237922817 city-cell

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1.0 Introduction:
The history of mankind proves that communication is a very important in the day by day
life of the common people. Since then, there have been attempted in make communication easier
people has been concentrating on it and such as today we see the birth of the latest devices of
communication and telecommunication. Bangladesh is not so far away from such technological
advancements, compared with the rest of the world. The country has witnessed a rapid boom in
the mobile phone industry. Within the last one decade, the user base of mobile phones has
skyrocketed to massive proportions.
There are currently five companies in the industry, namely, CityCell, GrameenPhone,
AKTEL, Banglalink and Teletalk. The Pacific Bangladesh Telecom Limited owning CityCell
introduced cellular telephones in Bangladesh using AMPS technology in the early nineties.
Initially a monopoly, the company charged a premium price for their connections and was
affordable only the upper-upper segment of the country, especially for residents of Dhaka and
Chittagong. Their network was also limited to this Dhaka-Chittagong region. They are still
remembered by many for their initial overcharging. In those days, they became a symbol of
affluence. 3 years later, Grameen Phone and AKTEL (TMIB) came up with GSM technology and

Understanding the attitude of the youth market towards Brand Preference in Bangladesh
soon Sheba Telecom followed suit with WLL technology. Subsequently Pacific Telecom
switched to CDMA 1 and Sheba tuned with GSM. With the entry of GP and TMIB into the scene,
price came down significantly to be afforded by the upper and middle class segments of urban
population and network coverage expanded countrywide. Until then, all operators provided full-
fledged connection with at least NWD and T&T connectivity. There after, state owned land
phone connectivity provider BTTB refused to provide any more inter connectivity with land
phones to mobile phone operators for additional subscribers.
Presently it can be definitely assumed that, the market for mobile telephones in
Bangladesh is by any scale, promising. For mobile operators, at least two things are worth to be
born in mind. Firstly, the core product itself is a highly technical service, so brand-image and
noticeable product features are needed to differentiate the product. Besides, a recent study shows
that awareness level of different target market is extremely high. Almost everyone who can
operate and afford a cell phone knows about the service and also the name of top three operators.
So, for top three players, the game is to generate as much trial as possible by converting non-
users and at the same time retaining the users. Since the market has just started to approach the
mass segment, new market penetration seems to be the least expensive strategy.
1.1 Origin of the report
This internship report was carried out to fulfill the partial requirement for the completion
of the BBA Program of North South University. I joined Pacific Bangladesh Telecom Ltd as an
intern for the period May to August 2006. It has been a very interesting experience, one that has
provided an in-depth perspective into the actual workings of an organization. I have been able to
provide a view of their operations and also learn from those who work in City Cell about the
every day problems faced and the greater business issues in general.
The youth market today is an extremely technologically aware, a segment of society that
has been active in transforming the application and use of digital technologies in unprecedented
ways (Selian, 2004). This market segment is here defined as the range of teenagers and young
adults between the age of 13-28 comfortable communicating via mobile phones and playing with
digital gadgetry than any previous generation with using the Internet, building websites.
Understanding the youth segment is core to the long-term success of the mobile industry
(Wireless World Forum, 2005). Young people represent Different sectors of the market with high
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liquid assets, a higher demand for communicative devices than any other demographics. The
youth market has historically shown a rapid viral adoption of new trends and can often self-
market products and services with little input from the producer or provider (Wireless World
Forum, 2005). In order to understand the attitude of the booming youth market of mobile users in
Bangladesh, a thorough assessment of this segment is crucial, especially for the interest of
CityCell and other mobile phone companies operating in Bangladesh.
As the young consumers itself is important in the mobile phone industry, mobile operators
in developed nations have already started studying this market from all possible perspectives in
order to understand their guiding motivators. The popularity of mobile phone among the youth
market in Bangladesh has emerged only 6/7 years back. From that viewpoint, it is still a new
technology on the rise in a developing nation like Bangladesh. However, the market is growing
fast and new competitors are arriving in the market. In this situation, it has become necessary for
the mobile operators like CityCell in Bangladesh to get hold on the attractive segments of the
youth market and rule over rivals by following differential strategy.
1.2 Objectives of the Study
1.2.1 General Objective
To develop a conceptual model of the factors influencing the attitude of the youth market
of mobile users in Bangladesh while preferring a brand and find out the attitudinal changes
brought by this combined influence.
1.2.3 Specific Objective
1. To identify the internal and external factors influencing the attitude of the youth market
of mobile users in Bangladesh and investigate how they influence.
2. To investigate the attitudinal changes of the youth market of mobile users brought by
the combined influence of these factors.
1.3 Statement of Significance
The study will make the following significant contributions to CityCell in Bangladesh.
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Identifying the internal and external factors influencing the attitude of the youth market of
mobile users in Bangladesh which would provide a comprehensive portrayal of the youth
market segment to CityCell, which will help the company to implement an effective
positioning strategy.
Identifying the factors influencing the attitude of the youth would provide a guideline to the
CityCell to adopt factors that influence positive attitude and reject factors that influence
negative attitude.
CityCell would be able to compare its present market situation with other mobile operators in
Bangladesh and would also get to know the current position and acceptance of other mobile
operators among the youth market in the country.
This study would enable CityCell to design and offer their services according to the
requirements and preferences of the youth market of mobile users.
The findings of the study would also assist the policy makers and experts of CityCell to come
up with effective decisions regarding this specific market segment.
1.4 Research Hypothesis
For this study, the researcher is going to undertake explanatory hypothesis, where there is
an implication that the existence of, or a change is, one variable causes or leads to an effect on the
other variable. Therefore, for this research, the independent variables are the internal and external
factors of a young mobile user. The internal factors are demographic, psychographic, behavioral
characteristics of a mobile user and his/her perception towards “Mobile Phone”. On the other
hand, the external variables are media and advertising, brand image, youth service offerings,
reference group influence. The dependent variable is the attitude of the young people. Therefore,
the research hypothesis would be, the internal and external variables play important role in
changing and shaping the attitude of young people using mobile phone in Bangladesh.
1.5 Research Design
With the intension to identify the factors, exploratory research design will be
selected as suitable for this study.
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1.6 Scope of the Research
As far as the youth segment is concerned, the researcher has restricted from the age range
of 13 to 28 years. This study includes the school students, college students, university students
and office executives. Therefore, this research is expected to represent the youth market of
mobile users and reflect their mobile phone behaving pattern. In order to complete the study
within the given period, the researcher concentrated the study in Dhaka only.
1.7 Data Collection Method
Both of the primary and secondary information has been used to conduct the
study. Information was collected through open ended and close ended questionnaire. The
questionnaire contains 25 questions 12 of which are open ended questions.
1.7.1 Primary source
In terms of primary source, data has been collected directly from different mobile users of
different segments. Here I have used both questionnaire and personal interview to collect the data
from the direct user.
1.7.2 Secondary source
In the secondary source, data are collected through the different textbooks and journals
relating to the theoretical framework of the project was accessed to define and to determine
satisfaction. Furthermore, annual report, company projects profile, related data, brochures had
been collected from the City Cell and also the web page relating to City Cell have also been used
as our source of secondary data.
1.7 Sampling Method
1.7.1 Sampling procedure
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For this study, the researcher has to get respondents who are the regular users of mobile
phone offered by any mobile operator. However, there is no list of young mobile phone users
available with the mobile companies. Therefore, the researcher has no other option than to
follow one of the non-probabilistic sampling methods, known as Convenience sampling. In this
method, the researcher can take any one (within the age range) from any educational institution
or organization who is a regular mobile phone user. According to Naresh K Malhotra,
convenience sampling can be used for generating new ideas, exploring new opportunities.
1.7.2 Sample size
80 mobile users’ of schools, colleges, and universities (academic institutions) students and
junior executives of commercial organizations in Dhaka city are picked for this study.
1.7.3 Sample Frame
Table1: Consumers Occupation
Occupation Sample allocation
School Students 20
College students 20
University students 20
Office executives 20
Total 80
1.8 Data Analysis
As this is an exploratory research, the out come of this research is restricted to only the
development of an initial understanding. For the exploratory research the unstructured data
collection has been included and the non-statistical data analysis has been executed for data
analysis. For this reason, the researcher has collected data by using qualitative method.
Particularly the qualitative data has been gathered from in depth personal interview and content
analysis has been properly utilized.
1.9 Contribution to the knowledge
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• The research would make a remarkable contribution to the theoretical literature, particularly,
in the case of mobile companies operating in Bangladesh as well as in the market context of
developing countries.
• A well-constructed study on the attitude of the youth market of mobile users in Bangladesh
may give a new outlook of the youth segments for the mobile operators like CityCell in the
developing countries.
• The conceptual model developed based on the attitude of youth in this study will enrich the
“attitude” related literature of the developing country as this model could be adapted and
validated for other countries.
1.10 Limitations
• The findings are based entirely upon the research conducted in Dhaka and hence may not be
applicable directly to other districts on counts of socio-culture diversity and contextual
factors.
• Such a survey needs to be undertaken periodically to judge the exact consumer perceptions
that they keep changing with time.
• Due to constraints of time, certain topics have not been touched upon at all during the course
of study. An in-depth analysis may be further taken up in each of the sub-topics covered.
2.0 Organizational Part
2.1 The Company
Pacific Bangladesh Telecom Limited (PBTL) is the first mobile phone service provider in
the Indian subcontinent. The address of the Head office is: “Pacific Centre” 14, Mohakhali C/A
Dhaka 1212. Another office in 81, Kakrail (Ground Floor) , Dhaka – 1000. Other branch offices
in Rajshahi, Sylhet, Khulna and Chittagong.
2.2 Pacific Group Ltd.
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The Pacific Group is a group of companies under common ownership. The group has
interests in automobile service (Pacific Motors Ltd.), consumer electronics (Pacific Industries
Ltd.), fisheries (Bengal Fisheries Ltd.), tea (Noyapara Tea Company Ltd.) and
telecommunications (Pacific Bangladesh Telecom Ltd.). This group of industries was founded by
renowned industrialist and current honorable foreign minister – Mr. M. Morshed Khan.
2.3 The Company History
In October 1990, Hutchison Bangladesh Telecom Limited (HBTL) was formed as a joint
venture between Bangladesh Telecom Limited (BTL) and Hutchison Whampoa Limited of Hong
Kong. In March of that year BTL had been issued a license by Bangladesh Telegraph and
Telephone Board (BTTB) for operating cellular, paging and other wireless communication
networks.
However, soon there was legal dispute between BTTB and BTL regarding the refusal of
BTTB to provide Public Switch Telecommunication Network (PSTN) channels for connectivity
to the BTTB network. The Supreme Court then ruled in April 1993 that BTTB would have to
provide PSTN connections to HBTL, and that BTL would have to transfer the cellular portion to
the license of HBTL. BTTB gave HBTL the PSTN connections in August 1993 and HBTL began
commercial operation of the first cellular telephone service in Bangladesh in the same month. The
owners of HBTL decided to sell their stakes in the company due to the legal war. HBTL’s shares
were divided into two parts: Type A, which was held by BTL and Type B, held by Hutchison.
Each type of share represented 50% title of HBTL. Pacific Motors Limited bought the type A
shares while Hong Kong based financial investors Far East Telecom Limited bought the Type B
shares.
On 12th February 1996, HBTL was renamed Pacific Bangladesh Telecom Limited. PBTL
uses the brand name CityCell to market its cellular products. In order to boost the financial and
also the managerial strength of PBTL, the shareholders of PBTL has completed the transaction
under the agreements in which Fujitsu Limited, Japan and Asian Infrastructure Development
Company (AIDEC), established in Cayman Islands, would acquire 10% and 20% equity shares in
PBTL, respectively on June 2000. In June 2005 CityCell and SingTel acquired.
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2.4 Current ownership Structure
2.4.1 Current owners
CITYCELL (Pacific Bangladesh Telecom Limited) is a privately owned company with
majority foreign ownership equity. Following lists the current owners of CITYCELL (PBTL):
Ownership Structure
31%
45%
24%
SingTel
Pacific Motors Limited
Far East Telecom
Limited
Figure: Ownership structure of CITYCELL
2.4.2 Pacific Group Ltd
The Pacific Group is a conglomerate, which includes the Telecom Strategic Business Unit
(SBU) responsible for the service provision and marketing of the CITYCELL brand. This SBU is
known as Pacific Bangladesh Telecom Ltd (PBTL). It is responsible for the overall management
of the telecom business that Pacific Group of companies is involved in.
Renowned industrialist and current foreign minister – Mr. M. Morshed Khan, founded
this group of industries.
2.4.3 Acquisition of SingTel
SingTel is Asia’s leading communication group with operations and investments in more
than twenty countries and territories around the world. Serving both the corporate and consumer
markets, the SingTel Group is committed to bringing the best of global communications to
customers in the Asia Pacific and beyond. With significant operations in Singapore and Australia
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(through wholly-owned subsidiary SingTel Optus), the Group provides a comprehensive portfolio
of services that include voice and data services over fixed, wireless and Internet platforms.
Over the years, SingTel has grown to be a global player with a strong regional heritage.
With one of the most extensive and advanced telecommunications infrastructure, the Group offers
unparalleled reach in Asia and beyond. SingTel's highly developed international network
provides direct connections from Singapore to more than 100 countries. It is a major investor in
many of the world's most sophisticated submarine cable and satellite systems. The Group is the
second largest satellite operator in the Asia Pacific.
SingTel’s ability to support multi-national corporations (MNCs) on a cross-border basis is
anchored by its extensive network of SingTel Global Offices (SGOs). Found in 35 cities in 17
countries and territories across Asia Pacific, Europe and the United States, the SGOs provide
MNCs with a single point of contact. The Group’s other major investments in the region include
Advanced Info Service of Thailand, the Bharti Telecom Group of India, Globe Telecom of the
Philippines and Telkomsel of Indonesia. Together with its regional partners, SingTel is Asia’s
largest multi-market mobile operator, serving almost 65 million customers in six markets.
SingTel employs more than 19,000 people worldwide and had a turnover of S$12.62 billion
(US$7.65 billion) and net profit after tax of S$3.27 billion (US$1.98 billion) for the year ended
31 March 2005.
Singapore Telecommunications Limited (SingTel) recently announced that it has invested
