1.

0 Introduction

1.1 Introduction to the Topic:

MBA academic program is the building up of the theoretical knowledge

about business administration which is the base of practical knowledge.
MBA internship program is an attempt to provide business students an
orientation to a real life business situation in which we can observe and
evaluate the use and applicability of the theoretical concepts which were
taught in the classrooms. As per norm this report is the requirement of the
fulfillment of the internship program. This report “” is the out come of my
works in GrameenPhone Ltd.

1.2 Objectives of the study:

1.2.1 Primary Objectives:

1 To discuss about telecommunication business in Bangladesh.

2 To present a background and introduction of GrameenPhone
Ltd.
3 To focus on the business and operations of the company.
4 To discuss about the activity of the Revenue Accounting Unit of
GrameenPhone Ltd.
5 To focus on the most resent financial improvement and market
position of GrameenPhone Ltd.
6 To make comparison between actual and budget and analyze
the financial statement of the organization.
7 To analyze the growth and revenue and determine the impact.
8 Identify the findings of analysis and recommend based on the
findings.
9 To provide information of my responsibilities while working as
an internee.
 1.2.2 Secondary Objectives:

1 To have Knowledge on GrameenPhone Ltd. and Mobile

industry.
2 To improve corresponding and report writing ability.
3 To fulfill requirement of the internship program.

1.3 Scope of the Study:

The scope of the study is limited within telecommunication business in

Bangladesh. It is also limited within the organization of GrameenPhone Ltd.
and for that reason that information was very much restrictive within the
organization as the telecommunication business is going to be very much
competitive. Here I discuss with the topics related to the profile of the
organization, Human Resources activities and Financial Statement of
GrameenPhone Ltd.

1.4 Limitations:

1 The company does not have sufficient source of secondary data

and collecting of data was not smooth.

2 Analyzing financial data is much more confusing and complicated

than any other data.

3 It was really difficult for me to accumulate confidential financial data.

1.5 Methodology:

For the purpose of the study data and information have been collected from
both primary and secondary sources. The relevant information collected
from primary sources is collected in an informal way. My work experience
in GP helped me a lot. Besides this, regular conversations with many GP
employees and I have interviewed and taken some suggestions orally from
the personnel of GrameenPhone Ltd. The secondary sources for data
collection were published annual reports, monthly financial newsletters of
GP and monthly newsletters of GrameenPhone Ltd
1. Company Background

GrameenPhone Ltd. has stepped into its 10th year of operation, having
completed its ninth yearon March 26, 2006. It is the leading telecommunications
service provider in the country with more
than 10 million subscribers as of December 2006. GrameenPhone has been
recognized for building a quality network with the widest coverage across the
country while offering innovative products and services and committed after-
sales service.

Historical background of the company

Grameen Phone (GP) is the largest cell-phone operator in Bangladesh. GP was

given the cellular license in 28th November 1996 by the ministry of Posts and
Telecommunications. Later in March 26th 1997, they offered their service in
Dhaka city and gradually covered the entire country. GP, in collaboration with
Grameen Bank, is aiming to place one phone in each village to contribute
significantly to the economic uplift of those villages. GP’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, GP 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 GP’s network. GP employ’s a large number of employees who are
young, dedicated and energetic. GP knows that the talents and energy of its
employees are critical to its operation and treats them accordingly.

The technology used by GP can only be described as state of the art. GP’s
Global System for Mobile or GSM technology is the most widely accepted digital
system in the world, currently used by over 300 million people in 150 countries.
GSM brings the most advanced developments in cellular technology at a
reasonable cost by spurring severe competition among manufacturers and
driving down the cost of equipment. Thus consumers get the best for the least.

GP is best known for its service rather than its low tariff and value added
services. GP 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.

As a result GP is delivering the digital revolution to the doorsteps of the poor and
unconnected. By being able to connect to urban areas or even to foreign
countries, a whole new world of opportunity is opening up for the villagers in
Bangladesh. Grameen Bank borrowers who provide the services are uplifting
themselves economically through a new means of income generation while at the
same time providing valuable phone service to their fellow villagers. The
telephone is a weapon against poverty.
 GP Milestones and critical events . . .

Nov’ 96 - Received license.

