Evaluating Performance of GrameenPhone as the Leading Cellular Company in Bangladesh

 Executive Summary

Grameenphone was offered a cellular license in Bangladesh by the ministry of Post and Telecommunications on November 28, 1996. The Company launched its service on March 26, 1997, the Independent Day of Bangladesh. A sister concern of Grameen Bank. It was established by Grameen Bank to organize and assist those Grameen Bank borrowers who wish to retail telephone service in the rural areas.

Grameenphone builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout GrameenPhone’s network.

The GSM Association at the GSM Congress in Cannes, France gave the “GSM in the Community Award” it in February 2000. It also received the “Commonwealth Innovation Award” in 2003 and the Petersburg Prize” awarded by the Gateway Foundation in 2005.

Market Research and Development Department (MRD) is a vital part of Grameenphone in terms of its importance and role. The central innovative department of Grameenphone is MRD. This department facilitates communication between the different departments about existing and new products / packages of Grameenphone. MRD also manages and co-ordinates information about different products. MRD evaluate new products.

Customer care is making the bridge between the customers and company. Besides Sales division it is the only department who deals customers directly. Saes department procures the business and Customer Care keeps the business with the company for long period. Once relationship is established Customer Care is doing the business with the subscribers. It works with the objective to meet all kinds of queries from customer and provides the optimum solutions. It works to ensure customers satisfaction and also to motivate the people in GrameenPhone service.

 HR Management Information System:

HR-MIS Functions involve-

• To maintain & update employee database
• Maintain employee related different statistics
• Any other works which requires updating employee data.

 Though job has been classified and assigned according to the nature of the function of HR Department, the job is accomplished and the responsibility is carried out co-operatively.

 Work Force of the Finance Department:

Worming team of this department consist a total nineteen members including Executive Manager, Finance who is responsible for overall and inter-departmental management of  this department. For overall supervising and proper internal control purpose finance department device in four segments where a several section as required based on work volume and manager (individuals) is responsible for all activities performed by the sections.

Telecommunications performance in Bangladesh needs radical improvement to be spurred by deregulation, market liberalization, competition and training. Although some progress has been made recently toward private participation in the sector and separation the regulatory agency from BTTB, the operator, the public has yet to reap benefits. The Government has recently launched and effort to attract foreign investment in this sector, but has yet to take the bold step of fully opening the field to private investors and operators.

At the end of the 20^th century, the world is witnessing an explosion in the telecommunication and information society, especially the rapid growth of the Internet and mobile communications, the agreement of the World Trade Organization (WTO) on basic telecommunications, the world wide trend of liberalization, competition, globalization and the convergence of technology and services.

Introduction

Origin of the report

Thesis Paper submission is a part of the course for the BBA students of Business Administration. This report is a requirement of the BBA program. Assigned by the thesis supervisor, this report is also prepared based on the project assigned by Distribution department, Sales and Marketing Division of GrameenPhone Ltd.

Background

During the early Nineties the Telecom sector in Bangladesh was severely under developed when the market was monopolized by the state owned operator, BTTB (Bangladesh Telegraph and Telephone Board). BTTB provided only fixed line telephone services, which was heavily skewed in the urban areas where as 80% of the population of Bangladesh lived in the rural areas. This unequal distribution of services created the opportunity for the mobile operators.  The granting of a paging service license to Bangladesh Telecom Authority in 1989 paved the way for mobile service in Bangladesh. Pacific Bangladesh Telecom Limited (PBTL, now Citycell) operating under CDMA technology was first granted the operating license as mobile phone operator in 1993, and was joined by three other GSM mobile operators namely GrameenPhone, Aktel, Sheba telecom (Banglalink), Teletalk in 1996, 1997, 1998, and 2005 respectively.

GrameenPhone (GP) launched its mobile phone services on March 26, 1997 and since then has become the largest mobile phone operator in the country. Its number of subscribers has grown rapidly, as has its coverage throughout the country. The aim of GrameenPhone is to provide affordable mobile telephone facilities in urban and rural areas of the country. By 2005, GP plans to bring the whole country under its coverage. As a part of continuous market development strategy, GrameenPhone needs a comprehensive study on the telecom sector and cellular industry that will help in better understanding the industry in which it is operating.

Accordingly, GP is contemplating on commissioning a research that would cover both the telecom sector and cellular industry to identify and analyze the technology, trend, change, growth, market share and competition in the cellular industry.

Problem statement

 At present there are five mobile phone operators and one state-run fixed line operator providing telecommunication service in Bangladesh.

They are

• Pacific Bangladesh Telecom Limited
• T.M.International (Bangladesh) Ltd.
• GrameenPhone
• Sheba Telecom (Banglalink).
• Taletalk Bangladesh

Operators have used different strategies to penetrate in to this huge unmet market. Little research study on the telecom sector with particular emphasis on the cellular industry of Bangladesh has been carried out so far that can provide substantial market information about this rapidly growing industry.

The market intelligence of respective operator companies reaches out to gather relevant information, which remains highly confidential and exclusive from one another. Under the above circumstances, the problem statement would be

 “To know about the current market scenario and future growth prospect of the cellular industry in the telecom sector of Bangladesh and also Evaluating performance of GrameenPhone as the leading cellular Company in Bangladesh.”

Objective

The broad and over all objective of this report is to provide an over view of the learning process as a new employee at Grameen Phone Ltd. during the organizational attachment period so that the theoretical learning can be related with the real life business situation.

 This report aims to achieve the following specific objectives:

°  Extensively describe Grameen Phone Ltd. (GP) as an organization providing cellular phone service in Bangladesh, its products and services.

°  Identify GP’s achievements, reasons behind its success, do SWOT and situational analysis.

°  Illustrate the telecom sector of Bangladesh with facts and figures.

°  To depict the telecommunication industry of Bangladesh; its participants; past, present and future scenario.

°  To discern how the demand for mobile phone emerged and the cellular industry evolved in this land.

°  To portray and analyze the technology, trend, change, growth, market share and competition in the cellular industry.

°  Make a projection of the future development and potentials, competitive situation of the cellular/mobile telecommunication industry.

°  To identify and prepare SWOT analysis for all the operators in the Bangladesh telecom sector.

°  To delineate how to provide effective telecommunications as a key to economic success.

