Internship Report on Financial Analysis of Taletalk Bangladesh Limited

Teletalk Bangladesh Limited is a public limited company, registered under the Registrar of the Joint stock companies of Bangladesh.

1.1 Introduction:

Tele density of Bangladesh is still the lowest in South Asia, according to the statistics of the International Telecommunication Union (ITU). About 1.56% among 100 people has access to telecom facility. It shows the high potential in the telecommunication sector in Bangladesh. The existing telecommunication companies operating in Bangladesh have been enjoying competitive advantage because of less global competition but this scenario is soon to be changes as global giants are focusing on Bangladeshi markets with differentiated service and competitive advantages

1.2Telecommunication Sector in Bangladesh:

Telecom is a fast changing dynamic sector. Continuous change in technologies and opportunities created by such change and consequent impact on the customer/user necessitates changes and adaptation of policies in the sector. Countries which respond timely and appropriately to such change grow successfully whereas others who fail, lag behind, remaining trapped in the vicious circle of poverty and under-development.

Bangladesh being a developing country is fast trying to catch up with the developed world, and adapt its policies, in response to changing needs, opportunities and requirements in different sectors, including the telecom sector.

Due to the inherent dynamism of the telecom sector and the speed with which the change is taking place therein, there is a convergence of technologies, of knowledge, expertise, experience, and of policies and strategies, to achieve defined policy objectives.

In order to materialize the strategic vision behind liberalization of the telecom sector, the Bangladesh Govt. announced the national Telecom Policy 1998, with the main objective of creation of an environment of competition by establishing market oriented regime, appropriate sets of regulations, standards, procedures, conditions and investment climate so that the users have multiple choices for access to networks and market of different services, systems and carriers at a competitive and reasonable price. With a view to ensuring a level playing field for all operators in multi-operator environment, the Government in pursuance of the Bangladesh Telecom Act (BTA) 2001, established in July 2001, the Bangladesh Telecom Regulatory Commission (BTRC) which started its operation from 31st January, 2002. Previously, the Govt.’s Telecom Department BTTB, as per the Telegraph Act 1885, had the exclusive privilege of acting both telecom operator and regulator until 1995.

Presently there are seventeen operators in Bangladesh. Among these six are mobile operators and others are PSTN operators. The PSTN operators are Rankstel, Onetel, BanglaPhone, Jubok Phone, Peoples Telecom, National Telecom, SATel etc The mobile operators are as follows:

Citycell (Pacific Bangladesh Telecom Limited):
Robi:
Grameenphone:
Banglalink:
Teletalk (Teletalk Bangladesh Ltd)
Airtel:

1.3 Research Methodology
1.3.1 Origin of the Report:
Internship is a compulsory requirement for every student pursuing a MBA degree at the Faculty of Business Administration, International Islamic University of Chittagong (Dhaka Campus).
I have working Teletalk Bangladesh Ltd. so that I have work for my internee report to find out existing problems on Teletalk. The topic was set after discussion with the internship supervisor at IIUC. This internship report on ”Financial Analysis of Mobile phone industry in Bangladesh ”A study of Teletalk Ltd is submitted on 6th June 2011.

1.3.2 Objectives of the Study:
The broad objective was defined at first. This broad objective was fragmented into some smaller, clearer, specific objectives.

A) Broad Objective:
The broad objective of this study is to know about the Tele history of Bangladesh and analyze the present Customer Satisfaction of Teletalk Bangladesh Limited. and how to improving it.

B) Specific objectives:
To focus on the competitive advantages enjoyed by the Teletalk Bangladesh Ltd. over its competitors.
To understand the need gap of mobile services in different regions of Bangladesh
To know the preferences and expectations of the subscribers from a government owned mobile service providers in Bangladesh
To know subscribers’ perception of the current mobile services offered by existing providers in Bangladesh
To measure the sensitivity towards Tariff structure and acquisition cost of mobile connections.
To measure the present and past financial condition of Teletalk and compare with each other.
Find the financial problem and the solution from it.

1.3.3 Data Collection:
In most of the cases the selected organizations and persons were visited and the questionnaires were distributed to those organizations selected employees and subscribers for collecting data. A week later they were contacted to collect the responses but not all questionnaires were found completed. This part of the research was too difficult and painstaking because it required frequent visits to the respondents to collect all the responses. It took about 4 weeks to cover all the respondents.

1.3.3.1 Methodology:
At first I collect the primary and secondary data from various source of information. These data will be following by several steps in given below:

A) Sampling:

Definition of the Population:

Two major types of population were targeted for the study. Subscribers of different mobile operators are mainly the targeted population. There are many categories of mobile subscriber. For example, businesspersons, corporate clients, small and medium sized enterprises, employees, professionals, students all are Mobile subscriber. Therefore not all mobile subscribers have been considered as the population of this study. Rather, only the educated and organizations were considered as the population of the study.

B) Sampling Method:

Multistage random sampling was used for the selection of the sample. Since two types of target market were considered, the sampling was done in two different phases.
Sampling of organizations
Sampling of mobile subscribers.

1.3.3.2 Primary Source:

Questionnaire survey: I survey on dealers, subscribers and retailers and business market. My sample size is 40. But I consider the best 30 samples for implementing the information. It helps me to collect the information about the SWOT analysis of Teletalk Bangladesh Ltd and the market position of the company.

Interview collection from Management: I cover up the face-to-face and telephone interview among the interviewee for getting the vital information.

Conversion to the others: I have done the conversation among each other in the group and also discuses with my course instructor to institute the formation of report.

1.3.3.3 Secondary Study:

A monthly business magazine on Mobile phone technology named “GSM Technology” published in the Bangladesh was extremely helpful for the study. This study could be more informative if more issues of the magazine could be collected. The magazine focuses on the Mobile phone technology all over the world. The prime secondary source was “Teletalk website”, Goggle website, monthly magazine; some information was collected from the Internet from various web sites.

1.4 Data Analysis:

No complex analysis was performed in this study because this very new topic needs a primary research in our country. May be this primary study will then show the ways to go for in-depth study which may require more complex analysis of data. Method of rank order was conducted to find out the most important factors affecting the choice of Mobile Phone Company by subscriber.

