You are on page 1of 47

Executive Summary

he strategy of Orascom Telecom Limited is to provide quality GSM service under

superior managerial techniques and controlled condition. The company also has a great emphasis on creating job opportunities for the women population of the community. The main visionary of the company is Mr. Naguib Sawiris, who is also the Chairman & Managing Director of the company. All the grand strategy of the company is set by him.

To ensure efficiency and effectiveness the recruitment policy of Banglalink for each management level is unique according to its needs. The company values their employees. The company uses critical incident techniques to appraise their performances. Among other things they provide. The company has taken up a string of measures to keep the morale of the employees high. The company also employs controlling techniques to keep the service at their best. The company recognizes its responsibility towards the society in which it operates its business. Consequently the company has adopted a proactive attitude towards its social responsibilities.

After carefully examining the management of Orascom Telecom Limited, it is clear they are using high number of distributors to gain market share. They are trying to make Banglalink the most easily and widely available GSM service in Bangladesh by hiring large number of distributors and making the most versatile packages and services available. And after analyzing the reports and studying the market it is quite clear that they are fairing quite well according to their company objectives.

1 1

Table of Contents

1) Introduction 2) Bangladesh Telecommunication Market 3) Banglalink 4) Promotions 5) Banglalink Icon 6) Business Environment 7) Management Functions 8) Human Resource Management 9) Brand Portfolio 10) Finance 11) Operations 12) Corporate Social Responsibility 13) BCG Matrix 14) SWOT Analysis 15) Recommendation 07

03 04 13 13 14 16 19 28 28 29 41 45 46 49

2 2

Introduction

Background Telecom is a booming sector in the country today. Foreign investments have flowed into the country over the past few years in huge amounts. Bangladesh, with a population base of 140m provides a very prospective environment for foreign telecoms to invest. The urban population at present is approximately 29 million people. About 22% of the urban population is considered middle class (with an average household income of USD 3,254), who are increasingly becoming more capable of purchasing consumer goods, and this class is growing. In any case, the urban population is forecasted to rise to 99 million by the year 2030, says a study by World Bank. This will lead to an increase in consumer demand within the economy, and thereby will increase the probability of purchasing of mobile phone. There is sustaining need for telecommunication all over the world. Bangladesh is no different. But how much of the demand is actually met? The rising of telecommunication is further proven by the extreme rush for purchasing airtimes, booking billboards, attractive offers and what not. In any case, such activities are going to continue to increase in the future with the dissolving of boundaries and expansion of globalization. Banglalink is an aggressive telecom in the country and within a year of operation has established certain benchmarks. Despite having the 2nd largest market share, Banglalink is perceptually the leader in terms of innovation of products, services and communication. Orascom telecom Bangladesh limited ("Banglalink") is a 100% owned subsidiary of Orascom telecom holding s.a.e., Egypt, ("Oth") in Bangladesh. It was acquired by Oth in 2004, and after a complete overhaul and the deployment of a new GSM network, its telecommunication services were re-launched under the brand name Banglalink. When Banglalink began operations in Bangladesh in February 2005, its impact was felt immediately: overnight mobile telephony became an affordable option for customers across a wide range of market segments. Banglalinks success was based on a simple mission: "bringing mobile telephony to the masses" which was the cornerstone of its strategy. Banglalink changed the mobile phone status from luxury to a necessity and brought mobile telephone to the general people of Bangladesh and made a place in their hearts. The mobile phone has become the symbol for the positive change in Bangladesh. This positive change that is quite correctly attributed to

3 3

Banglalink, has become the corporate positioning of Banglalink and is translated in their slogan "making a difference" or "din bodol". "Making a difference" not only in the telecom industry, but also through its products and services, to the lives of its customers. This corporate stance of "making a difference" has been reflected in everything Banglalink does. Banglalink attained 1 million subscribers by December 2005 and 3 million subscribers in October 2006. In less than two years which is by December 2007, Banglalink overtook Aktel to become the second largest operator in Bangladesh with more than 7.1 million customers. Banglalink currently has 14.22 million subscribers as of march 2010, representing a market share of 26%. Growth over the last years have been fuelled with innovative products and services targeting different market segments, aggressive improvement of network quality and dedicated customer care, creating an extensive distribution network across the country, and establishing a strong brand that emotionally connected customers with Banglalink.

Bangladesh Telecommunications Market

After becoming available in 1993, mobile phones took off slowly in Bangladesh where nearly half the 140 million population lives on less than one dollar a day. Only 1.56 among 100 people has access to telecoms facility, the 2003 data of the UN telecoms watchdog say. Telecommunications services in Bangladesh are provided principally by the Bangladeshi Telegraph and Telephone Board (the BTTB), the incumbent state owned fixed line operator, with respect to fixed-line services, and by six GSM mobile operators, Robi (Axiata Malaysia), Banglalink (Orascom Telecom), Citycell (Singtel, Pacific Group & Far East Telecom), Grameenphone (Telenor & Grameen Telecom), TeleTalk (Bangladesh Telegraph and Telephone Board) and Warid Telecom Bangladesh (Warid Telecom). The fixed line telecom sector is invigorating for an enormous sprint in investment, as the telecom watchdog has finalized the frequency distribution to all 19 private licensees. The formal introduction of state-run BTTB mobile phone was on 28th December 2004 which is seen as a milestone in our telecom account. Bangladesh Telegraph and Telephone Board (BTTB) would release SIM cards for 2.5 lakh mobile connections of GSM (Global System for Mobile) technology in the first phase, out of targeted 10 lakh connections under the scheme.

4 4

1.1 Historical Background

The Telegraph branch of the Posts and Telegraph Department was created in 1853 in the then British India, which was afterwards regulated under the Telegraph Act of 1885. This was reconstructed in 1962 as Pakistan Telegraph and Telephone Department. After the independence of the Peoples Republic of Bangladesh in 1971, Bangladesh Telegraph and Telephone Department was set up under the Ministry of Posts and Telecommunications to run the Telecommunication Services in Bangladesh. This was converted into a corporate body named Bangladesh Telegraph and Telephone Board after promulgation of Bangladesh Telegraph and Telephone Board Ordinance no. XLVII of 1975. In pursuance of Ordinance no. XII of 1979 promulgated on 24th February 1979, Bangladesh Telegraph and Telephone Board were again converted into a Government Board. 1.2 Demands in the Industry The growth of the telephone exchange capacity of Bangladesh from 1995 to 2000 was discouraging- an average growth rate of only 40, 000 lines per annum whereas, pending and growing demand of telephones has been increasing at a faster rate than growth in the installed capacity of telephone exchange system (BTTB history, n.d.). BTTB is not the sole provider of telephone services in Bangladesh. In 1998, four different private operators were allowed to operate in different types of telecommunication services. Of these 2 of the operators worked in rural areas, one was providing radio trunking and passive services and one was providing mobile phone services. The mobile service provider was City Cell sponsored by Pacific Bangladesh Telecom limited (City Cell history, n.d.). City Cell provided telecom services both in rural and urban areas. Although mainly based in cities and towns, city cell had interconnectivity with BTTBs land lines (City Cell history, n.d.). City Cell was the first mobile service provider of Bangladesh. Initially it had a monopoly on the mobile service but only until 1996 (City Cell history, n.d.). In 1996 two new operators entered the market- GrameenPhone and Sheba. Shebas service was limited to Dhaka but GrameenPhone (GP) spread its network rapidly (Sheba history. n.d.). Today out of the 64 districts, GP serves 50 districts in Bangladesh and its network is divided into 6 zones- Dhaka, Chitagong, Khulna, Sylhet, Barishal, and Rajshahi. GP has two kinds of services- GP national and GP regular. GP national provides connection with BTTB and all other mobiles throughout the country wherever GP has its network. GP regular only connects to GP mobiles