Mar’ 97 - Launched services in Dhaka.
July 99 - Signed loan agreements with IFC/CDC/ADB of USD 50M.
Aug’99- Launched first Prepaid Service.
Feb’ 00 - Received GSM Community Award from GSM World Congress,
France.
Mar’ 00- US President Bill Clinton visited Bangladesh and GP Village
Pay Phone
program was highlighted to him.
Jun’ 00 - Covered all 6 divisional towns.
Jun’ 00 - Crossed 100,000 subscribers.
Mar’ 03- Received Bangladesh Business Awards 2002 as best Joint
Venture Enterprise of the year jointly organized by The Daily
Star and DHL.
Aug’ 03- Reached 1,000,000 Subscriber base.
Aug’ 04- Reached 2,000,000 Subscriber base.
Apr’ 05- Reached 3,000,000 Subscriber base.
Aug’ 05- Reached 4,000,000 Subscriber base.
Dec’ 05- Reached 5,000,000 Subscriber base.
Jan’ 06- Reached 6,000,00 Subscriber base.
May’ 06- Reached 7,000,000 Subscriber base.
Jun’ 06- Reached 8,000,000 Subscriber base.
Aug’ 06- Reached 9,000,000 Subscriber base.
Nov ’06 Reached 10,000,000 Subscriber base.

GrameenPhone Limited, the number one and leading mobile phone company in
the area of telecommunications in Bangladesh. Of four mobile operators, GP
managed to grab 69% of the market share only by providing cost-effective & best
service available in the market of mobile telecommunication. GP has made its
expansion not only in the urban areas, but also it stretched its network in the rural
areas for the economic empowerment of the rural people. GrameenPhone has
made a special arrangement with Grameen Telecom, an affiliate of Grameen
Bank in providing the cellular services in the rural country.

GP believes Excellency in its service towards its subscribers. It is growing and at

the same time being competitive. To keep up this upward trend and leading
position absolute dedication to understanding and fulfilling their customer needs
with the appropriate mix of standard service, reliability, improved technology and
skilled as well as dedicated manpower is necessary.

2. Mission, Objectives and Strategy

Vision

Grameenphone's vision is simple: We're here to help. Grameenphone's

renewed Vision recognizes that we exist to help our customers get the full benefit
of communications services in their daily lives. The key to achieving this is that
we work together and draw on our renewed Values and build them into guiding
light behaviors in our workplace, wherever that may be... Make it easy. Keep
promises. Be inspiring. Be respectful.
Four simple statements, but when embraced by Grameenphone people around
the world, they will help transform Grameenphone into the global driving force for
modern communications and customer satisfaction we need to become.

Value Statements:

Make it Easy-

We're practical. We don't over complicate things. Everything we produce should

be easy to understand and use. No waste. No jargon. Because we never forget
we're trying to make customers' lives easier.

Keep Promises-

Everything we set out to do should work, or if you don't get it, we're here to help.
We're about delivery, not over promising - actions not words.

Be inspiring-
We are creative. We strive to bring energy into the things we do. Everything we
produce should look good, modern and fresh. We are passionate about our
business and customers.

Be respectful-

We acknowledge and respect local cultures. We do not impose one formula

worldwide. We want to be a part of local communities wherever we operate. We
believe loyalty has to be earned.

Objectives of the company

GrameenPhone has a dual purpose to receive an economic return on its

investments and to contribute to the economic development of Bangladesh
where telecommunications can play a critical role. This is why GrameenPhone, in
collaboration with Grameen Bank and Grameen Telecom, is aiming to place one
phone in each village to contribute significantly to the economic benefit of the
poor.

The Strategies

Grameenphone’s strategy is coverage of both urban and rural areas. In contract

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 Grameenphone’s network.

The People

The people who are making it happen- the employees are young, dedicated and
energetic. All of them are well educated at home or abroad, with both sexes
(gender) and minority groups in Bangladesh being well represented. They know
win their in hearts that GrameenPhone is more than phones. This sense of
purpose gives them the dedication and the drive, production-in about eight years-
the biggest coverage and subscriber-base in the country. GrameenPhone knows
that the talents and energy of its employees are critical to its operation and treats
them accordingly.

