Final paper

Overview Telecommunication of Bangladesh 1. INTRODUCTION Telecommunication industry in Bangladesh is considered to be the most competitive industry of Bangladesh. The industry has reached to almost of its mature stage. And the companies in the field are facing a tough fight while expanding. Therefore a survey was carried to gather information based on the customers liking and disliking by the use of SPSS software.

1.1) Origin of the Report This report entitled ‘Survey Report on ‘Telecommunication Industry in Bangladesh’ is a requirement for the completion of the course Marketing Research. The main purpose of this report is to exchange and relate theoretical knowledge with real life situation. Under the instruction and guidance of the course instructor Mr Shamsad Ahmed, we have taken the initiative to prepare this report with much precision and by being completely unbiased.

1.2) Objective The general objective of this report is to provide an overview of the different aspects relating to Telecommunication Industry by surveying the customers. Beside the general objective, the report can be categorized into main objective and specific objective. The objectives behind this report are given below: 1.2.1) Main Objective: The main objective of this report is to provide detailed information on Telecommunication Industry in Bangladesh from customers’ view point by analyzing the survey data with the help of SPSS software.

1.2.2) Specific Objectives: The specific objectives underlying this report are listed below: • To have a clear understanding about the SPSS software.

• To realize the importance of different factors associated with cellular connection.

• To realize the importance of different features of Cellular connection • To analyze the respondents demographic profile • To define the position of Telecommunication based companies.

• To identify the customers preference over connection • Fulfill the requirements of our course “Marketing Research”.

• 1.3)

Gather experience and knowledge of doing a professional report Methodology

The methods that we followed to prepare the report are as follows: •

We at first formed a group of 07 members.

•

We distributed the task among the members.

•

We surveyed the respondents that use cellular phone.

•

Analyzed the results to fulfill the objective.

1.4) Source of Information

To meet the objective of this report collection of relevant, accurate, standardized and needful information was required. In bringing this report to existence we have collected data from both primary and secondary sources. Special consideration was given so that chances of biasness could not arise. The sources used were: 1.4.1) Primary Sources Primary data is defined as data which originates as a result of that particular investigation. The primary data related to Telecommunication Industry in Bangladesh was strictly collected from the existing cell users by the method of survey that we conducted. Structured close ended questions were constructed as the main link in getting the primary data.

1.4.2) Secondary Sources Secondary research refers to the use and further analysis of data collected for another purpose. As secondary sources, we have referred different books of Marketing Research. We also took the help of internet when needed.

1.5) Scope of the Report The report consists of the proper real life survey study of existing mobile users of Bangladesh. This report can be used as a secondary source for the telecommunication based companies, but the information and data presented cannot be rationally or ethically be used under a different company’s name.

1.6) Limitations • The respondents do not reveal real information for some particular questions.

• First time ever we are using the SPSS software.

• The respondents hid their personal information.

• The pressure of other assignments and reports.

2.

2.1 Gender Analysis Frequenc Valid Cumulative y Percent Percent Percent Valid Male 519 68.3 68.3 68.3 Female 241 31.7 31.7 100.0 Total 760 100.0 100.0

Gender Distribution Male Female

Out of the total respondents who were surveyed, 68 per cent of them turned out to be male whereas the rest 32 per cent were female. This vast difference is due to the number of respondents that were kept under each occupation.

2.2 Occupation Analysis

Occupation of the Respondents Student Homemaker Businessman Gov.Jobholder Priv.Jobholder Jobless Retired

The total respondents comprised of 76 students, 76 homemakers, 152 business men, 152 government jobholder, 152 private jobholder, 76 jobless and 76 retired persons. This different number of respondents under each occupation explains the difference in the number of male and female respondents.

2.3 Cluster Analysis The SPSS software is a very handy tool to define various clusters of respondents based on the demographic data. These clusters are treated as market segments and are very essential for the marketers to develop the marketing mix and advertising programs.

Initial Cluster Centers

G Age Occ FM FI

Cluster 1 1.00 3.00 5.00 5.00 300000.0 0

2 2.00 4.00 2.00 4.00 500000.0 0

3 1.00 2.00 5.00 1.00 5000.00

In this analysis, the software was asked to formulate three clusters. The above table shows the canters of three different clusters produced by SPSS based on the provided demographic profiles of the respondents. The demographic information consisted of Gender, Age, Occupation, Family Income and Family members.