°  To identify the plethora of bottlenecks faced by the mobile operators and ways to remove all those hindrances.

Scope of the study

 This report renders a close analytical look at the telecommunication sector of Bangladesh with main focus and emphasis on the cellular industry, its growth and development since its inception. It also sheds light on the future outlook of the cellular market, its growth prospects and potentials. The report is written from the point of view of Grameen Phone, as this report is expected to augment the market intelligence and knowledge base of the market research and development department of Grameen Phone Ltd.

Methodology

 Type of business research used in this report is of descriptive nature. Through this descriptive research this report seeks to determine the answers to whom, what, where and how can it be possible all the questions of the cellular industry of Bangladesh. Secondary data analysis was selected as the basic research method.

Data Collection

Data for this report has been extracted from secondary sources, as the descriptive nature of the study to prepare this report calls in for existing facts and information compilation.

Source of Secondary Data

Majority of the secondary data was obtained from the Market Research and Development Department of Grameen Phone Ltd. Annual reports of other Mobile operators, their officials web sites, reports done on the telecommunication sectors and information obtained from the Internet, augmented this report to take a comprehensive shape.

Data collection Instrument

In-depth interviews were conducted with the key marketing and sales personnel of the mobile operators to obtain ideas about the market, current happenings, developments, competition, problems, hazards and challenges faced by them operating in the fastest growing technological industry of Bangladesh.

 Data processing and analysis

 Collected information was processed with the aid of MS Excel computer software. Detailed analysis, working variables, variables, future projections and working definitions are incorporated in the report.

Limitations

The major limitation factor for this report was primarily the reluctance and strict adherence to confidentiality maintenance attitude shown by the officials of mobile operators. Most of the calculations had to be made taking GP’s figures as the industry average.  Most of the relevant literature and study materials on the telecom sector were not updated, and no comprehensive in-depth study on the cellular industry could be found. The analysis and future projections were computed with the simplified trend analysis by MS Excel. Use of other professional or statistical software would generate reports with higher level of precision and lower standard deviation. Furthermore, some information was withheld to retain confidentiality of the companies. So appropriate verifications of some information could not be made.

GrameenPhone Limited: An overview

About Grameen Phone

GrameenPhone (GP) has been established to provide high-quality GSM cellular service at affordable prices. GrameenPhone has a dual purpose:

    To receive an economic return on its investment

    To contribute to the economic development of Bangladesh where telecommunications can play a critical role.

 Historical Background

GrameenPhone was offered a cellular license in Bangladesh by the Ministry of Posts and Telecommunications on November 28, 1996. The Company launched its service on March 26, 1997, the Independence Day of Bangladesh.

In 1996, Bangladesh was preparing to auction off private cell phone licenses to four companies. So at the behest of Dr. Muhammad Yunus (Grameen Bank’s founder) but completely independent of Grameen Bank, a not-for-profit private company called Grameen Telecom was created. Grameen Telecom, in turn, created a for-profit company called Grameen Phone, found a foreign partner, and put in a bid; Grameen Phone received one of the four licenses. Grameen Phone’s total capitalization was US$120,000,000, including around US$50 million from IFC/CDC, and the Asian Development Bank (ADB). It also received US$60 million in equity from the four Grameen Phone private partners. These were the Norwegian Telenor with a 51% share, Marubeni of Japan with a 9.5% share, and the American Gonophone at 4.5%. Grameen Phone’s fourth partner is Grameen Telecom (with 35%), and Grameen Telecom borrowed US$10.6 million from the Open Society Institute to set up Village Phone.

Grameen Phone launched service in urban Dhaka on March 26, 1997. It makes its profits by serving wealthier urban customers. But from the point of view of the Grameen family and its strong anti-poverty mission, the for-profit, urban-only Grameen Phone exists for only one reason: To fund, with its profits, the extension of cell phones into rural Bangladesh in order to provide entrepreneurial opportunity to Grameen Bank members through Village Phone. As Dr. Yunus puts it, “Grameen Phone is merely what we need to do Grameen Telecom’s Village Phone.”

But in 2005, there are only two shareholders’ which are Telenor (62%) and Grameen Telecom (38%).

Three important and interesting structural aspects of operation on the largest scale are:

First, that the not-for-profit Grameen Telecom actually owns the for-profit Grameen Phone. The reason for this structure is that Grameen wants Grameen bank members– impoverished women who borrow from Grameen Bank– to become owners of the profit-making Grameen Phone.

Second, once GP becomes profitable, GT will sell its GP shares to GB members.

Third is an understanding– not made explicit in any legally binding contract but arrived at in the shareholders’ agreement– that after 6 years of GP operation, Telenor and GT will actually switch ownership positions: Grameen Telecom will sell it’s 38% share to Telenor and Telenor will sell its 62% share to Grameen Telecom, which will thus become the dominant partner and true manager of the system. Grameen Phone is thus an unofficial, non-traditional form of Build, Operate, and Transfer.

“GrameenPhone” might have been born in Bangladesh, but soon it is likely to join the international cellular jargon. GSM MoU Association at GSM World Congress in Cannes where many villagers made their first-ever call using pre-paid, recently rewarded rural cellular marketing, by Vodaphone in South Africa. “GrameenPhone,” the unique cellular operator from Bangladesh, also made an impressive presentation at Cannes.

Founding Partners of GrameenPhone

GrameenPhone is a joint venture company comprising of:

• Telenor

     A state-owned telecommunication company from Norway. It has a long history of successful cooperation with other operators in Russia, Hungary, Montenegro, Ireland, Bangladesh, Greece, Germany, Germany, Australia, Malaysia etc.

• Grameen Telecom

     A sister concern of Grameen Bank. It was established by Grameen Bank to organize and assist those Grameen bank borrowers who wish to retail telephone services in the   rural areas.

These two companies own shares of GrameenPhone in the following manner:

 Mission, Vision, Objectives & Strategies of GrameenPhone

Company Vision

“We exist to help our customers get the full benefit of communication services in their daily lives. We want to make it easy for customers to get what they want, when they want it”.

   Company Mission

 GrameenPhone Ltd. aims at providing reliable, widespread, convenient mobile and cost effective telephone services to the people in Bangladesh irrespective of where they live. Such services will also help Bangladesh keep pace with other countries including those in South Africa region and reduce her existing disparity in telecom services between urban and rural areas.

