1

Table of Content

1. Industry Overview
2. Company Profile
3. Bhutan Telecom
4. Board of Directors and Management Team
5. Porters Five Forces
6. SWOT Analysis
7. Corporate Social Responsibility
8. TashiCell
9. Company Profile
10.SWOT Analysis
11.PESTEL Analysis
12.Corporate Social Responsibility
13.Summary of Telecommunication Sector
14.Future Growth of Telecommunication Industry in Bhutan
15.Bibliography
2

Industry Overview
Telecommunication Industry in Bhutan is made up of companies that make communication
possible on a global scale be it through the phone or the internet or through radio waves or
cables. Bhutan Info Communication and Media Authority (BICMA) monitors the
communications and media in Bhutan, Telecommunication industry in Bhutan mainly consists of
Bhutan Telecom, a state owned company which is the leading provider of telecommunication
and internet services and Tashi InfoComm the first private cellular company in Bhutan.
Telecommunication market in Bhutan has registered resilient progress in the past decade and
half, it has enabled easy market access to telecom equipment and a fair and proactive framework
that has ensured availability of telecom services to consumers at a reasonable price. The
Bhutanese Telecom Industry is considered to be a vital tool for the development of the country
on the whole by contributing towards the immense growth, quick expansion and upgrading
various sectors in the nation. This industry increases the GDP of Bhutan, earns profit for the
Bhutanese Government and creates employment opportunities for a great number of people. The
Bhutanese Telecom Industry has grown tremendously during the past few years owing to the
unprecedented growth and infrastructure which not only is beneficial for the telecom industry but
has positive effects on the entire economy of Bhutan. The rapid escalation in the telecom sector
of Bhutan has been made possible due to the active participation of private service providers,
revenue generated through telecom industry have immensely contributed to the nations GDP.

The major Telecommunication based industry in Bhutan are:

 Bhutan Telecom
 TashiCell
3

Company Profile
Bhutan Telecom

Mission statement
“We are the providers of innovative and
reliable ICT services, keeping Bhutan
connected.”

Vision statement
“To be the company of choice.”

OBJECTIVES
To deliver a highest standards of services to our customers
To provide effective and efficient support services
To promote greater transparency and accountability
To provide an interactive communication platform for education of consumers.
Bhutan Telecom
4

Board of Directors

Mr. Tenzin Dhendup (Chairman of Bhutan Telecom)

Dr. Damber S. Kharka (Director, Corporate Performance Division)

Mr. Dechen Dorji (Country Representative for Global WWF in Bhutan)

Mr. Jigme Tenzin (Chief, Application Division under Department of Information and
Technology and Telecom)

Management Team

Mr. Karma Jurme is the Chief Executive Officer

Mr. Chimmi Dorji is the Director, Business Department.

Mr. Karma Tshewang is the Director, Technical Department.

Mr. Sangay Wangdi is the General Manager, Finance and Accounts Division.

Mr. Jichen Thinley is the General Manager, Corporate Planning and Strategy Division.

Mr. Penjore is the General Manager, Marketing Division.

Mr. Jambay Sither is the General Manager, Operations Division.

Mr. Dawa Sonam is the General Manager, DC & Cloud Division.

Mr. Phuntsho is the General Manager, Corporate Services Division.

5

Bhutan telecom is state owned company and is one of the ISP (Internet Service Providers) in
Bhutan. It is the leading provider of Information and communication and technological
infrastructures in Bhutan and owns 70% of market shares. Bhutan Telecom was the first mobile
network provider to offer its customer international roaming facility across several countries.
With approximately more than 486,000 subscribers Bhutan Telecom is the largest mobile
network provider in Bhutan and has coverage in all the Dzongkhags in Bhutan. It was established
on 1st July 2000, it is headquartered in Thimphu, and operates in almost all the Dzongkhags. To
stay abreast with the technological breakthroughs the company gives top priority on the
technological front and undertakes activities to improve the telecommunications services.

Bhutan’s telecom market gains strong momentum, the mobile market in Bhutan has grown
moderately over the past few years however the growth rate has subsided over the past few years
as the mobile market begins to mature.

B-Mobile is the leading mobile operator in Bhutan. TashiCell is its only market competitor, and
has been bridging the gap over the past few years.

The mobile networks have provided a major boost to internet access in the country, largely on
the back of EDGE/GPRS, 3G and more recently 4G platforms are now gaining power in Bhutan
with both major mobile operators offering 4G services.