US$118 million for a 45 per cent equity stake in Pacific Bangladesh Telecom Limited (PBTL).
Of this investment, US$90 million will be applied towards the subscription of new shares. In
addition, SingTel has a call option to increase its equity interest in PBTL to 60 per cent for an
additional US$65 million. The option can be exercised between 1 April and 30 June 2007.
2.5 Mission
PBTL’s mission statement is “To be the most successful cellular, paging and other
wireless service provider in Bangladesh by virtue of having greater operating expertise.”
CityCell’s inherent emphasis is on quality, not cheapness of service. The first priority is to
provide a high end service that can be used for both commercial and personal use.
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2.6 Vision
The Vision of the company is “To continue to be the leader in the Telecom industry in the
region and provide a complete communication solution to the customers with a smile.” There is
an emphasis on strong customer relations. This is important to CityCell especially as, until
recently, they positioned their packages as high end packages (corporate and business users).
Such customers will require strong support for brand loyalty to develop.
2.7 Objectives
2.7.1 Qualitative Objectives
• Increasing service offerings.
• Expanding the network.
• Creating innovative, unique, and cost-effective various products to customers.
• Increasing loyalty by focused customer retention program.
2.7.2 Quantifiable objectives
• Increase subscriber base to 1.6 million by Dec 31, 2006
• 95 % overall network availability by the end of 2006
• Network coverage in 61 districts (out of eligible 61) by the end of 2006
2.8 Strategies
2.8.1 Functional Level Strategy
• PBTL’s focus is on efficiency, quality, innovation, and customer
responsiveness.
2.8.2 Business Level Strategy
• PBTL applies cost leadership and differentiation strategies as its
business level strategies.
2.8.3 Corporate Level Strategy
• PBTL follows related diversification as their corporate level strategies.
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2.9 Market Promotion & Communication
 Brand Management
 Events Management
 Advertisement & Promotion
 Press Advertisement, Outdoor Advertisement in Strategic points, Point of
Purchase (POP)
2.10 Sales & Distribution
 Focus on corporate sales through PBTL sales executives
 Strengthen & build up the relationship with dealers & outlet holders
 Increase sales outlets in strategic points
 Re-alignment of distribution structure
 Uniform profiling of sales outlets
3.0 Literature Review
3.1 Background of the problem
Mobile phones are no longer used purely for phone calls. They have now taken on a
convergent form, where the user can access the Internet, download polyphonic ring tones, text
message other mobile phones using SMS, take photos and send emails all from their mobile
handset. One group in particular that has heavily adopted this technology is youth. This new
media technology has spread rapidly and has created a whole new youth culture, particularly in
urban centers (Graves, 2004). Mobile phones have taken off quickly. In 2004 The Economist
reported that 600 million mobile units are sold each year. Young people in particular are a
lucrative market for the mobile-telecommunications industry and account for a large percentage
of their profits.
Many mobile operators have already shifted their attention on the youth market, targeting
it not only because this segment represent tomorrow’s adult consumers, but because they also
command a significant portion of their parents’ disposal income. These young people are the big
spenders of tomorrow (Selian, 2004). As far as this researcher is aware, no major effort has yet
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been taken to study the attitude of the youth market of mobile users in Bangladesh. Therefore,
this study conducted by Citycell on the youth market is justified.
3.2 Statement of the Problem
In terms of market share of mobile phone operators in Bangladesh, GrameenPhone
constitutes the highest share of 59%, AKTEL 27%, CityCell 6%, Banglalink 7%, and Teletalk
1% (Daily Star; Mar 13, 2006). The total number of mobile subscriber in Bangladesh is around
7,335,000. As GP is enjoying the 1st
position in this race and CityCell is nowhere but in number 4
in the 5 man race, it is very important for CityCell to find out exactly what are the triggering
factors that affect the youth market of mobile users’ attitude for any brand preference.
Consumers are very dynamic and never static when they are choosing their brand. They
may chose one brand today but if some other brand offers something more attractive, they will
not hesitate to switch their brand. So, ultimately it can be said that the mobile phone users in
Bangladesh are not yet brand loyal. So, to retain the maximum users, the company must find out
the triggering factors. (Banglapedia, 2000)
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4.0 Organization Structure
PBTL has around 600 employees:
4.1 Marketing Division
4.1.1 Functions of the Sales and marketing Division
The major marketing goal of this division is to capture a significant market segment that
will yield maximum revenue by means of passing on directly or indirectly high end cellular
phone service. Many clients provide telecom services to their locality by Tellular or Fixed
Advisor
Technical officer
Executive
Sr Executive
AVP
VP
GM
CTO
Director Engg
Engineering
Executive
Sr Executive
AVP
VP
Sr VP
Sales &
Marketing
Officer
Executive
AVP
(Finance)
Executive
AVP
(Commercial)
VP
Finance &
Commercial
Customer Service
Operation
Billing &
IT
Officer
Executive
Sr Executive
AVP
VP
Officer
Executive
Officer
Executive
(Store)
Sr Executive
AVP
VP
Accounts
Officer
Sr Officer
Executive
Sr Executive
AVP
Sr VP
Administration
Managing Director
Chairman
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Wireless package (FWT). The rates of this package may be low but this is offset by the high
frequency of usage and the strong support claimed to be provided by CityCell.
4.1.2 SVP (CCO)
The office of the Chief Commercial Officer, who is the Senior Vice President of Sales and
Marketing Division, is responsible for coordination of marketing activities across the company
and to provide top level management with an overall picture of the market situation.
Fig 9: Sales & Marketing Division
Manager,
FWT
&
Backbone
Manager,
VAS
Manager,
Corporate
Sales
Manager,
Channel
Sales
Manager,
Product
Developme
nt
Manager,
Brand
Manager,
MarComm
Chief
Commercial
Officer
(CCO)
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4.1.3 VP (GM)
The Vice-President of the division oversees the product and business development
scenario of the company. He is responsible to the SVP of the division.
4.2 Product Development
This department is responsible for find out the innovative features that can attract the
existing and potential customers. Product development is one of the key departments in the
company. While developing new packages and talk plans this department has to keep in mind the
profit and cost issue. Under all these constraints the department has been producing exciting and
new features which ultimately attract customers.
4.2.1 Value Added Service (VAS)
This is another department which also deals with product development but this
department is concerned only with the Value Added Services that the company offers. Value
added services are those other than basic voice calls. CityCell’s VAS department is one of
leading VAS providers in the country in terms of the number of wide range services that it is
providing.
4.2.2 Brand
The brand department of the company deals with image o the brand to the customers. It
basically helps the brand to portray its intentioned image to the potential target group. This
department along with the Marketing Communication department deals with the promotional
activities.
4.2.3 Corporate Sales
There is a separate office of assistant vice-president for corporate sales who is also
responsible for corporate customer relations. Corporate customers are given high priority in terms
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of sales and also in terms of after sales service. Of course this is due to the high usage and need
for good long term goodwill with such corporate clients. This department however deals mainly
with sales to corporate customers and maintenance of relations with both current clients as well as
scouting out potential new corporate clients, whereas the after sales service and other issues are
dealt with by the customer services operations section of the company.
4.2.4 Channel Sales
The assistant vice president responsible for channel management has the very important
job of setting up marketing channels by which packages are distributed among clients and by
which feedback is obtained from customers. This department is responsible for the selection of
new dealers and motivating them and current dealers to promote CityCell packages to their
customers in their respective areas. This department is also responsible for seeing that there is an
excellent support network for each dealer and that they are satisfied with their monetary or
otherwise remuneration.This department is also responsible for checking that each dealer does not
cut into the sales of another dealer in a very proximal region.
4.2.5 Marketing Communications (MarComm)
The chief responsibility of this department is logically, promotion and communication of
new products and product ideas to customers both directly through selection of advertising media,
then dissemination of information by means of advertisements; and indirectly through dealers by
providing them with promotional material. This department is also responsible for public
relations which do not include corporate relations. This is handled, as I have seen, by other
departments. The responsibility of this department is immensely important especially in the
introduction stage of a package for customers. They also provide help for other departments such
as the front office and services marketing in order to promote CityCell packages to both current
and new customers. This helps very much in handling cases of dissatisfied customers and also in
case of adjusting customers with old packages who have to be convinced to upgrade their
packages to the new ones on offer. The company sub-contracts its promotional materials
production to local companies. A regular number of events are held to integrate promotional
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activities with public relation exercises to enhance the image of CityCell and better promote the
packages on offer.
4.2.6 Product (& Tariff design)
This sub-department is under the Product Development department and is responsible for
the design of packages and the fixing of tariff rates which are actually the rates of usage for each
package. This department is also responsible for the coordination of market research for the
whole company. They will integrate knowledge gleaned from extensive market research into the
design of new packages that fulfills the needs of customers. This is done very frequently as the
needs of even the most stable of customer segments change and the company has to change the
tariff structure of its offered packages accordingly.
4.2.7 FWT and Backbone
This particular department looks after the Fixed Wireless Terminal clients and the
packages. FWT has been one of the most profitable sectors for the company. As a result this
department has a great significance to the company. PBTL has undertaken a commercial program
to expand its business activities to selling back-bone for data transfer to corporate clients. This
network stretches from Chittagong to Sylhet through Dhaka. It has immense potential and may
generate significant revenues for the company. The overall structure of the sales & marketing
department and its sections of CityCell have both advantages and disadvantages in terms of
organizational structural and respective functionality.
4.3 Technology
Only CityCell using CDMA technology in Bangladesh. So. It is important for the research
to know the comparison between CDMA and other technologies.
4.3.1 AMPS
The most commonly used cellular system in North America, the Advanced Mobile Phone
System (AMPS) had also gained widespread acceptance in Asia (specially in Korea, Hong Kong,
Japan, Singapore, etc). An analogue system, this was introduced in the mid 80s and used a
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technique known as Frequency Division Multiple Access (FDMA) to allocate Channels. Thus it
divides its entire allocation in sections of 30 KHz and uses each of these sections as channel.
Thus AMPS is able to provide 30 channels per 1MHz of frequency allocated. The principal
behind AMPS is analogous to dividing up a large hall room (the entire frequency allocated to the
operator) into a number of smaller rooms (channel) once the first pair has completed their
conversation and left the room (disconnected).
4.3.2 Code Division Multiple Access (CDMA)
Code Division Multiple Access is a system in which a subscriber uses the entire frequency
for the entire period that his phone is active. Installing of segregating users by frequency
(FDMA) or time (TDMA) this technology segregates customers by coding the signals in such a
manner that each customer decrypts only one signal at any one signal at any given time. This
would be similar to allowing a large number of people into the hall room, but requiring each pair
to converse in a different language. Thus while everyone would hear everyone else, this would
just be more of background noise rather than interference. On the other hand, each person would
be able to understand this partner, because they would be speaking the same language. One of
major differences between CDMA and the other existing technologies is in terms of frequency
reuse. Using CDMA an operator would use the entire allocated frequency in every cell. The
reuse pattern, therefore, is in effect a ‘one cell reuse pattern’. Therefore, the operator can serve
may more customers per unit of allocated bandwidth compared to either AMPS of GSM. In
general, CDMA capacity is rated to be 10 to 20 times higher then analogue techniques such as
AMPS, and 3 to 5 times higher than other digital cellular technologies such as GSM.
4.3.3 Global System for Mobile Communications (GSM)
GSM stands for "Global System for Mobile Communications." It is mostly a European
system and is largely unused in the US. Introduced in the mid-80s, the Global System for Mobile
(GSM) Communications is a digital cellular used extensively in Europe and Asia. GSM is
interesting in that it uses a modified and far more efficient version of TDMA. GSM keeps the
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idea of timeslots and frequency channels, but corrects several major shortcomings. Since the
GSM timeslots are smaller than TDMA, they hold less data but allow for data rates starting at 300
bits per second. Thus, a call can use as many timeslots as necessary up to a limit of 13 kilobits per
second. When a call is inactive (silence) or may be compressed more, fewer timeslots are used.
To facilitate filling in gaps left by unused timeslots, calls do "frequency hopping" in GSM. This
means that calls will jump between channels and timeslots to maximize the system’s usage. To
compare with the other systems, it should be noted that GSM requires 1 Watt of output power
from the phone.
4.4 Advantages of CDMA
There are numerous advantages of using CDMA technology, the most important of which
are:
(a) Higher Capacity: Since CDMA makes more efficient use of the available spectrum; it
can provide greatly increased capacity. CDMA capacity is rated to be 10 to 20 times higher than
other analogue techniques such AMOPS, and 3 to 5 time higher that other digital cellular
techniques such as GSM. With higher capacity, CDMA accommodates higher demands and
supports new digital services such as data transmission and mobile fixing.
(b) Simplified Planning: CDMA allows system planning to become much easier through
the use of the same frequency in every sector of every cell. As the entire frequency is used in
each cell, operators do not have to retune base stations, thus capacity expansion is quicker and
simpler.
(c) Better Voice and Call Quality: The unique encoding scheme used foe each different
CDMA conversation virtually eliminates cross-talk and dramatically reduces the impact of
interference from other sources. Also, The larger bandwidth of CDMA signals (the signals use
the entire frequency versus only a portion for competing technologies) means that they are less
prone to fading compared to the narrower bandwidths of AMPS and GSM.
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(d) Enhanced Security and Privacy: Since the signals are coded, it is very difficult to
intercept and decode a CDMA signal. This prevents eavesdropping and prohibits cloning and
other types of fraud. Also, due to the wider bandwidth, such phones are difficult to jam.
4.4.1 Disadvantages of CDMA
• Due to its proprietary nature, all of CDMA's flaws are not known to the engineering
community for solving
• CDMA is relatively new, and the network is not as mature as GSM
• CDMA cannot offer international roaming, a large GSM advantage
4.5 Advantages of GSM
• GSM is already used worldwide with over 500 million subscribers
• International Roaming permits subscribers to use one phone throughout Western
Europe CDMA will work in Asia, but not popular European destinations
• GSM is mature, having started in the mid-80s. This maturity means a more stable
network with robust features. CDMA is still building its network
• The availability of Subscriber Identity Modules, which are smart cards that provide
secure data encryption give GSM e-commerce advantages
4.5.1 Disadvantages of GSM
• Lower voice clarity
• Less security for subscribers
• Frequent call drops
Higher number of carriers/base stations required
4.6 Product and services offered by CityCell
4.6.1 Fixed Phone Package
T & T incoming and outgoing with Mobile to Mobile
21