Objectives of GrameenPhone

Grameen Phone’s basic strategy is coverage of both urban and rural areas. The Company has devised its strategies so that it earns healthy returns for its shareholders and at the same time, contributes to genuine development of the country. In short, it pursues a dual strategy of good business and good           development.

Serving the mass market is one of GP’s primary goals. By serving the general public as opposed to niche markets, the Company plans to achieve economies of scale and healthy profits. At the same time, service to the general public means connectivity to a wider population and general economic development of the country. In contrast to the “island” strategy followed by some companies, which involves connecting isolated islands of urban coverage through transmission links, GrameenPhone builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout Grameen Phone’s network. In addition, GP has positioned itself to capitalize on the declining prices of handsets, making its goal to serve the general public realistic.

Company Strategy

Grameen Phone’s basic strategy is coverage of both urban and rural areas. In contrast to the “island” strategy followed by some companies, which involves connecting isolated islands of urban coverage through transmission links. GrameenPhone builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout Grameen Phone’s network.

Company Service

GrameenPhone believes in service, a service that leads to good business and good development. Telephony helps people work together, raising their productivity. This gain in productivity is development, which in turn enables them to afford a telephone service, generating a good business. Thus development and business go together.

 Service for the Rural Poor

Establishing a nation wide network gives fair access to all geographical areas. From a business point of view, this strategy serves both the long distances as well as the rural markets. This emphasis on rural coverage brings a much-needed infrastructure in the underdeveloped rural areas. In collaboration with Grameen Bank, which provides micro-credit only to the rural poor, GP utilizes the bank borrowers to retail telecom services in the rural areas. Leveraging on Grameen Bank borrowers reduces the distribution costs of Grameen Phone’s rural services, contributing to the profitability of this segment.

By bringing electronic connectivity to rural Bangladesh, GrameenPhone is bringing the digital revolution to the doorsteps of the rural poor and unconnected.

  Village Phone Program

The internationally acclaimed Village Phone Program (VPP) continued to grow rapidly during 2006, providing telecommunications services in rural areas all over Bangladesh, covering even the remote off-shore islands in the Bay of Bengal.

Managed by Grameen Telecom in cooperation with Grameen Bank and GrameenPhone, the VPP further expanded to add nearly another 100,000 new VP subscribers, with the total year-end figure standing at around 191,000 in 2005.

As of today, there are more than 260,000 VP operators in over 50,000 villages in 439 Upazilas (sub-districts) of the country. Amongst GP subscribers, VP operators yielded the highest average revenue per month.

Commencing its operation in March 1997, the VPP is a unique initiative to provide telecommunications facilities in remote, rural areas where no such service was available before. It has brought about a quiet revolution in mobile telephony in Bangladesh, by putting cell phones in the hands of the rural poor, many of them women, who had never seen a telephone before.

The Village Phones work as an owner-operated pay phone. It has created a good income-earning opportunity for the VP operators, mostly poor women who are borrower members of Grameen Bank. VPP has received many international awards while it has also been extensively featured in the international media over the years and documented by researchers both at home and abroad. It was given the “GSM in the Community Award” by the GSM Association at the GSM Congress in Cannes, France in February 2000. It also received the “Commonwealth Innovation Award” in 2003 and the “Petersburg Prize” awarded by the Gateway Foundation in 2005.

The Village Phone Program has also been replicated in a number of countries including Uganda and Rwanda in Africa.

Research studies have found that the introduction of Village Phones has made a “tremendous” social and economic impact in the rural areas, creating a “substantial consumer surplus” for the users. It directly increases the household income of the Village Phone operator.

Findings showed that this modern technology has increased the social standing of the Village Phone Lady. The various studies have found that one of the most important contributions of Village Phones was to make market information accessible to all. It has also substantially empowered the women from the rural households, who can now access numerous services provided by the government and non-government organizations through a simple telephone call from her village.

Products of GrameenPhone

 The products of Grameen Phone can be characterized as:

  Post Paid

 Pre-Paid

   Post Paid

Under Post Paid Service there are 2 products:

 Xplore – 1
Xplore-1 connects to BTTB local, BTTB-NWD (Nationwide Dialing), ISD (International Standard Dialing), all Grameen Phone mobiles, other mobiles and receives calls from the same. Recently all xplore-1 have been given the TNT incoming free that enables a Explore-1 Package holder to receive from anywhere in the country. Pre activate EDGE service. Monthly line rent tk.100. With the new xplore postpaid, discover the pleasure of doing much more. Packed with a treasure of new features and facilities it keeps you in touch with your loved ones and gives you access to unlimited information and entertainment. Xplore-1 postpaid sets you free. xplore Package 1 gives you Economy ISD (012) the opportunity to keep in touch with your near and dear ones who are living abroad.

 Xplore – 2

This unique product of GP has been launched on this April as the “Baishakhi Offer”. Connects to BTTB local, BTTB-NWD (Nationwide Dialing), ISD (International Standard Dialing), all GrameenPhone mobiles, other mobiles and receives calls from the same. 1 Second pulse. Pre activate EDGE service. Monthly package bundle tk.1000. With the new xplore-2 postpaid, discover the pleasure of doing much more. Packed with a treasure of new features and facilities it keeps you in touch with your loved ones and gives you access to unlimited information and entertainment. Xplore-2 postpaid sets you free. xplore Package 2 gives you Economy ISD (012) the opportunity to keep in touch with your near and dear ones who are living abroad.

   Pre-Paid

 Smile pre-paid

Introduction of Grameen Phone’s new Smile pre-Paid Service is another development of mobile telephony in Bangladesh. Smile has National Roaming facility with gp to gp Tk. 2 per minute and gp to other Tk. 2.5 minute. There is no incoming charge.
This service helps the subscriber to control costs. It frees the subscriber from the hassles of paying bills, security deposits and line rents. But it contains nearly all services available in other GP products. Subscribers can subscribe the service from all GP authorized points of sale.
To start with, one has to buy the Smile Starter Kit and a handset. The Starter kit contains a pre-activated SIM card and a Green Smile card. The Starter kit costs Tk. 200, & Tk. 50 free talktime with activation (valid for 15 days).