Each cluster is formed based on the respective centre.

Iteration History(a) Iteratio n 1 2 3 4

Change in Cluster Centers 1 2 48421.053 2.160 39405.034 40000.000 6264.822 18333.333 .000 .000

3 36213.026 892.916 .000 .000

a. Convergence achieved due to no or small change in cluster centers. The maximum absolute coordinate change for any center is .000. The current iteration is 4. The minimum distance between initial centers is 200000.000.

Final Cluster Centers

G Age Occ FM FI

Cluster 1 1.32 2.55 3.23 4.91 205909.09

2 1.33 2.17 3.83 5.33 441666.67

3 1.32 2.35 3.80 4.74 40320.11

Due to variance in the cluster centers, some changes occurred in the cluster centers and the final picture of the cluster centre are shown above.

Number of Cases in each Cluster Cluster Valid Missing

1 2 3

22.000 6.000 731.000 759.000 1.000

Total number of respondents who belonged to cluster 1 are 22 persons.

6 respondents belonged to the cluster 2 The largest number of respondents that is 731 belonged to cluster 3 One of the values was unavailable due to the missing of any value of any respondents.

2.4 Connection Preference

Valid

Prepaid

Frequenc y 753

Percent 99.1

Valid Percent 99.1

Cumulative Percent 99.1

Postpaid

7

.9

.9

100.0

Total

760

100.0

100.0

Connection Type Prepaid Postpaid

As we can see from the pie-chart almost 100 per cent of the respondents turned out to be those who prefer prepaid connection over postpaid one. So it can be concluded that almost everyone prefers prepaid connection due to low maintenance costs. And this also shows the socioeconomic condition of the people.

2.5 Brand Preference N

Minimum

Maximum

Mean

Std. Deviation

Grameen

494

1.00

5.00

1.0405

.32847

Banglink

181

2.00

2.00

2.0000

.00000

Aktel

151

3.00

3.00

3.0000

.00000

Citycell

63

2.00

4.00

3.9683

.25198

Teletalk

89

4.00

5.00

4.9888

.10600

Warid

17

6.00

6.00

6.0000

.00000

Valid N (listwise)

0

warid

Teletalk

Citycell

Aktel

Banglaink

Grameen

500 450 400 350 300 250 200 150 100 50 0

When asked to rank the brands, Grameen Phone was clearly ranked no.1, with Banglalink, Aktel, Citycell, Teletalk and Warid following it.

2.6 Ranking of the Brands Statistics

N Mean Mode

Valid Missing

TCP1 760 0 4.1237 5.00

TCP2 760 0 3.1763 3.00

TCP3 460 300 5.0500 6.00

TCP4 760 0 2.6250 2.00

TCP5 760 0 3.9197 4.00

TCP6 760 0 1.7513 1.00

250

200 300

250

150

y c n u q e r F

y c n u q re F

200

100

150

100

50

50

0 0 1.00

2.00

3.00

4.00

5.00

1.00

6.00

2.00

3.00

4.00

5.00

6.00

Aktel

Teletalk

250

300

250

200

200

y c n u q re F

y c n u q re F

150

100

150

100

50 50

0

0 1.00

2.00

3.00

4.00

5.00

6.00

1.00

2.00

Warid

3.00

4.00

5.00

6.00

Banglalink

600

250

500

200

400

150

300

y c n u q re F

y c n u q re F

300

100

200

50

100

0

0 1.00

2.00

3.00

4.00

5.00

6.00

1.00

Citycell

2.00

3.00

4.00

Grameen

Teletalk

Rank

1 2 3 4

Frequen cy 55 72 90 154

Percent 7.2 9.5 11.8 20.3

Valid Percent 7.2 9.5 11.8 20.3

Cumulative Percent 7.2 16.7 28.6 48.8

5.00

6.00

5 6 Total

285 104 760

37.5 13.7 100.0

37.5 13.7 100.0

86.3 100.0

300

250

200

y c n u q re F

150

100

50 Mean = 4.1237 Std. Dev. = 1.43473 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Teletalk

Teletalk, a government owned mobile connection company, is the 5 th entrant in the telecommunication industry, and coincidentally turned out to be the 5 th in customers’ point of view.