4.6.2 Post Paid Packages
4.6.2.1 ‘CityCell 1000’ (Regular)
Commercial/ Business/ Personal use by high income consumers. This product can reach
the Local T&T, NWD, IDD and all Mobile service operators across the country. It is one of the
old packages of CityCell. Still this package is being provided to many high income group
consumers. Both small and large institutions and organizations subscribe the service as their
needs. (See Appendix-A, table- 2 & 2.1)
4.6.2.2 ‘CityCell 500’ (Regular)
Commercial/ Business/ Personal use by high income consumers. This product can reach
the Local T&T, NWD, IDD and all Mobile service across the country. This is one of the regular
packages which have the most number of subscribers. This package is known and admired to all.
The subscription fee and the tariff are affordable than the other mobile operators are offering.
These days not only high income group but also high medium and medium income groups also
use this service because of the lowest billing rate offered by CityCell. (See Appendix-A, table- 3
& 3.1)
4.6.2.3 ‘Mobile 250’ (Mobile to Mobile with BTTB Incoming and Limited Outgoing)
Personal use by middle income consumers. Significant number of customers is having this
subscription. It is very popular among students and medium salaried servicemen and a good
number people from different occupation are using this line. (See Appendix-A, table- 4 & 4.1)
4.6.2.4 ‘Amaar Phone’ (Mobile to Mobile)
Personal use by mainly medium income consumers. Though not widely used but still this
option is open for a group of people who just want mobile to mobile connection in low rate. (See
Appendix-A, table- 5)
22