The Technology

Grameenphone’s Global System for Mobile or GSM technology is the most

widely accepted digital system in the world, currently used by over 900 million
people in 150 countries. GSM brings the most advanced development in cellular
technology at a reasonable cost by spurring severe competition among
manufactures and driving down the cost of equipment. Thus consumers get the
best for the least.

The Service

Grameenphone’s 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.

The Result

By bringing electronic connectivity to rural Bangladesh GrameenPhone is

bringing the digital revolution to the doorsteps of the poor and unconnected. By
being able to connect to urban areas or even to foreign countries, a completely
New World of opportunities are opening up for the villagers in Bangladesh.
Grameen Bank borrowers who provide the services are uplifting themselves
economically through a new means of income generation while at the same time
providing valuable phone service to their fellow villagers. The telephone is a
weapon against poverty. GrameenPhone Ltd. completed its eighth year of
operation and crossed the three million-subscribers mark in early 2005.
It is a remarkable achievement indeed. The GP service was only launched on
March 26, 1997. In July 2001, GrameenPhone was identified by EMC, the
London-based mobile phone market research firm, as the fastest growing and
single- largest mobile phone company in the South Asian region. The mobile
phone sector of the country has also matured during this period. In fact, mobile
phone users now outnumber the fixed-line telephone subscribers in the country.

The Village Phone Program is another innovative GP initiative launched in

collaboration with Grameen Telecom, a shareholder of the company. Introduced
in 1997, this unique service provides telecommunication services in remote rural
areas where no such facilities existed before. Moreover, it also provides an
income generating opportunity for the Phone operators, mostly rural poor
women. The village Phone Program won the GSM in the Community Award
given at the GSM World Congress held in Cannes, France in February 2000.

Strategic objectives

GrameenPhone wants to maintain the lead and to overtake the competitors in the
country is what GrameenPhone has been dedicated to seeking.
It wants to provide all its employees with challenging and rewarding work,
satisfying working conditions, and opportunities for personal development,
advancement, and competitive compensation.
It wants to capture bigger market share.
It wants to achieve low operating costs.
It wants to offer broader and more attractive research for its products.
It wants to enhance the satisfaction of its consumers.

Financial objectives

GrameenPhone Ltd wants to earn growth in revenues and earnings.

It wants to earn wider profit margin.
It wants to realize higher return on invested capital.
3. Company Structure

The Shareholders

Telenor AS

Telenor AS (62%) is the state-owned Telecommunications Company in Norway,

a country with one of the highest mobile phone densities in the world. Telenor
has played a pioneering role in development of cellular communications,
particularly, but not exclusively, GSM technology. In addition to Norway and
Bangladesh, Telenor owns GSM companies in Portugal, Denmark, Greece,
Austria, Hungary, Russia, Ukraine, and Montenegro, Thailand and in Malaysia.
Telenor is using the expertise it has gained in its home and international markets
and putting it to use in an emerging market such as Bangladesh. Telenor has
many alliances in other countries, bringing experience and competence, both
technological and business, to ventures such as GrameenPhone. Telenor has
opened a regional Asia office in Singapore, an expansion that emphasizes its ‘No
Barriers motto.

Grameen Telecom

Grameen Telecom (38%) is a not-for-profit organization and a sister concern of

Share Holding structure

38%

62%

Telenor Grameen Telecom

Grameen Bank, the internationally

recognized bank for the poor with an expansive rural network and extensive
understanding of the economic needs of the rural population. Grameen Telecom,
with the help of Grameen Bank, administers the Village Phone services to the
villagers and trains the operators as well as handles all service-related issues.
Grameen Bank covers 40,486 villages, or 60 percent of rural Bangladesh through
its 1175 bank branches. Grameen Telecom’s objectives are to provide easy
access to telephones in rural Bangladesh, introduce a new income-generating
source for villagers, bring the Information Revolution to villages and prove that
telecommunications can serve as a weapon against poverty.

