Research Proposal on

PROBLEMS OF DECREASING MARKET SHARE OF CITYCELL TELECOMMUNICATION SERVICE IN BANGLADESH

Prepared For: Mr. Golam Mohammad Forkan Course instructor BBA faculty Eastern university

Prepared By: Name

Maisha Mahmud Md. Hera Monir S.M.Saiful Islam Tasnuba Bulbul

ID
082200027 082200082 082200052 082200137

JULY 23, 2011

BACKGROUND Telecommunication is the transmission of information over significant distances to communicate. The service revenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and is expected to touch $2.7 trillion by 2013. Telecommunications play an significant role in economy of any country. Developing country like Bangladesh has huge user of telecom service . As a populous country, its huge market has attracted many foreign investors to invest in this sector. For this reason its become a biggest sector in Bangladesh In 1989 Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular, paging, and other wireless communication networks. Then in 1990 Hutchison Bangladesh Telecom Limited (HBTL) was incorporated in Bangladesh as a joint venture between BTL and Hutchison Telecommunications (Bangladesh) Limited. HBTL began commercial operation in Dhaka using the AMPS mobile technology in 1993 and became the 1st cellular operator in South Asia. Later that year Pacific Motors bought 50% of BTL. By 1996 HBTL was renamed as Pacific Bangladesh Telecom Limited (PBTL) and launched the brand name "Citycell Digital" to market its cellular products. Citycell (Pacific Bangladesh Telecom Limited) is Bangladeshs and South Asias pioneering mobile communications company and the only CDMA mobile operator in the country. Citycell is a customer-driven organization whose mission is to deliver the latest in advanced telecommunication services to Bangladesh. when citycell launched in market it was the only wireless telecom service in Bangladesh its earn a huge market share .but then other 5 telecom operator ( Grameen Phone, Robi , Airtel, Banglalink and Telitok) enter in the market and citycell give great completion to the market.at first citycell charge even 16 taka for minute. To stay in market with other competitor citycell low its price even 25 paisa in minute .and also offer many other service.

Citycell continuously try to maintain the quality of their packages. To serve the best quality they are doing their best to use the advanced CDMA technology and they are very much conscious about their customer satisfaction.

Citycell is a service oriented company; design is not an alarming matter for them and also design is not eligible for them. But as far as the cellular handset matter they try their best to keep a regular eye on the CDMA handset manufactures, and they also try to import fair designed sets form them at a margin price. As far as the service is concern citycell tries their level best to achieve customer satisfaction Citycell provides the following maintained exclusive and superior services for their target customers. Citycell provided service

Citycell Prepaid Postpaid citycell postpaid Internet zoom prepaid zoom saver zoom 2GB zoom 3GB ultra Value Added hello tunes Roaming Device

citicell one

classic
global SMS

Handset
Mobile

gift shop dost music box E-mail

mobile bank
After giving so many services citycell market share is decreasing .its market position is now 5th

Mobile Phone Subscribers in Bangladesh

The total number of Mobile Phone Active Subscribers has reached 72.963 million at the end of March 2011. The Mobile Phone subscribers are shown below: Operators Grameen Phone Ltd. (GP) Orascom Telecom Bangladesh Limited (Banglalink) Robi Axiata Limited (Robi) Airtel Bangladesh Limited (Airtel) Pacific Bangladesh Telecom Limited (Citycell) Teletalk Bangladesh Ltd. (Teletalk) Total Active Subscribers 31.982 20.126 13.259 4.607 1.787 1.198 72.963

*Subscribers in Millions **The above subscribers' numbers are declared by the mobile operators

Mobile Phone Subscribers in Bangladesh

The total number of Mobile Phone Active Subscribers has reached 54.7 million at the end of March 2010. The Mobile Phone subscribers are shown below: Operators Grameen Phone Ltd. (GP) Axiata (Bangladesh) Limited Orascom Telecom Bangladesh Limited (Banglalink) PBTL (Citycell) Teletalk Bangladesh Ltd. (Teletalk) Warid Telecom International L.L.C (Warid) Total Active Subscribers 23.9 10.59 14.22 1.91 1.07 3.01 54.7