1.5 Limitations:

The major limitation of the report is that it is mostly based on secondary studies and partially on primary analysis. Another limitation of the report is that it does not at the mobile industry comparing other substitutes and present investment environment of the country.

As, I had more dependence on the secondary sources, so there might be some level of inaccuracy with those collected information. Though, adequate verification and cross checking was used, to minimize the error level.
Confidential information regarding past marketing and sales information was not accurately obtained. Alike all other business holders also very conservative and strict in providing those information. Still I had tried my best in obtaining that sensitive information, as much as possible.
Many of the analysis on the obtained data are based upon my sole interpretation. This in result might bring some biases, as lack of knowledge and depth of understanding might hinder me to produce an absolute authentic and meaningful report.
Chapter-two
About Teletalk

Organization Overview

2.1 Background:
Teletalk Bangladesh Limited is a public limited company, registered under the Registrar of the Joint stock companies of Bangladesh. Total shares owned by the Government of the Peoples Republic of Bangladesh. We continue to grow and engage our customers through our clear commitment to offering high quality products and services as well as leading customer retention and loyalty programmers. Teletalk continues to be a part of the revolution that’s connecting millions of Bangladeshi people and around the world.
Teletalk Bangladesh limited was established keeping a specific role in mind. Teletalk has forged ahead and strengthened its path over the years and achieved some feats truly to be proud of, as the only Bangladeshi mobile operator and the only operator with 100% native technical and engineering human resource base, Teletalk thrives to become the true people’s phone – “Amader Phone”.
Starting of mobile telephone service through a state-run entity was the cherished dream of all people of Bangladesh. Bangladesh Government had honored the dream by including this issue in its election pledge. Our government had taken several positive steps for making this dream into a reality. Though money is very hard to come by in the national budget, our government had allocated approximately Taka 800 (eight hundred) crore for the mobile telephone project. We have also created the new company Teletalk Bangladesh Limited in 2004 to operate and render its services to the people. (The present government is committed to reach mobile telephony to the doorsteps of the common man at an affordable price. Teletalk, a state-run public mobile-telephone company was launched with that objective in mind. The venture has proved to be successful one, as the introduction of Teletalk has led to reduction of tariffs in mobile telephone services rendered by other providers as well. Teletalk is the only state-run mobile telephone

Service provider in the country. It has already completed one year of operation. In this year Teletalk has a story of success as well as failure. On the other hand, there is still undesirable weak or no network in some important places despite its best and sincere efforts.

People’s expectation from Teletalk is very high – people have shown tremendous enthusiasm to have a connection of Teletalk mobile phone. Therefore, Teletalk must honor its customers by improving its services day-by-day so that people may be proud of the organization. This state-run company should however, be given enough authority and freedom to expand its network and to provide more and more value added services to strengthen its position in the market. This will not only create a source of revenue for the Government but also give rare opportunity to the public to have better and quality services at cheaper rates.
Under these circumstances,the idea of establishing mobile telephone project (the project) in the public sector was conceived. Little of the Project was 10 ten Lakh T&T mobile telephone project (1st phase -2.5 lakh) at an estimated cost of tk 7.96 billion.
At present situation Teletalk subscribers 3million but active subscribers 2.6 million.

2.2 BTTB to execute the project :

The ECNEC of the Government of the peoples Republic of Bangladesh decided to from a separate public limited Company for implementation and operation of the project. Then the Bangladesh Telephone & Telegraph Board (BTTB), having longest experience of serving in the telecom sector in Bangladesh, undertook initiatives to from the desired company in public sector. In view of the fact that formation of a public limited company involves considerable time and various relevant formalities, it was decided that BTTB should implement the project and operation thereof would be carried out bu the desired company. Subsequently, the assets out of this process would be taken over by the desired company to be formed.

2.3 Commercial Launch of Teletalk:

The long awaited launching of a mobile telecom network by a state-run enterprise had finally materialized on 31 March 2005. It also fulfilled a cherished dream of people who continuously demanded to the government for such an enterprise. The government started the “Mobile Telephone Project” and Bangladesh Telegraph & Telephone Board (BTTB) was entrusted with the responsibility for implementing the same. The Project work started in June 2004 and the network was soft launched on 29 December 2004. I am happy that BTTB had been able to keep its promise and deliver in time.
Teletalk Bangladesh Ltd. was formed to operate the network installed by BTTB and it has been successful in operating a standard network and give proper service to the people of Bangladesh. Teletalk has introduced many attractive packages and all of them have been welcomed by the market. From the very beginning of it’s launching,

Teletalk got huge popularity as it triggered the true competition in the market. I am happy to know that within one year, Teletalk has covered 61 districts, 120 upazillas and most part of the three major highways of the country. However, there is still a long way to pass for improving its network.
People have high expectation from Teletalk. They expect continuous network coverage all over the country, prompt customer service, and more value added services, data services of high band-width etc. from Teletalk. Teletalk must honor its customers by improving its services day-by-day so that people can realize that even in a competitive scenario, the public sector organization can achieve remarkable development if they get opportunity.

2.4 Share Holder of Teletalk:

The Teletalk Ltd total number of share 6438661. The ministry of poat & Telecommunications (Government) keep total 6438639 number of share, Other only22number of share by public
Government 100%

2.5 Teletalk Participation in the share Market.
After acquiring the assets and upon increasing the paid up capital by that extent, as the Government. Decision the board of directors the company has approved to go for IPO@40as %TBL of paid up capital i.e. 257 core )in the capital market. Such decision of the board has also been communicated with the ministry of posts and Telecommunications for obtaining further guidelines.
2.6 Corporate Social Responsibility:
TBL is a socially responsible company. Our mobile service are in many ways a social service in itself; enable business improvements and new business development to participate in the development of the country. Our Corporate Social Responsibility program covers many aspects of life with special focus on health. Education and disaster management

CSR (Corporate Social Responsibility) During the financial year:

Teletalk believes in the empowerment of the people as well as the power inherent in all of us to collectively enforce positive change in our own lives. As a company still in its early years, Teletalk Bangladesh Limited still engaged itself in several CSR activities. Notables among them during the financial year have been described below:
Teletalk has established a short code SMS helpline for children with disability/diseases
The “666 – Helpline for Children” was established with a view to create a specialized fund for children with dire need of financial assistance. All SMS sent to this number will be charged and the amount will be retained in a special fund. This fund will be used for rehabilitation / treatment of the children
Children’s art initiative
Teletalk has created an unique outlet to acknowledge and encourage children’s art. With association from “Talent Promotion Initiative” Teletalk has arranged a children’s art competition, where children have engaged in a day long painting competition with Bangladeshi seasonal themes.Teletalk Bangladesh Limited then published a special “Billboard Calendar” based on selected pictures from the competitions.

