110
119

Mean Square
F
.633
3.047
.208

Sig.
.003

The above ANOVA table reveals that the F value (3.047) is identically greater than the
significant value (.003). It indicates that our hypothesis is correct. We reject the null
hypothesis. Therefore, Availability of prepaid connection influences the demand for the postpaid connection
Decision: There is a strong and significant relationship between escalating demand for postpaid connections and availability of prepaid connections.
The relationship between these two variables is also shown by curve estimation in the
following:

c
p
.0
2
0
0
.5
2
.0a
3
04
.5
3
.0
05
.5
4
.0
.5
2
0
.0
3
0
.5
3
0
.0
4
0
a
e
in
rv
4
.5
0
s
b
O
e
d
e
dL

93

Therefore, from the above graph, it can be said that there is a positive relationship between
these two variables, escalating demand for post-paid connection and availability of prepaid
connection. So, availability of prepaid connections affects the demand for the post-paid
connection.
Hypothesis 4:
Null hypothesis, Ho= Flexibility of prepaid connection does not influence the demand for the
post-paid connection
Alternative hypothesis, H1 = Flexibility of prepaid connection influences the demand for the
post-paid connection
Table-4
ANOVA
ed
Sum of
Between Groups
Within Groups
Total

Squares
11.377
17.192
28.569

df
9
110
119

Mean Square
F
1.264
8.088
.156

Sig.
.000

The above ANOVA table reveals that the F value (8.088) is identically greater than the
significant value (.000). It indicates that our hypothesis is correct. We reject the null
c
p
.0
2
0
0
.5
2
.0a
3
04
.5
3
.0
05
.5
4
.0
.5
2
0
.0
3
0
.5
3
0
.0
4
0
a
e
in
rv
4
.5
0
s
b
O
e
d
e
dL

hypothesis. Therefore, Flexibility of prepaid connection influences the demand for the postpaid.
Decision: There is a strong and significant relationship between escalating demand for postpaid connections and flexibility of prepaid connections.
The relationship between these two variables is also shown by curve estimation in the
following:

94

From the above graph, it can be said that there is a negative/declining relationship between
these two variables.

16.6. Population Correlation:


The following table shows the Pearson product-moment correlation coefficient between all
the variables included in my data sheet. In statistics, the Pearson product-moment correlation
coefficient (sometimes referred to as the MCV or PMCC, and typically denoted by r) is a
common measure of the correlation between two variables X and Y .However the focus is
only the correlation between the dependent variable Escalating demand for post-paid
connection and the other 4 variables.
Table-1
Correlations
ed

ai

cp

apc

flx
95

ed

ai

cp

apc

flx

Pearson Correlation
Sig. (2-tailed)
N

1
.

-.003
.971

.707(**)
.000

.099
.280

-.179
.051

120

120

120

120

120

Pearson Correlation
Sig. (2-tailed)
N

-.003
.971

1
.

-.153
.094

.213(*)
.020

-.100
.279

120

120

120

120

120

Pearson Correlation
Sig. (2-tailed)
N

.707(**)
.000

-.153
.094

1
.

.052
.571

-.292(**)
.001

120

120

120

120

120

Pearson Correlation
Sig. (2-tailed)
N

.099
.280

.213(*)
.020

.052
.571

1
.

.071
.442

120

120

120

120

120

-.179

-.100

.071

.442
120

.
120

Pearson Correlation

-.292(**

)
Sig. (2-tailed)
.051
.279
.001
N
120
120
120
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).

Correlation values are ranged between -1 to +1. Negative one indicates perfectly negative
correlation, which means the variables move in opposite direction and positive one indicates
perfectly positive correlation, which means the factors move in same direction. A correlation
of zero indicates no linear relationship between the two variables but there might or might not
be non-linear relationship.
It shows the correlation between the only dependent variable, credit card sales and the other
seven variables. This is important as the correlation will play a factor in the linear regression
model.
Interpretation of Correlation:
The correlation between the independent variables and the dependent variables shows that
continuous promotion for prepaid connection have positive correlation with escalating
demand for post-paid connection and other variables have negative correlation with
escalating demand for post paid connection. Only continuous promotion for prepaid
connection have very high correlation with escalating demand for post-paid connection,
which proves one point that these variable play a very important role in the demand for post96

paid connection. All the other variables have low to weak correlation, which means they
slightly or moderately influence escalating demand for post-paid connection in either positive
or negative way.
In short, the correlation just shows the strength and direction but does not actually quantify
by how much those variables will influence the dependent variable. For that, we have to go
now to multiple linear regression models.
But for now, correlation shows that continuous promotion for prepaid connection have
statistically strong influence on escalating demand for post-paid connection.

Correlation between ED and AI:

Null Hypothesis, Ho=Population correlation between Intense advertising for prepaid


connections and demand for the post-paid connection is zero.
Alternative hypotheses, H1 = Population correlation between Intense advertising for prepaid
connections and demand for the post-paid connection is not zero.

