Report on grameen phone company by Roushan Zadeed

Reports on Graemeen Phone Company

INTRODUCTION Origin of the Report: This assignment based upon Grameen Phone Company, Bangladesh. Objective: (A) The main objective of the organization of this report area: ⇒ To discuss about Telecommunication Business in Bangladesh. ⇒ To present a background and introduction of Grameen Phone. ⇒ To provide a general description of the initial and present status of Grameen Phone. (B) The Analysis part: ⇒ To discuss about the process of local procurement of Grameen Phone. Scope of the study: The scope of the study is limited within telecommunication Business in Bangladesh and specially within the organization of Grameen Phone ltd. here I discussed mostly with the topics related to procurement process. Methodology: For the purpose of the study data and information have been collected from secondary sources only. Data are collected from primary source also but not in a formal way. I have

interviewed and taken some suggestions orally from the persons mentioned in the acknowledgment. The relevant information has been collected from published / non published reports, books, brochures etc of Grameen Phone ltd.

Limitations There were some limitations in preparing this report. Those are as fellows⇒ Preparing internship report is really trouble some. ⇒ Collecting data and information was not smooth. ⇒ As it is heart of Grameen Phone so all of the documents are some much confidential. ⇒ This type of report preparation is expensive.

Telecommunication Industry in Bangladesh - An Overview

Since the introduction of mobile phones in August 1993, the telecom industry in Bangladesh has undergone dramatic changes for the last 8 years. The potential growth of the telecom industry in Bangladesh is very prospective due to the country’s large population and

relatively a small number of phones. Only 4 out of 1000 people in Bangladesh have either a fixed or a mobile phone. At present there are four mobile operators in Bangladesh i.e. Pacific Bangladesh, the analog cellular operator, Grameen Phone (launched its GSM services in the second quarter of 1997), TMIB (launched its services in the summer of 1997), and Sheba Telecom (launched its services in the middle of 1998). The telecom market in Bangladesh is comprised of half a million- phone connections of which 82% i.e. 410,000 phone connections is provided by the fixed line network, Bangladesh Telegraph and Telephone Board (BTTB). The remaining 18% i.e. about 2,85,000 connections are divided among the four mobile operators. The market share of the mobile operator is as follows: Grameen Phone Ltd. is the market leader in the cellular industry in Bangladesh. The coverage area of mobile operators is also increasing rapidly. At present, Grameen Phonehas the coverage in six divisional head quarters including 35 districts. The company has a long distribution channel, which comprises of 170 Sales Outlet and 60

Competition in the cellular industry has increased among the operators and now a day’s customer has more alternatives. As results of this, start up prices has gone down and, eventually market penetration in all possible segments has become possible. Huge demand, a combination of competitive markets, private ownership and foreign investment has created an environment for rapid growth in the cellular industry in Bangladesh. Although the demand of the mobile phone is very high, some of the constraining factors have hampered the industry’s growth. The main obstacle to the growth of this industry is insufficient interconnection with BTTB. Many potential clients are being discouraged to subscribe mobile phone due to this reason. However it seems that with the growth of mobile phone in the country, the demand for fixed lines will be decreased in the near future. The growth in the cellular industry is contributing very positively in the local economy. Lot of job opportunities has been created for the country where thousands of people are jobless. Moreover, cellular network all over the country has built a basic communication infrastructure for the country, which will definitely attract the FDI in the country. Finally it can be said that mobile pone now a days has become a necessity rather than a luxury. The potential growth of telecom sector in Bangladesh is bright, due to the country’s large population and relatively a small number of phones. Only 4 out of 1000 people in Bangladesh have either a fixed or a mobile phone. In comparable India, there are 112 per 1000 people. The simplest way to understand the potential of telecom in Bangladesh is comparing the country’s situation with that of India. Economically, India is indeed comparable to Bangladesh. While the nominal per capita income in Bangladesh is about 15% lower than that in India, Bangladesh has a slightly higher per capita income than India when purchasing power is taken into account. The two countries have virtually identical income distributions and the share of their respective economies in the non-agricultural sectors. The following table (with data from 1994-1996) illustrates a general comparison of Bangladesh with its neighbors.

Thailand is also shown here as model developing country that Bangladesh could follow. Sri

India

Pakistan

Bangladesh

Thailand

1.07

1.62

0.23

4.69

Lanka FIXED LINES Telephones

lines

per

100 1

people

Faults per 100 lines/month

Faults repaired next working

263.1

57.1

88.9

497

133.2

1.6

4.7

1.8

3.7

4.0

0.05

0.06

0.04

Cellular phones per 100 people

0.32

0.01

0.05

0.00

2.08

Total subscribers-1995

58,000

48,500

62,000

3300

1,253,361

Total subscribers-1996

105,100

285,000

103,600

5000

1,765,630

Population, mm people

18.3

936

131.5

128

60.3

Population density (perkm2)

280

285

163

890

117

Percent Urban

GNP/capita PPP (US$, 1994)

3,150

1,290

2,210

1,350

6,870

GDP growth-1995

6.2%

4.4%

GDP growth-1996

5.7%

4.7%

day

Local call completion rate Connection fee, US$ Monthly subscription, US$ Local call, US$

CELLULAR PHONES

GENERATION

The telecom market in Bangladesh is comprised of half a millionâ&#x20AC;&#x201D; phone connections of which 82% i.e. 410,000 phone connections is provided by the fixed line network, Bangladesh Telegraph and Telephone Board. The remaining 18% i.e. about 85,000 connections are divided among mobile operators: Pacific Bangladesh, the analog cellular operator, Grarneen Phone (launched its GSM services in the second quarter of 1997), TMIB (launched its services in the summer of 1997), and Sheba Telecom (launched its services in the middle of 1998).