  Smile pre-paid (Standard)

Under the prepaid system this is an unique feature of GrameenPhone.
Smile pre-paid standard connects to BTTB local, BTTB-NWD (Nationwide Dialing), ISD (International Standard Dialing), all Grameen Phone mobiles, other mobiles and receives calls from the same. All Smile pre-paid standard phones have been given the mobility facility that enables a Smile pre-paid standard mobile holder to receive and send calls from anywhere in the World.

  djuice

djuice is a pre-paid mobile to mobile product. In addition to the basic cellular options, it has some additional lifestyle benefits, specially tailored for the target segment. It contains many extra features that not include the other prepaid segment. It is mainly designed for young generation. And Grameenphone has done the excellent job here. They have already gained more than 1 million subscribers.

Business Solution

Business Solutions is a complete, quality business communications service from Grameenphone – designed especially for the business community in Bangladesh. Our Business Solutions team is here to help provide you with customized telecommunications solutions through consultation with you.

Table: the total number of products that are existing in the market today

**NWD-Nationwide Dialing, **ISD-International Standard Dialing

The GP xplore-1, xplore-2, Smile pre-paid standard, Smile pre-paid, subscribers enjoy a number of GSM Features and Value Added Services (VAS):

GSM Features of  GrameenPhone

GrameenPhone subscribers enjoy the following GSM features without bearing any additional costs:

Caller ID: Display of the phone number of an incoming call in your handset before the call is answered.

  Call Waiting: While talking to the first caller, you will hear a special tone informing you about the second call on the line. At that moment you can put the first caller on hold and talk to the second caller.

  Call Conference: Receiving calls from multiple callers can be supplemented by joining these multiple callers so as to enable them to talk to each other. You will be able to communicate with a group consisting of maximum five callers.

  Call Divert: Call Divert lets you redirect or re-route your call to another GrameenPhone mobile or any other fixed (if you have BTTB connectivity) or mobile phone.

  Call Barring: Enables you to restrict certain types of calls to be made from your mobile. This feature is especially important for security purposes.

        Value Added Services

The following additional services are available upon request:

› Voice Mail Service (VMS)
VMS is a unique answering machine.
It provides you with a personal electronic mail box in our voice mail center.
It records your personalized greetings as well as stores your incoming voice messages.
It records incoming voice messages if you are:
õ Outside GP’s coverage area or
õ Busy or
õ simply switched off your mobile.

It provides 24-hour automatic secretarial service
Makes one available to his calling person anytime

 Short Message Service (SMS)
ž SMS in your mobile acts like an advanced pager.
ž You can send and receive text messages of up to 160 characters, directly from one GP mobile to another GP mobile.

Fax and Data Service (currently available only to corporate clients):
ž You can use your mobile phone attached to a computer to send faxes or transfer data.
žNo need to have connection with a fixed line.
ž You can use this service even when you are on the move within GP’s coverage area.

Internet Services

Grameenphone EDGE

Grameenphone brings you EDGE (Enhanced Data Rates for Global Evolution), an advanced mobile technology which enables high-speed mobile Internet and data services. It is about 8 times faster than GPRS.

Benefits of EDGE:

With EDGE, you can . . .
Get Internet access any time, remain connected all the time wherever you are, and have a great web surfing experience.

Surf the Internet with super-fast speed from your handset.
Browse contents more easily on your mobile phone.
Send and receive e-mails through your mobile phone.
Send and receive multimedia (pictures, sounds) messages.
Download better quality contents: high-quality ring tones, wallpapers, songs, movie clips, videos, animated logos, and themes that will let you customize your handset in many ways.
Receive incoming calls even while browsing. Once the call ends, your data transfer will resume automatically from the place it stopped.
And lots more…
Note: GPRS handset users will also be able to enjoy these services.

Following are the Products and services that have been successful:

• Xplore-1 & 2, the oldest product of GrameenPhone but now GP has redefine the package & retains its popularity through its full connectivity to all networks including fixed line telephony services.

• “Smile” Pre-Paid (Standard), the pre paid product of GrameenPhone retains its popularity through its full connectivity to all networks including fixed line telephony services. As it’s a Pre-paid service, no monthly rent required and instant use due to pre-activation, no hassles of bill payment.

• “Smile” Pre-Paid, because of Low flat tariff and nationwide mobility, it’s a Pre-paid service, no monthly rent required and instant use due to pre-activation, no hassles of bill payment.

• Information Service through mobile because of easy access, interesting theme, and reasonable rate and for being new and innovative.

• Village phone because of use of Grameen Bank’s borrower network and for having access to BTTB & ISD.

Following are the Products and services that have not been successful:

• Voice Mail service due to language barrier, lack of promotions, lack of know how about interactive services and also because people are reluctant to speak to a machine.

• Usage of Short Message Service is still low due to lack of promotion, lack of knowledge of English, unawareness of handset configuration and un-ergonomic nature of keypad.

• Network problem when the many user access to the network because the capability is not increased of the network but customer is increased day by day.

Organization Structure of Grameen Phone Ltd.

ORGANOGRAM OF

Grameen Phone Ltd.

Departments and Divisions

Recently management has brought a change in the organizational structure in view of need of time. As of the recent change, line function of the company comprises of the 3 different tasks. These are:

• Build & Operate
• Sell
• Care

Accordingly 3 main divisions were identified as the line organization part of the company. These are:

• Technical Division
• Sales and Marketing Division and
• Customer Relation Division.

Besides there are:

• Finance Division.
• Personnel and Organization Division.

Technical Division

Technical division is split into two parts:

• Roll -Out Division: Responsible for building the network.
• Operations Divisions: Responsible for operation and maintenance of the network.

Organ gram of Technical Division

The Roll-Out Division

The Roll-Out division has two sections, they are:

·         Planning Section and

• Implementation section

GRIP

GRIP represents for GrameenPhone Railway Integration project. This is a special project to integrate the telecom department of railway (BRTS) and GrameenPhone. This project will end up with a merger with Roll – Out and Operations division.

Responsibilities of the Planning

• Responsible for mainly Base Station related planning
• Responsible for planning of data transmission equipment from Base Station to switch
• Responsible for BSC (Base Station Controller) and MSC (Mobile Switch Center) related planning.
• Responsible for timely supply of equipment
• Responsible for negotiating with home owner for building Base Station on the roof-
• Responsible for Roaming agreement with other countries.
• Responsible for construction & maintenance of Base station room. Antenna pipe, Power supply etc.
• Responsible for installation of Base Station Hardware.
• Responsible for start-up and pilot operation of Base Station.

Responsibilities of the Implementation section

Responsibilities of the Operations Divisions are

• Responsible for operation and maintenance of Switch (MSC)
• Responsible for operation and maintenance of Base station
• Responsible for overall management of the network.
• Responsible for fault detection of network
• Responsible for operation and maintenance of the transmission equipment.

Marketing & Sales Division

In order to carry out smooth operation of activities across Sales and Marketing division some changes in the Organizational chart has been made. In the chart below the line responsibilities starting from Divisional head to departments are shown.

Organizational Chart of Sales and Marketing Division

Sales Department

As its name suggests this department involves in the selling procedure of GP and thus enjoys the responsibility of direct interface with the customers.

°  Responsibilities of Sales Department

• Market survey and collecting the feedback
• Participation in exhibition
• Participation in opening of dealers outlet
• Instant delivery
• Introducing & selling new packages
• Follow up with existing subscribers
• Building up relations with subscribers.

°   Selling procedure

• To build relation with the clients, to make a good rapport with them, to acknowledge them about the GP service, its advantages, coverage area, and above all to provide information about GP in a convincing manner.
• To do all the necessary arrangements to sale the product which includes handout GP application form & brochures
• Help the customer to fill up the application form including the agreement.
• Tell & help the customer to pay the amount for subscription including govt. fee and security deposit in the designated banks in cash.
• Receive the completed application form with bank deposit slip and all the documents, check carefully and ensure the signature with date.
• Make a photocopy of the SIM card with its number, mobile number and ID number.
• Inform the subscriber to contact Customer Care Department on 123 for further inquiry.
• Thanks the customer for choosing GP
• Forward the subscriber’s file to the Billing department for activation.

°  Distribution Channel

The distribution channel consist of the info center consist of Info centers, Dealers and the corporate sales force.

°  Info Center

Info center provides spot solutions. Here subscribers can get subscription. 04 trained and friendly people are serving at Info Center from 8am-8pm. There is also 01 Sales & Logistics Officer who is responsible for providing SIM (Subscribers Identification Module) cards and handsets to the subscribers and distribution of marketing items.

°  Dealers

02 persons are responsible in dealing with Dealers at Dhaka and Chittagong each. There are 03 Dealers at present-Flora, Grameen Telecom and Brothers

°  Corporate Sales Force

15 Officers are ready to serve any corporate clients in Dhaka and 10 persons in Chittagong.

 Marketing Department

Marketing department’s activities are converted in to two types of activity. They are

Market Research and Development and Market communication.

°  Market Research and Development

Market Research and development Department (MRD) is a vital part of GrameenPhone in terms of its importance and role. The central innovative department of GrameenPhone is MRD. This department facilitates communication between the different departments about existing and new products / packages of GrameenPhone. MRD also manages and co-ordinates information about different products. MRD evaluate the possibilities and develop new products.

MRD is responsible for communication with different departments about existing products. MRD get feedback from Sales, Customer Care and Market Communication departments regarding Customer needs and Market requirements. Feedback helps in redefining an existing product.

 New ideas are developed after evaluation of market demands. MRD gives shape and form to vague ideas in the process of developing a new product. MRD is responsible to co-ordinate with Operation & Maintenance, Information System and Billing departments to get solutions check the functionality of Product features and prices. Bundling and un- Bundling of services to create new packages can be a useful way of satisfying customer needs.

MRD department supports various departments in performing their job. After the market survey, for an example, they can suggest Radio Planning department about the approximate no. of  probable subscribers of a particular area and the potential of introducing service to that area.

 Market Analysis: 

1. Analyze both local & international Telecom market information which includes:

¨      Local Operators: Penetration rate, Growth rate, Market share, Call charges, Existing & Estimated Subscriber base and all relevant facts & figures.

¨      International Operators: Value Added Services (VAS), Call charges, New features etc.

1. Initiate statistical analysis on the basis of market survey.

 Long Term Planning

1. Initiate Roll out (network expansion) plans.
2. Generate new ideas to design & promote new services as well as modify existing.

Other Activities

1. Prepare both provisional & actual acquisition reports on a monthly basis.
2. Reply to subscribers’ letter.
3. Maintain intercommunication with other departments to carry out numerous future plans & actions.

 Market Planning and Analysis section works in two subunits:

 °  Market  Planning Unit

°  Strategic Analysis Unit

Responsibilities of Market Planning Unit

• Writing/Updating of Business Plan
• Writing/Updating of Marketing Plan
• Identify the segment to be communicated
• Develop strategies to communicate with the segment

Responsibilities of Strategic Analysis Unit:

°  Revenue analysis:

°  Total Revenue and Airtime Revenue-Zone-wise and Product-wise

°  ARPU and AARPU calculation both in taka and dollar

°  Age-wise subscriber’s revenue calculation

°  Monitor the revenue trend and identify if revenue is meeting the target

°  Do necessary calculation for revenue forecasting

°  Assist in revenue forecasting

°  Analysis of call pattern

Sales Analysis:

°  Maintain a database for zone-wise, product-wise and POS-wise new sales.

°  Update zone-wise and product-wise subscriber base

°  Prepare and update necessary chart and graph

Activities of Product Development & Management Section:

This section has two sub units.

Product Unit:

• Develop Product & modify the existing one.
• Prepare Price for Different campaigns.
• Project subscriber forecast & future revenue.
• Manage Test SIM of GP & IR.
• Involve with GP Number Plan Project. (Introduction of 7 digit for GP)

 Value Added Services Unit:

• Prepare plan to promote WAP for GP subscribers.
• Work for introduction of SMS Push/ Pull for Grameen Phone.
• Analysis of VAS revenue month wise.
• Manage GP news service.
• Liaison with outside agency to introduce new Value added service.

Special Assignment:

• This section also works to provide input for S & M Budget. Monitor cost & compare budget.
• Prepare S & M Monthly Report.

