Executive Summary

Grameenphone was offered a cellular license in Bangladesh by the ministry of Post and
Telecommunications on November 28, 1996. The Company launched its service on March 26,
1997, the Independent Day of Bangladesh. 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 service in the rural areas.
Grameenphone builds continuous coverage, cell after cell. While the intensity of coverage may
vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage
is applied throughout GrameenPhones network.
The GSM Association at the GSM Congress in Cannes, France gave the GSM in the Community
Award it in February 2000. It also received the Commonwealth Innovation Award in 2003 and
the Petersburg Prize awarded by the Gateway Foundation in 2005.
Market Research and Development Department (MRD) is a vital part of Grameenphone in terms
of its importance and role. The central innovative department of Grameenphone is MRD. This
department facilitates communication between the different departments about existing and new
products / packages of Grameenphone. MRD also manages and co-ordinates information about
different products. MRD evaluate new products.
Customer care is making the bridge between the customers and company. Besides Sales division
it is the only department who deals customers directly. Saes department procures the business
and Customer Care keeps the business with the company for long period. Once relationship is
established Customer Care is doing the business with the subscribers. It works with the objective
to meet all kinds of queries from customer and provides the optimum solutions. It works to ensure
customers satisfaction and also to motivate the people in GrameenPhone service.
HR Management Information System:
HR-MIS Functions involve
To maintain & update employee database

Maintain employee related different statistics

Any other works which requires updating employee data.

Though job has been classified and assigned according to the nature of the function of HR
Department, the job is accomplished and the responsibility is carried out co-operatively.
Work Force of the Finance Department:
Worming team of this department consist a total nineteen members including Executive Manager,
Finance who is responsible for overall and inter-departmental management of this department.
For overall supervising and proper internal control purpose finance department device in four

segments where a several section as required based on work volume and manager (individuals)
is responsible for all activities performed by the sections.
Telecommunications performance in Bangladesh needs radical improvement to be spurred by
deregulation, market liberalization, competition and training. Although some progress has been
made recently toward private participation in the sector and separation the regulatory agency
from BTTB, the operator, the public has yet to reap benefits. The Government has recently
launched and effort to attract foreign investment in this sector, but has yet to take the bold step of
fully opening the field to private investors and operators.
At the end of the 20th century, the world is witnessing an explosion in the telecommunication and
information society, especially the rapid growth of the Internet and mobile communications, the
agreement of the World Trade Organization (WTO) on basic telecommunications, the world wide
trend of liberalization, competition, globalization and the convergence of technology and services.
Introduction
Origin of the report
Thesis

Paper

submission

is

part

of

the

course

for

the

BBA

students

of Business Administration. This report is a requirement of the BBA program. Assigned by the
thesis supervisor, this report is also prepared based on the project assigned by Distribution
department, Sales and Marketing Division of GrameenPhone Ltd.
Background
During the early Nineties the Telecom sector in Bangladesh was severely under developed when
the market was monopolized by the state owned operator, BTTB (Bangladesh Telegraph and
Telephone Board). BTTB provided only fixed line telephone services, which was heavily skewed
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. The granting of
a paging 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 first granted the operating license as mobile phone operator in 1993, and
was joined by three other GSM mobile operators namely GrameenPhone, Aktel, Sheba telecom
(Banglalink), Teletalk in 1996, 1997, 1998, and 2005 respectively.
GrameenPhone (GP) launched its mobile phone services on March 26, 1997 and since then has
become the largest mobile phone operator in the country. Its number of subscribers has grown
rapidly, as has its coverage throughout the country. The aim of GrameenPhone is to provide
affordable mobile telephone facilities in urban and rural areas of the country. By 2005, GP plans
to bring the whole country under its coverage. 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.
Accordingly, GP is contemplating on commissioning a research that would cover both the telecom
sector and cellular industry to identify and analyze the technology, trend, change, growth, market
share and competition in the cellular industry.
Problem statement
At present there are five mobile phone operators and one state-run fixed line operator providing
telecommunication service in Bangladesh.
They are

Pacific Bangladesh Telecom Limited

T.M.International (Bangladesh) Ltd.

GrameenPhone

Sheba Telecom (Banglalink).

Taletalk Bangladesh
Operators have used different strategies to penetrate in to this huge unmet market. Little
research study on the telecom sector with particular emphasis on the cellular industry of
Bangladesh has been carried out so far that can provide substantial market information about this
rapidly growing industry.
The market intelligence of respective operator companies reaches out to gather relevant
information, which remains highly confidential and exclusive from one another. Under the above
circumstances, the problem statement would be
To know about the current market scenario and future growth prospect of the cellular
industry in the telecom sector of Bangladesh and also Evaluating performance of
GrameenPhone as the leading cellular Company in Bangladesh.
Objective
The broad and over all objective of this report is to provide an over view of the learning process
as a new employee at Grameen Phone Ltd. during the organizational attachment period so that
the theoretical learning can be related with the real life business situation.
This report aims to achieve the following specific objectives:
Extensively describe Grameen Phone Ltd. (GP) as an organization providing cellular phone
service in Bangladesh, its products and services.
Identify GPs achievements, reasons behind its success, do SWOT and situational analysis.
Illustrate the telecom sector of Bangladesh with facts and figures.
To depict the telecommunication industry of Bangladesh; its participants; past, present and
future scenario.