Bhutan’s mobile broadband has grown abruptly over the past five years from a small base driven
by a mature mobile market. Strong growth is predicted over the next five years to 2023 but at a
declining rate due to a maturing market. The mobile broadband market will be driven by
increasingly faster speeds offered by the mobile operators as they further roll out their 4G
networks

BTL has left no stone unturned in its efforts towards full filling both its commercial and social
mandates. Today, BTL ‘s revenue and customer base are growing at a sustained pace-Mobile has
taken its services to even the remotest corners of the country where commercial viability is out
of the question and its network has covered all 205 Gewogs (Blocks) in the country.
6

Porter’s five forces

Porter’s five forces analysis is done to understand the industry attractiveness of the Telecom
Industry. This five forces analysis is just one part of the complete Porter strategic models.

1) Threat of new entrants- low

Telecommunication Industry in Bhutan is a well-established therefore the threat of new rivals
entering the business is low. These are some of the reasons why there is low threat of new
entrant:
i) Due to advancement in technologies it is difficult for new competitors to compete
with the existing companies because it is difficult for them to come up with
advanced technologies like them.
ii) Leading companies are all on the quest to gain more market shares so therefore
new entrants trying to enter the fray will face cutthroat competition.
iii) Since the company provides better services therefore the costumers are loyal
towards existing services/brands.
7

iv) Capital requirement is very high to compete in the market like huge establishment
costs, high Research and development costs etc.
v) With time there is a consistent improvement in the technologies and people are
coming up with innovative ideas.

The threat of new entrants in a telecommunication industry is always there. Threats from
domestic companies might be low but there is always a chance of foreign companies
entering the market.

2) Threat of substitute products or Services-Low/moderate

The availability of substituted products in the market is a great threat for the
organizations since this will drastically hamper the profitability of the organization.
i) The power of substitute products is Low/moderate and it depends on the impact of the
substitute products.

ii) Telecommunication industry have two primary functions: first to keep people
connected through communication. Second is the ability to access and distribute
information instantaneously.

iii) Telecommunication industry has a variety functions so any product/services that

specializes in one of those individual functions can be termed as a substitute. For instance
introduction of 4G can hamper those companies offering 3G services since customers
will go for 4G instead of 3G.
It can be concluded that the threat of substitute product is low for telecommunication
industry in Bhutan since there are only two service providers.
8

3) Bargaining power of customers (buyers)-high

i) Customers can easily switch between two telecommunication companies if they feel
that Bhutan telecom is providing better services than TashiCell then they can easily
switch between them since the switching cost is low and they don’t charge any fee.
The customers have the rights to choose between the two companies.
ii) The bargaining power of the customers is drastically rising since the customers have
a choice between two telecommunication companies.
iii) The customers are well informed about the companies. With the advancement in
technologies and through social networking sites they are well informed about the
substitute products.
iv) It has been observed that customers normally tends to choose the products or services
based on the reliability, price and quality. Customers alter their choices between
TashiCell and Bhutan Telecom.

4) Bargaining power of Suppliers-Low

i. The bargaining power of suppliers is quite low because of more number of suppliers
and on top of that there is an intense competition between Bhutan Telecom and
TashiCell.
ii. The two telecommunication companies is in a price war therefore they have to
provide good services and good quality goods and a reasonable price to the customers
so that they don’t lose their customers.
iii. The bargaining power of suppliers influences the profitability of the company.
Increase in the bargaining power of suppliers results in decrease in profits and upward
trend in prices of the products.
9

5) Intense Rivalry

There is an intense rivalry between the two telecommunication companies. The services and the
products that the companies provide are quite similar but they try to differentiate their products.

i) To have a competitive advantage against their rivals the companies have launched 3G and 4G.
Both the companies are trying to have an edge over each other.

ii) Competitive rivalry is very high and telecom industry must be aware of the threat that
competitors have on their business especially from foreigner in near future.

SWOT Analysis
STRENGTHS

Since Bhutan telecom is the first telecommunication company in Bhutan and on top of that it is a
state owned company so they possess these strengths :

 They excellent customer service and a strong sales team and a respected brand name.
 To boost the resources capabilities of a telecommunication company equipment they
have high performing cable equipment, cutting -edge fiber- optics.
 Bhutan Telecom have professionals working for the company who are specialized in their
fields.
 In line with their vision and mission statement employees inculcate good values and
works towards the betterment of the company. Developing and communicating vision of
change to achieve the goal set forth by the company.