Table-1
Correlations

ed

ai

Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N

ed
1
.
120
-.003
.971
120

ai
-.003
.971
120
1
.
120

Decisions:
Since the p-value of the correlation test is .971 which is greater than =.05, the population
correlation is statistically insignificant and hence we do not reject the null hypothesis and
discard the alternative hypothesis that the population correlation is not zero.
97

Correlation between ED and CP:

Null hypothesis, Ho= Population correlation between Continuous Promotion for prepaid
connections and the demand for the post-paid connection is zero.
Alternative hypothesis, H1 = Population correlation between Continuous Promotion for
prepaid connections and the demand for the post-paid connection is not zero.

Table-2
Correlations
ed
ed
Pearson Correlation
1
Sig. (2-tailed)
.
N
120
cp
Pearson Correlation
.707(**)
Sig. (2-tailed)
.000
N
120
** Correlation is significant at the 0.01 level (2-tailed).

cp
.707(**)
.000
120
1
.
120

Decisions:
Since the p-value of the correlation test is .000 which is less than =.05, the population
correlation is statistically significant and hence we reject the null hypothesis and accept the
alternative hypothesis that the population correlation is not zero.

Correlation between ED and APC:

98

Null hypothesis, Ho= Population correlation between Availability of prepaid connection and
the demand for the post-paid connection is zero.
Alternative hypothesis, H1 = Population correlation between Availability of prepaid
connection and the demand for the post-paid connection is not zero.
Table-3
Correlations

ed
apc

Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N

ed
1
.
120
.099
.280
120

apc
.099
.280
120
1
.
120

Decisions:
Since the p-value of the correlation test is .280 which is greater than =.05, the population
correlation is statistically insignificant and hence we do not reject the null hypothesis and
discard the alternative hypothesis that the population correlation is not zero.

Correlation between ED and FLX:

Null hypothesis, Ho= Population correlation between flexibility of prepaid connection and
the demand for the post-paid connection is zero.
Alternative hypothesis, H1 = Population correlation between flexibility of prepaid connection
and the demand for the post-paid connection is not zero.
Table-4
Correlations
ed
flx

Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N

ed
1
.
120
-.179
.051
120

flx
-.179
.051
120
1
.
120

Decisions:
99

Since the p-value of the correlation test is .051 which is greater than =.05, the population
correlation is statistically insignificant and hence we do not reject the null hypothesis and
discard the alternative hypothesis that the population correlation is not zero.

16.7. POPULATION MEAN TEST:


Estimation methods will be used to identify the population mean of the 5 variables that are
included in the statistical analysis.
Justification of using T-test instead of Z-test: As the variance of population is not known,
one-sample t test have been used instead of z-test to estimate the population means using
95% confidence level. The t-test is perfect over the z-test in this case since it cannot be
assumed that the population distribution is also normal.

Estimation of population mean of escalating


demand for post-paid connection:
Hypothesis Testing:
Null Hypothesis H0 : Population Mean of escalating demand for post-paid connection is 3.

100

Alternative Hypothesis H1: Population Mean of escalating demand for post-paid connection
is not 3.
From the data sheet, data of escalating demand for post-paid connection has been inserted.
With the 95% confidence interval level and use of t distribution, statistical output from SPSS
is shown below:
Table-1
One-Sample Test
Test Value = 3

t
11.604

ed

Sig. (2-tailed)

df
119

.000

95% Confidence
Interval of the
Difference
Lower
Upper
.4305
.6076

Since the p-value of the t-test is .000 which is less than = .05, the null hypothesis is rejected
and the alternative hypothesis is accepted that shows population mean is not equal to 3.
There is enough evidence to indicate that the population mean of escalating demand for post
paid connection is not equal to 3.

95% Confidence Interval of the Difference


Lower
Upper
.4305

.6076

Estimation of Mean by using Confidence Interval:


The results show that the population mean of escalating demand for post-paid connection is
estimated to lie in the range of .4305< < .6076 with 95% confidence level.

Estimation of intense advertising of prepaid connection Population Mean

Null Hypothesis H0 : Population Mean of intense advertising of prepaid connection is equal


to 4
Alternative Hypothesis H1: Population Mean of intense advertising of prepaid connection is
not equal to 4.
101

Using 95% confidence interval level and using t distribution, statistical output from SPSS by
using the values from the data sheet are shown below:
Table-2
One-Sample Test
Test Value = 4

ai

t
2.698

Sig. (2-tailed)

df
119

.008

95% Confidence
Interval of the
Difference
Lower
Upper
.0340
.2216

Decision: Since the p-value of the t-test is .008 which is less than = .05, null hypothesis is
rejected and the alternative hypothesis is accepted that means population mean is not equal to
4.
95% Confidence Interval of the Difference
Lower
Upper
.0340

.2216

Estimation of Mean by using Confidence Interval:


The results show that the population mean of escalating demand for post-paid connection is
estimated to lie in the range of .0340< < .2216 with 95% confidence level.

Estimation of Continuous Promotion of Prepaid Connection Population Mean:

Null Hypothesis H0 : Population Mean of Continuous Promotion of Prepaid Connection is 3.


