Executive Summary

As we were assigned to prepare a term paper on Grameen Phone, we had prepared this report
based on the due topic. In this term paper we at first gave an overview of the corporate background
and corporate history of Grameen Phone. They have mainly four types of service offerings those are
Smile prepaid for the mass customers, Explore postpaid for the high income earners, Djuice for the
youth segment, Business solution for the businessmen and executives, Public Phone for the urban
low income segment, Village Phone for the Rural lower income segment and so on. Their product
designing and market segmentation was appropriate enough to meet the customers needs and wants.
Their all products perfectly match with their target customers income level, life style, profession. In
case of pricing they follow value based pricing. Their pricing strategy is also appropriate and
reasonable for their target markets income level. They also chose the right promotional tools to reach
the customers more quickly and efficient way. For example they set bit higher price for the Business
solution uses and explore users, as they are the higher income groups. They set bit lower prices for
the village phone and public phone, as they are within the lower income segments. They also chose
the right promotional tools to reach the customers more quickly and efficient way. Their distributing
systems were appropriate enough to reach their products to the target customers more quicker way.
They also provide some value added services. Those are sms based alert services , voice based
services, infotainment services, innovative services (like Cell Bazaar), message service, Customer
care related services and so on. We can also consider GP as a successful follower of the right
business trend. As in this globalized world customers are right now becoming more demanding, the
GP introduce all of their core services and value added services in such a way that they can fulfill the
highest demand of any customer groups. Overly we can consider the GP as successful telecom
service provider.

CHAPTER-1
(INTRODUCTION)
As our course Instructor, Ms. Sarahat Salma Chowdhury, Lecturer, Department of Business
Administration, East West University assigned this term paper to us as a part of the curriculum of the
course BUS101 offered us during the BBA program, we are submitting our due appraisal. This
project report is prepared on the topic Grameen Phone.

1.1 Objectives of the report:

The basic objective of this report is to write a short but informative history about Grameen Phone
and we have discussed about the recent activities and information on the company.
1.2 Specific Goals:
The Specific tasks to be accomplished have been outlined below:

Provide a short background of Grameen Phone

Reason for the creation of the Intellegent Queue Management System

Provide a basic understanding of how the system works

Highlight customer feedback- Both Positive and Negative

Provide ideas about their products and services that Grameenphone offers

1.3 Scope of the report:

This term paper is a comprehensive study of Grameen Phone, the top most telecom service provider
in Bangladesh. So we had much scope to collect necessary data from the primary and secondary
sources, analyze those and to prepare this term paper with our business knowledge that we have
gained from the respective business courses. This term paper reveals the overall scenario of Grameen
Phone. But yet after, we have tried to give an overview of the company.
1.4 Methodology:
Data collection for the term paper has emplyed both primary and secondary sources, which include:
Primary Sources:

Interviews with employees of Grameen Phone

Interviews with customers

Term paper guideline document

Went through the text, related journals, and also the companys respective websites.

Secondary Sources:

GP Annual Report 2009- Final

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1.5 Limitations:
This term paper was made under various stressful situations and thus to make it more easily we had
to make some adjustments. Still then there were some limitations. Those limitations are given below:

The knowledge was really limited as because we are inexperienced.

Time limitations in preparing the term paper.

We had the lacking of understanding many terms and conditions of many of the materials and
other related stuffs in the primary and secondary information.

Lack of Information about the various products and services of the companies.

Lack of maturity as we have made this term paper for the first time.

CHAPTER-2
(COMPANY BACKGROUND )
2.1 About Grameen Phone:
Grameenphone Ltd., the largest telecommunications service provider in Bangladesh, received its
operating license in November 1996 and started its service from March 26, 1997, the Independence
Day of Bangladesh. Now, after 12 years of successful operations, Grameenphone is the largest
mobile phone service provider in Bangladesh, with more than 23 million subscribers as of December
2009. The Company was successfully listed in November 2009 which was the largest IPO in the
history of the Bangladesh capital market. Grameenphone provides services to rural and urban
customers across Bangladesh, where mobile telephony is acknowledged as a significant driver of
socio-economic development, both for individuals and the nation.
Grameen Phone is actually a telecommunication service provider, right now successfully operating
in Bangladesh. Besides the communication they also provide other telecom related and value added
services. Grameenphone is now the leading telecommunications service provider in the country with
more than 20 million subscribers as of June 2008. Grameen Phone started their journey at the
starting of the year 1997. At November 28,1996 Grameen Phone offered a cellular license in
Bangladesh by the Ministry of Posts and Telecommunications. They launched its service on the
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Independence Day of Bangladesh at March 26, 1997. At November 5, 2006 after almost 10 years of
operation, Grameenphone has over 10 million subscribers. Presently, there are about 30 million
telephone users in the country, of which, a little over one million are fixed-phone users and the rest
mobile phone subscribers.
2.2 Share Holders and Corporate Governance:

The shareholding structure comprises of mainly two sponsor Shareholders namely Telenor Mobile
Communications AS (55.80%) and Grameen Telecom (34.20%). The rest 10.00% shareholding
includes General public & other Institutions.
Number of Ordinary Shares Percentag

SL Name of Shareholders

held

1
2
3
4
5
6
7
8
9

Telenor Mobile Communications AS

Grameen Telecom
Grameen Bank Borrowers Investment Trust
IDLC Finance Ltd. Portfolio A/C
AB Investment Limited IDA
IFIC Bank Limited
LankaBangla Finance Limited - Portfolio A/C
United Commercial Bank Ltd.
Grameen
Capital
Management
Ltd.
-

753,407,724
461,766,409
11,037,221
6,598,800
6,495,300
3,684,900
2,161,800
2,096,700
1,693,900

55.80%
34.20%
0.82%
0.49%
0.48%
0.27%
0.16%
0.15%
0.12%

10
11
12
13
14
15
16
17
18
19
20

Investors A/C
Rupali Bank Ltd.
Popular Life Insurance Co. Ltd.
Prime Bank Ltd. Investors A/C
Trust Bank 1st Mutual Fund
Union Capital Ltd. Investors A/C
ICB Unit Fund
The City Bank Ltd.
The Trust Bank Ltd.
Trust Bank Ltd. NRB A/C
Grameen One : Scheme Two
Peoples Leasing and Financial Services Ltd.
Total

1,283,800
1,234,400
1,158,100
1,064,200
1,059,000
975,800
975,600
894,300
891,800
872,800
799,700
1,260,152,254

0.10%
0.09%
0.09%
0.08%
0.08%
0.07%
0.07%
0.06%
0.06%
0.06%
0.06%
93.31%

Chapter-3
(Human Side Of Business)
3.1 Management:

The Management Team is the executive committee of Grameenphone managing the affairs of the
Company. The management Team consists of the CEO and other key leaders across the Company.
The CEO is the leader of the team. Management Team endeavors to achieve the strategic goals &
mission of the Company set by the Board of Directors. The Management Team meets on a weekly
basis to monitor the business performance of the Company.

3.2 Management Level:

Top Level Managers

Middle Level Managers

First line managers

3.3 Organizational Structure:

Board of Directors

Audit Committee

Treasury Committee

Human Resources
Committee

Health, Safety,
Security and
Environment
Committee

The subordinates, 1st line officers, engineers, technicians etc work under these committees.
3.4 Motivation And Leadership Style: Grameenphone phone is self motivated as a organization
and they follow the democratic leadership style. Thats why they are one of the most superior
telecom companies in the market.
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3.5 Training Program: GP does not offer a fixed variety of training programs. They offer training
programs in each and every different sectors of the company to train their employees so that they can
achieve their goals and targets. Training programs of Grameenphone has gained huge success to
accomplish their targeted goals in the recent years.
3.6: Number Of Employees: There is more than 5,500 people currently working in Grameenphone
as employees in different sectors like administration, finance, public relations, customer care,
marketing, management, Advertising, technical team etc.

Chapter-4
(Production and Marketing)
4.1 The Four PS:
The four Ps are actually the strategic weapons for the companies to develop and differentiate their
products, offer those to customers and satisfy their perceived value by providing superior value to
them. From the marketing point of view we termed those as Marketing Mix. If a company wants to
target a specific market and to provide a superior value it wouldnt be possible for them without
simultaneously formulating a general marketing strategy for that targeted market or that particular
segment. Since customer value is delivered by the marketing strategy, the firm must develop its
general marketing strategy as it evaluates potential target markets. Marketing Strategy is basically
the answer to the question: How superior customer value can be provided to the target market? The
answer to this question requires the formulation of a consistent marketing mix. The Marketing Mix
is actually the set of marketing tools the firm uses to pursue its marketing objectives in the target
market. The investigators and market experts classified those tools into four broad groups that they
called the four Ps of marketing: Product, Price, Place, Promotion. This marketing mixes or tools
are vividly described below.

4.2 Product:

A product is anything a customer acquires or might acquire to meet the perceived need. That means
Product is something that has as ability to provide a perceived value to the customers and customers
buy products or services to satisfy a specific need or to solve a specific problem. Customers are
generally buying need satisfaction, not physical product attributes only. For example if a person
purchase a soft drink, he actually purchased the satisfaction of his specific need that is thirst.
Simillerly when a person is purchasing a package of telecommunication service, he is actually
purchasing a solution to solve his communication problem. In the same way when a firm producing
cosmetics for consumers, in the factory they may manufacturing cosmetics, but in the store they are
actually selling hope.

4.3 Price:
Price is the amount of money one must pay to obtain the right to use the product or service. That
means it is the monetary value (to some extant psychological value) of the product the customers
must have to forgone to get the benefit of the product. One can buy the whole product or the
ownership of the product or a limited usage of the product. For example when a person is purchasing
a pen, he is purchasing a whole tangible product. When he purchasing an apartment, he is actually
purchasing the ownership of the product. When he rent or lease any product such as video, he is
actually purchasing a limited usage of the product. So based on the attributes, benefits and usage
marketers set the prices of their products.

4.4 Place (Distribution):

Placement or Distribution means making the product available where the target customers can buy
it. After producing a product a firm needs to find out the way how quickly and efficiently they can
send the product to their potential customers. This way of distributing or the way of sending or the
way of making the product available to the customer is called Placement or Distribution. After the
production if the product is not provided to the customers in time, then the product will lose the
reliability of the customers. Thats why the placement or distribution is important for the firm to
ensure the continuous sales and sustainable profit margin. For example the most popular and widely
used distribution channel structures for the consumer market are as follows.

Manufacturer

Manufacturer

Manufacturer

Manufacturer

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Consumer

Consumer
Retailer

Wholesaler
Consumer
Retailer

Wholesaler
Consumer
Retailer
Jobber

Figure: Distribution channel for consumer market

Among these several types of ways depicted above the firm has to chose the best way that will
enable them to serve their product to the customers within a very short time and at a least cost. For
example for door to door selling, mail order, telemarketing, TV selling, Internet selling the firm
dont need to maintain wholesaler or retailer they can provide this type of services directly from the
manufacturer to customer. This is also called Direct Marketing.

4.5 Product Mix:

Grameenphone is providing telecommunication services. As we know that service is different from
the product for its intangible attribute, it is bit difficult to show the products of a service provider. So
products of service provider could be shown by categorizing them from the perspective of service
offerings. The comprehensive line of products and services of GP are at a glance described bellow.

GP Smile Prepaid:

Target Market : Mass Customers

Product Type : Prepaid
Offering competitive tariff, easy
recharge
and
balance
cheek

GP Explore Postpaid:

Target Market : High Income Mass

and professionals
Product Type : Postpaid
Offering competitive tariff with

facilities etc

Djuice:

Target Market : Youth

Product Type : Prepaid
Focus on music, messaging and
community to appeal to the youth
Completely separate from the
Grameenphone brand

GP Public Phone:

Target Market : Urban Low Income

Segment
Product Type : Prepaid for calling
businesses
Low tariff appealing to use the
phone to generate businesses with
bonus on usage

feature such as unlimited internet,

flat call tariff, easy bill payment
facilities etc

GP Business Solutions:

Target Market : Business

Product Type : Postpaid & Prepaid
Customized
solutions
for
Corporations, SME and SOHO
businesses
Provides
closed
user
group
functionality, business messaging,
Blackberry
services,
Priority
Customer services etc

GP Village Phone:

Target Market : Rural

Product Type : Prepaid for calling
businesses
Created specifically to the rural
subscribers to generate income
from phone business through
subsidized tariff

4.6 Brief Description About The Products:

4.6.1 GP Smile Prepaid:

It is a simple prepaid package for mass customer with distinctive
features and offers. This package is basically to satisfy the
communication need of the middle class and to some extant lower
income earners. With the tag line Bring SMILE into your life they
designed this package to keep customers smiling. For example for mobile to mobile smile package
the start up price is BDT 490 with inclusive of BDT 60 talk time. It also offer lower rates, for
example SMILE subscribers can enjoy a reduced tariff of only tk 1.50/min (7am-12am) for all GP to
GP calls and tk 2/min to any other operator (24 hours) with SMS and other promotional offer.
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SMILE SMS: SMILE offers the opportunity to SMS at affordable rates. One can also enjoy
F&F SMS at the lowest rate. Your F&F number is your SMS F&F.

Economy ISD rates: SMILE subscribers can easily call friends or families staying abroad
just by dialing 012 followed by desired numbers and talk at economy rates (012 + desired
number). Dial 012 followed by the country code, area code and your desired number for
enjoying low international call rate.

Caller ID: It is a basic feature of SMILE that allows one to view the number that is trying to
reach him or her.

Call Waiting: It enables one to receive a second call while he is already talking to another
person. When his call waiting feature is activated (on his mobile), he will be usually notified
by a short beep sound. he can then either reject the second call or put the first caller on hold,
talk to the second caller and then return to the first call. Call waiting can be activated by
calling *43#, deactivated by calling #43# while its status can be checked by calling*#43#.

Call Conference: It is a unique & beneficial service that enables one to interact with
multiple people at the same time. It allows him to make up to 5 calls at once and connect all
the calls so that everyone can talk to each other. This feature is handset dependent.

Call Divert/Call Forwarding: One can divert/forward his incoming calls to any other
number when his mobile is off, busy, cannot answer phone or out of coverage area.

Call Barring: Depending upon ones mobile handset, he can restrict any unauthorized use of
his mobile phone (incoming and outgoing).

4.6.2 GP Explore Postpaid:

It is a simple postpaid package for high income mass customers
and professionals with distinctive features and offers. This
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package is basically to satisfy the communication and business related needs of the high income
earners and to some extant middle class mass. With the tag line Xplore the joy of doing more they
organized this package to let the customers discover the pleasure of doing much more. It is packed
with a treasure of new features and facilities that keeps customer in touch with their loved ones and
gives them access to unlimited information and entertainment. Xplore Postpaid is available with
Mobile to Mobile with BTCL connectivity & ISD. BTCL incoming is absolutely free in xplore. All
new xplore subscribers will now get EDGE P3 (12am-8am) and MCA (Missed Call Alert)
subscription free for the fist 3 months, along with 100 SMS free of charge over the same period.
Customers can get started with xplore Anywhere Anytime! Xplore Postpaid has come up with a very
attractive and competitive tariff. For example the xplore subscribers can enjoy a tariff of tk 1.30/min
to any mobile with four FnF at tk 0.50.
customers. Thank you benefits for the Xplore subscribers are of the following types:

Thank you discount

Discounts from Thank you Partners

Crown Membership Benefits

a. Thank you discount:

Grameenphone values its relationship with its subscriber all the time, the relationship that has
developed throughout the years and has helped us to reach the number one spot. As a sign of
gratitude Grameenphone brings a special gift, thankyou'.