 To discern how the demand for mobile phone emerged and the cellular industry evolved in this
land.
To portray and analyze the technology, trend, change, growth, market share and competition in
the cellular industry.
Make a projection of the future development and potentials, competitive situation of the
cellular/mobile telecommunication industry.
To identify and prepare SWOT analysis for all the operators in the Bangladesh telecom sector.
To delineate how to provide effective telecommunications as a key to economic success.
To identify the plethora of bottlenecks faced by the mobile operators and ways to remove all
those hindrances.
Scope of the study
This report renders a close analytical look at the telecommunication sector of Bangladesh with
main focus and emphasis on the cellular industry, its growth and development since its inception.
It also sheds light on the future outlook of the cellular market, its growth prospects and potentials.
The report is written from the point of view of Grameen Phone, as this report is expected to
augment the market intelligence and knowledge base of the market research and development
department of Grameen Phone Ltd.
Methodology
Type of business research used in this report is of descriptive nature. Through this descriptive
research this report seeks to determine the answers to whom, what, where and how can it be
possible all the questions of the cellular industry of Bangladesh. Secondary data analysis was
selected as the basic research method.
Data Collection
Data for this report has been extracted from secondary sources, as the descriptive nature of the
study to prepare this report calls in for existing facts and information compilation.
Source of Secondary Data
Majority of the secondary data was obtained from the Market Research and Development
Department of Grameen Phone Ltd. Annual reports of other Mobile operators, their officials web
sites, reports done on the telecommunication sectors and information obtained from the Internet,
augmented this report to take a comprehensive shape.
Data collection Instrument
In-depth interviews were conducted with the key marketing and sales personnel of the mobile
operators to obtain ideas about the market, current happenings, developments, competition,

problems, hazards and challenges faced by them operating in the fastest growing technological
industry of Bangladesh.
Data processing and analysis
Collected information was processed with the aid of MS Excel computer software. Detailed
analysis, working variables, variables, future projections and working definitions are incorporated
in the report.
Limitations
The major limitation factor for this report was primarily the reluctance and strict adherence to
confidentiality maintenance attitude shown by the officials of mobile operators. Most of the
calculations had to be made taking GPs figures as the industry average. Most of the relevant
literature and study materials on the telecom sector were not updated, and no comprehensive indepth study on the cellular industry could be found. The analysis and future projections were
computed with the simplified trend analysis by MS Excel. Use of other professional or statistical
software would generate reports with higher level of precision and lower standard deviation.
Furthermore, some information was withheld to retain confidentiality of the companies. So
appropriate verifications of some information could not be made.
GrameenPhone Limited: An overview
About Grameen Phone
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.
Historical Background
GrameenPhone was offered a cellular license in Bangladesh by the Ministry of Posts and
Telecommunications on November 28, 1996. The Company launched its service on March 26,
1997, the Independence Day of Bangladesh.
In 1996, Bangladesh was preparing to auction off private cell phone licenses to four companies.
So at the behest of Dr. Muhammad Yunus (Grameen Banks founder) but completely independent
of Grameen Bank, anot-for-profit private company called Grameen Telecom was created.
Grameen Telecom, in turn, created afor-profit company called Grameen Phone, found a foreign
partner, and put in a bid; Grameen Phone received one of the four licenses. Grameen Phones
total capitalization was US$120,000,000, including around US$50 million from IFC/CDC, and the
Asian Development Bank (ADB). It also received US$60 million in equity from the four Grameen

Phone private partners. These were the Norwegian Telenor with a 51% share, Marubeni of Japan
with a 9.5% share, and the American Gonophone at 4.5%. Grameen Phones fourth partner is
Grameen Telecom (with 35%), and Grameen Telecom borrowed US$10.6 million from the Open
Society Institute to set up Village Phone.
Grameen Phone launched service in urban Dhaka on March 26, 1997. It 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.
But in 2005, there are only two shareholders which are Telenor (62%) and Grameen Telecom
(38%).
Three important and interesting structural aspects of operation on the largest scale are:
First, that the not-for-profit Grameen Telecom actually owns the for-profit Grameen Phone. The
reason for this structure is that Grameen wants Grameen bank members impoverished women
who borrow from Grameen Bank to become owners of the profit-making Grameen Phone.
Second, once GP becomes profitable, GT will sell its GP shares to GB members.
Third is an understanding not made explicit in any legally binding contract but arrived at in the
shareholders agreement that after 6 years of GP operation, Telenor and GT will actually switch
ownership positions: Grameen Telecom will sell its 38% share to Telenor and Telenor will sell its
62% share to Grameen Telecom, which will thus become the dominant partner and true manager
of the system. Grameen Phone is thus an unofficial, non-traditional form of Build, Operate, and
Transfer.
GrameenPhone might have been born in Bangladesh, but soon it is likely to join the
international cellular jargon. GSM MoU Association at GSM World Congress in Cannes where
many villagers made their first-ever call using pre-paid, recently rewarded rural cellular
marketing, by Vodaphone in South Africa. GrameenPhone, the unique cellular operator from
Bangladesh, also made an impressive presentation at Cannes.

Founding Partners of GrameenPhone

GrameenPhone is a joint venture company comprising of:

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.
These two companies own shares of GrameenPhone in the following manner:
Company

Percentage of share (%)

Telenor

62.0

Grameen Telecom

38.0

Mission, Vision, Objectives & Strategies of GrameenPhone

Company Vision
We exist to help our customers get the full benefit of communication services in their daily lives.
We want to make it easy for customers to get what they want, when they want it.
Company Mission
GrameenPhone Ltd. aims at providing reliable, widespread, convenient mobile and cost effective
telephone services to the people in Bangladesh irrespective of where they live. Such services will
also help Bangladesh keep pace with other countries including those in South Africa region and
reduce her existing disparity in telecom services between urban and rural areas.
Objectives of GrameenPhone
Grameen Phones basic strategy is coverage of both urban and rural areas. The Company has
devised its strategies so that it earns healthy returns for its shareholders and at the same time,
contributes to genuine development of the country. In short, it pursues a dual strategy of good
business and good

development.