Organizational Structure

Board of Directors
Operational Committee
Treasury Committee

Erik Aas
Managing Director
MD’s Secretariat

Syed Yamin Bakht

General Manager, Information
Stein Nævdal-Larsen

Ahmed Raihan Shamsi

CMO
Deputy Director, Company Secretary.
Head of Director Head of Head of
Head of
Marketing Sales and CMD
N K A Mobin Distribution Village Phone CRM

Director, Projects

Farhad F Ahmad
Md. Arif Al Islam Head of Supp
General Manager, Internal Audit Director, Finance
Lutfor Rahman
Acting Head of IT Khalid Hasan
Director, Regulatory & Corporate Affairs
Md. Shafiqul Islam
Chief Technical Officer
Emad Ul Ameen
Kafil H. S. Muyeed Director, Human Resources
Director, New Business

Frank Fodstad
Deputy Managing Director

Head of RA & Head of Project

Director Head of Efficiency
FM Legal & Director
Fiber Optic Admin Projects
Compliance CHQ
GrameenPhone has a board of directors headed by a Chairman. There are five
directors on be half of the shareholders. Board of directors primarily looks after
the activities of the managing director and this is the appointing authority of
managing director. Board of directors mainly conserve the interests of the
shareholders. The managing director directly reports to the Board of directors.
GP have 5 divisions and 3 departments each having a director. All the directors
report directly to the managing director. The GP organogram has gone through
many changes over the years due to company re-structuring.

Grameenphone Management Team

Name Designation Division

Erik Aas Managing Director
Frank Fodstad Deputy Managing Director
Stein Naevdal Chief Marketing Officer Commercial Division
Emad Ul Ameen Director Human Resources
Ingvald Lyche Director Sales & Distribution
Kafil H. S. Muyeed Director New Businesses
Khalid Hasan Director Corporate Affairs
Md. Arif Al Islam Director Finance
Md. Shafiqul Islam Chief Technical Officer Technical
Rubaba Dowla Matin Head of Marketing Marketing
4. Market size and Coverage

The total market size of the mobile

As the figure shows (green

meaning network coverage),
Grameenphone has almost
continuous coverage throughout
Bangladesh, apart from the hill
districts of Chittagong and some
patches of Sunderbans.

Overall mobile phone

penetration rate: 12%
Fixed network penetration rate:
0.83%

industry is 13.26 million approximately, as of June 2006. Of this 63.9% of the

market share is occupied by GP, 18.67% by Aktel, 12.1% by Banglalink, 3.92%
by CityCell and 1.47% by TeleTalk (as of October 2006).
Among the products offered by GP, the pre-paid mobile to mobile subscription,
Smile, has the majority of subscribers amounting to more than 50% of GP
subscriptions. The youth brand 'djuice' has climbed up to take the second
position. Post paid subscriptions namely Explore 1 & 2, GPPP and Village Phone
have around 500,000 subscribers among them.

GP is the first in the industry to provide bundle products whereby subscribers can
get a predefined number of minutes free for a monthly fee. Anytime 500, post
paid mobile to mobile subscription has some 5, 811 subscribers while GPPP,
post paid subscription with PSTN connectivity has around 9,000 subscribers as
of June 2006.
The popular Village Phone program has acquired more than 300,000 subscribers
under its program as of 2006.

Coverage
This refers to the area throughout Bangladesh is covered by GP. At present 61
districts and 506 upazillas are covered by GP.

Analyses of Strategies

a. Business Level Strategy:

The Company wants to penetrate the market by offering reasonable prices. But
the real catch lies in the fact that GP offers quality, innovation and added
features (services) rather than going for a price based competition. To achieve
superior quality in its products, it follows total quality management (TQM) that
helps it in the following ways: Improved quality means that costs decrease
because of less rework, fewer mistakes, fewer delays and better use of time and
materials
As a result, productivity improves. Better quality leads to higher market share.
This increases the company’s profitability and allows it to stay in business. To
achieve superior quality, it implements the following things:
• Build organizational commitment to quality.
• Focus on the consumers (their needs).
• Find ways to measure quality.
• Set quality goals and create incentives (performance bonus).
• Identify defects and trace them at source.

b. Human resource strategy:

The number of total staff is more than 1500. The company wants to increase
training for its support staff to increase the ability to fix a problem on the first
service call and to reduce the period of time consumers have to wait for technical
help. GrameenPhone Ltd wants to recruit top talents in every department of the
company.
c. Marketing strategy (4Ps):
EOY 2006
Products Strategy: Grameenphone has
Over 8,900 Point of Sales
worked to provide its subscribers with Over 5,700 Base Stations
continuously innovative products and 310 Roaming Partners (in 115
Countries)
services.
We have redefined the mobile landscape of Bangladesh with our innovative pre-
paid and post-paid products and valued added services in the market.
We are continuously working to make our products easier to use and easier to
understand.
This is the Company’s edge against the competitors – providing better products
and services… and providing it FIRST!

