Appraisal of Customer Services to the corporate client provided by AKTEL 1 .1 Background of the Report: The internship program is an educational requirement of BBA Program under East West University. Bachelor in Business Administration or BBA is a professional degree. BBA students have to do an internship program as a practical orientation to the workplace where he/she can merge the theoretical knowledge with practical work experience. I have been pursuing my internship program in the Customer Care Department under the Core Marketing Division of AKTEL Bangladesh (Telecom Malaysia International Bangladesh). Its corporate office is located in ‘Silver Tower’ Gulshan-1. a. Rationale of the Report: The main objective of this study is to prepare an Internship report on the specified topic working within an organization and implementing the knowledge that has been gathered during the Internship Program. b. Objectives of the Report: The specific objectives of this report are as follows: •
To analyze the current scenario of our Telecom Industry.
•
To understand the operation and current condition of AKTEL.
•
To find out the current arrangements of AKTEL regarding corporate services.
•
To perceive the entire activities they performed to furnish the corporate services providing complete satisfaction to the corporate clients
•
To determine the Consumer Preference s Level of AKTEL regarding corporate package
•
To determine the level of negotiation and customization demanded by the customer
•
To describe the Internship Activities and experiences gathered while working with the AKTEL corporate client project.
1.2 Origin of the Report
Each professional degree needs practical knowledge of the respective field of discipline to be fruitful. Our BBA program also has an Internship Program, relating to the exchange of theoretical knowledge into the real life. This report entitled “Appraisal of Customer Services to the corporate client provided by AKTEL”. 1.3 Methodology: The report tried to evaluate Customer Services to the corporate client provided by AKTEL” Why the clients use this connection. Before going in to the deep study, conceptual structure visualized under which the whole study was conducted. In preparing this report about the Customer Services to the corporate client provided by AKTEL” is a difficult and complicated task and no single method is appropriate for conducting the exploratory research. For this reason, a number of procedures have been followed to prepare a meaningful report. The methodology of the task can be depicted as follows. Primary data, Secondary data collection, Expert surveys. Sources of Data This study covered two types of data, which are: a. Primary data
b. Secondary data
a. Primary Data: Primary data has been collected through a structured questionnaire, constructed specially for this report. To collect the primary data, the following steps have been followed to obtain the research objective: •
# Data collected from web site.
•
# Taking interviews of subscribers over Phone.
•
# Taking face-to-face interviews of subscribers.
•
# Interview of key informant that is the senior official of AKTEL in order to collect
information about the services. •
2
# Interview of industry expert, regarding the corporate clientele issue.
b. Secondary Data: Going through different documents and papers, news letter (for internal purpose only), developed by the company personnel, different books, journals, newspapers, brochures, website also was used to collect the secondary data. Huge number of data was collected from the Corporate sales division of AKTEL , * Collection Procedure of Data: Personal interview technique was the primary tool used in collecting information. Interview with the Customer have done. Managers and officers of AKTEL from different divisions were the main sources of secondary data. The corporate sales executive, account manager and assistant manager of corporate sales division provide me proper information and assistance about the issue. * Analysis of Data: Basically, I performed qualitative research here . A profile of corporate client is made and some hypothesis were made to analyze the concerning issues . Sampling Plan and Sample Size: ** Study Population: The first step of the sampling design is to define the study population. Due to time restriction and other limitations, the survey will only focus on the officials of the corporate sales department of AKTEL, and some industry expert’s opinion. The sample area has been selected on the basis of organization’s interest and on the basis of availability. ** Sampling Frame: As there is no concrete list or number Corporate Client, it is tough to perform a structured sampling frame. The sample frame is random selection. The researcher has to take personal depth interview to meet up own requirement. ** Sampling Method: To investigate the issue customer service towards the corporate client, Non-probability Sampling Procedure has been used. The sampling unit was selected through Convenience Sampling: where the selection of the sampling unit is left primarily on the interviewer. The reason behind choosing Convenience Sampling is many but here most importantly, there is no
appropriate structure or framework that can aid to select the sample.
Farther, these
procedures are both time saving and inexpensive. ** Data Gathering Method: Basically this research paper is based on qualitative research, which formulated through different Kinds interview on respective personnel ** Data Collection Method: The data has been collected through questionnaire survey. When I got the uneducated respondent, then as the interviewer I fill up the questionnaire based on the respondent answer. ** Profile and Analysis Procedure: A profile of typical corporate client of AKTEL has been made on the basis of collected information and some hypothesis are constructed for the purpose of analysis 1.4 Limitations of this Report: The study is not free from some practical limitations. Following limitations I have to face during the study and the time of working and data collection: Time is the main limitation for my study. Due to lack of sufficient time, I was not able to do survey properly among all of the potential sample size. That’s why the findings may not be fully but partially true. If I had more time I could go for more descriptive research and discover more accurate result. Workload during the Internship Program at the work place was also a barrier to prepare this report. The data collection was full of complexities because relevant data sources were hard to find out. There are so many obstacles because; the service provider company is not willing to disclose their offerings and flexibilities towards the general people. Due to lack of practical experience, some errors might be occurred during the study. In spite of the maximum efforts was taken to avoid the mistakes. * Time Line for the Research: Internship Program has been conducted in the following time 7 th February 2008-30th April, 2008. Preparation of literature review, formulating research objective, conducting introductory chapter including detailed context of the study as well as development of research design was done in the period of internship. 4
Chapter – 1 1.5 Introduction Mobile phone means a device that transmits voice or data, using radio waves to communicate with radio antennas placed within adjacent geographic areas called cells. It is a very common source of communication in these days. Most of the people are using mobile phone in the city and the urban areas. Telecommunication linked with satellites. It brings about revolutionary changes in communication. New STD (Standard) and ISD (International System for Dialog) facilities have made communication an instantaneous process. The world appears to have contracted or been squeezed into a small room in which, given certain facilities, it is possible to communicate with anyone in any part of the world. 1.6 Background of the Telecommunication Industry in Bangladesh In this era of globalization, communication has become the most significant factor. For this, telecom industry is playing the major role to change the lives of the people and their business. In a densely populated country like Bangladesh, telecommunication can play a vital role to boost the economy and social level of people. This sector is poised for rapid growth in the coming years. Moreover, the efficiency of other businesses has already increased because mobile phone has become easily available in these days due to the government’s decision of deregulating the telecommunications sector, which had been a state monopoly until the late 1980s. Privatization of the telecommunication sector began in 1989, when Sheba and BRTA were awarded 25-year licenses to install and operate fixed-wire lines and wireless services in rural areas. The same year, Pacific Telecom Bangladesh got the Government’s permission to launch the country’s fire cellular phone and paging service sold under brand name CityCell in collaboration with a Hong Kong based company. The company targeted only the higher class of the society. During that time price of mobile was above Tk 50,000/. Naturally, the growth of the industry was very slow. CityCell had a virtual monopoly until 1996, when the government gave licenses to three more companies to operate cell phones in Bangladesh. So the government decided to bring more companies in the market and break the monopoly. After a careful evaluation, Bangladesh government decided to provide three licenses to GrameenPhone, TMIB (AKTEL), and Sheba Telecom (today’s BanglaLink). CityCell is using the CDMA (Code Division Multiple Access) technology. GrameenPhone, AKTEL, and BanglaLink are using GSM technology. GSM is the most popular mobile telecommunication
technology in the world. About 60% of the cell phone users of the world use GSM technology.
These three new companies entered the market, not only helped to cut back the overdependence on BTTB’s fixed-line system, but also made mobile phones cheaper and easier to get. A definite development has been observed in the business market with comparatively high expectations. Customer maturity and anticipation regarding technology has increased over time. Rumors regarding new entrants have groomed expectations in the market. Consequently, people are expecting cheaper handsets with lowered airtime.
However, the recent entrances of private fixed land phone companies have increased the concern of the cell phone companies. New companies like RanksTel, OneTel, Bay Phone and Bijoy Phone have kicked off their operations in different districts in Southeast, Northeast and Northwest regions of Bangladesh. In near future, this new segment might be a creeping threat for the existing players inside the industry. 1.6.1 Reforms in Telecommunication Sector of Bangladesh Economic Growth Most common starting point
Big Bang Full Competition Unbound local, LD & International Managed Competition (Gradual liberalization of services) Fixed Duopoly- Competitive Mobile & Wireless Fixed & Mobile Duopoly Monopoly / Exclusivity Typical Reform Steps
Bangladesh Social Welfare Low High
Extent of Competition Social policy Emphasis Figure: Typical Telecom reform models 1996 to date
Most countries have already undergone fundamental telecom sector reform. Bangladesh is absolutely one of the last that bring up the rear to learn from others’ lessons. However, it is 6
not evident that Bangladesh’s reform model is based on a clearly articulated and supported strategy. Most countries have gradually transitioned from monopoly provision of services by state-owned incumbent to competitive market structure where several companies fight to capture and keep customers. The key is to time the introduction of competition in a way that aligns with the growth, maturity and advancement of the telecom infrastructure and service
provision. By licensing six mobile and 19 PSTN operators, Bangladesh has rapidly leapt from closed monopoly to open market in all but a bold moves granted, there is a challenge. In advanced market there is usually room for plenty of competition due to market size and maturity. Bangladesh’s $2 billion revenue market still requires substantial amounts of infrastructure build-out especially for fixed and data services. In this context, the opportunity rapidly crumbles into much smaller prizes when split between half a dozen hungry mobile operators and then all of 19 fixed ones. In Germany, which is a country with an advanced telecom infrastructure and sophisticated market and a GDP of $2.5 trillion, the government issued six mobile operator licenses to offer next-generation “3G” services in 2001. After postlicensing consolidation only four of them survive today. [[
1.6.2 Telecom Industry in SAARC countries
Bangladesh has one of the lowest tele density and the lowest telephone penetration rates in the world and even in the South Asia. According to the ITU (International Telecommunication) report, the telecommunication revenue as a percentage of the GDP is also low in Bangladesh compared to other regional countries. Among the SAARC countries’ per 100 inhabitants, Maldives has the highest tele density while Bangladesh has the lowest
Country Number
Bangladesh India Pakistan Nepal Bhutan of0.79 4.01 2.9 1.34 2.03
Telephone per
100
Maldives Sri Lanka 16.92 8.1
Inhabitants Figure: Number of telephone per 100 inhabitants in SAARC countries.
1.6.3 Market Growth of Telecom Industry At the initial stage of the mobile telecom industry because of high startup cost and high tariff there was only a few numbers of subscribers. In 1997, there were approximately 2000 mobile subscribers around the country with a low market penetration rate (0.02%). At present, the number of mobile subscribers in the country is approximately 10 million. Currently Bangladesh has five operators as Teletalk a sister concern of BTTB has entered in the market recently. Though Teletalk targeted to cover 0.25 million subscribers by first six months of launch and 1 million by 2006, in reality only 80,000 customers base has been created in first 5 months. In addition, Teletalk has offered lower rate with PSTN connection all over the country. The total number of districts covered in mobile industry has been increased to 61 in 2005 from 1 in 1997. The total telecom growth has increased to 55% in 2004 from 19% in 1998. Initially, mobile growth rate was too high which was 178% in 1998 and it came to 51% in the year 2005. So we can say that the industry is not going to its maturity stage. From the comparison of different operators’ subscriber base, it can be said that still GrameenPhone is leading the way with a sharp distance. Though Citycell is the first mobile operator in Bangladesh, it is not doing its business s good. BanglaLink has done an excellent breakthrough as it has increased its subscriber base from 3000 (ex-Sheba) in 1998 to almost 2 million in this year 2006. On the other hand, AKTEL is growing its subscribers faster than CityCell, which is from 3000 in 1997 to about 3.8 million in this year 2006. As the number of companies inside the telecom industry is increasing, the penetration level is getting high. Consequently, the penetration in the mobile industry in 2005 is 4.89%. The growth of mobile industry has drastically changed in 2005-2006 because of the Govt. tax imposed on each SIM card purchase. However, the telecom industry growth is almost same as in 2004 since new fixed land phone companies have started their operations. Market 8
1997 0.02
1998 0.05
1999 0.1%
2000 0.21%
2001 0.53%
2002 0.87%
2003 1.88%
2004 3.13%
2005 4.89%
Penetration District
% 1
% 2
26
36
40
49
59
61
61
Coverage Telecom
-
19%
17%
34%
66%
42%
40%
55%
52%
SUBSCRIBERS BASE GrameenPhon 18,00 30,00
60,00
191,69
471,37
775,31
1,878,00
2,424,17
40,00,0
0 19,00
0 26,20
0
1 100,00
0 160,00
0 2,250,00
7
0 12,00
0 28,50
0
0 150,00
0
Growth Rate
e
0
CityCell
2,000
AKTel
3,000
BanglaLink (ex-Sheba) TeleTalk
33,500
1,000,00
0
0
34,200
96,000
-
3,000
11,000 19,000
27,000
60,000
70,000
100,000
-
-
-
-
-
-
-
-
0
300,000
370,000
2,500,0
0
Figure: Growth of Telecom Industry 1997-2006
1.7 Subscriber Base of Mobile Operators of our Country In this competitive market, all the companies are adopting different policies to draw the customers towards then offering so many varieties of products & services. Currently, GrameenPhone is the market leader with almost 9 million subscriber’s base till August 2006. AKTEL is holding their position in the second place and trying hard to become the market leader within the year 2008. BanglaLink with their aggressive marketing strategy is creating chaos in the market through price war. TeleTalk & CityCell are struggling in the market to hold their positions, as both the companies need to concentrate on their product development and marketing research activities.
Figure: Subscriber Base of All the Mobile Companies Currently Operating in the Market
Figure: Market Share of the Companies Currently Operating in the Market
4,00,00
5,00,00 80,000
1.8 Product Life Cycle
Embryonic Growth Mature Decline
Figure: Product Life Cycle of Telecommunication Industry Mobile Phone Land Phone
If we point the tentative picture of the mobile phone and land phone, then we will get the product life cycle where we can clearly find out that land phone has already passed its growth stage, as it is not growing rapidly. But in case of mobile phone we can find out that it is in the growth stage as the revenue generated from this product is increasing and still has the potentiality to be boosted up and contribute to the telecommunication sector. On the market strategies segment the product strategy is on the offer product extensions and on service orientation. More and more offers of value added service and added features are included in the package. The pricing strategy is to penetrate the market. So they are all more or less following the penetration pricing strategy. In distribution strategy the industry is the building on intensive distribution. More and more emphasis is given on gaining the market. So distributing the product to the far corners of the country has become a priority. In case advertising & promotional strategy the companies are all in aggressive advertising policy. Using all the possible media uses to increase the market share & reaching potential customers in mass market. Lastly in sales promotion the companies are on a rampage. They are offering enormous amount of services with the same package & low cost rate with different events all round the year.
1.9 Situational Analysis
Situation analysis is the broader activity of understanding the changing external environment that may impact the organization. It is one of the most important parts of the environmental
10
scanning to alert the decision makers to potentially significant external changes before they crystallize. Consequently, decision makers have sufficient lead-time to react to the change.
Political Factors
In Bangladesh, there are a few companies that are not affected by political situation as well as by the government policies. That’s why marketing strategy is deeply affected by political perspectives. The government of Bangladesh has given mobile sector ample amount of freedom to do business. There were some stiff regulations that hindered the possible entry in the mid 90’s but as technology entered the new millennia, government freed the way for companies to enter the market. Government’s stability affects the operators and new companies in taking investing activities whether government will be liberal or strict in transferring profit from the country. Moreover, Monitory policy affects the mobile operators in terms of currency valuation that is devaluation leads them to increase in dollar value cost of operating activities. This also affects their increase in cost of importing instruments and technical devices. Political support for a particular company can threaten other companies in various ways. Government’s support can increase the growth of this industry. During the last fiscal year, when government imposed Tk 900 tax on the SIM card, it severely hampered the growth of the industry. Market research revealed that the new connection selling has decreased 55% from May’06 to July’06.
Economic Factors
Economic trends can also affect the growth of the mobile phone user. Usually economic environment is analyzed with reference to the following key economic factors: employment, CPI, personal income, real GNP etc. The stable GDP from the year 1992 to 2006 has increased mobile phone user from 0 to 8 million. Increase in the employment, saving rate and purchasing power as well as the spending capacity acted as a catalyst for this amazing increase in the number of mobile phone users. Heavy growth of small families is increasing so there is bright prospect that this user segment will continue to rise like the past. However,
the increasing inflation rate is badly hampering the amount of discretionary income as the price of different consumer products is increasing in an alarming rate. People are becoming more conscious about their living standard. This squeezing of the income amount may affect the growth of the industry. Still the growth has been tremendous over the last few years particularly in the year 2006 when BanglaLink entered the market. Meanwhile, Grameen Phone reached an astonishing 85 lakhs customer base this year.
Social Factors
The ultimate test of a business is its social relevance. An important aspect of the social environment concerns the values consumers’ hold. Values mainly revolve around a number of fundamental concerns regarding time, environment, personal finance, diversity etc. Orientation towards time: Convenience is a critical source of differential advantage, particularly in the service sector. Youth are making or influencing more household decisions. Moreover as the population ages time pressures become more widespread and acute. The interest to acquire and use new technology has been a big factor. Everybody wants to be connected with each other & having a mobile connection has become a social status for some part of the population. Diversity of Lifestyle: People from various age and segment have a positive response to have a mobile phone if he has the ability to have it. People’s perception toward mobile phone has changed from the past. Today mobile phones have given a diversified lifestyle to the society. The diversification & integration and doing multi tasking has become more easy day-by-day. The connections in the rural areas have given a touch of focusing the rural business with the business of that of the capital.
Technological Factors
Technological factors include the use of technology in doing business. Up to date use of technology helps to acquire the economies of scale for the company and cost savings. It also gives them the opportunity to expand in the future. In recent times, Bangladesh has connected 12
to the fiber optic. This information super high way can dramatically change the entire nation in creating new business opportunity. If there is an increase in the business activity, there will be more employment. Therefore, more people who will have the ability to have a mobile phone. Again large business activity will also need more communication to run business transaction. This will also increase the need of mobile phone. Considering other technological sectors, people are being more attached with the technology. This attitude of tying up with technology is showing increase the selling of computer, increase in the Internet user, and increase in the number of cyber café, increase in the land phone user and many more. Changes and positive response will lead to further increase in the need and growth of mobile phone users. Currently the mobile phone companies of our country are not exactly using the state of the art of technology. Although different multinational companies like Siemens, Nokia & Sony Ericsson are helping these companies but they need to be updated more. 1.10. Intensity of Competition
It is a matter of fact that to survive in an industry, grow, sustain in competition and to differentiate with others operating in the same industry, a company must understand the dynamics of the industry competition among firms. Michael Porter has developed a framework, named as “PORTER’S FIVE FORCES MODEL” with which we can analyze the industry environment to identify the threats & opportunities of the firm. The model is based on five forces that shape competition within an industry, i.e. –
Risk of Entry by Potential Competitors:
Potential Entrants are companies that are not currently competing an industry but have the capability to do so if they choose. It is a distinct fact that the risk of entry by potential competitors is a function of height of Barriers to Entry.
A new entrant in telecommunication industry will have to face situations with the disadvantage because it is impossible to have economies of scale and the entrant will not
have any cost advantage. For a new entrant the brand identity depends on whether the company is a multinational or a local company. If it is a multinational company, then and only then it will have some sort of brand identity. For a new entrant, access to distribution is limited. Switching costs for a new entrant is high. On top of that, capital requirement for a new company is high because system formulation and network establishment. Also there are some Government policies like the introduction of new tax on every purchase of a new connection. In the following we will discuss these matters in details:
Barriers to Entry have three main sources, i.e. – brand loyalty, absolute cost advantages & economies of scale. I. Brand Loyalty: Large companies enjoy a brand loyalty in the market through its huge customer base, customer retention ratio, reputation, high product quality, and after sales service. There are large established companies in telecommunication sector, like GrameenPhone, BanglaLink, CityCell, and TeleTalk who have brand loyal customers & enjoy a competitive position in the market. So whatever product/service they come up in the future they can easily capture market share. This makes it difficult for new entrants to fight with these established brands for gaining market share.
ii. Absolute Cost Advantage: Absolute Cost Advantage arise from following sources; i.e. – product diversification, pricing strategy etc, they represent lower risk than entrants. In mobile telecommunication industry companies have long experience in this sector. Some of them have experience in doing business in different parts of the world. Using that experience here & following those successful strategies gives the companies some cost advantages as well.
iii. Economies of Scale The sources of economies of scale are i.e. – discounts on bulk purchases cards, advantages gained by spreading fixed production cost over a large production volume and cost savings associated with spreading marketing/advertising expense over a large output. 14
In telecommunication industry the companies get 2% - 5% discounts from card making companies because of bulk purchase, can spread fixed cost over huge number of conversions & save advertising costs over their large output.
iv. Customer Switching Costs Switching costs arise when it costs a customer time, energy & money to switch from products offered by established firms to products offered by new entrants. Because of intense competition in the market the switching cost is very low right now. The companies are offering very low connection fee. So there is a tendency of customers using multiple company service at the same time.
v. Government Regulation Government regulation summarizes government’s policy towards setting up new industry. •
The newly imposed tax of Tk 1,200 on every mobile SIM (subscriber
identification module) card and connection •
The government had reduced the mobile handset tariff in fiscal 2004-05 to Tk
1,500 from the previous Tk 4,000
Bargaining Power of Suppliers:
It refers to the ability of suppliers to raise input prices, threat to stop selling products & delay in delivering products. The suppliers are the mobile SIM card providers. They don’t have that much of bargaining power with the company. The reason is, Supplier concentration for telecommunications industry is low in Bangladesh. Moreover, there are very few buyers (only five operators) in Bangladesh as well. Switching costs of buyers are high because the supplier concentration is low. Also the threat of forward integration is moderate. So in other words, we can say that supplier power can dominate the industry operations only to some extent.
So the bargaining power of Suppliers depends on the following factors. •
Supplier Concentration: Low
•
Number of Buyers: 5
•
Switching Costs: High
•
Substitute Raw Materials: Low
•
Threat of Forward Integration: Moderate
Bargaining Power of Buyers: An industry’s buyers are individual customers who consume products, as end users & retailer’s are who buy it for selling to customers. The customers and the dealers are the main buyers in the mobile industry. It gives them more bargaining power over the company.
So it can be said that buyer concentration in Bangladesh for telecommunication industry is very high because there are 145 million people living in a very small country. On the other hand, the numbers of suppliers are five. Switching cost for the buyers is moderate to high. There are very few Substitute Services available. Also, threat of backward integration is very low. All of these forces make the bargaining power of buyers very low.
So the bargaining power of buyers depends on the following factors. •
Buyer Concentration: High
•
Number of Suppliers: 5
•
Switching Costs: Moderate to high
•
Substitute Products: Very few in numbers
•
Threat of Backward Integration: Low
Threat of Substitute:
Substitutes are products that of different business that can satisfy similar customer needs. In the telecommunication industry, the close substitute is the BTTB land phones & some other 16
new wireless fixed phones. BTTB land phone connections have been there for the last 30 years and so but the mobile phone connection out numbered them in a couple of years. So they are not a big threat now. The new wireless FIXED phones are relatively new in the market so they are not opposing any direct threat to the mobile sector as well. Moreover these phones are targeting some specific segments of the market. Rivalry Among Competitors:
Rivalry refers to the competitive struggle between companies in an industry to gain market share from each other using price, product design, superior product offering, advertising spending, after sales service & support. The intensity of rivalry among companies in an industry is a function of industry competitive structure, demand condition & height of exit barriers in the industry.
i. Industry Competitive Structure:
It refers to the number & size distribution of companies within that industry. In Bangladesh the mobile phone industry falls under consolidated industry representing a small number of large companies, i.e. –GrameenPhone, AKtel, BanglaLink, CityCell & TeleTalk.
ii. Demand Conditions:
The current demand in the market for connection is very high. On an average every company is launching a new product or extensions every month. Price sensitive customers are really switching connections every time a new package comes out.
iii. Exit Barriers: Exit Barriers represents investment in fixed asset, high fixed cost, equipment & economic dependence on industry. All the companies entered the market with huge initial investment and strong market commitment strategy. So the exit barrier is very high.
1.11 SWOT Analysis of AKTEL
Strengths and weaknesses are the microenvironment factors influencing a business, which are within the organization. Opportunities and threats are the microenvironment factors that influence all the firms in the industry. This is a very important tool for a company in order to determine the present standpoint of the company. 1.11.1 Strengths
Joint Venture
AKTEL is a brand of TM International Bangladesh Ltd., which is a joint venture of A.K. Khan & Co. Limited of Bangladesh and Telecom Malaysia Berhad of Malaysia. A. K. Khan & Co. Ltd. and Telecom Malaysia Berhad comprise 30% and 70% equity capitals respectively in this joint venture. TMIB started its operation in 1997 after receiving the license in 1996 to operate GSM cellular phone services in Bangladesh. This venture has contributed both the companies the advantage of risk diversification. At the same time, Telekom Malaysia Berhad has gained strong local network through A. K. Khan & Co. Ltd., which is a well-established company based in Chittagong.
Foreign Knowledge Resources
The top-level management of TM International Bangladesh Ltd. by any large, consists of foreign personalities. Most of the departmental heads are from Malaysia, India, Australia, and Sri-Lanka. Because of this mix & match of local and foreign expertise in the company, there is a blend of knowledge. Moreover, the generation of foreign knowledge in the company has enabled the company to compete internationally.
Highly Competitive market
18
Currently, there are five major players operating in the telecom sector. All the companies have foreign alliance and they are highly competitive except TeleTalk. To keep pace in this extremely aggressive rivalry, AKTEL has adopted an offensive marketing strategy. Operating in such a market and adopting such strategies have given the company an internal competitiveness, which in turn has allowed TMIB to operate in foreign market with giant foreign competitors. Strong Brand Image [ TM International (Bangladesh) Ltd. commenced its journey with the brand “AKTEL� in 1997 as the 2nd GSM operator in Bangladesh. Since its inception, AKTEL has established itself into a popular name among the community. Being on of the pioneers, AKTEL has a strong brand image in Bangladesh and people recognize the name instantaneously. This recognition has given the company an added advantage, as TMIB is operating in a very competitive market.
Skilled Human Resource
Because of its attractive incentive packages and strong brand image in the job-market, skilled workforces have grown an interest towards TMIB. This has given the company an extra benefit, as the company can recruit the finest from the pool of employees. Furthermore, TMIB frequently recruits young, enthusiastic, and resourceful employees from reputed academic institutions. It also provides motivation among its employees by offering extra inducements such as: awarding gold medals to best employees of the year, organizing entertainment programs, providing transportation facility etc. These extra services have enhanced employees’ motivation level and loyalty. [ Non-Political Work Environment
The work-environment of TMIB is very friendly and co-operative. The practice of internal politics is completely absent and there is an orderly co-ordination among the departments. As most of the employees belong to the same age group, there is a harmonization in the organization. Collaboration with Diverse Companies
TMIB has alliance with diverse companies to support its service offerings. For an example, recently the company has launched a club-membership facility for its post-paid subscribers, named “Club Magnate”. To offer this club-membership, TMIB has collaborated with different companies such as Agora, Malaysia Airlines, Hotel Seagull etc. In a similar manner, TMIB has partnerships with Cineplex, BDJobs, Deshimobile, and Fantasy Kingdom etc. These collaborations have contributed the company in cost-efficiency and super service-offerings.
Collaboration with Financial Institutions
Apart from having collaboration with diverse companies, TMIB also has collaboration with a number of financial institutions. For example, TMIB has affiliations with HSBC and Standard Chartered bank for billing and salary purposes. It also has collaboration with EBL and other banks. Because of maintaining an excellent relationship with these financial institutions, TMIB will get the privilege while taking loans or any type of financial services from these institutions.
Distinctive Service Offers
TMIB has a well-known reputation of being “The First Being Ever” in the country. It has always tried to bring something new and exceptional in the market. There are countless services, which are brought by TMIB under AKTEL brand. Some of the outstanding services are: E-fill, Pulse offer, GPRS (Mobile Internet), Greeting Messages (Fun Dose), buy-one-getone offers etc. By providing distinct services, TMIB has achieved the status of “Fast Mover”. 20
Customer Care Base
TMIB has established several Customer Care Centers in major points of Dhaka city, such as Gulshan-1, Gulshan-2, Dhanmondi, Motijheel, and uttara etc. Moreover, it has set up Customer Care Centers in major districts of the country such as Comilla, Chittagong, Sylhet and Khulna. There are 11 Customer Care Centers in total and these centers have allowed the subscribers to get free services even staying in remote places of the country.
Affable Corporate Culture [ The corporate culture of TMIB is famous for being friendly and positive. The company has a “Thursday Dress-Code� for the employees. It also assembles money from every employee to have tea-break snacks. There is a pleasing synchronization among the staffs, which has built a positive corporate culture. [[[[ Societal Marketing
TMIB regularly takes part in charity functions and is renowned for donating money in different deprived institutions around the country. The company has already donated money, free-books, free-medicines, and free SIM cards in various schools, madrasas and hospitals. It is also involved in societal marketing advertising. Recently the slogan campaign of TMIB supporting the autistic children has attracted huge attention.
1.11.2 Weaknesses
Poor Work Delegation Structure
[[ The departmental structure of TMIB is not precise and well thought-out. Each department contains several units. However, the units are not separated by well-defined boundaries and it is very difficult to distinguish among them.
Employee Insufficiency
The departments of TMIB do not have sufficient work force to carry on a thorough task. Most of the employees in each unit are loaded with several duties and sometimes it becomes a burden on their shoulders. Lack of employees in each department is an obvious problem of the company. High Fixed Cost
Telecommunication industry has a high level of fixed costs. TMIB, operating in this industry, also faces such disadvantages. Office rent, network tower maintenance cost, operational cost etc are the fixed costs of the company. These fixed costs do not allow the company to gain the advantage of economies of scale, which is essential for the company to perform well financially. Because of high fixed cost and low economies of scale, the company also has a low reinvestment rate. [[ High Employee Turnover Rate
As there are four major players operating in the market, it is apparent that each company will try to draw employees from other companies by offering better incentive-packages. This practice has created a high employee turn over rate in TMIB. Every year, lots of competent workers leave the company to join other companies. This has created a major crisis, as TMIB cannot implement any effective long-term strategy. [[[ Inadequate Network Coverage in Rural Areas 22
[[[ Presently, TMIB has network coverage in 61 districts. However, most of the upazilas of these districts do not have the coverage. Therefore, despite covering 61 main districts of the country, AKTEL users in rural areas do not get the frequency. This has created a disappointment among the subscriber and hence it is a drawback of TMIB.
Feeble Recruitment Policy
Though TMIB attracts skilled workers from renowned academic institutions all over the country, because of its poor recruitment policy, many undesired employees are hired over desired ones. Sometimes people with objectionable background are hired and sometimes, right people are not hired in right positions. Thus it creates a risk of wasting talents in the company. Dealer Insufficiency
TMIB has only 4-5 authorized dealers and one distributor, which is insufficient for a company, covering network in 61 districts. As a result of inadequate number of dealers and distributors, there is high possibility of Gray Marketing. If the SIM cards of TMIB pass on the hands of unauthorized dealers, it would be very difficult for the company to maintain a consistency in price and quality. Network Limitation
Call drop, congestion, and poor network connectivity with BTTB result in bad image of the company. Some Value-Added Services are not successful
Voice mail service hasn’t been proved as lucrative 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. Not only this, usage of short message service is still low due
to lack of adequate promotion, lack of knowledge of English and unawareness of handset configuration and un-ergonomic nature of keypad. [ Commercial Ads are not too creative The commercial ads of AKTEL are not that much appealing its prospective customers compare to its competitors. Valuable features are not focused in its Ad. AKTEL doesn’t show its competitive advantages through its ads whereas its competitors such as BanglaLink or City Cell have done it effectively. 1.11.3 Opportunities
Incompetent Public Sector [ Public sector in Bangladesh is not capable of meeting the market demand of prospective phone users. Moreover, the lengthy and bureaucratic process of public offices has discouraged people to use T&T and public mobile phone (TeleTalk). For these inconvenience systems, people in our country have adopted private mobile phone services as an alternative. This is a great opportunity for TMIB to grab this huge market of prospective phone users.