Out of the 760 respondents, who participated in the survey, most of them ranked Teletalk as number 5th.

Aktel

Vali d

1.00 2.00 3.00 4.00 5.00 6.00 Tota l

Frequen cy 53 183 231 185 86 22

Percent 7.0 24.1 30.4 24.3 11.3 2.9

Valid Percent 7.0 24.1 30.4 24.3 11.3 2.9

760

100.0

100.0

Cumulativ e Percent 7.0 31.1 61.4 85.8 97.1 100.0

250

200

y c n u q re F

150

100

50

Mean = 3.1763 Std. Dev. = 1.20297 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Aktel

Aktel, the 2nd entrant in the industry, unfortunately, is standing in the 3 rd position in customers’ perception. It can be seen as an alarming signal for Aktel, as because, it has lost its preference to Banglalink (as we’ll see later) which has been operating in the industry for 3 years, comparing to Aktel, who has been in the industry for the last 11 years.

Warid

Valid

Missin g Total

1.00 2.00 3.00 4.00 5.00 6.00 Total System

Frequenc y 8 17 30 66 107 232 460

Percent 1.1 2.2 3.9 8.7 14.1 30.5 60.5

300

39.5

760

100.0

Valid Percent 1.7 3.7 6.5 14.3 23.3 50.4 100.0

Cumulative Percent 1.7 5.4 12.0 26.3 49.6 100.0

250

200

y c n u q e r F

150

100

50

Mean = 5.05 Std. Dev. = 1.23303 N = 460

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Warid

Comparing Warid, the 6th and the latest in the industry, with the other existing companies in the industry right now would be a foolish thing to do. Because Warid has not yet created that much awareness among the public and unfortunately has entered an industry, where the market is already in the point of saturation and where the public has developed brand loyalty towards their preferred connection. It will be really difficult to snatch customers from competitors, and this explains why Warid is in number 6 from customers’ perceptions.

Banglalink

Valid

1.00 2.00 3.00 4.00 5.00 6.00 Total

Frequenc y 89 294 244 85 42 6 760 TCP4

Percent 11.7 38.7 32.1 11.2 5.5 .8 100.0

Valid Percent 11.7 38.7 32.1 11.2 5.5 .8 100.0

Cumulative Percent 11.7 50.4 82.5 93.7 99.2 100.0

300

250

200

y c n u q e r F

150

100

50 Mean = 2.625 Std. Dev. = 1.05833 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Banglalink

Banglalink is definitely known as the company which has revolutionized the low call rate market.

Even a few years before, it was impossible to imagine call rate decreasing to as low as 25 paisa per minute. Within such a small time of operation, Banglalink has captured a huge number of audience and has succeeded in creating loyalty towards it among its customers. Thus, Banglalink’s position at number 2 is an overwhelming response.

Citycell

Valid

1.00 2.00 3.00 4.00 5.00 6.00 Total

Frequenc y 35 76 133 255 193 68 760 TCP5

Percent 4.6 10.0 17.5 33.6 25.4 8.9 100.0

Valid Percent 4.6 10.0 17.5 33.6 25.4 8.9 100.0

Cumulative Percent 4.6 14.6 32.1 65.7 91.1 100.0

Valid

1.00 2.00 3.00 4.00 5.00 6.00 Total

Frequenc y 508 120 41 21 44 26 760

Percent 66.8 15.8 5.4 2.8 5.8 3.4 100.0

Valid Percent 66.8 15.8 5.4 2.8 5.8 3.4 100.0

Cumulative Percent 66.8 82.6 88.0 90.8 96.6 100.0

300

250

200

y c n u q e r F

150

100

50 Mean = 3.9197 Std. Dev. = 1.26371 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Citycell

Citycell, the first in the industry and the only CDMA mobile connection company, was exploiting the advantages of monopoly market when it entered the industry. It has skimmed huge profit in the beginning, but after the entrances of other companies, has seen fall. But still, Citycell is preferred by many customers due to low call rate and the availability of a set at extremely low price. Thus, Citycell captures the 4th position according to the respondents.