ABOUT GRAMEEN PHONE LIMITED.

Introduction Grameen Phone(GP) Limited, the number one and leading mobile company in the area of telecommunication in Bangladesh. Of the four mobile operators, GP managed to grab 57% of the market share only by providing cost-effective & the best service available in the market of Mobile Telecommunication. OP has made its expansion not only in the urban areas, but also it has stretched its network in the rural areas for the economic empowerment of the rural people. Grameen Phone(GP) has made a special arrangement with Grameen Telecom, an affiliate of Grameen Bank, in providing cellular services in the rural country with an aim to cover the whole of it by 2001.

GP believes Excellency in its service towards the subscribers, it is growing and at the same time being competitive. To keep up this upward trend and leading position absolute dedication to understanding and fulfilling their customers’ need with the appropriate mix of standard service, reliability, improved technology, and skilled as well as dedicated manpower is necessary. Organization History

The concept of mobile telephony became largely familiar and phenomenal in Bangladesh in the early 90s. The government of it Bangladesh awarded Grameen Phone(GP) a nationwide digital cellular license on November 1996. Grameen Phone(GP) has been established by a consortium involving Grameen Telecom of Bangladesh, an affiliate of the world famous Grameen Bank. Telenor AS, the main Norwegian Telecommunication Company Marubeni Corporation, one the largest trading and investment companies in Japan; and Gonofone Development Corporation, a telecommunication development company in the United States. Besides these shareholder or ownership, OP’s other investors arc — NORAD, CDC IFC, ADB. Grameen Phone(GP) launched services in Bangladesh on 26 March 1997 with 72 employees. It has taken lease of Railway fiber optics on September ‘97 for 20 years. In February 2000

Grameen Phone(GP) received GSM Community Award from GSM World Congress, France and in June 2000, Grameen Phone(GP) started service in all 6 divisional towns. Culture Grameen Phone(GP) has a conducive and safe working environment. Besides focusing on customers and communities, they are committed to treating their employees with Integrity, dignity and respect. The Company’s intent is to establish good working relationship through a mutual understanding of expectations. They believe in working in a team and demonstrate team spirit to maximize and excel in standard quality service to their valued subscribers in the area of telecommunication. Employees work in an environment where they feel valued, responsible and supported by the authority as well as by their colleagues. Company Strategies Grameen Phone(GP)’s basic strategy is coverage of both urban and rural areas. The Company has devised its strategies so that it earns healthy returns for its shareholders and at the same time, contributes to genuine development of the country. In short, it pursues a dual strategy of good business and good development. Serving the mass market is one of GP’s primary goals. By serving the general public as opposed to niche markets, the Company plans to achieve economies of scale and healthy profits. At the same time, service to the general public means connectivity to a wider population and general economic development of the country. In contrast to the ‘island” strategy followed by some companies, which involves connecting isolated islands of urban coverage through transmission links, Grameen Phone(GP) builds continuous coverage, ccii after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout Grameen Phone(GP)’s network. In addition, GP has positioned itself to capitalize on the declining prices of handsets, making its goal to serve the general public realistic.

Company Vision: Grameen Phone(GP) believes that a clearly defined statement is necessary to achieve the future goals of the company- ‘to make the dream a reality’. Accordingly a standard set of goals i.e., the broader level of objectives and approaches could be determined to accomplish the Vision.

Main Vision To be the leading provider of telecommunication services all Bangladesh with satisfied customers, shareholders & enthusiastic employees.

Another Vision is :

“By attaining the success factors, Grameen Phone(GP) would like to be recognized as a reliable, honest and committed company to its valued subscribers and Stakeholders”.

Company Values:

Company’s values guide the actions and behaviors of employees to fulfill its vision. Peoples of different cross sections join a company and work together. So each & every employee of that company should adhere to these vales as the ideology of the Company. Values are very important for the Company to reach its vision. Employees’ willingness & commitment to the company is important in demonstrating values in their personal and professional lives. Grameen Phone(GP) has a standard set of values that all employees should practice. Honesty:  Each & every employee should be honest in his/her part of job as well as the whole perspectives.  Honesty is the yardstick, which restrain employees from discarding their job rather accomplishing the job with care.  This is a virtue that helps each and every employee to be loyal with his/her deeds.  Honest employees take the goodwill of the company into account seriously.

Reliability  Reliability means that customers, colleagues, suppliers, competitors and society must be able to rely on them.  Their dealings with customers should be positive and professional so that they have trust on them.  They measure by efficiency, a high degree of service, customer satisfaction, the quality of their public relation.

 Their approach and iterations facilitate effective communication with customers and employees, therefore, people outside as well as within the Company have confidence on each other. Commitment:  Commitment stands for individual’s willingness to contribute to the effectiveness of the Company’s Growth & Service.  All employees must work hard to challenging goals. Responsibility should be taken for the development and implementation of their own work plans.  The desire to meet up commitment comes from the employee’s soul.  Each employee should have interest to attain personal and professional development in his/her job and use his/her creativity, learn new things, have the opportunity to take on greater responsibility and contribute to the Company success. Working Conditions: The company offers a wonderful and friendly working environment in the office. Grameen Phone(GP) has conducive and safe working environment. The Company’s intent is to establish a good working relationship through a mutual understanding of expectations. They believe in working in a team and demonstrate team spirit to maximize and excel in standard quality service to their valued subscribers in the area of telecommunication. Employees work in an environment where they feel valued, responsible and supported by the authority as well as by their colleagues. Grameen Phone(GP) also takes preventive and safety measures to avoid all sorts of hazardous situation that might take place in some areas of technical functions.

