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Banglalink

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“Bangladesh is well suited for OTH’s [Orascom Telecom Holding] ongoing expansion into emerging markets, and our preparation for the challenges of providing top quality services nationwide is solid. We are confident that Banglalink™ will repeat the success story of Mobilink in Pakistan.”1
–Mr. Naguib Sawiris, Chairman and CEO
Banglalink™ is the latest addition to the GSM family of OTH. Naguib Sawiris, Chairman and CEO of OTH, announced the acquisition of Sheba Telecom (Pvt.) Limited with a cost of US$60m in September of 2004.
As Sheba Telecom, the worst performing network operator in the industry, the company had only 30,000 subscribers. To dispel this image, OTH had re-branded Sheba as Banglalink™ in an attempt to give it a completely new image.
With that kind of a reputation at its disposition, the Banglalink™ management has placed one of the highest priorities on improving its network. In this respect, they have installed state-of-the-art equipment from Siemens and Huawei and brought in over 1,000 people, including experts, from 15 countries around the world to set up the required infrastructure. The system took a record of four months (less than half the normal time) to build. In 2005 alone, Orascom plans to invest $120 million, earmarking close to another $300 million for future investments.
While Banglalink™ started out quite small, it has increased its coverage from 9 to 23 districts in just over three months. The company plans to provide mobile communication coverage to all the 61 districts of the country and its major highways by the end of the year. Moreover, in less than only four months, it now has more than 400,000 subscribers from a mere 30,000 in February before the launch.
Company Vision:
Banglalink understands people's needs best and will create and deliver appropriate communication services to improve people's life and make it easier"
Company Mission:
Their mission is, therefore, to reduce the total cost of ownership of buying and using a mobile phone. Moreover, to achieve this vision, the company has established some values that it tries to instill in its employees. They want their employees, and the company as a result, to be straight forward, reliable, innovative and, above all, passionate.

Objectives of Banglalink:
The Company has devised its strategies so that it earns healthy returns for its shareholders and at the same time, contributes to genuine development of the country. In short, it pursues a dual strategy of good business and good development.

Strengths
Huge capital investment : As mentioned earlier, Orascom Telecom has great plans for Banglalink™. Wherever OTH has gone, it has become the industry leader there or is on its way there. A possible explanation is that the organization kicks of its companies with a huge capital outlay to help get rid of or solve all the hitches.
In 2005 alone, Orascom will invest $180 million, earmarking close to another $300 million for future investments.
Expertise: As mentioned earlier, OTH had over 1000 people, including 15 experts, working on the infrastructure to get the company started in a record four months. These experts, with several years of experience in the telecom industry, now help in the day-to-day operation of the business.
Tight co ntrol over sales pro cess : Many people in the industry do not know the sales process, since it is dealt by their distributors and dealers. However, with the Direct Sales Booth, the people involved know the sales process intimately and are responsible for achieving the sales target and project implementation, thus giving the company a strong control over the process.

Weaknesses
Netwo rk : The greatest weakness of Banglalink™ and the most widely criticized service is its network. While the reception is quite clear when the user is out of doors, once inside, the reception breaks up. The worst part is the company has entered a market where the industry leader has been reigning supreme for years now and people are bound to compare the leader’s services with Banglalink’s performance, even if it is fairly new to the market. People tend to forget that it had taken the leader more than three years since its start to provide its subscribers with a decent connection; hence it is with Grameen’s present performance that Banglalink is compared and sure enough, the latter does not fare well.
Unorganize d stru ctu re : OTH bought off Sheba (Pvt.) Limited last September and immediately started changing the structure of the loosing concern. They are constantly recruiting people, adding/deleting levels to the organ gram. Thus, the environment is constantly chaotic, with many people not knowing who to contact or whom to report to and who is responsible for what. This takes away timeand energy away from the selling activities. Ina dequate human resour ces: While many people drop off their CVs at the office on a regular basis, finding sufficient numbers of people, with the correct qualifications, has become hard to find. Hence, a handful of people are doing the work of many leading to back log of work.
Bureaucracy: The new management is trying to create a system where each individual is responsible and accountable for his duties. While it is a good idea, it has also created a bottleneck at the administrative & financial level, where work gets stuck and stays stuck until all papers are properly signed and taken care of.

Opportunities
As mentioned earlier, the company created a strong buzz when it entered the market. Previously an unknown entity, many people now know of the existence of Orascom Telecom. They have done their studies and know that OTH stands for success. Thus, the people are ready to see Banglalink™ as a total different entity from its predecessor and are willing to give it another chance to re-invent its image in the market; not an issue to be taken lightly by the company. Others opportunities are-
•Economic growth of Bangladesh.
•New and better interconnection agreement
•Huge need for telecom services
•Increased intentional activities in Bangladesh
•Declining prices for handsets
Future privatization of the fixed network
•New international gateway
•Demand for inter-city communication
•Growth in other operator will give more connection

Threats
While in the true sense it had been Banglalink™ who started this price war with its M2M package, it has created a series of price cuts that many cannot afford. After eight years of high call charges, Grameen has finally decreased its rates.

BTTB has also entered this battle with Teletalk Bangladesh Limited. With free T&T incoming and outgoing, this is sure to become popular once it gains access to other operators’ networks. Others threats are-

More rigid government regulations.

More influence of competitors on the fixed network

Change of government might lead to competitors having more clout

Devaluation of Taka

National catastrophes.

Sabotage of installation.

Non-co-operation of government and fixed PSTN (Public Service Telephone
Network).

Risk of fire in Installations.

Price war.

Non- availability of funds.
•Use their strengths perfectly for better performance

Make the network system with a strong structure because the network system of Banglalink in not quiet good. If they develop th eir netw ork syste m, they will get more and more subscribers, which will be a giant step for the Company.
•We have already mentioned about opportunities of banglalink. There are many opportunities for Banglalink in our country. If they are able to utilize th eir p resent op portu nities , it will be better for their Coompany.
•The greatest threat of Banglalink is, sustistitute mobile operatrs. Besides,
Banglalink has many threats in the mobile industry. They should eliminate th reats as much as possible and make guard against threats.

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