Alternative Hypothesis H1: Population Mean of Continuous Promotion of Prepaid
Connection is not equal to 3
From the data sheet, the data of continuous promotion of prepaid Connection has been
inserted and with 95% confidence interval level and using t distribution, statistical output
from SPSS is shown below:

102

Table-3
One-Sample Test
Test Value = 3

t
7.441

cp

Sig. (2-tailed)

df
119

.000

95% Confidence
Interval of the
Difference
Lower
Upper
.3241
.5592

Decision: Since the p-value of the t-test is .000 which is less than = .05, null hypothesis is
rejected and the alternative hypothesis is accepted that means population mean is not equal to
3.

95% Confidence Interval of the Difference


Lower
Upper
.3241

.5592

Estimation of Mean by using Confidence Interval:


The results show that the population mean of escalating demand for post-paid connection is
estimated to lie in the range of .3241< < .5592 with 95% confidence level.

Estimation of Availability of Prepaid Connection Population Mean

Null Hypothesis H0 : Population Mean of Availability of Prepaid Connection is 3


Alternative Hypothesis H1: Population Mean of Availability of Prepaid Connection is not 3.
With the use of 95% confidence interval level and t distribution, statistical output from SPSS
by using the values from the data sheet is shown below:
Table-4
One-Sample Test
Test Value = 3

df

Sig. (2-tailed)

95% Confidence
Interval of the
Difference
Lower
Upper
103

apc

20.275

119

.000

.8848

1.0763

Decision: Since the p-value of the t-test is .000 which is less than = .05, null hypothesis is
rejected and the alternative hypothesis is accepted that means population mean is not equal to
3.

95% Confidence Interval of the Difference


Lower
Upper
.8848

1.0763

Estimation of Mean by using Confidence Interval:


The results show that the population mean of escalating demand for post-paid connection is
estimated to lie in the range of .8848< < 1.0763 with 95% confidence level.

Estimation of Flexibility Population Mean

Null Hypothesis H0 : Population Mean of flexibility is 3


Alternative Hypothesis H1: Population Mean of flexibility is not 3
From the data sheet, the data of debit card sales has been inserted and with the 95%
confidence interval level and using t distribution, the statistical output from SPSS is shown
below:
Table-5
One-Sample Test

df

Test Value = 3
Sig. (2-tailed)

95% Confidence
Interval of the
Difference
104

flx

20.982

119

.000

Lower
.8050

Upper
.9728

Decision: Since the p-value of the t-test is .000 which is less than = .05, null hypothesis is
rejected and the alternative hypothesis is accepted that means population mean is not equal to
3.

95% Confidence Interval of the Difference


Lower
Upper
.8050

.9728

Estimation of Mean by using Confidence Interval:


The results show that the population mean of escalating demand for post-paid connection is
estimated to lie in the range of .8050< < .9728 with 95% confidence level.

16.8. CROSS TABULATIONS & CHI-SQUARE ANALYSIS:

The following section brings in an elaborate chi-square analysis. Both null (Ho) and
alternative (H1) hypothesis has been constructed, null hypothesis holding the statement that
there is no association between the considered variables and alternative hypothesis holding
the statement that there is association between the considered dependent and independent
variable. Following are the dependent and independent variables that we have taken to make
cross tabulations with a combination of one dependent and one independent variable at a
time. In only one case we have considered dependent as an independent variable.
Dependent Variables:
Escalating demand for post-paid connection
Independent Variable:
105

Intense advertising for prepaid connection

Continuous promotion for prepaid connection

Availability of prepaid connection

Flexibility

For conducting the cross-tabulation analysis, a confidence interval is assumed to be 95% and
therefore the significance level is 5%.

Escalating demand for post-paid connection and Intense advertising for prepaid
connection:

Hypothesis Testing
Null Hypothesis H0: The variables are independent.
Alternative Hypothesis H1: The variables are dependent

Table-1
Chi-Square Tests

Asymp.
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases

Value
623.763(a)
334.290
.001

df
210
210
1

Sig. (2-sided)
.000
.000
.971

120

a 240 cells (99.2%) have expected count less than 5. The minimum expected count is .01.
Here, the value of Chi-Square (2) = 623.763, and P-value is 0.000 < 0.05. So, its
significant, and the cross-tabulation has a good result. Therefore, the null hypothesis is
rejected and the alternative is accepted. In other words, the variables, Escalating demand for
post-paid connection and Intense advertising for prepaid connection are dependent.
106

Escalating demand for post-paid connection and Continuous promotion for prepaid
connection:

Hypothesis Testing
Null Hypothesis H0: The variables are independent.
Alternative Hypothesis H1: The variables are dependent
Table-2
Chi-Square Tests
Asymp.
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases

Value
1205.362(a)
438.290
59.462
120

df
420
420
1

Sig. (2-sided)
.000
.259
.000

a 461 cells (99.8%) have expected count less than 5. The minimum expected count is .01.
Here, the value of Chi-Square (2) = 1205.362, and P-value is 0.000 < 0.05. So, it is
significant, and the cross-tabulation has a good result. Therefore, the null hypothesis is
rejected and the alternative hypothesis is accepted. In other words, the variables, Escalating
demand for post-paid connection and Continuous promotion for prepaid connection are
dependent.