With its present status GP aims to expand and grow at a â&#x20AC;˘faster pace by utilizing the best possible opportunities and expansion of Network throughout the whole country. This enormous task requires dedicated, devoted and committed manpower. Employee Standard of Conduct The employees of Grameen Phone(GP) represent the Company in their personal and professional dealings with its clients; therefore, their interactions with the clients should be professional. Employees must believe in the following: 1.

GP is a service oriented and profitable Company; therefore all of its efforts should be directed towards efficient service delivery for profit earning.

During any dealings with the customers and employees, one must maintain highest standards of professional behavior and integrity.

Customers are their main focus; therefore customerâ&#x20AC;&#x2122;s satisfaction is their satisfaction. The employeeâ&#x20AC;&#x2122;s approach and dealing with the customer should be in such a manner that would make the customer happy and satisfied.

Every employee should treat other employees with courtesy and civility.

Every one must maintain professional secrecy of business.

Any type of behavior by an employee that intimidates other employees, any from of harassment, persecution or discriminatory practices at the workplace is strictly prohibited.

All Employees must behave with respect in relation to business connections, colleagues, and others, with whom they have to interact frequently at the workplace.

No one is allowed to take part in any activity in any manner that is deemed to be conflicting to Company vision and goals.

Classification of Employees Permanent: An employee who has been employed against a permanent position and has satisfactory completed the probationary period and has been notified in writing as a permanent employee. Whenever, the Managing Director feels it necessary, Grameen Phone(GP) may hire someone directly without probationary period. Probationer: An employee who has been hire for filling a regular position but has not yet completed his/her probationary period. Contract: An employee who has been recruited for a specific period of time for performing specific job. Usually, the period should not be more than one year. Under special circumstance, however, such period may be extended upon than approval of HR. Temporary or Part-time Any person who has been hired for a short period of time to perform a specific assignment. Such employment is situational. Their payment may be made hourly, daily, weekly or monthly. The period of such employment shall not exceed three months. However, in exceptional circumstances, their employment may be extended for further one month. A temporary employee may be considered for a regular position in Grameen Phone if: I)

The employee performs his/her assignment up to the satisfaction of the Manager.

II)

The employee meets the job requirements.

III)

There is a vacancy

IV)

There are necessary budgetary provisions and

Manager recommends in writing for hiring.

Employee Benefits Following are the benefits currently available in Grameen Phone(GP) Ltd. Grameen Phone(GP) is introducing different kinds of benefits for its employees gradually keeping the employees satisfaction and safety in mind. Our package of benefits is flexible.  Bonus  Overtime  Gratuity  Leave Salary  On Call allowance  Festival allowance  Technical allowance  Late working allowance  Group insurance  Employee Mobile Phone  Employee Quota Mobile Phone  Transport  Discounted Medical Service at ‘Medinova’  In house medical constancy  Overseas and In country training

Employee Growth:

Organization Chart

Board of Directors Managing Directors Finance

Personnel & Organization

Procurement

Information

External Co-ord. & Legal Technical

Subscribers

Sales & Marketing

Customer Relations

Grameen Phone(GP) Limited has just crossed another important milestone by reaching the 200,000-subscriber mark during the first week of February.

The number of GF users tripled from 60,000 to over 190,000 last year. The largest mobile phone operator in the country with over 60 percent market share, Grameen Phone(GP) doubled its subscriber-base every year prior to that since its service was launched on March 26, 1997. It may be noted that GP reached its 100,000th subscriber only in June 2000. To meet the rapidly increasing demand, Grameen2honc implemented a major project to upgrade its existing network in November last year. The project, worth over 10 million US dollars, was taken up to meet the existing requirement and to prepare for the projected quick growth in the coming months. Under the project, all major network elements were upgraded while another 39 base stations were added to the network.

Grameen Phone(GP) now has coverage in over 30 districts including all six divisional headquarters. Plans are in place to further improve the service and expand the network coverage to more areas of the country during the current year. The Shareholders of Grameen Phone(GP) The shareholders of Grameen Phone(GP) (GP) bring together experiences from different parts of the world. This is particularly enriched by the unique in-depth experience of Grameen Bank, an institution dedicated to poverty alleviation through collateral-free small loans in the rural areas of Bangladesh. The foreign shareholders from Norway, Japan, and the United States -countries that have been working as close partners of Bangladesh in its struggle for economic progress since independence - bring a rich heritage of human progress in technology, business cooperation, free market competition, and socio-economic institution building. Telenor Which owns 51% of GP, is the state-owned telecommunication company in Norway operating since 1885? It is amongst the oldest, most sophisticated, and diversified telecom companies in the world. The company has a long history of successful cooperation with other operators and governments in and out of Norway. Telenors home base, Norway, has the highest density of mobile phones in the world and one of the most competitive markets in the field, Telenor has been playing a pioneering role in the development of GSM, one the latest and most successful versions of cellular technologies. Grameen Telecom The second largest shareholder owning 35% of GP, has been established by Grameen Bank, which believes that a lack of communication facilities in the rural areas is one of the major obstacles to rapid economic development in the rural areas of Bangladesh. Grameen Telecoms deep understanding of the people and culture of Bangladesh helps GP to build up

convenient and cost- effective communication facilities in the rural areas, which in turn, create more jobs and open up business opportunities there. Marubeni Corporation: Is one of the largest general trading and investment companies in Japan. The company has a global business network that oversees a number of operations ranging from domestic export and import to offshore trade and retail marketing of finished products. Marubeni invests in manufacturing facilities and infrastructure projects, including in the telecommunications sector. The company owns 9.5% of GP.