°  Market Communication

The functions of marketing department are manifold. However the main function can be articulated as to develop product and promote Concept building for promotional activities. It includes advertisement in the leasing dailies in the most effective manner within a given budget, to arrange out-door advertisement, hoarding, promotions of gift items like dairy, calendar etc.

 Publish monthly Newsletter of GP.

• Competitor’s activity analysis
• Concept building for promotional activities. It includes advertisement in the leading dailies and carry out promotional activities in the most effective manner within a given budget, to arrange out-door advertisement, hoarding, promotions of gift items like dairy, calendar etc.

Besides the above-mentioned functions, this department is also responsible for all kinds of publications of GP. It is the responsibility of the marketing department to design and publish monthly Newsletter of GP.

In the above-mentioned way, marketing department plays an important role in the smooth functioning of GP.

 Customer Relations Division

Organogram of Customer Relations Division

Customer Care or CMD

 Customer care is making the bridge between the customers and company. Besides Sales division it is the only department who deals customers directly. Sales department procures the business and Customer Care keeps the business with the company for long period. Once relationship is established Customer Care is doing the business with the subscribers. It works with the objective to meet all kinds of queries from customer and provide the optimum solutions. It works to ensure customers satisfaction and also to motivate the people in GrameenPhone service.

Responsibilities of Customer Care are unlimited. 4570. 2232

The Workforce:

There are 2232 personnel working under the supervision of one Additional General Manager and one Deputy General Manager.

 Purpose

 The purpose of the department encompasses the following.

• To receive queries
• To solve queries relating to GP service.
• To provide all sort of information.
• To solve any problem regarding network.

To ensure smooth operation Customer Care is providing services from two perspectives.

• Over  HOTLINES
• Through Information Center

 Image Center

 Image center gives support for all Queries by 121 number, which gives 24-hour service for the subscriber or Grameenphone. Information about bill and barred lines are opened here through verbal communication.

 Hotlines

 Image Center is committed to provide efficient, dedicated and reliable service to it valued subscribers. For customer’s convenience it has introduced three HOTLINE services of 24 hours to handle all queries regarding GrameenPhone’s network and services. Subscriber may call any time for all complaints and queries.

Hotline Numbers is 121.

 Information Center:

It provides on spot solutions as subscribers can physically go there and get services. It deals with the following areas.

1. 1.   Bill Clarification
2. 2.   Preparation of manual bill
3. 3.   Bill correction

Correspondence:

Beside these, Customer Care is receiving several written complaints and queries from subscribers over fax and by post. It replays with solutions through courier services.

Feedback:

To solve problems of customers and to provide information regarding GP network Customer Care gets indirect support from-

           1. Sales

 2. Marketing

 3. Information

Direct information / Exchange information from-

           1.Operation and maintenance

 2.Planning

 3.Billing

Customers do not buy features, customers only buy benefits. Subscribers only can ensure those benefits by receiving concrete information and services according to their requirement and here lays the responsibility of Customer Care.

 Billing

Billing department is and important segment of Customer Relations division. A total of 23 employees are rendering their services under the direct supervision to a Manager. This department is closely related with Customer Care, Sales, Information System, Switching Systems and Finance.

Responsibilities of this department includes

• Customer installation & validation
• Provisioning and withdrawing services
• Charging for the services provide
• Fraud management & credit control
• Billing
• Distribution
• Collection and
• Preservation of subscription documents

Procedure:

To perform this duty smoothly and efficiently, the responsibilities of this department have classified under the following several major headings; each of which is encompassed with different workload and responsibility.

• Registration, activation and information input in to CABS (Computer Aided Billing Software) section

This section is responsible for number allocation, registration & activation, charge installation deposit recording, migration (package to package migration), SIM change, address change, etc.

• Filling

This section is responsible for reserving subscription documents which includes subscription agreement, address change paper, migration, SIM change request, application for disconnection / reconnection etc. This is also their responsibility to verify subscriber’s signature for various reasons. Meeting requirements for hard of customer information is also their responsibility.

• Fraud management

This section controls credit, verify address of new subscribers for customer validation, reminding and suspends services for usage above credit limit, provide and obtain feedback to and from Customer Care.

•  Communication

The main function of communication unit is to take necessary action on the basis of received information from the subscribers, i.e. unbarring for bill payment and advance payment, disconnection, reconnection of service etc. This unit also transfer necessary information to other unit of the department and to other department.

• Billing & distribution

It includes distribution of bill, address verification letter, reminding letter, directory, newsletter and other documents, courier dealings, receive and obtain status report to and from CC (Customer Care) and information center.

• Business configuration and user administration

Business configuration, packaging, CABS user administration; trouble shooting is all the responsibility of this section.

• Reports and statistics

Reporting and reconciliation, information from CABS (Computer aided Billing System) database directory are the responsibility of this department.

Administration Division

 The term “Administration” is associated with misconceptions and controversies. Especially in the context of Bangladesh, it represents a bureaucratic organizational set up with typical characteristics of red-tapism, centralization of power and authority, favoritism, nepotism and so on.

Administration Division of GrameenPhone up with a view to breaks out from the so- called conventional system of bureaucracy and strives to be different in all respects.

Administration Division encourages to-

• Develop the leadership quality in such a manner that the organization can grow like a disciplined family.
• Reward for discipline, hard work and efficiency.
• Maintain a quality, conducive and enjoyable work environment.
• Maintain congenial and healthy interdepartmental relations to ensure uniformity in objectives.
• Work with an open system approach to ensure effective communication flow:

Administration Division believes in

• Team sprit, not individualism.
• Co-operation, not isolation.
• Decentralization, not centralization.
• Harmony not discords

 Organogram of Administration Division

Human Resources Department

Human Resources (HR) Department, an important department of Administration Division plays very vital role in the total functioning of GP. Employee recruitment, selection, transfer, promotion, training, performance appraisal – all these are conducted by HR division. The informal structure of HR according to its functions can be classified into three main categories they are:

• Human Resource Management (HRM)
• Human Resource Development (HRD)
• Human Resource management Information system (HR- MIS

Function of HR

HR Management functions:

Manpower planning is an important function of HR management section. Two major activities in this function are:

• Planning and forecasting the organizations short tern and long term human resource requirements.
• Analyzing the jobs in the organization and determining skills and abilities that are needed.