Escalating demand for post-paid connection and availability for prepaid


connection:

Hypothesis Testing
Null Hypothesis H0: The variables are independent.
Alternative Hypothesis H1: The variables are dependent
Table-3
107

Chi-Square Tests
Value
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases

df

537.657(a)
305.940
1.174
120

Asymp.
189
189
1

Sig. (2-sided)
.000
.000
.279

a 218 cells (99.1%) have expected count less than 5. The minimum expected count is .01.
Here, the value of Chi-Square (2) = 537.657, and P-value is 0.000 < 0.05. So, it is
significant, and the cross-tabulation has a good result. Therefore, the null hypothesis is
rejected and the alternative hypothesis is accepted. So the variables, escalating demand for
post-paid connection and availability for prepaid connections are dependent.

Escalating demand for post-paid connection vs. flexibility of prepaid connection:

Hypothesis Testing
Null Hypothesis H0: The variables are independent.
Alternative Hypothesis H1: The variables are dependent
Table-4
Chi-Square Tests
Asymp.
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases

Value
402.752(a)
260.330
3.809
120

df
189
189
1

Sig. (2-sided)
.000
.000
.051

a 218 cells (99.1%) have expected count less than 5. The minimum expected count is .01.

108

Here, the value of Chi-Square (2) = 402.752, and P-value is 0.000 < 0.05. So, its
significant, and the cross-tabulation has a good result. Therefore, the null hypothesis is
rejected and the alternative hypothesis is accepted. So, the variables, Escalating demand for
post-paid connection and flexibility of prepaid connection are dependent.

16.9. Multiple Linear Regression Model:


In this part, focus will be on creating a multiple linear regression model in which the
escalating demand for post-paid connection will be dependent model, and the rest will be
independent model. It is already shown in the correlation part to determine in what way each
of the independent variables affects the dependent variable. In this regression model, it will
be exactly quantified by how much the independent variable will affect the dependent
variable.

Model Summary(b)
Adjusted R Std. Error of
Model R
R Square
Square
1
.717(a)
.514
.497
a Predictors: (Constant), flx, apc, ai, cp

the Estimate
.34738

Durbin-Watson
1.587

b Dependent Variable: ed
Interpretation of R Square:
The model summary shows some important indicators of the explaining power of the model.
The R-square value shows how much change in the dependent variable is caused by the
independent variables. In this case R square value of .514 or 51.4% means 51.4% of the
change in dependent variable is caused by independent variables.
Interpretation of Adjusted R Square:
On the other hand, the adjusted r-square value shows how much change in the dependent
variable is caused by statistically significant variables. So in this case, an adjusted r-square
value of .497 means that 49.7% of the change in dependent variable is caused by statistically
109

significant variables. The standard error of the estimate measures the accuracy of the
predictions within the regression line, which is around .34738.

Durbin-Watson Test:
The Durbin-Watson statistic is a test statistic used to detect the presence of autocorrelation in
the residuals from a regression analysis. In statistics, the autocorrelation function (ACF) of a
random process describes the correlation between the processes at different points in time.
The Durbin Watson value ranges from 0 to 4. A value of 2 indicates there appears to be no
autocorrelation. If the Durbin-Watson statistic is substantially less than 2, there is evidence of
positive serial correlation. As a rough rule of thumb, if Durbin-Watson is less than 1.0, there
may be cause for alarm. Small values of d indicate successive error terms are, on average,
close in value to one another, or positively correlated. Large values of d indicate successive
error terms are, on average, much different in value to one another, or negatively correlated.
The test statistic of Durbin-Watson model is

and hence we see

we use error values according to time.


The Durbin-Watson test statistic of my model is 1.587, which means there is evidence of
positive serial correlation.
Analysis of Variance:
ANOVA(b)
Model
1

Sum of
Squares
df

Regressi
14.692
4
on
Residual 13.877
115
Total
28.569
119
a Predictors: (Constant), flx, apc, ai, cp
b Dependent Variable: ed

Mean Square F

Sig.

3.673

.000(a)

30.437

.121

The ANOVA table shows the total variation, the explained variation and the unexplained
variation (residual) due to the error. The explained variation is denoted as SSR and the
unexplained variation due to residuals is denoted by SSE. The total variation (SST) is 28.569
and variation explained by regression (SSR) is 14.692 and variation explained by regression
110

error SSE is 13.877. If we divide the SSR with SST, we get the value of r-square, which we
have already found out to be 51.4%.