As part of thankyou, customers will receive a thankyou discount, depending upon their usage
and length of the relationship with Grameenphone, every month. thankyou discount is
calculated on their outgoing voice calls only (excluding BTTB charges, roaming charges,
monthly line rent, VAT & other taxes)-see the below matrix

The discount that they receive in any month will be displayed in the Post-paid bill of the next
month. They can get up to Tk.1000 worth of monthly discount.

b. Discounts from Thank you Partners:

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At the thank you Partner outlets, any eligible Xplore subscriber(activated for more than 180 days can
enjoy discounts on purchase.

c. Crown Membership Benefits:

Special Discounts at various exclusive local and International thank you crown partners

Thank you partner discounts at more than 300 thank you partner locations

Priority at 121

Special discount on SIM replacement

Preferential treatment in GPC/CMC

Apart from that the subscribers can enjoy FnF services with convenience recharging process by
scratch card, flexi load and balance transfer. Along with all the benefits, all new and existing
customers of GP xplore postpaid will continue to enjoy quality network and best customer service
through edge package and GSM technology. Some such types of services are described below.

Caller ID: It allows GP subscribers to view the caller's ID before answering the call.

Call Waiting: It enables subscribers to receive a second call while they are online with
another call. When their call waiting feature is activated (on their handset), they will be
usually notified by a short beep sound. They can then either rejects the second call or put the
first caller on hold, talks to the second caller and then return to the first call.

Call Conference: It allows them to make up to 5 calls (max) at a time and connect all the
calls to make a conference call. This feature is handset dependent.

Call Divert: It allows them to divert the incoming calls to any mobile number or BTTB
number.

Call Barring: It allows them to restrict any unauthorized use of their mobile phone by
imposing restrictions on certain types of calls (incoming and outgoing). This feature is also
handset dependent.

4.6.3 Djuice:

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Djuice is a particular market niche of Grameenphone. It is also a simple prepaid package mainly
designed for the youth market segment. This package is basically organized to satisfy the
communication and entertainment need of the young generation. Grameenphone successfully
launched djuice in April 2005. This was the first time in Bangladesh that a Brand totally dedicated to
the youth, was launched by a mobile service provider. With their separate taglines Duniar Shukh ,
Welcome to Djuice dunia they actually invited the youth group in a different world of
entertainment where they can enjoy the latest and coolest music, movies, mobile games, sports, and
so much more. From this package they can also download the hottest & most happening wallpapers,
logos, screensavers, themes, ringtones, welcome tunes, video tones, true tones of their favorite music
albums, groups & celebrities, movies and stars, sports actions, events and icons, and so on. They can
get those services either from the djuice website www.djuice.com.bd, wap.djuice.com.bd or by
sms short code 3030. Today the young generation are more likely to linked with the world best
technologies and amusements. To facilitate them one step ahead GP introduced this djuice.
Djuice offer its subscriber lots items with a convenient start up offer with a convenient call rate.
For example its start up price is BDT490 with two FnF and sms at 0.50 and allows djuice to djuice
at the rate of BDT 0.75/min from 7am to 12 pm. As like thank you of Smile package djuice offer a
separate package titled as Xtra Khatir. As like thank you bonus, depending on their usage ,djuice
users can get some extra discount at the end of a certain period.

4.6.4 GP Business Solutions:

This package is actually a combination of prepaid and postpaid
function to facilitate the business related needs of the
corporations and small or large business organizations. The
corporations and business organizations need to communicate among themselves for various kind
business related issues like taking information, make contractual agreement, place purchase order,
13

ensure shipment and so on. To facilitate all types of business activities GP designed this business
solution package to meet up the need of their corporate clients. They mainly provide the business
organizations the following services.

Call services: If a businessman or an office executive go anywhere in the country, he will

always be connected with his colleagues through his Business Solutions connection. Business
Solutions has a wide network coverage for assured connectivity and the technical expertise to
ensure clients business moves as smoothly as they want it to. They have full access to all
mobile, fixed phone and international numbers; so sit back and enjoy call features that make
it more than just a call. Clients can also Get free minutes to talk with your near and dear
ones, based on your committed usage. This unique plan for Business Solutions postpaid
connections allows subscribers to commit a minimum usage per month; based on your
committed usage, you can enjoy free minutes to talk to your F&F and CUG numbers. For
example, if you commit Tk. 2,500 usage per month, you will enjoy a special flat rate and 250
free minutes of talk-time.

F & F numbers: Enjoy special tariffs for 3 special numbers (F&F) of customers choice
24 hours a day on both pre-paid and post-paid connections.

Business Hour rate: Experience cost effective tariffs during clients busiest time of the
day. Make their calls at lower rates from 9am till 6 pm.

Closed User Group (CUG) rate: The Closed User Groups (CUG) feature gives clients
lower call rates when they make calls within their defined company connections. Certain
conditions apply for this feature.

International Roaming: Clients can get a connection designed with extended roaming
service; Grameenphone has agreements with more than 115 countries worldwide so they
are always available at their own number while traveling abroad. Take the privilege of
availing the service with zero security deposit as a Business Solutions subscriber.

14

Call divert: This service allows them to automatically divert incoming calls to another
mobile number whenever they are unable to receive a call, too busy, or simply
unreachable.

Messaging Service: Grameenphone provide special messaging service to the

business

people. Their various messaging services allow clients, ways to communicate smarter, faster,
more efficiently and more cost-effectively on the going concerns. They provide such services
like SMS, Voice SMS, Voice Mail, MMS, Cell e-mail, SMS Plus, SMS Banking, SMS
Information Service, Mobile profiling etc. To their business class clients.

Internet and data service: Grameenphone also provide internet and data exchanging
services to its corporate clients. They can get Internet access on their mobile phone and also
get mobility and access to the net everywhere they go. The major internet services of GP are
as follows.

High Speed Data Service: Grameenphones high speed mobile coverage, powered by
EDGE, lets the clients enjoy a series of services like e-mailing, downloading, and browsing.
If they move out EDGE coverage the phone automatically switches to GPRS, ensuring
connection without any interruption. Moreover, clients EDGE-enable phone functions as a
wireless data modem when they connect it to any laptop.

Mobile data transfer: Clients can easily transfer data to share among their colleagues,
access servers when moving in a remote area, and even connect to the Internet from their
own PC by using GPs mobile network.

Mobile Fax: Its just like having clients own traveling office! All they need is a
computer notebook, their business solutions mobile phone, a cellular data card and a
connector. they are ready to send faxes as well as retrieve it from any available fax
machine.

Mobile Internet: With this service clients can access a number of mobile Internet sites
such as yahoo mail, hotmail, google, msn, for news services, travel information, sports
updates and much more.
15

Mobile E-mail: GPs mobile e-mail is designed such that clients are never far from their
business. Access their office e-mail, corporate address book, and view business
appointments. Mobile email lets them use their mobile as they would their computer.

BlackBerry Service: Grameenphone's Business Solutions, the complete communications

solution for business, introduces BlackBerry services in Bangladesh for Grameenphone
subscribers. BlackBerry smartphones enable users to access the proven BlackBerry
wireless services with support for email, phone, internet, instant messaging, organizer and
much more. Users can discover a larger life with BlackBerry smartphones. It is much more
than just work and email. It helps users connect with friends, family and others and gives life
a much needed balance. This service simply provide the users the additional services of
Mobile Email, Brows, Instant Messaging, GPRS Roaming.

International Roaming Service: International Roaming (IR) is a service that allows

subscribers of one mobile network to use his/her own phone (number & handset) in foreign
operators networks while traveling outside home country. It depends on Inter-operator
agreement and handset compatibility.

The roaming services provided by GP can be described from two perspective. A person going
outside Bangladesh or another person who is coming to Bangladesh can get two different types
of services from GP.

Going outside Bangladesh:

Coverage in more than 320 operators' networks in 117 countries.

EDGE/GPRS Roaming Services (Email, Internet Browsing & Download, MMS)

No Use, No Pay - NO Monthly Access Fee.

Zero' Security Deposit for Corporate & Special Subscribers*

Industry Lowest Security Deposit for Individual Subscribers*

Free Ownership Transfer (if required for IR subscription)

Free Monthly Itemized Bill

IR Usage, Bill & Payment Information through SMS from home & abroad

IR Bill Payment through SMS - Anytime & Anywhere

16

IR Hotline accessible both from home (121) and abroad (+8801700100121)

Useful information through Push-Pull SMS

Direct Communication with each IR subscriber for individual queries and

complaints

Access to 24/7 GP Health line Medical Consultation service number from abroad
(+8801700100789) **

Coming to Bangladesh: Whether a person trip to Bangladesh is for business or for

pleasure, he/she will appreciate the ease and convenience of using GrameenPhone
International Roaming services. As we have mentioned earlier, being the market leader
in mobile telecommunication & the prime International Roaming service provider in
Bangladesh, GP has 325 GSM partner operators in 117 countries in 6 continents and 90
EDGE/GPRS partner operators in 46 countries (As of Oct 2007). Under GP
international Roaming service package one can enjoy the following facilities.

He can enjoy widest Network Coverage & Best Quality Services

Can get EDGE/GPRS Roaming Services (Internet, Email, MMS, WAP etc.)

Can use GSM Roaming for Prepaid Usage

Local Direct Dial Service

Exclusive Hotline 121 & Dedicated Customer Management Team

Useful Information through Welcome SMS & Special Numbers

Handset under GP Nokia Campaign: Grameenphone recently-launched Nokia enterprise

solutions devices E66 & E71 which have been bundled with Grameenphone Business
Solutions connections, where both prepaid and postpaid customers can enjoy a special
bundled price and usage-based monthly benefits. This package works as a perfect business
solution for executives and entrepreneurs on the move and trying to maintain a balance
between life and work. This is also an attempt to staying close to customers by providing
devices with the core service.

4.6.5 GP Village Phone:

17

This is a special facilitating Package provided combinely under Grameen Banks Micro Credit
Program and Grameenphone. This package is designed to facilitate the calling businesses in the rural
areas of Bangladesh. It is also an offer to the small investors to earn generate income from phone
through subsidized tariff .Personal voice communication beyond hearing
distance is simply not possible today from 90 per cent of the 68,000 villages of Bangladesh. The
Village Phone (VP) program established by Grameen Telecom provides an opportunity for universal
access: according to Grameen Telecom, a person may not own a telephone but he/she should have
access to a telephone within a ten minute walk.
The Village Phone initiative was developed by combining the Grameen Banks expertise
in village-based micro-enterprise and micro-credit with the latest digital wireless technology.
Grameen Telecom (GTC) is a non-profit organization that forms part of the
Grameen Bank family of organizations, and it focuses exclusively on the deployment of
the Village Phone program in rural parts of Bangladesh. GTC buys airtime in bulk from
GrameenPhone Ltd. (GP), a for-profit corporation holding a nation-wide license to
operate and maintain a mobile cellular network throughout the country. Bulk airtime purchasing
from GrameenPhone Ltd. enables GTC to pass on savings to the Village Phone (VP) operator. GTC
owns 35% of the shares of GrameenPhone Ltd., and plans to have controlling interest in
GrameenPhone Ltd. in the near future.
The Village Phone is a unique undertaking that provides modern digital wireless telecommunication
services to some of the poorest people in the world. A Grameen Bank member (most often female)
purchases a phone under the lease-financing program of the Bank and provides telephone service to
people in her village. Each Village Phone operator is responsible for extending the services to
customers for both incoming and outgoing calls, collecting call charges, remitting payments to
Grameen Telecom, and ensuring proper maintenance of the telephone set. Repayment of the loan for
the phone set is processed through the existing loan granting and collection procedures of the
Grameen Bank. GTC prepares monthly bills for the airtime charges for each phone, and Grameen
Bank managers at the community level collect monthly payments from operators, in person, at the
village level.

She must have a very good record of repayment of Grameen Bank loans;

18

She should have a good business, preferably a village grocery store, and have the spare time
to function as the VP operator. Initially, this may be a side business and eventually switch
over to telecom business on a full-time basis after services and revenue justify a full-time
commitment.

She should be literate or at least she must have children who can read and write.

Her residence should be near the centre of the village.

4.6.6 GP Public Phone:

This package is designed to facilitate the prepaid calling business in
the lower income segment in the urban areas of Bangladesh. The
person those who dont have cell phones this package is for those to
give them a access to GPs telecommunication service. This package
is also to give the prepaid users the facility of recharging by scratch
card or flexi load through the authorized retail outlets of
Grameenphone through out the country. For example a person is taking any prepaid service from
GP .To continuously take this service from GP he/she needs to purchase some additional services
such as scratch card of flexi load etc. And to provide this services to the customers or the prepaid
service users Grameenphone needs to appoint their additional service providers (or we can say
authorized retailers) throughout the country so that their prepaid (to some extent postpaid also)
service users can easily purchase the additional services from them. The Interested small or medium
term investor can earn profit from this package through subsidized tariff.
The criteria managers use to select the dealers is mainly as follows.

The investor must have a certain or required amount of capital.

The investor should have a good business experience or background, professional or business
related skills and have the spare time to function as the dealer or operator. Initially, this may
be a side business and eventually switch over to telecom business on a full-time basis after
services and revenue justify a full-time commitment

They should be literate enough to conduct the business functions.

The investor must have to place the valid and true documents while applying for dealership.

19

After analyzing all of the above factors the managers give dealership to the interested investors. The
investors can do this business with the necessary brand or promotional elements (like poster, banner,
leaflet etc) of GP. The authority of GP will charge a commission from their business.

4.6.7 Other Value Added Services:

SMS Based Alert services :

Miss Call Alert
Namaj Time Alert
Cricket update alert

Infotainment service:
Welcome Tune
Ring Tone
Downloading Features

Message Services:
Text Message
MMS (Multi Media Messaging)
Other Business SMS

Voice Based Services:

Namaj Timing
News Update
Voice SMS

Innovative services:

Cell Bazar (The mobile store)

24 Hour Health line
Bill Payment Service

Customer Care Related Services:

Solving Problems of the customers

through phone call
Providing all the services through
retail center

4.6.8 SMS Based Alert services :

1. Miss Call Alert: Subscribers can be notified by SMS of the last 3 calls they had missed
when their phone was unreachable. The alert notifies registered subscribers of the service
about the calls when they were unreachable due to any of the following reasons:

Handset switched off

Out of network or coverage area

No charge in battery of mobile phone

20

When subscribers switch on their phones, they will receive notification of last 3 calls via
SMS. To subscribe, one has to send to 6222. To unsubscribe, one has to send to 6222.
2. Namaj Time Alert: To get daily namaz timings through push-pull SMS customers can type
"namaz" and send it to 2200. In return they will get the namaz timings for that day and will
alert the user at the due time with an sms.
3. Cricket Update Alert: Users can get cricket updates in their GP mobile phone by
subscribing to cricket alert service. To get the alert service, they need to type "cric on" and
send it to 2002. To unsubscribe from the service, type "cric off" and send it to 2002. They
will get SMS alerts for fall of every wicket, milestones (like player or team 50s and 100s)
and match summary. This service is only for ODIs.

4.6.9 Voice Based Services:

1. Namaj Timing: GP provides daily namaz timings through IVR. Users need to dial 2200 to
listen to daily namaz timings. The previous service was alert but that one is when the users
want to know the schedule of Namaj they can use this service.
2. News Update: GP also provides news and sports update. Users have to dial 2000 to listen to
latest news (provided by bdnews24.com) and 2002 to get Sports Update (International
Cricket Matches and English Premier League updates).
3. Voice SMS: If the user wants to leave a special message, like a birthday wish or marriage
anniversary greeting for someone, Grameenphone's Voice SMS service can help him .Or
when he would like to send a message but the receiver may not be comfortable with using
SMS, then too, Grameenphone's Voice SMS service can help the users. When the user cannot
reach someone but would like to leave a message, Grameenphone's Voice SMS service can
help him there too.