Gonofone Development Corp: Which owns 4.5% of GP, is a company based in New York? Telecommunications Developments Company based in New York. In addition, three leading international financial institutionsâ&#x20AC;&#x201D;the International Finance Corporation, Asian Development Bank and the Commonwealth Development Corporation are also shareholders of Grameen Phone(GP). The three organizations each hold three percent, of preferred shares of Grameen Phone(GP).

Product and Services Mobile phones are spreading rapidly throughout the country. Today more than one in three telephones in Dhaka and Chittagong are mobiles. All six Divisional Headquarters in the country - Dhaka, Chittagong, Khulna, Sylhet, Barisal and Rajshahi - are under Grameen Phone(GP)s coverage now. Grameen Phoneâ&#x20AC;&#x2122;s network is divided into six zones according to the divisional borders: Dhaka Zone, Chittagong Zone, Khulna Zone, Sylhet Zone, Barisal Zone and Rajshahi Zone. Currently OP is operating in all six zones. The zone in which a subscriber is registered with Grameen Phone(GP) is that subscribers Home Zone, and all other zones are Remote Zones. Services of Grameen Phone;

Under Post Paid Service there are following products Xplore

Connection Type

Current Price

Xplore Postpaid (M2M, BTCL, NWD)

BDT 499

BDT 499 + Security Deposit (SD) BDT 3000 incase if there is no Auto Debit Xplore Postpaid (M2M, option from Standard Chartered Bank & Lanka Bangla or Bank Guarantee BTCL, NWD) with ISD facility from UCB * Security Deposit for Xplore ISD facilities and SD amount is refundable. â&#x20AC;˘

NWD calls: BTCL's Peak (8am - 10pm) & Off-peak (10pm - 8am) rate will be applicable for BTCL charge

All figures are excluding VAT. 15% VAT will be applicable. BTCL Incoming is absolutely free for Xplore

• •

Other Attractive Offers: Internet at a lower price P9 package at BDT 80 for both New & Existing Xplore subscribers. To activate the package subscribers will have to type P9 from his/her SMS option and send the SMS to 5000 (Free of charge). This is a permanent offer for the Xplore subscribers. Free bill checking options Currently there are 6 ways through which Xplore subscribers can check their bill. The options are as follows: Options

Existing Scenario

New Scenario

Invoice Copy

Free

SMS in Invoice Date

Free

Push Pull SMS

BDT 2 / SMS

Free*

Grameenphone E-Care

Free

121 (IVR)

50 Paisa/ Min

USSD

N/A

Free*

*Note: Newly introduced free bill checking options

• •

a) To check bill through Push-Pull SMS: Type Usage in SMS option and send SMS to 4777 b) to check bill through USSD option: Dial *111*4*1*2# to check Total due Dial *111*4*2# to check credit limit information Auto Debit Bill Payment Option Through this offer, Credit Card and Account holders of Selective banks / financial institutes will be able to enjoy auto-debit facility and if any subscribers avails this option then he/she will not be required to submit BDT 3,000 as security deposit to enjoy the ISD facility. In addition to this, these subscribers will get BDT 3,000 as additional credit limit. To avail the full benefits of this particular offer, subscribers need to have credit cards/accounts of Standard Chartered Bank, Lanka Bangla Finance, The City Bank Ltd. & United Commercial Bank

Extended Credit Limit Option with Bank Guarantee from United Commercial Bank: • • • • •

This offer will allow Xplore subscribers (both New & Existing) to increase credit limit and talk uninterruptedly within that limit as per UCB's approval and feedback as a guarantor GPCs (our 17 GPCs all throughout Bangladesh) will be the only touch point from where subscribers will be able to avail this offer This offer will be available for those customers who will have A/C No./Debit/ Credit Cards of UCB with whom GP will be in agreement for Bank Guarantee While availing this offer, customers will have to fill up a separate User Registration Form The Bank Guarantee offer with UCB will be available only from the following GPCs: GPC Name

Location

Address

GPC Agrabad

Agrabad, Chittagong 59, Agrabad C/A, Chittagong

GPC Barisal

Barisal

L L Tower, 119, Sadar Road, Barisal

GPC Bogra

Bogra

Kabi Nazrul Islam Road, Jhautala, Bogra

GPC Comilla

Comilla

JL 285, Holding # 1043/986, Mouja - Kandirpar, Jhautola, PS: Kotowali, Comilla

GPC Dhanmondi Dhanmondi, Dhaka

H # 38/2, R # 16 (new), 27(old), Dhanmondi R/A, Dhaka

GPC Dinajpur

Dinajpur

Goneshtola, Kotoali Thana, PS – Rajbati (Opposite to Fire Service), Dinajpur

GPC Farmgate

Farmgate, Dhaka

71 , Kazi Nazrul Islam Avenue, Farmgate, Dhaka

GPC GEC

GEC, Chittagong

1012/A, CDA Avenue, East Nasirabad, Chittagong

GPC Gulshan

Gulshan,Dhaka

Delvistaa Tower, H #1/A, R # 113, Gulshan -2, Dhaka – 1212

GPC Jessore

Jessore

128 R.N. Road (Ground Floor), Jessore – 7400

GPC Khulna

Khulna

181, Khan-E-Sabur Road, Khulna

GPC Mirpur

Mirpur, Dhaka

Rabiul Plaza, Plot # shee-1/kha, Section-1, Mirpur, Dhaka-1216

GPC Rajshahi

Rajshahi

Dainik Barta Complex, Alu Patti, Natore Road, Rajshahi

GPC Rangpur

Rangpur

Central Point, Central Road, Paira Chattar, Rangpur

GPC Mymensingh

Mymensingh

11, C.K. Ghosh Road, Mymensingh

GPC Name

Location

Address

GPC Sylhet

Sylhet

Dewan Manson, Airport Road, Amborkhana, Sylhet

GPC Motijheel

Motijheel

City Center Building, 1st Floor Plot # 5/A, Motijheel C/A, Dhaka1000

Disconnected SIM Offer

• • •

Duration of Disconnection*

Minimum Requirement for **Reconnection

Percentage of Discount on Local Dues

Disconnected for 1 to 2 Years

Will have to clear full dues

10% discount on local airtime usage for next 3 months as per bill cycle

Disconnected for more than 2 Years to 5 Years

Subscribers will have to clear the rest of the dues after discount

50% discount on local dues

Disconnected for more than 5 Years to 9 Years

Subscribers will have to clear the rest of the dues after discount

70% discount on local dues

Disconnected for more than 9 Years

Subscribers will have to clear the rest of the dues after discount

90% discount on local dues

Disconnected meaning Permanently disconnected For reconnection subscriber has to have a registered SIM as per BTRC guideline Reconnected SIM will be treated as new SIM and therefore will be eligible for freebies

Prepaid to Postpaid Balance Transfer • •

Through this offer Prepaid subscribers can now transfer balance to any GP Postpaid as per existing balance transfer process and conditions Transferred amount will be treated as bill adjustment

Modalities & Conditions Maximum number of transfer in one month*

Minimum amount transfer per transaction

BDT 50

Maximum amount transfer per transaction

BDT 100

Modalities & Conditions Maximum amount that can be transferred in a month

BDT 1000

SMS charge for sender

BDT 2.00 + 15% VAT

Balance transfer charge for receiver

BDT 2.00 (flat charge for any amount)

*Note: From Multiple Prepaid Numbers

NISCHINTO:

• •

•

• • • •

10 Second pulse will be applicable in this package All other tariffs of SMS, Intl SMS, MMS, Ring tone, Welcome Tune , Value Added Services (VAS), EDGE Packages and contents etc. remain AS IS or similar to any other prepaid package Aapon, Bondhu, Spondon, Amontron, Shohoj, Smile & djuice will be able to migrate to this package. To migrate, customer needs to write “N” and send SMS to 4444. Or just dial *111*44# (free of charge) Customer of this package can also migrate to the other prepaid price plans of Grameenphone i.e. Aapon, Bondhu, Spondon, Amontron, Shohoj, Smile & djuice Customer will be able to migrate out to other consumer prepaid packages after each 15 days of migration No F&F or Community feature is applicable for this package 15% VAT will be applicable on all charges

20% Instant Money Back facility on local voice call usages: •

Nishchinto Customers will get 20% instant money back in local voice call (Tk 1 bonus talk-time for every Tk 5 usage in a day)

Local Voice Usage 5

Bonus Talk-time

Every day highest bonus talk-time is Tk 2 Customers should have Tk 5 minimum usage in local voice call everyday to get this

• •

bonus • •

Dial *566*8# to know the bonus balance amount Local voice call means call in local PSTN, NWD and P2P Mobile

Customers will not get bonus on any usage in bonus talk-time and Myzone tariff Bonus will be accumulated on the local voice usage during 01:00 hr to 23:59 hr in a

• •

day • • •

Validity of bonus talk-time is 1 day (till 23:59 hour of the bonus disbursement day) Bonus talk-time will used only in GP-GP call (except 60 paisa tariff or lower tariff and Myzone) Nishchinto tariff will be applicable for bonus talk-time

BONDHU

• • • • • • • • •

10 F&F numbers in total 1 GP-GP super F&F 9 (maximum) GP-GP F&F 9 (maximum) GP-Other operator F&F Calls to GP-GP Super F&F numbers at 5 paisa/ 10 second Calls to GP-GP F&F numbers at 9 paisa/ 10 second Calls to other operator F&F number at 15 paisa/ 10 second All GP-GP calls (excluding F&F calls) at 25 paisa/ 10 second All GP-Other Operator calls (excluding F&F calls) at 25 paisa/ 10 second

AMONTRON

• • • •

1 Super F&F (GP-GP) Number (24 hours): 5 paisa/10 second GP - Other operators (24 hours): 11 paisa / 10 second GP- GP (24 hours): 20 paisa / 10 second 10 second pulse SHOHOJ

• •

Pulse: 10 Seconds Shohoj package users can also migrate to the other prepaid price plans of Grameen phone i.e. Nishchinto, Bondhu, Amontron, Spondon, Aapon, Smile & djuice SPONDON

“Spondon” is the new attractive price plan from Grameen phone which gives you the opportunity to “Pay only as much as you will talk”. This is the only consumer prepaid package offered by Grameen phone that gives you the privilege of calling at any local numbers with 1 second pulse facility at a flat tariff (24 hours) of 2 Paisa/Second. AAPON

• • •

Price: BDT 149.00 Pulse: 10 Seconds To enjoy the facilities of Aapon package, you need to migrate to this package from any of the prepaid price plans – Nishchinto, Shohoj, Bondhu, Spondon, Amontron, djuice or Smile. SMILE

• • • •

• • • • •

Number of FnF: 3 Other price plan users such as Shohoj, Apon, Bondhu, Spondon, Amontron and djuice will be able to migrate to SMILE and vice versa, Free of Charge Validity of each migration is 15 days 15% VAT will be applicable with all charges DJUICE Price: BDT 149.00 Pulse: 10 Seconds A subscriber can also migrate to the other prepaid price plans Aapon, Bondhu, Shohoj, Spondon, Amontron and Smile 3 FnF numbers Calls to F&F numbers at 10 paisa/ 10 second