5 5

throughout the country according to its coverage. Although BTTB has not been able to reach the villages, Grameens cell phones have reached a massive number of villages. GP, funded by the Grameen Bank (10%) and Nortel (90%), has used the optical fiber network owned by Bangladesh Railway (Grameens village program, n. d.). The fiber optic cables were originally laid by the Bangladesh Rural Transport Authority (BRTA) but never used (BTTB Project Concept, November, 2004). Therefore, Grameen Phones network has been easily connected to any mobile users who are adjacent to Bangladesh railway tracks. The GPs village program was started in 1997 and is providing service to people in the remote rural areas of BD. According to statistics of October 2003, there are more than 39,000 village phones in operation. These village phones are operating in 58 districts and in approximately 28,000 villages- providing telecom facilities to more than 50 million people in remote areas Besides GP, CityCell and Sheba there is a fourth cell phone operator called Robi. Robi joined BDs fast cell phone operation in 1999. Although mainly based in Dhaka, like Sheba, Robi has been able to attract customers and maintain control of quality. Lastly in 2007 Warid telecom came into the business.

This part of the report provides a brief overview on the four major players of the Telecom Industries. It is simple general information on the companies explaining their positions and potentials in the market. This would be helpful to make a correlation between the business graduates choice and the prospect of these companies to get the best brains available in the market.

6 6

Banglalink

2.1 Sheba turns Banglalink

Banglalink, was the last addition to the GSM family of OTH when on October 20th, 2004. Orascom Telecom announced the actual purchase of Sheba Telecom with a cost of 60 M $, as well as the companys re- branding under the name of Banglalink with the leveraging promise to provide the people in Bangladesh, quality service at the most affordable prices fitting to their communications needs. It is also worth mentioning that an unprecedented success of sales results followed the Commercial launch of Banglalink on the 10th of Feb 05. OTH expects its subsidiary to invest over US$200 million in expanding its network coverage and capacity and deploying its services during the coming years. In September 2004, Orascom Telecom Holding acquired a mobile services company, Sheba Telecom (Pvt.) Ltd. in Bangladesh with a nationwide GSM license valid until 2011. Since then, OTH has installed new management, upgraded the network and re-branded the company as Banglalink. Banglalink has rapidly deployed new network infrastructure, set up a distribution network and points of sale, and designed complete commercial plans to offer high quality voice and data telecommunications services at competitive prices to the people of Bangladesh. OTH operates a GSM network in Bangladesh and provides a range of prepaid and postpaid voice, data and multimedia telecommunications services. As of June 30, 2009, Banglalink already has 11.04 million subscribers. Banglalink has an approximate market share of 23.7%. Banglalinks license is a nationwide 15-year GSM license that expires in November 2011. It was acquired for US$ 60 million and re-branded and launched its services under Banglalink in February 2005. 2.2 Parent Company Orascom Telecom Holding

Few years ago, Orascom Telecom Holding has started their business and has already established themselves as one of the largest conglomerate telecommunication company in the world. Basically, they are doing their business in Middle East, Africa, and Pakistan and in Bangladesh as well. They are providing the GSM network. They started their business in Egypt in 1998 with MobiNil and still they are expanding their business throughout the world.

7 7

They have already owned a huge market share in many countries. But, in Bangladesh, they have taken over Sheba Telecom and started their business. On October 20th, 2004, Orascom Telecom announced the actual purchase of Sheba Telecom for 60 million dollars, as well as the companys re-branding under the name of Banglalink, with the leveraging promise to provide the people of Bangladesh quality service at the most affordable prices suitable to their communications needs.

2.3 Commercial Marketing and Sales:

Sheba re-branded its operation under the trade name Banglalink shortly after it was acquired by OTH. Banglalink provides its subscribers with basic voice services, messaging services and value-added services. Banglalink offers a prepaid and postpaid telephony service. Banglalink has entered into international roaming agreements with more than 250 operators. Banglalink provides customer support through a 24-hour a day, seven day a week call center. Banglalink sells its mobile telecommunications services through indirect channels and Banglalink-owned shops. Banglalink has agreements with exclusive national distributors. In addition to this indirect channel, Banglalink owns and operates shops in major cities, which also act as a point of service and supports its customers. Banglalink gives the highest importance on the quality of our coverage to ensure that the customers have the best experience while using the service.

8 8

2.4 Network Coverage

Banglalink has stayed true to its vision all throughout. It spread its network in record speed and covered all of the 61 districts, 425 thanas, and 88% of the total population of Bangladesh. These incredible milestones were achieved in less than a year, whereas other companies had taken several years to do so.

9 9

2.5 Shared Values

We know that Banglalink is a brand extension of Orascom Telecom Holding. They have started their business in Bangladesh and they are trying to capture the huge number of customers under their service. They are committed to provide the best service to the customers and they are trying to do according to their goal. They have set a certain value through which they will be trying to achieve their goal and those are: Straight Forward Reliable Innovative Passionate

According to them, they are totally committed to serve the best possible service for the customers and for ensure that they will invest huge financial resources in Bangladesh. They are also trying to make a difference in the customers mind. Like in our country, most of the people are not eligible to bear the expense of a cell phone. By considering this fact, they are trying to make this cell phone available for all customers by offering those packages which is affordable for all. They are trying to penetrate the whole market with those low cost packages.
2.5.1 Vision

Banglalink understands people's needs best and will create and deliver appropriate communication services to improve people's life and make it easier.
2.5.2 Mission

Banglainks mission is to provide the best quality services to their customers, value to their shareholders, and a dynamic working environment for their employees.

10 10

2.5.3 Objective

In future, Banglalink wants to be the number one telecom operator in Bangladesh. To achieve this goal necessary steps are already taken and more innovative ideas are generating to achieve the goal as early as possible. Within the three years of operation Banglalink has captured 1 million customers in Bangladesh, whereas the leading company GrameenPhone reached their first million in 9 years of operation. GrameenPhone reached their first million in 2005 and Banglalink started their operation in Bangladesh in 2005. Within the next three years both the companies are running into the same pace according to customer reach.

2.6 Making a difference

The biggest barrier today for people is the cost of handsets. Banglalink will strive to lower the total cost of owning a mobile. They are here to help make a difference in people's lives by providing affordable and reliable connectivity solutions. They will strive to connect people and link their lives by listening to them and by understanding their needs. They are here to help us speak our language.

2.7 Market & Package Overview

The market consists of different types of users with different core needs. It is important to identify the core needs of the customer groups and service the unique needs in unique ways.

2.7.1 Segmentation

Banglalink has segmented the telecom market according to the needs and wants of the customers. The segmentation has been done to target the consumer groups in the market and identifying their core needs.

11 11

Banglalink has identified that fact that the needs of the corporate customers will not be the same as those from the personal or individual market. Hence, banglalink has come with specific products targeting the specific market segments. Banglalink is the only telecom which has segmented its customer base fully. The packages offered for these segments are: Banglalink enterprise personal (Postpaid) Banglalink enterprise SME (Postpaid) Desh (Prepaid) Desh Rang (Prepaid)

The personal post paid packages are tailored to serve the exact purposes and give the best value for money. The enterprise SME package is a customized package offering solutions to anyone starting up a business of his/her own. Desh package is for those users who want to talk to any network (specially other network) at any time at lower rate. Desh Rang is most beneficial for customers who mainly make calls to their own network and are heavy SMS users. These packages were created keeping in mind, the needs of the people who prefer to be treated differently. The communication of these packages is likewise done in a way to attract people of the fitting segments.
2.7.2 Measure of potentiality of the target market

Its true that all the segments are competitive. But, the positioning strategy that Banglalink is adopting will help them to effectively use those segments. As far as the Bangladesh market is concern, a huge chunk of people wants to have quality product with low price. Actually their target customers are the young and middle age people of Bangladesh.

