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Introduction: There are currently six (6) mobile operators companies in Bangladesh. Banglalink is one of
them. It is the second largest cellular service provider in Bangladesh after Grameenphone. As of
November, 2009, Banglalink has a subscriber base of 12.99 million. It is a wholly owned
subsidiary of Orascom Telecom.Banglalink had 1.03 million connections until December, 2005.
The number of Banglalink users increased by 257 per cent and stood at 3.64 million at the end of
2006, making it the fastest growing operator in the world of that year. In August, 2006,
Banglalink became the first company to provide free incoming calls from BTTB for both
postpaid and prepaid connections. On August 20, 2008, Banglalink got past the landmark of 10
million subscriber base. Banglalink entered start the market with a promise of making mobile
phone affordable for people. There are large populations in Bangladesh. When banglalink didn’t
enter to purpose in business of Bangladesh very few people used mobile phone for
communication. So, banglalink tried to connect large number of population. Which were outside
the attach of communication. Banglalink succeed to perform its purpose. Banglalink was the first
operator to introduce a flat rate for all call and thus such way, banglalink has helped middle,
lower- middle and lower class people.
Background of Banglalink:Sheba Telecom (Pvt.) Ltd. was granted license in 1989 to operate in the rural areas of 199
upazilas. Later it obtained GSM license in 1996 to extend its business to cellular mobile, radio
telephone services. It launched operation in the last quarter of 1997 as a Bangladesh-Malaysia
joint venture.
In July, 2004, it was reported that Egypt based Orascom Telecom is set to purchase the
Malaysian stakes in Sheba Telecom through a hush-hush deal, as Sheba had failed to tap the
business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and
Bangladeshi partners. An agreement was reached with Orascom worth US$25 million was
finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout
and because of the feud.
The main reason for the undercover dealing was the joint venture agreement between the
Bangladeshi and the Malaysian partners, which dictates that if any party sells its Sheba shares,
the other party will enjoy the first right to buy that.
Integrated Services Ltd. (ISL), the Bangladeshi partner, was being ‘officially’ shown as
purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15
million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's
liabilities.
In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba
Telecom (Pvt.) Limited (“Sheba”). It was acquired for US$60 million. Sheba had a base of
59,000 users, of whom 49,000 were regular when it was sold. Afterward it was re-branded and
launched its services under the “Banglalink” brand on February 10, 2005. Banglalink’s license is
a nationwide 15-year GSM license and will expire in November, 2011.
In March, 2008, Sheba Telecom (Pvt.) Limited changed its name as Orascom Telecom
Bangladesh Limited, matching its parent company name.
Nature Type and Size:
Nature of operation:Banglalink GSM Ltd. provides mobile telephony services in Bangladesh. It offers prepaid and
post-paid mobile connection services. The company also provides various value-added services,
such as call forwarding/divert, call waiting/call holding, call barring, caller line identification
presentation, voice mail, short messaging, ring tone and logo downloads, conference call, picture
messages, and instant recharge. The company was founded in 1998 and is based in Dhaka,
Bangladesh. Banglalink GSM Ltd. operates as a subsidiary of Orascom Telecom Holding S.A.E.
Banglalink GSM Ltd. was formerly known as Sheba Telecom Pvt. Ltd. As a result of acquisition
of Sheba Telecom Pvt. Ltd. by Orascom Telecom. Banglalink continued to invest heavily in
network enhancement throughout 2008, totaling about Tk 3,000 crore, the highest in the industry
during the year and bringing up the total investment till date to over Tk 7,000 crore. Banglalink
also strengthened the value proposition to its customers, by addressing one of the key core
strengths - its customer care service, regarded in many aspects to be the best in the mobile
industry of Bangladesh.
Type:Banglalink is a subsidiary private limited monopoly telecommunication company. Its status is
operating. Banglalink Telecom sector of Bangladesh has been flourished since the last decade as
many national and multi-national operators entered into the industry. To have a brief idea on the
existing telecom industry of Bangladesh, some relevant information of the telecom companies
have been compiled here. Wholly owned subsidiary of Egyptian Orascom Telecom. In
September 2004 Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom
(Pvt.) Limited
(“Sheba”). Banglalink’s license is a nationwide 15-year GSM license that expires in November
2011.
When Banglalink entered the Bangladesh telecom industry in February 2005, the scenario
changed overnight with mobile telephony becoming an extremely useful and affordable
communication tool for people across all segments.
Within one year of operation, Banglalink became the fastest growing mobile operator of the
country with a growth rate of 257%. This milestone was achieved with innovative and attractive
products and services targeting the different market segments; aggressive improvement of
network quality and dedicated customer care; and effective communication that emotionally
connected customers with Banglalink.
Banglalink is today the 2nd largest mobile operator in the country and recently celebrated with 1
crore customers. This has been achieved in just three and a half years.