Serving the mass market is one of GPs primary goals. By serving the general public as opposed
to niche markets, the Company plans to achieve economies of scale and healthy profits. At the
same time, service to the general public means connectivity to a wider population and general
economic development of the country. In contrast to the island strategy followed by some
companies, which involves connecting isolated islands of urban coverage through transmission
links, GrameenPhone builds continuous coverage, cell after cell. While the intensity of coverage
may vary from area to area depending on market conditions, the basic strategy of cell-to-cell
coverage is applied throughout Grameen Phones network. In addition, GP has positioned itself to
capitalize on the declining prices of handsets, making its goal to serve the general public realistic.
Company Strategy
Grameen Phones basic strategy is coverage of both urban and rural areas. In contrast to the
island strategy followed by some companies, which involves connecting isolated islands of

urban coverage through transmission links. GrameenPhone builds continuous coverage, cell
after cell. While the intensity of coverage may vary from area to area depending on market
conditions, the basic strategy of cell-to-cell coverage is applied throughout Grameen Phones
network.
Company Service
GrameenPhone believes in service, a service that leads to good business and good
development. Telephony helps people work together, raising their productivity. This gain in
productivity is development, which in turn enables them to afford a telephone service, generating
a good business. Thus development and business go together.
Service for the Rural Poor
Establishing a nation wide network gives fair access to all geographical areas. From a business
point of view, this strategy serves both the long distances as well as the rural markets. This
emphasis on rural coverage brings a much-needed infrastructure in the underdeveloped rural
areas. In collaboration with Grameen Bank, which provides micro-credit only to the rural poor, GP
utilizes the bank borrowers to retail telecom services in the rural areas. Leveraging on Grameen
Bank borrowers reduces the distribution costs of Grameen Phones rural services, contributing to
the profitability of this segment.
By bringing electronic connectivity to rural Bangladesh, GrameenPhone is bringing the digital
revolution to the doorsteps of the rural poor and unconnected.
Village Phone Program
The internationally acclaimed Village Phone Program (VPP) continued to grow rapidly during
2006, providing telecommunications services in rural areas all over Bangladesh, covering even
the remote off-shore islands in the Bay of Bengal.
Managed by Grameen Telecom in cooperation with Grameen Bank and GrameenPhone, the VPP
further expanded to add nearly another 100,000 new VP subscribers, with the total year-end
figure standing at around 191,000 in 2005.
As of today, there are more than 260,000 VP operators in over 50,000 villages in 439 Upazilas
(sub-districts) of the country. Amongst GP subscribers, VP operators yielded the highest average
revenue per month.
Commencing its operation in March 1997, the VPP is a unique initiative to provide
telecommunications facilities in remote, rural areas where no such service was available before.
It has brought about a quiet revolution in mobile telephony in Bangladesh, by putting cell phones
in the hands of the rural poor, many of them women, who had never seen a telephone before.

The Village Phones work as an owner-operated pay phone. It has created a good income-earning
opportunity for the VP operators, mostly poor women who are borrower members of Grameen
Bank. VPP has received many international awards while it has also been extensively featured in
the international media over the years and documented by researchers both at home and abroad.
It was given the GSM in the Community Award by the GSM Association at the GSM Congress in
Cannes, France in February 2000. It also received the Commonwealth Innovation Award in
2003 and the Petersburg Prize awarded by the Gateway Foundation in 2005.
The Village Phone Program has also been replicated in a number of countries including Uganda
and Rwanda in Africa.
Research studies have found that the introduction of Village Phones has made a tremendous
social and economic impact in the rural areas, creating a substantial consumer surplus for the
users. It directly increases the household income of the Village Phone operator.
Findings showed that this modern technology has increased the social standing of the Village
Phone Lady. The various studies have found that one of the most important contributions of
Village Phones was to make market information accessible to all. It has also substantially
empowered the women from the rural households, who can now access numerous services
provided by the government and non-government organizations through a simple telephone call
from her village.
Products of GrameenPhone
The products of Grameen Phone can be characterized as:
Post Paid
Pre-Paid
Post Paid
Under Post Paid Service there are 2 products:
Xplore

Xplore-1 connects to BTTB local, BTTB-NWD (Nationwide Dialing), ISD (International Standard
Dialing), all Grameen Phone mobiles, other mobiles and receives calls from the same. Recently
all xplore-1 have been given the TNT incoming free that enables a Explore-1 Package holder to
receive from anywhere in the country. Pre activate EDGE service. Monthly line rent tk.100. With
the new xplore postpaid, discover the pleasure of doing much more. Packed with a treasure of
new features and facilities it keeps you in touch with your loved ones and gives you access to
unlimited information and entertainment. Xplore-1 postpaid sets you free. xplore Package 1 gives
you Economy ISD (012) the opportunity to keep in touch with your near and dear ones who are
living abroad.

Xplore 2
This unique product of GP has been launched on this April as the Baishakhi Offer. Connects to
BTTB local, BTTB-NWD (Nationwide Dialing), ISD (International Standard Dialing), all
GrameenPhone mobiles, other mobiles and receives calls from the same. 1 Second pulse. Pre
activate EDGE service. Monthly package bundle tk.1000. With the new xplore-2 postpaid,
discover the pleasure of doing much more. Packed with a treasure of new features and facilities it
keeps you in touch with your loved ones and gives you access to unlimited information and
entertainment. Xplore-2 postpaid sets you free. xplore Package 2 gives you Economy ISD (012)
the opportunity to keep in touch with your near and dear ones who are living abroad.
Pre-Paid
Smile pre-paid
Introduction of Grameen Phones new Smile pre-Paid Service is another development of mobile
telephony in Bangladesh. Smile has National Roaming facility with gp to gp Tk. 2 per minute and
gp

to

other

Tk.

2.5

minute.

There

is

no

incoming

charge.

This service helps the subscriber to control costs. It frees the subscriber from the hassles of
paying bills, security deposits and line rents. But it contains nearly all services available in other
GP products. Subscribers can subscribe the service from all GP authorized points of sale.
To start with, one has to buy the Smile Starter Kit and a handset. The Starter kit contains a preactivated SIM card and a Green Smile card. The Starter kit costs Tk. 200, & Tk. 50 free talktime
with activation (valid for 15 days).
Smile pre-paid (Standard)
Under

the

prepaid

system

this

is

an

unique

feature

of

GrameenPhone.