12 12

Promotions

Banglalink uses consumer promotion tools, these tools used to urge short-term customer buying or to enhance long-term customer relationships. First one is samples, which are offers of a trial amount of products. Next one is cash refunds or cash rebates; which is like coupons expect that they will give a bonus amount after purchasing a SIM card. They also offer cash back according to their customers usage. They have free SMS service. They also offer free talk time for their customers. Consumer promotion tools are used by Banglalink to promote their product. Banglalink also took the following steps to promote their product and brand. In this section they basically concentrate in their Banglalink theme. They choose musical type as their massage strategy. In this strategy, they show people or celebrities are singing about the product. They made their TVC based on their theme music. This communication based on its corporate tune which carries the legacy of Banglalink through a refreshing perspective of Positive Bangladesh - with amazing cultural heritage, people, music and scenic beauty of our very own country. This campaign is aimed at reinforcing our corporate tune firmly in the mind of the audience on the canvas of a positive face of Bangladesh. Another electronic medium is Radio. Radio is the more popular medium than any other medium. With the help of FM Radio now they can promote their product in the remote place of Bangladesh. They also promote their product by printing media which is newspaper, magazine, periodical etc. they also have huge amount of billboard around the whole country. They also provide different types of offers to promote their brand and product. These promotional activities help Banglalink to create a good positioning in the mind of their target customer compare to other competitors.

Banglalink ICON

Banglalink Icon is their most recent product. Actually this is not a new product; they call it a customer service. To enjoy this service a customer has to use more than 3000 taka in a month.. By Banglalink Icon, they are trying to create a distinctive customer perceived value in the mind of their target customers. These customers became ICON of the organization. Banlalink gives them more priority to the Icon customers. Banglalink uses two promotion tools to give them better service and greater satisfaction from other competitors. First one is

13 13

advertising specialties, also called promotional products, are useful articles imprinted with an advertisers name, logo, or massage that are given as gifts to consumers. Typical items include T-shirts and other apparel, pens, coffee mugs, calendars, key rings, mouse pads, tote bags, coolers, golf balls, and caps. They also use patronage rewards, that are cash or other awards offered for the regular use of Banlalinks products and services.

5
5.1 The Competitive Environment

Business Environment

The competitive environment is the closest environment surrounding the organizational borders. The elements of the competitive environment of an organization are also known as Porters Five Forces. These are: 5.1.1 Rivals Rivals can be defined as another company who operates in the same industry. Banglalinks main competitors are: Grameen Phone, Robi, Taletalk, Citycell. Banglink must have to identify their rivals, they have to know how the rivals are operating their business and they must have to react according to their rivals actions. 5.1.2 Suppliers Suppliers are firms who provide raw materials, product and services to produce final product for the particular industry. Banglalink is a telecom company. It needs network tower to provide better service. Ericsson and Huawei are two main firms who provide network towers for all telecom company of Bangladesh. Because of having only two networks provide firms the suppliers have the most bargaining power, which is not good for Banglalink. But at the same time Banglalink is trying to limit the bargaining power of their suppliers to have a competitive advantage. Customers need cell phone to use Banglalinks product. So, cell phone companies like Sony Ericsson, Siemens, Nokia, Samsung, LG, Motorola etc. are also Banglalinks suppliers. 5.1.3 New Entrants New Entrants are those companies who just entered into an existing market with an old product. Warid Telecom is the new company in telecom sector. Warid started their business in 2009 while Banglalink started their business in 2005. Managers must ensure that the industry has high entry barriers.

14 14

5.1.4 Buyers Customers can be defined in two types one is they are the intermediate purchasers and another one is they are the final consumers who consume the product or uses the service. For Telecom Company like Banglalink we are the buyers who purchase and use their product. Managers must ensure better customer service and understand what customers want and how they want it.

5.1.5 Substitutes Substitutes are companies who being in alternative products and services into the existing market. Banglalinks main substitutes are BTTB, ISPs, and VOIPs etc. Managers must ensure that the industry does not have many substitutes. 5.2 The Macro Environment Macro environment includes those fundamental factors and general elements that can affect and influence all strategic decision making of an organization. 5.2.1 Law and Politics Banglalink have to maintain some important laws of the country like The Telegraph Act of 1885, The Wireless Telegraph Act of 1933, The Bangladesh Telegraph and Telephone Board Ordinance 1979, The Bangladesh Telecommunication Act 1999, National Telecom Policy 1998 etc. Also, the government has imposed a higher rate of value added tax (VAT) on the Telecom. So, Banglalink has more legal constraints than opportunities. They also have high rate of income taxes on their net profit. Politics affects Banglalink greatly. If there is a political instability around the country, there will be fewer sales.

5.2.2 Economy The economic variables such as inflation rates influence Banglalink. As we know inflation rates increases prices of everything, so does the costs of Banglalink. The price of their services though increases, but still their customers, who are loyal, do not shift to Banglalinks competitors.

15 15

6
7.1 Planning and Decision Making 7.1.1 Strategic planning

Management Functions

The Top-Level Management comprise of the Board of Directors and CEO. The Top level management is headed by the Managing Directors of the company. They decide on the structure of the company. The Top Management takes all the major decision for the organization. They are responsible of giving to maintain the relationship with the mother organization which is Orascom Telecom. They do the negotiation with their suppliers and the share holders of the company. They do the financial planning, where they forecast revenue earnings and expenditures as well as capital expenditures for the next six months. They also map out the production planning and shipment planning for the middle management. The average planning horizon for the top management of Banglalink is 6 months. That is, the company decides on its strategic planning. 7.1.2 Intermediate planning The intermediate planning at Banglalink is carried out by the Mid-Level Management. The Mid-Level Management comprises of the CFO, CCO, CTO and all the department heads of the company. The Middle Management looks all the work of their subordinates work. They are bound to top level managers. They took suggestions from the first line managers. They execute the financial plans mapped out to them by the companys top management. Other than that the planning horizon of the middle management of Banglalink is 3 months. 7.1.3 Operational planning The operational planning at Banglalink is carried out by the lower level management. The lower level management of the company comprises of the officers of the company. The officers of the company lead the execution of the production and all other related processes as per the planning given to them what the lower level management does decide is how much they can execute the plans which given to them. The average planning horizon of the lower management is a month.

16 16

7.2 Organizing Structural consideration such as the chain of command, division of labor and assignment of responsibility of Banglalink are set according to its Organogram, or its Organizational Structure. The Organogram is given below

17 17

Director

Senior Manager

Manager

Assistant Manager Senior Executive

Executive

Junior Executive Officer

Figure: Hierarchy of each Department

18 18

7
7.1 Recruitment Process

Human Resource Management

To recruit an employee Banglalink follow below steps1. Brief First step is briefing about the recruitment process. In this step they set the procedures that how they will recruite employee. 2. Purpose The objective of this process is to ensure a regular and smooth interaction between HR and all departments stating a hiring need to HR. It complements the general guidelines given in the Recruitment Policy which was developed by the HR department and is available to everyone via intranet. The process will define all steps necessary to follow between stating a recruiting need until making the final offer to a potential employee 3. Distribution and Approval 4. Abbreviations and Definitions 5. References Templates: a. Recruitment Flowchart included Prerequisite: b. N/A Policy: As per OTH HR policy 6. Process Activities: DETAILS OF THE PROCESS: State recruiting need through official personnel requisition form Ensuring Compliance with approved hiring plan (1 day) Receive form, confirm reception by email to requesting person (same day) Regularly update employing department on progress (weekly) Send set of CVs (shortlist) and other relevant info to requesting department. Identification of potential candidate (1-7 days) Contact candidate, arrange interviews (2 days) Candidate accepted?