Upward Moving Population Income [ According to World Bank source, the disposable income of people in Bangladesh is increasing every year. In addition, Bangladeshi market has high mobile phone acceptability. Both the factors are fostering the fact that Bangladesh is a potential market for mobile phone companies. Operating in such a market is a lucrative opportunity for TMIB. [ Business Diversification Opportunity [
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Operating in telecommunication industry has given TMIB with the opportunity of business diversification in related sectors. Having the expertise in telecommunication field for a long time, TMIB can expand its business phone set business, mobile phone battery business etc.
Easy Entrance to Foreign Market
TMIB has joint venture with a prominent Malaysian telecom company, Telecom Malaysia Berhad. At the same time, operating in an aggressive market has enabled the company to become very competitive. These attributes have permitted the company to have an easy access to foreign market and compete with foreign rivals.
[ Easy Loan Access
As discussed before, TMIB has collaboration with a number of financial institutions regarding billing and wage-payment purposes. This has allowed the company to have a good relationship with the institutions. TMIB can take advantage of these collaborations and can have easy access to loans and other financial matters. [[ Full-fledged GPRS Package
TMIB has already brought GPRS in Bangladesh. However, the service is in its initial stage. Since no other company has brought a complete GPRS package, TMIB can take this advantage and bring a full-fledged GPRS package. GPRS is a completely new technology in our country and it is obvious that the package will be a hot cake in the market. New Strategic Alliances
Strategic alliance in telecommunication industry is not a new phenomenon. All the four operators in Bangladesh have strategic alliances with several foreign companies. TMIB can form new alliances with eminent companies of different countries to achieve higher competitiveness and bring more expertise inside the company. [[[ Network Coverage Expansion
TMIB has already network coverage in 61 districts. However, most of the upazilas and rural areas of these districts are not under the coverage. In this circumstance, to increase the coverage in remote areas, TMIB can utilize its already established towers. Otherwise, they can set up new towers. Establishing new towers will not be a barrier for TMIB, as the company can form collaborations with GrameenPhone or other operators who already have towers in those areas.
Huge Need for Telecom Service
Current market growth of the telecommunication is significant which arises a great opportunity for the cellular phone companies to grow rapidly. The demand of the cell phone is still increasing. Variety services with most lucrative features made this sector more and more attractive day by day. Recent year’s growth reflects the enormous potential for the development to telecommunications and information technology in the country.
Declining Prices for Handsets
The prices of the mobile sets are declining in Bangladesh that makes an easy gateway for the customers to use cell phones. It will create an opportunity for the telecommunication industry by getting large number of customers. There are some other opportunities, which can be important factors for AKTEL are: Economic growth of Bangladesh, new and better interconnection agreement and future privatization of the fixed network. 26
1.11.4 Threats
Widest Coverage of GrameenPhone
GrameenPhone has network coverage in 61 districts as TMIB. Yet GP’s coverage is better than TMIB’s coverage, as GP covers all the upazilas and rural areas. Because of the availability of network in distant places and good frequency, GP has a superior brand image to people. This is of course a threat to TMIB.
Political Instability and Natural Calamity
Bangladesh is called red-zone in terms of political risks. The instability of administrative system has resulted in unstable regulations. With the change of Governments, regulations also change from season to season. This volatility has hindered TMIB from making a long-term effective strategy. At the same time, the country also has a high natural calamity tendency. Natural catastrophes damage the network towers situated in different districts of the country.
Recession in the Economy
Mobile phone is still considered as a ‘luxury’ in Bangladesh rather than a necessity. Being one of the developing nations in the world, the risk of recession in Bangladesh is very high and frequent. During the recessions, people are reluctant to invest behind luxury items such as mobile phones. This is a huge obstacle for TMIB to reach all population sectors in the country.
Non-cooperative Telecommunication Regulatory Body
The regulatory bodies in the telecommunication ministry are unfair and biased. Plus, the system itself is bureaucratic and lengthy in Bangladesh. Because of their non-cooperative attitude and injustice, the usual work place of TMIB is slowing down. This is of course a risk to the company. Customer Resistance against Tariff
Any new tariff or VAT is always a controversial issue to the people of our country. People in Bangladesh are reluctant to accept new tariffs and it takes a long time for them to approve it. In the budget of 2005-2006, the government imposed a tax of Tk 900 on every SIM card, which has created a huge debate and protest among customers. Many of the customers have stopped buying SIM cards. This tax also hindered the mobile operators to maintain a constant price level and to offer attractive packages.
Existing Competitors in the Market
At present, there are four private and one public mobile phone operators operating in the Bangladeshi market. All of the private operators are aligned with foreign companies. These companies are following aggressive marketing strategy and the level of rivalry offers every week at a striking price level. This high intensity of competition in the industry is a major threat to TMIB, as TMIB has to survive this fast paced competition.
Threats of potential New Entrants
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Besides the existing competitors, new and large competitors are also trying to enter the Bangladeshi market. Dhabi Group is on the verge of starting their operations soon. Also some other companies like Reliance, Tata etc. are trying to make an entry to our market. These new companies will increase the rivalry in the industry. Potential new entrants can get into the telecommunication market with cost effective approach and take off market shares. New domestic and foreign cellular phone companies can start telecommunication network business. As Bangladeshi people are very much price sensitive it may cause serious problem for AKTEL. Private T&T Phone Companies
Apart from the new and existing mobile phone operators, competition is also expected from private T&T phone companies. Because of the inadequacy of the public T&T Company, many private companies are coming in the market. These companies are also a threat to TMIB, as they offer similar services at a lower price to customers.
Possible Health Risk from Mobile Phone
Recently, a scientific study has shown that there is high risk of health hazard including brain tumor and cancer from the usage of mobile phone. The study concluded that long time use of mobile phone might cause such diseases and so people should reduce of mobile phone. Though there is no solid evidence of this fact, it has created an argument and panic among mobile phone users. This is naturally a threat to TMIB.
T&T Mobile
T&T is now entering the mobile telecommunication industry. It is now becoming an immense threat to for all other mobile phone operators by providing unfair advantages and cause severe problems.
Reduction of NWD and ISD Call Charge by BTTB
Recently BTTB has reduced its NWD and ISD call charges to promote LAN phone usages. This has affected the mobile phone industry and significantly reflected in the revenue earning of BTTB Price War
All the five companies operating in our telecom industry are fighting to get the market share in favor of them by cutting price of the mobile phone connection. All competitors are lowering the unit price and also providing pulse facility like AKTEL provides 1-second pulse for post-paid connection and ten-second pulses for pre-paid connection. So all the players in the market have an aggressive attitude, in terms of the pricing strategy. 1.12 AKTEL – Served Market
AKtel is providing the service using GSM 900 technology. Although their transmission quality is not questionable to the consumers, they are behind in terms of network coverage in the countrywide. They have 160 characters SMS interconnectivity with GP and BanglaLink. They have introduced GPRS recently. The post-paid consumers of AKtel are now using GPRS since August 2005. Besides having the business and family consumer functions, AKtel have information services for their subscribers. But it is not that much intensive like GP. To enhance the post-paid subscriber base, in June 2006 the company launched a new package named ‘Infinity’ with zero line rent and no SIM price and also redefined the regular post-paid package to attract more customers to subscribe to AKTEL post-paid connection. Primarily AKtel focused on the business users in Dhaka and Chittagong. They did not have any pre-paid service, which is more appropriate for students and general individuals until 2002. Then after by different offers AKtel tried to spread their focus on other customer segments. In 2003 and 2004 AKtel became very popular by giving packages with BTTB connectivity at comparatively lower price. From then AKtel has been increasing their students and family subscribers. Among all the mobile operators in Bangladesh, probably 30
AKtel has the most strong corporate customer base. Many organizations have been associated with AKtel. AKtel also offers this segment with attractive call charges. The offers to different companies vary. 1.13 Competitors Analysis
The term competition defies definition because the view of competition held by different groups varies. Most firms define competition in crude, simplistic and unrealistic terms. Some firms fail to identify the true source of competition; others underestimate the capabilities and reactions of their competitors. When the business climate is stable, a shallow outlook toward the competition might work, but in the current environment, a business strategy is really competitively oriented.
The telecommunication sector in Bangladesh is the most attractive and booming sector at present. The concept of mobile telephone has become largely familiar and astonishing in our country since early 90's with the ongoing technological advancement. Since then the entire mobile phone companies are trying to attract their subscribers through various worthwhile offers. Now Bangladesh has stepped into the world of first communication and communication is made easy and comfortable through the introduction of mobile phones. In our developing economy, mobile phone industry is one of the fastest growing areas as we can see that the numbers of subscribers are more than 10-million against the 3.5-million (approximately) land-phone subscribers, so the rising demand says that it will continue to develop vigorously for the near future.
In the telecom sector of Bangladesh the competition is really strategic oriented competition. Studied deployment of resources based on a high degree of insight into the systematic cause and effect in the business environment. Ever changing technological advances in the technological industry, customer demand and the scope of investment in this sector has made Bangladesh a profitable target for various multi national companies to setup mobile companies here. Currently, there are five operators in Bangladesh. Among them, TeleTalk Bangladesh Limited (TBL) is the only government owned telephone operator and the other
four are privately owned companies namely TM International Bangladesh Limited (AKTEL), GrameenPhone Ltd, BanglaLink and Pacific Bangladesh Telecom Ltd. (PBTL).
AKTEL’s major competition comes from all the four companies mentioned above. All the companies are aggressively marketing their product. Especially after Orascom has entered the Bangladeshi market, it has given the competition a new edge. The customers are looking for the best buy with bundled features & low price talk time.
1.13.1 Grameen Phone Ltd. [[[ GrameenPhone Ltd. is the number one and leading Mobile Telephone Company in the telecommunication sector of Bangladesh. In the year 2006, they are going to celebrate their ninth year of business. During these business years, they have achieved remarkable success establishing the largest network, widest coverage and biggest subscribers base of 8.5 million with more and more value-added services than any other mobile operators in Bangladesh.
Vision:
The vision of Grameen Phone Ltd. is “to be the leading provider of telecommunication services all over Bangladesh with satisfied customers, shareholders and enthusiastic employees”.
Core Business Strategy:
“Grameen Phone has a dual purpose: to receive an economic return on its investments and to contribute to the economic development of Bangladesh where telecommunications can play a critical role. This is why Grameen Phone, in collaboration with Grameen Bank, is aiming to place one phone in each village to contribute significantly to the economic uplift of those villages.” 32
As a telecommunication service provider Grameen Phone Ltd. plays a very important role in the economic development of Bangladesh. National Board of Revenue (NBR), Ministry of Post and Telecommunication, Bangladesh Telephone and Telegraph Board (BTTB) and Bangladesh Railway (BR) and Government bodies that are directly or indirectly benefited by Grameen Phone Ltd.
By bringing electronic connectivity to rural Bangladesh, Grameen Phone is bringing the digital revolution to the doorsteps of poor and unconnected. Grameen Bank borrowers are engaged in a business by providing valuable phone service to their fellow villagers. For them mobile phone is weapon against poverty. SWOT Analysis of Grameen Phone: [[ Strength:
Market leadership: Grameen Phone is the leading cell phone operator in Bangladesh with the highest number of subscribers representing more than 60% market share. Still the company is maintaining the consistency in its growth strategy throughout the country. Sound financial support: The capital size of Grameen Phone is almost $300 million, and this huge amount of capital is mainly invested by the shareholders. Moreover, global financial institutions like IMF, World Bank sanctions loans for Grameen Phone for different projects. The company is continuing to invest heavily in expanding the capacity of its network and coverage. Coverage: GrameenPhone has the largest geographical network coverage in the country than its any other competitors. It has approximately 2,989 Base Stations (as of 12 th October) operating around the country. The company is still planning to set up more base stations in the upcoming years.
Fiber-optic backbone network: GrameenPhone sub-leases the transmission capacity of its 1600 fiber-optic network, which is leased from Bangladesh Railway. Based on a contract, GrameenPhone can use this facility for the next 25 years. This benefit enables to set a nationwide network of GrameenPhone within a very compatible expense. International Roaming: GrameenPhone provides international roaming facility to its subscribers. It has international roaming agreement with 260 mobile phone operators of 102 countries (as of 12th October). Extensive availability: To make its product & service reachable to the mass market, GrameenPhone has set up approximately 3,967 Point of Sales (as of 12 th October) in the most convenient areas of the districts under its network. Well-established brand image: The word Grameen is a established brand name in this country. GrameenPhone has built its brand image by its profound service, widest network coverage and social responsibilities. Moreover, GrameenPhone is the second largest taxpayer created a better brand image in customers mind. Continues customer service: GrameenPhone has created a most effective ‘help line’ for its customers. It serves on twenty-four hours a day/ seven days a week/ fifty-two weeks a year basis. Through their customer service, they create a continuous relationship with their customers, which is the key to maintain the quality of a service.
WAP: Recently, GrameenPhone has launched their Wireless Application Protocol service through which subscribers can access Internet trough their mobile phone. Value-added service: GrameenPhone has launched two new value-added services. One is, the SMSPAY service that enables someone to send subscribers bill payments information to avoid barring subscription. Another one is, the Cell E-mail service that allows a user to send and receive e-mail using GP mobile phone. E-mail through mobile phone service has already proved to be beneficial to the subscribers, who don’t have access to the Internet.
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Weaknesses:
Inflexible billing system: The unexpected barring of connection due to a complicated billing system confuses the customers. Such hassles lead to an unfavorable impression for the company.
Ineffective Value-added services: Some of the value -added services like voice mail services and short messaging services have been unsuccessful due to language barrier and lack of know-how about the services.
Lack of channel strategy: GrameenPhone is now expanding its business through short-term distribution channel strategy to meet its present requirements. However, for its future market expansion to reach a new set of customers it has to take bold steps regarding long-term distribution channel strategy.
Network limitation: Though GrameenPhone has a very strong network setup in this country, but still several limitations like call drop, congestion, and poor connectivity with BTTB result a poor image for the company.
Pursuing market follower: GrameenPhone is becoming a market follower as competition in the telecom industry of Bangladesh is growing to a great extent. Being a market leader, it is not good for GrameenPhone to become reactive rather than being proactive.
Opportunities:
Lucrative market: Bangladesh is a highly lucrative market for mobile services due to its large & highly concentrated population, low penetration and high growth in mobile subscribers.
Only 10% of our total population has the access to mobile telephone, and the rate of growth is increasing rapidly. The recent years’ growth in this telecom sector indicates that there is an enormous potential for the development in information technology in this country.
Unmet demand: Current market growth rate in the telecommunication sector is ensuring a great opportunity for the mobile phone companies to grow rapidly. GrameenPhone has the opportunity to come up with variety of services with more & more lucrative features to make their business very attractive day by day.
Possibility of further network expansion: The kind of technology and both technical & managerial expertise GrameenPhone has, the company can go for further expansion according to their business strategy. Threats:
Aggressive marketing by other competitors: GrameenPhone may suffer because of aggressive marketing strategy followed by its competitors like BanglaLink, CityCell, or AKTEL Both CityCell and AKTEL are planning to develop countrywide network and BanglaLink is following a very aggressive marketing strategy by providing several new packages to the customers along with their attractive promotional activities. [ Rigid Government regulations: Recently, government has charged higher taxes on SIM prices, which is a good threat for the growth of mobile industry. Like any other mobile phone companies, GrameenPhone also has to go through several government procedures if they want to launch any new service package.
Deviation from original business plan: Due to the focus on several other business activities like sponsoring sports, social program, and charities, GrameenPhone is deviated from its original business plan.
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Price war: For any businesses, pricing is the big factor both for the companies and their customers. Unlike its other competitors GrameenPhone charges higher for any of its service packages. As its other four competitors are fighting hard for the highest market share, so they are charging less. Though they are providing better and quality services so pricing may not be such a factor for them. But in the near future, it might be a great threat for the company if they are not modifying their current pricing strategy.