Smile pre-paid standard connects to BTTB local, BTTB-NWD (Nationwide Dialing), ISD
(International Standard Dialing), all Grameen Phone mobiles, other mobiles and receives calls
from the same. All Smile pre-paid standard phones have been given the mobility facility that
enables a Smile pre-paid standard mobile holder to receive and send calls from anywhere in the
World.
djuice
djuice is a pre-paid mobile to mobile product. In addition to the basic cellular options, it has some
additional lifestyle benefits, specially tailored for the target segment. It contains many extra
features that not include the other prepaid segment. It is mainly designed for young generation.
And Grameenphone has done the excellent job here. They have already gained more than 1
million subscribers.
Business Solution

Business Solutions is a complete, quality business communications service from Grameenphone

designed especially for the business community in Bangladesh. Our Business Solutions team is
here to help provide you with customized telecommunications solutions through consultation with
you.
Table: the total number of products that are existing in the market today
Serial
1

Product
Xplore-1

Connects to

Receives From

Mobile, BTTB Local, *NWD and

Mobile, BTTB Local, NWD and ISD

**ISD
3

Xplore-2

Mobile, ISD, NWD and Local

Mobile, ISD, NWD and Local

Smile Pre-Paid

Mobile

Mobile

Smile Pre-Paid (Standard)

Mobile, ISD, NWD and Local

Mobile, ISD, NWD and Local

Djuice

Mobile,

Mobile,

Business Solution

Mobile, ISD, NWD and Local

Mobile, ISD, NWD and Local

Village Phone

Mobile, ISD, NWD and Local

Mobile, ISD, NWD and Local

**NWD-Nationwide Dialing, **ISD-International Standard Dialing

The GP xplore-1, xplore-2, Smile pre-paid standard, Smile pre-paid, subscribers enjoy a number
of GSM Features and Value Added Services (VAS):
GSM Features of GrameenPhone
GrameenPhone subscribers enjoy the following GSM features without bearing any additional
costs:
Caller ID: Display of the phone number of an incoming call in your handset before the call is
answered.
Call Waiting: While talking to the first caller, you will hear a special tone informing you about the
second call on the line. At that moment you can put the first caller on hold and talk to the second
caller.
Call Conference: Receiving calls from multiple callers can be supplemented by joining these
multiple callers so as to enable them to talk to each other. You will be able to communicate with a
group consisting of maximum five callers.
Call Divert: Call Divert lets you redirect or re-route your call to another GrameenPhone mobile
or any other fixed (if you have BTTB connectivity) or mobile phone.

Call Barring: Enables you to restrict certain types of calls to be made from your mobile. This
feature is especially important for security purposes.
Value Added Services
The following additional services are available upon request:
Voice

Mail

VMS
It

is

provides

you

Service

a
with

unique

personal

electronic

(VMS)

answering
mail

box

in

our

machine.
voice

mail

center.

It records your personalized greetings as well as stores your incoming voice messages.
It

records

incoming

Outside

voice

messages

GPs

if

coverage

you
area

are:
or

Busy

or

simply switched off your mobile.

It

provides

24-hour

automatic

secretarial

service

Makes one available to his calling person anytime

Short

Message

SMS

in

your

Service

mobile

acts

like

(SMS)

an

advanced

pager.

You can send and receive text messages of up to 160 characters, directly from one GP mobile
to another GP mobile.
Fax

and

Data

Service

(currently

available

only

to

corporate

clients):

You can use your mobile phone attached to a computer to send faxes or transfer data.
No

need

to

have

connection

with

fixed

line.

You can use this service even when you are on the move within GPs coverage area.
Internet Services
Grameenphone EDGE
Grameenphone brings you EDGE (Enhanced Data Rates for Global Evolution), an advanced
mobile technology which enables high-speed mobile Internet and data services. It is about 8
times faster than GPRS.
Benefits of EDGE:
With

EDGE,

you

can

Get Internet access any time, remain connected all the time wherever you are, and have a great
web surfing experience.
Surf
Browse
Send

the

Internet
contents

and

receive

with
more

super-fast
easily
e-mails

speed
on

through

from

your

handset.

your

mobile

phone.

your

mobile

phone.

Send

and

receive

multimedia

(pictures,

sounds)

messages.

Download better quality contents: high-quality ring tones, wallpapers, songs, movie clips, videos,
animated logos, and themes that will let you customize your handset in many ways.
Receive incoming calls even while browsing. Once the call ends, your data transfer will resume
automatically

from

And

the

place

lots

it

stopped.
more

Note: GPRS handset users will also be able to enjoy these services.
Following are the Products and services that have been successful:

Xplore-1 & 2, the oldest product of GrameenPhone but now GP has redefine the package &

retains its popularity through its full connectivity to all networks including fixed line telephony
services.
Smile Pre-Paid (Standard), the pre paid product of GrameenPhone retains its popularity

through its full connectivity to all networks including fixed line telephony services. As its a Pre-paid
service, no monthly rent required and instant use due to pre-activation, no hassles of bill payment.
Smile Pre-Paid, because of Low flat tariff and nationwide mobility, its a Pre-paid service, no

monthly rent required and instant use due to pre-activation, no hassles of bill payment.
Information Service through mobile because of easy access, interesting theme, and

reasonable rate and for being new and innovative.

Village phone because of use of Grameen Banks borrower network and for having access to
BTTB & ISD.

Following are the Products and services that have not been successful:

Voice Mail service due to language barrier, lack of promotions, lack of know how about

interactive services and also because people are reluctant to speak to a machine.
Usage of Short Message Service is still low due to lack of promotion, lack of knowledge of

English, unawareness of handset configuration and un-ergonomic nature of keypad.

Network problem when the many user access to the network because the capability is not
increased of the network but customer is increased day by day.

Organization Structure of Grameen Phone Ltd.

ORGANOGRAM OF
Grameen Phone Ltd.
Departments and Divisions
Recently management has brought a change in the organizational structure in view of need of
time. As of the recent change, line function of the company comprises of the 3 different tasks.
These are:

Build & Operate

Sell

Care

Accordingly 3 main divisions were identified as the line organization part of the company. These
are:

Technical Division
Sales and Marketing Division and
Customer Relation Division.

Besides there are:

Finance Division.

Personnel and Organization Division.

Technical Division
Technical division is split into two parts:

Roll -Out Division: Responsible for building the network.

Operations Divisions: Responsible for operation and maintenance of the network.

Organ gram of Technical Division
The Roll-Out Division
The Roll-Out division has two sections, they are:

Planning Section and

Implementation section

GRIP
GRIP represents for GrameenPhone Railway Integration project. This is a special project to
integrate the telecom department of railway (BRTS) and GrameenPhone. This project will end up
with a merger with Roll Out and Operations division.
Responsibilities of the Planning

Responsible for mainly Base Station related planning

Responsible for planning of data transmission equipment from Base Station to switch

Responsible for BSC (Base Station Controller) and MSC (Mobile Switch Center) related

planning.
Responsible for timely supply of equipment
Responsible for negotiating with home owner for building Base Station on the roofResponsible for Roaming agreement with other countries.
Responsible for construction & maintenance of Base station room. Antenna pipe, Power supply
etc.

Responsible for installation of Base Station Hardware.

Responsible for start-up and pilot operation of Base Station.

Responsibilities of the Implementation section

Responsibilities of the Operations Divisions are

Responsible for operation and maintenance of Switch (MSC)

Responsible for operation and maintenance of Base station

Responsible for overall management of the network.

Responsible for fault detection of network

Responsible for operation and maintenance of the transmission equipment.

Marketing & Sales Division

In order to carry out smooth operation of activities across Sales and Marketing division some
changes in the Organizational chart has been made. In the chart below the line responsibilities
starting from Divisional head to departments are shown.

Organizational Chart of Sales and Marketing Division

Sales Department
As its name suggests this department involves in the selling procedure of GP and thus enjoys the
responsibility of direct interface with the customers.

Responsibilities of Sales Department

Market survey and collecting the feedback

Participation in exhibition
Participation in opening of dealers outlet
Instant delivery
Introducing & selling new packages
Follow up with existing subscribers
Building up relations with subscribers.

Selling procedure

To build relation with the clients, to make a good rapport with them, to acknowledge them about

the GP service, its advantages, coverage area, and above all to provide information about GP in a
convincing manner.
To do all the necessary arrangements to sale the product which includes handout GP

application form & brochures

Help the customer to fill up the application form including the agreement.
Tell & help the customer to pay the amount for subscription including govt. fee and security

deposit in the designated banks in cash.

Receive the completed application form with bank deposit slip and all the documents, check

carefully and ensure the signature with date.

Make a photocopy of the SIM card with its number, mobile number and ID number.
Inform the subscriber to contact Customer Care Department on 123 for further inquiry.
Thanks the customer for choosing GP
Forward the subscribers file to the Billing department for activation.

Distribution Channel
The distribution channel consist of the info center consist of Info centers, Dealers and the
corporate sales force.

Info Center

Info center provides spot solutions. Here subscribers can get subscription. 04 trained and friendly
people are serving at Info Center from 8am-8pm. There is also 01 Sales & Logistics Officer who
is responsible for providing SIM (Subscribers Identification Module) cards and handsets to the
subscribers and distribution of marketing items.

Dealers
02 persons are responsible in dealing with Dealers at Dhaka and Chittagong each. There are 03
Dealers at present-Flora, Grameen Telecom and Brothers

Corporate Sales Force

15 Officers are ready to serve any corporate clients in Dhaka and 10 persons in Chittagong.
Marketing Department
Marketing departments activities are converted in to two types of activity. They are
Market Research and Development and Market communication.
Market Research and Development
Market Research and development Department (MRD) is a vital part of GrameenPhone in terms
of its importance and role. The central innovative department of GrameenPhone is MRD. This
department facilitates communication between the different departments about existing and new
products / packages of GrameenPhone. MRD also manages and co-ordinates information about
different products. MRD evaluate the possibilities and develop new products.
MRD is responsible for communication with different departments about existing products. MRD
get feedback from Sales, Customer Care and Market Communication departments regarding
Customer needs and Market requirements. Feedback helps in redefining an existing product.
New ideas are developed after evaluation of market demands. MRD gives shape and form to
vague ideas in the process of developing a new product. MRD is responsible to co-ordinate with
Operation & Maintenance, Information System and Billing departments to get solutions check the
functionality of Product features and prices. Bundling and un- Bundling of services to create new
packages can be a useful way of satisfying customer needs.
MRD department supports various departments in performing their job. After the market survey,
for an example, they can suggest Radio Planning department about the approximate no. of
probable subscribers of a particular area and the potential of introducing service to that area.
Market Analysis:
1.
Analyze both local & international Telecom market information which includes:

Local Operators: Penetration rate, Growth rate, Market share, Call charges, Existing &

Estimated Subscriber base and all relevant facts & figures.

International Operators: Value Added Services (VAS), Call charges, New features etc.

1.

Initiate statistical analysis on the basis of market survey.

Long Term Planning

1.
Initiate Roll out (network expansion) plans.
2.
Generate new ideas to design & promote new services as well as modify existing.
Other Activities
Prepare both provisional & actual acquisition reports on a monthly basis.
Reply to subscribers letter.
Maintain intercommunication with other departments to carry out numerous future plans &
actions.

1.
2.
3.

Market Planning and Analysis section works in two subunits:

Market Planning Unit
Strategic Analysis Unit
Responsibilities of Market Planning Unit

Writing/Updating of Business Plan

Writing/Updating of Marketing Plan

Identify the segment to be communicated

Develop strategies to communicate with the segment

Responsibilities of Strategic Analysis Unit:
Revenue analysis:
Total Revenue and Airtime Revenue-Zone-wise and Product-wise
ARPU and AARPU calculation both in taka and dollar
Age-wise subscribers revenue calculation
Monitor the revenue trend and identify if revenue is meeting the target
Do necessary calculation for revenue forecasting
Assist in revenue forecasting
Analysis of call pattern
Sales Analysis:
Maintain a database for zone-wise, product-wise and POS-wise new sales.
Update zone-wise and product-wise subscriber base
Prepare and update necessary chart and graph
Activities of Product Development & Management Section:
This section has two sub units.
Product Unit:

Develop Product & modify the existing one.