Manpower planning is a lengthy process involving several steps. It starts from need assessment and ends with recruitment

At first, all the departments after employee need analysis send their requirement to HRD through their respective divisions. After obtaining necessary approval from the management, HRD sets target, and prepare recruitment planning. According to job specification HR goes for recruitment.

Recruitment process is as follows

• Give advertisement in the daily newspapers
• Receive applications and file them,
• Shortlist of the applicants
• Fix date and time of a preliminary interview
• Contact with the applicants and inform them about the interview over telephone or letter
• Fix further date and time for final interview if it is required and inform the interviewee accordingly
• To prepare appointment letter for the finally selected interviewee
• Give appointment to the person with a detail job description.

Immediately after the recruitment separate employee file is opened comprising all the relevant information of the particular employee.   This personal file is prepared, maintained and updated by HRD.  In fact one of the main responsibilities of HRD is updating of all the personal file of the employee.

Performance appraisal is another main function of HR Management.  Performance appraisal is any personnel decision that influences the status of the employee regarding his confirmation, increment, promotion, and transfer.

GP performance appraisal takes place in two stages-

• On completion of probation
• On completion of one year of service.

Performance of an employee takes place by following some steps-

a)   Job analysis

b)   Set up performance standard and

c)    Appraisal interview.

Leave management

Leave management is an important function. HR has opened a leave management database to obtain current leave status of all the employees of GrameenPhone.  It provides employees about their leave status when it is necessary.

HR Management also deals with some personnel functions like show cause, termination, Dismissal, discharge, and resignation. It also issues circular as & when required, conduct department inquiry, and all other functions related to HR.

Human Resources Development

An organization’s performance and resulting productivity are directly proportional to the quantity and quality of its human resources.  While employee performance must be evaluated in economic terms of efficiency and effectiveness, it can be best achieved through recognizing and enhancing the human dignity of each employee.  The quality of the human resources can be effectively increased through education, training, and personal development.

Human Resources Development functions aim to increase the quality of the human resources especially through training

GP training involves the following steps-

• Assessing training needs
• Selection of the participants
• Conduct training programs

Different training programs of GP

GP Provides both local and overseas training on the basis of the need analysis of the employee.

Local training

Local training can be both-Inside GP and Outside GP.

Induction/Orientation training Program falls under inside GP training category.  After joining, it is the responsibility of the HR to conduct induction/orientation training to the newly recruited personnel to provide a general introduction of the company.  To prepare training plan, participant’s list, and training schedule for induction training – HR department does all.

Inside GP training will cover Management training will cover Management training and Department training in near future.

Out side GP training means to take part in training programs offered by different training institutions/universities on different subjects.

Overseas training: After need assessment employees who need overseas training are sent abroad for overseas training.  Expenses of overseas training are generally borne by GP.  The particular employee who has been selected for training has to sign a surety bond for specific period of time for overseas training.

Besides the above mentioned works, some routine functions of HRD are

• Prepare, maintain and update training related database.
• Prepare career development plan
• Prepare induction training manual/modules
• Evaluate training program
• Make agreement between GP & employees for overseas training
• To communicate with different local training institutions
• To communicate with trainers/instructors.

HR Management Information System

HR-MIS Functions involve-

• To maintain & update employee database
• Maintain employee related different statistics
• Any other works which requires updating employee data.

Though job has been classified and assigned according to the nature of the functions of HR Department, the job is accomplished and the responsibility is carried out co-operatively.

HRD plays a very crucial role in the functioning of GP. This is a very flexible and open department, as it always has to gather and store current and exact data and information regarding the employee and the organization.

Manpower planning is a lengthy process involving several steps; it starts from need assessment and ends with recruitment.

At first, all the departments after employee need analysis send their requirement to HRD through their respective divisions. After obtaining necessary approval from the management, HRD sets target, and prepare recruitment planning. According to job specification HR goes for recruitment.

Finance Division

Finance division comprises three departments, namely. Information systems. Finance and Procurement.

 Structure of Finance Division

Finance Department

Department of finance is an integral part of finance division. The main role of this department is define in under:

• Attends to financial planning and control
• Budget and budgetary control
• Provide management information
• Development of system and method
• Ensure proper internal control over the company
• Analysis of financial statement for future action
• Information flow for inter-department and external using
• Co-ordination with external organization and internal department.

Work Force of the Finance Department

Working team of this department consist a total nineteen (19) members including Executive Manager Finance who is responsible for overall and inter-departmental management of this department. For overall supervising and proper internal control purpose finance department device in four segments where a several section as required based on work volume and a manager (individuals) is responsible for all activities performed by the sections. At present there is a managerial position confirmed duly for accounts segment based in Dhaka. There is also a total Six-(06) accounts officers including Chittagong office and a cashier in the cash office based in Dhaka.

Job Responsibilities

Additional General Manager, Finance:

Manager finance is a position of this department who is responsible for overall supervising and interdepartmental management and ensures proper internal control over the Company. Usually he looks after the following activities:

• Attends to financial planning and control
• Supervising budget and budgetary control
• Provide management information
• Ensure proper internal control
• Attends to control over the cash/bank payment
• Development of system and method
• Supervising financial report and analysis for action plan
• Reporting to the internal management and external users
• Approving vouchers and participating
• Co-ordination with external organization and
• Internal departmental management.

Department of finance is an integral part of finance division. The main role of this department is define in under:

• Attends to financial planning and control
• Budget and budgetary control
• Provide management information
• Development of system and method
• Ensure proper internal control over the company
• Analysis of financial statement for future action
• Information flow for inter-department and external using
• Co-ordination with external organization and internal department.

Working team of this department consist a total nine (09) members including Executive Manager Finance who is responsible for overall and inter-departmental management of this department.  For Overall supervising and proper internal control purpose finance department device in four segments where a several section as required based on work volume and a manager (individuals) is responsible for all activities performed by the sections.  At present there is a managerial position confirmed duly for accounts segment based in Dhaka.  There is also a total Six-(06) accounts officer including Chittagong office and a cashier in the cash office based in Dhaka.

