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1. Introducing the Company 1.1 the Company Pacific Bangladesh Telecom Limited (PBTL) Is the First Mobile Phone Service Provider

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1. Introducing the Company 1.1 the Company Pacific Bangladesh Telecom Limited (PBTL) Is the First Mobile Phone Service Provider 1. Introducing the Company 1.1 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. PBTL was founded by Pacific Group Limited and Hutchison Whampoa Limited. CityCell is the brand name under which Pacific Bangladesh Telecom provides wireless telecom or mobile phone service and products to the general and other customers. 1.2 Pacific Group Ltd. 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. 1.3 Hutchison Whampoa Ltd. Hutchison Whampoa Limited (HWL) is a Hong Kong-based diversified, multinational company with its origins dating back to the 1800s. As part of the Li Ka-Shing group of companies, HWL's ultimate shareholder is Cheung Kong (Holdings) Limited, which has a 49.9 % interest in the Company. In terms of market capitalization, HWL is one of the largest companies listed on the Hong Kong stock exchange. With over 150,000 employees worldwide, the Group operates five core businesses in 41 countries. 1.4 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 1 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. With this acquisition of 10% shares in PBTL by Fujitsu Limited, a Global Fortune 500 company, they have further strengthened their presence in Bangladesh and also have demonstrated confidence as well as their commitment to the Bangladesh market. Fujitsu has long been supplying Microwave links and telecommunications equipment to BTTB and is clearly a leading market player in providing telecommunication solutions in Bangladesh. Being 10% equity shareholder of the company Fujitsu is in a position to nominate 1 (one) Director to the Board of PBTL. Pacific Bangladesh Telecom Limited (PBTL) Pacific Far East Asian Inf. Fujitsu Ltd. Motors Ltd. Telecom. Dev. Co. Ltd. (FL) (PML) Ltd. (AIDEC) (FETL) (20%) (40%) (30%) (10%) Fig 1: Ownership structure of PBTL (CityCell) 2 1.5 History in brief Table 1: Chronology of CityCell's Achievements Date Event Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular, paging, and other 1989 wireless communication networks. Hutchison Bangladesh Telecom Limited (HBTL) was incorporated in Bangladesh as a joint Apr-90 venture between BTL and Hutchison Telecommunications (Bangladesh) Limited. Aug-93 1st cellular operation in the South Asian sub-continent Aug-93 HBTL began commercial operation in Dhaka using the AMPS mobile technology. Dec-93 Pacific Motors Limited acquired the entire 50% share holding of HBTL. HBTL was renamed as Pacific Bangladesh Telecom Limited (PBTL) and launched the brand Feb-96 name “CityCell Digital” to market its cellular products. Mar-97 1st to extend coverage to Chittagong. Apr-97 CityCell began commercial operation in Chittagong. Mar-99 1st to adopt CDMA technology. CDMA technology was first introduced by CityCell. Jan-01 1st to set-up a communications backbone to Chittagong. Apr-01 Dhaka-Chittagong microwave is launched. Nov-01 CityCell introduced the 15-second pulse rate in the cellular industry of Bangladesh. Jan-02 CityCell commences operations in the Sylhet zone. Value Added Services (VAS), such as 24 hour billing information, news, services, sports, etc., are Jan-02 introduced. Mar-02 First operator in Bangladesh to offer off-peak rates. July-02 First operator in Bangladesh to offer prepaid services with two-way PSTN (BTTB) connectivity. Sep-02 CityCell extends coverage to Rangpur, Dinajpur, & Syedpur, the northern districts of Bangladesh. Oct-02 Short Message Service (SMS) is introduced. Jan-03 CityCell launched its services in the major northern business city of Bogra. Feb-03 First operator in Bangladesh to introduce the One2One post-paid package. Jun-03 CityCell reaches a coverage level of 40 districts out of a total of 64 (61 districts eligible). Jun-03 Network capacity is increased to 240,000. CityCell introduces “Amar Phone”, a postpaid mobile-to-mobile package offering the lowest Aug-03 outgoing rate per minute in Bangladesh. Sep-03 First operator in Bangladesh to introduce IDD and NWD for prepaid subscribers. Oct-03 CityCell reaches a coverage level of 51 districts out of a total of 64 (61 districts eligible). Nov-03 CityCell’s 24-hour customer call center opens. Network capacity is increased to 280,000. Mar-04 CityCell opens its customer service centres 7 days a week countrywide. June-04 CityCell launches RIM based handsets. CityCell introduces, “Alaap Call me”, a pre-paid BTTB both-way connectivity package with the Mar-05 unique “Call2Cash” feature to earn (talk-time) credits upon receiving CityCell calls. June-05 Singtel acquires 45% equity stake of CityCell. Has a call option to acquire another 15% by 2007. 2. Mission, Vision, Objectives, Strategies 3 2.1 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. 2.2 Vision The Vision of the company is “To 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. 2.3 Objectives 2.3.1 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. 2.3.2 Quantifiable objectives: • Increase subscriber base to 1 million by Dec 31, 2005 • 99.5% overall network availability by the end of 2005 • Network coverage in 61 districts (out of eligible 61) by the end of 2005 2.4 Strategies 2.4.1 Functional Level Strategy • PBTL’s focus is on efficiency, quality, innovation, and customer responsiveness. 2.4.2 Business Level Strategy • PBTL applies cost leadership and differentiation strategies as its business level strategies. 2.4.3 Corporate Level Strategy • PBTL follows related diversification as their corporate level strategies. 4 3. Organizational Structure PBTL has a total of about 500 employees: Fig 2: Organogram of Pacific Bangladesh Telecom Limited 3.1 Sales & Marketing: As the name implies, this division’s job is to conduct marketing promotion of CityCell. The job of its employees is to maintain relationship distribution channel, media, and corporate clients. This division also deals with value added services, brand and product design. In the Sales Division there are Channel Sales, Corporate Sales and Direct Sales. In the Marketing Division, there are Market Communications, Brand, VAS, Product Development and FWT & Backbone Departments. The Senior Vice President is the Chief Marketing Officer of this Sales & Marketing Division. Details about the departments have been discussed in the following chapter. 5 3.2 Customer Service Operation, Billing and IT: This department deals with customer after the sale occurs. Main activities of this department includes maintaining data base of the customers, preparing, distributing, and collecting the bills, activating new connections, deactivating connections, helpline service, interchanging of the CDMA sets, collecting the faulty and repairable sets, returning repaired sets, changing CDMA sets and so on. This department is divided into three divisions: a) Billing and IT b) Service Delivery Billing and IT Risk Management Revenue Generation Fig 3: Billing and IT Service Delivery Front Office Account Verification Collections Workshop Fig 4: Service Delivery 3.3 Finance and Commercial: This department is divided into two divisions, a) LC preparation and Purchase, and b) Fund Management. Here LC is opened for purchasing of sets and equipment, and all the funds collected are used and controlled for the maximum benefit of the company.
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