Different Measures for Improving Finance of Teletalk

Brief Description of Teletalk Bangladesh Ltd:

Tele density of Bangladesh is still the lowest in South Asia. The Bangladeshi telecommunication industry has been now facing global competition as different multi-national telecommunication companies have been trying to penetrating into this market. Hence, the existing phone companies have been loosing their competitiveness and market-shares. To retain market-share, existing local companies have been pursuing to fulfill the need gap of phone services in different regions of Bangladesh.      Mission & Vision:

To innovate and constantly find new ways to enhance our services to our customer’s current needs and desires for the future. Our vision is to know our customers and meet their needs better than any one else.

Objectives:

  To provide mobile telephone service to the people from the public sector

  To ensure fair competition between public and private sectors and thereby to   safeguard public interest

  To meet a portion of unmitigated high demand of mobile telephone.

  To create a new source of revenue for the government.

Privatization & Regulatory structure of Telecommunication Services:

The Telecom sector of the country has been liberalized for private investment. Bangladesh T&T Board provides all types of telecommunication services in urban and rural areas while the mobile, paging and radio trunking services are offered by private operators. Private operators were also given license to install and operate digital exchanges in rural areas and they would install telephone exchanges in phases. Table-1 shows the list of the private operators.

Table 1 – Private Telecom Operators in Bangladesh

 Scope to be explored:

m-Governance is derived from e-governance refers to government’s use of information and communication technology to exchange information and services with citizens, businesses, and other arms of government. Teletalk is ready to provide with the help of third party software, mobile interactivity for the citizens of Bangladesh with m-Governance. This may includes, but not limited to

  Mobile based Live Citizen Reporting Solution

  Mobile User Info bank (Database of Mobile Users of Bangladesh)

  Agriculture information services for the farmers and also for the end users, like product price in different parts of the country.

  Product ID for all consumer products/ Organization.

  Interactivity between Government and the Citizens.

Reasons behind Using Pre-paid Phones:

Most of the mobile users have been found subscribers of pre-paid connections. The reasons behind using pre-paid mobile connections. ‘No hassle of bill payment’ has been found to be the most mentioned reason by the pre-paid mobile users (84%). ‘Availability of cards everywhere’ has been found the next mentioned reason by the prepaid mobile users (12%). The scenario is quite similar in all four regions of Bangladesh.

Reasons behind Using Post -paid Phones: 

Post paid mobile users have also mentioned reasons behind their preference. The major reasons behind using post paid mobile connections. ‘Low call rate’ has been found to be the most mentioned reason by the post-paid mobile users (74%). The scenario is almost similar in all the four regions of Bangladesh.

Number of Calls per Day:  

Nearly two-fifths of the respondents have mentioned that on an average they receive less than 5 calls per day (39%). Almost the same number of respondents receives 5-7 calls per day.

Regarding the outgoing calls, it should be mentioned that 59% of the respondents make less than 5 calls, while 31% make less than 5-7 calls per day.

Duration of per call:

Majority of the respondents (34%)

have reported that the duration of most of their calls is less than 5 minutes

Reasons behind Using Mobile Phone Service:

Most of the users opined that they use phone service for personal reasons (52%). However, about half of the respondents use for both personal and official/business related reasons (44%).

  Likes and Dislikes of Different Phones:

Two-thirds of Grameen phone users have responded that they like the network availability. One-fifth of the users of Grameen phone have expressed that they like My Time, My Easy Time, My Jones, etc; whereas 46% of them dislike higher call rate of Grameen. Pulse facilities given by Robi (Aktel) liked by 31% of Robi (Aktel) users while the and lower call rate is liked by 24% of them. Lesser availability of the network (29%) and high call rate (22%) are the key disliking factors to the Robi users.

T&T phone user take T&T phone as a cheaper option than mobile phones. That the phone can be used by all the members of the family is an important reason for preferring T&T phone to mobile phone

Major Achievements of Teletalk:

a. First mobile operator to give ‘Free incoming’ to all subscribers.

b. First mobile operator to give ‘BTTB Connectivity’ to all subscribers.

c. First mobile operator to give ‘ISD & EISD Facility’ to all subscribers.

d. First mobile operator to introduce ‘single-Zone country wide Network.

e. First public sector enterprise to introduce e-governance.

 Financial Analysis

 Future Outlook :

The Company started its commercial operation on 31^st March, 2005. While the Company is structuring and training a will focused technical term to ensure high standard of mobile service performance, it is at the same time developing and training its sales, logistics and marketing term to ensure sale of the entire service. This Company is putting in place a professional organization with all the required systems and tools to run the business efficiently and profitably

 Provision for doutful debts

A net amount of Tk.3,506007 representing receivable from PCO clients and post paid subscribers appears doubtful of recvery The board of Directors therefore recommends making a provision for the same amount in the financial statements under review. However, the management has taken due care to recover the doubtful debts within shortest possible time.

Fairness of the financial Statement and accounting policies

Its is the responsibility of the Directors as per the  of the Companies Act,1994,to prepar financial statements for each year. The  financial statements and other financial information included in this report fairly present all material aspects,The financial conditions,results of operations, cash flow statement and the charges in equity  of the company for the year under review.

The Company has used appropriate accounting policies in preparation of these financial statements supported by reasonable and prudent judgment and estimates as necssary international Accounting Standards (IAS), as applicable in Bangladesh has beenfollowed in preparation o these financial statements in compliance to the relevant accounting principles..

 Financial results:

During the year ended on 30^th June, 2010, the company has registered gross revenue of more than Tk. 2328.52 million from its operating activities (2008-09, Tk. 1961.19 million) A brief results is shown hereunder

Major items of expenses include Direct Operating Costs and Depreciation on assets which were Tk.856.98 million and Tk.1539.39 million respectively. General,Selling and network operating expenses remained in proportion to the normal business trend of the Company.Depreciation expenses, however increased in proportionate to the installation of new capital machineries. However,the EBITDA (Earning before interest depreciation and amortization) of the year was Tk. 909.57 million which reveals improvement of the overall operational activities in comparision to the previous years

Balance Sheet of teletalk Ltd 2009 &2010

Profit & Loss account of Telatalk Ltd (2009-2010)

 Chart Sales & Loss Combination with Graf:

Chart of Sales & loss Combination

  Statement of Cash Flow Statement

Statement of Changing Equity: