ANNUAL REPORT 2004

Coverage 2004 Additional Coverage 2005 Ltd. 1 Annual Report 2004

2 This is GrameenPhone 4 GrameenPhone: Preferred by 3.5 million users 8 Main Events 2004 12 Shareholders 14 Key Figures 16 Directors’ Report 26 Profile of the Directors 28 Letter from the Managing Director 32 Management Team 34 Organizational Chart 36 Corporate Governance 42 Corporate Social Responsibility an integral part of GP 44 Village Phone: A year of Dynamic Growth 48 Contribution to Government Exchequer 50 Network Capacity Expands, Quality Improves 52 New Products and Services 54 Successful Launch of 56 International Roaming 58 Customer Management Centers GrameenPhone Ltd. 2 Annual Report 2004

THIS IS [GRAMEENPHONE]

VISION

IDEAS THAT November 28, 1996: GrameenPhone was SIMPLIFY offered a cellular license in by the Ministry of Posts and Telecommunications

March 26, 1997: GrameenPhone launched its service on the Independence Day of Bangladesh

After eight years of operation, GrameenPhone has more than 3.5 million subscribers as of May 2005 GrameenPhone Ltd. 3 Annual Report 2004 The Purpose

GrameenPhone has a dual purpose: to receive an economic return on its investments and to contribute to the economic development of Bangla- desh where telecommunications can play a critical role. The Strategy GrameenPhone's basic strategy is coverage of both urban and rural areas. GrameenPhone builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout GrameenPhone's network. The Technology GrameenPhone's Global System for Mobile or GSM technology is the The People most widely accepted digital system in the world, currently used by over The people who are making it 1.3 billion people in some 150 happen at GrameenPhone - the countries. GSM brings the most employees - are young, dedicated advanced developments in cellular and energetic. All of them are technology at a reasonable cost by well-educated at home or abroad, spurring severe competition among with both sexes (genders) and manufacturers and driving down minority groups in Bangladesh the cost of equipment. Thus, being well represented. They know consumers get the best for the least. in their hearts that GrameenPhone is more than just about phones. This sense of purpose gives them the The Service dedication and the drive, producing - in about eight years - the widest GrameenPhone believes in service, coverage and largest subscriber- a service that leads to good business base in the country. GrameenPhone and good development. Telephony knows that the talents and energy helps people work together, raising of its employees are critical to its their productivity. This gain in operation and treats them productivity is development, which accordingly. in turn enables them to afford a telephone service, generating a good business. Thus, development and business go together. A recent study by London Business School found that, in a typical developing country, a rise of ten mobile phones per 100 people boosts GDP growth by 0.6 percentage points. GrameenPhone Ltd. 4 Annual Report 2004

Preferred by 3.5 million users

..... GP added nearly 1.4 million new subscribers to its network in 2004. It took GrameenPhone six years to reach the one million subscriber mark in August 2003, about one year to reach the second million in September 2004 and just about six months to reach the three million subscriber mark in March 2005.