Blanket Distribution Program
In Rangpur district Teletalk distributed 500 (Five Hundred) pieces of Blankets to the distressed people in the winter through Anjuman Mofidul Islam.

Medical Treatment for Bushra
Teletalk initiated a helping program for Bushra – a patient of blood cancer. One can send SMS for Bushra to help raise fund for medical treatment. For a girl of 3 year old needing bone marrow transplantation, Teletalk’s unique way of extending help as well as including the community at large was appreciated.

Blood Donation Program:
Teletalk has sponsored and directly participated in voluntary blood donation program. ORCA (Old Rajshahi Cadet Association) had organized a blood donation program which was sponsored by Teletalk.

2.7 Initial Capacity At the time of lunching:

With a capacity of 2.5 Lakh Mobile Phone, it is not possible to cover a network throughout Bangladesh. According to scope of the project this capacity is limited to all metropolitan cities, all district head quarters and three major highways. In spite of that, BTTB’s Mobile Project will cover about 275 Upazillas and growth centers.
Government decision to own a Mobile Company was to ensure fair competition between public and private companies. After the emergence of Teletalk Bangladesh Limited, rates & tariffs in the market have been reduced tremendously. Moreover all the mobile operators are now continuously trying to provide more value added quality services with cheaper rate. Only fair competition can ensure better service and Teletalk is a party to it.

2.8 Incorporation of Teletalk:

With the view described above, Teletalk Bangladesh Limited (the “Company”), being the only government sponsored mobile telephone company in country, was incorporated on 26 December, 2004 as a public limited company under the Companies Act, 1994 with an authorized capital of Tk.20,000,000,000. On the same day the Company obtained Certificate of Commencement of Business.

2.9 The Objectives of Teletalk:
1. To provide mobile telephone service to the people from the public sector
2. To ensure fair competition between public and private sectors and thereby to safeguard public interest
3. To meet a portion of unmitigated high demand of mobile telephone.
4. To create a new source of revenue for the government.

2.10 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.

2.11 Operating License:
The Company has obtained the Cellular Mobile Phone Operator License from Bangladesh Telecom Regulatory Commission (“BTRC”) on 1 September, 2004 for a period of 15 years. Initially the License was issued in the name of BTTB, and subsequently upon application, BTRC has changed the name of the operator as Teletalk Bangladesh Ltd. in place of BTTB. The Company has to operate within the GSM 900 and GSM 1800 bands as per slots allocated by BTRC.

2.12 Capital Structure and Acquisition of Assets:
The Company was incorporated with an authorized capital to Tk.2000 crore divided into 2 crore ordinary shares of Tk.1000/- each out of which the paid up capital was Tk.22000/- dividend into 22 ordinary shares of TK 1000/- each. Since the Company inherited the BTTB Project of 10 (ten) Lakh T&T Mobile Telephone Project (1st Phase-2.5 Lakh), the relevant equipment and infrastructures necessarily were in the name of erstwhile BTTB (now BTCL). Upon approval of government, the Company on 21 May, 2008, by executing a Vendors’ Agreement with the Ministry of Posts and Telecommunications, has acquired all the equipment and infrastructures valuing 6,438,639,000/-,thereby transferring the title of the relevant assets in its own name. In consideration 6,438,639 fully paid ordinary shares of Tk.1000/- each have been issued in the name of the Ministry of Posts and Telecommunications.

2.13 Teletalk’s Network Expansion Projects:
Teletalk initially started with the BTTB’s mobile telephone Project of 2.5 lac capacity. After implementation of the project by BTTB and operation of the same, the Board of Directors felt it necessary that in odder to thrive tn the stiff competitive market, Teletalk has to improve its services and expand its network on a continuous basis. With this end in view, the Board of Directors took up its expansion projects one after another.
The first phase of the network expansion project was approved by the Board in June, 2006 with a cost of Tk. 200 crore. The project was destined to increase the subscribers base by 8 lac. The entire project has been implemented by huynds from its own resources.
The Board of Directors has approved another expansion project of Tk.533 corr in July, 2008. This project has been targeted to increase its subscriber’s capacity by further 18 lac in its net. The project although has commenced on self-financing stages. Necessary L/Cs has already been established to import capital machineries.
With technological development in the telecom sector, the Board of Directors of the Company has been thinking to implement 3G technology and expansion of 2.5G network simultaneously. The DPP of the Project has already been submitted with the government of Bangladesh for consideration. The cost of the project has been estimated a more than Tk.2,000 crore. A long term loan with simple terms and conditions is expected from the Chinese government of Bangladesh has been under active consideration of the appropriate authorities. The destined project, if implemented, would add further 5 lac subscribers in the network.
After acquiring the assets and upon increasing the paid up capital by that extent, the Board of Directors of the Company has, on principle, agreed to off-load at least 25% of its shares in the capital market. Such decision of the Board has also been communicated with the Ministry of Posts and Telecommunications for obtaining further guidelines.