Growing customer dissatisfaction: Due to higher price charging, GrameenPhone is facing customer dissatisfaction because there are others telecom companies who are charging less than GP and customers are choosing their services just because price is a big issue for the customers.
Served Market:
Grameen Phone is the first provider of GSM technology in Bangladesh. Their technology was at first based on 900MHz. recently, they have updated their voice communication technology to 1800 MHz. This should have given them a competitive advantage of better voice quality and transmission over their competitors. But the fact is Grameen Phone was renowned from the very beginning, for their better transmission quality and network. So, this up-gradation was not that much successful in creating a consumer awareness. GP has to put more effort in promoting this unique feature. SMS is the common feature for operators in the market. However Grameen has a unique option of having SMS interconnectivity with all the other operators at this moment. Lastly, a new, chapter, EDGE has been opened in Bangladesh mobile phone industry by GP. Currently, only 5000 thousand pre-selected subscribers of GP are enjoying this service. After few months it will be available for all.
For business and family communication GP has all the facilities available. They do have different packages suitable for business and family purposes. For example, having the offer of
“My Easy” numbers indicates their care about family contacts. This is a discount offer for calling to pre-selected numbers. Providing necessary information to the GP consumers has given more priority than the other operators have. They have affiliation with renowned newspapers like “The Prothom Alo” and “The Daily Star”. GP subscribers can get the latest news of any area by just dialing 2221 or 2222, in Bengali or in English. Besides GP has push and pull service providing a huge base of daily information needs.
People from every parts of the society use Grameen Phone. From a top official of the multinational company to a simple village homemaker have the choice of using GP. Business personnel can be from affiliated organizations (corporate users) or be individuals. Due to their longtime presence in the market, they have been able to grab a significant portion of the students as their customers. Although the public calling booths at city area is not very much attracted to GP lines, the rural people is a major user group of Grameen. The “Polli Phone” facility of GP has made the people in villages to make calls to their relatives living in city or in abroad at a very cheap rate
1.13.2 BanglaLink™
BanglaLink™ is the new member of the GSM family of Orascom Telecom Holdings. OrasCom Telecom Holdings is operating in 9 countries of the world. The subsidiaries include Egypt, Algeria, Pakistan, Tunisia, Iraq, Bangladesh, Congo Brazzaville, Zimbabwe, and Democratic Republic of Congo. The operational performance in 2004 was driven by a robust subscriber growth with a marked rise in commercial activities by OTH operations. The number of subscribers exceeded 15 million by August 2004, with prepaid subscribers constituting 73% of the total subscriber base. The company started its operation in Bangladesh on February 10, 2005 with the trademark BanglaLink™. A robust growth has been seen from the very beginning of the operation of BanglaLink™. Surprising Public acceptance resulted to get nearly 100,000 subscribers within couple of weeks of its launch in February 2005. By the end of May, BanglaLink™ was able to get approximately 400,000 subscribers. And now it has about 2-million subscribers in Bangladesh, which shows the most
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aggressive growth, and an unprecedented success in the mobile phone industry in Bangladesh. [[[ Vision:
The vision of BanglaLink is “Understand people's best need and create & deliver appropriate communication services to improve people's life and make it easier�.
Core Strategy:
“BanglaLink is in the business is to help make a difference in people's lives by providing affordable and reliable connectivity solutions. BanglaLink understands people's needs best and will create and deliver appropriate communication services to improve people's life and make it easier." SWOT Analysis of BanglaLink: [[ Strengths: [ Well capitalized: BanglaLink has the backing up financial capacity as well as huge investing capacity compared to any other mobile company. The company has the ability of market penetration. [ Cost of ownership is lower: BanglaLink provides the lowest total cost of ownership for the consumers. It is practicing in branding by operators and content providers. Thus the have been able to lower the production cost.
Environmental Consciousness: BanglaLink is doing the marketing as well as creating environmental awareness to make the citizens responsible towards society. They are trying their level best to provide appropriate communication services to improve people's life.
Motivated Human Resources: BanglaLink has a bunch a of motivated employees who are ready to provide significant labor hours to accomplish targets. Also the top & mid- level management of the company are very experienced.
Advanced Coverage: BanglaLink has the largest Geographical Coverage and it has achieved within a record time period.
Organizational Structure: BanglaLink has a centralized organizational structure that helps in easier coordination of business activities.
Weaknesses:
Insufficient Human Resource: BanglaLink has far fewer staff than the company actually requires in terms of work-pressure.
Centralized Workplace: As we know highly centralized organization meaning high level of bureaucracy.
Low Satisfaction Level: Currently, BanglaLink is having significantly less customer support services than is required in terms of the number of customers and the complexity of the services offered.
Complex Billing System: A varied and sometimes confusing billing system.
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Lower Profit Margin: Due to its heavy promotional and advertising activities, the company is spending a lot. So the cost is comparatively high, which enables lower profit margin for the company. [[ Opportunities:
Economic Growth of Bangladesh: Bangladesh is a developing country and the economic development is taking place in each every sector. Moreover, the public acceptance level for mobile phones is becoming higher and higher. So this is a very lucrative opportunity for Bangla-Link to grab the market. Prospect of Expansion: The ability to expand into new services that require an approach, which is compatible with BanglaLink strengths and that compensates for its weaknesses, e.g. provision of wireless data transfer services by corporate clients (corporate clients generally require less technical or otherwise support).
Enhanced Offerings: The integration of new commercially viable packages into current offerings e.g. calls & control package (pre-paid facility in post-paid connection) which have been recently introduced is also very much prospectus in the current situation. Technological Advancement: Expansion into landline services from dedicated stations across country that will provide compatibility with other Bangladeshi telecom networks. Threats:
Competitor’s Brand Image: The two major players GrameenPhone and AKTEL have been able to establish a strong brand image in this market because of which the GSM service of BanglaLink has to face some real challenges in the market.
Network Performance: Better network performance of GrameenPhone and AKTEL has led to better satisfaction level among the customers. So the company has to face some difficulties to
attract customers towards BanglaLink if it cannot provide much better facilities than its competitors.
Increasing Number of Competitors: Within a few months, Warid telecom is about to start its operations and some other companies are about to come to start their journey in this country. So the competition is going to be huge in the upcoming days for BanglaLink.
Served Market:
Although the history of BanglaLink starts from their previous entity "Sheba Telecom", the marketing efforts of BanglaLink are having a drastic change in the recent times. They are solely dependent on the GSM 900MHz technology. Even their website has the address www.banglalinkgsm.com. Their offer for giving 1000 free SMS is a vital step to make SMS popular among the mobile users of Bangladesh. But in terms of wireless Internet service, BanglaLink is till behind the major two mobile operators of Bangladesh. BanglaLink does not seem to have a great popularity among the corporate group of customers. Actually they are trying to grab the huge customer base of general people. Especially students are the prime targets of BanglaLink. By proving low cost packages, musical CDs, free SMS and different promotional offers, BanglaLink is trying to serve this group of customers. Rather than concentrating on Dhaka for the business use, BanglaLink is trying to reach mass population of Bangladesh. So, they are trying hard for their network upgrade and expansion. 1.13.3 City Cell Among the other four mobile phone companies who are running their businesses in the private sector, Pacific Bangladesh Telecom Ltd. (PBTL) is the pioneer. In 1990, Hutchison Bangladesh Telecom Ltd. was formed as a joint venture of Bangladesh Telecom (BTL) and Hutchison Whampoa of Hong Kong. The company began their operations as the analog cellular operator using the CDMA technology in 1993. In 1996, this company was renamed as Pacific Bangladesh Telecom Ltd. (PBTL) with the brand name CityCell. At present, the ownership of PBTL belongs to the Pacific Telecom Ltd., which is a concern of the Pacific Group and Hutchison Whampoa Ltd., a Hong Kong based diversified multinational conglomerate. 42
Pacific Bangladesh Telecom Limited has redefined the telecom business through marketing innovation, Unique BTTB connectivity, continuous technological up gradation and the highest standard of service to the customers proving that we value their money and treasure customer relationship. Vision:
The vision of CityCell is “To continue to be the leader in telecom industries in the region and provide complete communication solution to our customers with a smile.”
Core Strategy:
“Giving people the touch of Digital technology with greater customer satisfaction”
SWOT Analysis of CityCell:
Strengths:
•
Recently CityCell has merged with SINGTEL that is a Singapore based
company with an excellent business knowledge and financial strength.
•
CityCell is the only CDMA service operator in Bangladesh.
•
CityCell is providing the advanced nature of technology that holds potential
[
for a wide variety of innovative services to be introduced.
•
The company has special pre-paid products that are low-priced in the market.
•
CityCell maintains comparatively a low cost strategy that enables greater
profit margin for shareholders.
Weaknesses: [ •
CityCell is selling their connection with RIM, which is not usable in all mobile
phone sets. Therefore, users have the less flexibility to switch or change their sets with the newer version. This problem is seriously hampering the sales of new connection.
•
Network coverage of CityCell is poor compared to others. The subscriber’s
satisfaction level is very low.
•
The network coverage compared to GrameenPhone & AKTEL is really
inadequate. •
CityCell has diverse and sometimes a confusing tariff structure. Not only this,
CityCell provides very few value added service.
•
The company doesn’t have sufficient human resources than actually required
in terms of tasks to be accomplished. [ •
In CityCell, the management is basically centralized. As we know that highly
centralized organization refers to high level of bureaucracy.
•
The company is trying to impose their products and services to the clients,
without actually feeling their needs. [[ 44
•
CityCell perceives that the subscribers expect cheaper communication method,
no matter what the service quality is, whereas the subscribers expect superior network quality and coverage and after sales service, especially, complain handling and set repairing. Opportunities:
•
As CityCell is one of the first mobile operators and grownup with many ups
and downs with volatile market, the company can use the business experience with the financial help of SINGTEL to grab higher market share in the growing market.
•
As CityCell is the only CDMA service provider in the market, they can
differentiate this strength to compete in the market. [ •
CityCell has the ability to expand into new services with an approach to be
compatible with the strengths of PBTL, which also compensates its weaknesses.
•
The company has the opportunity to integrate the new commercially viable
packages into current offerings, e.g. Pre-paid services, which have been recently introduced with T&T incoming.
•
The prospect of expansion into landline services from dedicated stations
across country also provides compatibility with other Bangladeshi telecom networks for the company. Threats: [ •
CityCell is competing with some giant companies that have better network and
frequency. [
•
Financially strong companies are coming into the market and targeting the
market segment of CityCell. [[ •
The price war, which is a result of aggressive marketing strategy set up the
market by the giant companies, is the biggest threat for companies like CityCell. [ •
The fluctuating demand condition is also a rising factor for CityCell.
•
The political instability as well as the growth of economy, foreign Exchange,
government regulations and inflation rates- all together can become a threat, which has to be noted frequently by the company.
•
High degree of acceptance of GSM technology over CDMA in local market as
well as high degree of bargaining power of suppliers is also something that has to be considered by CityCell.
•
The network coverage of major GSM utilizing companies like GrameenPhone
and AKTEL, as compared to City Cell’s own partial coverage is also very high.
•
Another considerable factor is the tough legislation against easy expansion
into regional and international markets bypassing the state owned BTTB. Served Market:
CityCell is the only CDMA and RIM technology provider in Bangladesh. RIM is the newest technology offer from CityCell. It is an enhanced version of CDMA that requires a card module. Although CityCell has SMS but they have not introduced any WAP or GPRS system. Like most other operators, CityCell does not have any particular preference on business use or family use of their service. But they are the first provider of a family offer called “One2One”. It is a discount offer similar like the GP’s “My Easy.” 46
Compared to the previous two mobile companies, some packages of CityCell offer consumers a lower call charge. They have some unique features that seem to be very attractive to the public calling centers. The roadside stalls for phone and faxes are one of the prime customers of CityCell. Many calling booths are offering TK 3 per minute call charge. They have the lines of CityCell. Due the weaker network capability CityCell does not have the luxury of reaching the rural population massively. Another important user group of CityCell are the students. Besides low cost there is another reason. Because of using CDMA sets, CityCell mobiles are almost free from the anxiety of hijacking. So, risk adverse people like CityCell though this feature is absent from their promotions. According to us, it is because of the social responsibility and ethics. CityCell have different corporate offers for their associated organizations. 1.13.4 TeleTalk Bangladesh Telegraph and Telephone Board (BTTB) is the lone state owned fixed-line telephone operator in the country. In Bangladesh BTT operates basic telephone services, the national transmission network and the international gateway. The rest four private operators including GP have to depend on BTTB to connect to the fixed telephone lines and to the international gateway.
But the only government telephone service provider BTTB provides a very poor service quality in comparison to the private ones. The present scenario shows that the number of mobile phone subscribers is more than the fixed line ones. That is private sector telephone operators occupy more position in the market than government sector. During the last five years the growth of the mobile phone sector outstripped that of the fixed line telephones.
As of May 2002, there were about 600,000 fixed line subscribers and nearly 80,000 mobile phone subscribers in the country. The distribution of the fixed line telephones was also skewed. There were about 40,000 fixed line phones in the capital Dhaka, 80,000 in Chittagong and the rest were spread among the district towns and other areas. Virtually there were no telephone connections in the rural areas where more than 80% of the total population live. At the end of 200, the scenario has changed a little bit but still BTTB is not able to connect most of the places in the rural Bangladesh.
Core Strategy:
“TeleTalk is aimed at to provide mobile service at the lowest cost and in affordable price.” SWOT Analysis of TeleTalk: Strength: [[[ •
The company has the facility to get loans from Banks at attractive rates.
•
Being a government-owned company TeleTalk can have the benefit of cheap
[[
labor. [[[ •
BTTB has an improved community image, which will benefit the company.
•
BTTB has adequate resources like financial ability, expertise, people, etc. to
[
run the operation productively. [[ •
BTTB has a feasible customer base, which helps them to run the operation
beyond the breakeven.
•
Corruption at Government level is a source of Strength because backdoor
dealing decreases the cost and reduces the risk of the business.
Weaknesses: [ •
BTTB has been able to provide a limited number of TeleTalk connections. It
operates in lesser routes in comparison to competitors. There is no standard
48
operating procedure for crisis management as well as there is a lack of long-term Distribution strategy. [ •
BTTB offers poor customer service and complicated price structure for
TeleTalk. Moreover, the billing System can’t handle sophisticated billing process. [ •
The absence of R&D and less scope for marketing the product are also among
the major weaknesses of TeleTalk. [ •
The employee motivation level of the company is low and as a result the
employee turnover rate is high.
•
They do not have the economy of scale. They have lack of expertise in
marketing and operation departments. A strong organizational culture has not grown to encourage innovation and creativity. They are too much centralized. [ Opportunities: [[ •
BTTB has the opportunity to expand the service of TeleTalk to other routes.
Also they have the opportunity of expanding internationally. [[ •
The company can look for some other customer segments rather than being
too much focused on executive customers. [ •
BTTB has the scope to provide affordable and reliable connectivity solutions.
•
The recent trend shows that there is a huge need for telecom services in
Bangladesh as the social acceptance level is also very high.
•
The advanced interconnect agreement also provides the opportunity to go for a
better network coverage.
Threats:
•
Instable political condition is a big threat for the business.
•
New competitors may emerge and as a result the bargaining power of the
customers will go up.
•
One-sided government’s regulation can also be threat to the company.
•
Poor infrastructure and communication facilities lead to unacceptability
among the customers, which will not fruitful for the business of TeleTalk.
•
Misuse of power by the political personals is also one of the important
uncontrollable factors for the company. Served Market: TeleTalk is the newest player in the mobile phone service operator world. Although it is managed by BTTB, the government has the full control over them. They have a GSM technology and are planning to introduce GPRS in few months. The customer focus of TeleTalk is not very clear. They are not selling SIM card in the open market. Rather they are organizing lotteries for the distribution of lines. Due to the lowest call charges in the industry, everyone is interested to get a TeleTalk SIM. Their customer target can be extracted from the lottery quota they have provided: professionals (doctors, engineers, lawyers, armed forces, etc), students, business people, and journalists.