19 19

Check references, arrange medical check (7 days) Communicate verbally the offer to candidate Decision on offer adaptation (2 days)

7. Roles and Responsibilities HOD requesting for the resources: i. Request for Resources for the department ii. Receives and screen the short-listed CVs iii. Identify potential candidate from short listed candidates iv. Inform HR for short listed candidates v. Interview candidate vi. Accept candidate vii. Receive and review selected candidate HOD HR: viii. Approves the candidate ix. Signs the offer for the selected candidate

Recruitment Manager:

x. Comply with approved manpower forecast from HR-RC01 xi. Sources CV xii. Shortlist the CVs and other relevant information to requesting department xiii. Contact candidate and arrange interviews xiv. HR to check references and arrange medical checkup xv. Make offer to the candidate xvi. Candidate accepts the offer xvii. Inform requesting department

20 20

C&B Manager:

xviii. Develop

offer

for recruitment

to

inform

respective departmental head

21 21

Request for Resources is sent by the department along with Request Form and Job Description

Collected CVs are short-listed and sent to the Dept.

Dept. short lists the CVs and sends the Approved CVs to HR

Proactive approach

A list of required HCs to be recruited as per the Budgeted HC is sent on every last Tuesday of month

Department submits Request Form & Job Description

Comply with Approved HC Budget

Yes

Vacancy is posted on the internal website

Acquire Head of Department approval

No
Yes

Approved

Rejected

Suggest Offset Vacancies

Approval from Dept. Head

Internal candidates apply

Potential CVs

1-2 Days
Offer is made according to current candidates No salary
Current candidates salary is equal to or less than minmum for vacancy

Sourcing CVs from No external sources:Agencies Websites Database Advertisments

3-5 Days

No

Yes Vacancy on the same level or less

Offer is Internal developed with candidated C&B


External candidate

Approved candidates are called for the Initial HR Interview

Yes Positive C & B prepares formal offer Positive Medical Check & Reference Check is done by phone Verbal offer is communicated to the Candidate Offer is made according to the minimum of the vacancy Vacancy is on a higher level

No
Minimum 1 year experience in the same position

Acquiring Functional Approval

Accepted candidates CVs are sent to the Approved Initial HR Interview dept. for technical interviews Rejected

Approved

Negative

Rejected
Offered is developed as a % over the minimum according to current employees experience

Negative

Selected Candidates are called to sign the Contract

Yes
Current Salary less than vacancys minimum

3 Days

No

2 Days
Notes: *Total Time Required to complete the whole Recruitment Process is 17-24 Days. *The time Required in the concerned department has not been considered. *Each recruiter is solely responsible for fil ing the CVs progress Excel sheet and for the sending the regret letters to the rejected candidates for each assignment

Selected Candidates formally Joins the Company

Regret Letters are sent to the rejected Candidates

Figure: Recruitment Process


22 22

7.2 Training and Development Process Brief: First they provide a training form for the employees who think that they need any training program or not. If yes, then they asked what type of training program they want to attend. Then organization will decide who will provide the program and what will be the process of that program. After that the head of that training program will brief the employees about the program.

Purpose: The purpose of this document is to provide the employee with the view about the training & development process exercised in Banglalink. The objective of the process is to ensure a regular and smooth interaction between HR and all departments stating training requirement to HR. It complements the general guidelines given in the Training Policy which was developed by the HR department and is available to everyone upon request. The process will be applied for all training and development activities within Banglalink. In order to facilitate understanding the HR Training Process is divided into two sub-processes are: A. Training & Development Planning Process B. Training Execution Process Process Details: Training and Development Process

A. TRAINING & DEVELOPMENT PLANNING PROCESS State training need through official APA Form: During the time of annual appraisal, the line manager is to reveal the individual development need at the specific place of APA form.The line manager will also indicate in which way this development need will be catered e.g. through training courses / seminar / workshop / on-thejob coaching / formal or informal counseling etc.The line manager will indicate by when this development initiative should be done and by whom. Consolidate feedback from Annual Performance Appraisal: HR will collect all signed APA form and then will consolidate training & development need. Analyze all data: All the feedback will then be consolidated department wise and HR will discuss and finalize the department need with respective HOD.

23 23

Prepare the Training Plan: On the basis of agreed development need, HR will prepare training planHR will review the department training plan with respective HOD and finalize the training plan. Based on this training plan, HRproposes the budget.Both the budget as well as the training plan will be sent for approval to the Head of HR.

Prepare the program brief: Discussing with the concerned line manager, a brief of each program will be prepared with the following information: The purpose of the program, Objective how the participants get benefits, Outline of the program, other admin detail date, venue, facilitator etc. Prepare the Training Manual: A complete Training Manual for the year will then be prepared and will be distributed to all line managers for their reference.This will also be available to our intranet. Finally HR along with line manager will execute and follow up the yearly training plan B. TRAINING EXECUTION PROCESS Training registration through official Form (Training Request Form): Roughly a month before the date of a planned training event, HR will prepare the participants list and complete the registration process with the specific form. Raise the RF: HR will raise all RF regarding training fee, venue and other logistics Invitation: HR invites the relevant participants along with all the admin information related to date, venue etc. Payment: HR will issue the GRS to Finance dept. advising them to prepare the cheque for the training cost. For overseas training, department Admin Assistant will coordinate with Finance & Admin dept. to complete all the travel formalities. Training undertaking: For overseas training, HR completes all the formalities getting the training undertaking from the participant as per policy.

24 24

Attending at the training program: The participants have to attend at the course timely and must take it seriously.They should own this as an opportunity and takes full advantages from a training course. Training Feedback from participants: After attending at the training course, the participant fills up the feedback form given to him/her and sends it to his/her manager. Training Feedback from Manager: Getting the training feedback from the participant, the manager sends a copy of it to HR. He also provides feedback on performance of the employee after having that training. Reference: Swim Lane Chart 8.1 Roles and Responsibilities Human Resources Department: Human Resources Department includes two broad processes. One is Training and Development Planning Process and another one is Training Execution Process. a) Training and Development Planning Process: At first they collect the data about the development needed by the employees from annual appraisal form. Then they combine all the information they got from the forms of the employees. After that they merge all the feedbacks from the forms. Then they analyze all the data. Base on all the data they prepare the training Plan, the program brief and the Training Manual. b) Training Execution Process: First they provide the training registration through official TR Form (Training Request Form). Then they give the invitation to the employees. Then they brief payment system, Training undertaking, the Training program, the system of getting the Training Feedback from participants and the last one is getting Training feedback from Manager.

Head of Department: First he acknowledges the training plan. Then he selects training programs (In house/Local/Abroad). And he discusses and plan for the functional program Trainee: First a trainee has to Sign the training under-taking with HR Department. After getting the confirmation from HR department he/she can able to attend the training program. After the training program he/she has to write a report to his/her direct reporter about his/her opinion on the training, benefits s/he achieved etc. on the form.