Operational activities and network expansion
The second phase of network expansion programme at a project cost of equivalent to taka5,330 million(including a foreign currency component equivalent to TK,2,730 million)financed from its own resources and partially by local banks has since taken off to yield a further capacity increase of 1.8 million of subscribers. At the initial stage, the pace of activities was somehow slow due to the Bangladesh banks regulatory measure; but with timely solution of the problem, that complicacy has been successfully overcome. However, after completion of the ongoing expansion programme, the total number of subscribers is expected 3.00 million.
Teletalk Bangladesh Limited has continually expanded its network, to better accommodate its growing customer base as well as to keep the promise of providing better service. As of now, Teletalk has already established its network foothold in 64 Districts, 402 Upazilas, and most of the highways. Teletalk is continuing its network expansion to reach more corners of Bangladesh.

3G Project:
Considering the advent modern telecom service for the subscribers, Teletalk has planned to launch another project named Introduction of 3G Technology and Expansion of 2.5G network. The implementations of the projects is proposed as January 2011 10 December 2012 and the project cost is BDT 19009.9 Millions. BDT 4239.9 Millions will be provided by Teletalk and BDT 1447 Millions (USD211 million) will be financed by china EXIM Bank as project aid. After the implementation of the project, Teletalk will able to cater additional 6.5 million new subscribers of which 4.00 million subscribers will be for 2.5G and 1.5 million for 3G subscriber. In other way, this project will increase the number of base stations by 1960 of 2.5G BTS and will introduce 600nos of 3G NodeB. Moreover the project will bring a set of modern revenue generating services such Mobile TV, Mobile Broadband and etc. In fiscal year of 2009-10, significant progresses on the
approval of GoB, Feasibility study by Chain EXIM Bank and project planning have been done.After launching of the project Teletalk will able to play a significant role in the building Digital Bangladesh through e-education, e-Public health, e-Commerce,e-Government, High speed communication network services.

2.14 Teletalk’s Services:
The Company has country-wide strong telecom network covering 61 district headquarters, major upazillas and highways. It has 21 customer care centers throughout the country. Teletalk offers a wide range of services to its customers. Teletalk has different packages of like GPRS, Push-Pull services, SMS, Telecharge, Post-paid connection, Pre-paid connections etc. Like other operators, Teletalk has different value added services like, Color Ring Back Tone (CRBT), Pre-paid Bonus, E-Pay System.

Different Packages of Teletalk:
Teletalk offers a wide range of services to its customers. Following are an outline of the services presently available with Teletalk.

GPRS:
Teletalk offers unlimited internet browsing facility for TK.800 per month or only 2 paisa per minute on actual usage basis for both post-paid and subscribers. One can use this facility by using data-cable in computer also. Handsets with GPRS option enable this facility. Through Teletalk GPRS, the subscribers can use the facilities like browsing, email, internet chatting, data transfer etc.

Push-pull services:
Like ordinary SMS, one can receive answer to a question s/he asks. By using this push-pull service, one can have the latest updates of important events like cricket matches. Besides, other important information like weather forecast, prayer time, quotes, horoscopes and especially sehri-iftar timing during ramadhan are also available.

SMS:
An SMS of 160 characters each for TK.1.00 only available both in English and Bangla.

ISD and EISD:
Every subscriber of Teletalk gets the opportunity of Economy ISD / (EISD) to more than 50 countries @ TK.7.50 per minute. Under this facility, the subscriber should dial 012 (instead of dialing access code 00), then country code, then area code and finally the desired number.

Telecharge:
Teletalk, very recently, has introduced ‘Electronic Recharge’ system termed as ‘Telecharge’. This system enables the subscribers to recharge their accounts by any denominations within the range from TK.10 to TK.5,000. The subscriber is not required to buy any scratch cards for such recharge.

Variety of connections:
Like all other mobile operators, Teletalk’s connections are broadly divided into post-paid, pre-paid and PCO (public cal office) connections. Varieties in post-paid and pre-paid SIMs are briefed under:

Post-paid:
Post-paid package has been designed for high user group, the entire country being considered as a single zone. The subscribers can select three numbers that provide them reduced tariff round the clock.

Rajanigondha:
At a connection fee of TK.950 only, it enables the user to have the facility of 1 second pulse and 3 fnf connectivity with no monthly line rent. Minimum monthly bill is TK.500 only but no security deposit.

Shapla:
With connection fee of TK.590 only, Shapla provides lowest call charge of TK.40 at all time to any operator. This has additional advantage of migration from any post-paid connection. This connection needs minimum monthly bill of TK.1,000 with security deposit of TK.1,500 only.

Pre-paid Standard:
This has no line rent. The whole country is a single zone. This package also offers reduced tariff of two Teletalk numbers or one Teletalk and one T& T number round the clock. The first pulse is 30 second and the subsequent pulses are of 15 seconds.

Padma:
This package had been designed for subscribers living outside the metropolitan areas of Dhaka, Narayangonj and Gazipur. Subscribers however can use this SIM with the metropolitan areas, but need to pay some additional charges. Connection fee is cheaper than other packages. Scratch cards validity is life-time and other facilities are same as of other pre-paid packages. All the connections of Teletalk provide free incoming facility. In
addition to above, few more value added services, as described hereunder, are in the pipeline and expected to be operative very soon:

Colour Ring Back Tone: The subscribers will be able to define by themselves the ring back tone, if desired, to be heard by a caller.
Pre paid Bonus: Pre paid subscribers will be given automated bonus package in terms of their volume of calls made from Teletalk.
E-Pay system: By using this system, not only the subscribers of the Company, any person will be able to pay bill for his/her utility services through nominated agents of the Company without hassle of going to banks.
Missed call Alerts: The subscribers, even if disconnected from network, will be informed (on re-connection) of all the calls made to his phone during the period of disconnection.
2.15 Organgram of Teletalk:
The company has a board of Directors consisting of Chairman and Managing Director and Govt. High officials. Then One Board Secretary performs task as a representative of the Board of Directors. There are seven General Managers are responsible for different Departments. All GMs directly report to MD. Every GM is supported by Deputy General Manager, Manager, Deputy Manager and Assistant Managers.

Figure: 1 Organogram

The diagram shown above is up to manager level of each department. There are some non-managerial posts such as Junior Officers and Associates; those mainly perform at the execution level of all operations.

2.16 Functions of Each Department:
Marketing Department
System Engineering
Operation
IT & Billing
Procurement
External Coordination
Customer Care
Finance
Human Resource

2.16.1 Marketing Department:
Marketing is one of the leading departments in any organization. Teletalk’s Marketing department is not a exception of that. Marketing department of Teletalk consists of several wings. Some major wings of Marketing department with some of its functionalities are described below:

Value Added Services (VAS):
Teletalk provides various kinds of value added services. Some popular services of this category are Friends and Family (FnF), Push-Pull, Voice mail service, Bangla SMS, International SMS, Internet SMS etc Some VAS services are developed by this wing and some are procured from content providers. This wing of MKT is fully responsible for and initiating demandable services and selecting appropriate content providers for those.

1. Tele charge:
Tele Charge means a customer pays his bills directly from any stalls where the shopkeeper will receive money in favour of Teletalk and send SMS to Tele Charge system mentioning the paid amount of subscriber. Within a few minutes the subscriber’s account is recharged. This wing ensures the successful operation of this service.

2. International Roaming:
One of the major services of Teletalk is International Roaming. This wing of Marketing takes initiatives to make contract with operators of other countries. After successful testing between Teletalk network and the network of other parties, new roaming partner comes on live.
3. Sales & Distribution:
Teletalk mainly sales SIM cards, Scratch cards to its dealers and customer care centers. And there many items which needs to distribute among the dealers. For example- when Teletalk launches new packages, some sorts posters are needed to distribute among the dealers.
4. Dealer Management:
Teletalk does business with accumulating many dealers to distribute its SIM cards and many items. In reply dealer gets a commission on selling amount. To control, monitor and their commission processing this wing is busy all day.

5. Market Research & Development:
Present market condition, its trend, prediction & forecast, analysis of existing packages are the main working arena of this wing.

6. Media & Advertisement:
Advertisements on print media an electronic media are provided from this wing of marketing department. The themes of lucrative ads on electronic media some times developed from this department and finally implemented from out sourcing. And advertisements on print media are completely prepared by the skill individuals of this wing.

7. Corporate:
Corporate subscribers are the potential customers for any mobile company. This wing of MKT always tries to enhance this type of subscribers and ensures better services to them.

8. Marketing System of Teletalk Bangladesh Ltd:
Product
Price
Promotion
Place
8.1 Service:
Teletalk is a service based industry. So it always tries to maintain the quality of the service when it serves to the customers. And teletalk has done the job by offering different type of package.

8.2 Price:
Pricing is one of the marketing mix tools that a company uses to achieve it marketing objectives. Teletalk decides its service pricing on the basis of cost based pricing. They always think about the consumer purchase capability. That’s why they try to fix a reasonable price for the consumer.

8.3 Promotion:
Promotion is one of the marketing tools that a company uses to achieve its marketing objectives. Each promotion tools has unique characteristics to improve their total sales. Teletalk are trying to do more promotional activities for their service. Teletalk Marketing promotion can be classified in several steps:

8.4 Advertising:
Teletalk first promotional activity is advertising. They know that advertising is the way where massage could be delivered to the consumers mind. And this Massage can be delivered to the consumer by the sound, music, choreography, lighting and performer appearance. Advertisement massage must be believable, meaningful and distinctive. Advertising can be used to buildup a long-term image for a product and also can trigger quick sales. So that they invest a huge amount of money for advertise to create a brand loyal customer.

Advertising media:
Newspaper
Web site
Magazine
TV Chanel

8.5 Personal Selling
Personal presentation by the firm sales force for the purpose of making sales and building customer relationship. Teletalk uses personal selling in different stages of marketing and distribution. Company distributes their product (SIM, Scratch, Cash card) among the wholesalers and retailers by maintaining the excellent relationship.

8.6 Sales Promotion:
Sales promotion includes a wide way of tools that can attract consumer’s attraction, strong incentive of purchase, free gifts, discount and several types of occasional program.
PHP sales promotion includes credit sales, commission etc. PHP arrange conference every year among the dealers, wholesalers and retailers. They always try to influence and convince them for creating a market demand and sale their product.

8.7 Public Relation:
Public relation is used to promote products, people, places, ideas, activities, organizations and even nations. Public relation can also influence a product sales or brand awareness. Teletalk arrange meeting always with the wholesalers and retailer for maintaining a good relationship with them.

8.8 Place:
Place is very much important for product sale. Place depends on good location, transportation facility, availability, channels etc. and teletalk select a right place named Banani, from this place people can easily buy the product and there transportation system is very easy and available.

8.9 Marketing System:
Product
Price
Promotion
Place

8.10 Service:
Teletalk is a service based industry. So it always tries to maintain the quality of the service when it serves to the customers. And teletalk has done the job by offering different type of package.

8.11 Price:
Pricing is one of the marketing mix tools that a company uses to achieve it marketing objectives. Teletalk decides its service pricing on the basis of cost based pricing. They always think about the consumer purchase capability. That’s why they try to fix a reasonable price for the consumer.

8.12 Promotion:
Promotion is one of the marketing tools that a company uses to achieve its marketing objectives. Each promotion tools has unique characteristics to improve their total sales. Teletalk are trying to do more promotional activities for their service. Teletalk Marketing promotion can be classified in several steps:

8.13 Advertising:
Teletalk first promotional activity is advertising. They know that advertising is the way where massage could be delivered to the consumers mind. And this Massage can be delivered to the consumer by the sound, music, choreography, lighting and performer appearance. Advertisement massage must be believable, meaningful and distinctive. Advertising can be used to buildup a long-term image for a product and also can trigger quick sales. So that they invest a huge amount of money for advertise to create a brand loyal customer.

Advertising media:
Newspaper
Web site
Magazine
TV Channel

8.14 Personal Selling:
Personal presentation by the firm sales force for the purpose of making sales and building customer relationship. Teletalk uses personal selling in different stages of marketing and distribution. Company distributes their product (SIM, Scratch, Cash card) among the wholesalers and retailers by maintaining the excellent relationship.