Validity of the Model by using F-Test:


The F-test, or an analysis of variance, is used to test the magnitudes of explained variation
(SSR) and unexplained variation (SSE) with their appropriate degrees of freedom. The
hypotheses for the test are as follows:
Null Hypothesis H0 : Beta coefficients of all independent variables has zero value
Alternative Hypothesis H1: At least 1 Beta coefficient of independent variable has non-zero
value
Decision: The F-test shows that the p-value of the test is 0%. Since p-value is less than =
10%, the null hypothesis will be rejected and the alternate hypothesis will be accepted
because at least 1 beta coefficient has non-zero value.
Coefficient of Independent Value:
Coefficients(a)

Model
1

(Consta
nt)
ai
cp
apc
flx
a Dependent Variable: ed

Un-standardized
Coefficients
Std.
B
Error
.892

.517

.100
.553
.033
.046

.065
.053
.062
.073

Standardized
Coefficients
Beta
.106
.734
.035
.044

Sig.

1.724

.087

1.548
10.519
.524
.632

.124
.000
.601
.529

Revised Un-standardized Multiple Linear Regression Equation before Significance Test:


Y (Escalating Demand for post-paid connection) = .892+.100X 1 (Intense advertising for
prepaid connection) + .553X2 (Continuous promotion for prepaid connection) + .033X3
(Availability of prepaid connection) + .046X4(Flexibility of prepaid)

111

Interpretation of Un-standardized Beta Coefficients:


The Beta () coefficients are the estimated coefficients of population variables. Unstandardized coefficients mean that they include the y-intercept in the regression equation,
which is often meaningless. Where else, standardized coefficients are used in standardized
regression equation which has no y-intercept.
Intense advertising for prepaid connection has an un-standardized beta of .100, which means
that if other variables are held constant, then for every unit of increase in intense advertising
for prepaid connection, escalating demand for post-paid connection will rise by .100 units.
Continuous promotion for prepaid connection has an un-standardized beta of .553 which
means that if other variables are held constant, then for every unit of continuous promotion
for prepaid connection, escalating demand for post-paid connection will rise by .553 units.
Availability of prepaid connection has an un-standardized beta of .033 which means that if
other variables are held constant, then for every unit of Availability of prepaid connection,
escalating demand for post-paid connection will rise by .033 units.
Flexibility of prepaid connection has an un-standardized beta of .046 which means that if
other variables are held constant, then for every unit of Flexibility of prepaid connection,
escalating demand for post-paid connection will rise by .046 units.
Overall, it can be seen from un-standardized equation that Intense advertising for prepaid
connection, Continuous promotion for prepaid connection, Availability of prepaid connection
and Flexibility of prepaid connection statistically heavily influence escalating demand for
post-paid connection.
Revised standardized Multiple Linear Regression Equation before Significance Test:
Y (Escalating Demand for post-paid connection) = .106X 1 (Intense advertising for prepaid
connection) + .734X2 (Continuous promotion for prepaid connection) + .035X 3 (Availability
of prepaid connection) + .044X4(Flexibility of prepaid)

112

Interpretation of Standardized Beta Coefficients:


Intense advertising for prepaid connection has a standardized beta of .106, which means that
if other variables are held constant, then for every unit of increase in intense advertising for
prepaid connection, escalating demand for post-paid connection will rise by .106 units.
Continuous promotion for prepaid connection has a standardized beta of .734, which means
that if other variables are held constant, then for every unit increase of continuous promotion
for prepaid connection, escalating demand for post-paid connection will rise by .734 units.
Availability of prepaid connection has a standardized beta of .035, which means that if other
variables are held constant, then for every unit increase of Availability of prepaid connection,
escalating demand for post-paid connection will rise by .035 units.
Flexibility of prepaid connection has a standardized beta of .044, which means that if other
variables are held constant, then for every unit increase of Flexibility of prepaid connection,
escalating demand for post-paid connection will rise by .044 units.
Overall, it can be seen from standardized equation that Intense advertising for prepaid
connection, Continuous promotion for prepaid connection, Availability of prepaid connection
and Flexibility of prepaid connection statistically heavily influence escalating demand for
post-paid connection.
Revised T-test for statistical significance of individual independent variables:
Coefficients(a)
Un-standardized
Coefficients
Model
1

(Consta
nt)
ai
cp
apc
flx
a Dependent Variable: ed

Standardized
Coefficients

Std. Error Beta

Sig.

.892

.517

1.724

.087

.100
.553
.033
.046

.065
.053
.062
.073

1.548
10.519
.524
.632

.124
.000
.601
.529

.106
.734
.035
.044

113

Hypothesis 1:
Null Hypothesis, Ho= Beta coefficient of Intense advertising for prepaid connections has
zero value.
Alternative hypotheses, H1 = Beta coefficient of Intense advertising for prepaid connections
has non-zero value.
Decision for significance of Coefficients: The null hypotheses (Ho) is accepted and
alternative hypothesis is rejected, since p-value (.124) > (here, =.10 is the significance
level). So the beta coefficient is statistically insignificant.
Hypothesis 2:
Null hypothesis, Ho= Beta coefficient of Continuous Promotion for prepaid connections has
zero value.
Alternative hypothesis, H1 = Beta coefficient of Continuous Promotion for prepaid
connections has non-zero value.
Decision for significance of Coefficients: The null hypotheses (Ho) is rejected and
alternative hypothesis is accepted, since p-value (.000) < (here, =.10 is the significance
level). So the beta coefficient is statistically significant.
Hypothesis 3:
Null hypothesis, Ho= Beta coefficient of Availability of prepaid connection has zero value.
Alternative hypothesis, H1 = Beta coefficient of Availability of prepaid connection has nonzero value.
Decision for significance of Coefficients: The null hypotheses (Ho) is accepted and
alternative hypothesis is rejected, since p-value (.601) > (here, =.10 is the significance
level). Therefore, the beta coefficient is statistically insignificant.