Reference: Swim Lane Chart 8.1

25 25

Swim Lane Chart: Training and Development Planning Process:

Training & Development Planning Process

HR HR

State Training Need through official TNA form by Oct.

HR consolidate all data and define departmental training need by Nov.

A1 A1

A2 A2 NO

Department Department

HR to consolidate data from Annual Performance Appraisal by Dec.

Approval from HOHR & CEO

Distribute to all line managers

YES A3 A3

HR HR

HR to analyze data from two sources and define organizational training need

Prioritize and define the draft programs

HR to plan the yearly program detail schedule

Prepare a brief of each of the program

Prepare Training Manual by January

HR along with line managers to execute and follow up the plan

A4 A4

A5 A5

A6 A6

A7 A7

TimeLine Line Time

90 Days 90 Days

Training Execution Process:


Training Execution Process

Registration: HR to prepare Training Request from duly signed B1 B1 B2 B2

HR to invite the participants with all admin details

HR HR

OVERSEAS

LOCAL

Finance Finance Department Department

HR to send memo to Finance to prepare Cheque B3 B3

Advice Finance to complete necessary formalities B4 B4

Training undertaking from participants

Department Department

HR HR

HR to follow up and define next step

Participants to attend the course

Participants to provide training feedback to direct report B6 B6

Line manager to send a copy to HR

Line Manager to provide feedback on performance of the employee after having the training

B5 B5

B7 B7

TimeLine Line Time

As per training requirement of the Department As per training requirement of the Department

26 26

Inputs and Outputs:


Training and Development Planning Process:
Training & Development Planning Process
Input Input
State Training Need through official TNA form by Oct.

Process Process
HR consolidate all data and define departmental training need by Nov. HR consolidate data from Annual Performance Appraisal also by Dec.

Output Output

HR analyzes data from two sources and define organizational training need

HR to plan the yearly program detail schedule

Prepare a brief of each of the program

Prepare Training Manual by January

HR along with line managers to execute and follow up the plan

Training Execution Process:


Training Execution Process
Input Input Process Process Output Output

HR to invite the participants with all admin details

Training undertaking from participants

Participants to attend the course

Participants to provide training feedback to direct report

Line manager to send a copy to HR

Line Manager to provide feedback on performance of the employee after having the training

HR to follow up and define next step

27 27

Banglalink Brand Portfolio

They basically have two main brand portfolios. These are: Prepaid: Desh Desh Rang Desh Ekrate Desh Ekrate Darun Desh Rang Prepaid Internet

Postpaid: Banglalink SME Banglalink business Banglalink postpaid PCO Call & Control PCO Postpaid Postpaid Internet

Finance

In terms of revenue, Banglalink's performance has been impressive with total revenues of Tk. 11.83 billion at the end of 1st half of 2010. Orascom Telecom Holding (OTH), the holding company of Banglalink recently announced its financial results for the 1st half of 2010. In the 1st half of 2010, due to a withdrawal of SIM tax subsidy by the major operators, the overall industry continued to experience a slowdown as connection prices were increased. Despite the rise in prices, Banglalink's subscriber base increased steadily and reached 11.04 million at the end of the 1st Half, which is a 17 per cent increase compared to the same time last year. The market share of Banglalink also went up to 23.7 per cent in the 1st half of 2010, as compared to 21.6 per cent during the same time last year. The average revenue per user has also reported an increase of 18 per cent in quarter two compared to the same time last year and an increase of 4 per cent compared to the previous quarter. All these positive performances have been the outcomes of the revenue enhancement initiatives aimed at the

28 28

existing base. Commenting on the recent achievements, the Chairman of OTH, Mr. Naguib Sawiris said, "Banglalink continues to grow very well with strong subscriber take up and stable average revenue per user; it is now stably earnings before interest, tax, depreciation and amoritization positive and has reached an impressive 40 per cent plus margin in Quarter 2.

10 Operations
10.1 Customer care 10.1.1 Banglalink sales & care centers Banglalink sales & care centre provides the following services: SIM replacement Transfer of ownership Change of address Itemized bill Bill payment through credit card Package migration

10.1.1.1 Banglalink call center Banglalink call centre provides service 24 hours, 7 days a week. 10.1.1.2 Banglalink Points Banglalink service points are available in several locations in the following regions: Dhaka south Dhaka north Bogra Barisal Chittagong Khulna Mymensingh Rajshahi Sylhet

29 29

10.2 VAS To promote their brand Banglalink offers a huge variety of Value Added Services. These are:

Healthlink Music Station Junction Voice adda Krishi Jiggyasha Babsha Jiggyasha Amar Tunes (Ring Back Tone Service) Ntrack: vehicle tracking system MCA (Missed Call Alert) i'info Namaz Alert Song Dedication i'top up (electronic recharge and bill payment service) Voice Mail Service Power Menu SMS Banking Friendfinder Call Block

Fax and Data Service News Service Yellow Pages Info Service i'bubble (Voice SMS) SMS (Text, Quotes & Jokes ...) Conference Call, Call Divert and Forwarding Ring tone, wallpaper and Logo download SMSemail Banglalink Messenger SMSadda (SMS Chat) Picture Messages International SMS SMS roaming Voice Portal GPRS Service (Mobile Internet) Stock Info Azan alert

10.3 Call Management Services

10.3.1 Banglalink Easy Divert Upon registering to this service, a subscriber can receive calls in another Banglalink number. charges: tk. 2 per SMS (excluding vat) 10.3.2 Voice Message A subscriber can use this service to record voice message and then send the message to a person using any operator.

30 30

Charges: sending voice message:

on-net (bl to bl): taka 1.00/voice message (excluding vat) off-net (bl to other operators): taka 1.50/voice message (excluding vat)

retrieving voice message:

taka 3/2 min (excluding vat)

10.3.3 Call block Rong subscribing to call block service, a person can:

Can create a "blacklist" of callers to whom he/she is not willing to communicate. Can create a "white list" by which he/she can choose the selected few who can call communicate. Have the option of shuffling between white list and blacklist. Can add 10 free numbers to blacklist / white list after subscribing. Can have SMS notification to inform blocked callers number and time of call. can deactivate /activate the service feature anytime without unsubscribing the service

10.3.4 Call me back This service enables all prepaid customers of Banglalink to send a maximum of 5 requests to another Banglalink number (prepaid and postpaid) to call him/her back if he/she has low credit balance. Only prepaid users having a balance of tk.0.15 to tk.1.00 will be able to send a call back request. Charges: Tk. 0.15 for every request

10.3.5 Missed call alert This service, upon subscribing, will notify a user via SMS all the calls made to him/her when his/her phone is unreachable or due to any of the reasons below: handset switched off out of network or coverage area

New features Monthly subscription service subscribers will enjoy the new features as default for no extra cost:

Caller notification: whereby calling parties will receive a SMS saying that the called party is available to receive calls when the called party is back into network. Out of office notification: whereby the calling party will receive a SMS saying the called party is not able to receive any call at that moment.

31 31

10.3.6 Conference call Bangalink post-paid and pre-paid users can use the conference call service to talk to more than one person at once. Charges: normal airtime rate apply for each of the conference calls separately.

Call waiting After registering to call waiting a subscriber can receive a second call while he is already talking to someone on the phone. The subscriber can hold, merge or switch to any of the two calls.

Caller line identification presentation Caller line identification presentation (clip) is a supplementary service that allows a subscriber to see the number of the caller on his/her mobile screen before answering the call. This is a default feature available and activation is not required for this service.