GSM Features Grameen Phone(GP) subscribers enjoy the following GSM features without bearing any additional costs:

Caller ID: Display of the phone number of an incoming call in your handset before the call is answered Call Waiting: While talking to the first caller, you will hear a special tone informing you about the second call on the line. At that moment you can put the first caller on hold and talk to the second caller. Call Conference: Receiving calls from multiple callers can be supplemented by joining these multiple callers so as to enable them to talk to each other. You will be able to communicate with a group consisting of maximum five callers. Call Divert: Call Divert lets you redirect or re-route your call to another Grameen Phone(GP) mobile or any other fixed (if you have BTTB connectivity) or mobile phone.

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

VMS is a unique answering machine.

•

It provides you with a personal electronic mail box in our voice mail center.

•

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

•

It records incoming voice messages if you are:

= Outside GP’s coverage area or = Busy or = Simply switched off your mobile. •

It provides 24-hour automatic secretarial service

•

Makes you available to your calling party anytime

Short Message Service (SMS) •

SMS in your mobile acts like an advanced pager.

•

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

Fax and Data Service (currently available only to corporate clients): •

You can use your mobile phonc attached to a computer to send faxes or transfer data.

•

No need to have connection with a fixed line.

•

You can use this service even when you are on the move within OP’s coverage area.

Pre-Paid Service Introduction of Grameen Phone(GP)’s new EASY Pre-Paid Service is another development of mobile telephony in Bangladesh. EASY has National Roaming facility and a flat airtime charge at low per minute. There is no incoming charge. This service helps the subscriber to control costs. It frees the subscriber from the hassles of paying bills, security deposits and line rents. But it contains nearly all services available in other OP products. Subscribers can subscribe the service from all OP authorized points of sale. To start with, you have to buy the EASY Starter Kit or Flexi Load and a handset. EASY & Flexi Load features: •

No Monthly Bills

•

Flat rate, no Security Deposits

•

No Monthly Access Fees

•

No Waiting for Activation

•

Instant Connection

•

EASY Voice Mail Service, free of monthly rents

•

EASY Cards of Four Different Values and Colors

•

tk 10 to 10,000 Flexi load at anywhere in Bangladesh.

•

National Roaming Facility

•

GSM Features like Caller ID and Call Divert to Voice Mail Service

Service or the Rural Poor Establishing a nationwide network gives fair access to all geographical areas. From a business point of view, this strategy serves both the long distances as well as the rural markets. This emphasis on rural coverage brings a much-needed infrastructure in the underdeveloped rural areas. In collaboration with Grameen Bank, which pro vides micro-credit only to the rural poor. GP utilizes the bank borrowers to retail telecom services in the rural areas. Leveraging on Grameen Bank borrowers reduces the distribution costs of (L Phones rural services, contributing to the profitability of this segment. By bringing electronic connectivity to rural Bangladesh, Grameen Phone(GP) is bringing the digital revolution to the doorsteps of the rural poor and unconnected. By being able to connect to urban areas or even to foreign countries, a whole new world of opportunities are opening up for the villagers in Bangladesh. Grameen Bank borrowers who provide the services are uplifting themselves economically through a new means of income generation while at the same time providing valuable telephone service to their fellow villagers. Thus,

Goals: theFuture telephone becomes a weapon against poverty. • To place at least one phone in each village to contribute to the economic upliftPhone of those villages Future Goals of Grameen • To bring the whole country within the coverage of Grameen Phone(GP) • To establish roaming facilities with all the countries •

To achieve the target of 370,000 subscribers within year 2001

3.17 PURPOSE

PURPOSE GRAMEEN PHONE(GP) HAS A DUAL PURPOSE To receive and economic return on its investments To contribute to country’s economic development.

THE PROCESS OF PROCUREMENT OF GRAMEEN PHONE What is procurement? Procure means to collect something but “procurement” is used as a broad term, including all steps in a complete service of supply from the receipt of specifications for required material through to the issuance of the items from the stock room to the user, and in some instances including even the acquisition by production of items that might be purchased outside. At other times it may refer exclusively to the locating of suppliers, price negotiation placing the purchase order, or even to nothing more than the mere singing of purchase order. Local Procurement: When products are collected from local sources so it is called local procurement for instances office decoration, computer, A/C machine, Fan, Electrical equipment, Vehicle office Furniture, Stationary Papers, card, lighting cable, Dairy, Year Calendar, Marketing ad. Procurement process of Grameen Phone ltd.

The essential steps of procurement procedures of Grameen Phone may be indicated substantially which are as follows: (i)

The ascertainment of the need.

(ii)

An accurate statement of the character and amount of the article or commodity desire.

(iii)

The transmission of the purchase requisition from user department.

(iv)

Negotiation for the possible sources of supply.

(v)

The analysis of the proposals, the selection of the vendor / suppliers, and the issuance of purchase order.

(vi)

The follow up on the order

(vii)

The receipt and inspection of the goods.

(viii)

The checking of the invoice.

(ix)

The completion of the record.

The ascertainment of the need: Before an item can be bought, someone must decide whether or not to buy it; and if so, specifically what should be bought. According to the degree of importance, the value involved or complexity of the problems purchasing has the responsibility of developing prices, alternatives and other relevant information. For instance the Finance Departmentâ&#x20AC;&#x2122;s need is a photocopy machine. Accurate Description of commodity Desired: Procurement department cannot be expected to buy for the using departments unless it knows exactly what these departments want. For this reason, it is elementary to say that in attempting to meet the requirements of the other divisions of the business it must insist upon an accurate description of the article or commodity which is requested. There is, however, procurements personnel should be familiar with the article required.