Job Responsibilities

Manager, Finance:

Manager finance is a position of this department who is responsible for overall supervising and interdepartmental management and ensures proper internal control over the Company.  Usually he looks after the following activities:

• Attends to financial planning and control
• Supervising budget and budgetary control
• Provide management information
• Ensure proper internal control
• Attends to control  over the cash/bank payment
• Development of system and method
• Supervising financial report and analysis for action plan
• Reporting to the internal management  and external users
• Approving vouchers and participating
• Co-ordination with external organization and

Internal departmental management:

Four managers are working in the finance department under the manager finance.  All managers (individually) in a department is responsible for their sectional activities and reporting to the manager finance.  And usually manager finance takes action after confirming the decision from Director of the division.

Manager Accounts:

Manager accounts usually looks after of his departmental works performed by individuals in its sections.   This department is one of the segments of finance department.

The main role of manager accounts define as under:

• Cash co-ordination
• Bank reconciliation and keeps bank documents
• Supervising booking of entries in a accounting soft-ware
• Preparation of vouchers and treasury statement
• Preparation of Periodical and annual accounts
• Checking of vouchers and bank payment
• Participation of budget and budgetary control
• Preparation of statement regarding invoices, suppliers credit and others
• Monthly revenue analysis based on billing document
• Accounts receivable considering security deposits and adjustment
• Approving voucher based  on volume of transaction
• Co-ordination with internal activities and other internal department.

In-addition to the above activities, manager accounts works with International Roaming department to assist the financial activities.

Cost and Budget Department:

The above department is one of the important segments of finance department.  At present there is no manager but a managerial position proposed in this department.  The functions of this department through several sections explain as under:

• Participation of financial planning and control
• Preparation budget and action for budgetary control
• Participation and co-ordination for procurement
• Maintain fixed assets software
• Fixed assets reporting periodically and annually
• Material accounting for consumable item and
• Accounting for inventory and physical counting
• Re-commendation for internal control
• Control over financial payment
• Report preparation for internal and external
• Co-ordination with inter departmental activities and
• Other internal department of the Company.

At present the above activities is done properly under supervision of the divisional director and manager of finance.  Accounts officers are also assist for the same.

 Payroll, Tax and External Affairs Department:

This is a very sensitive and important segment in finance department.  This department compiles the Companies Act.  And rules regulations of the Government.  This is also working as legal advisory of tax, VAT and other external affairs.  Presently there is no manager in this department but a managerial position proposed for overall supervising and proper internal activities through sectional works.  There is several sections based on work volume and criteria of the extended works.  The main role of this department defines as under:

• Preparation of payroll statement and bank advice
• Preparation of salary  perquisite and  return submission
• Preparation accounts and financial statement for tax and audit
• Company’s tax return and ensure assessment
• Ensure tax deduction and issuing certificate individuals
• Ensure treasury deposits for tax, VAT and deduction at source
• Supervising and arrange VAT register and reconciliation statement
• VAT return and revenue statement preparation
• Preparation VAT report periodically and annually
• Price declaration for service offering and ensure approval
•  Supervision Provident fund and ensure investment of fund
• Supervising welfare fund and ensure internal using
• Ensure work permit and foreign loan registration
• Internal audit co-ordination and external audit finalization
• Quarterly report to NBR (National Board of Revenue) regarding connection and handsets
• Return and relevant document submission to join Stock Registrar
• Co-ordination and corresponding with external organization and internal department.

 In-addition to the above activities, special tasks assigned by the departmental/management in lieu of emergency basis also performed by this department.  i.e. the Company secretarial affairs temporarily done by this department in supervision of manager finance.  And the payment statement regarding Govt. fees and royalty for handsets and base-station pursuant to the license agreement between GP and MOPT (Ministry of Post and Telecommunication).

    Chittagong Accounts:

There is a Chittagong accounts under the finance department and usually looks after the cash and band disbursement and monthly report for Dhaka office.  One accounts officer is working at Chittagong accounts under the supervision of manager finance.  At present there is no manager but a managerial position proposed in this department for work in the proper internal control purposes.

 The main role of this department define as under:

• Cash co-ordination
• Bank co-ordination
• Report perpetration for central accounts
• Control over cash/bank payment
• Co-ordination with external affairs and
• Internal departmental management

 Chittagong accounts also participating with the internal meeting and updating with Dhaka office.  Apartment and guest house expenses also controlled by Chittagong accounts.  But the revenue and collection not the part of Chittagong accounts but the casual salary paid by this department.

Four managers are working in the finance department under the manager finance. All managers (individually) in a department is responsible for their sectional activities and reporting to the manager finance. And usually manager finance takes action after confirming the decision from Director of the division.

Accounts Department

 Manager accounts usually looks after of his departmental works performed by individuals in its sections. This department is one of the segments of finance department.

The main role of manager accounts define as under:

• Cash co-ordination
• Bank reconciliation and keeps bank documents
• Supervising booking of entries in a accounting soft-ware
• Preparation of vouchers and treasury statement
• Preparation of Periodical and annual accounts
• Checking of vouchers and bank payment
• Participation of budget and budgetary control
• Preparation of statement regarding invoices, suppliers credit and others
• Monthly revenue analysis based on billing document
• Accounts receivable considering security deposits and adjustment
• Approving voucher based on volume of transaction
• Co-ordination with internal activities and other internal department.

In-addition to the above activities, manager accounts work with International Roaming department to assist the financial activities.

 Cost And Budget Department

 The above department is one of the important segments of finance department. At present there is no manager but a managerial position proposed in this department. The functions of this department through several sections explain as under:

• Participation of financial planning and control
• Preparation budget and action for budgetary control
• Participation and co-ordination for procurement
• Maintain fixed assets software
• Fixed assets reporting periodically and annually
• Material accounting for consumable item and
• Accounting for inventory and physical counting
• Re-commendation for internal control
• Control over financial payment
• Report preparation for internal and external
• Co-ordination with inter departmental activities and
• Other internal department of the Company.

At present the above activities is done properly under supervision of the divisional director and manager of finance. Accounts officers are also assist for the same.

Some are parts:

Evaluating Performance of GrameenPhone as the Leading Cellular Company in Bangladesh (Part 1)

Evaluating Performance of GrameenPhone as the Leading Cellular Company in Bangladesh (Part 2)

Evaluating Performance of GrameenPhone as the Leading Cellular Company in Bangladesh (Part 3)