Data based services Banglalink internet Banglalink is providing two different GPRS packages p1: pay as you go - the charge for this service is bdt 0.02/kb for prepaid users and bdt 0.015/kb for postpaid users and call & control users. (excluding vat) p2: unlimited internet - the charge for this service is bdt 650/month (excluding vat). p6: 1 gb - the charge for this service is bdt 275/month (excluding vat).

Banglalink internet modem Banglalink introduced Banglalink internet modem which is available at only tk. 2000. Product details

modems are available at Banglalink Dhaka and Chittagong customer care centers additional refundable security deposit of tk. 750 has to be paid to avail this offer Unlimited internet (p2) package will be provided with this offer. bills will be postpaid as per regular p2 tariff, i.e. tk. 650 Banglalink internet modem is plug-n-play with one year warranty

32 32

Banglalink phonebackup

Banglalink phone backup is a service that safeguards all data of a mobile phone including contacts, calendar & tasks, SMS, photos, videos and audio. the phone backup service copies your mobile phones data in a secured manner to Banglalinks phone backup system, and also enables you to restore the saved data on your phone (new / existing) whenever you change your phone or in case you lose the data accidentally. client based package Packages (supports GPRS/edge enabled handset for rich & sync ml client) Backup options contact, SMS, backup options photos, videos, audio, calendar & tasks. to subscribe type backup and SMS to 6600 monthly subscription fee*tk. 20 SMS based package (supports all GPRS/nonGPRS enabled handset) Contact type reg and SMS to 6600 tk. 10

Vehicle tracking: ntrack Banglalink and nits service pvt. ltd., a sister concern of nitol-niloy group, signed an agreement on 9th September 2009 to jointly promote the ntrack vehicle tracking system. A special discount of 20% on device price and yearly service charges will be provided to Banglalink users. Major features of ntrack are

live tracking with street level mapping that will display address, speed and direction of the vehicle sms alerts for crossing speed limit, reaching pre-defined location, unauthorized route etc. remote security control and engine switching off to protect theft web interface to track the vehicle throughout Bangladesh fuel cost and mileage reports arrival and departure reports

Dhaka metropolitan police (DMP) head quarter has a monitoring tool at their end for ntrack with which they will be able to monitor any stolen car/vehicle if the device is installed in that car.

Stock info Banglalink stock info service is a mobile phone based application that allows Banglalink subscribers to get live stock information of Dhaka and Chittagong stock exchange. This application runs on java enabled handsets. service features

live information on DSE and CSE stock price of listed companies

33 33

summary of subscribed stocks in portfolio daily and weekly graphs on prices of individual companies latest news from DSE and CSE performance of market (top 5 gainers/losers) profit/loss calculation auto-scroll of latest prices from the portfolio stock price alert of predefined rate IPO result feedback

Azan alert Azan alert is java based software that can be downloaded by a wap-link push SMS and can be used in any java enabled handset. This software will provide the following facilities: current date asar time current time magrib time preferred location iftar time sahri time isha time fazr prayer time sahri and fazr time for the next day. johor time Azan alert can be localized according to the time-zone of 18 major cities of Bangladesh and also has a daylight saving formula which can be used all year round. Charges: the charge for this service will be tk.9 (excluding vat) Information based services Banglalink emergency In case of emergency situations, Banglalink customers will be able to dial *321*5# and sms asking for help will be sent (containing the customers current location) to previously defined emergency contact persons. The customers current location would be automatically included in the SMS through Bangalinks location based service.

Blood bank "Blood bank 8008" is basically a call center based service whereby Banglalink subscribers will be able to dial the short code 8008 and receive information/enquiries regarding the availability of blood including the location of nearest blood bank, hospitals or individual donors, etc. People who are interested to donate blood can also get information regarding donation campaigns.

34 34

Healthlink Through this service, Banglalink subscribers will now be able to get health counseling services through third party (managed by synesis it) call center. service features

professional medical consultancy health care information beauty tips

Banglalink jigyasha Krishi jigyasha 7676 Banglalink has introduced krishi jigyasha 7676 which will provide suggestions and answers to any queries related to agriculture, vegetable and fruit farming, poultry, livestock, fisheries etc. Babsha jigyasha 7677 Babsha jigyasha 7677 gives information on the following:

Access to finance: information relating to the availability of finance for operating or starting a new business. Business documentation process: Through this service existing and potential business owners will receive information on the processing of documents such as trade license, tin, tax certificate, etc.

I'info An SMS based subscription news service which provides current information on the following categories: sports - football, cricket, tennis etc. entertainment - updates from Cineplex, schedules from baily road, scoops from bollywood etc. technology - updates on latest computers, softwares, cell phones, space exploration etc.

Railway junction This service will allow Banglalink prepaid and postpaid subscribers to check information on the below features:

Destination wise train info - this will allow subscribers to know destination wise train information along with the train number, name of the train and departure time. Seat availability information - this will allow subscribers to know seat availability information along with the train departure time. Class wise ticket fare information - this will allow subscribers to know class wise train ticket fare. Train delay schedule - this will allow subscribers to know train schedule (if it is running

35 35

on delayed schedule). Charges: the service charge is taka. 3/SMS (excluding vat) Yellow pages Banglalink yellow pages provide information on airlines, banks, hospitals, embassies, restaurants, trains, travel offer, etc. by dialing 2727. information highlights

key tourist destinations & details about Bangladesh travel & tourism info - local & foreign package tours, tour operator and hotel contact Transportation information - transportation related information e.g. contacts, schedule, charges etc. entertainment | shopping | visiting spots foods | restaurant emergencies - district wise emergency contacts (Police, RAB, Hospital) special events and attractions upcoming trade shows in Bangladesh Useful link - important information like embassy address and contacts, money changer and others.

SMS By short messaging service Banglalink subscriber can receive information on the following categories: jokes updated cricket score detailed cricket score of a specific country horoscope emergency numbers phone number of taxi cab control office by company name weather report by city

International SMS Banglalink subscribers can send and receive SMS to other operators in foreign countries. It covers 172 countries, 644 operators in six continents.

Quran ivr Through this service, Banglalink customers will be able to listen to any Surah from the holy Quran with its tarjoma (Bengali translation).

36 36

Namaz alert Upon subscription a user will receive SMS alerts before fajr, johr, asr, maghrib and esha prayer times.

Mobile financial services Electronic money order with Bangladesh post office Banglalink partners with the Bangladesh post office (bpo) to launch electronic money order (emo) service through the post office branches all across the country.

Mobile train ticket Banglalink has launched mobile train ticket service in joint collaboration with cns limited and Bangladesh railway. Through this service, railway passengers now will be able to purchase their train ticket from their own Banglalink mobile phone as well as from approximately 500 "Banglalink mobile cash points" located at Dhaka and Chittagong.

Mobile bill-pay By mobile bill pay service Banglalink subscribers of Mymensingh and Rangpur can pay electricity bills from Banglalink mobile phone, at any time, 7 days a week or at the nearest bill-pay point that has been authorized by Banglalink.

Mobile remittance Beneficiaries with banglalink mobile connections will be able to open mobile wallet accounts either at dhaka bank or eastern bank from selected banglalink mobile cash points by submitting necessary identity documents and account opening forms. Mobile wallet account holders can receive the remittance directly in their mobile wallet account. If the beneficiaries do not have banglalink mobile connections, they can still receive the remittance by receiving a secured and unique transaction reference number which is forwarded to them by the sender. In that case, the beneficiaries will have to go to the designated banglalink mobile cash points with proof of identification and request for the disbursement by submitting the transaction reference number, the exact amount and the bank name.