TeleTalk is the newest competitor in the market. They have excessive demand for their services. But their supply of SIM card and lines are not capable to support this demand. Although they have high demand, their market share is not in a comparable position. But the 50
high demand for their product indicates high growth potential for their products. As a result, TeleTalk is also in the Problem Child quadrant.
From the above ratings it is assumed that the large firms are situated very close to each other. They are very competitive. New firms must possess distinctive competencies to fight with existing firms. 1.14 Legal Issues & Problems Faced by AKTEL: The legal issues and problems faced by AKTEL are not indifferent from other mobile companies in the industry. The companies more or less face alike problems. The legal issues, procedures and problems are discussed below. 1.14.1. Licensing By paying some fixed amount of fees one can get the license. But the companies need to pay tariff on monthly basis. There is a clause in the license that for every handset Tk. 1100/yearly loyalty needs to be paid. The customers are reluctant to pay this, so are the mobile operators. Both of the parties are not paying the loyalty fees and government did not even cancel the clause. So a very good amount of money is due by the companies to government. 1.14.2. Reduction in Tariff Rate Government pressurizes mobile companies to reduce the tariff rate. Yearly, the companies need to verify with the government regarding the tariff rate. The government makes sure the companies provide standard services to the customers. 1.14.3. VAT All mobile companies need to pay 15% VAT. This is a sector where the government does not have any investment while enjoying the revenue. This is unique to Bangladesh. Users are paying the 15% VAT which they do not want to pay. 1.14.4. Tax Every year companies pay large amount of taxes. The companies need to pay taxes even for the equipments they purchase. Recently, the government has imposed a sales tax of Tk 900 on the purchase of each SIM card. A survey has been conducted to assess the impact of the
introduction of the new tax, which shows that the growth of new subscribers dropped by two to seven percent in June 2005. During that time period, only 76000 new clients were added. 1.14.5. Inter-Operator Problems Inter- operator problems came into being when different mobile companies came into the market. When there was GP and AKTEL in the market, both of the companies faces problem while doing business. There was a lack of infrastructure in the industry. Problems aroused in the field of inter-operator connectivity. At that time “Sender Keep All (SKA)” was in practice. As long as there were equal amount of traffic there were no problem. But there was a time when, more tariff congestion came from AKTEL. GrameenPhone (GP) asked AKTEL to share the profit. As AKTEL denied, GP started to block the calls coming from AKTEL. It created unnecessary system overload. In order to put an end to the problem AKTEL agreed to share the profit thus “call termination peak/off-peak” was introduced. And equilibrium prevailed in the market.
CHAPTER-2 2.1 AKTEL an Overview Company at a Glance: In this age of communication, Bangladesh is not staying behind in terms of keeping pace with the rhythmic movement of this age of information. Among the key players who are having a significant role to fasten the growth of telecommunication in Bangladesh, AKTEL is the second market leader in the telecommunication sector in Bangladesh. The company achieved remarkable success during this period. It is now able to say that it has the second biggest subscriber base and more value added services than any other mobile phone operators in Bangladesh. AKTEL has a very strong competitive position in the telephone industry in the country. 2.2 Name & Organizational History of AKTEL AKTEL is the dynamic and leading end-to-end countrywide GSM mobile communication solutions of Telekom Malaysia M International (Bangladesh) Limited. The ministry of post and telecommunication of the government of Bangladesh offered TM international 52
Bangladesh Limited a nationwide digital cellular license in 1996. TM International Bangladesh Limited launched its services in Bangladesh on November 15, 1997 under the brand name of AKTEL. Since the beginning of its operation, AKTEL has been a force to be considered with in the telecommunication industry of Bangladesh, being one of the fastest growing mobile communication companies offering comprehensive GSM mobile solutions to more than two million subscribers. Today, AKTEL possess the widest international Roaming service in the market connecting 315 operators across 170 countries. With a network covering all the 61 (allowable) districts of Bangladesh, coupled with the first Intelligent Network (IN) prepaid platform in the country, AKTEL have gear to provide a wide range of products and services to customers all over Bangladesh. At the heart of all of the success of AKTEL today, is a young dynamic workforce comprising of about 2,000 highly motivated and skilled professionals. Today, AKTEL is recognized as a leading brand in Bangladesh and this is driven by its persistent pursuit of quality and technology, putting it clearly ahead of the rest. The future with AKTEL is promised to be exciting as it strives to employ the best resources and latest technology in offering many more innovative and exciting products and services. Though aggressive investment to extend network coverage and improving call quality, AKTEL has been in constant motion to maintain its commitment to provide subscribers the best possible cellular service. The energy surrounded all (allowed) upazilas by the end of 2006. AKTEL is looking forward to massive investment to target 6 million subscribers by 2008, facilitated by more than doubling the number of the base stations. That is, the objective for AKTEL communication seems to generate sales and to approach toward building a strong and consistent brand image in the mind of the consumers to provide them a reason to select AKTEL over others. 2.3 TMIB Operation, Management, and Corporate Offices TMIB's Chairman is Mr. A.M. Zahiruddin Khan (ex, Chairman, TM International Bangladesh Ltd.) and the Managing Director is Dato Ezanee Ab Aziz. TMIB officially got its license to
operate in Bangladesh in November 1996, and started functioning in the market from 15 th November 1997. TMIB provides standard mobile connections with NWD and IDD facilities. They also provide mobile-to-mobile services. It has fully covered the Capital city Dhaka, and started functioning in the Port city from 26 th March 1998. In the same year they expanded their coverage in Narayanganj the Business City and an important one closer to the capital city Dhaka. They have also reached the city with biggest beach of the world Cox's Bazar. Now AKTEL is covering 61 districts of Bangladesh. TMIB is a full-fledged business enterprise with a corporate head office, Finance Division, Human resource Division, Technical Division and Marketing Division, Information Technology (IT) Division; all are functioning under efficient and highly qualified persons. 2.4 Shareholders of AKTEL The Company AKTEL, with a full title being: TM International Bangladesh Ltd., was founded as a joint company of the Telekom Malaysia Berhad from Malaysia and the A. K. Khan & Co. of Dhaka, Bangladesh.
It operates as a Limited Liability Company, where a founder and a majority shareholder, the TMIB – member of the Telecom Malaysia, owns 70% shares, while the minority shares of 30% are being controlled by the A. K. Khan & Co. Bangladesh. AKTEL is proud to be associated as part of the Telecom Malaysia Group (TM), which is strong financially, and internationally renowned for its successful ventures like MTN, the market leader in the 54
telecommunication industry in Sri Lanka. It has a global presence in 11 countries with staff strength of 30,000 Group wide. TM has recently made a couple of major acquisitions in India and Indonesia in the effort to stamp its presence internationally. In Indonesia, TM has acquired 27.3 per cent interest of PT Excelcomindo Pratama, the third largest mobile operator and in India, 47.7 per cent stake in Idea Cellular. TM hopes to extend its regional and global presence with these new acquisitions. 2.5 Organization Structure of AKTEL AKTEL places a high value on human resource development and the contributions made by its employees. They preserve to maintain a productive and harmonious working environment in the whole organization. AKTEL always continues with its efforts to improve the efficiency of its employees and align them to the right positions with well-defined responsibilities. Because of the rapid expansions of its networks and enormous growth of its subscriber base, the company has increased its workforce. AKTEL has successfully hired some key senior managers who were recruited on the basis of their professional expertise and experience. In order to cope up with the dynamic nature of the company’s business, initiatives are always taken to restructure and recognize the company’s existing set up. It always evolves standardized management systems and procedures across functional divisions, focusing in particular, on the effective integration and assimilation of all the organizational units. The organization is headed by its Chief Executive designated as the Managing Director entrusted with overall responsibilities of business direction of the organization and leading dynamically towards the attainment of its Vision, Mission, and Goal. In attaining the above mission, the Managing Director is assisted by 4 General Managers & 1 Director, Coordination. TMIB has established a strong and formidable sales channel, which consists of direct dealers and its own sales force.
Managing Director
Affairs CoordinationCorporate & Division Regulatory Div. Director Head of CA C&R
Marketing Division GM Marketing
Finance Division Chief Financial Officer GM of Finance
HR Division SR. Manager HR& Admin.
Internal Corporate Audit Division Strategy Division Manager Manager
Customer Division Head of CA
Care
Information Technology Division GM of IT
Technical Division GM Technical
Figure-2: Organizational Structure. 2.5.1 Marketing Division Marketing division constitutes seven units. A brief description of each unit is given below: 1. Brand and A&P Brand and A&P denotes to brand and advertising & promotion. This unit deals with the overall brand management and promotion activities of the company. The unit covers both outdoor (billboards, road-overhead etc) media and indoor (print & electronic) media. This unit is also responsible for communicating with the advertising agencies, since AKTEL does not have any in-house agency. Each unit has a unit-head who reports to the AGM of Marketing. 2. Product Development Product development unit is like the R&D unit of a company, which is responsible for developing new products and services. This unit is closely related to the marketing research unit and together the units come up with new service concepts and ideas. Product development unit is also responsible for monitoring the core services (Pre-Paid and PostPaid). Like other units, this unit also has a head reporting to the AGM. 3. Marketing Research and MIS AKTEL has one unit covering both marketing research and marketing information system (MIS). This unit conducts quarterly research through research firms and in-house interns. The unit is also responsible to keep track on the latest innovations and new offers of other operators. In TMIB, this unit is not a full-fledged unit yet. 4. International Roaming 56
International roaming (IR) unit is basically responsible for ISD, international SMS etc services. The core task of this unit is to negotiate with foreign telecommunication companies and to expand the international coverage by making deals with them. There is a head of IR who reports to the AGM. 5. Corporate Sales Corporate sales unit deals with the sales of products and services to other companies. The unit makes agreements with different companies to be the corporate clients of AKTEL and only handle the corporate level sales. 6. Direct Sales Direct sales unit is responsible for the sales of products and services to the mass customers through the customer service centers. AKTEL has eleven customer service centers around the country and these centers sell the services to the customers directly. 7. Dealer Management Dealer management unit oversees the dealers of the company around the country. AKTEL has four dealers and one agent and they need to be monitored and supervised constantly. The head of this unit reports to the AGM of Marketing. 2.5.2 Information Technology Division IT division constitutes seven units and they closely work together. 1. Value added Services (VAS) Value added service is a unit that implements the developed concepts and ideas of the marketing division. The unit is responsible for the development of the software, which will be used for the application of the new services developed by the product development unit. Simultaneously, this unit handles the VAS content providers who are the third party to the company. 2. Billing The billing unit is responsible for processing and monitoring the billing systems for the PostPaid users. The unit has a manager who reports to the AGM of IT.
3. Rating 1. Post-Paid This unit is responsible for charging the rates of Post-Paid service. The unit fixes per-minute and pulse rates and also fix the pulse durations. It also changes the rates on demand basis. 2. Pre-Paid This unit only deals with the Pre-Paid service. It administers the e-fill and scratch card systems. At the same time, it fixes per-minute and pulse rates and fix the pulse durations. 4. Product Configuration This unit is responsible for designing and developing products and services. It develops the blueprint of the product-design. 5. Billing Operation Team Billing operation team is responsible for administering the entire billing process and developing required software for collecting bills from Post-Paid users.
6. Customer Relations Management (CRM) This unit supplies required software to the customer ca-e centers and work with these centers side by side. The centers usually inform CRM concerning their necessaries and the unit prepares suitable software for them. 2.5.3 Finance Division Financial division has eight units dealing with financial matters of the company. Organ-gram of Finance Division: CHIEF FINANCIAL OFFICER HEAD OF FINANCE AND ACCOUNT HEAD OF FRAUD AND CREDIT MANAGEMENT
58
This division comprises of major 3 departments:
o Credit Control o Finance o Budget The responsibilities of the finance department are: o Attending to all financial planning and control o Budget and budgetary control o Provide management information o Development of system and method o Ensure proper internal control over the company o Analysis of financial statement for future action Information flow for inter-departmental and external 1. Treasury Management Corporate finance unit consists of treasury management and L/C. Treasury management deals with the inflow and outflow of the company, whereas L/C (Letter of credits) deals with the L/C opening banks and other foreign banks. 2. Accounts Payable This unit keeps track on the accounts payable of the company. 3. Accounts Receivable This unit keeps track on the accounts receivables of the company while preparing the balance sheet. As TMIB is a large company with thousands of financial transactions everyday, a unit to keep track on the accounts is necessary. 4. Core: Account
Core account is an important unit of the finance division dealing with the budget and fixed assets. The annual budget of various departments is prepared under the close observation of this unit. 5. Revenue Assurance Revenue assurance unit consists of revenue assurance and fraud management. Revenue assurance monitors the transactions and assures full protection of the finances. On the other hand, fraud management protects the fraudulences take place in the daily transactions. 6. Taxation Taxation unit takes care of the tax, VAT and tariffs of the company. 7. Reporting Unit The reporting unit reports the entire financial transactions of TMIB to the parent company in Malaysia. 8. Costing This unit forecasts the costing of different departments and resorts them regarding the expected expenditure of any alteration. 2.5.4 Corporate Strategy Department The corporate strategy department determines the long-term strategies and the short-term plans. All the corporate level policies come from them and they are also responsible for the implementation. 2.5.5 Corporate Affairs Department The corporate affairs department is responsible for maintaining a liaison with other major companies. Through this department, TMIB makes business deals with other corporations and assist each other. 2.5.6 Coordination Department
60
The coordination department is responsible for the internal and external synchronization. At one hand, they coordinate with outside companies. Along with that, they harmonize among the divisions and departments inside the company. 2.5.7 Relationship among different Divisions & Departments An organization is like complex machinery consisting of different parts. Different functional divisions and departments are the different parts of this organizational machinery. Therefore, to make an organization a success, the divisions and departments must work accordingly. In AKTEL all the divisions and departments are closely tied with one another. Sales unit makes sales forecast, identifies market's potential opportunity and sends it to the technical division for doing the plan for new coverage area. These two divisions jointly plan for increasing the coverage area. If there is any complaint regarding the networks Customer Relation Management unit informs it to technical division for solving it. Again Customer Relation Management Unit informs marketing division about the problems and suggestions regarding the products and their selling procedure. Finance division is related with al the divisions for fund allocation and fund management of all shorts and giving salary to all the AKTEL employees. Human Resource Department meets the employee need of other divisions by conducting total recruitment process. 2.6 Company Acquaintance: 1. Vision: To be the most preferred GSM cellular provider in Bangladesh. 2. Mission: To provide total customer satisfaction the company strives to become the most preferred GSM cellular service provider in Bangladesh. TMIB will achieve this through developing people, products, and services of the highest quality and meeting the needs of its customers, employees, shareholders, and the nation. 3. Theme: AKTEL always strives to uphold the dictum “Customer First” 4. The Business Slogan: “CLEARLY AHEAD” The whole is the sum of parts and when the best come together; the results can be truly spectacular. TMIB brings AKTEL Mobile phone service, a digital cellular
phone service, which will prepare better for life in the fast lane. AKTEL GSM always keeps so near, even when so far. 5. Objective: ◊
Total commitment to the needs of customers.
◊
To follow the highest ethical standards.
◊
Continuous improvement of all work processes.
◊
Permanent improvement of all the employees’ knowledge and skills.
◊
Securing the quality of the service to match the quality of service offered by the world's most successful companies in the field.
◊
Preserving the company's leading position in the national market of mobile telecommunications.
6. Global Mission of the Company: AKTEL wants to provide its customers the best quality service in terms of: ◊
Trusted technology around the world.
◊
Wide coverage with digital clarity.
◊
Digital security with peace of mind.
◊
Various choices of value-added features.
◊
Better customer service-not just promised, but delivered.
◊
Competitive rate and better billing.
7. People: The most important key resource factor in TMIB is its efficient human resource. Not only this, its decisions are based on facts from market research and coverage survey. Also, the above can only be achieved through the right people. AKTEL has put keen eyes in developing its employees though proper training, as they believe that the most important asset for TMIB is its staff customers because they are the internal customers. When the internal customers are well trained, motivated and confident about their performance, only then they will deliver the most to satisfy the external customers.