Hypothesis 4:

114

Null hypothesis, Ho= Beta coefficient of Flexibility of prepaid connection has zero value
Alternative hypothesis, H1 = Beta coefficient of Flexibility of prepaid connection has nonzero value
Decision for significance of Coefficients: The null hypotheses (Ho) is accepted and
alternative hypothesis is rejected, since p-value (.529) > (here, =.10 is the significance
level). So the beta coefficient is statistically insignificant.

Un-standardized Multiple Linear Regression Equation After Significance Test:


Y (Escalating Demand for post-paid connection) = .892+. + .553X 2 (Continuous promotion
for prepaid connection)
Standardized Multiple Linear Regression Equation After Significance Test:
Y (Escalating Demand for post-paid connection) =.734X 2 (Continuous promotion for prepaid
connection)
Residual Statistics:
Residuals Statistics (a)
Minimu
m
2.7099
-.79120

Predicted Value
Residual
Std.
Predicted
-2.303
Value
Std. Residual
-2.278
a Dependent Variable: ed

Maximu
m
4.1543
.57576

Mean
3.5190
.00000

Std.
Deviation
.35137
.34149

N
120
120

1.808

.000

1.000

120

1.657

.000

.983

120

Interpretation of Residual Statistics: The above table shows the maximum, minimum,
mean and standard deviation of residual for both standardized and un-standardized equation.
As expected the mean of the residuals have turned out to be zero.
Normal Probability Plot:

115

The following is the normal probability plot of the revised regression model. From the
diagram, we can clearly see that the model fits nicely along the straight line. This means that

ExpectdCum
Prob

the data set is normally distributed and that the model fulfills the normality assumption.

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16.10. Revised Linear Regression Model after Deducting Insignificant variables:


The revised model excludes intense advertising for prepaid connection, availability of prepaid
connection and flexibility as these have been found to be statistically insignificant. Hence the
model is re-run is SPSS without using the independent variable in the equation.
Revised Model Summary:
Model Summary
116

Adjusted
Model
R
1
.707(a)
a Predictors: (Constant), cp

R Square
.500

R Std. Error of the

Square
.495

Estimate
.34804

Interpretation of Revised R square:


The model summary shows some important indicators of the explaining power of the model.
The R-square value shows how much change in the dependent variable is caused by the
independent variable. In this case r-square value of .707 or 70.7% means 70.7% of the change
in dependent variable is caused by the seven independent variables.
Interpretation of Revised Adjusted R-square:
On the other hand, the adjusted r-square value shows how much change in the dependent
variable is caused by statistically significant variables. So in this case, an adjusted r-square
value of .500 or 50.0% means that 50.0% of the change in dependent variable is caused by
statistically significant variables, which will be found later in the report. The standard error of
the estimate measures the accuracy of the predictions within the regression line, which is
around .34804

Revised Analysis of Variance (ANOVA):

ANOVA(b)
Sum of
Model
1

Regression
Residual
Total
a Predictors: (Constant), cp

Squares
14.275
14.294
28.569

Mean
df
1
118
119

Square
14.275
.121

F
117.849

Sig.
.000(a)

b Dependent Variable: ed
The ANOVA table shows the total variation, the explained variation and the unexplained
variation (residual) due to the error. The explained variation is denoted as SSR and the
unexplained variation due to residuals is denoted by SSE. The total variation (SST) is 28.569
117

and variation explained by regression (SSR) is 14.275 and variation explained by regression
error SSE is 14.294. If we divide the SSR with SST, we get the value of r-square which we
have already found out to be 50.0%.
Revised Validity of the Model by using F-Test:
The F-test, or an analysis of variance, is used to test the magnitudes of explained variation
(SSR) and unexplained variation (SSE) with their appropriate degrees of freedom.
Null Hypothesis H0 : Beta coefficients of all independent variables has zero value
Alternative Hypothesis H1: At least 1 Beta coefficient of independent variable has non-zero
value
Decision: The F-test value of 117.849 shows that the p-value of the test is 0%. Since p-value
is less than = 10%, we will reject the null hypothesis that all of the beta coefficients have
zero value and accept the alternate hypothesis that at least 1 beta coefficient has non-zero
value.
Revised Beta Coefficients:
Coefficients(a)

Model
1

Un-standardized

Standardized

Coefficients

Coefficients

B
(Constan

1.686
t)
cp
.533
a Dependent Variable: ed

Std. Error Beta

Sig.