ore than 3.5 million mobile presently has coverage in nearly other areas of the city and also in Mphone users in Bangladesh 380 upazilas of 61 districts in the and other regions. now prefer GrameenPhone as of country. In June 2005, GP introduced the May 2005. The company is planning to EDGE technology for the first GP added nearly 1.4 million new increase the GP network time in Bangladesh. EDGE (or subscribers to its network in coverage to more than 80 Enhanced Data Rates for Global 2004. It took GrameenPhone six percent of the population within Evolution) is a technology years to reach the one million this year. GP presently has some that delivers broadband-like data subscriber mark in August 2003, 1750 base stations in operation speeds to mobile devices. It about one year to reach the around the country and more allows customers to connect to second million in September than 1000 additional base the Internet and send and receive 2004 and just about six months stations will be added to the data, including digital images, web to reach the three million network this year. pages and photographs, up to subscriber mark in March 2005. eight times faster than an GrameenPhone has always been ordinary GSM/GPRS network. The largest telecommunications a pioneer in introducing new service provider in the country, products, services and The EDGE technology will GrameenPhone is playing a technologies in the local market. provide a boost to the country’s crucial role in increasing the For the first time in the country, nascent ICT sector, which has country’s telephone penetration GrameenPhone has started to been declared as a thrust sector rate, which is still one of the deploy 1800 MHz frequency base by the Government, by enabling lowest in the world with less stations from March this year. GP users to access the Internet than four telephones per 100 along with the other GSM through the mobile phone from people. operators in the country have anywhere in the country.All been using the 900 MHz GPRS-enabled handsets can also Along with the spectacular frequency so far. be used in the EDGE technology growth, since its inception on environment. March 26, 1997, GP has set up This will greatly improve the the largest network with the quality and further enhance the Earlier, faced with limited widest coverage around the call-handling capacity of the base interconnection channels with country.The active support of stations and it will help improve the fixed-line network of the shareholders of the overall customer experience. Bangladesh Telegraph and GrameenPhone has enabled the The 1800 MHz base stations are Telephone Board, GrameenPhone company to make the necessary being initially deployed in the introduced the GP-GP or mobile- investments for this quick northern and central regions of to-mobile service in June1998. growth.The GP network city and later in phases to This service went on to become GrameenPhone Ltd. 5 Annual Report 2004

GrameenPhone has had another successful year in 2004 with the subscriber 2.39 million base reaching 2.39 million GrameenPhone Ltd. 6 Annual Report 2004 GrameenPhone Ltd. 7 Annual Report 2004

The mobile-to-mobile product is now replicated by all mobile phone operators in Bangladesh and also in some developing countries, as it is found to be more economical to render M2M telecommunications facilities to the people compared to land-line telephones.

a very successful product and country to introduce value-added As a socially responsible now accounts for over 90 services like Voice Mail Service, company, GrameenPhone percent of all GP subscribers. Text Mail Service,Wireless supports a number of socio- Application Protocol (WAP) and cultural activities. GP actively The mobile-to-mobile product is fax and data transmission participated in relief and now replicated by all mobile services. rehabilitation initiatives during phone operators in Bangladesh the devastating floods of 2004. and also in some developing The International Roaming facility The company made a donation to countries, as it is found to be is another useful service provided UNICEF for the Tsunami-affected more economical to render by GrameenPhone.As of June children of Sri Lanka and the telecommunications facilities to 2005, GrameenPhone has Maldives earlier this year. the people compared to land-line International Roaming telephones. agreements with 252 mobile GP recently provided funding to phone operators in 100 the Bangladesh Red Crescent In September 1999, GP became countries. Society for its earthquake the first mobile phone operator awareness and preparedness in the country to introduce the The internationally acclaimed program.The company supports EASY pre-paid service.This went Village Phone Program of IT education by providing on to become very popular with GrameenPhone is another unique computers to rural schools a majority of the GP subscribers initiative which provides around the country. now opting for the pre-paid telephone services in remote service. rural areas where no such GP actively participates in the facilities existed before. development of cricket in the GrameenPhone also introduced a Administered by Grameen country and is presently the number of value-added services Telecom in cooperation with official sponsor of the Bangladesh over the years.A News Update , the initiative also Cricket Team and the Premier service was introduced in provides the Village Phone Cricket League. cooperation with two leading operators, mostly poor village national newspapers of the women, a good income-earning country. opportunity.There are more than In early 2003, GP again became 110,000 Village Phones in the first cellular operator in the operation now in some 44,000 country to introduce the Text villages around the country.The Message-based (SMS) “push-pull” Village Phone Program won the service, providing access to ‘GSM in the Community’ Award much-needed information to the given at the GSM World subscribers. It may be noted that Congress held in Cannes, France GrameenPhone was the first in February 2000. mobile phone operator in the GrameenPhone Ltd. 8 Annual Report 2004

Main Events 2004

..... coverage of the GP network continued to be expanded around the country. Sixty-one districts are under the coverage of the GP network.

Continued Growth subscribers can download ring response from the visitors, the tones and logos by sending SMS second such Mobile Mela was he subscriber-base of with codes to special numbers. held in November in a much GrameenPhone continued to T larger scale, with GP grow at a healthy pace.Another SMS to other operators connections on sale too. More 1.4 million subscribers were Inter-operator SMS services were than 70,000 people visited the added to the network in 2004. introduced with City Cell,Aktel fair. Network Expansion and . BTRC Citation Increasing the capacity and Mobile e-mail Launched GrameenPhone was lauded by expanding the coverage of the A new value-added service Bangladesh Telecommunication GP network around the country named ‘Cell E-mail’ was been Regulatory Commission for its continued throughout the year. launched with the help of Inforev role in expanding the tele-density Starting with 680 base stations, Limited in September.This in Bangladesh. BTRC Awarded GP GP ended the year with 1400 service has enabled the valued with a citation and crest on the base stations on air. subscribers to send and receive occasion of reaching the two Enhanced Coverage e-mail through SMS from their million subscriber mark in mobile phone without any Coverage of the GP network September 2004. Internet connection. continued to be expanded Improved and New CRCs around the country. Sixty-one Internet Bill Payment GP opened a Customer districts are under the coverage GrameenPhone signed Management Center (CMC) in of the GP network. agreements with two banks Dhanmondi in late December. New Products named Eastern Bank Ltd and Moreover, all the seven CMCs Commercial Bank of Ceylon Ltd GP introduced two new post- around the country now remain enabling its subscribers who have paid bundled products named open on Saturdays, while the accounts with those banks to pay Gulshan CMC offers evening "Anytime 450" and “Anytime300” their GP bills through the service from 5:00 pm till 8:00 pm. in April, the first such product to Internet. A new Call Center helpline was be launched in the local market. Mobile Mela introduced to allow customers to Premium SMS service call from any other telephone. GrameenPhone organized New features like ring tone and Mobile Mela, the country’s first- Flood Relief and Tsunami Aid logo downloads were introduced ever exposition of mobile phone GrameenPhone took part in the in cooperation with the content handsets and accessories in June flood relief program during the providers last year.The 2004. Seeing the immense devastating floods last year. GP GrameenPhone Ltd. 9 Annual Report 2004 GrameenPhone Ltd. 10 Annual Report 2004

donated BDT 2.5 million to the Cricket Sponsorships the population in the country. Prime Minister’s Relief Fund.The GrameenPhone sponsored two FlexiLoad company also donated medicines Corporate Cricket Leagues last to Bangladesh Red Crescent The electronic recharge system year in April and in November. Society and ICDDR,B. In for pre-paid accounts was The players in the teams were addition, health camps were set introduced in April. GP pre-paid from the National Team and the up and medicines and other users now have the freedom to First Division League.The relief materials were distributed recharge their account GrameenPhone team won the among the flood-affected people. electronically with any amount title in the second Corporate GP also donated more than BDT they prefer. League. 10 million towards the ‘School EDGE Rebuilding Program’ of UNICEF Together with the Bangladesh for the Tsunami affected areas of Cricket Board, in December, GP introduced EDGE, an Sri Lanka and The Maldives. GrameenPhone launched the advanced high-speed mobile month-long ‘GrameenPhone Internet and data service, for the Computer Donation Pacer Hunt’ in search of fast first time in the country through GP donated more than 100 bowlers from anywhere in the a soft-launch in June this year. It computers to educational country. Selected players will be enables advanced mobile services institutions mostly in rural areas, invited to be part of the High such as down-loading of video which is benefiting thousands of Performance Program for the and music clips, multi-media poor students. 2005 off-season. messaging (MMS), high-speed Internet access and e-mail on the International Roaming New employees move. Program A total of 371 new employees Balance Transfer The International Roaming joined GrameenPhone during the program continued to expand year, bringing the total to 1004. GrameenPhone introduced a new during the year.At the end of Extensive training programs, both “Balance Transfer” feature of the year, GP had 230 at home and abroad, were FlexiLoaD, the electronic re- International Roaming partner arranged during the year for the charge system, for GP pre-paid networks spread across 81 benefit of the employees. subscribers. countries in five continents. Deployment of 1800 MHz The Balance Transfer feature Moreover, GP has introduced frequency enables all GP pre-paid Local Direct Dialing, through subscribers, EASY, EASY Gold GP has started to deploy the which GP subscribers can make and djuice, to transfer certain 1800 MHz base stations in Dhaka calls to a visiting roamer in GP amounts of balance to any other and Chittagong earlier this year. network without ISD GP pre-paid subscribers. connection.A new hotline was This will enable the expansion of also introduced for the the capacity and further International Roaming customers improvement of quality. and visiting roamers to cater to Launch of djuice their queries in early 2005. GP successfully launched the Growth of Village Phones international brand djuice in Continues March 2005 with very good The Village Phone Program market response. It is specially continued to witness rapid targeted towards the youth, growth during the year, doubling which is a very important the number of Village Phones in segment of the market as they operation to more than 94,000. constitute about 40 percent of GrameenPhone Ltd. 11 Annual Report 2004 GrameenPhone Ltd. 12 Annual Report 2004

Shareholders

.....both are dedicated to Bangladesh and its struggle for economic progress and have a deep commitment to GrameenPhone and its mission to provide affordable telephony to the entire population of Bangladesh

he shareholders of collaboration with Grameen Bank. T GrameenPhone The internationally reputed bank contribute their unique, in-depth Mobile for the poor, has the most experience in both Communications AS extensive rural banking network telecommunications and Telenor AS is the leading and expertise in microfinance. It development. Telecommunications Company of understands the economic needs The international shareholder listed in the Oslo and of the rural population, in brings technological and business NASDAQ Stock Exchanges. It particular the women from the management expertise while the owns 62% shares of poorest households. Grameen local shareholder provides a GrameenPhone Ltd. Telenor has Telecom,with the help of Grameen presence throughout Bangladesh played a pioneering role in the Bank, administers the Village Phone and a deep understanding of its development of cellular Program, through which economy. Both are dedicated to communications. It has substantial GrameenPhone provides its Bangladesh and its struggle for international operations in mobile services to the fast growing rural economic progress and have a telephony, satellite operations and customers. Grameen Telecom deep commitment to pay Television services. In addition trains the operators, supplies them GrameenPhone and its mission to to Norway and Bangladesh,Telenor with handsets and handles all provide affordable telephony to owns GSM companies in Denmark, service-related issues. Grameen the entire population of Austria, Hungary, Russia, Ukraine, Bank currently covers more than Bangladesh ,Thailand and Malaysia. 51,000 villages which are serviced It has recently started a mobile by 1326 bank branches (December’ phone operation in Pakistan. ‘04) all over the countryside.At the end of the year, the bank had 3.78 Telenor uses the expertise it has million borrowers, 95 percent of gained in its home and whom were women. international markets for the development of emerging markets Grameen Telecom’s objectives are like Bangladesh. to provide easy access to GSM 38% cellular services in rural Grameen Telecom Bangladesh, creating new opportunities for income Telenor Mobile Grameen Telecom generation through self- Communications employment by providing villagers 62% AS Grameen Telecom,which owns 38% of the shares of with access to modern information GrameenPhone, is a not-for-profit and communication based company and works in close technologies. GrameenPhone Ltd. 13 Annual Report 2004 GrameenPhone Ltd. 14 Annual Report 2004

Revenue in 2004 grew by 57 percent, compared to last year and as a result EBITDA Growth and net profit were recorded at a higher level GrameenPhone Ltd. 15 Annual Report 2004

Key Financial Figures

in '000 BDT. Restated* 2004 2003 2002

Income Statement Total Operating Revenue 19,700,695 12,577,199 8,778,750 Total Operating expenses (9,676,718) (5,743,374) (4,159,845) Interest income 330,660 350,964 212,503 Financial cost (135,776) (246,358) (311,304) Non operating expenses (91,085) (56,166) (17,643) Net Earnings before Income Tax 10,127,776 6,882,265 4,502,461 Tax expense (3,382,300) (2,561,500) (1,565,384) Net Earnings before appropriation 6,745,476 4,320,765 2,937,077 Transfer to Tax Holiday Reserve (562,020) (455,845) (333,766) Net Earnings available for appropriation 6,183,456 3,864,920 2,603,311 Balance Sheet (as of December 31) Total assets 27,006,573 17,263,866 13,253,298 Long term borrowings 1,668,448 1,735,550 2,791,022 Total liabilities 13,558,352 9,255,473 7,738,924 Total equity 13,448,221 8,008,393 5,514,375 Investment in associated company - - 11,700

Notes 1. *Previous years figures have been restated for showing retrospective effect due to changes in certain accounting policies during the year 2004. 2. Closing conversion rates considered for 2004, 2003 and 2002 against US$ are BDT 61.45, BDT 59.20, and BDT 59.15 respectively. GrameenPhone Ltd. 16 Annual Report 2004

Directors’ Report to the Shareholders For The Year Ending December 31, 2004

.... GrameenPhone has had another successful business year in 2004 with the addition of 1.4 million new subscribers. It continued to be the telecom market leader in Bangladesh. Being one of the four mobile operators, GP alone held the lion’s share of the cell phone market (62 %) of the country with the addition of more and more valuable subscribers every day

Dear Shareholders,

our Board of Directors The brand position of deficit and the execution of a Ywelcomes you to the 8th GrameenPhone along with its number of reforms in some Annual General Meeting of innovative products, nationwide policy areas, were some of the GrameenPhone Ltd., and is coverage and devoted mentionable improvements in pleased to present the customer service, have made the economy. Investment Directors’ Report, together GP the preferred telecom climate became slightly more with the Audited Financial service provider of the people favorable with some Statements of the Company for of Bangladesh. improvement in the law and the year ending December 31, Economy & Business order situation. Hartals and 2004 and the Auditors’ report agitation in the political arena, The global economy in 2004 thereon, for your consideration however, continued to plague has shown a consistent growth and approval. the economy.There were quite trend. However, international a number of new foreign direct 2004: Another Successful oil price hike had an adverse investment proposals, some Year effect on the global economy sizeable ones, from India, which led to higher commodity GrameenPhone has had Taiwan, UK, UAE and Egypt, prices across the world. In the another successful business which were at various stages of context of Bangladesh, despite negotiations. year in 2004 with the addition countrywide devastating floods of 1.4 million new subscribers. in 2004, its major macro- The telecommmunications It continued to be the telecom economic indicators were quite sector has emerged as the market leader in Bangladesh. positive. GDP growth was 5.5%, most promising sector in 2004 Being one of the four mobile compared to 5.3% of the and will continue to remain so operators, GP alone held the preceding year and showed an for the years to come, with lion’s share of the cell phone increasing trend in investment nearly USD One billion market (62 %) of the country and savings. Inflation rate, investment in the pipeline.A with the addition of more and however, rose to 6 percent. number of land phone more valuable subscribers Improved foreign currency companies will soon enter the every day. reserve, reduced budgetary market to offer fixed line GrameenPhone Ltd. 17 Annual Report 2004

The telecommmunications sector has emerged as the most promising sector in 2004 and will continue to USD1 billion remain so for the years to come, with nearly USD One billion investment in the pipeline

phones in the main cities of of rapid expansion of the growth of the cell phone Bangladesh.The takeover of GrameenPhone’s network and industry. Sheba Telecom by Orascom services, in the few years since, (named Banglalink) and the the cell phone industry alone In 2004, GP launched cost- launching of BTTB’s TeleTalk, has relieved the country from effective airtime bundled have made the industry more the telecommunication products like “Anytime 300” competitive. Stiff competition is backwardness.The total and “Anytime 450”.“E-mail inevitable in the coming days telecom market is now around through SMS” literally moved among the operators, in their 6 million subscribers, with a subscribers’ access beyond the endeavor to secure a strong teledensity of around 4 cell phone network.“MyTime” position in the market. percent, a substantial allowed subscribers to choose improvement indeed. GP is GrameenPhone: Eight Years proud to be the leader of such their preferred time for calling of Development! a silent revolution in the field of at a very attractive rate and GrameenPhone has completed telecommunications in finally “My Choice” was clearly eight years of its operation in Bangladesh. a value for the subscribers with Bangladesh.The Directors have a 25 percent reduction in tariff. the pleasure to note that as Innovative Products & many as 3 million subscribers Services: Value for money Inter-operator SMS and are currently benefiting from Pioneering innovations has revenue-sharing agreement was the world class communication been one of the reasons for signed with Aktel, and services provided by your GrameenPhone’s success so far. Banglalink at the initiative of company.Access to Starting from GP to GP (mobile GrameenPhone that benefited telecommunications is now an to mobile without PSTN) the subscribers of all the essential prerequisite for access which was considered a big to information.When GP breakthrough in the telecom operators with added started in 1997, sector, GP continued to be the accessibility through their telecommunication service was first in introducing the “prepaid mobile phones. quite inadequate, with less than service”, International Roaming GP further expanded its 1% teledensity. Undeveloped and value-added services like distribution channel, which is telecommunications was a SMS,WAP,“PushPull” and major constraint and caused “News services”. GP Mobile one of the best in the country, many hindrances in business Mela – first of its kind attuned ensuring availability of its and the day to day lives of the to the local tradition - was products within the vicinity of people of this country. Because successful in adding speed to its subscribers. GrameenPhone Ltd. 18 Annual Report 2004

The total telecom market is now around 6 million subscribers, with a teledensity of around subscribers 4 percent, a substantial improvement indeed GrameenPhone Ltd. 19 Annual Report 2004

1004 EMPLOYEE

686 The Directors are proud to 591 have a very competent and 488 dynamic group of employees who work as a team to meet people challenges in an ever changing business environment

2004 2003 2002 2001

Village Phone Program success as a company is our Deployment of 1800 MHz Promotes Rural human resource.The Directors frequency has already started at Advancement are proud to have a very the beginning of 2005.This competent and dynamic group The Village Phone Program, a would contribute significantly of employees who work as a unique initiative to promote to improving the quality and team to meet challenges in an development of capacity of the network. More ever changing business telecommunications in rural automation was introduced in environment. GP continued to Bangladesh, was jointly undertaken the Information Technology invest in training and developing by GrameenPhone and Grameen department to facilitate our employees to enhance Telecom,in co-operation with speedier service to our their capabilities.An enabling customers. Grameen Bank.The program has work environment, good expanded rapidly during the year, corporate ethics along with Striving Towards Better keeping pace with the expansion of opportunities for career Customer Service GP’s own network..With a robust growth has made GP a GP has added another growth of 100 percent during the preferred employer in the job “Customer Relations Center” year in terms of both number of market. customers and revenue earnings, in the capital city as part of its the Village Phones have proven its Investment in Continuous continuous effort to provide immense potential in boosting Expansion and Improvement quality after-sales service to its income of poor households in of Network subscribers. Call center capacity has been doubled, keeping pace rural areas, promoting healthcare, GrameenPhone invested USD development of agri-business and 196 million in the year 2004 for with the growth in the number in the social empowerment of the expansion and of subscribers. Implementation rural women. Many other improvement of its network of globally tested tools in line countries have shown interest in throughout the country to with the Telenor experience, replicating the Village Phone facilitate the expected growth. was yet another step in GP’s Program which demonstrates how Apart from rolling out 720 new commitment to provide the development of base stations, GP installed 6 best possible service to its telecommunications can directly MSCs, 7 BSCs and an IVR valued customers. GP is also augment income of rural system in its network last year. working on a plan to offer households. Fiber Optic cable was laid along customer care through its 250 kilometers to improve the country-wide distribution Our People : Our Key To network. GP now covers 59% channel, to facilitate quickest Success population of the country possible service from points The best contributor to our inhabiting 55% of the land area. closest to its subscribers. GrameenPhone Ltd. 20 Annual Report 2004

International Trunk Exchange (ITX) through VOIP has been a long pending issue for the industry, while inadequacy of PSTN access for the cell phones still remained a major obstacle for the growth of the industry

Enhanced Value of as a thrust sector. Bangladesh proud to be the official Shareholders’ Investment Telecommunication Regulatory sponsor of the Bangladesh Commission (BTRC), the GrameenPhone continued to Cricket Team.Last year the guardian of the country’s enhance the value of its team won the first-ever Test nascent telecommunication shareholders’ investment.The and the ‘One Day sector, has been working since significant growth in subscriber International’ series, since the 2003.The project for laying of base has made a positive country gained its Test status. the submarine cable to contribution to the revenue, Similar patronization is also connect the country with rest EBITDA and net results, in line being offered to the of the world, is in progress, with the expectation of the development of country’s though behind schedule. shareholders. Revenue in 2004 cultural and sports sector. IT Success of this project is of grew by 57 percent, compared education support was immense importance to the to last year and as a result provided to many mostly rural ICT sector. International Trunk EBITDA and net profit were schools of the country by Exchange (ITX) through VOIP recorded at a higher level. donating more than 100 has been a long pending issue Percentage of EBITDA, Net computers, benefiting for the industry, while profit and ARPU, however, thousands of poor students. inadequacy of PSTN access for declined slightly compared to GP’s prompt response to the the cell phones still remained a last year due to higher intake rehabilitation of flood-hit major obstacle for the growth of prepaid customers and citizens in Bangladesh and of the industry. change in tariff plans. Major tsunami victims in neighboring part of the profit was re- Tax burden on handset and countries, made its employees invested in the expansion of telecom equipment is and directors proud of being network in order to meet the undoubtedly excessive in part of a socially responsible pressing demand for GP Bangladesh, when compared to organization. coverage in new areas.The that of the neighboring GP Contributed BDT 11.50 Board has also recommended countries and it is hoped that Billion to the National dividends to our shareholders the government would favorably Exchequer for 2004. GP is well positioned revise the taxation on telecom in the market with its firm industry to further speed up GrameenPhone has become one focus on the strategic goals development of the industry. of the largest contributors to and we look forward to the Government Exchequer. GrameenPhone: A Socially increasing value for Since its inception, in the last Responsible Company shareholders in the years eight years of operation, the ahead. Besides increasing company has contributed shareholders’ value to the around BDT 30.46 billion on Regulatory Highlights expected level, GP continued account of various taxes, levies, The Government of to be a socially responsible license fees and interconnection Bangladesh has prioritized ICT company .GrameenPhone is charges. During the year 2004 GrameenPhone Ltd. 21 Annual Report 2004 GrameenPhone Ltd. 22 Annual Report 2004 GrameenPhone Ltd. 23 Annual Report 2004

During the year 2004 alone, the company contributed around BDT B DT 11.53 billion 11.53 billion to the Government Treasury