62
8. Technology: The Global System for mobile or GSM technology of AKTEL is the most widely accepted digital system in the world, currently used by over 400 million people in 150 countries. In Bangladesh, AKTEL use the 900 GSM technology because AKTEL is committed to give the customer the very best. Presently, TMIB offers GSM digital cellular services in all divisional Headquarters and all major big districts. 9. Major milestones of AKTEL: AKTEL is one of the major players in the mobile telecommunication industry in Bangladesh, which concentrates on offering GSM communication services for private and corporate customers. The company’s intention is to promote the wireless lifestyle – the complete mobile society. AKTEL is renowned for bringing new service offers in Bangladesh. Below, some of the first time offers are mentioned: •
First time introduced the ‘Mobile plus (PSTN Incoming Connectivity Only) Product Services’ in Bangladesh.
•
First time introduced the Tele-ramadan (timing of Iftar and Sehri during Ramadan) under Tele-info Services in Bangladesh.
•
First time introduced the Seamless Coverage throughout the Dhaka-Chittagong Highway and named it as ‘Chittagong Dhaka Corridor (CDC)’.
•
First time introduced the full-fledged IVR based Customer Services (Call Center) in telecom market.
•
First time introduced cellular services in the most northern part of Bangladesh by launching AKTEL Service in Rangpur and Dinajpur in 2002.
•
Introduced the automatic system generated bill amount and payment request for the Post-paid subscribers in 2002. The automatic unbarring facility, after necessary payment making by the subscribers, is also a part of this system.
•
First time introduced message-greeting system with Fun Dose in Bangladesh.
•
Introduced GPRS (General Packet of Radio Service) for the first time in Bangladesh.
•
First time introduced 30-second pulse rate in Bangladesh, recently AKTEL has introduced 10-second pulse for the pre-paid users and 1-second pulse for the Post-paid users.
•
First time introduced club membership offer for the exclusive users of AKTEL. The club is known as Club Magnate, which offers extra services with its Platinum, Gold and Silver cards.
10. Long-Term Vision of the Company: AKTEL strongly believes that subscribers are their most valuable assets. They have a strong Customer Service Center. To always be with their customers the AKTEL "Help Line' is available. AKTEL has successfully migrated to a new switch with higher capacities in terms of accommodating higher customer base and as well as to let them use all the basic supplementary services under GSM technology. That is why the expertise and experience of TMIB are acknowledged throughout the industry. Demand is growing all the time, not simply for the services it already provides, but for greater and more diversified services and even higher quality performance. The company introduced the both-way national roaming all through their network coverage. The Pre-paid services with enhanced features have been commercially commenced successfully and now they are taking some projects to accumulate more advanced technological features in their network. In terms of Network Quality, the company will ensure not only the equipment are of world class standard but more importantly its size or capacity is catered to the right dimensioning of customer base, in order not to face the problems of drop calls or congestion. All these are done through proper planning, control and schedule maintenance program. They maintain the benchmark for providing the quality services. They monitor these through generating regular reports and on site survey. The customers have appreciated the recently launched ‘Loyalty & Retention Program’ to a large extent as they are getting the opportunity to share their opinions and objections regarding the service with the AKTEL staffs. Based on the customer complaints, if there are any weak signals or a call drops, the skilled engineers are providing services round the clock to resolve the problem instantly. The most important key resource factor in TMIB is its efficient human resource. Moreover, its decisions are based on facts from market research and coverage survey. And it is a clear-cut fact that all the above objectives can only be achieved through the right people and eventually AKTEL is ensuring quality services by quality people. TMIB has the plan to give opportunity to every household in using cellular service in the country at the competitive price providing unparalleled quality service and customer care. In achieving this goal, they 64
can't wait for more interconnection facilities with the fixed network. TMIB is planning to enforce their strong efforts to create their own independent network. They have already started the Dhaka-Chittagong AKTEL backbone. The future plan is to vigorously expand the network, which was called cell-to-cell expansion covering almost all the regions of Bangladesh, and to set building blocks to become the market leader by 2008. 11. Marketing Strategies of AKTEL: TM always wants to achieve the desired sales growth and customer base. TM wants to encourage the existing customers to use more of their services. They launched a package called "Aktel Eid Double Bonus" which was one of their successful initiatives for obtaining potential customers. Product Positioning: Initially the target for AKTEL was to reach the top, but other mobile operators are also targeting to the grass roots level and thus increasing their customer base. TMIB wants to be the leader with good quality and designing products for the middle and lower middle class range too.
•
Marketing Mix:
Product •
Continuous improvement of quality
•
Repositioning of slow moving products to different target markets Always branding AKTEL with all packages with a GSM service
Price •Necessary changes in tariff structure, and changes and terms and conditions. •Penetration pricing in the face of competition •Skimming policy possible
Promotion •Brochures with all necessary info •Press ads •TV commercials (in future)
•
Billboards
Place/Distribution •Make effective use of distribution •Make product service delivery system more effective and less time consuming •Wider distribution network to make service more accessible. 2.7 Network AKTEL network covers all the 61 districts of Bangladesh, and with the first intelligent network (IN) pre-paid platform. Dhaka
Sylhet
Barisal
Khulna
Rajshahi
Chittagon
Division Sherpur
Division Sunamganj
Division Barisal
Division Kushtia
Division Panchagarh
g Division
Jamalpur
Sylhet
Pirojpur
Meherpur
Thakurgaon
Netrokona
Moulavibaza
Bhola
Chuadang
Nilphamari
Mynmensing
r
Jhalakathi
a
Lalmonirha
h
Hobiganj
Payuakhal
Jhenaidah
t
Kishoreganj
i
Magura
Dinajpur
Tangail
Barguna
Jessrore
Rangpur
Gazipur
Narail
Dhaka
Satkhira
Narshingdi
Khulna
Rajbari
Bagerhat
Narayanganj Faridpur Munshiganj Shariatpur Madaripur Gopalganj The Areas under AKTEL’s Network 66
New Coverage Area Technaf to Tetulia 61 Districts Technaf
India
India
India
Bay of Bengal
Tetulia
2.8 Future Targets of AKTEL AKTEL is a company with increasing growth trend from the very inception phase. At present, in the 8th year of its operations AKTEL has achieved a subscriber base of approximately four million. The company has a number of plans for the forthcoming future years.
Within 2007, AKTEL has the target to reach a subscriber base of 6,000,000 and high revenue generating customer base of 200, 000. Within this year the company is intended to cover all the districts of the country. Taking all the probable threats in the industry under consideration, including the introduction of WARID telecom, AKTEL is intended to set its building blocks to become a market leader by 2008. Chapter - 3 3.0 Products & Services of AKTEL 3.1Post-Paid Service AKTEL Previously there were many sub-categories under the post-paid package of AKTEL. Recently in the month of August’ 06, the company has redefined its post-paid package and named it as “Signature”. Under this package, all the post-paid M2M subscribers have been auto upgraded to Post-paid Standard NWD, Post-paid M+ to Post-paid Standard NWD and Post-paid Standard NWD to Post-paid Standard IDD at free of cost. The subscribers are also going to enjoy the reduced line rent. Signature allows the customers to enjoy the following the services: •
BTTB incoming & outgoing
•
NWD and IDD facility
•
Per second billing facility
•
Reduced Line Rent
•
Smart Pay - to enjoy uninterrupted service by paying monthly bill even staying at your home.
•
5FnF numbers that allow you to talk at a reduced rate
•
All other additional facilities of AKTEL Post-Paid
For the new customers, the Standard NWD (Domestic) package is priced Tk 1000 with a credit limit of Tk 1000 and the Standard IDD is priced Tk 2000 with a credit limit of Tk 1000. Under this package, the customers will also be able to block or unblock a particular 68
facility such as BTTB outgoing or IDD connectivity by sending a message to a short code. To avail the service right now, please visit any AKTEL Customer Care Centers. Customers will be able to migrate from Domestic to International for a cost of TK 1,000 (VAT included). Another key factor is, there will be a 50% discount on line rent if monthly bill amount ranges from Tk 1500-Tk. 2000, and 100% discount if bill amount exceeds Tk. 2000. The subscribers have the facility to enjoy off-peak rate all day long (8am-12am) on any Government holiday. [ 3.2 Pre-Paid Service 1. AKTEL Joy A unique package of two prepaid connections that keeps
dearest one to
stay near. For people, to whom staying connected to the
dearest one is
most important, for them it is the right choice. The two connections are paired with each other and it has the lowest
call
between the Partners. Having similar rate plan like AKTEL
POWER it
also has the highest number of FnF(5 Nos) to any operators.
rate In
short, AKTEL JOY brings joy by letting the dear ones stay closer. Connection Price: Tk.400/- (Two SIMs) All registered customers will now enjoy Tk.1/min to any mobile 24 hours For details check out: Current Promotions Regular tariff applicable for unregistered customers below: •
All charges are excluding 15% VAT
•
For BTTB charges, BTTB time band will be applicable
•
Highest 5 FnF to ANY mobile operator
•
Joy Package price (2 SIMs) : Tk. 400/-
•
Free talk-time of Tk. 75 upon activation on each connection 5 FnF to any operator
•
BTTB incoming full FREE
Where to buy: AKTEL Customer care, AKTEL Touch Points (ATP) & all the mobile outlets nationwide
2. AKTEL Power A full-powered prepaid package for experienced
users. For people, to
whom talking means working, it is the right choice.
It
customers the highest number of FnF (5 Nos.) to any
operators.
way BTTB, NWD & ISD connectivity gives the
offers
prepaid Both-
customers
freedom. It also gives two off-peak time-bands for convenience to the customers. In short, AKTEL POWER means empowerment. Connection Price: Tk.225/-. All registered customers will now enjoy Tk.1/min to any mobile 24 hours For details check out: Current Promotions Regular tariff applicable for unregistered customers below: • • • • • •
All charges are excluding 15% VAT For BTTB charges, BTTB time band will be applicable Highest 5 FnF to ANY mobile operator Power package price: Tk. 225/Free talk-time of Tk. 75 upon activation 5 FnF to any operator BTTB incoming full FREE
Where to buy: AKTEL Customer care, AKTEL Touch Points (ATP) & all the mobile outlets nationwide. 3. AKTEL Phurti An entry level package mainly for new users. Its simple and economic rate plan offers convenience. Phurti also offers 3 FnF with 1 other operator FnF. In total, Phurti means ease. Connection Price: Tk.175/All registered customers will now enjoy Tk.1/min to any mobile 24 hours
70
Special Offers of AKTEL Special Offers: There are some things in life that never change; like the ever beautiful father daughter relationship or the ever romantic relationship between a husband and a wife. Your bondage with AKTEL is as special as any such relationship. And to value that relationship AKTEL is now presenting the best offer in the market for all its registered customers. It is a single offer for both prepaid and postpaid for 24 hours. So, get registered now and enjoy the offer specially designed for you! Conditions: This offer is applicable for all the current & newly registered prepaid and postpaid customers of AKTEL Complete your registration before 16th February, 2008 To know your registration status, Type REG and send to 4040 (Free of charge) or call 123 Register only at AKTEL Customer Care Centers and designated AKTEL registration points To find your nearest AKTEL registration point, type the first three letters of your thana type the first three letters of your district and send to 8734 Customers will enjoy the offer within 72 hours from registration date Joy Partner, AKTEL FnF & BTTB rates will remain unchanged Pulse of respective packages will remain the same Offer valid until further notice VAT & conditions applied
Registration
can
be
this
easy!
As per the Bangladesh Government's directives, registration is mandatory for all customers. Visit your nearest AKTEL registration point from December 16th to February 16th 2008 for easy and hassle free registration experience What you need for Registration/SIM replacement:
Photocopy of any valid photo identity e.g. passport, office ID, driving license, gun license etc. Correctly filled-out registration form In case photo ID is not available: Collect the BTRC authorized certificate form from any AKTEL Customer Care, AKTEL Touch Point or any AKTEL Dealer Point. Get it attested by Upazilla/Union Parishad Chairman or local Ward Commissioner or a First Class Gazetted officer.
72
3.3. Value Added Services The value added services are those that are additional services available upon request: 1. Short Message Service (SMS)
In our mobile phone SMS acts like an advanced through
this
we
can
send
pager, messages up to 160
characters directly from one AKTEL mobile to another AKTEL or to other mobile phone operators. The Short Message Service (SMS) center number of AKTEL is +880180100000004.
Post-Paid / Pre-Paid AKTEL – AKTEL AKTEL – Others
Tariff Per SMS Tk 1.00 Tk 1.00
Few months back, AKTEL introduced Mayer Bhasha Bangla SMS, with which the customers can enjoy the Bangla SMS by installing "AKTEL Mayer Bhasha" software in their respective handsets. 2. Voice mail Service (VMS) Voice Mail Service (VMS) is an easy to use personal answering service. It answers the calls when someone is not available to take them. The unanswered calls are forwarded to
voicemail. Caller will hear a recorded voice or his/her personalize greetings requesting them to leave a message. The receiver may retrieve these messages later. Voice Mail Service (VMS) has the advanced facilities as it can respond
When your line is busy or
Unanswered or
You are unreachable
And it will respond to more than one caller at a time.
3. AKTEL Voice SMS AKTEL ‘Kothar Chithi’ allows the customers to send SMS with their own voice to any AKTEL or other mobile numbers with AKTEL Voice SMS. With this service, someone can even surprise your dearest one by sending Voice SMS anonymously. 4. International Voice SMS A few months back AKTEL has launched its International SMS service with more than 500 operators globally. It will facilitate the customers to communicate internationally without the high expenses of voice calls. With this service, the customers can send or receive SMS to and from other mobile networks across the world. AKTEL International SMS allows exchanging messages with family, friends, and associates staying far away, at regular SMS tariff. 5. Friends & Family (F n F) The Friends & Family (FnF) feature allows all customers to add at least 5 AKTEL numbers as their FnF number. The customers can talk to these 5 FnF numbers at reduced rates (Postpaid: Tk 0.90, and Pre-paid: Tk 0.90 excluding VAT) at anytime of the day. 6. E-fill AKTEL has launched the first ever Electronic Refill system in Bangladesh whereby Pre-Paid customers
will
be
able
to
recharge
their
accounts
via
SMS,
available
at
dealers/outlets/designated agents around the country. Electronic Refill is a great new recharge option for Pre-Paid subscribers, as it does not rely on the availability of scratch cards for topping up any AKTEL Pre-Paid account. The customer benefits from this system through extensive availability, convenience to recharge Pre-Paid accounts anywhere, anytime, without the hassle of buying and scratching cards. For the vast demographic size of Bangladesh and for the complex physical distribution system, sometimes our sales points have trouble 74
keeping adequate stocks of AKTEL Scratch Card, and as a result, the valued customer can't find the Scratch card as per their requirements. On the other hand, due to frequent natural disaster and hartal/ strike, distribution of physical scratch card becomes hard. The company believes that the new system can really give customers the opportunity and convenience to buy airtime in the period of inconvenience. Apart from it, the Electronic Refill solution will allow our authorized sales outlets to electronically generate a voucher for the denomination customer requires. The customers can recharge their account by a dialing 111 or through simple refill process. 7. Fun Dose AKTEL Fun Dose is an enhanced IVR (Interactive Voice Response) voice greetings platform through which the users can send a voice greeting to your desired number. By dialing 8FUN (i.e. 8386 on your mobile keypad), the subscribers have to follow the voice prompts and choose from several categories available in Bangla and English. Each category will have different greetings. The AKTEL Fun Dose lets the customers’ emotions run wild and show happiness, sadness, express love, hatred or just tease around. 8. AKTEL GPRS (Spice) AKTEL GPRS is only available for those who have post-paid connections. These customers can send and receive multimedia messages such as color pictures. The subscribers also have the facility to download colorful logos, animations, wallpapers, screensavers, real music (MP3), polyphonic tones, video clips, and can browse WAP enabled websites with their handset. 9. AKTEL Opener Introducing " AKTEL Opener " a groundbreaking service under which by dialing only a single number *140# - you can browse & subscribe the Value Added Services like AKTEL GoonGoon, AKTEL P.A., Cricket Update (8CRI) and Post-Paid bill information (8PST). That means you no longer have to take the trouble of memorizing the different registration number & short code applicable for each of our Value Added Services.