37 37

Infrastructure Sharing Optical fiber network Nationwide Backbone

Dhaka metro

Tariff Selling unit: e1 (30 channel)


capacity from fiber optic/microwave backbone a discount may be considered depending on bulk, tenure of utilization, data/voice and type/category of client and the route of lease/sublease. e1 rent shall be calculated by giving a discount range up to 30% maximum monthly charge*/km bdt 250 bdt 200 remarks note to table - a in addition to (1)

slab slab in kilometers 1 0-50 2 51-100

38 38

3 101-200 bdt 160 in addition to (2) 4 201-300 bdt 130 in addition to (3) 5 301 and above bdt 95 in addition to (4) note to table - a: for any distance below 20 km, the maximum monthly charge will be bdt 5000/-. *excluding vat Selling unit: stm-1 (63 e1)

capacity from fiber optic/microwave backbone the rental shall be determined by multiplying the unit cost of 1 (one) e1 by 63

Note: stm-1 rent shall be calculated by giving a discount range up to 30% may be considered depending on bulk, tenure of utilization, data/voice and type/category of the client and the route of lease/sub-lease. this discount shall only be applicable in the same point-to-point link.

Selling unit: stm-4/8/16 (4 stm-1/8 stm-1/16 stm-1)


capacity from fiber optic/microwave backbone the rental shall be determined by multiplying the unit cost of 1 (one) stm-1 by 4/8/16

Note: stm-4/8/16 rent shall be calculated by giving a discount range up to 30% may be considered depending on bulk, tenure of utilization, data/voice and type/category of the client and the route of lease/sub-lease. this discount shall only be applicable in the same point-topoint link. Special tariff

Corporate Social Responsibility (CSR) cases: in special cases like CSR, Banglalink may provide special discounted pricing which are not to be treated as reference by any other organization or lease Cases of national interest: in cases of national interest, Banglalink may provide special discounted pricing on case to case basis which are not to be treated as reference by any other organization or lease

39 39

11 Corporate Social Responsibilities


8.1 Environment and Religious 8.1.1 Clean up Day During International Coastal Cleanup day mass people are engaged in removing trash and debris from different beaches and waterways of the world and generate awareness to change the behaviors that cause pollution. It is a threat to marine wildlife and ecosystems; and undermines tourism and economic activity, potentially threatening our food supply and human health. When we trash our ocean, we trash our life support system. Banglalink celebrated this years International Coastal Clean up Day, in association with Kewkradong Bangladesh, which is working as country coordinator for International Costal Cleanup. International Coastal Clean up Day was held on the 25th September in more than 90 countries. In Bangladesh, for the fourth consecutive year, Banglalink has supported the coastal clean up day. The event included a massive rally, beach cleaning and awareness generation among the tourists and locals. Thousands of people turned up during the event, showing their support to preserve and save the worlds longest sea beach. Volunteers from Universities, local schools and scouts were active during the clean up. Present at the event were Md. Gias Uddin Ahmed, Deputy Commissioner, Cox's Bazar - main guest, Gazi Ashraf Hossain Lipu, former National Cricket Captain - special guest. This International beach clean up day is the oldest voluntary event in the world and it generates huge awareness among mass. Through organizing International Coastal Cleanup Day we will be able to associate our corporate brand with the well being of environment and the tourism platform. 8.2 Hajj Pilgrims at Hajj Camp Every year, thousands of people from the Muslim community of Bangladesh gather at the Hajj Camp where they depart for Hajj. This is an excellent opportunity for Banglalink to do CSR activities and share the spirit with the Muslim community. In 2009, we provided free phone service, free drinking water and free bus service from Hajj camp to the airport for the Hajjis. We also provided the Hajj camp authority 50 trolleys. The activities were well accepted by the community as well as the nation. This year, around 70,000 hajjis are expected to avail the Hajj camp facilities. To continue with the good work, Banglalink is planning to sponsor the following facilities in the Hajj camp premises which are going to be organized by the Step Media Ltd.

40 40

Activities: 2 branded AC buses (40 seats) to provide transportation to the Hajj Pilgrims for 45 days. Branding of the AC buses. 3 branded water distribution zone (4ft X 6ft). Daily 3400 liters of drinking water in the distribution zone for 45 days. 6 BPs for water distribution for 45 days. 1 Phone counters with ACP, Ply, and Wood etc (4ftX6ft). 8,000 pcs Haji Kit bag. 15,000 pcs Wrist Belt. 1 pc Hajj office ACP indicator. 100 pcs Mid Island Branding (with wooden frame and solvent PVC) (3ft X 7ft). 3 pcs Signboard Fascia Change. 5,000 pcs Flag with stand. 1 pc Main Gate at Airport Road to Hajj Camp (45 days). 1 pc Gate at the Hajj Camp Venue - In (45 days). 1 pc Information booth. Backdrop/ Decoration/ Invitation Card for Opening Program. 6 pcs Long Festoons with slogans. 1 pc Citizen Charter board. 100 pcs Waiting Chairs for Hajis.

8.2 Culture and Heritage 8.2.1 Boat Race Banglalink sponsored Banglalink 5th Khulna Boat Race-2011 on the 30th October, 2010 at Rupsha Ghat near Khan Jahan Ali Bridge of Rupsha River in Lobonchora, Khulna. This is the fifth time, Banglalink has sponsored boat race in Khulna. Banglalinks support to this boat race, in partnership with Nagar shamajik O Sanskritik Kendra,Khulna - is in line with our continued endeavor to promote local culture and heritage. More than 2 lac spectators from all segments of the society had gathered to enjoy the Banglalink 5th Khulna Boat Race which was exciting & filled with intense competition. After the end of the race, the prize giving ceremony was held. Prizes were distributed by Chief Guest, Mr.Talukdar Abdul Khaleq, Honorable Mayor, Khulna City Corporation. Mr. Najrul Islam Monju, Honorable MP, Mr. Md Babul Haque, Regional Commercial Head, Banglalink, Khulna, Mr.Md Moshiur Rahman, Division Commissioner, Khulna, Commodore S Imran (ND) PSC, BN, Khulna Shipyard Ltd, Mr. Jomsher Ahmed Khandker, DC, Khulna were also present among the

41 41

special guests. The event was presided by Mr. Maruf Rashid, President, Nagar Shamajik O Sanskritik Kendra, and Khulna. The event proved to be a reunion for the mass people of entire Khulna Division. A total of 10 boats participated in the competition. Each boat was consisted of 70-75 rowers. The exciting boat race included three laps from no. 1 Rupsha custom ferry ghat to Khan Jahan Ali Bridge. The beautiful long boats were colorfully decorated and in diversified shapes that pierced through the wavy water of Rupsha River. Association of Banglalink with this event this year has further reinforced our position in the national cultural arena.