4.6.10 Infotainment service:

21

1. Welcome Tune: Suppose the users is busy in any purpose. At that time some one calling him.
The user is so busy that unable to receive the call and want to make the caller wait for a
while. To do so he can set a special tune to make the caller wait. Grameenphone is right now
providing this special service from which the customers can select their tunes according to
their own choice. Users can let their friends listen to their favorite tunes every time they call.
Users can also record their own voice and play it for their friends. They either set one
common tune for all or customize a tune for individual callers.
2. Ring Tone: Ring tone is actually an alert to the user when some calls him or her. Previously
it was just a function of the hand set. But now a days with the emerge of technology and due
to different perception, different choices, different cultural norms, different impact of
reference group among the customers, ring tone is not just a tone. For this they have go to
wap.gpworld.com from their WAP enabled phone sets to download Poly Tones, True Tones,
MP3 Tones of hit Bangla, Hindi & English songs.
3. Downloading Features: GP World enables GP subscribers to get exciting mobile contents
like ring tones, wallpapers, themes, animations to customize their handsets & also enable
them to play fun mobile games. GP users can download these contents to their EDGE
enabled handsets from GPWorld (http://wap.gpworld.com/).

4.6.11 Innovative services:

1. Cell Bazar (The mobile store): Cellbazaar is a service from Grameenphone that allows
users to buy or sell anything over their mobile phone. If they want to sell something, they
have to post the information on Cell Bazaar through Grameenphone, and buyers will contact
them. If users are looking for something to buy, or a service (e.g., tutor), they can look for it
on Cell Bazaar and contact the seller directly. When buyers sees an item they like, they can
call the seller, get additional information, and meet the seller to complete the transaction.
CellBazaar is a platform for buyers and sellers to find each other.
2. 24 Hour Health line: Accidents or unexpected incidents can occur any time in our daily life.
Suppose a heart patient suddenly became seriously ill and the relatives could not understand
22

what should be done and there is no other source from where they can get Medicare
suggestions. At this moment they can take help from Grameenphone by just a call.
3. Bill Payment Service: Grameenphone's BillPay service brings a hassle free and secured
solution to pay Titas Gas and PDB electricity bills (PDB bills applicable for Chittagong and
Cox's Bazaar areas only).

4.6.12 Message Services:

1. Text Message: Users can send any text based short message or documents to one another. To
do so they have to go to handset message option, write new message, enter the recipient
mobile number and press send. One can send text message up to 160 characters to any
mobile number.
2. MMS (Multi Media Messaging): Multimedia Messaging Service (MMS) is an exciting way
for the users to share special moments such as birthdays, weddings and holiday pictures with
their loved ones. They can even send pictures and video clips to e-mail addresses and can
customize their messages with texts, pictures, animations, music, video clips (Up to 100 KB).
They can also record special moments and save it for the future - in their phone, e-mail inbox
or even mail it to another user.
3. Other SMS Related Services: Users can get information on updates of taheir bills and
telephone numbers to call ambulances, hospitals, blood banks, police stations etc. To do so
they have to type the following key word and send it to 2000 from message option from their
handset. They have to type ambulance' for Ambulance service, type police' for Police
service.

4.6.13 Customer Care Related Services:

Customers may have some personal queries or they may face problem while providing the services
to the consumers. To answer all the queries and to solve all types of questions Grameenphone
organized a special service. They established their own retail centers (including call centers and
customer care related centers) throughout the country. Form marketing point of view we can say, it is

23

an attempt to provide after sales service. Their customer managers are people just like customers
near and dear ones.

Customer Service Hotline: Today in a fast changing world, the role of the mobile phone is
increasing day by day; so are the demands of our subscribers. Customer demands are no
longer confined to making or receiving voice calls only; rather with new value added services
being introduced, subscribers are trying something new everyday. Marketers are now trying
to fulfill that need of the customers. Trained customer service agents of GP are within easy
reach; ready with personalized support related to all of their products and services. Their
trained call center professionals are available round the clock, 7 days a week, 365 days a
year. By simply dialing 121/ 121 15 (to talk directly with our Customer Service Agent) users
can find the answers to any query in the cheapest way. GPs customer managers are always at
hand to listen to any kind of complaints regarding our products and services . They provide
information related to the different products and services offered by GP, to help users make
the purchase decision that is most suitable to their communication needs.

Customer Service point: Grameenphone established more than 600 Grameenphone

customer service desks in 61 districts all over the country to make customer service available
to the subscriber. In these, desks Customer Managers provide service from Sunday to
Thursday from 10am to 6pm. This is an attempt to make their entire products and services
available throughput the country. It is a countrywide and full prove plan because from these
service points the customers can get any of their probable products and service solutions.

Complaint Management: While providing the call center and care related services
customers may remain dissatisfied with any of the products or services of the customers.
They may have some complains of request. To overcome all their complains and to run the
services smoothly, they introduced a special service called Complaint Management.
Complaint Management is just to handling queries, complain, requests on mails, faxes and
letters from customers.

4.7 Pricing:
24

Due to the functional and theoretical differences between the products and services the pricing
strategy for service usually bit differs than the products. As production cost is not that much involved
rather service fees are more important here, the value based and to some extant cost plus pricing is
widely used for services. As a telecommunication service provider the pricing strategy of
Grameenphone is described bellow.
4.7.1 GP Smile Prepaid:

Start-up
Product

price

Start-up Benefit

Inclusive of BDT 100 talktime.

Tk

20

Preloaded

Airtime

Tk 40 Bonus Airtime for any amount recharge within 31st day

Smile PSTN

BDT 590

of

activation

with

15

days

validity

Tk 40 Bonus Airtime for any amount recharge within 61st day

of activation with 15 days validity.
i.e. Total BDT 100.

SMILE subscribers will enjoy reduced tariff of only Tk 1.50/min (7am-12am ) for all GP to GP calls
and Tk 2/min to any other operator (24 hours). A call to a BTCL number will cost Tk. 2. SMS to any
GP number and to other local operator's number is Tk.1 and international operators is Tk. 2. Under a
promotional offer smile subscribers now can talk to any GP number only at Tk. 0.25/min from 12 am
to 7 am in the morning. 15% VAT will be applicable on all tariffs. SMILE customers will also enjoy
great Friends & Family rates through which they can talk at only Tk 0.25 per minute and SMS at
only Tk 1 to 3 Friends & Family number.
SMILE customers will enjoy recharge facility by scratch card or flexi load with recharging facility of
tk 10 to tk 5000. They can also transfer their balances ranging from Tk. 50 to Tk. 100 balance to any
other SMILE or djuice subscriber. The balance gives validity of three (3) days. The denomination for
the recharges are as follows.
25

Promotional validities in Flexi Load pre-paid recharges

Recharge Denomination

New Validity

Tk.10 Tk.299

30 days (Both incoming & outgoing)

Tk.300 Tk.5,000

365 days (Both incoming & outgoing)

Promotional validities in Scratch Card recharges

Scratch Card Denomination

New Validity

Tk.50

30 days (Both incoming & outgoing)

Tk.300

365 days (Both incoming & outgoing)

Tk.600

365 days (Both incoming & outgoing)

4.7.2 GP Explore Postpaid:

xplore Postpaid is available with Mobile to Mobile with BTCL connectivity & ISD. BTCL incoming
is absolutely free in xplore.
Connection type

Current Price

xplore Postpaid (M2M, BTCL, NWD, ISD)

Tk 800

All new xplore subscribers will now get EDGE P3 (12am-8am) and MCA (Missed Call Alert)
subscription free for the fist 3 months, along with 100 SMS free of charge over the same period. The
tariff rate for the xplore package is as follows.
Rang
e

Any Mobile F&F

BTCL (local/NWD) SMS Charge

26

24
Hour

Tk.1.30/min
F&F: Tk.0.50
Incoming: Free
4
Tk.0.25/min

F&F

GP
and
other
operators:
Tk.1
Tk.

Outgoing:
1.30/min

local

International: Tk.2.00

Line Rent: Tk.50/month (This fee too will be waived if the subscribers' monthly airtime usage
exceeds BDT 450). BTCL Incoming is absolutely free for Xplore. Users can enjoy ,1 sec pulse
from 1st minute onwards for all numbers except F&F, 60 sec pulse from 1st minute onwards
for F&F ,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.
Flexi Load for post paid: Users don't need to go to banks and stand in long queue to pay their
postpaid bill. They can pay bill through more than 15000 FlexiLoad Retailer all over the country.
Just go to your nearest FlexiLoad and pay any amount ranging from Tk 50 to Tk 50,000. The
denomination for recharge will as same as the prepid.

4.7.3 Djuice:
Start-up
Product
Djuice

price
BDT 490

Start-up Benefit

Inclusive of BDT 60 talk time.

BDT

20

Preloaded

Airtime

BDT 20 Bonus Airtime for any amount recharge within 31st

day

of

activation

with

15

days

validity

Tk 20 Bonus Airtime for any amount recharge within 61st day

of activation with 15 days validity.

27

i.e. Total BDT 60.

The special or distinctive offer of Djuice is its subscribers can enjoy a reduces tariff of Tk 0.75/min
from 7 am to night 12 am which is applicable for Djuice to Djuice connection. They can also enjoy
Tk 0.25/ min from night 12 am to morning 7 am and that is applicable for Djuice to Djuice or Djuice
to any GP number. They can also have SMS service at the rate of 0.5/sms. They can also use two
FnF numbers for their special purposes. The charge for FnF is Tk0.25/min for any two selected
desired numbers. The tariff plan of Djuice with start up price is given bellow.
One important recent modification is to note here that previously djuice service was without PSTN
and ISD. But now the PSTN and ISD services is also added with Djuice. The recharging and credit
transferring facility, designed and priced for djuice, is as same as the Smile Prepaid package of GP.

4.7.4 GP Business Solutions:

Call services: Among the call services except international roaming, all other services

(FnF, business hour rate, CUG) are charged based on the usage of the services by the
corporate clients, size of the firm, type of the business and so on. But they have a specific
offer for the business users. The tariff plan for the business users are given below.

Type of call
GP GP
GP Other
FNF
ALL

TARIFE/MIN (TAKA)
Business Hour

Non Business Hour

09:00am-05:59 pm
06:00pm-08:59am
1.00
1.50
1.20
1.50
2 GP numbers and 1 other subscribers number
INCOMING Free
Free

(Including BTTB)

28

GPRS/EDGE

Same as Post-Paid (without package 4)

International roaming: charges for International Roaming sequentially given

bellow.

Going outside Bangladesh: To get this roaming service the user at first has to

open a security deposit. There are two options for that type of security deposits.
Those are ..

*Option 1: BDT 0.00 (both Bangladeshi & Foreign Nationals) + Mandatory Auto
Debit

*Option 2: USD equivalent to BDT 20,000 (for Bangladeshi Nationals) / BDT 50,000
(for Foreign Nationals) + Optional Auto Debit
GP currently accepts any locally or internationally issued International Debit or
Credit Card (Subject to change anytime) for International Roaming related
transactions (Security Deposit / Bill / Advance Payment etc.). The Credit Limit for
using GP International Roaming service will be:
= The International Roaming Security Deposit + BDT 1000
When subscribers accumulated IR usage (Billed Amount + Unbilled Usage) gets near
to their Credit Limit, they will be notified through SMS and will be requested for bill
payment. If their accumulated IR usage
(Billed Amount + Unbilled Usage) exceeds the Credit Limit, their IR service will be
barred automatically

Coming to Bangladesh: An outsider coming to Bangladesh taking the

International Roaming services of GP, will be charged in the following way.

29

Call Type

Charge Per Minute

Pulse

Incoming Local Call

BDT 25

60/60

Incoming International Call

BDT 25

60/60

Outgoing Local Call (Mobile to Mobile) BDT 25

60/15

Outgoing Local Call (Area)

BDT 25 + Land Part Existing60/15

Tariff

Outgoing NWD (Nation Wide Dialing)BDT 25 + Land Part Existing60/15

Call
Tariff
Outgoing ISD (Inter State Dialing) Call BDT 25 + Land Part Existing60/15
Tariff
Hotline (121, 2007)

BDT 4

60/60

SMS Outgoing

BDT10

NA

SMS Incoming

Free

NA

EDGE/GPRS (Uplink-Downlink)

BDT 4 / 10 KB

NA

For receiving International calls, Call forwarding charge (from your home country to
Bangladesh) is not included here.

Tariff shown here is exclusive of any tax or VAT

Zones
Present Tariff
Local Calls (Multi Exchange Areas like Divisional City)
1.7 BDT/Call*
e.g: Dhaka City
NWD Within District e.g: Calling to thana under same
1.5
district
NWD Calls to Districts between 0-100 Miles
NWD Calls to Districts 100+ Miles Distant

BDT/Minute**
Pulse: 30/30

*Pulse: 30 sec (From 1st minute)

*No peak/off peak

Messaging services:

Among all the messaging services, the charges of SMS plus,

SMS banking, SMS information services will come under the SMS based services and voice
mail charges will come under the voice sms. Here the charges described below.

Tariff Plan for text messaging:

30

Product

djuice

On-Net

Off-Net

International SMS

Smile

BDT 1.50

BDT 1.50

BDT 2.00

BDT 2.00

Smile PSTN BDT 1.50

BDT 1.50

BDT 2.00

BDT 2.00

Post paid

BDT 1.50

BDT 1.50

BDT 2.00

BDT 2.00

djuice

BDT 0.50

BDT 1.00

BDT 1.50

BDT 2.00

Tariff Plan for Multimedia Messaging Service (MMS):

GP
GP
GP
GP

to
to
to
to

GP
E-mail
International(Selected Operators)
Port (any competition)

3 tk
3 tk
15 tk + VAT
5 tk

Tariff Plan for voice messaging:

The charge to send a Voice SMS is BDT 1.5/min + VAT (users can send a message up
to 2 minutes long). Just dialing *0171XXXXXXX.

Users can retrieve a new message once - for free. Just dialing *0*

Users can retrieve old messages by dialing *1*. Charge is BDT 1/min + VAT.

Users can also reply or forward a message (BDT 1.5/min + VAT)

Internet services: To get internet access anytime wherever the user are and to provide a

great web surfing facility Grameenphone brings the EDGE (Enhanced Data Rates for Global
Evolution). With this technology the subscribers can get access to internet even from their
hand set. It is about 8 times faster than GPRS.GP is right now providing this services with
four types of packages. Those are Package 1 (P1), Package 2 (P2), Package 3 (P3) and
Package 4 (P4). The tariff structure for This Package is given below.

P1
P2
P3
P4
Subscribers
All
All
Postpaid
Prepaid
Tariff
None
BDT 1000/Month BDT 300/Month BDT 60*/Day
Browsing Charge BDT 0.02/KB Nil
Nil
Nil
31
Content
As per content
As per content As per content As per content
Download

Handset under GP Nokia Campaign:

The tariff plan for the Handset of the

campaign for the existing Business Solution subscribers is as follows.

Model

Nokia
Offered GP
Market Price (BDT) Corporate
(BDT)

offered Discount Exclusively for

Price BS (BDT)

E71

31,500

29,999

1500

E66

32,000

30,499

1500

Plan for the new Business Solution subscribers:

Model
E71

Nokia
Offered GP
Market Price (BDT) Corporate
(BDT)
31,500
29,999

E66

32,000

offered Discount Exclusively for

Price BS (BDT)

30,499

1500
1500

4.7.5 GP Village Phone:

We have stated earlier that Village Phone is a combine effort of Grameen Bank and Grameen Phone.
This package is mainly for those small type investors in the rural areas who run their small
businesses by taking short loans under the micro credit program of Grameen Bank. In this package
the investor at first have to purchase an hand set by taking a required amount of loan under micro
credit program of GB. With the phone set they can purchase a sim-card from the GP authority at a
rate of BDT 100. After getting the line they can start their business according to the following tariff
plan.
Outgoing

Call

Charges

Offer

Start-up Price

Tk. 500

Tariff

Tk. 1.00 (Ex. Vat)

Pulse

1 Sec (Flat)

32

GP to BTCL

Tk. 1.00 (Ex. Vat)

GP to ISD

ISD rate by BTTB board

Economy ISD Calling Economy ISD rate

Bonus
Modality:s 10% bonus on per day usage of every BDT 50, will
Modality:

be applicable after usage of BDT 500 per month.

Incoming Call Charges

Mobile to Mobile

Free

BTTB and ISD

Free

Important notes
1. BTTB and ISD - Peak (8AM 10PM) and Off-Peak (10PM 8AM).
2. 10% Service Charge and 15% VAT applicable.

4.7.6 GP Public Phone:

The pricing policy of this service is bit similar to Village phone. In this service the investors (the
retailers) first have to purchase a sim-card from the dealers at rate of BDT 600. After opening their
own retail outlet they can provide this service by recharging any amount they want. For every Tk
1000 recharge they will get Tk 27. For every scratch card they get the following discounts as their
profit.

Scratch Card Denomination

Tk.50

Discount for the retailers

Tk 0.70

Tk.300

Tk 7.00

Tk.600

Tk 15.00

Apart from the recharge and scratch card facility the investors will get the following facilities.
Outgoing Call Charges

Offer

33

Products
Start-up Price
Tariff
Pulse
GP to BTCL
GP to ISD
Economy ISD Calling
Monthly Discount/Bonus

(Postpaid + Prepaid)
Tk. 600
Tk. 1.00 (Ex. Vat)
1 Sec (Flat)
Tk. 1.00 (Ex. Vat)
ISD rate by BTTB board
Economy ISD rate
10% bonus on daily usage

Incoming Call Charges

Mobile to Mobile

Free

BTTB and ISD

Free

Important notes
1. Start up price for GPPP is TK.600. There is no free offer with the GPPP startup.
2. BTTB and ISD - Peak (8AM 10PM) and Off-Peak (10PM 8AM).
3. BTTB pulse 30 sec / min.
4. 15 % vat applicable.
5. All Tariffs are subject to change.

4.8 Promotional activities of GP:

As I have stated earlier that Promotion is the activities that the firm needs to undertake to inform
the customers about their product value. Promotion includes advertising, the sales force, public
relation, packaging and any other signal the firm provides about itself and its products. To
promote their products the companies usually take help of promotion mix. This promotion mix is
a set of tools that enables the firm to make their target customers aware of their products. These
promotional tools are as follows.
1. Advertising
2. Direct Marketing
3. Interactive Marketing
4. Sales Promotion
5. Publicity/Public Relation
6. Personal selling
34

Among all of the promotional tools stated above except personal selling, GP uses almost all of those
promotional tools. Depending on the service offerings, service attributes GP used different
promotional tools. The promotional tools used by GP are sequentially described bellow.

4.8.1 Advertising:
Advertising refers to the activities that enable the customers to become aware of the product and at a
time enable the firms to make the product available to its target customers with the help of some
effective media. The advertising tools used by GP can be categorized in to two categories. Those are
print media advertising and electronic media advertising.

4.8.1.1 Print Media Advertising:

Print media advertising refers to those attempts of the firm, when the firm use some printed materials
to provide the information of their product offerings. It is a paid form of non-personal
communication. To stay close to the customers GP continuously give printed advertisements in the
most popular dailies, monthlies, weeklies and fortnightlies of our country. The other two special
types of print media advertisements are described below.
A. Place advertisements: It is one type of advertisement in which the firms provide

their printed materials in some selected place to capture the attention of the people.
Grameenphone use that type of advertisements by providing printed information in
the bill boards, specialized tools in the speed breakers and road deviders with
umbrella of the traffic police. Printed advertisements in the vehicles are also one type
of printed advertisements.

Bill Board of GP
B. Point

of

Purchase

Advertisement: It is one type of advertisement in which the firm use some

specialized printed materials (including information) in purchase place to enable the

35

customers to make better purchase decision. We can say it is an indirect enforcement

to make a purchase. GP use that type of advertisements by providing printed stickers,
danglers, short posters in the retail outlets.

A sample of Printed
materials of GP used in
the retail outlets

4.8.1.2 Electronic Media Advertising:

Electronic media advertising refers to those attempts of the firm, when the firm uses some electronic
mediums to provide the information of their product offerings. It is also a paid form of non personal
communication. To provide greater convenient information to customer GP shows TV commercials
in the most popular TV channels and sound commercials in the popular radio stations. GP also
sponsored drama cereals and talk shows in the popular TV channels. Their electronic information in
their official website is also one kind of electronic media advertising.

A TV commercial of GP

A Talk Show sponsored by GP

4.8.2 Direct Marketing:

36

This is one type of promotional tool in which the firm directly communicates with the customers to
inform about their product offerings. GP uses this promotional tool only for the existing customers to
inform them about the new offerings. Suppose GP is going to offer a reduced tariff or new talk time
package of sms package. Then to inform this issue to the existing customers they will send sms to
each customers like this Dear subscriber, type yes and send to 3030 to get 250 sms free. Conditions
appliey. This one type of Direct Marketing.

Dear subscriber, type

yes and send to 3030
to get 250 sms free.
Conditions appliey

An example of Direct
marketing adopted
by GP.

4.8.3 Interactive Marketing:

This is one type of promotional tool in which the firm communicates with the customers through
some interactive media (like internet). To ensure an interactive communications with the customers
GP designed their official website in such a way that, the customer can get any product related
information. More over with their internet package the customers can always get access to GP even
from their handset.

4.8.4 Sales Promotion:

It is one type of promotional tool in which the firms provide the customers extra value to get an
immediate response from them and immediate impact in the sales volume. Product oriented firms
use this tool to provide extra amount of products or discounts ( like 20% extra, buy 1 get 1 free etc).
GP also use this tools to provide extra value to the customers (like 250 sns free, reduced tariff for the
next month etc). Usually GP use that types of promotions for a specific period or season like
Ramadan, Eid, Pahela Boishakh etc.

37

An example of Sales promotion offered by GP.

4.8.5 Publicity/ Public Relation:

This is one type of tool where the firm use paid or non paid form of communication to enhance the
brand image. Here the public relation is a paid form of communication and publicity is the non paid
one. Suppose if GP sponsored any sports event it is a paid form of promotion but if in the next day
any daily news paper wrote a collum regarding the sponsored event of GP then it will be non paid
form of promotion. GP conducts that type of paid form of promotions by sponsoring sports events
and culture oriented events. GP also provided relief for the flood effected and sidr affected victims.

Relief Program organized by GP.

Chapter 5: Accounting and Finance:

38

5.1Financial Review:
Amidst global recession and intense competition in the market, Grameenphone has had a good year
in terms of subscription growth and its financial consolidation. Competitors are engaged into price
war and with new entrants coming into the market, there is a possibility of exhilarating
competition ahead. Regulatory authorities have played a pivotal role in business environment with
new directives and guidelines, such as reduced interconnect prices, guidelines for infrastructure
sharing and likewise. Grameenphone continued with its product innovation and offering wide array
of services, namely introducing GP branded handsets and edge modems bringing alternate revenue
streams. Side by side, Grameenphone embraced cost optimization initiatives through operational
excellence program to maximize profit. In addition, Grameenphone opted for cost-efficient network
solutions through swapping of assets with Huawei equipments. The most colossal episode for
Grameenphone was its listing in the countrys two bourses in Nov09, which entitled Grameenphone
to avail a reduced corporate tax rate.
Subscription:

Subscriber base crossed 23 million landmark in 2009.

During the year, subscription base increased by 11% with 2.27 million additions.

Internet subscriptions reached 4.3 million compared to 3.7 million of 2008.