So, forget those days and explore the world of AKTEL Value Added Services with AKTEL Opener! Step 1: Dial *140# Step 2: A menu will appear on the screen displaying the Value Added Services & their respective service number. Choose the service number of your desired Value Added Service. Step 3: Press Answer and type the service number of your desired Value Added Service & send it. Step 4: You will receive a sub-menu. Then type your required information number & send it. Reply: In a reply message you will receive all your required informations Enjoy FREE menu browsing! - Standard tariff applicable for subscription based Value Added Services - Standard SMS charge applicable - Conditions apply 10. AKTEL GopShop Chat with a group of people and post your messages in large number of chat rooms with the help of SMS Chat "GopShop" service. Share your thoughts, opinions, feelings with others and explore the world outside. 11. Night Bird Talk Plan (NBTP) Night Bird Talk Plan is a feature that allows subscribers to talk during the nighttime from 12AM (00:00Hrs) to 08:00AM the next morning at a discounted tariff or airtime rate. This facility was before only offered to all the AKTEL Post-Paid customers but now is also offered to all the AKTEL Pre-Paid customers. 12. Share-a-Fill Share-a-fill is a new balance transfer system between AKTEL Pre-Paid numbers anytime, anywhere. The service allows the registered subscribers to transfer balance from their account 76
to another Pre-Paid account through SMS. Under this service, Tk 20 to Tk 300 can be transferred through one SMS and there will be no extra validity on transferred amount. 13. AKTEL GoonGoon The newly launched AKTEL Goon-Goon is a Ring-Back tone service that allows the users to set a song, tone, music, funny messages or sounds as a Ring-Back Tone for their callers at a monthly subscription tariff of Tk 17.25. The unique features of this service are that one can set an AKTEL Goon-Goon to any single number, to a group, for a specific time of the day such morning, afternoon or evening. Not only this, the subscribers can also set an AKTEL Goon-Goon for a special day such as a birthday, anniversary, Bangla New Year, Valentines Day, Christmas Day, New Years day, Friendship Day, etc.
14. SMS Banking No more traveling long distances or standing in long queues to get basic banking information. If you are a client of any of our SMS baking partners, you can check your account balance, transactions details, credit card details etc. through SMS. Bank Asia SEND SMS TO 2929 TYPE OF SERVICE
SMS FORMAT <#> full a/c no. or the last 4 digit of the a/c no.>
Account balance inquiry Pre-Paid refill or Post-Paid bill to own number Pre-Paid refill or Post-Paid bill other mobile
Example: Acc1234#2365 <#>amount Example: Pay1234#300 <#> Example: Pay1234#300#018XXXXXXX
BRAC Bank SEND SMS TO 3939 TYPE OF SERVICE To know account balance To know last few transaction
SMS FORMAT Type : a and send to 3939 Type : t and send to 3939
Standard Chartered Bank SEND SMS TO 2727 TYPE OF SERVICE SMS FORMAT To access Credit Card’s Type : previous day’s outstanding amount Example: CARD 2365 Type : To access Account’s previous day’s balance Example: ACC 2365
CARDPIN
No
ACCPIN
No
Charges: *Standard SMS charges apply 15. AKTEL Café8000
You can get this complete package from "AKTEL Café8000". It is basically a package of voice based service introduced for the 1st time in Bangladesh for all AKTEL customers. In Café8000, voice based services such as News, Information, Entertainment, Religion; International Roaming etc. will be available. JUST DIAL 8000 & ORDER YOUR DESIRED Charges: IVR browsing fee TK.2/min (excluding VAT) 78
SERVICE…
3.4. AKTEL Standard Services Under-standard service AKTEL has 3 products. They are as follows: LOCAL: This service allows receiving calls or message from any phone service from anywhere of the world within AKTEL coverage area. He can also make a call to BTTB number and all other mobile phones within specific zone. NWD: Under this service one may receive a call or message from any phone service from anywhere of the world within AKTEL coverage area. He can also make a call to BTTB number and all other mobile phones in Bangladesh. ISD: This service enjoys every facility of NWD. Besides this, one can make a call to the foreign countries with which AKTEL has International roaming agreements. GSM: The cutting edge technology-GSM stands for Global System Mobile communications. GSM is the world's most advanced and extensively used mobile phone system. More than 20 million subscribers in almost 130 countries worldwide and AKTEL in Bangladesh use the latest GSM technology because AKTEL is committed to give the customer the very best. AKTEL subscribers enjoy the following GSM features without bearing any additional costs:
CLIP (Calling Line Identification Presentation)/ Caller ID: Display of the phone number of an incoming call in subscribers' handset before the call is answered. Call Waiting and Holding: While talking to the first caller, subscribers will hear a special tone informing subscribers about the second call on the line. At that moment subscribers can put the first caller on hold and talk to the second caller. Call Forwarding: Call forwarding allows the subscribers to redirect or reroute the subscribersâ&#x20AC;&#x2122; call to another AKTEL mobile or any other fixed (if subscriber has BTTB Connectivity) or mobile phone. Call Barring: Enables subscribers to restrict certain types of calls to be made from subscribers mobile. This feature is especially important for security purposes.
Itemized Billing: If customers are not satisfied with his phone bill then he can collect the Itemized Bill, which describes the elaborately Incoming and Outgoing call with phone number and duration.
Chapter - 4 Corporate Sales Of AKTEL 4.0 Overview : ATTEL offers an extensive and seamless countrywide GSM Mobile Communication Solution of taking pride in being backed by the Telekom Malaysia International Bangladesh Limited. AKTEL’s GSM service is founded on a robust network employing cutting-edge technology such as Intelligent network (I.N.) providing the ultimate solutions in terms of voice clarity; a continuously edpanding nationwide network coverage; abundant international roaming global partnes; popular value added services (VAS); quality easy-access corporate customer care; iron-clad digital network security; competitive and tailored tariff plans and specific billing. The Corporate Strong-arm of AKTEL is committed to keep you ahead of the rest GSM or Global System for Mobile Communication is the most widely used cellular mobile communication technology with over one billion users and more than 650 operators across more than 200 countries globally. One of the greatest strengths of GSM technology is the international roaming service, where GSM subscribers from one country can use their GSM phones to communicate when traveling to other countries. Other salient features of GSM system include high speed data access such as SMS and fax, Value added services, internet services. Another key advantage of GSM technology over others is the easy upgradeability to next generation technologies such as 3G. The role of obtainment and proper dissemination in today’s business world need not to be underscored. In today’s cut throat competition, business houses need to be a carefully tailored communication infrastructure that will not only help to secure business but also ensure customer loyalty in the future. A Parallel constraints that these corporate houses encounter is to deliver and obtain effective, focused information at the least cost. In the current era of 80
booming information technology and mobile communication is playing a pivotal in offering just the right kind of solution. AKTEL is the largest and the most customer centric telecommunication services for any business need, we provide voice services, messaging services and mobile data and internet services. We also provide a complete corporate solution including mobile e-mail, mobile high speed date access, SMS Push-Pull, internet access, mobile fax and more, point to point connectivity,
Virtual
Network
Services
(VNS).
With
combined
experience
in
telecommunication globally we are positioned to ensure that you and your business will benefit from our expertise. We offer a suite of specialized products and services covering all communication needs for professionals, small, medium-sized enterprise to large companies. AKTEL will be incorporating new services and innovative ideas in addition to take your business to new heights helping your work smarter, faster and more efficiently than ever before. They belief we are starting a new horizon of business relationship and reaching the ultimate goal of customer satisfaction. Be a part of the exciting Cost-effective and innovative solutions that has been developed to satisfy the growing needs of corporate clients in Bangladesh. 4.1 The status “corporate clients” considered by AKTEL: AKTEL consider the entire existing market client as their potential customer. Even they don’t differ whatever the company is local or multinational, Public Ltd. or Private Ltd. or the business range of the company. They should have running business with legal entity and demand of at least a minimum connection provided by AKTEl (50 connections). 4.2 The prerequisites of becoming a corporate client: To be a potential AKTEL corporate client they have to have some eligibility, which is also justifiable by AKTEL. Such as:
Must have legal identity ( Trade lenience of incorporation)
Existence in current business activities
Should have logo and trade mark
Minimum demand should be 50
Should have financial Condition.
Documents Required: Corporate • •
Duly 2
to filled
in
attested
•
new
Registration
copies
Proof
of
recent
of
Individual Form
with
customer’s
passport-size
color
Identification
signature photographs
(Valid
ID)
• Proof of Address (Copy of recent Electricity, WASA, Telephone Bill etc.) •
Request
•
Original
•
letter
from
Ownership
Clearance
/ of
Corporate
client
Subscription
Paper
outstanding
bills
• Service charge of Tk. 150 (incl. VAT) Individual •
to
No
•
Objection
NOC
Certificate
Acceptance
Corporate (NOC)
Letter
from
from
the
Corporate
customer Customer
• No service charge applicable Corporate •
No
to Objection
Certificate
(NOC)
Corporate from
the
Corporate
Customer
• No service charge applicable •
The basic offer:
There is a certain offer prepared by AKTEL for all of their corporate clients. But it may be modify according to the connections asked by the customer or willing to accept. In the basic offer they have two exclusive tariff models for the clients. TARIFF PLAN (Option-1) TYPE OF CALL
Any Mobile GROUP TALK (GTP)
82
TARIFE/MIN (TAKA) Corporat Family hour e hour 06:00pm08:00am- 12:00am 06:00pm 1.00* 1.00* PLAN 1.00 1.00
private hour 12:00am-08:00pm 1.00* 1.00
FNF 0.30*
0.30*
0.30*
To other 1.00
1.00
1.00
To AKTEL ANY 5 Numbers
(Including 1 BTTB No) SMS Tk.1.00 ALL INCOMING Free (Including BTTB) GPRS/EDGE International Roaming
Free
Free
Tk.0.015/ Tk.750/month (Unlimited) KB ZERO Processing Fee & Security deposit BTTB enlisted 55 countries for Economy ISD Rates
Economy ISD (012)
Call to Land Line: Tk.7/Min(Standard BTTB Charges) Call to mobile: Tk.18/Min(Standard BTTB Charges)
PULSE
30-15-15-1 seconds
TARIFF PLAN (Option-2) TYPE OF CALL
TARIFE/MIN (TAKA) Monthly commitment Offers
Any Mobile
Time Band
BDT 450**
BDT 950**
BDT 1550**
24 Hours
1.00*
1.00*
1.00*
0.80
0.70
0.50
0.30*
0.30*
0.30*
1.00
1.00
100
150
10 MB
20 MB
100
150
GGROUP TALK 24 Hours PLAN(GTP) FNF ANY 5 Numbers To AKTEL
(Including 1 BTTB To other 1.00 No.) FREE MINS ON 50 FNF DOWNLOAD N/A SMS
50
SMS
TK.1.00
ALL INCOMING FREE CALL( INCLUDING BTTB) GPRS/EDGE 750 International Roaming
10% Discount
20%Discount
Tk.0.015/KB Tk.600/month (Unlimited) ZERO Processing free & Security Deposit BTTB enlisted 55 countries for Economy ISD Rates
Economy ISD (012) Call to Land Line: Tk.7/Min(Standard BTTB Charges) Call to mobile: Tk.18/Min(Standard BTTB Charges) PULSE
1 Second
Special benefits of AKTEL Corporate: •
The first ever Corporate Package to offer 1 second pulse.
•
The one of a kind – 5 FNF with any operator.
•
Zero security deposit with no monthly line rent
•
Convenient bill payment options
•
Customized tariff plans and packages to keep you ahead
•
AKTEL International Roaming Service with no security deposit
•
AKTEL Corporate Insurance Policy
•
Special Corporate Care Help lines to answer all your questions
•
Cutting edge value added services like GPRS, EDGE, Personal Assistant, Corporate Messaging Platform with short code , Data and Fax call services, Fixed rate group talk plan, Customized SMS based solution.
•
Other Value Added Services.
•
The dealing process:
The dealing process begins with the analysis of internal corporate sales team. At first they find out the potential customer and verify them according to their basis. Then they go to the account manager with the team to construct a suitable proposal for the client. Whenever the proposal made they will send the proposal to the company. If the company 84
instantly response to the proposal then a meeting will be fixed between the account manager and the client. Otherwise the proposal is valid for 15 days from the submission. The corporate client willing to negotiation with the offered tariff and asked for customization, which is depend on some specific condition. Like: total connection, initial offer etc. If everything goes according to the desire and purpose of both the group then the client will accept the offer. Subsequently the connection will be provided by the telecom company. The client will also get the post-connection services under the account manager whenever they require. •
The level of negotiation:
There are no structured criteria for negotiation regarding to corporate offer packages, but sometimes the negotiation take place in conditional basis. In general the negotiation occurs in GTP (Group Talk Plan) and in group SMS... •
Level of customization:
Generally the offer is standardized but in some special cases the package will be customized for the demand of the clients. In more cases the customer insists for customized SMS service for a particular period or purposes •
Flexibility provided towards the corporate clients:
The package has already consist sufficient benefit for the clients which provide a lot of flexibility towards the services. More over they offer some extra services which added more flexibility to the services. Such as : 1) AKTEL Accidental death insurance policy ( coverage of 1 lac) 2) International Roaming 3) Internet browsing (unlimited) 4) AKTEL Goon Goon 5) Thumb-pay 6) AKTEL “ PA” 7) Kothar Chithi: Voice Mail 8) Occasional gift Group Talk Plan (GTP):
We treat you like family; the outlay of using the corporate connections & payment of the ensuing bills will be personally managed by your dedicated Customer Relations Manager. Group Talk Plan (GTP) allows you further discounted rates within your company’s connections Customized Credit Facility Every single AKTEL Corporate ‘Family members' may set their individual credit limits and alter it as per their requirement. Dedicated Corporate Customer Care Corporate Customer Care has dedicated three helpline numbers specifically equipped to serve the corporate family members and they are available. This is an “industry-first”; For all the services mentioned here please cal your dedicated Corporate Customer Relations Manager; or the help lines (+8802) 01819210952-4; OR email: Corporate.help@ aktel.com OR fax: (+8802) 8832502 Enjoy Benefits of Prepaid in Postpaid Set your own credit limit by charging prepaid cards and enjoy the lower tariff of post paid connection Incorporation Existing individual post paid AKTEL connections can be incorporated into the Corporate Master Account free of cost! Itemized Bill Call details including information such as date, time, duration and charge of any voice calls made can be provided Value Added Services AKTEL Corporate offers an exhaustive range of Value Added Services . ( Link to respective Value Added pages) Goon Goon You can set your company theme song as your welcome tune through GoonGoon. AKTEL PA One missed call is one missed opportunity. Through AKTEL PA be notified every time you miss a call due do user busy, out of network or for unanswered call AKTEL Opener 86
Introducing " AKTEL Opener" a groundbreaking service under which by dialing only a single number *140# - you can browse & subscribe the Value Added Services like AKTEL GoonGoon, AKTEL P.A., Cricket Update (8CRI) and Post-Paid bill information (8PST). SMS Banking Rise above the hassle & bother: Bank Asia; Standard Chartered Bank & BRAC Bank all at your fingertips. A typical client of AKTEL -----Northern University: Northern University Bangladesh is proud to announce that Northern University, Bangladesh and TM International (AKTEL Telecommunication) signed an agreement for Corporate Client Relation. Over recent years, AKTEL has consistently been placed as one of the top Telecommunication Company in Bangladesh. AKTEL is a leading cellular mobile phone service provider in Bangladesh under the brand name AKTEL and as a gesture of good relation it intends to provide AKTEL mobile connections with special service to some of its much selected corporate customers in Bangladesh. NUB will get the following Facility from AKTEL: 1.
Free 3.
IDD connection with BTTB incoming & outgoing
4.
BTTB
.5.
No
6. 7.
Taka
10.
1.0
Within
8. 9.
Connection
5 1 GPRS
incoming line
flat
rate
Group F
all
NUB
tariff
n
second unlimited
rent
within SMS
free Numbers
is
TK:
F-numbers
pulse
for
all
browsing
only
for
calls Tk:
11. Payment via scratch cards or e-fill TARIFF STRUCTURE TYPE OF CALL
1
TARIFF/MIN (TK.) Corp. Family
Private
hr08:00am- hr06:00pm
hr12:00amâ&#x20AC;&#x201C;
06:00pm
08:00 am
-12:00am
750
AKTEL-
AKTEL 1.70
1.90
1.50
OUTGOING AKTEL -OTHER 1.90
1.90
1.50
FREE
FREE
OPERATOR OUTGOING INCOMING
FROM FREE
BTTB GROUP TALK FRIENDS On-net
1.00 .80
1.00 .80
1.00 .80
&
Off-net
1.50
1.50
1.25
FAMILY
(including 1
BTTB
no.)
Special Facility:: ***NUB Students also include with this Corporate offer. ***Students as well as their parents will get Semester Result by Push Pull SMS Service 8NUB (8682) •
Some Highlighted Corporate client of Aktel : •
Beximco
•
Rackit and Ben Kitzer
•
Unilever
•
HSBC
•
Reneta Pharmaceuticals
•
Libra fusion Pharmaceuticals
•
Northern University
AKTEL injects SAP into Corporate muscle AKTEL has selected SAP enterprise resource planning (ERP) solution to increase its operational efficiency. AKTEL’s finance, accounting, human resources, technical, sales, supply chain and other divisions are now manifolds efficient and productive with the ERP solutions of SAP. Supply chain manager Mizanur Rahman said AKTEL must withstand the customers’ growth and network resources are to be mobilized in advance to maintain the 88
quality of service. Ordering equipment, preparing inventory, sending them to sites, activating them followed by routine maintenance is a chain of daunting tasks. "If there is a missing link in this extremely complex process, we are out of business in the fiercely competitive market." Mizanur Rahman said the ERP solution of SAP ensures the stability of the supply chain. "Earlier it took nearly thirty minutes to generate a purchase order but now it takes a few seconds." He said the entire process is flawless and tamperproof as a robust computer controls it centrally. AKTEL has deployed two such servers in different locations to ensure that one takes over in case the other computer fails. The company’s assistant general manager of human resources, Shabbir Ali, is quite excited: "Now we can track every employee’s output and assess them accordingly." He said it perfects the evaluation process of the company’s human capital. AKTEL has paid $440,000 licence fee to SAP and procured ten ERP modules. They will be used by 400 executives of the country’s second largest mobile phone provider in terms of clientele. AKTEL’s costing and budget manager Sabbir Ahmed said his company is already getting tangible returns of this investment. Efficiency of his colleagues has already increased 99 percent. "ERP is a combination of workhorse and watchdog as it ensures that everybody delivers without making any mistake." But Ahmed said the top management of a company has to register the value of ERP and get equally committed. The AKTEL executives have recognized ERP an effective tool for transparency and good governance. The efficient private sector cannot deliver alone unless the public offices also become at par using modern technology, they said. Citing the Indian examples the AKTEL officials hope the finance ministry of Bangladesh will also adopt ERP solutions to streamline the revenue collection and strengthen fiscal management. So far good for AKTEL. Every company has a right to opt for the best software solution that would maximize profit and minimize costs for it, while providing superior service to its customers. However it also can be stated at this point that had corporate like AKTEL would have done some hand-holding for the local IT companies under the banner of CSR or whatever they call it, local software firms would have got the opportunity to demonstrate their IT expertise. Even if they are not at par with SAP or Oracle, even if they are not in a position quality-wise to serve companies as big as AKTEL, but some recognition and assistance from Corporate houses like them would surely increase the brand image of Bangladeshi software solution providers. In an era of open competition we already have the low end of the spectrum flooded with invasions from software like Tally and in the high end,
we have SAP India injecting ERPs into Corporate muscles. No complains about the competition, just a request to patronize the local software industry as well 5.0. Analysis and Findings: 5.1 Analysis The researcher divides the questionnaire into two parts in the findings and analysis segment; these are general information and customer satisfactory of the users. These two parts will give a clear idea about the customer preference towards AKTEL corporate services. After finishing the survey the researcher found the following findings: •
Quality of Service (Network) is a crucial factor in case of corporate client: In case of using mobile connection quality of service is a crucial factor. Corporate clients as like as other user of mobile phone want to ensure about the network facility of the service provider. At present AKTEL provide a smooth network facility towards its client. They improve the network facility and enlarge their coverage. According to the respondents AKTEL provide good network system with uninterrupted service. The clients are quite satisfied with the network but they still think AKTEL have provision to improve it more.
•
Corporate Clients are sensitive toward price(call rate). In any purchase decision price plays a vital role. This is also applicable in corporate mobile connection. AKTEL provide an attractive and competitive call rates towards the corporate clients. According to the respondents and corporate manager of AKTEL, they provide most convenient call rate towards the corporate client.
•
Corporate Clients prefer customization: Corporate client always prefer customized product and service. In case of mobile connection, they also demand customized service. The corporate clients want to be ensure the fulfillment of their requirement .AKTEL has the provision of customization. They provide customization in GTP and SMS service against the clients demand or request. This customization option gives a preferred position in the mind of corporate client.
•
They want prompt solution regarding their claim: There is no time to misuse in business world , so the corporate client always demand prompt service regarding their enquiry. According to the respondents AKTEL provide dedicated customer
90
service with prompt delivery. The corporate client can get prompt service through their account manager , corporate executives and by the customer care division. •
They want to ensure about the variation of the services: AKTEL provide variety of services. Their innovative and unique features and option give extra flexibilities towards the corporate client.
Aktel always want to come with new idea for
providing better service to the client. Their analysis and product development team always try to come up with new ideas and plan to give the best service to the clients •
Additional VAS privilege the demand of AKTEL in the corporate services : Additional services always boost up the major service and create extra advantage . AKTEL provide a set of effective and attractive VAS to facilitate the core service. According to respondents their provided additional VAS are attractive and d appreciated by clients. They spread-out their range of service by providing a set of unique VAS.
5.2 Strategic Analysis: After finishing the findings part it was found that the customer’s preference is quite interesting. The total package of corporate connection is very much attractive, people of corporate world wanted to ensure about the quality as well as with a lot of versatility in service. In case of corporate connection, the call charge at pick hour and in the GTP plan are the vital area , according to AKTEL, they provide attractive and convenient rate in these issues. There are many reasons for using mobile phone, the service holders and business people use cell phone for official use or business purpose. For this reason the business hour is the most curtail time for them. So in the business hour, client wants outstanding service. AKTEL provide a set of service with proper quality. Customers prefer or choose one product or service when a company provides good facilities to it. Here AKTEL does the same; they offer good facilities to their customer and try to satisfy them. The subscribers agree that AKTEL provides new technology often. Providing new technology and related services means SMS, GPRS, Voicemail, and Infotainment Service etc.
Having some variation and unique service in their package, AKTEL creates a certain position in clients mind. 5.2.1 Reasons for Introducing such Kind of Connection: When AKTEL introduced itself as a mobile phone company, they did not have corporate package connection in their product list. Before launching this connection, their market was not expanded. After launching this, the market of AKTEL had boomed within couple of years and became popular to the corporate client. AKTEL thought on the people who are involve in corporate world, and they frequently use mobile their business purpose. As a result the client chooses corporate package for their requirement. The researcher was interested to find out the reasons that influenced AKTEL to come up with this corporate connection. It was found that mainly two reasons were behind introduction of such category of connection. * To exploring a new era: By introducing corporate connection to the corporate market, AKTEL explore a high potential customer group, who are willing to get a proper package with the entire requirement to meet their purpose. * To Expand the Business: After introducing corporate connection in the market, AKTEL expanded their market all over the country promptly. . It is very clear that the corporate connection helped them to expand their market. * To Capture the Market: Among the cell phone companies in Bangladesh, AKTEL deserves much popularity in the corporate connection in this country and hence captured the mobile phone market effectively. As a new company AKTEL invested hugely and expands their network coverage all over the country and got the result promptly. They took huge risk in their business operation. Thus AKTEL takes the challenge to be the next Market Leader of the cell phone industry by the help of corporate connection towards the corporate client. 5.2.2 Why the People Prefer an AKTEL Corporate Connection:
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There are lots of reasons behind the customer for preferring AKTEL Corporate connection. These are as follows: As a leading telecom service company AKTEL has some distinctive services or offer to their corporate clients. They offer a particular business rate to the business people with certain packages. Business people always interested to get some extra beneficiary services from the company, so according to their expectation AKTEL offer less charge in case of GTP (group Talk Plan). As well as AKTEL provide all other facility which an advanced telecom company should offer to their all clients or corporate clients. AKTEL always focus on customer and their need. Their corporate package is complete one , which provide a standardize as well as customized service towards the clients . 5.2.3 Preference Pyramid of AKTEL Corporate Connection: Peak Hours
Rate
Flexibility and facilities Variability of Service General rate and fundamental offer Network coverage
Customer Preference is high in these higher levels. Figure: Preference Pyramid of AKTELâ&#x20AC;&#x2122;s Corporate Connection This pyramid represents the customerâ&#x20AC;&#x2122;s preference towards AKTEL corporate connection. The bottom two levels represents areas where the preference level is low and the first three levels shows the main reasons the subscribers are using this connection. When a corporate house willing to purchase a package of corporate connection from any provider , then they compare that particular connection with the other connections in the market. Here the researcher is trying to find out the preference level of the customer. The bottom preference level represents less customer preference to AKTEL
corporate
connection. General rate and fundamental offer: Subscribers think AKTELâ&#x20AC;&#x2122;s call rate per minute is competitive and customers are mostly satisfied. Variability of Service:
Subscribers are satisfied with the varity of service AKTEL provide towards the corporate client. This issue considered moderate level of Flexibilities and Facilities : The flexibilities and facilities provided by AKTEL towards the corporate client are preferred by the clients . This issue contains the fourth level of preference. There are some unique services which are only provided by AKTEL. Like – AKTEL accidental Death insurance policy. The peak hour system: In the peak our corporate clients are happy to perceive lower rate . And at present they are getting a flat rate (TK.1) in case of any operator. The GTP( Group Talk Plan) is a vital and preferred factor for the customer and by providing a customized and convenient GTP AKTEL satisfy the clients Network coverage: AKTEL has wide network coverage in the country than any other cell phone company’s network and the fifth level contains this preference level. Most of the respondents are happy with the network coverage of AKTEL. Mainly for this reason the customer can pay more call charge per minute. Wherever they go they find AKTEL’s network. The customer’s preference level is high here and their preferences to AKTEL mainly exist between these first three levels. For a mobile phone connection the network plays a vital role and which attracts the customer. AKTEL going to reshuffle its network solution to catch the customer first across the country . After analyzing my findings I found the customer preference level exists between the first three levels, which are network coverage and off peak hour system in the pre-paid options provided by AKTEL 5.3 AKTEL Beliefs: AKTEL strongly believes that subscribers are the most valuable assets. The company has a strong Customer Service. To always be with customer, AKTEL "Help Line' is there. 94
AKTEL has successfully migrated to a new switch with higher capacities in terms of accommodating higher customer base and as well as to let them use all the basic and supplementary services under GSM technology. It introduced the both-way national roaming all through its network coverage. The Pre-paid services with enhanced features have been commercially commenced successfully and now the company taking some projects to accumulated more advanced technological features in network. In terms of network quality, the company will ensure the equipment of world-class standard but more importantly its size or capacity is catered to the right dimensioning of customer base, in order to overcome the drop calls problem or call congestion. All these are done through proper planning, control and schedule maintenance program. The company maintains the benchmark for providing the quality services. It monitors these through generating regular report and on site survey. If any weak signal or drop call comes to notice, skilled engineers are providing services round the clock and resolve the problem instantly. The most important key resource factor at TMIB is its efficient human resource. Moreover, its decisions are based on facts from market research and coverage survey. Furthermore, the entire thing can only be achieved through the right people. AKTEL has put its sharp eye in developing its employees through proper training, as it believes that the most important asset for TMIB is its staff members. The company is trying its best to ensure the quality services by quality people. It has the plan to give opportunity to every household to use cellular service in the country at the competitive price providing unparalleled quality service and customer care. In achieving this goal, the company can't wait for more interconnection facilities with the fixed network. The company is planning to enforce strong efforts to create its own independent network. It has already started Dhaka-Chittagong AKTEL backbone. The company’s future plan is to vigorously expand network, which can be called cell-to-cell expansion, covering almost all the regions of Bangladesh within the year 2008. Service Features of AKTEL: •
Total commitment to the needs of our customers.
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Provide quality of service and prompt solution to the clients enquiry. Following the highest ethics standards. Continual improvement of all work processes. Permanent improvement of all the employees’ knowledge and skills. Securing quality of the service to match the quality of services offered by the world’s most
•
successful companies in the field. Preserving the Company’s leading position in the national market of mobile
telecommunications. Chapter - 6 Recommendation: The recommendations given below are not decisions; rather they are only suggestions to improve the customer service in order to fulfill the customer satisfaction so that subscribers give more preference to AKTEL corporate connection .The recommendations are made on the basis of findings and analysis and these are: 1. They have to remember that their main advantage to catch the customer first all over the country. In recent past the customers have faced some network problem with AKTEL’s network, AKTEL should be more careful about it. AKTEL’s network is not as good as like Grameen Phone (GP). So they should improve the network coverage and at the same time network solution. 2. Although AKTEL provides new technology and services, they should make it more clearly to the customer. Because it has been noticed that many clients are ignorant about how to use some value added services and may not well informed about the recent packages. 3. AKTEL can emphasize in newsletter or advertisement on how the customer can use these services to perceive maximum benefits 4. The corporate client always want customized service which will match up with their desired requirements .so AKTEL should be more careful in case of giving customization. 5. The call rate is competitive but AKTEL should try to make it more attractive .Their GTP(Group talk plan) is important factor in their package , AKTEL should make it ore affective by providing the maximum benefit to the clients . 6. AKTEL has variation in their service but it is not properly communicated towards the clients, so they should take care of this issue. The special VAS for the corporate client are attractive and unique but they should introduce more new service to have more attractiveness.. 7. They provide high quality of customer service but they should be focus on the need of the customer and the issue of prompt delivery. 96
8. The analysis team , the corporate account managers and the corporate executives should have more efficiency and attachment with the3 clients to grab proper level of customer satisfaction. 9. Though they have a large pool of corporate client, they should take necessary steps to enlarge their customer basement. 10. As AKTEL provide more flexible and attractive corporate connections with prompt customer service , the corporate house and other business firm , who are not yet a part of AKTEL family can utilize the benefits of the packages by being a proud client of AKTEL Conclusion: The present study has attempted to describe the customer response on AKTEL Corporate connection in perspective of their corporate packages .More specifically in this study customer’s view regarding the suitable Corporate connections offered by AKTEL has been discussed. The company successfully active in the corporate sector with verity of services. The intention of this study was to find out the customer satisfaction by using these corporate package offered by AKTEL. Selecting the right package is very much important for communication. People need to communicate effectively. So, it is very important to select different packages and from the findings it was found that the customers consider corporate connection of AKTEL as the most suitable option . In some cases, customers make objections seriously for the AKTEL’S comparatively low powered network coverage and its frequency. But now a days AKTEL recover their network problem and strengthen their quality of service .At present, AKTEL has more than 900 corporate clients and day by day it increases with good number .So AKTEL should take more care for its Corporate clients for the company’s better satisfaction. We know that mobile call rate of Bangladesh is higher than from rest of the world. So AKTEL as a mobile company of this country it should take step to minimize the call rate. However, I hope this study may help to identify the reaction of the current position on AKTEL corporate connection and their satisfaction at the extreme level. I hope the findings and analysis, recommendations that are suggested in the report will help AKTEL to fulfill the demand of the customer precisely.
Bibliographical References Books: 1. Malhotra , “Marketing Research an Applied Orientation” Prentice-Hall international 3rd edition, 2001, New Jersey 2. Philip Kotler, “Marketing Management” Prentice-Hall international, The Millennium Edition, 2001, New Delhi Articles: *Different daily newspapers. * “Newsletter” of AKTEL - publications for customer. * “InterAKT”, AKTEL’s- internal publications for employees. * Latest tariff reports of AKTEL. * Handbills of different packages and offers and services. * Corporate client’s affair (publication for corporate sales).
Websites •
www.aktel.com
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www.portal/aktel.com
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