Transmission of purchase Requisition: When the decision is reached by the appropriate individual, that decision is transmitted in the form of a duly authorized requisition whatever the requisition or request is sent to the procurement through specific memorandum. After receiving the requisition the purchasing department strictly follows the quantity identity and the date when the item is required. The requisition form usually provides certain additional information for the convenience of subsequent receiving and handling as well as accounting and cost control records, such as specific destination identification and the appropriate costs codes to be charged. Negotiation for the possible sources of supply: It is purchasing’s function at this point to take over the direct procurement responsibility. Based on knowledge and experience as to potential supplier’s the purchasing agent determines whom to invite to quote. According to circumstance and his judgment he may elect to phone, telegraph or mobile his quotation requests or to invite vendor representatives in for personal discussion. When time allow it is advisable to send a formal quotation request form even when a single suppliers is asked to quote Here Grameen Phone deals with two different suppliers. It has two types of supplier’s one is enlisted to Grameen Phone at a certain agreement and another one is not listed to Grameen Phone. According to agreement GP procure articles with enlisted suppliers. But those are not enlisted they have to face bids. Grameen Phone collect at least three quotation for purchasing desired product from unlisted supplier’s. If their product is same in quality then GP (procurement) Think about cost effectiveness and collect product. Issuance of purchase order: When agreement with the chosen vendor in reached, all pertinent provision of the agreement are formally confirmed by the preparation and issuance of the purchase order. The purchase order is a legal binding obligation and the authority to incur such obligation is a function entrusted to the intelligence, prudent judgment and integrity of the purchasing

agent. It is essential that the obligation be stated on the purchase order clearly and completely. Usually the purchase order is imprinted with the standard condition on which the company is willing to do business and the particular purchase agreement is thereby stated as subject the vendor’s acceptance to those standard conditions. Specific provisions negotiated for the particular order include quantity and identification as price and discount terms, delivery instructions covering mode of transportation, carrier, routing, destination and

required delivery data, and such pertinent special instructions as provisions for

inspection, certification, packaging, reshipment samples and notification of shipments, While the primary purpose of the purchase order is to state the detail agreement reached with the vendor and authorize his delivery of the purchased material, copies of the documents, serve the additional purpose of notifying and advising all other effected departments of the details of the transaction. Thus The requisitioned is notified that his material has been ordered the terms of the purchase and when he may expect delivery. Receiving personnel are notified what is coming material to expect, when and how it is scheduled to be delivered, what inspection to make and whom to notify on arrival. The accounting department’s copy notified of the expenditure committed and furnishes the price and terms to be varied and paid on the subsequent invoice. Follow-up Expediting on the order: Follow-up in the process or function of checking up on the vendor to ensure his fulfillment of his promised delivery obligation. While the term “expediting” is frequently used loosely or interchangeably with “follow-up”. It is more accurate to define expediting as the effort to improve a promised or scheduled delivery. Follow-up is a function almost always performed by the purchasing department. Receiving and Inspection: The function or process of procurement indicates the physically handling delivered materials together with verifying that the delivery’s correspond exactly to that specified in

the purchase order, is usually perfumed not by the purchasing department but by a specialized group. Inspection ranges from simple count and verification of the packing list or delivery ticked of products in also includes the technical side of product. Invoice check and payment: If is generally recognized accounting function verify or check the accuracy of invoices and there upon to transmit payment to the vendor. Invoices require three checks: first, verification by comparison with receiving documents that the billed material has been received complete and in proper condition: second, verification by comparison with the purchase order that the prices and terms conform to the purchasing agentâ&#x20AC;&#x2122;s commitment. Third, verify for arithmetical accuracy. Completion of the Record: After having gone through the steps thus for described, all that remains for the disposal of any order is the completion of the record of the purchasing department. This operation involves little more than the assembling and filing of the purchasing departmentâ&#x20AC;&#x2122;s copies of documents relating to the order and the transfer to appropriate records of such information as the department may wish to keep.

Technical Division

Sales and Marketing Division

Board of Management Approved

Budgetary Approved

Customer Relation Division

Departmental Approved

Procurement Division PR Received

Not-listed Vendors

Quotation Collection

Corporate/HR /Admin Division

Event wise PR.

Approved in finance Division

Enlisted Vendors Fixed Price

Negotiation

PO Issue

Graphical Presentation of Procurement

Board of Management: The members of Board are the concern person of various departments it may be top management of company. Grameen phone has a strong board of management. It justifies needs of any user department and approved the need. For example HR (Human Resource) division needs five hundred chairs and its assumed price is three lacks for its office decoration. In this perspective the board of management will justify the mentioned need whether the requirement is essential or not.

Budget Approved: Its function is to approve budget for any procurement purpose. Here the board members, investors will observe the requirement and will invest the project for earning profit. Departmental Approved: When the decision is taken and budget is approved for procuring goods and services then its go for departmental approve It is approved by the concern person of that department.(HR department) Event wise PR (Purchase Requisition): Suppose HR department will purchase verity of chairs for office decoration. According to verity the PR (purchase Requisition) will be issued. Finance department Approved: When PR is issued and forwarded to finance department for its approval then finance is approved for purchasing products. It is mentioned that three lacks taka will sanction in this department. Procurement: After signing the PR from finance department it is collected by procurement division. Procurement manager observe the PR and contact to suppliers for procuring materials for user department. There are to ways of procurement in Grameen phone. One is with enlisted suppliers other is not-listed suppliers. When it is from enlisted suppliers that time Grameen phone only issue PO (purchase order) because GP has an agreement with enlisted suppliers under the fixed price. So suppliers do according to agreement. On the other hand those suppliers are not listed with Grameen phone. They have to submit quotation and face negotiation GP accept at least three quotations for its smooth operation. When three quotations are offered same then GP thing about cost effectiveness finally one is selected for ordering purpose.