.172

9.811

.000

10.856

.000

.049

.707

Revised Un-standardized Multiple Linear Regression Equation before Significance Test:


Y (Escalating demand for Post-paid connection) = 1.686 + .533X1 (Continuous Promotion
for prepaid connection)
Revised Interpretation of Un-standardized Beta Coefficients:
The Beta () coefficients are the estimated coefficients of population variables. Unstandardized coefficients mean that they include the y-intercept in the regression equation,
which is often meaningless. Where else, standardized coefficients are used in standardized

118

regression equation which has no y-intercept. Constant Beta Coefficient of 1.686 has no
meaningful interpretation and hence it is not useful in the model.
Continuous Promotion for prepaid connection has an un-standardized beta of .533 which
means that if other variables are held constant, then for every unit of increase in continuous
promotion for prepaid connection, demand for post paid connection will rise by .533 units.
Revised standardized Multiple Linear Regression Equation before Significance Test:
Y (Escalating demand for Post-paid connection) = .707X1 (Continuous Promotion for prepaid
connection)
Revised Interpretation of Standardized Beta Coefficients:
Standardized coefficients are used in standardized regression equation which has no yintercept, which is often meaningless. Continuous Promotion for prepaid connection has an
standardized beta of .707 which means that if other variables are held constant, then for every
unit of increase in continuous promotion for prepaid connection, demand for post paid
connection will rise by .707 units.
Revised T-test for statistical significance of individual independent variables:
Coefficients(a)

Model
1

(Consta

Un-standardized

Standardized

Coefficients
Std.

Coefficients

Beta

1.686
nt)
cp
.533
a Dependent Variable: ed

Error
.172
.049

.707

Sig.

9.811

.000

10.856

.000

Null Hypothesis H0: Beta coefficient of Continuous promotion for prepaid connection has
zero value
Alternative Hypothesis H1: Beta coefficient of Continuous promotion for prepaid connection
has non-zero value

119

Decision for significance of Coefficients: The null hypotheses (Ho) is rejected and
alternative hypothesis is accepted, since p-value (.000) < (here, =.10 is the significance
level). So the beta coefficient is statistically significant.
Revised Un-standardized Multiple Linear Regression Equation After Significance Test:
Y (Escalating demand for Post-paid connection) = 1.686 + .533X1 (Continuous Promotion
for prepaid connection)
Revised standardized Multiple Linear Regression Equation After Significance Test:
Y (Escalating demand for Post-paid connection) = .707X1 (Continuous Promotion for prepaid
connection)
Revised Residual Statistics:
Residuals Statistics(a)
Std.
Minimum
Predicted Value
2.7511
Residual
-.85522
Std.
Predicted
-2.217
Value
Std. Residual
-2.457
a Dependent Variable: ed

Maximum
4.1716
.57335

Mean
3.5190
.00000

Deviation
.34635
.34657

N
120
120

1.884

.000

1.000

120

1.647

.000

.996

120

Interpretation:
The above table shows the maximum, minimum, mean, and standard deviation of residual for
both standardized and un-standardized equation. As expected the mean of the residuals have
turned out to be zero.

Revised Normal Probability Plot:


The following is the normal probability plot of the revised regression model. From the
diagram, we can clearly see that the model fits nicely along the straight line. This means that
the data set is normally distributed and that the model fulfills the normality assumption.

120

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17. Findings and Conclusion:

121

From Basic Descriptive analysis which involves direct percentage of data came from
questionnaire, some important findings are clearly visible. These findings include:

The maximum percentage shows that Grameenphone post-paid package is successful

to satisfy its customers.


Call rate is not significantly important for Grameenphone post paid users.
Continuous advertisement of prepaid package of Grameenphone may affect the

escalating demand of post-paid package.


The post-paid users of Grameenphone will not switch their current connection
package even though they might be offer with attractive offer of Grameenphone

prepaid package.
Attractive offer of prepaid package hardly attract post-paid users while they bought

their post-paid connection.


Majority of the participation of post-paid users shows that, availability of prepaid

connection may hamper the demand of post-paid connection.


Flexibility of prepaid connection may hamper the escalating demand for post-paid

connection of Grameenphone.
Grameenphone is more emphasizing on advertisement of prepaid connection than

post-paid connection.
Grameenphone is more emphasizing on advertisement of prepaid connection than

post-paid connection through billboard.


Grameenphone is more emphasizing on advertisement of prepaid connection than

post-paid connection through TVC.


Any kinds of Advertisement do not influence the post-paid users to change post-paid

connection.
Many of the people do not know about the current post-paid offer.
Continuous promotion of Grameenphone prepaid influence post-paid users to change

their current connection.


Thirty seven point five percent people says that they dont care about the price or call
rate of Grameenphone post-paid package as long Grameenphone provides better

connectivity.
Forty four point two percent people disagree that availability of prepaid connection
make them think of switching their current post-paid connection to prepaid
connection. Only 5.0% people highly agree that availability of prepaid connection

make them think of switch from post-paid connection.