Price strategy: The Company follows penetration-pricing policy. It offers the

quality product at the cheapest price.

Promotional strategy: The company follows mass promotional strategy.

Promotional media include TV, daily newspapers, billboard, transportation
advertising etc.

Distribution: The company has developed its own distribution network consisting
of more than 700 points. It has its own distribution vehicle and number of
employees to deliver products. As a result, it has more control over distribution.
5. Some Products and Services Offered by
Grameenphone

Grameenphone’s major products

• Explore 1 - Post paid mobile with PSTN connectivity

• Explore 2 - Post paid with no line rent, 1 second pulse and
bundle talk-time offer
• Smile - Prepaid mobile to mobile
• Smile with PSTN - Prepaid with PSTN connectivity
• Djuice - The first segment (youth) based mobile offering in
Bangladesh market; it’s a prepaid product
• GP Public Phone - This post paid product was designed for commercial
heavy users
• Business Solution - This unique segment-based products are targeted
for corporate & SME users as part of overall
communication solutions of a business house
• Village phone - Distributed by Grameen Telecom this product aims
at income generation through communication &
enterprise development for rural poor and destitute
women.

Value Added Service(VAS)

GrameenPhone also introduced a number of value-added services during the

last eight years. It may be noted that GrameenPhone was the first mobile phone
operator in the country to introduce value-added services like Voice Mail Service,
Text Mail Service and fax and data transmission services. GrameenPhone also
launched the Wireless Application Protocol (WAP).
International Roaming (IR)

The International Roaming facility is another useful service provided by

GrameenPhone. Subscribers of the GP Regular and Anytime 450 service can
use their mobile phones in many foreign countries with this facility while
subscribers of other networks can also use their mobile phones when they are in
Bangladesh. Presently GrameenPhone has International Roaming agreements
with more than 240 mobile phone operators in 80 countries.

To avail International Roaming, a GP subscriber must contact GP’s Sales Center

in Dhaka, Chittagong, Sylhet, or Khulna; and payments should be made through
International Credit cards from a dollar denominated account.

SMS chat

The user would be able to chat through SMS with many friends at once through
the mobile phone.

SMS (Short Message Service)

With this service, you can receive and send Text Messages (a maximum of 160
characters per message) to any GP or other mobile and to foreign operators'
(international) mobiles as well (conditions apply).

SMS Push-Pull Services

With Push-Pull service, you can enjoy more than 160 contents (Ex: Usage Info,
Payment Status of last bill, Sports news, Emergency numbers, Restaurants,
Airline and Railway timing, travel info etc.).

Voice Mail Service (VMS)

VMS works like an answering machine. When you are not available or outside
the coverage area or simply busy, the caller can leave a message in your voice
mail box, which you may listen or retrieve at your convenience.
Fax and Data

This service enables a GrameenPhone subscriber to send/receive fax and data

through their handsets by connecting to a PC/Laptop. Currently, this service is
offered to corporate clients only.

EDGE / GPRS service

This service allows the subscribers to browse the internet , send or receive e-
mails and use all the advances of multi-media messaging in a 3rd generation
mobile environment.

Cell E-mail

Cell E-mail is a state-of the art Technology which offers e-mail service through
SMS. It possesses almost all the aspects of standard webmail and most
importantly it is compatible with almost all GSM handset. Thus providing a way to
use email to the subscribers who don’t have access to Internet. Inforev Limited a
local ICT solution Provider company is providing the solution on behalf of
GrameenPhone Ltd.

Hotline Service 121

24 Hour Customer Services regarding any problems

6. SWOT Analysis

STRENGTHS:

• Being the largest player in the market, GP has a considerable amount of

hold in the market. The strengths of GrameenPhone are as follows:

• Established Brand: The branding activities have led GrameenPhone to

build a strong brand. The mother brand is placed on the same platform as
other renowned brands like British American Tobacco, Citicorp etc in
Bangladesh.
• Low start up cost: A low start up cost required to reach out to the public.

