1. ETE 521: Telecommunication
Business and Management
Module 1: Introduction
Faculty: Dr. M. Rokonuzzaman
zaman.rokon@yahoo.com
Reference book: Management of telecommunications,
H.H. Carr and C.A. Snyder

2. What is the Focus?
 Technology?
 Generic
 Business?
 Management?
 What are the challenges of
managing telecom business?
 Why should it be taught
separately?
 etc

3. What are Major Players?
 Component Manufacturers
 Network operators
 Solution providers
 End users
 Regulators
 etc
 How does each of them influence
the landscape of
telecommunication business?

4. Structure of BD’s
Telecommunication Sector?
 BTTB
 Private PSTN
 Mobile
 Data communication
 Overview of the dynamics of
the sector?
 What are major forces
shaping the industry?

5. Forthcoming Reshaping of BD’s
Telecom Sector:
 Merger?
 Acquisition?
 Entry of new operators?
 Integration of data and voice service
 Integration of PSTN operators with
mobile operators?
 Future of BTTB?
 etc

6. A Quick history of Telecom
 The telegraph and Morse code, 1837
 The telephone
 Handcrank, 1900
 Rotary dial candlestick, 1919
 Rotary dial handset, 1937
 Cellular radio

AMPS, 800 Mhz (advanced mobile phone service), 1983
 GSM (Global system for mobile communications)
 CDMA

8. • Before 1972:
T&T department to enjoy the
exclusive authority to
run and regulate the
telecom service
industry.
• Feb 1979: Change of
the Govt. T&T Deptt.
into a Govt. Board
(BTTB) through an
Ordinance in 1979.
July 1989: First entry of private
sector in telecom
business through an
agreement of BTTB
with:
(a) BTL for cellular Mobile,
Radio trunking, Radio
paging and Riverine
comm. services.
(b) BRTA for digital
telephone service in 200
Thanas.
• Aug 1994: Agreement made
by BTTB with ISL for
providing digital telephone
service in remaining 195
Thanas.
• 1995: Take over of the
regulatory functions of
Telecom sector by MoPT
from BTTB.
• 1995: Transfer of cellular
mobile portion of license of
BTL to PBTL.
• Nov 1996: License
agreement by MoPT with 3
private mobile companies:
GP, TMIB, Sheba
• March 1998: Declaration
(publication) of National
Telecom Policy 1998
• 2000: License agreement
with WorldTel by MoPT for
providing telephone service
in Dhaka city.
• Jan 2002: Formation of
BTRC to take over the
regulatory functions from
MoPT as per Telecom Act
2001.
• 2004/2005: PSTN licensing
opened by issuing open
licenses to 15 private
companies for giving fixed
telephone service.
• Dec 2005: Cellular mobile
license issued to a foreign
company: Warid Telecom.
• Sep 2007: ILDTS Policy
2007
Before 1972 -1980 1981 -1990 1991 -1999 2000 – 2007
Key Milestones for Development of Telecommunication Sector in Bangladesh

9. • 1947: Manual
telephone service,
Morse telegraph
service, LD network
through open wire
line.
• 1949: International &
inter wing
communication
through HF radio
system.
• 1952: Teleprinter
service.
• 1954: First FI type
auto exchange at
Dhaka.
• 1962: VHF Radio
system in the LD
network between
Dhaka-Ctg route.
• 1969: First EMD type
auto exchange at
Dhaka
• 1970: Microwave
radio system in the
LD network between
Dhaka-Chittagong
• 1975: International
communication by
Satellite system
through earth
station at Betbunia
• 1978: National Telex
network with Telex
exchanges at Dhaka,
Ctg & Khulna
• 1985: National dialing
system with
installation of trunk
auto exchange at
Dhaka, Chittagong,
Khulna & Bogra
• 1986: Overseas
communication through
International trunk
exchange (ITX) at Dhaka
• 1990: First digital
exchange at six places in
Dhaka multi-exchange
area
• 1991: Digital exchanges in
few Thanas by a private
operator BRTA
• 1993: First cellular Mobile
service in private by HBTL
(from BTL), in 1993 with
Amps system and with
CDMA (2G) by PBTL in
1999.
• 1996: Internet service
opened by some private
service providers using
VSAT for International
connectivity. BTTB
started the service from
1999.
• 1997: Cellular mobile
service GSM system
opened by private
operator GP, followed by
TMIB & Sheba.
• 1998: Optical fiber lines
(leased from BR) all over
Bangladesh in the LD
network by GP. BTTB
laid optical fiber lines
between Dhk-Ctg in
2000.
• 2000: WLL system in
local telephone service
in some district & Thana
towns by BTTB. A
number of private PSTN
operators started their
main service with WLL in
2005.
• 2006: International
connectivity in the global
communication highway
through SEA-ME-WE4
submarine cable by
BTTB.
1947-1965 1966-1985 1985-1995 1996-2007
Evolution of Technical Systems and Services in
Bangladesh Telecommunication Sector