Theses strength are attributes that enhance the company’s competitive advantages.
10

WEAKNESSES

 Availability of substitutes available is one of the weakness of Telecommunication

Company since the customers can choose between TashiCell and Bhutan Telecom.
 At times due to technical problems the services to the customers will be delayed and this
results in customers switching form one company to another.
 There weaknesses place the company at disadvantage in the market therefore they have
to work towards the betterment of the company.

OPPORTUNITIES

 Advancement in technologies, increasing consumer interest and new technologies are

some of the external opportunities that helps telecommunication in the long run.
 TashiCell is the only competitor of Bhutan Telecom, they don’t have cutthroat
competition unlike other countries where there are many telecommunication industry and
the competition is intense.
 A telecommunication company keen or rapidly adopting new technologies, for example,
would highly benefit from immediately investing in new fiber optic the moment they’re
introduced in the marketplace, especially if they speed up services.

THREATS

 Bhutan Telecom is facing intense competition from TashiCell and on the other hand the
government has imposed legislation which effects the future success of the company.

 Bhutan being landlocked country it is difficult for Telecommunication Company to

provide better services and customers expect better services.

 There are chances of customers switching to TashiCell if they provide better customer
services compared to Bhutan telecom so therefore Bhutan telecom must ensure that they
are a step ahead of TashiCell so that they don’t lose their customers.
11

Corporate Social Responsibility

Through the extension of telecommunication services to rural areas, Bhutan Telecom is

upholding the principle of balanced economic development. As a social mandate the company
provides services even to non-profitable and challenging areas. For instance the establishment of
radio towers and telecommunications in very high altitude areas in Bhutan. The company funded
Nu 1.12 million as a part of corporate social responsibility to various social causes. Bhutan
Telecom celebrated achievement of another milestone in its 54 years’ service to the Tsa-WaSum,
while successfully putting through the link on 16th of November 2017.
12

TashiCell

TashiCell is Bhutan’s sole private telecommunication company in Bhutan, with approximately

more than 247,000 subscribers and has coverage in some of the Dzongkhags in Bhutan and owns
30% of market shares. The company was established on January 23, 2007 under the companies’
act of Kingdom of Bhutan as the first private telecommunication company. It is headquartered in
Thimphu and operates in most of the Dzongkhags. The Company launched its GSM(Global
system for Mobile communication) services on April 6, 2008 under the brand name “Tashi
Cell” .

TashiCell is the only market competitor of Bhutan telecom .Tashi InfoComm is a separate unit
under Tashi group of companies. Tashi Group is one of the largest privately owned conglomerate
of companies in Bhutan and has over 40 affiliates under them including Tashi Air, Tashi
InfoComm, T-Bank, and Druk School etc...Tashi InfoComm is governed by the comprising
chairman, three Non-executive directors and one executive director. The management committee
comprises of eight members managing director and head of seven departments.
13

COMPANY PROFILE

Mission statement
“Bring happiness and satisfaction to our
customers, employees, Shareholders and the
society at large”

Vision statement
Offer reliable, efficient, high quality ICT services at affordable prices to our
customers.
Reward its employees by compensating adequately for their hard and its work;
and its shareholder through good return on their investment.
Be economically sound and socially responsible ICT Company.
Be the best public limited Company in Bhutan with excellent corporate culture,
values and beliefs.
14

SWOT Analysis
Strength
 TashiCell was launched by Tashi InfoComm limited, the first private cellular company in
Bhutan.
 Tashi cell offers competitive salary packages and other monetary benefits to all
employees, commensurate with qualification, experience and responsibility.
 TashiCell achieved nation wide mobile coverage with 2G and became the first private
telecom operator in Bhutan.
 TashiCell uses cutting edge fiber optics and good performing cable equipment, respected
brand name, excellent customer service and strong sales team that boosts up the company
and enhance the company.
 Strong vision and mission statement.
Weakness
 TashiCell services are not up to the growing expectations of customers. The consumers
demand for high quality service at an exceptionally cheaper rates.
 TashiCell data charges are quite expensive compared to Bhutan telecom.
 Facilities like providing bonuses during special occasions are limited compared to Bhutan
Telecom which is actually one of the ways to attract customers.
Opportunities

 Advancement in technologies in the country is a plus point for TashiCell so that they can
come up innovative services and new technologies.
 Bhutan being a small country compared to other foreign countries therefore TashiCell is
able to provide network in all 20 Dzongkhags.
 The is only one competitor for TashiCell that is Bhutan Telecom therefore they have the
chance to provide better services to the customers compared to Bhutan Telecom.