*Subscribers in Millions **The above subscribers' numbers are declared by the mobile operators The total number of Mobile Phone Active Subscribers has reached 45.21 million at the end of march 2009. The Mobile Phone subscribers are shown below:

Operators Grameen Phone Ltd. (GP) TMIB (Aktel) Orascom Telecom Bangladesh Limited (Banglalink) PBTL (Citycell) Teletalk Bangladesh Ltd. (Teletalk) Warid Telecom International L.L.C (Warid) Total

Active Subscribers 20.94 8.59 10.70 1.85 0.93 2.20 45.21

*Subscribers in Millions **The above subscribers' numbers are declared by the mobile operators

The total number of Mobile Phone Subscribers has reached 37.55 million at the end of march 2008. The Mobile Phone subscribers are shown below: Subscribers Operators Grameen Phone Ltd. (GP) 17.20 TMIB (Aktel) 7.36 Sheba Telecom Ltd. (Banglalink) 7.88 PBTL (Citycell) 1.51 Teletalk Bangladesh Ltd. (Teletalk) 1.00 Warid Telecom International L.L.C (Warid) 2.60 Total 37.55

*Subscribers in Millions **The above subscribers' numbers are declared by the mobile operators

The total number of Mobile Phone Subscribers has reached 31.42 million at the end of September 2007. The Mobile Phone subscribers are shown below: Operators Grameen Phone Ltd. (GP) TMIB (Aktel) Sheba Telecom Ltd. (Banglalink) Subscribers 15.14 6.70 6.02

PBTL (Citycell) Teletalk Bangladesh Ltd. (Teletalk) Warid Telecom International L.L.C (Warid) Total

1.32 0.68 1.56 31.42

*Subscribers in Millions **The above subscribers' numbers are declared by the mobile operators

PROBLAME STATEMENT: Citycell is the oldest telecom in Bangladesh, the only CDMA operator. Yet it is featuring nowhere near GP, Aktel, Warid Telecom or banglalink. So whats wrong with this company? Citycell has the strongest parent (Singtel). Further all Singtels subsidiaries are giant in their own territories look at Bharti, Telcomsel, Warid (Pakistan), Optus or Globe. And why is Singtel completely silent about their Bangladesh operation? And whats the reason behind to decreasing sales and also market share of citycell. Our main problem statement already we have said. Although CityCell has a long way to go in the post-paid market it has made a good start in pre-paid market. As it is the only pre-paid service to provide TNT accesses, it is expected to have a higher growth rate than its competitors in future. In fact it targets to achieve a customer base of 250,000 in the next one year for its pre-paid service against 150,000 for the post-paid service At a time citycell offered to customer a lots of opportunities and gave customer a verities packages, but day by day its decreasing. But why its decreasing by this report we are going to find out those reasons which are behind of sales decreasing factor of citycell. Generally new can say that there is some reason to decreasing the sales of citycell. Those are given below: Rim system, that contains no replacing or changing option of others sim. CDMA network also expert for internet network.

Have to use specific mobile for citycell connection. Entering the new sim company like GP, Banglalink, Airtel, Robi etc and they giving lots of several offers and new packages. More competitors come in the market and rapidly collect more market share. Change the customers life style and choice.

In the above chart we can see that day by day citycell lose their market share because they become unable to keep hold their market share besides others mobile operators company in Bangladesh. citycell in the place of Fifth player in the market with 1.907 mn subscribers and 2.9% market share as of September 2010. Its day by day decreasing. Thats why now a days citycell has launched their internet connection in high speed. zoom ultra and zoom one is most preferable connection of citycell. Thats why citycell faces this type of problems and also thats why the sales decreasing day by day because customer now only uses citycell for their high bandwidth internet connection not for mobile use. But this opportunities also taking others mobile Operators Company and they gain lots of market share because they increase their sales rapidly. And citycell lose the total control on market share on mobile operators company.