Prepare Price for Different campaigns.

Project subscriber forecast & future revenue.

Manage Test SIM of GP & IR.

Involve with GP Number Plan Project. (Introduction of 7 digit for GP)

Value Added Services Unit:

Prepare plan to promote WAP for GP subscribers.
Work for introduction of SMS Push/ Pull for Grameen Phone.
Analysis of VAS revenue month wise.
Manage GP news service.
Liaison with outside agency to introduce new Value added service.

Special Assignment:
This section also works to provide input for S & M Budget. Monitor cost & compare budget.
Prepare S & M Monthly Report.

Market Communication
The functions of marketing department are manifold. However the main function can be
articulated as to develop product and promote Concept building for promotional activities. It
includes advertisement in the leasing dailies in the most effective manner within a given budget,
to arrange out-door advertisement, hoarding, promotions of gift items like dairy, calendar etc.
Publish monthly Newsletter of GP.

Competitors activity analysis

Concept building for promotional activities. It includes advertisement in the leading dailies and
carry out promotional activities in the most effective manner within a given budget, to arrange outdoor advertisement, hoarding, promotions of gift items like dairy, calendar etc.

Besides the above-mentioned functions, this department is also responsible for all kinds of
publications of GP. It is the responsibility of the marketing department to design and publish
monthly Newsletter of GP.
In the above-mentioned way, marketing department plays an important role in the smooth
functioning of GP.
Customer Relations Division
Organogram of Customer Relations Division
Customer Care or CMD
Customer care is making the bridge between the customers and company. Besides Sales
division it is the only department who deals customers directly. Sales department procures the
business and Customer Care keeps the business with the company for long period. Once
relationship is established Customer Care is doing the business with the subscribers. It works
with the objective to meet all kinds of queries from customer and provide the optimum solutions.
It works to ensure customers satisfaction and also to motivate the people in GrameenPhone
service.
Responsibilities of Customer Care are unlimited. 4570. 2232

The Workforce:
There are 2232 personnel working under the supervision of one Additional General Manager and
one Deputy General Manager.
Purpose
The purpose of the department encompasses the following.
To receive queries
To solve queries relating to GP service.
To provide all sort of information.
To solve any problem regarding network.

To ensure smooth operation Customer Care is providing services from two perspectives.

Over HOTLINES

Through Information Center

Image Center
Image center gives support for all Queries by 121 number, which gives 24-hour service for the
subscriber or Grameenphone. Information about bill and barred lines are opened here through
verbal communication.
Hotlines
Image Center is committed to provide efficient, dedicated and reliable service to it valued
subscribers. For customers convenience it has introduced three HOTLINE services of 24 hours
to handle all queries regarding GrameenPhones network and services. Subscriber may call any
time for all complaints and queries.
Hotline Numbers is 121.
Information Center:
It provides on spot solutions as subscribers can physically go there and get services. It deals with
the following areas.
1. Bill Clarification
2. Preparation of manual bill
3. Bill correction

1.
2.
3.

Correspondence:
Beside these, Customer Care is receiving several written complaints and queries from
subscribers over fax and by post. It replays with solutions through courier services.
Feedback:
To solve problems of customers and to provide information regarding GP network Customer Care
gets indirect support from1. Sales
2. Marketing

3. Information
Direct information / Exchange information from1.Operation and maintenance
2.Planning
3.Billing
Customers do not buy features, customers only buy benefits. Subscribers only can ensure those
benefits by receiving concrete information and services according to their requirement and here
lays the responsibility of Customer Care.
Billing
Billing department is and important segment of Customer Relations division. A total of 23
employees are rendering their services under the direct supervision to a Manager. This
department is closely related with Customer Care, Sales, Information System, Switching Systems
and Finance.

Responsibilities of this department includes

Customer installation & validation
Provisioning and withdrawing services
Charging for the services provide
Fraud management & credit control
Billing
Distribution
Collection and
Preservation of subscription documents
Procedure:
To perform this duty smoothly and efficiently, the responsibilities of this department have
classified under the following several major headings; each of which is encompassed with

different workload and responsibility.

Registration, activation and information input in to CABS (Computer Aided Billing Software)
section

This section is responsible for number allocation, registration & activation, charge installation
deposit recording, migration (package to package migration), SIM change, address change, etc.

Filling
This section is responsible for reserving subscription documents which includes subscription
agreement,

address

change

paper,

migration,

SIM

change

request,

application

for

disconnection / reconnection etc. This is also their responsibility to verify subscribers signature
for various reasons. Meeting requirements for hard of customer information is also their
responsibility.

Fraud management

This section controls credit, verify address of new subscribers for customer validation, reminding
and suspends services for usage above credit limit, provide and obtain feedback to and from

Customer Care.
Communication
The main function of communication unit is to take necessary action on the basis of received
information from the subscribers, i.e. unbarring for bill payment and advance payment,
disconnection, reconnection of service etc. This unit also transfer necessary information to other

unit of the department and to other department.

Billing & distribution

It includes distribution of bill, address verification letter, reminding letter, directory, newsletter and
other documents, courier dealings, receive and obtain status report to and from CC (Customer
Care) and information center.

Business configuration and user administration

Business configuration, packaging, CABS user administration; trouble shooting is all the
responsibility of this section.

Reports and statistics

Reporting and reconciliation, information from CABS (Computer aided Billing System) database
directory are the responsibility of this department.