4.6.2.5 ‘Tellular’ (Fixed Wireless Telephone)
Commercial/Business use by commercial institutions and business organizations. This
package has been mostly used in village area, but recently I have seen that in city area many
people using this service for mobile to mobile business because of low rate. High frequency
antenna help the FWT sets to reach signals beyond the service area. (See Appendix-A, table- 6)
Table 7: Current Post-paid packages: features and target segment
Package Target market segment
Mega Offer Personal usage, targeted to mass coverage
Apap Super Plus Personal usage, targeted to mass coverage
Alap Super Personal usage, targeted to mass coverage
Aamar Phone Personal use by mainly medium income consumers
Shabar Phone Personal use by middle income consumers
CityCell 500
Commercial/business/personal use by middle/high income
consumers
CityCell Premium Commercial/business/personal use by high income consumers
FWT (Tellular)
packages
Commercial/business use by commercial institutions and
business organizations
4.6.3 Pre Paid Packages
The new-generation subscribers are very interested with this service. It is also helpful for
limited income group of people. ‘Aalap’ pre-paid card is available everywhere and this service
provides flat rate and nation wide roaming. A very significant edge that CityCell pre-paid
packages have over other pre-paid packages from other companies is the package that features T
& T incoming and outgoing. Other benefits for the subscriber:
• SMS facility and other value added services
• Scratch card in a variety of denominations (e.g. Tk. 300, Tk. 400 and Tk. 550)
• Know the balance by dialing *811
23

4.6.3.1 ‘Aalap 24’ (Mobile to Mobile with T & T Facilities)
Aalap 24 is mobile-to-mobile as well as mobile-to-BTTB package. This plan gives
subscribers –
• Access to any mobile in Bangladesh
• 24-hour BTTB connectivity
• 24-hour NWD and ISD facility
• Very attractive and simple tariff plan
• Freedom to choose 3 CityCell numbers and make calls at 50% reduced tariff under
One2One scheme.
5.0 Industry Analysis
The mobile telecommunications industry in Bangladesh is now in its rapid growth stage.
Since the technology is expensive, there are only four companies operating actively the mobile
service. The other three companies are, Grameen Phone, AKTEL, and Banglalink (Orascom)
Telecom. BTTB with its brand, ‘Tele-talk’ has also very recently entered this competitive
scenario.
As operators of mobile cellular services, Aktel, Grameen Phone and Banglalink are direct
competitors of CityCell. The PBTL license was issued in 1989. The three other license were
awarded during November 1996, and are identical to each other, however the licenses awarded to
Aktel, Grameen and Sheba (now Banglalink) for their mobile cellular networks differ in some
aspects from the license that PBTL holds.
5.1 The most significant differences
24

Grameen/Banglalink/AKTEL PBTL (CityCell)
Cellular mobile or fixed communications
Must be digital technology. Can be digital or analogue technology.
License Duration
Licenses valid for 15 years thereafter
renewable annually based on
performance.
License valid for 20 years.
Frequency
Assigned 10 MHz. Assigned a total of 40 MHz.
Operator fee obligations
Operator pays 15% of line rental
revenues to Ministry of Post &
Telecommunications and call charges at
actual to BTTB. Additionally, operators
pay Tk 10 million annually as license
fees.
PBTL has to pay 10% of line rental
revenues and call charges at accruals to
BTTB. No license fees are payable.
Coverage of cell sites
Coverage of each cell may not be greater
than 7 km in urban and 17.5 km in rural
areas.
Coverage is not restricted.
Rollout Obligation
Operators must performance obligations
or pay fines.
No such obligations.
5.1.1 Grameen Phone Limited
Grameen Phone Ltd. (GP) is the current market leader in terms of market share, which is
owned by a consortium of investors comprising of Grameen Telecom and Telenor (Norwegian
state owned telecommunication company, owning nearly 65% of total shares). GP is using the
25

GSM technology to provide mobile cellular services to about 3.4 million subscribers in
Bangladesh. The company started its service in March 26, 1997.
Grameen Phone’s basic strategy is coverage of both urban and rural areas. In contrast to
the “island” strategy followed by some companies, which involves connecting isolated islands of
urban coverage through transmission links, the company has been building continuous coverage,
cell after cell. So far, GP has installed more than 2000 BTS’s around the country for cell to cell
coverage. Grameen Phone has the widest coverage in Bangladesh. The company is planning to
increase the network coverage to 80% of the population from the current 57% within this year.
Grameen Phone launched its service on the independence day of Bangladesh on 26th
March 1997. (See Appendix- A, table:8)
5.1.2 AKTEl (TMIB)
Telecom Malaysia International (Bangladesh) is a joint venture between Telecom
Malaysia and A K Khan & co. TMIB also began operations in 1997 using the GSM technology.
TMIB offers its mobile services under the brand name AKTEL. It operates as a Limited Liability
Company, where the majority shareholder, Telekom Malaysia, own 70% shares, while minority
shares of 30% are owned by A. K. Khan & Co. Bangladesh Limited. The company is now
servicing around 1.8 million customers all over the country.
Aktel has been distinctly ahead in offering the “30 Seconds Pulse” from the first minute of
talk time. Today, The Company boasts the widest International Roaming service in the market
connecting 315 operators across 170 countries. In addition, Aktel is the first mobile operator to
connect Tetulia and Teknaf, the northern and southern most points of Bangladesh. Aktel was also
the first to provide seamless coverage along the Dhaka-Chittagong highway. With a network
covering all 61 (allowable) districts of Bangladesh, coupled with the first Intelligent Network
(IN) Prepaid Platform in the country, Aktel is geared to provide a wide range of products and
services to customers all over Bangladesh.
26

5.1.3 Banglalink (Orascom Telecom)
Orascom Telecom Bangladesh, an Egyptian multinational company with market presence
in 11 countries (and market leader in 9 of them) launched their GSM network on the 10th of
February 2005. This company is the last addition to the GSM family of the local market when on
October 20th, 2004, Orascom Telecom announced the purchase of Sheba Telecom with a cost of
US$ 60 million. The company’s re- branding has been under the name of Banglalink with the
leveraging promise to provide the market with quality service at the most affordable prices fitting
to their communications needs.
It is also worth mentioning that an unprecedented success of sales results followed
the commercial launch of Banglalink in early this year. Orascom is currently serving
around 400,000 subscribers. (See Appendix- A, table: 9)
Vision of Banglalink
"Banglalink understands people's needs best and will create and deliver appropriate
communication services to improve people's life and make it easier"
27

5.1.4 Tele-talk (BTTB)
State-run Bangladesh Telegraph and Telephone Board (BTTB) operates basic telecom
services, national transmission network and overseas communication. It has a monopoly over
interconnections and the international gateway, in which all other telecommunications operators
depend on to connect to the fixed telephone lines and international calls. All phone operators are
also subjected to a monopolistic control by BTTB that limits revenue sharing1
arrangements. Just
two and a half months back, BTTB had launched their much-awaited mobile phone, Tele-talk
which has generated hype among the potential subscribers. As of now, Tele-talk has a small
customer base of 40,000 with only T&T connectivity. But the major feature of this package is
absolutely free incoming from BTTB which has strongly swayed the market in favor of the new
package.
Market share of the mobile phone operators in
Bangladesh
57%
29%
7%6%1%
GrameenPhone
Aktel
Banglalink
CityCell
Teletalk
Source: The Daily Star; Mar 13, 2006
5.2 SWOT Analysis of CityCell
This SWOT Analysis is a result of the knowledge gained working for CityCell.It is a very
important tool for a company for a company to analyze its internal external environment. Now,
the SWOT analysis of City Cell is shown.
1
28