Threats

 Providing better services in a geographically terrain is one of the major challenges that
the operators face unlike other countries.
15

 Another challenge TashiCell is facing is in terms of growing expectations of customers.

The customers expect good services at an exceptionally cheaper rates.
 Bhutanese market is too small to third operators and they are faced with numerous
challenges in providing efficient and customer satisfactory service.

PESTEL Analysis
Political Factor
To know about how the policy framed by the government impacts the organizations the
government has imposed legislation under political factors. There are some policies framed
between TashiCell and Bhutan Telecom by the government. With the governments intervention
companies changes their policy and provides better services to the general public.

Economic Factor

TashiCell aims to provide their network all of the Dzongkhags (Districts) in our country so in
order to achieve this there is huge increase in the expenditures in facilitating the remote places.
The profitability of the company will be drastically hampered because of the economic factors.
Huge expenditure will be incurred while importing telecommunication infrastructures from
foreign countries and higher taxes will also be charged.

Social Factor

Social factor emphasizes on the social environment and identifies emerging trends that helps a
marketer. Telecommunication is difficult to expand in remote places but TashiCell provides
better services to the people living there. So there is no option while purchasing the sim-card or
the internet and the data packages, where data packages are used in communicating, online
shopping etc. However it is becoming a daily aspect in average people’s life.
16

Technological Factor

This factor emphasizes on the social environment and lets marketers know about the emerging
trends. It is difficult to set up telecommunication networks in remote places but still then
TashiCell provides better services to people at a reasonable prices. The services provided by
TashiCell is helping people in many ways. For instance the internet services that they provide
helps people place their order online and helps them in many ways. It is becoming a daily aspect
in average people’s life and the service that they provide aids them in making their life easier.

Environmental Factors

Environmental factors can affect many different important aspects of business. This factor relates
to the influence of the surrounding environment and impact of ecological aspect. So climatic
condition and changes in global warming affect the business. Therefore the service to the people
may not reach to the customer.

Legal Factor

Although companies have different innovative ideas, methods and approaches to implement in
the business. Company has to perform their work within the legal frame work of the nation.
Company cannot go against the interest of the nation. Therefore it is mandatory for TashiCell to
perform their activities within the legal framework set by the present government of the country.

Corporate Social Responsibility

The company takes into consideration the interest and welfare of society by putting in continued
efforts to incorporate good corporate citizenship into its culture.in all aspects of its operation.
The company inherently believes that the social responsibility should be should essential nature
of TashiCell. As a part of corporate social responsibility TashiCell has been providing free high
speed internet services at Jigme Dorji Wangchuck National Referral Hospital. On the other hand
TashiCell has carried out various activities to support the environment.
17

Summary of Telecommunication Sector

Sector Data (as of December 2015)

Telecommunication
455656 (349,116 in 2014)- 30.52 % increase
Internet subscribers
Fixed Line telephone subscribers 21811 (23,823 in 2014) –8.45 % decrease

Number of Dzongkhags HQ’s with Fixed

Line connections
Mobile Cellular subscribers
% of population availing Mobile services
All 20 Dzongkhags
675747 (628,289 in 2014) –7.55 % increase
87.06 % (84.32% in 2014)- 3.27% increase

Number of Dzongkhags HQ’s with access to

All 20 Dzongkhags
Mobile services
Number of Gewog HQ’s with access to
All 205 Gewogs
Mobile network
Number of Community Centers established
200 Centers
Source: Annual Info-Comm and Transport Statistical Bulletin (7 edition, 2016)

Future growth of telecommunication Industry in Bhutan

18

For every company to succeed their passion and purpose should align with their vision and
mission. The strategies that they implement should be able to achieve the company’s objectives.
Although the telecommunication industries in Bhutan provides better services to the customers
they should emphasize more on providing quality services at a reasonable price. Since the
competition among telecommunication industry in Bhutan is not that intense as compared to
other countries the companies should provide high quality internet services at a low cost. Drastic
measures should be taken to overcome the barriers of distance and time. The Bhutanese Telecom
industry has undergone a progressive shift from voice services to data services, thereby creating
a new direction for the future of this industry. . The number of mobile users has almost caught up
with the total population of the country. The industry has touched the lives of thousands of
Bhutanese and will continue to remain a significant growth driver in the future also.
19

Bibliography

Bhutan InfoComm and Media Authority. (2016, 11 03). Retrieved from

http://www.bicma.gov.bt/bicmanew/

Annual Reports 2017. Thimphu: Bhutan Printing Solution. doi:201.01/2017

20