So the user department’s (PR) and receiving materials has some steps. All steps are called Procurement process. If the Procurement is from local vendors then it is local procurement.

RECOMMENDATION

Purchase order issue: Purchase order issue is one of the steps of the procurement process. In this step the procurement personnel are involved. I saw in my observation some problems of the issues of PO. When GP issue the PO for procuring materials then sometimes it do not in detail on materials information .That is why GP have to face such difficulties with user departments. Executives do not mention the good specification of product. I think it’s a great problem of procurement. I want to emphasise some points for smooth operation which should be considered.  As sample as is consistent with exactness, but so specific that a loophole with not allow a bidder to evade any of the provision and thereby take advantage of buyer.  Identified, when possible, with some brand or specification already on the market. Special goods are expensive.  Capable of being checked. It should describe the method of checking which will govern acceptance or rejection, A specification which can not be checked is of little value and where checking methods very in accuracy, only confusion can result.

 Reasonable in its tolerances. Unnecessary precision is expensive.  As fair to the seller as possible.  Capable of being met by several bitters or the sake of competition.  Clear. Misunderstanding is expensive. Negotiation: Negotiation with the vendors is a special part of procurement process. in this section procurement manager must be honest. Negotiation process provides a legitimate and ethical means for the buyer and seller, through give and take, to eliminate unjustified of unnecessary increment of cost. It should not be construed as a means for stripping the vendor of a fair profit or an opportunity for extracting unreasonable concessions. In reality the most successful negotiations are satisfied to both sides and which provide the frame work for longtime mutually beneficial relationship. In my opinion that sometimes GP practice Haggling policies in negotiation with bidders which obviously frowned to me. This practice is only for short time but GP needs to build up long term advantage to gain profit after observing the total negotiation of GP I find out some points which should be considered in negotiation session for GP.Those are given below.  Negotiation at home when possible. Isolate members of the selling team by seating buying members between them to break up their attack.  Negotiation with those who can make concessions.  Remain silent at time . Often greater concessions result from a sellers fear of losing business. Vendors may talk themselves into a better settlement than expected.  Know what expect to gain by negotiation and keep our target in mind. Analyse the amount of “give” the vendor can reasonably be expected to have.  Plan ahead. prepare the agenda to advantage and brief team members beforehand to be sure none of them tip our hand or give in or a point before we do.  Negotiate for the long pull-not the short-sighted advantage which may backfire at the first turn of economic conditions.

 Be confident of facts presented. Don’t use information that may have to acknowledge as wrong.  Use new techniques such as the learning curve and price analysis.  Divert attention if the negotiation hits weak points . Shift the strategy of attack to minor points which may later concede.  Enlist the aid of specialists to help evaluate tooling and other special cost. purchase research will help supply basic data for negotiating in depth.  Always be fair. After observation the following table is brief recommendation: Area PO

Current situation

Problem

i) Lengthy process

Impact

Urgent cases are not Slow

(Purchas

covered

e Order)

delivery date and

issue

time. ii)

Sometimes It

creates

product specification problem is not clear iii)

within operation.

n in Automation system should be followed.

major Late

for

Recommendatio

in We

should

user operation for sincere at clerical

department. detail Sometimes

smooth business. it Decrease

level and adjust with PR. We

should

agreement are not creates

Company’s

update according

updated according to misunderstanding

good will.

to vendors.

vendor.

with vendors.

Sources

Only one source are It affects in price It can create We should justify

of supply

practiced

for determination.

some problem other

procurement in some

in purchasing then

cases.

process.

Negotiat i)

Vendors fell uneasy Temporary

sources take

purchase decision. We should think

ion

Some

situation an thinks not getting advantage

at long

purchase

manager proper amount in the

of advantage.

takes haggling policy selling product. in procurement. ii) Code of ethics is Increase not followed always.

cost

long-run gain.

vendors Temporary

misunderstanding.

We should build

advantage

in long-term

purchasing. Vendor

Sometimes we donâ&#x20AC;&#x2122;t They are not clear Increase

Relation

furnish

ship.

information to the vendor

complete for transaction.

relation

with

vendors We should clear

misunderstand cut and definite ing.

shape.

through

Purchase

samples, blueprints. we are not sincere to Lack

Record

record purchase file .

File.

run

proper Manager

evidence to follow not post purchasing.

can We should take make extra

care

for

decision form recording files. post purchasing.

Purchase

Sometimes

outdoor It is the matter of It can affect in We should recruit

Personae fresh incumbents are time and cost for productivity. recruited.

train personnel.

training.

CONCLUSION

Procurement department is the most important of GP. Specially profit maximization depends on this Department. GP is doing will among other mobile operators obviously it is praise worthy of right procurement process. It has an experienced team. They have also

better understanding with one another and doing for GPâ&#x20AC;&#x2122;s well being. By dealing with different vendors by using companyâ&#x20AC;&#x2122;s good will and our talent we are achieving companyâ&#x20AC;&#x2122;s target .We have better co-operation with other divisions for smooth operation. If we practice this process of procurement I think GP will go so far which is not imaginable. We are proud for GP because it is still market leader in telecommunication sector in Bangladesh.

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