Doninant Features of Telecom Industry of Bangladesh

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Telecom Industry of Bangladesh

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Introduction:

Mobile phone has become an indispensable part of Bangladesh's everyday-life and has made a "safe haven" in one of our pockets much like our wallet that we never want to leave at home while we head for our work! Thanks to the telecom-revolution and its relentless evolution that together have made it possible even in developing countries like Bangladesh. This is the dominant device that we now express ourselves through, get our work done and share our pains and pleasures with.

Question : What are the industry’s dominant Economic Features?

Answers:

Industries differ so significantly, therefore analyzing a company’s industry and competitive environment begins with identifying an industry’s dominant economic features and forming a picture of what the industry landscape is like.

An industry’s dominant economic features are defined by various factors. Each of these factors are very important to study in order to analyze the dominant economic features of telecom industry. The factors of dominant economic features and their explanations are presented below:

Factors of Dominant Economic Features:

1. Market size and Growth rate

2. The Number and Sizes of Buyers and Sellers,

3. The Geographic Boundaries of the Market (Which can extend from local to worldwide)

4. The Degree of Product Differentiation

5. The Pace of Product Innovation

6. Market Supply/Demand Conditions

7. The Pace of Technological Change

8. The Extent of Vertical Integration

9. Economies of Scale and

10. Learning/Experience Curve Effects

Industry Size

Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of Bangladesh. It is the only CDMA network operator in the country. On March 26, 1997, GrameenPhone launched its service on the Independence Day of Bangladesh. They were the first to introduce GSM technology in country. Sheba Telecom (Pvt.) Ltd. obtained GSM license in 1996 to extend its business to cellular mobile, radio telephone services. It launched operation in the last quarter of 1997 as a Bangladesh-Malaysia joint venture. In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited ("Sheba") & renamed it as Banglalink. Robi (formerly known as Aktel) launched its operations on the 15 November, 1997 in Dhaka and on 26 March, 1998 in Chittagong. Robi was formed as a joint-venture between Telekom Malaysia (now known as Axiata) and A.K. Khan Company. NTT DoCoMo, the Japanese Telecom Giant purchased A. K. Khan's share on September 19, 2008. The Only totally Bangladeshi owned operator TeleTalk started operating on 29 December, 2004. Warid was the sixth mobile phone operator to enter the Bangladesh market, and launched commercial operations on May 10, 2007.

Telecom Industry Growth

Consumer demand in Bangladesh makes the mobile and telecom market one of the fastest growing markets in the world. During the first six months of 2007, Bangladesh recorded 7.7 million subscribers, and by the end of that year around 35 million subscribers (a market penetration of 25%) was recorded, signifying year-on-year growth of 70%. Business Monitor International (BMI) has predicted that by the end of 2011, mobile subscribers will reach figures of around 115 million.

Number of Rivals

The Industry is fragmented into the following six companies

Banglalink/Sheba (Orascom Telecom Holding S.A.E), GrameenPhone (Telenor & Grameen Telecom Corporation,), Robi/Aktel (Axiata Group Berhad & NTT DoCoMo INC), Citycell (Singtel, Pacific Group and Far East Telecom), Warid (Bharti Airtel & Warid Telecom International), and Teletalk (BTCL). But thought all are trying their best. The industry is dominated by GrameenPhone.

There are other competitors in the market,

1. BTCL Former BTTB

2. Peoples Telecommunication and Information Services...
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