GPs subscriber market share stood at 44.4%.

Revenue:

Revenue increased by 6.4% (BDT 3.9 billion) mainly due to growth in traffic revenue driven
by subscription growth and new revenue streams from sale of GP branded handsets and edge
modems.

The growth in revenue was partially offset by lower interconnect revenues resulted from
reduced interconnect rates set by the regulator.

Increased data revenue from data subscriptions also contributed to the revenue growth.

Operating Expenditure:

39

Total operating expenditure in 2009 decreased by 9% (BDT 2.8 billion) from 2008 mainly
due to lower cost of network operation (mainly in interconnection and BTS maintenance) and
lower subscription acquisition costs.

A total savings of BDT 3.5 billion has been achieved through the operational excellence
initiatives during the year.

Net Profit After Taxes:

Net profit before tax increased by BDT 7 billion for the year 2009 compared to 2008. The
surge was

due to higher revenue and lower operating expenses.

Income tax expense was lower due to one-time effect for reduced tax rate. However, it was
partially

offset by higher tax provision due to higher profit.

In addition, 2008 net profit after tax was lower due to one-time regulatory payment on
account of government compensation.

Total Assets:

Grameenphones current asset base increased by BDT 7.6 billion mainly in cash and bank
balance resulting from higher net cash from operations and proceeds from IPO.

However, non-current asset base decreased by BDT 6.8 billion due to higher depreciation
and amortization expenses than fresh investments.

Capital expenditure during 2009 was BDT 10.4 billion compared to BDT 27.4 billion of
2008.

Total Liabilities:

Total liabilities decreased during the year mainly due to early settlement of entire bond
obligation, repayment of short-term borrowings, reduced deferred tax liabilities due to
change in corporate tax rate and allocation of shares to PPO investors from advance against
IPO.inancial Rev
iew

5.3Business Performance:
40

Here is the chart of business performance of GP at a glance:

Revenue:
65.3 Bn
Earnings per
share:
BDT 12.08

6%

12%

391%

NAV per share:

BDT 37.14

Gross Profit:
32.2 Bn

Operating
Profit: 20.5 Bn

Grameen
Phone

64%

Net operating
cash flow per
share:
BDT 24.77
22%

34%

Profit Before
Tax: 18.6 Bn
Net Profit After
Tax: 15.0 Bn

61%

402%

Chapter 6: Business Environment:

41

A shared responsibility, for a common future

While they maintain their business focus, taking the nation forward remains our top priority. Thus
their relationship with Bangladesh is built on a partnership, which strives to achieve common
economic and social goals.

Their Social investments are consolidated in three main focus areas, namely, Healthcare, Education
and Environment.

Health:
Almost half of the countrys population lives below the poverty line and are deprived from basic
primary healthcare. In partnership with Pathfinder International and USAID, Grameenphone has
been supporting the Safe Motherhood and Infant Care program since May 2007. Under the
program, free comprehensive primary healthcare services are provided to economically disadvantage
pregnant mothers and infants through over 300 Smiling Sun clinics located in 61 districts
around the country. So far 1,333,314 services have been provided to the economically
disadvantaged mothers and infants under this program. In 2009, two clinic-on-wheels and five
ambulances were handed over to different NGOs of Smiling Sun Network, to increase the
accessibility of maternal and infant healthcare services to the hard-to-reacheconomically
disadvantaged population. Grameenphone, jointly with Sight Savers International, has been
organizing free Eye Camps to ensure eye-care services since 2007. In total, 21 such free eye-camps
have been organized throughout the country and a total of 29,270 patients were given free eye care
support, among them 3,887 patients were administered Intra Ocular lens or cataract surgeries.

Education:
The main goal of Grameenphones CSR Eductaion initiative is to provide access to education and
information.
42

Grameen Shikhkha:
Grameenphone provides scholarship to meritorious but underprivileged
students through a scholarship fund at different academic levels, in
collaboration with Grameen Shikhkha, an organization of Grameen Bank Family.

Alokdeep, Non-formal School cum cyclone shelter:

Grameenphone, as part of its rehabilitation plans in the SIDR affected areas, provided financial
assistance to build education center-cum-cyclone shelters in the southern belt of the country. Four
such non-formal primary school-cum-cyclone shelters were planned, of which two are already
operational. The new cyclone shelters will be used as primary school throughout the year to provide
non-formal primary education to underprivileged children of the locality.

Information Boat:
Grameenphone, in partnership with CARE Bangladesh, started the Information Boat project. Boats
are also equipped with digital contents, such as livelihood and agricultural information, suited for the
specific areas served by the designated boats. A typical information Boat is equipped with
computers, Internet, photocopies, fax machines, printers, webcams and scanners. So far, four such
Information Boats have been launched in the northeast region.
43

Environment:
Our Environmental campaign titled Stay Green, Stay Close, was launched in June 2009 with an
objective to support a healthier environment through innovative environmental activations and
initiatives, as well as increasing awareness among different stakeholder groups. As part of this
program, over 21,000 free saplings were distributed across the country.

Other Initiatives:
Sponsoring Special Olympics Bangladesh:
Grameenphone became the sole sponsor of Special Olympics Bangladesh in 2007 when it provided
necessary support and training for the athletes to participate in the Special Olympics Games 2007 in
Beijing, China. The team won 71 medals in different categories. In 2008-09, the company supported
and organized regional talent hunts across the country. A total of 94 (64 male and 30 female)
intellectually challenged athletes were selected from four regional talent hunt programs. These
44

selected athletes are to be trained and groomed for the Special Olympics World Summer Games
2011 in Athens, Greece.

Emergency Relief Works:

A total of 14,500 blankets were distributed in different regions of the country during the cold wave
in December. Grameenphone employees donated warm clothes and actively participated in the
distribution of relief materials. After the devastating cyclone AILA hit the country, Grameenphone
came forward to help the victims with basic food items, healthcare service through medical teams
and providing temporary shelters made with GPs used billboard wrappers.

Chapter 7: International Business

Grameenphone is associated with TMC, a company organized under the laws of the Kingdom of
Norway, seeks to develop and invest in telecommunications solutions through direct and indirect
ownership of companies and to enter into national and international alliances relating to
telecommunications. It is a subsidiary of Telenor Mobile Holdings AS and an affiliate of Telenor.
Telenor AS is the leading Telecommunications Company of Norway listed on the Oslo Stock
Exchange. It owns 55.80% shares of Grameenphone Ltd. Telenor's strong international expansion in
recent years has been based on leading-edge expertise, acquired in the Norwegian and Nordic
markets, which are among the most highly developed technology markets in the world. It has
substantial International operations in mobile telephony, satellite operations and pay Television
services. In addition to Norway and Bangladesh, Telenor owns mobile telephony companies in
Sweden, Denmark, Hungary, Russia, Ukraine, Serbia, Montenegro, Thailand, Malaysia, Pakistan and
India with more than 174 million mobile mobile subscriptions worldwide as of December 31, 2009.
Telenor uses the expertise it has gained in its home and international markets for the development of
emerging markets like Bangladesh. As part of the conversion of Grameenphone from a private
limited to a public limited company, Telenor Mobile Communications AS transferred 10 shares each
on May 31, 2007 to its three (3) affiliate organizations namely Nye Telenor Mobile Communications
II AS, Norway; Telenor Asia Pte. Ltd., Singapore; and Nye Telenor Mobile Communications III As,
Norway. Telenor provides telecommunication facilities internationally in 117 countries.

CHAPTER-8
(Conclusion)
45

The purpose of this paper has been to analyze the market expansion activities of Grameenphone. GP
is a very big telecommunication company. Therefore, its very difficult for us to analyze its each and
every strategy precisely in this small study.
There can be various ways through which a business organization can achieve success in the market,
After scanning its external & internal environment and considering all alternatives, we have tried our
level best to sort out the best way as per our thinking ability for GP to run ahead.
But finally we can say this much that it has a large potential both in the short and long run due to its
sound distinctive competencies .

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