• Individualism: Although GrameenPhone has close affiliation with its

multinational parent company, GrameenPhone has an independent brand
identity in the market.

• Experience in telecom market: Most of the Point of Sale (POS) i.e. the GP
outlets has experience on selling telecom product. GP has the largest
distribution channel in Bangladesh, which enables to offer their product in
every corner of Bangladesh.

• Well located Point of Sales (POS): All the POS’s are situated in good
location, which ensures easy access for all the consumers of the product.

• Economies of scale: GP has now reached a stage where it enjoys

economies of scale to the fullest extent. If any new punk, i.e. any new
entrant tries to dig its way in by low tariff, then GP can easily counter that
problem by following suit but without any losses as they are low cost
producers already.

• Attractive profiling of POS which attracts the customers.

• Wide Acceptability: The branding activities and the service of

GrameenPhone have earned 69% of the market share.

• Market Awareness: GP has wide distribution network and good knowledge

of this and therefore serves the market demand accordingly.

• Widest Coverage: GP has covered all over the country.

 • Extensive Market presence (availability): To make telecommunication
accessible to the mass market, GP has set up its POS in the most
convenient areas of the districts under the GP network.

• Customers Trust: Wide connectivity, easy communication and affordable

price have earned customer confidence and made people depended on GP
on a day to day basis.

WEAKNESS:

• Every company has its weak points and GP is no exception to that rule.
The weaknesses of GP are:

• No Copyright: The GP brands are not protected by copyrights, which has

led to the misuse of the branding attributes and bears the risk of such
misusage in future as well.

• Market follower: GP is not market leader as they follow others. GP is good

at following suit rather than innovation. The proof of this can be seen now,
as its rivals reduce tariffs and increase the increased validity of the prepaid
service, GP immediately followed suit. In fact it came up with a whole new
package called DJUICE, consisting of reduced call rates. This attitude of GP
is a very big weakness as new subscribers are immediately attracted to the
price cut of GP’s rivals and by the time GP follows suit, it would have lost
the potential subscribers to its rivals.

• Lack of innovation: GP still now does not have the latest mobile Internet
technology, which by the way is quite old and did not start MMS, i.e.
multimedia messaging. This is a major setback for GP as new funky stuff
 always attracts young and enthusiastic subscribers and thereby increasing
the revenue for GP.

• Lack of working capital for Outlet and Individual agents: This is a major
setback for GP as most of the retailers cannot provide optimum service and
thereby hurting GP’s image to some extent.

• Lack of well-trained personnel: Because of this, the sales personnel lack

the convincing power to convince people to use GP’s connection.

• Sub brands are not well established.

• Billing System: The abrupt barring of connection due to a complicated

billing system confuses the customers. Such hassles lead to an unfavorable
impression for the company.

• Network Limitation: Call drop, congestion, and poor connectivity with

BTTB result in bad image of the company.

OPPORTUNITIES:

• Opportunities for GP are endless. They have the money and experience to
diversify.
• The main opportunities for GrameenPhone would be:

• Brand Value of GP: GP products are well known for its services and
quality. Because of this goodwill many potential subscribers might be
attracted to GP

• To have continuous presence of GP all over Bangladesh.

• Helpful attitude from GP personnel. People want pampering.

• Marketing support provided by GP. The sales and distribution channel is

supported by GP, which gives the channel a wider opportunity.

• New licenses complementing GSM telephony.

• Strategic alliances with airtime vendors (service providers) would bring

opportunities for further development.

• More international roaming partners.

• Good pre paid service would bring more revenue.

• Ownership of distribution partners.

• Stock return facility. Many retailers are attracted to sell GP products as GP

has a policy to take back unsold stock.

• Stock receiving facility on credit. Retailers also appreciate this facility to

getting stock on credit and pay later.

• Hand set and Kit lifting from the same point. GP sells all cellular related
products at the same place. So it is convenient for the consumer to get
every thing under one roof.

• Better utilization of IT resources which would give GP the opportunity for

faster growth.
 • Sophisticated and flexible billing system.

• Introducing rental phones.

• Increased sale of village phone through Grameen Banks infrastructure.

• Automation of routines and procedures.