No 0f employees: Banglalink has over 5000 employees.
Ahmed abu doma is CEO and MD of Banglalink.
Shibly Zaman- Head of Market Development
Sharifur Rahman- Optimization Engineer
Saydujjaman, PMP- Billing Asst. Manager (IT)
Kazi Imroze Sakib- Core Network Optimization Engineer
Madhubanti kabir- HR Senior Manager
New Hires and Recent Promotions at Banglalink Mohammad Rukunuzzaman- NSS Assistant
Manager was NSS Senior Engineer, NSS O&M.3 months ago Tyseer Amin-Organizational
Development Senior Executive was Organizational Development Executive.
Executive 10%, Engineer 8%, Zonal Sales Manager 5%, Senior Engineer 5%.
Revenue:
Banglalink revenue up by 29pc
Mobile phone operator banglalink earned revenues of Tk. 1,183 crore at the end of first half
2009, which is an increase of 29 per cent compared to the same time last year.
Its subscriber base increased steadily and reached 11.04 million at the end of June, which is a
17 per cent increase compared to the same time last year.
The market share of banglalink also went up to 23.7 per cent in the first half of 2009, as
compared to 21.6 per cent during the same time last year, a news release said.
Orascom Telecom Holding, the holding company of Banglalink, has recently announced its
financial results for the first half of 2009. In the first half of 2009, due to a withdrawal of SIM
tax subsidy by the major operators, the overall industry continued to experience a slowdown as
connection prices were increased, it said.
The ARPU has also reported an increase of 18 per cent in the second quarter compared to the
same time last year and an increase of 4 per cent compared to the previous quarter.
Orascom Telecom chairman Naguib Sawiris said, Banglalink continues to grow very well with
strong subscriber take up and stable ARPU; it is now stably EBITDA positive and has reached an
impressive 40 per cent plus margin in.
During the first half of 2009, banglalink succeeded to achieve an EBITDA of Tk417 crore as a
result of a decrease in customer acquisition costs and an increase in revenue.
In the first half of 2009, banglalink CAPEX investment was Tk. 347 crore million which brings the total investment till date to Tk.7,397 crore.
Managing:There are so many problems that faces baglalink telecommunication firm. Managing the all the
thing is very difficult. There are many things included in managing. These are all technical
system, bill payment, providing a complete mobile solution, taxes etc. To manage these things
there has some problem like economic, political problem etc. As with other incumbent
telecommunications service providers, the company has faced an increase in significant
challenges within its core fixed-line voice business. Deregulation has resulted in more
competition, and competing technologies such as Voice over IP (VoIP) and mobile voice are
eroding the overall market for traditional fixed-line voice services.
As a result, the company has sought to diversify its portfolio into areas where it can generate
growth and has a sustainable competitive advantage. One of these key areas for expansion is
Information and Communications Technology (ICT), which entails providing managed services
to enterprise customers, including managing enterprise IT infrastructure. The company’s
competitive advantage in this area is its ability to manage mission-critical network and IT
infrastructure, as demonstrated by its own network, which has delivered 99.999 percent
reliability and has never experienced an outage. The company also has strong existing
relationships with most of top enterprises throughout its existing core business.
Although the company had been delivering ICT services to large enterprises since 2001, these
were custom services that were costly for both the company and its customers. In 2006, with its
existing enterprise customers demanding lower prices and smaller mid-market companies
looking to procure similar services, the company decided that in order to grow revenues and
profitability it needed to move to a standard model which would be acceptable to its existing
large customers in return for cost savings. This would enable the company to extend into mid-
market companies as well.
The telecommunications company determined that it needed a service desk and asset
management platform that could support delivery of standardized, Information Technology
Infrastructure Library (ITIL)-compliant ICT services; measure and manage the delivery of those
services against the strictly defined service level agreements (SLAs) which its customers
were demanding; and help ensure that all work activity associated with
services was tracked and billed accurately.
In managing there are included many things.These are-
• Ensure the basic needs of the sponsored orphans as per UNCRC
clause-3
•Supervise and monitor the activities of Field Offices in different
districts.
Case Study & Analysis
• Prepare monthly and quarterly Reports
Acquiring capital:
Acquiring capita is another problem for banglink. But this is very important to earning money by
providing service. At present the servicing system of Banglalink is not fast. Increasing mobile
phone company is a great problem for banglalink to acquiring capital. Call rate is another
problem. Because many company offered lower call rate but banglalink do not do that.its a great
problem to acquiring capital. Banglalink initially failed to expand its network keeping pace with
increased number of subscribers. That’s why it is difficult to acquiring capital. Banglalink
invested heavily in 2007 continued that in 2008 for improving network quality. But they couldn’t
raise their capital. But now the managing comity decided that to increase their service by
including many package and by increasing network tower. Although the company had been
delivering ICT services to large enterprises, these were custom services that were costly for both
the company and its customers. In 2006, with its existing enterprise customers demanding lower
prices and smaller mid-market companies looking to procure similar services, the company
decided that in order to grow revenues and profitability it needed to move to a standard model
which would be acceptable to its existing large customers in return for cost savings. This would
enable the company to extend into mid-market companies as well
FINDING BETTER MOBILE CUSTOMERS:Today, Banglalink holds 47% share of the mobile market, but only 35% of the revenue.