Fifty percent of post-paid users of Grameenphone agree that, Grameenphone prepaid
package can be found anywhere, but post-paid package cannot be. It shows that

122

Grameenphone is putting more emphasis on Grameenphone prepaid package than

post-paid package.
Sixty eight point three percent of Grameenphone post-paid users agree that Low Price

of Prepaid connection make it more available than post-paid connection.


Fifty nine point two percent people agree that they never face any problem related to

bill.
Fifty six point seven percent people agree with the term that people who want to limit
their usage usually use prepaid connection. Nobody disagrees with this term.
Therefore, it shows that post-paid users do not think of usage.

From the Analysis of Variance (ANOVA) test some important finding came into limelight.
They are:

Intense advertising for prepaid connections affects the demand for the post-paid

connection.
There is a positive relationship between two variables- Continuous Promotion for
prepaid connections and demand for the post-paid connection. Continuous Promotion

for prepaid connections affects the demand for the post-paid connection.
Availability of prepaid connections affects the demand for the post-paid connection.
There is a negative/declining relationship between escalating demand for post-paid
connections and flexibility of prepaid connections.

After ANOVA test, Pearson product-moment correlation coefficient between all the variables
has been conducted, which singled out the highest correlation among the dependent variable.
Data sheet shows that- Only continuous promotion for prepaid connection have very high
correlation with escalating demand for post-paid connection, which proves one point that
these variable play a very important role in the demand for post-paid connection. All the other
variables have low to weak correlation, which means they slightly or moderately influence
escalating demand for post-paid connection in either positive or negative way. After doing the
population mean test, chi square, Durbin Watson test and multiple regression analysis, it is
being ensured that:

The most important factors that play a significant role in escalating demand for postpaid connection is continuous promotion for prepaid connection.

The equations that came visible are shown below:

123

The original un-standardized equation, with statistically significant & insignificant


variables, is:

Y (Escalating Demand for post-paid connection) = .892+.100X 1 (Intense advertising for


prepaid connection) + .553X2 (Continuous promotion for prepaid connection) + .033X3
(Availability of prepaid connection) + .046X4(Flexibility of prepaid)
This equation shows that, change of 1 unit of all the independent variables (intense
advertising for prepaid connection, continuous promotion for prepaid connection, availability
of prepaid connection, flexibility of prepaid), demand for post-paid connection will also
increase.

The original standardized equation, with statistically significant & insignificant


variables, is:

Y (Escalating Demand for post-paid connection) = .106X 1 (Intense advertising for prepaid
connection) + .734X2 (Continuous promotion for prepaid connection) + .035X 3 (Availability
of prepaid connection) + .044X4(Flexibility of prepaid)
This equation shows that, 1 unit increase of all the independent variables, demand for postpaid connection will also increase.

The revised un-standardized equation, without statistically insignificant variables, is:

Y (Escalating demand for Post-paid connection) = 1.686 + .533X1 (Continuous Promotion


for prepaid connection)
After revising the equation, it was found that 1 unit change of continuous promotion for
prepaid connection effects escalating or increasing demand for post-paid connection.

The revised standardized equation, without statistically insignificant variables, is:

Y (Escalating demand for Post-paid connection) = .707X1 (Continuous Promotion for prepaid
connection)

124

After revising the standardized equation, the results show that continuous promotion for
prepaid connection plays an important role in case of increasing demand for postpaid
connection.

Recommendation:

125

From my findings and as per discussion with Mr. Mokammel Haque, (senior executive of
Grameenphone Limited), my recommendations are as follows:

Management should focus on Continuous promotion of prepaid connection of

Grameenphone in terms of escalating demand of post-paid connection.


Statistically, factors such as intense advertising of prepaid connection, availability of
prepaid connection or flexibility plays very little role in escalating demand of post-

paid connection of Grameenphone.


As post-paid users follow the promotions or different offers of post-paid connection,

Grameenphone should concentrate on it.


Grameenphone should pay attention to different offers of post-paid connection in
terms of holding their current post-paid users.

Grameenphone management should be aware of negative influence of availability of


prepaid connection and intense advertising of prepaid connection as they are also
playing important role in escalating demand of post-paid connection.

Grameenphone needs to evaluate the recent advertisement to increase the recent


promotion of Grameenphone post-paid connection.

Grameenphone needs to reallocate and analyze the target customers of post-paid


connections.

Grameenphone need to come up with different new value added services with
competitive price where the target customers can rely and happy.

Other factors might also be relevant escalating demand of post-paid connection. So


this report should not be considered as a bible for future prospect of post-paid
connection. Marketing strategy and environmental factors also play a key role in the
performance of post-paid connection of Grameenphone.

Bibliography:

Grameenphone. (2007). Annual Report Grameenphone, Year 2007. Dhaka: Grameenphone.

126

Grameenphone. (2008). Annual Report of Grameenphone. Dhaka: Grameenphone.


Grameenphone. (2009). Annual Report of Grameenphone. Dhaka: Grameenphone.
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Greameenphone. (2009). IPO Prospectus of Grameenphone. Dhaka: Grameenphone.
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en.wikipedia.org: http://en.wikipedia.org
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