8.2.2 Death Anniversary of Lalon Banglalink has sponsored 121st Death Anniversary of Lalon at Lalon Complex, Cheuria, Kumerkhali, Kushtia from 16th October to 20th October, 2011. This is a traditional cultural festival of national level. This fair Lalon Mela has already been established as one of the largest cultural festivals of the country. This gigantic fair was first organized 100 years back to observe the death anniversary of legendary BAUL Music king Fakir Lalon Shah in the 3rd week of October. Lalon Shah is the icon of baul music (type of folk song) in Bangladesh & India. He is being considered as the founder of the Baul music. This is the 4th consecutive year Banglalink has sponsored the event. Primary objective of sponsoring Lalon Mela is to portray banglalink as a socially responsible corporate to promote and generate awareness of the local national events. Making the countrymen feel the difference and bringing the national culture to the new generation. The five day long event included Folk Music Festival by the bauls with the participation of famous artists and trade fair etc. As per the local sources, during the 5 days event more than 1.5 Lac visitors attended. The event was inaugurated by Mr. Abul Kalam Azad, Honorable Minister, Ministry of Information and Cultural Affairs, Peoples Republic of Bangladesh. Mrs. Monnujan Sufian, Honorable State Minister, Ministry of Labor and Employment, Peoples Republic of Bangladesh, Mrs. Sultana Tarun, Honorable MP, Kushtia 4, Mr. Zunaid Ahmed, Honorable MP, Nator 3, Mr. Md Abdul Mannan, DC, Kushtia, Mr. Md. Shahabuddin Khan BPM, Police Super, Kushtia, Dr. Shamsujjaman Khan, Director, Bangla Academy, Dhaka, Dr. M Alauddin, Vice Chancellor, Islamic University, Kushtia, Mr. Md. Taijal Ali Khan, Secretary, Lalon Academy, Mr. Rashed Hasan, Assistant Manager, PR & Communication, Banglalink were also present as special guests. Lalon Mela is a common platform where mass people from all age, race religion and income level participate. Not only the participants from the region attended but

42 42

also devotees from the entire country & foreign nations were there. Association of Banglalink with this event this year has further reinforced our position in the national cultural arena.

12 BCG GrowthShare Matrix

GrameenPhone had become a leader, a star, in the market soon after it entered the industry. While it took the company nearly five years from its start in 1997 to build a subscriber base of 500,000 the company has been growing fast since then. While Robi has been in the market as long as GrameenPhone has, it had failed to take the aggressive growth strategies that GP had used from the beginning, such as heavy promotion to build brand loyalty. It grew quite slowly and tried to improve their technology and network slowly without creating too much hype. However, Robi has stepped up its promotional activities and is fast gathering more and more market share. Hence, with an impressive growth rate of nearly 200%, this question mark may become a star not too far in the future. Banglalink was as good as dead, and thus, a dog (even in a high growth market) while it operated under the brand name Sheba. However, with the change in ownership, it is giving the star and the second operator of the country a run for its money. While it may seem too ambitious saying that it would overtake the leader anytime soon, it is certainly a possibility. Considering the fact that it is setting up BTS towers at a rate faster than its competitors and thus trying to repair its image as the worst network provider, plans to have all 61 districts covered by the end of the year, which took others years to build, it shows their aggressive stance in acquiring market share. The growth in subscriber base certainly reflects this aggressive positioning. It took Banglalink merely 4 months to build a subscriber base of 400,000, while it took nearly five years for its largest competitor to build a subscriber base of 500,000. Hence, while both Robi and Banglalink are still question marks in the model they are both giving the star of the market a hard time, and may soon displace it, if it does not do something soon about its packages. It is difficult to map CityCell using the BCG matrix, mostly because it has a very low relative market share and a very poor growth rate in an industry with impressive growth rate and hence falls in the underdeveloped category. This may, however, be explained away with the fact that CityCell operates through the use of CDMA technology while the rest of the market is following the GSM technology, with GrameenPhone having just moved into GPRS & EDGE recently. However, with the purchase of PBTL by SingTel for an amount of nearly $60 million,

43 43

CityCell may be in for some expansion and show signs of change in the years to come. With only 250,000 subscribers, Teletalk has a relative market share that falls below 0.1 and hence does not fall into any of the quadrants. Moreover, while the growth rate of Teletalk indicates that it may overtake CityCell soon, with the litigation, it is under, and expansion plans of CityCell, it is still in question.

STARS Grameen Phone

Question Mark Banglalink Robi

Market Growth Rate


Cash Cow Dogs Citycell Teletalk Warid Telecom

Relative Market share

Figure: BCG Matrix

44 44

13 SWOT Analysis
4.1 Strengths

Huge capital investment: As mentioned earlier, Orascom Telecom has great plans for Banglalink. Wherever OTH has gone, it has become the industry leader there or is on its way there. A possible explanation is that the organization kicks of its companies with a huge capital outlay to help get rid of or solve all the hitches. Expertise: As mentioned earlier, OTH had over 1000 people, including 15 experts, working on the infrastructure to get the company started in a record four months. These experts, with several years of experience in the telecom industry, now help in the day-to-day operation of the business. Tight control over sales process: Many people in the industry do not know the sales process, since it is dealt by their distributors and dealers. However, with the Direct Sales Booth, the people involved know the sales process intimately and are responsible for achieving the sales target and project implementation, thus giving the company a strong control over the process.

4.2

Weaknesses

Network: The greatest weakness of Banglalink and also the most widely criticized service is its network. While the reception is quite clear when the user is out of doors, once inside, the reception breaks up. The worst part is the company has entered a market where the industry leader has been reigning supreme for years now and people are bound to compare the leaders services with Banglalinks performance, even if it is fairly new to the market. People tend to forget that it had taken the leader more than three years since its start to provide its subscribers with a decent connection; hence it is with Grameens present performance that Banglalink is compared and sure enough the latter does not fare well.

45 45

Unorganized structure: OTH bought off Sheba (Pvt.) Limited September 2004 and immediately started changing the structure of the loosing concern. They are constantly recruiting people, adding/deleting levels to the organ gram. Thus, the environment is constantly chaotic, with many people not knowing who to contact or whom to report to and who is responsible for what. This takes away time and energy away from the selling activities. Inadequate human resources: While many people drop off their CVs at the office on a regular basis, finding sufficient numbers of people, with the correct qualifications, has become hard to find. Hence, a handful of people are doing the work of many leading to back log of work. Bureaucracy: The new management is trying to create a system where each individual is responsible and accountable for his duties. While it is a good idea, it has also created a bottleneck at the administrative & financial level, where work gets stuck and stays stuck until all papers are properly signed and taken care of.

4.3

Opportunities

Re-invent itself: As mentioned earlier, the company created a strong buzz when it entered the market. Previously an unknown entity, many people now know of the existence of Orascom Telecom. They have done their studies and know that OTH stands for success. Thus, the people are ready to see Banglalink as a total different entity from its predecessor and are willing to give it another chance to re-invent its image in the market; not an issue to be taken lightly by the company

4.4

Threats

Price wars: While in the true sense it had been Banglalink who started this price war with its M2M package, it has created a series of price cuts that many cannot afford. After eight years of high call charges, Grameen Phone has finally decreased its rates.

46 46

BTTB has also entered this battle with Teletalk Bangladesh Limited. With free T&T incoming and outgoing, this is sure to become popular once it gains access to other operators networks. Tax: The country's mobile telecom operators said tax on SIM and mobile handsets in the proposed national budget is the biggest barrier to the telecom sector growth and demanded withdrawal of those to materialize the government's dream to establish digital Bangladesh.

14 Recommendation

Banglalink is company with some substantial internal strength and some weaknesses as well. However, their weaknesses are nothing that cannot be turned into strengths. For the last half of a decade they have been the cost leaders of Bangladeshs mobile phone market. But recently, after the arrival of Warid, they are facing the threat of losing their title of market cost leaders. They already have control over a good share of the market. If the coupled that with a network coverage rivaling that of Grameen Phones they will be able to get a much more significant portion of the market. Hence, we believe, an Aggressive Strategy should be implemented where they invest to improve their network coverage and therefore really give GP a run for their money.

47 47

You might also like