Grameen Phone

600

500

400

y c n u q e r F

300

200

100 Mean = 1.7513 Std. Dev. = 1.35716 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Grameen Phone

Grameen Phone, popularly known as the best network provider and which is always on top of mind, has secured the 1st position in the minds of the customers. Being the 2 nd entrant, it has worked hard since the very beginning of its operation and has undoubtedly, been awarded for such effort. Though the call rate is still higher than many other operators, its still preferred to all due to its available network and many dealer outlets.

2.7 Factor Analysis Correlation Matrix

Correlat ion

EF1 EF2 EF3 EF4 EF5 EF6 EF7 EF8 EF9

EF1 1.000 .166 .127 .156 .096 .029 .083 .007 .030

EF2 .166 1.000 -.013 -.006 .218 .071 .173 -.043 .025

EF3 .127 -.013 1.000 .188 .166 .050 .092 -.009 .171

EF4 .156 -.006 .188 1.000 -.060 -.016 .150 .027 .233

EF5 .096 .218 .166 -.060 1.000 .082 .007 .068 .017

EF6 .029 .071 .050 -.016 .082 1.000 .016 .299 .016

EF7 .083 .173 .092 .150 .007 .016 1.000 .006 .165

EF8 .007 -.043 -.009 .027 .068 .299 .006 1.000 .037

The positive value represents that the two variables have a correlation. The maximum value that can be extracted is 1 which states the strongest relation among the variables.

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling .545 Adequacy.

Bartlett's Test Sphericity

of Approx. Chi-Square df Sig.

349.591 36 .000

The suitability of data for factor analysis depends on two measures: KMO index and Bartlett’s test.

To be a suitable data, a data need to have a KMO index with minimum value of 0.6 and the Bartlett’s test for sphericity should be less than less than .05.

The data out here have KMO index value of .545 which is less than 0.6 but close enough to 0.6, and the Bartlett’s test for sphericity value is .000 which is less than.05.

Therefore, we can go for the Factor extraction.

Communalities Initial Extraction EF1 1.000 .308 EF2 1.000 .712 EF3 1.000 .675 EF4 1.000 .538 EF5 1.000 .653 EF6 1.000 .635 EF7 1.000 .610 EF8 1.000 .672 EF9 1.000 .443 Extraction Method: Principal Component Analysis.

Total Variance Explained Initial Eigenvalues % of Component Total Variance Cumulative % 1 1.659 18.429 18.429 2 1.336 14.845 33.274 3 1.229 13.654 46.928 4 1.021 11.343 58.271 5 .941 10.459 68.730 6 .787 8.741 77.471 7 .728 8.092 85.563 8 .699 7.772 93.336 9 .600 6.664 100.000 Extraction Method: Principal Component Analysis.

Extraction Sums of Squared Loadings % of Total Variance Cumulative % 1.659 18.429 18.429 1.336 14.845 33.274 1.229 13.654 46.928 1.021 11.343 58.271

By the Kaiser’s criterion, the factors with eigenvalue equal to or greater to 1 are retained for further investigation. The eigenvalue of a factor represents the amount of the variance explained by that factor.

Out here, there are four components with eigenvalue greater to 1.

Therefore, these values will be taken for further analysis.

Scree Plot

1.75

1.50

lu a v n e ig E

1.25

1.00

0.75

0.50 1

2

3

4

5

6

7

8

9

Component Number As we know that Kaiser’s criterion results in the retention of too many factors, therefore we need to go through Scree test. By the Scree test the factors above the elbow, or break in the plot, as the factors are considered to be the factors that contribute the mos to the explanation of the variance in the set.

In this case, there are two factors that are above the elbow.

Component Matrix(a)

EF4 EF9 EF1 EF6 EF8 EF5 EF2

Component 1 2 .527 -.411 .511 .475 .657 .576 .350 .446 .384

3 .302 .300 .364 .546 -.395 -.608

4

-.419 .351

EF3 .541 -.597 EF7 .496 .572 Extraction Method: Principal Component Analysis. a. 4 components extracted.

From the above component matrix, we can realize that 1 and 3 has the most components, therefore 1 and 3 are the most important factors that can be closely associated with the maximum number of factors.

Factor Analysis Component Matrix(a) a. 2 components extracted.

Rotated Component Matrix(a) Component 1 2 EF4 .652 EF9 .589 EF3 .543 EF7 .521 EF1 .420 EF6 .695 EF8 .593 EF5 .553 EF2 .406 Extraction Method: Principal Component Analysis.

