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]