8.16 Sales Promotion:
Sales promotion includes a wide way of tools that can attract consumer’s attraction, strong incentive of purchase, free gifts, discount and several types of occasional program. PHP sales promotion includes credit sales, commission etc. PHP arrange conference every year among the dealers, wholesalers and retailers. They always try to influence and convince them for creating a market demand and sale their product.

8.17 Public Relation:
Public relation is used to promote products, people, places, ideas, activities, organizations and even nations. Public relation can also influence a product sales or brand awareness. Teletalk arrange meeting always with the wholesalers and retailer for maintaining a good relationship with them.
8.18 Place:
Place is very much important for product sale. Place depends on good location, transportation facility, availability, channels etc. and teletalk select a right place named Banani, from this place people can easily buy the product and there transportation system is very easy and available.

8.19 SIM sale in Different Customer Care Point:
Beside these, as a Government owned companies there are so many problems in Teletalk they are:
* Some Value-Added Services are not successful
* Poor Brand Image
* Not so good relations with media & channel partners
* Poor publications
2.15.2 System Engineering:
There are two sections in System Engineering Department. These are given below.
1. Planning:
Planning Section is responsible for BTS link, Backbone, any necessary installation of specialized telecom hardware like Soft-switch, MSC, Intelligent Network etc and overall network planning. This department also provides any new concept to update the existing network. At present Teletalk has the following major network infrastructure.

Figure: 2 Teletalk Network Diagram

2.Project:
This wing has some major sub sections according to the classifications of jobs. These are as follows:
Civil: This wing performs the design works for tower of BTS.

Earthling: In some cases BTS-tower requires some sorts of earting operation to test the feasibility of tower construction prior actual implementation.

DC-Power: In the new site of network, the supply of DC-power is generated and finally tested prior implementation.

Transmission: This wing is responsible to tie the new site under the existing network using the radio link. It consists of three antenna and two microwave links. Three antenna constitute three existing cells and two microwave link connects the new site with the nearest site and BSS.
Installation & Commissioning: this wing receives network hardware from vendor companies and performs works for installation of new sites. When planning has been made then it is sent to the Procurement department to purchase the necessary product for the Project implementation.
2.16.3 Operations:
This department consists of several wings. Along with the description of different wings of this department a complete network diagram is presented here.

1. Base Station Subsystem (BSS)
This is the largest wing among all the section of this department. Many officers are needed to regulate the necessary activities of this wing. Whenever a new site goes on air, it automatically comes under the supervision of this department. It has 24-hours moving team, whose responsibility is to ensure the recovery of any down BTS within the quickest possible time. Besides this section also performs other activities like Optimization of Network, Drive Test, Neighboring Cell frequency Test, Carrier to interference Level and Re commissioning

2. Transmission
This section is also classified in to two categories according to the scope of the job. These are described below:

BSS-Transmission: This wing simply ensures the connectivity from remote tower to BSS.

Back Bone Transmission: It establishes the optical fiber connectivity across the Teletalk network element.
3. Soft-switch
Teletalk has two soft-switches, important network element for mobile connectivity. This wing mainly performs all operational and maintenance activities of these elements.
4. Central zone
This wing is actually concerned about the network element, Intelligent Network (IN). IN can be thought of as the billing system for pre-paid users.

5. Other zone
MSC, the switches, are the concerning part of this wing. Some highly skilled and trained employees of Teletalk are responsible for its operational and maintenance activities.

2.16.4 IT & Billing:

IT & Billing combines the Post-paid Billing section and the Information Technology part of Teletalk. So there are two streams of workflow exists in this department.

 Billing Section:
The workflow in this section is also sub-divided into four categories. These are given below:

1. Issuing Invoices, Providing benefits and solving problems of Post-Paid users:
This part involves the activities of New Subscribers activation, ensuring accurate charging, accuracy of all payment records and in-time delivery of monthly invoices to the customers. This part also includes the task of ensuring the benefits and services received by Post-paid subscribers.

2. International Roaming:
This is one of the important functions provided by Billing. Activation of Roaming service, ensuring correct charging of in-roamer and out-roamer and performing test for selection of new roaming partners are some major task of this wing.

3. Inter-Operator Billing:
This function is to revenue sharing among all other telecom operators in Bangladesh. Teletalk Billing system has a wing of Partner relationship management where this task is executed. Here invoices are prepared for both the receivable and payable. Other operators also prepare this type of invoices and send those to Teletalk. Then reconciliation has been performed and actual receivables and payable amounts are determined.

4. New Post-Paid Package implementation and modification:
Post-paid packages are the non-tangible products of Mobile Company. Through this lots of attractive features and benefits are combined in order to pursue the mass people to use their mobile services. It’s a very common scenario for a mobile company to change their packages and benefits within very short time. This part of billing section performs this sort of changes in Post-paid packages of Teletalk.

 IT:
The functions of this wing are divided into six categories.
1. Extension and Maintenance of Computer Network
This is the most important function of IT. Any extensions of existing network among all the sites of Teletalk are performed with the involvement of the officials of this section.

2. IP Phone maintenance
All the sites of Teletalk are under the network of IP-PBX system. IT has the full responsibility to implement and maintenance activities of IP Phone system.

3. Maintaining the inventory of all Hardware necessary for individual employee
In Teletalk there are several hundreds of PCs, laptops; printers are present among all the departments. IT has the records of all hardware and maintains a inventory of it. Any new requirement from other department is come first to IT, then accumulating all requirements IT collects quotations from different sellers and mentioning the suitable seller IT sends request to approval authority for necessary fund allocation:

4. Troubleshooting of computer peripherals
IT section has some skilled employees who solve the day-to-day problems of computer peripherals used in all departments. Another inventory has been maintained for this purpose.

5. Office automation
This is another on-demand function of IT section. Teletalk owns the office automation software such as Enterprise Resource Planning(ERP). IT has the sole responsibility to familiar this product among the employees through proper training and must ensure the effective use of this software. The time-to-time maintenance is also task of IT.

6. Development wing
IT section also performs some development works such as the website of Teletalk, Automated cheque printing software, commission calculation of dealers are some examples of development works.