Administration Division
The term Administration is associated with misconceptions and controversies. Especially in the
context of Bangladesh, it represents a bureaucratic organizational set up with typical
characteristics of red-tapism, centralization of power and authority, favoritism, nepotism and so
on.
Administration Division of GrameenPhone up with a view to breaks out from the so- called
conventional system of bureaucracy and strives to be different in all respects.
Administration Division encourages to
Develop the leadership quality in such a manner that the organization can grow like a

disciplined family.
Reward for discipline, hard work and efficiency.
Maintain a quality, conducive and enjoyable work environment.
Maintain congenial and healthy interdepartmental relations to ensure uniformity in objectives.
Work with an open system approach to ensure effective communication flow:

Administration Division believes in

Team sprit, not individualism.

Co-operation, not isolation.

Decentralization, not centralization.

Harmony not discords

Organogram of Administration Division

Human Resources Department
Human Resources (HR) Department, an important department of Administration Division plays
very vital role in the total functioning of GP. Employee recruitment, selection, transfer, promotion,
training, performance appraisal all these are conducted by HR 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
Function of HR
HR Management functions:
Manpower planning is an important function of HR management section. Two major activities in

this function are:

Planning and forecasting the organizations short tern and long term human resource
requirements.
Analyzing the jobs in the organization and determining skills and abilities that are needed.

Manpower planning is a lengthy process involving several steps. It starts from need assessment
and ends with recruitment
At first, all the departments after employee need analysis send their requirement to HRD through
their respective divisions. After obtaining necessary approval from the management, HRD sets
target, and prepare recruitment planning. According to job specification HR goes for recruitment.
Recruitment process is as follows

Give advertisement in the daily newspapers

Receive applications and file them,

Shortlist of the applicants

Fix date and time of a preliminary interview

Contact with the applicants and inform them about the interview over telephone or letter

Fix further date and time for final interview if it is required and inform the interviewee

accordingly
To prepare appointment letter for the finally selected interviewee
Give appointment to the person with a detail job description.

Immediately after the recruitment separate employee file is opened comprising all the relevant
information of the particular employee. This personal file is prepared, maintained and updated
by HRD. In fact one of the main responsibilities of HRD is updating of all the personal file of the
employee.

Performance appraisal is another main function of HR Management. Performance appraisal is

any personnel decision that influences the status of the employee regarding his confirmation,
increment, promotion, and transfer.

GP performance appraisal takes place in two stagesOn completion of probation

On completion of one year of service.
Performance of an employee takes place by following some stepsa) Job analysis
b) Set up performance standard and
c)

Appraisal interview.

Leave management
Leave management is an important function. HR has opened a leave management database to
obtain current leave status of all the employees of GrameenPhone. It provides employees about
their leave status when it is necessary.
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.
Human Resources Development
An organizations performance and resulting productivity are directly proportional to the quantity
and quality of its human resources. While employee performance must be evaluated in
economic terms of efficiency and effectiveness, it can be best achieved through recognizing and
enhancing the human dignity of each employee. The quality of the human resources can be
effectively increased through education, training, and personal development.
Human Resources Development functions aim to increase the quality of the human resources
especially through training
GP training involves the following steps
Assessing training needs

Selection of the participants

Conduct training programs

Different training programs of GP
GP Provides both local and overseas training on the basis of the need analysis of the employee.
Local training
Local training can be both-Inside GP and Outside GP.
Induction/Orientation training Program falls under inside GP training category. After joining, it is
the responsibility of the HR to conduct induction/orientation training to the newly recruited

personnel to provide a general introduction of the company.

To prepare training plan,

participants list, and training schedule for induction training HR department does all.
Inside GP training will cover Management training will cover Management training and
Department training in near future.
Out side GP training means to take part in training programs offered by different training
institutions/universities on different subjects.
Overseas training: After need assessment employees who need overseas training are sent
abroad for overseas training. Expenses of overseas training are generally borne by GP. The
particular employee who has been selected for training has to sign a surety bond for specific
period of time for overseas training.

Besides the above mentioned works, some routine functions of HRD are
Prepare, maintain and update training related database.
Prepare career development plan
Prepare induction training manual/modules
Evaluate training program
Make agreement between GP & employees for overseas training
To communicate with different local training institutions
To communicate with trainers/instructors.
HR Management Information System

HR-MIS Functions involve

To maintain & update employee database

Maintain employee related different statistics

Any other works which requires updating employee data.

Though job has been classified and assigned according to the nature of the functions of HR
Department, the job is accomplished and the responsibility is carried out co-operatively.
HRD plays a very crucial role in the functioning of GP. This is a very flexible and open
department, as it always has to gather and store current and exact data and information
regarding the employee and the organization.
Manpower planning is a lengthy process involving several steps; it starts from need assessment
and ends with recruitment.
At first, all the departments after employee need analysis send their requirement to HRD through
their respective divisions. After obtaining necessary approval from the management, HRD sets
target, and prepare recruitment planning. According to job specification HR goes for recruitment.

Finance Division
Finance division comprises three departments, namely. Information systems. Finance and
Procurement.

Structure of Finance Division

Finance Department
Department of finance is an integral part of finance division. The main role of this department is

define in under:
Attends to financial planning and control
Budget and budgetary control
Provide management information
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.
Work Force of the Finance Department
Working team of this department consist a total nineteen (19) members including Executive
Manager Finance who is responsible for overall and inter-departmental management of this
department. For overall supervising and proper internal control purpose finance department
device in four segments where a several section as required based on work volume and a
manager (individuals) is responsible for all activities performed by the sections. At present there
is a managerial position confirmed duly for accounts segment based in Dhaka. There is also a
total Six-(06) accounts officers including Chittagong office and a cashier in the cash office based
in Dhaka.
Job Responsibilities
Additional General Manager, Finance:
Manager finance is a position of this department who is responsible for overall supervising and
interdepartmental management and ensures proper internal control over the Company. Usually

he looks after the following activities:

Attends to financial planning and control

Supervising budget and budgetary control

Provide management information

Ensure proper internal control

Attends to control over the cash/bank payment

Development of system and method

Supervising financial report and analysis for action plan

Reporting to the internal management and external users

Approving vouchers and participating

Co-ordination with external organization and

Internal departmental management.

Department of finance is an integral part of finance division. The main role of this department is
define in under:

Attends to financial planning and control

Budget and budgetary control

Provide management information

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.