5.2.1 Strengths
1. Competitive tariff structure
Price is a big competitive advantage for CityCell. CityCell is the only organization which
is selling CDMA mobile phones with both way T&T facilities at the lowest rate. For example,
the lowest package rate of CityCell is Tk 4,999/= with T&T incoming and outgoing facilities
(‘Alaap Call Me’, pre-paid). With T&T facilities the other competitors are no where near
CityCell. This package has a fantastic and a very innovative feature, Call2Cash, in which any
subscriber of this package can ‘earn’ or collect 0.25 takas per minute in his/her pre-paid
account upon receiving a call from any CityCell mobile.
2. No ‘Busy Network’
Because of enormous number of channels, excess to CityCell mobile phones is very easy.
The rate of call drops is very low. It possesses high quality voice and data transmissions.
3. Advanced technology
CDMA technology is the best technology for telecommunication. World class mobile
operators and world class mobile phone manufacturers are advancing to this new technology.
CityCell is one of the few mobile service providers which are using CDMA technology.
Where as other GSM mobile service provider has to make huge invest or will need time for
transformation. Current CDMA 1X platform paves the way for easier migration to 3G
technology
4. Low Cost
CityCell follows low cost strategies that enables greater profit margin for shareholders. It
tries to cut cost in every possible way to maximize the strengths for future battle.
5. Dedicated & professional management team
Dedicated core staffs who are willing to provide significant labor hours to accomplish
targets.
29

5.2.2 Weakness
1. Fewer staff
The number of staffs working for CityCell is not enough at all. Far fewer staff than
actually required in terms of tasks to be completed.
2. New technology
CDMA is the latest technology but it is not widely used. A still more popular option is
GSM. It is more difficult for CityCell to provide international roaming because of few
number of CDMA operators around the globe.
3. Low network coverage
Though CityCell started to provide mobile telecommunication ten years back, it is still in
behind the other operators from the point of nationwide coverage. Grameen phone was able to
use the optical fiber network of Bangladesh Railway through strong lobbying with the past
government for the next twenty five years. That’s why Grameen Phone’s expansion has been
huge, whereas CityCell has covered roughly 58 districts all over the country with a poor
infrastructure.
4. Lack of education
The subscribers are not educated enough to handle sophisticated CDMA mobile handsets
effectively. That’s why proper knowledge is essential to handle these mobile sets.
30

5.2.3 Opportunities
1. Advanced technology
Since CDMA technology is the latest in the wireless telecommunication industry, it is yet
to find new potential in the short future.
2. Secured data transfer
Secured data transfer means CityCell has the potential to be the leading player once e-
commerce takes off.
3. Overseas expansion plan
The growing need for across border telecom services at lesser cost (e.g. with neighboring
India, Burma, then onto Thailand, etc) can be an opportunity for CityCell.
4. Acquisition of Singtel
The acquisition of 45% equity stake of CityCell brings more opportunity for CityCell. The
company now has greater capital and more budget to invest on its network facilities. In fact,
of the $118 million investment of Singtel in PBTL, $90 million would be spent in network
expansion plans2
.
5. Leadership in telecommunication services
Bangladesh government has already started to provide license to private sectors to set up
land phone. PBTL is the only mobile phone operator with nationwide mobile & fixed license.
With full nationwide coverage and a huge capital investment from Singtel, it is possible to
become the market leader for CityCell.
2
31

5.2.4 Threats
1. Technology factor: There is a high degree of acceptance of GSM technology over
CDMA in local market.
2. Legal problems: Tough legislation against easy expansion into regional and
international markets bypassing the state owned BTTB.
3. Newly imposed tax: In the fiscal budget proposed last week, the government has
imposed a Tk. 1200 tax on each and every SIM/RUIM card which would hurt the regional
expansion plans, increase of customer base in the lower segment and the profit motive for
every operator including CityCell.
4. New competitors: International competitors like ‘Warid Telecom’ of Dhabi Group
enters the local market with full coverage and low price, then not only CityCell but also
other mobile operators would be in great trouble. Already Orascom (Banglalink) is giving
other operators a run for money and market share.
5. Global companies: In India global companies like ‘AT&T’ of the United States
and in Eastern Asia ‘Vodaphone’ of the United Kingdom is working well. They might
think to enter Bangladesh with higher capital. If so, it will be a huge threat for all of the
existing operators. There are rumor of AKTEL’s acquisition.
6. BTTB mobile phone: BTTB has already entered the mobile telecommunications
industry (Tele-talk). It might carry unfair Government advantages and cause severe
problems to all other mobile phone operators.
32

6.0 Conceptual Model of Mobile Users in Bangladesh
Figure 3 displays a conceptual model of the attitude of the mobile users in Bangladesh.
An understanding the attitude of the youth market of mobile users toward mobile phone services
will be gained within the context of this model. The model has two different parts in it. The first
part exhibits the antecedents or factors (internal and external) influencing the attitude of the
young mobile users; the second part exhibits the attitude and its components (Cognitive,
Affective, and Cognitive) of the young mobile users. (Schiffman and Kanuk, 8th
edition). The
study will be carried out based on the conceptual model of attitude.
Figure 3
A Conceptual Model of the Attitude of the Mobile Users in Bangladesh
33
Internal Factors
- Demographic
Characteristics
- Psychographic
Characteristics
- Behavioral
Characteristics
- Perception toward
“Mobile Phone”
External Factors
- Media and
Advertising
- Brand Image
- Service Offerings
- Reference Group
Influence
Attitude of the Mobile
Users
-Cognitive
- Affective
- Conative
Consequence/Outcome
Factors/Antecedents
Source: The antecedents/factors, and their proposed relationships with the attitude of the mass market of mobile
users were gleaned from a large body of literature and were adapted for this model.

6.1 Components of the Attitude of Mobile Users
Attitude is a learned predisposition to behave in a consistently favorable or unfavorable
way with respect to a given object (Schiffman and Kanuk, 8th
edition). According to the tri-
component attitude model, attitudes consist of three major components: a cognitive, an affective
and a conative component. By understanding the components of the attitude of young mobile
users, the researcher can better explain or predict their behavior in terms of mobile phone.
6.1.1 The Cognitive Component
The first part of the tri-component attitude model consists of a person’s cognitions, that is,
the knowledge and perceptions that are acquired by a combination of direct experience with the
attitude object and related information from various sources (Schiffman and Kanuk, 8th
edition).
This knowledge and resulting perceptions commonly take the form of beliefs; that is, the
consumer believes that the attitude object possesses various attributes and that specific behavior
will lead to specific outcomes (Schiffman and Kanuk, 8th
edition). By using a specific mobile
phone service and by collecting information regarding that service from various sources (friends,
internet etc.), a person may form a belief regarding that mobile phone service. If the person has a
positive experience with that brand and hears “good” about that brand from sources (friends,
family), he/she may form a positive belief regarding that brand.
6.1.2 The Affective Component
A consumer’s emotions or feelings about a particular product/brand constitute the
affective component of an attitude (Schiffman and Kanuk, 8th
edition). These emotions and
feelings are frequently treated by consumer researchers as primarily evaluative in nature; that is,
they capture an individual’s direct or global assessment of the attitude object (i.e., the extent to
which the individual rates the attitude object as “good” or “bad”) (Schiffman and Kanuk, 8th
edition). It is like asking a young mobile user to evaluate a brand by his/her emotion or feeling
towards that brand; that is, whether he/she holds a good/bad feeling about that brand.
34

6.1.3 The Co native Component
Conation, the final component of the tri-component attitude model, is concerned with the
likelihood or tendency that an individual will undertake a specific action or behave in a particular
way with regard to the attitude object (Schiffman and Kanuk, 8th
edition). In marketing and
consumer research, the conative component is frequently treated as an expression of the
consumer’s intention to buy (Schiffman and Kanuk, 8th
edition). The likeliness to buy a specific
mobile phone service will present the conation of the young mobile users.
Figure 4
A Simple Representation of the Tri-Component Attitude Model
Source: Consumer Behavior (Schiffman and Kanuk), 8th
edition
35
Conation
Cognition Affective

6.2 Antecedents/Factors Influencing the Attitude of Mobile Users
In this study, the researcher is trying to identify the factors influencing the attitude of the
youth market of mobile users. These factors can be internal (such as demographic,
psychographic, behavioral etc.) or external (such as media, advertising, reference groups etc).
Both these factors have combined influence on the attitude (cognitive, affective, and co native) of
youth. Attitudes have a motivational quality; that is, they might propel a consumer toward a
particular behavior or repel the consumer away from a particular behavior (Schiffman and Kanuk,
8th
edition). In terms of this study, I can say that - a positive attitude toward a mobile phone
operator may motivate the person to buy that particular brand and a negative attitude toward a
mobile phone operator may motivate the person to avoid that particular brand. Therefore, the
attitudinal changes brought by the internal and external factors in the youth market of mobile
users are very important to investigate for the mobile operators.
Certain external and internal factors/antecedents influence the youth market of mobile
users, which are outlined here.
Table 10: Variables and Attributes
Variables Attributes
Internal Factors
1. Demographic Characteristics Age
Gender
Occupation
Education
2. Psychographic Characteristics
(Personality)
Innovativeness
Need for Uniqueness
Exploratory Purchase Behavior
Vicarious Exploration
Use Innovativeness
Visualizers vs. Verbalizers
3. Behavioral Characteristics Usage Situation
Benefits
Usage rate
36