2.16.5 Procurement:

Teletalk must follow the written PPT (Procurement Policies of Teletalk) to purchase any thing. Depending on the situation, Teletalk uses various kinds of procurement method, such as common, special, limited and restricted categories of tenders, Direct Quotation Method (DQM), Spot Quotaion Method (SQM), Purchase from Open Market (POM) etc. this department also determines the policies of frame work i,e way of receiving goods either within three months, six months or in a year. Based on the source of procurement, it has two wings.

1. Local Procurement:
Teletalk needs to procure many items from the local market such as AC, generators, Laptops, PCs, Servers, tower construction equipments etc.

2. Foreign Procurement:
All special categories of telecom hardware equipments are bought from foreign countries. For example, MSC, CRBT Intelligent Network (IN), Billing Servers, Soft-switch etc. Except that Teletalk also purchase SIM cards and sometime scratch cards from foreign countries.
2.16.6 External Co-ordination:

This department mainly exchanges information with the outsiders. There are two wings through the department is functioning its activities.

1. EC
Some regular reports are sent to Bangladesh Telecommunication Regulatory Commission (BTRC). For example total number of subscribers, total number of BTS etc. Since Teletalk uses frequencies assigned by BTRC, the charge known as Spectrum Charge are paid through this department. Further more the license fee is also paid through this department according to the instruction of BTRC. These are all about the out flow of information from Teletalk. On the other hand, if BTRC proposes new rules and regulations, the Teletalk is informed through this department. Except that the guidelines of designing service packages are also received from BTRC. Sometimes this wing performs some promotional activities or deciding to be sponsor of any welfare activities.

2. Inter Operator Relations:
At present an association has been formed among the mobile operators of Bangladesh, called AMTOB (Association of Mobile Telecom Operation in Bangladesh). Being a member of the association, this wing provides all sorts of reports and transmits its comments on every conflicting issue on behalf of Teletalk.
2.16.7 Customer Care:

Teletalk is a service company and obviously the customers are the life of Teletalk. Customers’ satisfaction is the earnest goal of this company. And this department acts as a medium to communicate directly with customers. So, from the organizational point of view customer care contains huge significance among all the departments. In all divisional districts Teletalk has set up customer care centers. At present there are eighteen customer care centers in all over Bangladesh.

2.16.8 Finance:

1. Finance:
This wing performs the most important task for Teletalk like fund management where the source of funds and its allocations are managed. Since Teletalk involves lots of foreign purchase, LC open and its accounts maintaining is also a part of work of this department. Vat calculation and its proper transformation from one end to other end is also ensured from this department.

2. Budget:
The Finance section performs various financial activities such as yearly budget formation, Monthly Inter Operator Billing, Revenue Calculation from different sources on daily basis, Performing cross checking of bill collection with Billing department, monitoring bank balance before and after all sorts of operation, dispute analysis on operator basis and on source basis.

3. Accounts:
This section does Accounts design, Inventory maintenance design, A/C Transaction, Annually financial statement based on IAS-International Accounting Standard, MIS report. VAT at time of Procurement and payment to contractors to ensure the VAT and Income Tax rule and regulations, maintenance of bank Account maintenance and to assist to external auditor.

2.16.9 Human Resource:

Human Resource Department plays a vital role in the overall process of the company. With the passage of time, the importance of HR-department is drawing significances, since Teletalk expanses from its initial stage and many people are involving with this advancing journey of Teletalk. At present more than three hundreds of employees are working in Teletalk. Considering the present job responsibilities, HR is sub-divided into several wings.

1. Personnel Management
This wing performs the following important activities such as Human resource planning, Recruitment, Grievances handling, compensation management, posting etc

2. Administration
This wing works for leave management, medical & transport facilities, welfare allowances and every legal affairs of the company.

3. Human Resource Development
This wing is responsible for development of employees through appropriate training programs and motivation of employees through time based evaluation and appraisal

Chapter-Three
SWOT Analysis

3.1 SWOT Analysis:
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying theinternal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. The overall aspects of SWOT analysis can be easily described with following diagram:

Figure: 1 Definition of SWOT

3.1.1Strength:

 Teletalk is the only one state owned mobile company of Bangladesh. Being a part of Government administration, Teletalk enjoys lots of administrative and business benefits. For example: The government of Bangladesh has given license of 2.5G & 3G network to some of the existing mobile operators(The implementation of the project is proposed as january 2011 to December 2012). Teletalk owns this license only because it’s state owned company.

 Among all the operators Teletalk was given the privileges to publish S.S.C./ H.S.C., Degree results. Just because of the initiatives of the Government, Teletalk enjoys this privilege.

 Sometimes Teletalk runs with some sorts of financial crisis. At that moment Governments can arrange or manage loans to overcome the crisis.

 Along with the additional privileges, Teletalk owns a highly qualified bunch of professionals whose dedication and hard work have great impacts on the achievements of Teletalk.
3.1.2Weakness:

 The major weakness of Teletalk is the slowness of the decision making process. As a result it sometimes compels to face some unwanted competition among other companies and sometimes it even incurs losses. Since telecom is one of the growing sectors in Bangladesh, dynamic decisions should be taken at proper time.

 Being a mobile company, the success depends on the expansion of network as much as possible and effective marketing with required customer cares. So, the co-ordination among those important fields is the most important factor to sustain in the competitive market. Teletalk is lagging this sort of co-ordination from the standard mark.

 To meet the existing demands of cellular phones and to provide maximum service Teletalk needs more individuals who will work in line with the existing dedicated members. The total manpower is quite below to the minimum requirement

..

3.1.3Opportunities:

 People of Bangladesh naturally like to use the country products very much and they are inspired to use Teletalk’s service with true patriotic feelings. Getting consistent with this emotion, Teletalk represents itself as “Amader Phone” and says to mass: “Keep Country’s Money within the Country”. If Teletalk provides similar services like other foreign companies, obviously people will welcome Teletalk with great care.