10. Sheba Telecom Ltd
(Banglalink)
• Cellular mobile license received on 11 November 1996 with 49% share by a
local Co. ISL (Integrated Service Ltd), 51% share by a Malaysian Compnay,
TRI (Technology Resources Industries).
• All shares (100%) purchased by ‘Orascom’ of Egypt in Sept. 04 within the
same license, taking the brand name of Banglalink.
Pacific Bangladesh Telecom Ltd
(City Cell)
• Original Cellular Mobile service license along with other 3 services received
by BTL (Bangladesh Telecom Ltd) through an agreement with BTTB in August
1989.
• Cellular Mobile portion of the license later transferred to a company HBTL
(Hutchison Bangladesh Telecom Ltd.)
• Entire share (100%) of Mobile operation purchased by PBTL in 1994.
• 45% of total share purchased by ‘Singtel’ of Singapore in 2005, with option for
15% more to be transferred subsequently.
Grameen Phones Ltd
(GrameenPhone)
• Cellular mobile license received on 11 November 1996 with 49% share by
TeleNor of Norway, 41% share by Grameen Telecom, 5% share by
Gonophone of USA, 5% share by Marubeni of Japan.
• After about 6 years, Gonophone and Marubeni sold their shares and share of
TeleNor rose to 62% and Grameen Telecom share reduced to 38%.
TM International Bangladesh Ltd (Aktel) • Cellular mobile license received on 11 Novmber 1996 with 60% share by TMI
(Telecom Malaysia International), 40% share by A.K.Khan & Co. of
Bangldesh.
• After about 3 years, share of TMI rose to 70% and rest 30% remain with
A.K.Khan & Co.
History of Ownership Transformation in the Mobile Sector

11. Operator
Category
Oper-
ators
Operators’ Names License Time License
Area
Status of
license
Start of
operation
Management
Structure
Ownership
Type
PSTN, NLD,
IGW, Telex
1 BTTB Before
1947
Country Valid Before 1947 Board Govt.
PSTN 17 Bashundhara Com. 13.05.04 NE,SE,NW,SW Cancelled NA Limited Co Private
Ranks Telecom 07.06.04 NE,SE,NW,SW Valid July, 05 Do Do
Bangla Phone 22.06.04 NE Valid NA Do Do
Jalalabad Telecom 22.06.04 NE Valid Jan. 06 Do Do
Westec (Bay Phone) 08.07.04 SE Valid April 05 Do Do
Tele Barta 09.08.04 NE,SE,NW,SW Valid July 05 Do Do
Dominox Tech. 09.08.04 SE Cancelled NA Do Do
GEP Telecom 09.08.04 NE,SE Valid NA Do Do
One Tel Com. 02.09.04 NE Valid Sep’05 Do Do
Dhaka Telephone Co 09.10.04 NE,SE,NW,SW Valid Nov’06 Do Do
Square Informatix 13.01.05 NE,SE,NW,SW Valid NA Do Do
National Telecom 17.01.05 NE,SE,NW,SW Valid Jan 06 Do Do
Peoples Telecom 25.01.05 NE,SE,NW,SW Valid Jan 06 Do Do
S.A. Telecom 27.03.05 SE Valid July 06 Do Do
Nextel Telecom 13.04.05 SE Valid NA Do Do
ISL 19.08.94 SE, SW Valid NA Do Do
WorldTel 20.08.01 Central Valid NA Do Foreign
Mobile 6 Teletalk BD Ltd. 01.09.04 Country Valid 30.03.05 Do Public
Grameen Phone Ltd 11.11.96 Country Valid 26.03.97 Do Local+Foreign
TMIB (Aktel) 11.11.96 Country Valid 11.08.97 Do Local+Foreign
PBTL (City Cell) 26.07.89 Country Valid 10.08.93 Do Local+Foreign
Sheba (Bangla Link) 11.11.96 Country Valid 03.09.98 Do Foreign
Warid Telecom 20.12.05 Country Valid 01.04.07 Do Foreign
Source: BTRC
: Telecommunication Operators in Bangladesh