• Availability of concern contact point of GP. No matter what the time is,
there is always someone at GP to answer all the subscribers’ queries.

THREATS:

• No matter how big or small, companies will always have threats that
question their very existence. However some threats remains within the
company itself rather than from its rivals or the anticipated newcomers.
These threats could arise from the strategies adopted by the company, in
this case GP, which prohibit GP to function smoothly.

• The threats for GrameenPhone would be:

• Public demand for discount on price. Everyday consumers are demanding

lower tariffs and better quality. This might pose a threat to GP.

• GP is anticipating a possible threat from the new entrant BTTB. The state
owned fixed-line monopoly BTTB has entered the market with extremely low
tariffs. It is thought that the competitive environment that prevails today
might be destabilized as BTTB starts operating at full potential. Currently
BTTB poses very little threat to GP as they have just started their operation.
• Fluctuations in the foreign exchange market as another area of concern
while possible changes in fiscal policies like the tax regime may also have a
negative growth of the mobile phone sector. The import duty on Handsets
has been re-fixed at BDT 3000 for a handset costing over BDT 10000 and
BDT 4000 for a handset costing over BDT 10000. This would replace the
existing BDT 2500 flat rate of import duty on handsets.

• According to recent study, even the existing cost of doing cellular telecom
business in Bangladesh is relatively much higher than that of the
neighboring countries because of the higher cost of leasing infrastructure,
regulatory hindrances, high import duty on handsets, and high cost of
interconnection. For example, the infrastructure leasing cost from BTTB per
E-1 PCM in Bangladesh is about 10 times higher compared to that in other
countries of the south Asian Region.

• Split sale. Day by day consumers are spread out to many other
competitors in the market.

• Higher commission provided by the competitor cellular phone providers.

This discourages the various sales agent selling GP products

• Lack of interconnection with fixed network

• Inadequate information flow regarding future planning of GP. If the

consumer knows the future packages or the coverage expansion of GP in
the future, then many subscribers can make decision in buying GP before
they even think about other cellular companies.

• Change in regulations having negative effect on its business

 • Tremendous sales pressure from GP. The sales and distribution system of
GP is under severe pressure all the time to increase the sales figure. We all
know that pressure doesn’t always achieve the desired level of sales, but it
might disrupt it.

• Political favoritism to other operators.

• Imposing sudden decision. The sales and distribution network has to cope
with sudden decisions at times. This hampers the smooth functioning of the
entire system.

• Decision making without prior consultation. Some decisions are made

without consulting the sales personnel.

• In addition, Voice over IP, launch of new operators and other operators’
prepaid service would be some of the threats for GP.

7. Corporate Social Responsibility

As a socially responsible company, GrameenPhone actively participated for the

development of cricket in the country, especially for the youth development
program of cricket. GrameenPhone recently entered into an agreement to
sponsor the Bangladesh National Cricket Team.

GP was also the only company from Bangladesh, which worked for the
development of primary education under the auspices of UNICEF. When called
upon, GrameenPhone also rendered cooperation to a number of cultural
activities, with emphasis on children’s development. Efforts of the GP Family and
the continued support of valued subscribers is also very important and which
they are committed to have. It is their valued subscribers-for whom they exist.
GrameenPhone looks forward to working hand-in-hand for the development of
the country.

Orphanage Project

The orphanage is situated at Vatara Bazar, Baridhara, Dhaka. At present 75

children are residing there. Twenty five staff are employed for overall look after of
the children. The children are aged between 4 and 15 years.

Management committee: The orphanage is a project of CDP(Children

development program) and is funded by Telenor, the major(51%) share holder of
GP. Telenor is the State owned telecommunication company in Norway
operating since 1885. On behalf of Telenor, GrameenPhone provides various
services to the dwellers of the orphanage.

General services: The orphanage provides basic need like Food, Clothings,
Lodging, Education and Medical services to the dwellers.