Market share of citycell

year 2007june 2007dec 2008jun 2008dec 2009jun 2009dec 2010jun 2010sep rate of market share 4.70% 4.10% 3.90% 4.10% 4.20% 3.70% 3.30% 3.10%

Citycell market share(2007-2010)

Series1 4.70% 4.10% 3.90% 4.10% 4.20% 3.70% 3.30% 3.10% Series2

OBJECTIVES 1. BROAD OBJECTIVES

The broad objective of the study is to identify problems of decreasing market share of citycell telecommunication service in Bangladesh

2. SPECIFIC OBJECTIVES

To identify product related reasons for decreasing market share of citycell telecommunication service in Bangladesh To identify price related reasons for decreasing market share of citycell telecommunication service in Bangladesh To identify promotion related reasons for decreasing market share of citycell telecommunication service in Bangladesh To identify place related reasons for decreasing market share of citycell telecommunication service in Bangladesh

HYPOTHESIS
Problems of decreasing the market share of city cell telecommunication service our assumption is that the city cell is more complex than other operator because of it purchase by the Rim with its handset otherwise people can get any Sims that are relatively low rate than the city cell Rim.

JUSTIFICATION OF THE REPORT

SCOPE AND LIMITATION There will be plenty of scope to improvise our research but there is certain limitation conducting the research because of time constraint, money constraint and lack of information of related citycell telecommunication service. All this limitation force us to choose small size compare to the total number of subscriber .in this research our prime focus will be the customers.

METHODOLOGY At first we will conduct a pilot study for identifying the problem. Then we will conduct questionnaire for survey research. We will make this survey from some age group of people. We will design a sample frame. In this sample frame we select our sample randomly. Then we will provide questioner to collect the data from the respondent. After collecting the data from the respondent we will analysis our result and in the beginning we assume our hypothesis so we match our result to the hypothesis where as it is null and alternative.

SAM PLING FRAME In our research we select Bangladesh Telecommunication Company Limited (BTCL) to search the active users of different telecom companies and their relative market share. So that, we can consider the related information, especially the users of cell phone as our sampling frame.

DATA For our research purpose we have to collect both primary and secondary data. To collect the primary data we would prepare a questionnaire and we will collect the secondary data from the official website of BTCL and the City Cell Telecom Company. To collect primary data we will conduct a survey by the questionnaire from the selected samples of total population.

SAMPLING TECHNIQUES The population of our survey is very large to collect primary data. Thats why we will follow some techniques to collect data by division of the population by age groups. From every age group we will select one male and one female respondent as our sample.

Dear Sir/Madam: We are students of BBA, Eastern University. We are conducting a research on the city cell telecommunication service in Bangladesh. All information collected will be kept confidential and used only for academic purpose. If you are aged over 15 years and a regular customer of telecom service, we would greatly appreciate it if you complete this questionnaire Thank you.

QUESTIONEIRE

Gende i. ii. Age i. 15-25 Male Female

ii.

25-35

iii.

35-45

iv. 44-55 Which operator are you using

i.

City cell

ii. iii. iv.

Banglalink Airtle Robi

What is the reason to use this operator?

i. ii. iii. iv.

Low cost Network Family Others

Which one is more flexible? i. ii. Sim Rim

City cell call rate is i. ii. iii. High Low Moderate

Is network service i. ii. iii. High low Moderate

Do you see the city cell advertisement? i. ii. iii. Regularly Not regularly Very often

Is the price of city cell? i. ii. iii. Relatively high Relatively low Moderate

Rim is availablei. ii. Yes No

City cell balance transfer is-set quality i. ii. iii. Available Not available Moderate

Variation of handset i. ii. iii. More Few Moderate

Handset quality, feature and style of CityCell areSatisfactory Moderate Not Satisfactory

Lack of Multimedia handset in City Cell areSufficient Moderate Not Sufficient