 Teletalk has become profitable government companies because of true dedication and day-night efforts of its all staffs who are highly qualified and experienced. If their contributions are evaluated by the Teletalk management with care and incentives, bonuses, performance appraisals can be provided with a timely fashion, existing employees will be highly motivated to create any radical advancement of Teletalk.
3.1.4 Threats:

 Although Teletalk is a state owned mobile company, it contains a very few market share. The maximum market shares are occupied by Grameen Phone, Banglalink, Robi and other foreign companies. Teletalk faces tremendous competition in the mobile industries because of these highly equipped foreign organizations. If one company lessens the call rate, the other companies also offer lesser rate.
 Similar Service are offered by other Telecom nation Company as like as GP, Robi, Banglalink, Airtel

Since Teletalk is a governments’ company, government can interrupt the usual decision flow of the organization, which in turn may cause unnecessary delay in activities. So, sometimes the government itself acts as threat.

Notes:  Some Important notes

4.3 Ratio analysis of Teletalk Bangladesh Ltd.

(A)       Liquidity Ratio:

I.  Current Ratio: 

For Teletalk June 30, 2008-2010

Telltale’s acid-test is weak. Strong current ratio and week acid-test indicates a potential problem in the inventory account.

(B)       Financial Leverage Ratios:

II. Debt-to-total assets ratio

III. Total Capitalization Ratio:

For TeletalkJune 30, 2010-2008

Teletalk financed by long – term debt utilization ratio 0.11, 0.18 and 0.17 in the year 2010, 2009 and 2008.

(C)    Profitability Ratio:

Teletalk Bangladesh Ltd. gross margin ration increase 2008 to 2010.

I. Net Profit Margin Ratio:

For Teletalk Bangladesh Ltd June 30, 2010-2008

Teletalk Bangladesh Ltd. net margin ration decline 2008 to 2010.

II. Return on Investment

Teletalk Bangladesh Ltd. Return on Investment ratio is falling 2008-2010.

III. Return on Equity:

For Square Pharmaceuticals December 31, 2005-2007

Teletalk Bangladesh Ltd Return on Equity ratio is falling 2008-2010.

4.4 Capital Structure:

Definition:

Simply capital structure defined as a mixture of Debt and Capital or Financing mix. It’s depends on the nature of the firm and manager intensity. It could be 100% of equity. There are thousand of combination is possible in the capital structure of Firm.

Optimum capital Structure:

The mixture of capital structure which balancing the risk and return of investment in a flexible way and reduce the cost of investment. is called Optimum capital structure.

4.5 Factors affecting capital structure:

Business Risk:

When the expected returned don’t matches with the actual return then it’s consider as business risk. Business risk is arises from ineffective operation of the firm which is also called systematic risk. Deviation occurs because of low quality of products, weak marketing channel, less demand for products.

Tax position:

Tax position also affects the firm positively or negatively. When the firm has strong earning capacity then the firm may issues debt. Which help from payment of tax. But if the firm has lower earning trends then should not issue debt to take tax advantage

Financial flexibility:

When the firm has rules of Turing the debt holder to share holders then the firm trends for debt issuing would be more. So this factor has an impact on the capital structure.

Managerial attitude toward Borrowings:                                                      

If the manager of firm is aggressive in nature, they would like to take more debt in order to take tax advantage and risk of the firm also increase proportionately. Other hand, if the manger is conservative in nature who doesn’t like to take risk, he may not issue debt.

Financial risk:

If the firm has any fixed cost item in its capital structure then the firm should not issue more debt. The higher would be the fixed cost the higher would be the risk. Fixed cost item are debenture, preferred stock.
Chapter- Five
Findings & Analysis

5.1 Problem in the Finance of Teletalk:

By the above analysis I find the following problems in Taletalk Bangladesh Ltd. Finance wings.

 Shortage of working Capital.
 Insufficient fund for new investment.
 Shortage of fund for network expansion.
 Problem for quick Decision making.
 In confidence of the subscribers about teletalk network
 Poor Work Delegation Structure.
 Lack of co-ordination among the employees & departments.
 Lack of potential and efficient employee.
 Shortage of Logistics Supports
 Dealer Insufficiency
 Lack of accounting information system.
 Increasing revenue
 Increasing Inventories.
 Increasing operating expanses.
 Poor Brand Image.
 Poor reputation among customers.
 Shifts consumer tastes.
 Lower promotional activities.
 Packages are not so lucrative.
Subscribers are not conscious about all packages & Value-Added Services.
Lack of after sales service.

5.2 How to improve the financial problems of Teletalk:

 First and main problem of the Teletalk Bangladesh Ltd. is fund problem this problem over come by collecting fund:
 This fund may be collect by short term lone.
 Fund may be collect by IPO.
 Teletalk Bangladesh Ltd has some opportunity to get soft lone from china. This lone may be paid by 15 years.
 Collect short-term loan from Commercial Bank.
 Teletalk Bangladesh Ltd. can take the soft loan for new investment.
 By Improve the information system and by employing experts to take a good & quick decision making
 Ensuring Improved Network Quality for the satisfaction of the customer.
 Employing qualified employee & make perfect them by proper trainning.
 Improve the Interaction between the employees and make them helpful to each other.
 Improve the Logistic system by a systematic way.
 Teletalk Bangladesh Ltd. main revenue comes from the Dealers sales so that Teletalk Bangladesh Ltd. must be improving the Dealers Management system.
 Teletalk Bangladesh Ltd. can improve the Accounting information system by implementing a Central software system.
 Teletalk can decrease the inventories by improve the sales by implementing different Marketing strategy.

Conclusions:

At last we can Say that Teletalk is a growing up but at present the Company no profits, After three year Teletalk Ltd profitable Sectors because new technology 2.5G,3G established in the Company. At present Teletalk ltd subscribers 3 million but active subscribers 2.6 million.
Teletalk try to providing and to do so, it has established country-wide strong telecom network coverage at all districts, upazillas and Highways. Teletalk established 23customer care Center, 22,420 SIM Retailed center, 520 SIM Replacement Point, 30,090 Telecharge Centers and 79 number of countrywide. Also Teletalk has international Roaming services with 54 operators of 38 countries worldwide.
The company also thinks about the new consumers as well. If the company can ensure such types of situation and follows the recommendations those are cover in this report,
So I hope Teletalk Ltd as soon as profitable