Normalization. a. Rotation converged in 3 iterations.

Component 1 1. People are conscious about the brand 6. image of telecommunication 7. companies 2. Consumer prefer a mobile connection 8. having strong international roaming facilities 9.

3. Everyone demands friendly customer care service.

4. whether I can buy the connection from nearest place is very much important to me 5. Advertisement can play a vital role to attract subscribers.

Rotation Method: Varimax with Kaiser Component 2 Connection fee is not a big factor Friend and family number facility is very important Network should always be available in Bangladesh.

Lower call rate determine. which connection to use.

Convenience in the service and attractiveness of the brand are the key elements that strongly connects the factors in Component 1 Service cost is the element that connects the factors of Component 2 Therefore we can conclude that the marketer should take care of and differentiate there product by: 1. Service Cost 2. Convenience in the service 3. Attractiveness of the brand Total Variance Explained Component

Rotation Sums of Squared Loadings Total % of Variance Cumulative % 1 1.599 17.764 17.764 2 1.396 15.509 33.274 Extraction Method: Principal Component Analysis.

The component 1 explained a total of 17.764% of variance of all factors The component 2 explained a total of 15.509% of variance of all factors The total variance that was explained by Component 1 and 2 in all together was 33.274 Component Transformation Matrix Component 1 2 1 .903 .431 2 -.431 .903 Extraction Method: Principal Component Analysis.

Normalization.

2.8 Importance of the factors

Rotation Method: Varimax with Kaiser

2.8.1 Advertisement can play a vital role to attract subscribers 400

300

y c n u q e r F

200

100

Mean = 4.1158 Std. Dev. = 1.05689 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

EF1

Number 5 represents the scale of ‘strongly agree’ and from the diagram above we can tell that most of the respondents felt that advertisements can play a big role in connection purchase.

2.8.2

Lower call rate to determine which connection to use 500

400

y c n u q e r F

300

200

100 Mean = 4.2921 Std. Dev. = 0.93473 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

EF2

People are also attracted to a connection when the call rate is low. Even low call rate makes the foundation of purchasing that particular connection. Most of the respondents in the survey felt lower call rate determines which connection to use.

2.8.3 Everyone demands friendly customer care service

300

y c n u q e r F

200

100

Mean = 4.1105 Std. Dev. = 0.91447 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

EF3

With most of the needs met, users prefer something beyond to have a better life. Customer care service is one such thing that users demand. Most of the respondents have agreed to such criteria and have felt it is an intrinsic part of any connection. (4 = agree, 5 = strongly agree) 2.8.4 People are conscious about brand image of telecommunication companies 300

250

200

y c n u q e r F

150

100

50 Mean = 3.475 Std. Dev. = 1.03275 N = 760

0 0.00

1.00

2.00

3.00

EF4

4.00

5.00

6.00

Most of the people agreed to the statement that people are conscious about brand image of the telecommunication companies.

2.8.5 Network should be available anywhere in Bangladesh 600

500

400

y c n u q e r F

300

200

100 Mean = 4.6697 Std. Dev. = 0.74397 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

EF5

Respondents strongly felt the need of network availability everywhere in Bangladesh. That explains why Grameen Phone is in number 1.

2.8.6 Connection fee is not a big factor 300

250

200

r F y c n u q e

150

100

50 Mean = 3.1987 Std. Dev. = 1.20877 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

EF6

This more or less, has contradictory responses, with most of the respondents feeling connection fee is not a big factor, and many of them disagreeing with such statement. (4=agree, 2=disagree) 2.8.7

Preference of Distance while purchasing the connection 300

250

200

y c n u q e r F

150

100

50 Mean = 3.386 Std. Dev. = 1.03876 N = 759

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

EF7

People feel distance is a big factor while they purchase a connection. They agree with the statement that it is very important for them to get a connection from the nearest place.

2.8.8 Consumer prefer a mobile connection having strong international roaming facilities 300

250

200

y c n u q e r F

150

100

50 Mean = 3.5711 Std. Dev. = 1.07931 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

EF9

Most of the respondents agreed with the statement that people prefer mobile connection with strong international roaming services. Many of the respondents, however, had no comments about it (3= not agree or disagree) 2.9 Importance of Features Rating Scale: 1=not important at all 2=Less Important 3=Important 4=Most Important 2.9.1 Welcome Tune

300

y c n u q e r F

200

100

Mean = 1.8618 Std. Dev. = 0.88502 N = 760

0 0.00

1.00

2.00

3.00

F1

4.00

5.00

No matter how large a budget mobile operators have spent behind communicating about welcome tunes, the bad news for them is that, most of the people feel it is not important at all. Very few of the respondents felt that it is very important.

2.9.2 Ringtones

300

y c n u q e r F

200

100

Mean = 2.8105 Std. Dev. = 0.9316 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

F2

Ring tones have fortunately been marked as an important feature of mobile phone and so, it is felt that, mobile connection operators should have more communication based on ring tones.

2.9.3 SMS

500

400

y c n u q e r F

300

200

100

Mean = 3.3874 Std. Dev. = 0.8139 N = 759

0 0.00

1.00

2.00

3.00

4.00

5.00

F3

SMS is voted as the most important feature of mobile phone.

2.9.4

Jokes 500

400

y c n u q e r F

300

200

100

Mean = 1.5816 Std. Dev. = 0.74472 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

F4

Jokes are termed as most unimportant feature. People hardly bother about its existence.

2.9.5 Internet Facility

300

250

200

y c n u q e r F

150

100

50 Mean = 2.9526 Std. Dev. = 0.97956 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

F5

Internet facility is felt by respondents as ranging from important to most important.

2.9.6 Credit Transfer 400

300

y c n u q e r F

200

100

Mean = 3.00 Std. Dev. = 0.82931 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

F6

Nobody would want to transfer credit; rather he/she would prefer credit being transferred to his/her account. Still, credit transfer is termed as an important feature as because one party definitely enjoys its advantage.

2.9.7 Bonus 400

300

y c n u q e r F

200

100

Mean = 3.2566 Std. Dev. = 0.75702 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

F7

Bonus is termed as an important feature by most of the respondents. Because people would definitely want some monetary return on their usage.

2.9.8 Discounts 400

300

y c n u q e r F

200

100

Mean = 3.2066 Std. Dev. = 0.77898 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

F8

Discounts are also termed as an important feature because people prefer to talk at lower rate.

2.9.9 Occasional Gifts 300

250

200

y c n u q e r F

150

100

50 Mean = 2.5961 Std. Dev. = 0.88836 N = 760

0 0.00

1.00

2.00

3.00

4.00

5.00

6.00

F9

As long as people enjoy lower call rate and bonus talk time, occasional gifts do not have much significance. Respondents’ choice ranged from not important to important.

2.9.10

MMS 300

250

200

y c n u q e r F

150

100

50 Mean = 2.552 Std. Dev. = 0.96761 N = 759

0 0.00

1.00

2.00

3.00

4.00

5.00

F10

Multi-media messaging service or MMS is also felt by respondents as important feature.

3.After a thorough analysis and revision of the findings derived from using the SPSS software on the responses from the respondents in the survey, we have jotted down some recommendations that we feel should be followed by the telecommunication companies for their sustainability in the industry. As the market is reaching a saturated stage, we have the following suggestions for the mobile phone companies.

•

Most of the respondents felt the need of convincing advertisements of the operators. They feel advertisements can really influence people to make choice on the purchase of a connection. So, the current mobile phone operators must make meaningful, convincing and instigating advertisements to make customers buy their connection.

•

Lower call rate is always a dominant reason for people’s preference for a particular connection. But as per government rules, the operators cannot lower their call rate after a certain limit. So, they have the freedom to play within that limit, and it all depends who is cleverer to outsmart another.

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Relationship marketing is really important. The respondents commented that the need for friendly customer care service centers is very important. So the mobile phone operators must provide congenial services in the customer care centers.

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The mobile phone operators should work more on providing more dealers and franchise outlets so that people can avail connection from a nearby place, as respondents have termed distance of buying connection as an important factor.

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Welcome tunes, jokes are factors not worth spending money on, as respondents have termed them as the least important features. So budget on communicating those features to customers should be cut down, and that money should be invested in features such as ring tones, SMS, MMS, internet, credit transfer, etc.