Loyalty status
Service Preference (Pre vs. Post)
4. Economic Consideration
External Factors
1. Media and Advertising Media Preference
Media Exposure (Frequency and Timing)
Consumer Promotion Tools (free SMS; buy
1, get 1 free; discount on call-rate etc)
2. Brand Image Present image
Brand evaluation based on various criteria
3. Youth Service Offering GenYo vs. D-Juice vs. Fun Dose
Recommendations from Consumers
4. Reference Group Influence Reference Groups:
Family Members
Friendship Groups
Work Groups
Celebrities
Source: The attributes of the internal and external variables of the youth market of mobile users were gleaned from a
large body of literature. (Schiffman and Kanuk, 8th
edition)
6.3 Internal Factors
In order to understand the attitude of the youth market of mobile users, the researcher has
to consider certain internal factors such as their demographic, psychographic, and behavioral
characteristics. Along with these characteristics, the researcher has to consider their perception
regarding the product “mobile phone” itself. According to the youth market analysis and
consumer research organization, Macro, the importance of identifying target groups in terms of
age, gender, and socio-economic level is self-evident (2004). The relevant internal characteristics
are described below:
6.6.1 Demographic Characteristics
In any study, demographic characteristics are usually considered in the analysis. It generally
includes age, gender, occupation, household income, etc. As the attitude of mobile users differs
37

from segment to segment, it is very important for the researcher to get individual picture of each
demographic segment separately. The demographic characteristics considered in this study are
described below.
• Age
Age is profoundly related with the maturity of the person and the issues that basically
structure person’s likings and disliking in behaving socially. Age has important impact in
determining the consumer behavior towards the market (MACRO). It is mostly evident in the
purchasing behavior differences regarding the age discrepancies. As the study is based on the
youth market, the age limit is considered here from 13 to 28
• Gender
The differences in consumption behavior of people to some extent greatly relevant with
gender differences (MACRO). It is to find out whether the consumption differs in gender
variation and the consumption pattern as well as overall attitude towards the youth market.
• Occupation
As child-rearing practice figures persons norms in the very early stage of human life,
occupation shapes the attitude in the matured stage. It influences person in the socialization
process where all the social functions are involved. Thus here the occupation is to find out the
person’s occupational influences.
6.6.2 Psychographic Characteristics
To understand the attitude of young mobile users, the researcher has to consider certain
psychographic characteristics such as social class, certain personality traits etc. These
characteristics influence the attitude of the youth market.
• Innovativeness
Consumer innovators are those who are likely to be the first to try new products, services, or
practices (Schiffman and Kanuk, 8th
edition). The market response of such innovators is often a
38

critical indication of the eventual success or failure of a new product or service (Schiffman and
Kanuk, 8th
edition). Therefore, this trait is crucial for this study.
• Social Character
As used in consumer psychology, social character is a personality trait that ranges on a
continuum of from inner-directedness to other directedness (Schiffman and Kanuk, 8th
edition).
Inner-directed consumers tend to rely on their own inner values or standards in evaluating new
products and other-directed consumers tend to look to others for direction on what is right or
wrong (Schiffman and Kanuk, 8th
edition). This trait is significantly related to the youth market of
mobile users.
• Need for Uniqueness
Consumers who have “need for uniqueness” (NFU) seek to be unique. For these people
conformity to others’ expectations or standards, either in appearance or in their possessions, is
something to be avoided (Schiffman and Kanuk, 8th
edition). This is of course an important trait
to consider in order understanding youth segment.
• Exploratory Purchase Behavior
Exploratory purchase behavior refers to switching brands to experience new and possibly
better alternatives (Schiffman and Kanuk, 8th
edition).. This is a very common tendency among
the young mobile users who always seek for new and attractive features in their mobile phones.
• Vicarious Exploration
Vicarious exploration refers to securing information about a new or different alternative and
then contemplating or even daydreaming about the option (Schiffman and Kanuk, 8th
edition).
Looking for information regarding new offers, features, options etc is very common among youth
segment.
39

• Use Innovativeness
Use innovativeness refers to using an already adopted product in a new or novel way
(Schiffman and Kanuk, 8th
edition). The youth market today is a segment of society that has been
active in transforming the application and use of digital technologies in unprecedented ways
(Selian, 2004). The use-innovativeness trait is particularly relevant to technologic products, in
which some models offer an abundance of features and functions (Schiffman and Kanuk, 8th
edition).
• Visualizers vs. Verbalizers
Visualizers refer to consumers who prefer visual information and products and verbalizers
refer to consumers who prefer written or verbal information and products (Schiffman and Kanuk,
8th
edition). Understanding visual vs. verbal preference among the mobile users will help the
mobile operators to design advertising and select media according to the choice of the segment.
6.6.3 Behavioral Characteristics
Behavioral characteristic is an extremely popular and effective form of segmentation
edition). By understanding the behavioral characteristics, the
researcher will get to know young mobile users usage pattern, awareness, loyalty etc., which in
turn influence the attitude of this segment. Thus, behavioral characteristics play an important role
in understanding the attitude of the youth market of mobile users. Under the behavioral
characteristics, the researcher has considered following attributes.
• Usage Situation
Marketers recognize that the occasion or situation often determines what consumers will
purchase or consume and for this reason, they sometimes focus on the “usage situation” as an
important behavioral characteristics (Schiffman and Kanuk, 8th
edition). Some situational factors
that might influence a purchase or consumption choice include - time (when), objective (why),
location (where) and person (for whom). To understand the youth market of mobile users, this is
a very important behavioral attribute.
40

• Benefits
Marketing and advertising executives constantly attempt to identify the one most important
benefit of their product or service that will be most meaningful to consumers (Schiffman and
Kanuk, 8th
edition). Examples of benefits that are commonly associated with mobile phones are
communication, entertainment, information, social status etc. By recognizing the key benefits of
mobile phone among the youth market, the mobile operators can focus more on those specific
features and improve them.
• Usage rate
Usage rate differentiates among heavy users, medium users, light users, and nonusers of a
specific product, service, and brand (Schiffman and Kanuk, 8th
edition). To understand the youth
market of mobile users, it is important to identify their usage rate of mobile phone.
• Loyalty status
Marketers often try to identify the characteristics of their brand loyal consumers so that they
can direct their promotional efforts to people with similar characteristics in the larger population
edition). Other marketers target consumers who show no brand loyalty
(brand switchers) in the belief that such people represent greater market potential than consumers
who are loyal to competing brands (Schiffman and Kanuk, 8th
edition). To identify the loyalty
status of the youth market of mobile users, it is very important for the mobile operators to focus
on this attribute.
• Service Preference
All mobile operators have two major service categories, post paid and pre-paid. In post-paid
service, the subscribers have the facility of paying the bill and line rent at the end of the month.
On the other hand in pre-paid service, the subscribers enjoy the benefit by purchasing pre-paid
cards of different amounts starting from Taka 50/- to 600/-.
In this study, the researcher will ask the respondent about the type of service category
(post paid or pre paid) he/she uses. This way the researcher will be able to find out the service
41

preference of the mobile users in Dhaka city. Then, the researcher will also try to find out the
reason of the subscriber behind preferring the pre paid or post paid. This will help the researcher
to know the features that inspired the subscriber to select one particular service category. After
that, by asking the reason of not using the other service category, the researchers will come to
know about the flaws of that particular category. Thus, it will help the product development
department to redesign the category and to be a preferable one as the other one.
6.6.4. Economic Consideration
In this study, the researcher will asked the respondents about their economic condition
regarding their use of mobile phone. This would help the researcher to know more about their
expense pattern. To know this, the researcher would ask about the person who bought him/her the
current mobile connection, the person who normally bears their regular mobile expense, and even
who is going buy him/her the next mobile. This way, the researcher can get idea about economic
condition of the prospective buyers of the new mobile package or any value added services
targeted towards the people.
6.7 External Factors
External factors include promotional characteristics, which constitutes media and
advertising, brand image, package offering, and service variety. These are mostly the services
offered by the mobile operators in order to influence the decision making process of the market.
Another external factor is reference group influence of the market of mobile users. This
constitutes family, friends etc. Audrey N. Selian has also mentioned the forces of peer pressure
and conformity in his research on youth market of mobile users in USA (2004).
6.7.1 Media and Advertisements
By giving advertisements in various media, the mobile operators actually make people
aware about their different services. Therefore, advertising is the non-personal communication of
information, usually paid for and persuasive in nature, informing about products or services by
identified sponsors through various media (Banglapedia, 2000). On the other hand, media refers
42

to communication vehicles such as newspapers, magazines, radio, television etc. (Hairong Li,
2003)
• Media preferences
The researcher will try to find the media preference of young mobile users. This will help to
select media to promote the new product targeted towards the youth market of mobile users.
• Consumer Promotion Tools
The mobile operators often offer different types of consumer promotion tools in order to
attract their targeted market, like free SMS, buy 1 get 1 free etc. In this study, the researcher will
find the promotional tools that are preferred by the young mobile users. This will help the mobile
operator to select an appropriate promotional strategy for this segment.
6.7.2 Brand Image
Brand image is the sum of all tangible & intangible traits – the ideas, beliefs, values,
prejudices, interests, features & ancestry that make it unique. A brand image visually &
collectively represents all internal & external characteristics – the name, symbol, packaging,
literature, signs, vehicles & culture. It’s anything & everything that influences how a brand or a
company is perceived by its target market. (www.brandwerksgroup.com)
At present, there are four mobile phone service providers operating in Bangladesh. They
are namely, AKTEL, Grameen Phone, CityCell and Bangla link. Each of companies has
differentiated itself on the basis of frequent service offerings, attractive service at lower cost,
strong network coverage, and fabulous package offerings at lower price.
• Current Image
As far as the study is concerned, the researcher will ask the respondent to rank the four
mobile operators, in terms of their established brand association in the market. This will help the
researcher to find out the current image of each of the mobile operators perceived by the mass
market of mobile users.
43