12. What is the role of management study within
the context of technology?
 Finding and nurturing opportunity of developing business
making use of emerging technology?
 Example? Analysis of application of location-based services
Push
advertising
Pull
advertising
Tracking Emergency
services
Billing Social/Enter
tainment
Business
model
Strength of
value
proposition
Incremental
profitability
Market size

13. Role of Regulator:
 Why has BTRC put floor on call rate?
 What is its implication on competition?
 Why should operators be restrained from
lowering rates?
 Etc.
 Why should not BTRC allow more
operators to enter in the mobile
market?

14. What is the effect on
competition if intra
operator mobile charge
is lower than the
interconnection
charge?

15. Figure 4.4: Mobile Service Users' Growth
1.909
4.152
9.268
32.37
21.772
29.427
2003
2004
2005
2006
June.07
Jul-07
MobileSubscribersinMillions

16. Figure 4.3: Average Revenue Per User (ARPU) Per Month
847
626
427
280
2003 2004 2005 2006
ARPUinTaka

17. Voice Traffic Leads the
GP’s Service revenue breakdown
Revenue
GP’s Service Revenue Breakdown: Jan-
June 2007
Call Charges :
Line rentals :
SMS & MMS :
Inter. Roaming:
Internet
(EDGE & GPRS) :
Interconnection :
Others :
86.73%
0.76%
2.30%
0.67%
0.70%
8.40%
0.44%
Service Consumption Pattern of GP
Subscribers

18. Figure 4.7: Subscriber Growth Rate of Top Five Mobile Operators
0
50
100
150
200
250
300
2004 2005 2006
GrowthRate
Teletalk BD Grameen Phone Aktel(TMIB)
CityCell(PBTL) BanglaLink (Sheba)

19. Figure 4.10: ARPU/Month of Top Five Mobile Operators
0
200
400
600
800
1000
1200
1400
2003 2004 2005 2006
ARPU/Month
Teletalk BD
Grameen Phone
Aktel(TMIB)
CityCell(PBTL)
BanglaLink (Sheba)

20. TeleTalk
2.81%Warid
3.52%
CityCell
4.05%
BanglaLink
20.42%
Aktel
20.61%
GrameenPhone
48.59%
Market Share of Mobile Operators
Based on Subscribers in July 2007

21. Figure 5.2: BTTB's Revenue Growth
15448
15312
14248
13163
16665
11997
11356
10403
10621
13087
3362
3901
3709
2449
3182
2002-03
2003-04
2004-05
2005-06
2006-07
RevenueinMillionTaka
Total
Revenue
Inland
Telephone
Revenue
International
Revenue

22. Figure 5.4: Subscribers' Growth of Private PSTN Operators
112,420
147,707
205,355
June 2006 December 2006 June 2007
SubscribersinThousand

23. Where is the future growth opportunity in
BD’s telecom service market?
 Voice
 Data, what kind of data?
 Video
 Audio/Video on demand
 Data storage and management services.
 Rural voice market
 SMS
 Value added services
 etc

25. Competition in BD’s telecom
sector:
 Competition strategy?
 Implications of practiced competition
strategy?
 Do you recommend better strategy to
bring sustainable long term benefit?
 etc

26. What is the framework of your
focus?