Activities of Grameen Phone: Grameen Phone provides basic health service and
entertainment facilities to the orphanage round the year.

a) Regular Check Up: A medical team including Dr. Mohammad Shahnewaz,

Manager, Health Safety & Environment of Human Resource Department of GP
provided regular general Medical Check Up to the Children & Staff of the
orphanage. Yearly twice

b) Nutrition Chart: To provide proper nutrition through daily diet for the children,
GP expert team supplies nutrition charts to the orphanage and supervises the
followup process.

c) Need Basis Medical Services: When anybody gets sick in the orphanage GP
provides the preliminary medical services.
d) Preventive Measures: To prevent deadly diseases like Hepatitis B, GP
provides Vaccination to the orphans.

e) Training: Creating awareness about personal hygiene, safety and preventive

steps against various common diseases is the main purpose for providing Health
& Hygiene training by GP team to the orphanage Staff & Children.

f) Other: Grameen Phone has donated modern toys and playing equipments to
the orphanage play corner with a view to provide entertainment facilities to the
children.
Entertainment activities: PICNIC

Outcome: The project is directed to establish the basic foundation of life of the
orphans.

Dhaka Shishu Hospital Project

Grameen Phone has sponsored one of the wards of Dhaka Shishu Hospital
(ward #4) with various utility facilities like:

a) Pure Drinking Water: A water purifier has been supplied by Grameen Phone to
this ward consisting of 54 beds to provide pure drinking water to the patients and
their attendants

b) Bed linen, utensils, mosquito net etc are also provided to this ward by GP

c) The maintenance part of this ward is also taken care of by GP.

Preventive & Protective measures against some deadly diseases

a) Awareness buildup:
 i) To create awareness against deadly diseases like dengue GP has
published articles dealing with the preventive and protective measure of this
disease in their monthly newsletter and in form of booklets.

ii) GP has also provided in field and in house training to create awareness
among people of different classes of society.

iii) GP uses its sources in its regional offices in Chittagong, Rajshahi, Khulna
And Sylhet to create awareness against this disease in those cities.

b) Spraying against Mosquito: With collaboration to Dhaka City Corporation GP

has sprayed aerosol for destroying mosquito in areas like Fourth class
employees colony of D.C.C in Gulshan1,Gp office premises and in locality of
Gulshan circle 1 & 2.

c) Cleanliness Program: GP has sponsored Cleanliness programs in its own

locality and in slam areas of Gulshan to prevent the breeding of mosquitoes and
for healthy environment.

Other Socially Responsible Activities

Awareness about EPI diseases: Grameen Phone has extended its hand of
cooperation in generating awareness about EPI diseases by helping UNICEF in
arranging various programs in this regard. GP sponsored several programs
involving children and parents with UNICEF like seminars, art competitions etc.

Awareness about Asthma: Collaborated with Asthma Association of Bangladesh

Grameen Phone has arranged rallies and seminars to create awareness about
prevention & treatment of Asthma.

Awareness about Health & Hygiene: Grameen Phone HSE team has worked
extensively to create awareness about personal & community health & hygiene.
GP has conducted seminars, rallies, in field and in house training in this regard in
its Head office, regional offices and other organizations like EC & Nordic Club.
First aid, safety in working place, clean environment etc topics is generally
discussed in these awareness programs.

Blood Donation Program: One of prominent social contribution of GP is in the

field of Voluntary blood donation. Grameen Phone has sponsored and directly
participated in various voluntary Blood Donation Programs around the country
with voluntary blood donation organizations like Shandhani and Red Cresent
Society.

Each year GP arranges a yearly HSE (Health, Safety & Environment) week. One
of the regular programs of HSE week is blood donation camp in GP Head office
& regional offices. Moreover round the year GP helps in arranging voluntary
Blood Donation camps and works through seminars and camps to produce
awareness between mass people about blood donation.

Grameen Phone maintains a database containing the information about blood

groups of all the employees. When any employee or his family or friend needs
blood, he can contact HSE personnel and get contacted with the persons having
the required blood group.

Plantation Program: Grameen Phone has under taken plantation program in its
office premises in Dhaka, Chittagong, Rajshahi & Khulna City as a part of their
social awareness & responsibility. GP has also planted plants in the road side in
areas like Gulshan, Baridhara etc.

Archeological Excavation: Grameenphone has funded the archeological

excavation at Wari-bateshwere (Narshingdi). Archeological findings there have
already established presence of civilization of 3000 years old.
Maintenance of Chittagong Railway station (old): Grameenphone has financed
the renovation and continued preservation of old railway station of Chittagong, a
national heritage site.