• Brand Evolution Criterion
In this study, the researcher will ask the respondents to express their perception about the
features of different mobile operators based on different criterion. For example, the respondent
will be asked to rank the features like, initial price, pulse rate, promotional campaign, network
coverage, or special offers etc. offered by the mobile operators. This will help the researcher to
identify the most and least preferred features of a mobile phone service while making purchase
decision.
6.7.3 Group Influence
Youth market of mobile user is very much influenced by credible, attractive or powerful
reference group. It enhances and induces their attitude and behavior change. It might be friends or
family but they must be perceived and persuaded as powerful and credible (Schiffman and
Kanuk, 8th
edition).
• Friendship Group
This is the most informal and important referral group in purchasing decision influencer over
youth. Every youth more or less belongs to any friendship group where they are very much
influenced by their consent and likeness.
• Family Members
In Bangladesh the social and cultural infrastructure denotes to tight family bonds that clearly
advocates the purchasing decision influencer of mass market. Moreover, socio economic
condition of Bangladesh depicts the role of families over the youth from the perspective of
financial support.
• Work Group
The formal work group consists of individuals who work together as part of a team and thus
have a sustained opportunity to influence each other’s consumption related attitudes and actions
edition). In Bangladesh working opportunity as part time profession is
44

not available but here in the study this influencing factor will focus to identify the impact of such
group over the junior executives who have just entered in the job market.
• Celebrities
Celebrities, particularly movie stars, TV personalities, popular entertainers, and sports icons
provide a very common type of reference group appeal (Schiffman and Kanuk, 8th
edition).
Particularly in youth segment it has an immense influence due to their young age emotional
interferences. It is highly observed in this segment that people are continuously search for
advocating by the prominent personalities.
7.0 Findings and Analysis
7.1 Preferred Operators
Table: 11
Operators
80 (respondents)
GP 40
AKTEL 18
Bangla Link 14
CityCell 6
Tele Talk 2
45

49%
22%
18%
8% 3% GP
AKTEL
Bangla Link
CityCell
Teletalk
Figure: Percentage of Preferred Operators
The figure and the chart indicate that most of the respondents are the subscribers of
GrameenPhone. After GP, the respondents use AKTEL and Banglalink However, they do not
seem to prefer other operators like, Teletalk and CityCell that much.
7.2 Usage Situation
Table: 12- Occasions of using the mobile phones
Attributes
80
(respondents)
To contact friends & family 34
To make emergency calls 22
To receive others' calls 24
46

42%
28%
30%
To contact friends &
family
To make emergency
calls
To receive others'
calls
Figure: Percentage of Occasions of using the mobile phones
The figure and the chart indicate that 42% of the respondents use mobile to contact their
friends and family. 30%, to receive other calls and 28% people use mobile to make emergency
calls.
7.3 Usage Rate
Table: 13- Average talk time duration
Attributes
% of 80 (r)
Less than 15 sec. 2.56
15-30 sec 10.51
31-60 sec 25.13
1- 5 min 48.46
More than 5 min 13.33
The comparison table and chart indicates that most respondent (48.46%) talk 1 minute to
5 minutes. However, some talk for 31sec to 1 minute.
47

Table: 14 - Average SMS per day
The comparison table and the chart above show that young people at every level love to
send SMS (short message service). Mostly (62%) send less than 5 SMS per day. However, some
29% send more than that (5-10).
7.4 Loyalty Status
Table: 15 - Reasons of switching the current line
Attributes
80(respondents)
New attractive packages 24
Current line is expensive 16
Network problem 24
No GPRS facility 6
Friends' influence 8
Personal Problem 2
Attributes
% of 80(r)
Less than 5 61.79
5 - 10 29.23
11 - 15 4.62
More than 15 4.36
48

30%
21%
31%
8% 10%
New attractive
packages
Current line is
expensive
Network problem
No GPRS facility
Friends' influence
Figure: Percentage of reasons of switching the current line
When I asked people about the reasons behind changing the current line, (if they decided
to), most of them mentioned about the new attractive packages offered by different companies.
Like, most of the school students want to change their present mobile phone line for new
attractive package offers. Apart from this, many students in think that their current line is
expensive, where executive levels think the same. Most of them are not brand loyal and switch
brands whenever there is a better offer in the market.
7.5 Benefit
Table: 16- Perception towards mobile phones
Attributes
80 (respondent)
Communication device 36
Information device 18
Entertainment device 12
Social status symbol 14
49

44%
23%
15%
18%
Communication
device
Information device
Entertainment
device
Social status
symbol
Figure: Percentage of Perception towards mobile phones
The comparison table shows that maximum respondent perceive mobile phone as a
communication device. More than 44 % respondents think the same. 23% respondents also
perceive it as an information source. However, 15% use their mobile phones as the source of
entertainment source. Again, 18 % consider mobile phone as a social status symbol.
Recently people are getting familiar with the different functions of mobile phone and
those are not yet to become a motivating factor for the subscribers. That is why people still
perceive mobile phone as a communication device.
7.6 Service preference
Table: 17- Use Pre-paid or Post-paid
Attributes
80(respondents)
Pre-paid 64
Post-paid 16
50

Pre-paid
80%
Post-paid
20%
Figure: Percentage of Service preference
The comparison table shows that maximum young mobile users prefer pre-paid mobile
service than post-paid. Everybody knows that Post–paid is expensive than Pre-paid. Moreover,
Pre-paid gives some additional facilities to the students, who carries the regular expense of using
a mobile phone. A big portion in university level, use Pre-paid, where the office executives’ use
post-paid. Again, the young earners wants to talk much but don’t want to make mandatory
monthly line rent due to communications. At the moment City Cell has 85% pre-paid uses and
15% post-paid users.
7.7 Economic Consideration
Table: 18 - Carrier of the regular mobile phone expense
Attributes
80 (r)
My Parents 30
Myself 46
Relatives 2
Brother / Sister 2
51

37%
57%
3%3%
My Parents
Myself
Relatives
Brother / Sister
Figure: Percentage of Carrier of the regular mobile phone expense
The chart indicates that almost 57% of the respondents carry their regular expense using a
mobile phone, without taking any help from their parents. They carry their regular mobile phone
expense from their personal income. 37% of the respondents are mostly dependent on their
parents for their regular mobile phone expenses, as students at this level usually do not have any
personal source of income. However, some of them carry own expenses by engaging themselves
in part time jobs.
7.8 Media Preference
Table: 19
Media
80 (r)
Television 24
Newspaper 34
Magazine 2
Billboard 20
others 0
52

I asked the respondents about their top 3 preferred media. This would help the mobile
operator to select the media for any offering targeted towards the segment. The findings show
that, Newspaper is their first priority, then Television is the second, and then Billboard is their
third priority. It implies that, maximum respondents like to go for detail information in
Newspaper than visual image in Television.
Therefore, I can conclude that, Newspaper would be the best for giving advertisements
with detailed information and Television and Billboard can be preferred for informing, creating
awareness, and giving reminders.
7.9 Consumer promotion
Table: 20 - Consumer promotional tools
Attributes
80(r)
Free talk time 24
Free SMS 17
Discount card 25
Buy 1, get 1 free 6
Free ring tone download 8
53

30%
21%
31%
8%
10%
Free talk time
Free SMS
Discount card
Buy 1, get 1 free
Free ring tone
download
Figure: Percentage of Consumer promotional tools
I asked the respondents about their most preferred consumer promotion tool that they
would like to have with their mobile phone connection. I find that students in both private and
public universities want “free SMS” the most. Sending and receiving SMS have become a new
trend among the youth group. Sometimes sending a SMS is enough than making a call. Students
in this level seem to know it very well. The chart also shows that most of the respondent want
free talk time and free SMS as promotional tools. I got the same result from the junior executive
level.
It implies that young people enjoy the free talk time offered by the mobile operators from
time to time. Besides this, they also want various discount cards to get discounts in concerts, food
courts etc. Buy1, get 1 free and discount card offers are also popular among the young people.
7.10 Brand Image
7.10.1 Brand image of Telecom companies
The researcher has used the projective technique (word association) in order to identify
the brand image of the present mobile phone companies in Bangladesh. While taking the in-depth
interview and questionnaire survey, the respondents were asked to associate a word that comes to
their mind when a company name is uttered. Word association is an effective and easy method to
recognize the image of any brand, and that’s why the researcher has applied it.
54

Grameen Phone is the no. 1 telecom company in Bangladesh. According to 80
respondents of this survey, Grameen phone has a very strong brand image. They consider
Grameen Phone as the “Boss”, which has huge coverage and good network. Even when I divided
the sample into School and College, University and Junior Executive level, their perception
about Grameen Phone remains the same.
AKTEL is the most dynamic GSM service provider in the country. After GP, AKTEL has
second highest no. of subscribers in Bangladesh. All respondents of the survey consider AKTEL
to be the most “Competitive” one and “Clearly ahead”, which is offering the service with a
convenient “Pulse rate, and “Lowest call rate”.
CityCell is the first telecom company, and the only CDMA service provider in
Bangladesh. However, the brand image of this company does seem to be in a good position.
According the 80 respondents, CityCell is the “Cheating cell” and the “Worst” one. They also
think that CityCell is providing the service at the Lowest Rate.
Banglalink is the most upcoming company among the cellphone service providers in
Private sector in Bangladesh. Even though, Banglalink is in its introductory stage, it could build
the brand awareness with in a very short time. According to the 80 respondents at different levels,
Banglalink is the Upcoming Company, which is offering the highest no. of Free SMS to its
subscribers. They also think, Banglalink Can do better in future. In addition, the respondents also
consider Banglalink to be the most Competitive one among the other telecom companies.
Here, the researcher does not compare TeleTalk because TeleTalk is new in market and
the respondents did not gave sufficient information about the compny.
Table: 20 Brand images of Telecom companies
Companies
Brand Image
Grameen Phone
All (%)
AKTEL
All (%)
CityCell
All(%)
Banglalink
All (%)
Huge Coverage 21.47 1.59 2.3 0.49
Good Network 25.94 2.83 3.3 0.29
The Boss 11.8 7.1 2.44 1.08
55

Clearly Ahead 11.76 17.49 1.15 1.47
Competitive 6.58 14.49 5.74 7.95
Can do better 5.74 9.79 8.33 12.17
Cheating Cell 5.08 2.48 4.25 4.43
Lowest call rate 2.48 16.58 21.02 3.73
Upcoming 2.41 6.13 7.22 20.01
Pulse rate 2.28 20.29 9.07 0.29
Worst 1.37 0.76 30.00 7.95
Free SMS 2.11 0.48 5.18 35.13
56

7.21 Brand Evolution
Table: 21 - Features to consider before buying mobile phone connection
Attributes
80 (%)
Per minute call rate 18.41
Network coverage 15.04
Pulse duration 14.87
TNT access 9.09
Initial price 7.35
Customer service quality 7.24
No frequency problem 6.73
Availability of cards 5.78
18%
15%
15%
9%
7%
7%
7%
6%
Per minute call
rate
Network
coverage
Pulse duration
TNT access
Initial price
Customer
service quality
No frequency
problem
Availability of
cards
Figure: Percentage of Features to consider before buying mobile phone connection
I asked the respondents about the features that they consider before buying a mobile
phone connection. The chart shows that most of the respondents consider some common features
before buying a mobile phone service. The first feature they all consider is “per minute call rate”.
The company that offers the lowest per minute call-rate is the most attractive company to them.
57

At the same time, they consider the network coverage and pulse duration. Then they check the
network coverage, as they may often need to contact people living outside Dhaka. However, 10%
look for the T&T access facility, as they may need to contact people who use only T&T. The
table shows that some respondents are very rational in buying their mobile connection; they
consider per minute call rate and network coverage. These two factors are directly relevant with
the mobile phone services.
7.11 The Reference Group
Table: 14 - The Reference Group of buying mobile connection
Attributes
80 (%)
Myself 48.81
Friends 26.33
Family Members 21.21
Celebrities in Ads 1.83
Colleagues 1.46
49%
26%
21%
2%1%
Myself
Friends
Family Members
Celebrities in Ads
Colleagues
Figure: Percentage of the Reference Group of buying mobile connection
Now it is time to know the people, who mainly influenced someone about buying mobile
connection. The comparison table indicates that 49% respondents depend on self-instinct while
shopping for mobile phones. However, they also ask for advices from reference groups. Whereas
some rely on their friends. Family is a great influencer for almost 20% respondents. When 2/3
58

members in a family use the mobile connection of a particular company, then they will influence
other to buy the same line because of FNF call rate which is the lowest rate.
8.0 Recommendations
In this study, the researcher had to gather information from about 80 respondents, which
certainly reflects their behaving pattern towards mobile phone. The researcher can offer some
suggestions for the new mobile package or any value added services targeted towards the youth
market of mobile users, which are based on the findings from this field survey.
8.1 Package feature
• Young people within the age range of 13 to 28 years usually make up to 10 calls per
day.(Table 13 and 14) Moreover, in each call they prefer to talk at least 1 minute and even
more 5 minutes in many cases. Therefore, CityCell should offer lower call rate with peak, off
peak, super off peak option in the mobile package targeted towards the youth segment.
• The users do not have many options, they tend to go for the cost effective one, but not
for the unique one. However, people love uncommon things. However, they always look for
attractive offers whether they are common or not (table: 15). That is why, if CityCell offer
customized services; which are cost efficient, mass segment will buy them. The young
people have high literacy, familiarity, and competency with technology. They like to deal
with technical devices and want to keep up-to-date information regarding new technologies.
CityCell can take this advantage and can direct most of their service towards this lucrative
market.
• The analysis indicates that young mobile users are use-innovative. The youth
segment treats mobile phone as a communication and information device (table: 16) This
implies that they prefer use it as a source of information and entertainment, like cricket
update, dictionary, downloading ring-tone/logo, providing news headlines, sending e-mail,
transferring balance and movie schedule etc. If CityCell offer more services, youth market is
59

highly likely to adopt them. However, the new services have to be cost efficient or else
young users will not use them.
• It is found that, people within the age range of 13 to 28 loves to talk to their friends
and family members (table: 12). Therefore, CityCell should offer lower call rate for the
family and friends number and SMS chat, group SMS etc. at a lower rate.
• Young people prefer to use pre-paid than post-paid (Table: 17) Therefore, the youth
package should have the facilities of the pre-paid mobile connection. Such as no monthly
line rent, card facilities, VAS etc.
• Before offering any new value added service, CityCell need to think about the person
who regularly carries the mobile phone expense of the young mobile users. The researcher
has found that 37% of the young mobile users’ parents regularly carry their mobile expense
which is a big portion of the total respondents. If the parents find the offered VAS beneficial
for their children, only then they would accept their children to spent money for that.
However, when the young user pays the regular phone bill, then anytime he/she can decide to
use the VAS.
8.2 Media selection
• People love to gossip, wherever it is; they love to get things free, whatever it is.
Therefore, CityCell should offer free talk time, SMS, ring tones from time to time. They can
also offer discounts card to buy things at lower price. For that CityCell should prefer
newspapers more than TV and billboards as this are the respondents’ first priority. (Table:
19)
8.3 Brand image
• Young mobile users always keep updated information of new mobile phone services.
This helps them to evaluate all the offers available in the market and buy the best
one.Therefore, the brand and product image of the company are important, and the mobile
operators should work on it before offering a new one.According to the respondents
CityCell’s network as well as coverage is not very good. So, the company should work on it.
60

• A huge portion of the young people does not even know about GenYo offered by
CityCell. The people who know about it do not find it interesting. It is because CityCell itself
does not have a good image in the market. Even the survey indicates that people who want to
be unique and want to buy exceptional products/services do not have a positive attitude
towards CityCell. Therefore, CityCell should try to improve their company image before
offering any new package or option. Young mobile users always keep updated information of
new mobile phone services. This helps them to evaluate all the offers available in the market
and buy the best one. Therefore, the brand and product image of the company are important,
that largely depend on media sector.CityCell should expose their new packages and up
coming features in vast way.
8.4 Brand Evolution
• The analysis indicates that 18.41% respondents consider call rate and 15% consider
pulse duration before buying a mobile connection (table: 21). Therefore, CityCell should
offer lower call rate with peak, off peak, super off peak option in the mobile package with
minimum pulse rate targeted towards the youth segment.
9.0 Conclusion
61

Introduction of sales tax on Subscriber’s Identification Module (SIM/RUIM) has put
negative impact on the country’s private cell phone business. Bangladesh Telecommunications
Regulatory Communication (BTRC) has conducted a survey to assess the impact of the
introduction of the sales tax on SIM, first proposed at the rate of Tk. 1200 in the budget for fiscal
2005-06, and the later lowered to Tk. 900.
The BTRC has recently conducted the survey on connections provided by four private and
a state-owned operators for the months of May and June. It apprehends that the new sales tax on
the SIM might further lower the growth of the local call phone market in the coming months.
This is a sign that the mobile companies are going face a tough time. Moreover, people
mainly prefer to use mobile phone because of its initial low price. Now the situation has changed.
Now the mobile operators have to come up with better package features and services. In order to
increase the growth rate, they can offer packages in installments. This would help them to get
fixed income people as their subscribers. However, the people who wanted to buy a connection;
would buy it anyway. Nevertheless, this added VAT would make people think twice before
buying a mobile connection or even switching the brands. Therefore, the mobile companies
should work on their existing packages and come up with new VAS and packages.
62

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