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Customers always prefer some monetary return on their usage of the connection and by providing such facility; mobile phone companies can ensure the enhancement of relationship with the customers. Bonus and discounts are such features that are listed as top priority by the respondents.

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Grameen Phone is the leading mobile phone company in Bangladesh in terms of market share and growth in the industry. It has the highest number of subscribers, and so far, the best network. To sustain this position, and to ensure that it maintains an increasing growth, rather than a stagnant one, GP has to lower its call rate and provide more facilities to acquire more customers, retain the existing ones, and switch other operators’ customers towards it.

AKtel, being the second largest mobile phone company in Bangladesh should work more on strengthening its strategy. It’s been quite a long time that AKtel is in this position and has hardly worked towards attaining the top position. AKtel is in the second position due to its long time in the industry, but when compared to Banglalink, which started way later than AKtel but is marginally apart from it in terms of revenue earning, then it must be concluded that AKtel should perform with more vigor orelse lose its position to Banglalink.

AKtel is the pioneer in introducing GPRS in Bangladesh. But it lost its charm as being the first one by not communicating it strongly to the right people. Though Grameen Phone has started later, but people are more accustomed with it than with AKtel. AKtel’s poor media planning and coverage is to be blamed for such a loss. To jump out of this image AKtel has to promote itself properly to people as being the first company to launch GPRS and communicate through the right media having the greatest exposure. AKtel is also the pioneer mobile company to launch insurance with its postpaid package. And also the first one to offer 5 fnf to any operator (for prepaid), and an included FNF to BTTB number for postpaid subscribers. It should work on its point of differentiation more critically and exploit the advantage.

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Banglalink, the 4th entrant in the industry, has experienced remarkable growth within its 3 years of operation. Its exclusive media exposure and coverage, wonderfully maintained public relation at the introductory stage has won millions of subscribers. Popularly known as ‘creating the price war’ Banglalink has revolutionized the call rate strategies. Banglalink has penetrated the market with extremely low rate that no other mobile companies ever thought of.

But creating such a chaotic situation of decreasing price every day at the expense of network maintenance cannot be termed as a good strategy. Banglalink has to improve its network and also introduce other services that the leading mobile phone companies are providing.

Because people now demand more with a package other than low price.

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Citycell, the first entrant and the only CDMA cellular service provider had a monopoly market in the beginning. But with the entrance of Grameen Phone, it had a drastic fall down and has moved to no.4 position in terms of market growth. But the average revenue earned per user in a week is noted the highest in Citycell.

Citycell, to gain more market share must communicate its services properly to the people and must always highlight its unique selling proposition properly. It must select the right media and provide better network, and other value added services to subscribers.

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Teletalk, the government owned mobile phone company is the 5 th entrant and is seeing emerging business in the industry. But it must introduce new package targeted towards the youth. Because, somehow, the young segment feel rather out from the Teletalk domain. So, a big chunk can be enjoyed from the youth group by introducing a package for them.

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Warid, the 6th and the latest entrant in the industry has entered a nearly saturated market. It has entered the riskiest stage and will need time to up heave itself and stand as a competitor for other already strongly-stood companies.

It must highlight its unique services as competitive advantage (e.g. 20 FNF, self-activated EDGE services, N-GEN technology, etc) more to the people and also expose its unique attributes to the target customer.

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The telecommunication industry in Bangladesh is seeing an uprising market, where each of the mobile phone connection companies are competing with all their weapons, which are their unique services and facilities for customers, to ensure a secured leading position. The market for telecommunication is predicted to be potentially strong and also has a profitable future, and this explains why new multinational cellular services companies are entering the Bangladeshi market.

The various features provided by the 6 telecom companies – Grameen Phone, Banglalink, AKtel, Teletalk, Citycell and Warid Telecom – are very alluring and competitive. But the companies cannot just invest on such features because most of the people in Bangladesh are not the target consumers of such features. So, the companies should invest more on the telecom infrastructure to provide better network and reduce the call rate to make communication more convenient and economical.

And at the same time the government should remove the SIM tax for all operators for ensuring a steady growth of the mobile industry in the country.

We are very pleased to have such a wonderful experience in getting this report to existence, and we feel inculcated to do such a report on such a thriving industry, that would very soon generate the highest amount of revenue for the country’s healthy economic state.