Vodafone’s current monopoly on W-CDMA (most phone makers have simply stopped releasing
models for Telecom’s CDMA) means it hogs most of the high-end consumer and business
customers.
The ex-state telco will finally have not just a single BlackBerry, but many BlackBerries and the
latest, hottest models. Finally, we’ll have Telecom phones with SIM cards. Nice. And at some
point, iPhone too (for RIM, Apple and others always favour more than one carrier, all networks
being more or less equal).
No guidance
So Telecom should do better in mobile. The only solid metric he’d offer
was that Telecom is aiming for 50% market share. If I were a
shareholder, I’d want much more detailed guidance than that
surrounding this make-or-break move. Certainly, the only way is up. In
its first-half result announced Friday, Telecom's mobile revenue fell 6%
to $399 million
Political and social problem:
When banglalink entered the Bangladesh telecom industry in February 2005, the scenario
changed overnight with mobile telephony becoming an extremely useful and affordable
communication tool for people across all segments. But now it faces so many problems because
of political problems. When change a government it faces so many problem like tax, changing
business plan etc. Other things are enhancing the efficiency of communication s with citizens
and other stakeholders. There also included social problem like containing costs while delivering
increasing more complex service and providing a consist higher level of customer service across
wide geographical areas. Sometimes government imposes extra VAT on Telecommunication
Company like in 2008 government impose extra Tax on SIM. AS a result the price of SIM was
increased. Corruption is another problem for telecommunication system. Some dishonest worker
also create corruption. Not only that, some foreign T.C company
Recommending suggestion to remove the problem
From the very beginning of men’s civilization man has been advancing toward perfection
through newer and newer inventioin.But corruption is the all time difficulty of any firm.
Managing the firm we see and understand some sector is corrupted. We take proper step but all-
time is not possible, we have to realize that we should be hard to control corruption.
To Business in Bangladesh, Banglalink face some political problem .Government includes extra
taxes on the SIM so we should to obedient to carry out the decision of government. Some years
ago in Egypt govt includes 225% vat on per sim in all companies. Then the income of Egypt
government increases this site. Almost 25% but when he rejected the includes taxes on the sim,
the income of government increased 35% we also face this problem .Also the call rate should
reduce.
Through Banglalink is subsidiary, Createch Group, an IBM Maximo value-added reseller
(VAR), the company decided to implement an IBM solution for service desk and asset
management to support its ICT outsourcing business. In fact, Createch extended the core IBM
Maximo platform to create a specific solution which delivered additional required capabilities,
and which was subsequently repatriated into the IBM Maximo portfolio as the basis for IBM
Maximo for Service Providers. IBM Maximo for Service Providers introduces new capabilities
specifically designed to support the delivery of managed services, including:
Billing functionality, allowing for multiple billing methods across managed assets and
services.
This gives managed service providers visibility into all of the costs of maintaining assets
and providing services, and offers customers complete transparency on their asset and
service usage.
Customer Agreements, providing SLAs, scope of service providing pricing and
entitlements.
Response Plans, including automatic assignment of appropriate personnel to handle
requests from specific customers, selection of relevant job plans and work tracking. This
helps to ensure that service providers respond consistently and efficiently to customer
requests and provide full visibility into the progress of the response to both the customer
and the managed service provider.
Multi-Customer Operation, providing complete segregation of customer data. This allows
multiple customers to be run on one IBM Maximo instance, reducing overall cost of
ownership to the managed service provider.
The IBM solution reduced the company’s cost of delivering service, significantly cutting
costs of producing reports. Billing procedures are faster, more accurate and more
streamlined. Fewer people are needed to process, review and correct customer bills. In
addition, the solution enabled the company to adopt Service Management Best Practices
(i.e., ITIL), which the market is demanding. The solution also enabled the company to
offer very flexible and per-use based pricing. Billings have also increased, and payment
is quicker. Customer satisfaction has increased because accurate information is resulting
in faster resolution of customer issues. In addition, the company can track service levels
being achieved and proactively fix problems. Customers can track service levels
themselves and like the self-service option. Reduction in costs due to streamlining of
operational processes. Increase in revenue and acceleration of payments. Enhancement of
customer satisfaction because of faster resolution of issues.
[N.B: All data collect from Internet and Banglalink Customer care]