Working team of this department consist a total nine (09) members including Executive Manager
Finance who is responsible for overall and inter-departmental management of this department.
For Overall supervising and proper internal control purpose finance department device in four
segments where a several section as required based on work volume and a manager
(individuals) is responsible for all activities performed by the sections. At present there is a
managerial position confirmed duly for accounts segment based in Dhaka. There is also a total
Six-(06) accounts officer including Chittagong office and a cashier in the cash office based in
Dhaka.
Job Responsibilities
Manager, Finance:
Manager finance is a position of this department who is responsible for overall supervising and
interdepartmental management and ensures proper internal control over the Company. Usually
he looks after the following activities:

Attends to financial planning and control

Supervising budget and budgetary control

Provide management information

Ensure proper internal control

Attends to control over the cash/bank payment

Development of system and method

Supervising financial report and analysis for action plan

Reporting to the internal management and external users

Approving vouchers and participating

Co-ordination with external organization and

Internal departmental management:
Four managers are working in the finance department under the manager finance. All managers
(individually) in a department is responsible for their sectional activities and reporting to the
manager finance. And usually manager finance takes action after confirming the decision from
Director of the division.

Manager Accounts:
Manager accounts usually looks after of his departmental works performed by individuals in its
sections. This department is one of the segments of finance department.

The main role of manager accounts define as under:

Cash co-ordination
Bank reconciliation and keeps bank documents
Supervising booking of entries in a accounting soft-ware
Preparation of vouchers and treasury statement
Preparation of Periodical and annual accounts
Checking of vouchers and bank payment
Participation of budget and budgetary control
Preparation of statement regarding invoices, suppliers credit and others
Monthly revenue analysis based on billing document
Accounts receivable considering security deposits and adjustment
Approving voucher based on volume of transaction
Co-ordination with internal activities and other internal department.
In-addition to the above activities, manager accounts works with International Roaming
department to assist the financial activities.
Cost and Budget Department:
The above department is one of the important segments of finance department. At present there
is no manager but a managerial position proposed in this department. The functions of this

department through several sections explain as under:

Participation of financial planning and control
Preparation budget and action for budgetary control
Participation and co-ordination for procurement
Maintain fixed assets software
Fixed assets reporting periodically and annually
Material accounting for consumable item and
Accounting for inventory and physical counting
Re-commendation for internal control
Control over financial payment
Report preparation for internal and external
Co-ordination with inter departmental activities and
Other internal department of the Company.
At present the above activities is done properly under supervision of the divisional director and
manager of finance. Accounts officers are also assist for the same.
Payroll, Tax and External Affairs Department:
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. Presently there is no manager in this department
but a managerial position proposed for overall supervising and proper internal activities through
sectional works. 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
Preparation of salary perquisite and return submission
Preparation accounts and financial statement for tax and audit
Companys tax return and ensure assessment
Ensure tax deduction and issuing certificate individuals
Ensure treasury deposits for tax, VAT and deduction at source
Supervising and arrange VAT register and reconciliation statement
VAT return and revenue statement preparation
Preparation VAT report periodically and annually
Price declaration for service offering and ensure approval
Supervision Provident fund and ensure investment of fund
Supervising welfare fund and ensure internal using
Ensure work permit and foreign loan registration
Internal audit co-ordination and external audit finalization
Quarterly report to NBR (National Board of Revenue) regarding connection and handsets
Return and relevant document submission to join Stock Registrar
Co-ordination 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. i.e. the Company secretarial affairs
temporarily done by this department in supervision of manager finance. And the payment
statement regarding Govt. fees and royalty for handsets and base-station pursuant to the license
agreement between GP and MOPT (Ministry of Post and Telecommunication).
Chittagong Accounts:
There is a Chittagong accounts under the finance department and usually looks after the cash
and band disbursement and monthly report for Dhaka office. One accounts officer is working at
Chittagong accounts under the supervision of manager finance. At present there is no manager
but a managerial position proposed in this department for work in the proper internal control
purposes.

The main role of this department define as under:

Cash co-ordination
Bank co-ordination
Report perpetration for central accounts
Control over cash/bank payment
Co-ordination with external affairs and
Internal departmental management

Chittagong accounts also participating with the internal meeting and updating with Dhaka office.
Apartment and guest house expenses also controlled by Chittagong accounts. But the revenue
and collection not the part of Chittagong accounts but the casual salary paid by this department.
Four managers are working in the finance department under the manager finance. All managers
(individually) in a department is responsible for their sectional activities and reporting to the
manager finance. And usually manager finance takes action after confirming the decision from
Director of the division.
Accounts Department
Manager accounts usually looks after of his departmental works performed by individuals in its
sections. This department is one of the segments of finance department.

The main role of manager accounts define as under:

Cash co-ordination
Bank reconciliation and keeps bank documents
Supervising booking of entries in a accounting soft-ware
Preparation of vouchers and treasury statement
Preparation of Periodical and annual accounts
Checking of vouchers and bank payment
Participation of budget and budgetary control
Preparation of statement regarding invoices, suppliers credit and others
Monthly revenue analysis based on billing document
Accounts receivable considering security deposits and adjustment
Approving voucher based on volume of transaction
Co-ordination with internal activities and other internal department.
In-addition to the above activities, manager accounts work with International Roaming
department to assist the financial activities.
Cost And Budget Department
The above department is one of the important segments of finance department. At present there
is no manager but a managerial position proposed in this department. The functions of this

department through several sections explain as under:

Participation of financial planning and control
Preparation budget and action for budgetary control
Participation and co-ordination for procurement
Maintain fixed assets software
Fixed assets reporting periodically and annually
Material accounting for consumable item and
Accounting for inventory and physical counting
Re-commendation for internal control
Control over financial payment

Report preparation for internal and external

Co-ordination with inter departmental activities and
Other internal department of the Company.

At present the above activities is done properly under supervision of the divisional director and
manager of finance. Accounts officers are also assist for the same.