alone, the company contributed 2. Mr. M Faizur Razzaque, Dynamic Growth in the Years around BDT 11.53 billion to the Grameen Telecom,Director Ahead Government Treasury.The 3. Mr. Ole Bjorn Sjulstad, GrameenPhone with its contribution is expected to Telenor Mobile dedicated employees and very grow with the expansion and Communication A.S., able guidance of its Management growth of the organization. Director and the Board, has made remarkable progress in 2004, Dividends to the Shareholders 4. Mr. Asbjorn Halvorsen, despite many challenges. It is The Board distributed an Telenor Mobile now looking forward to a yet interim dividends of BDT 593.46 Communication A.S., more challenging year in 2005. million (@ BDT 10.5 per share) Director By segmenting the market, GP for the year 2004 and is pleased 5. Mr. Erik Aas,Telenor Mobile would be able to reach yet a to recommend final dividends of Communication A.S., larger number of customers BDT 1,921.67 million (@BDT Director who was later with more innovative products 34 per share) for consideration replaced by Mr. Ragnar and services. GP has targeted to and approval of the Korsaeth from the same cover 80% of the population of shareholders, for distribution. Company in November Bangladesh by rolling out faster Based on the final 2004. all over the country. recommendation the total dividends for 2004 would stand 6. Mr.Takashi Utsunomiya, Mr. Erik Aas has joined the at BDT 2,515.13 million. Marubeni Corporation, Management Team as the new Director, who resigned in Managing Director by replacing Directors of The Board September 2004, as a result Mr. Ola Ree, who had served the In line with the Articles of of the change in the company with distinction for Association of the Company, all shareholding. four years.While appreciating the Directors will retire at this Auditors the excellent service rendered AGM and will be eligible for re- by Mr. Ree, the Directors wish appointment, if so nominated by The Auditors of the company, Mr. Erik Aas all the success in the shareholders.The Rahman Rahman Huq, the leading GP in the competitive, composition of the Board of chartered accountants, will retire but an emerging, dynamic Directors during the year was as in this AGM and, being eligible, Bangladesh market. below: offered their willingness to be re- appointed for the year 2005.The The Directors and the 1. Mr. M Khalid Shams, directors recommend their re- Management of the company Grameen Telecom,Director appointment for the year 2005 would like to thank the & Chairman till holding of the next AGM. shareholders for their continuous GrameenPhone Ltd. 24 Annual Report 2004 GrameenPhone Ltd. 25 Annual Report 2004

GP has targeted to cover 80% of the population of Bangladesh by rolling out 80% faster all over the country

support and guidance.With the for all operators and that the changes that have taken place in telecommunication sector will the ownership, the company receive appropriate policy expects to benefit even more support from the Government in from the guidance and good order to realize the enormous partnership of Telenor and development potentials of this Grameen Telecom. industry. We also express our sincere The Directors would like to thanks to the Ministry of Post & place on record their deep Telecommunications, Bangladesh appreciation to all the employees Telecommunication Regulatory for their unflinching dedication, Commission (BTRC), Bangladesh high level of professionalism and Railway, National Board of praiseworthy hard work that Revenue (NBR), Board of helped the company to continue Investment (BOI), Bangladesh to grow rapidly and deliver Bank, Chief Controller of Export quality service to its subscribers. & Import, our bankers and other Thanking you all and with best financial institutions, suppliers, regards. content providers and our channel partners, for their For and on behalf of the Board of support that made 2004 a Directors of GrameenPhone Ltd., success .We are grateful to our valued subscribers for their support and great confidence they have on us.We hope to receive similar support from all M. Khalid Shams quarters in the years ahead Chairman enabling GP to continue to be Dated April 22, 2005 the best telecom service provider in the country. We earnestly expect that a congenial and fair business atmosphere will prevail in the country with a level-playing field GrameenPhone Ltd. 26 Annual Report 2004

Profile of the Directors

M. Khalid Shams Thor A. Halvorsen

Ragnar H. Korsæth Ole Bjorn Sjulstad M. Faizur Razzaque GrameenPhone Ltd. 27 Annual Report 2004

M. Khalid Shams Government, he retired from the Ole Bjorn Sjulstad [65 years of age, Bangladeshi] Service in 2000. Some of the positions [43 years of age, Norwegian] he held while in Government, were M. Khalid Shams was educated at Mr. Sjulstad was appointed to the Board Managing Director of Biman Bangladesh Dhaka University and the Kennedy on December 18, 2002. He graduated Airlines, Chairman of Bangladesh Small School at Harvard. He worked as a in Mechanical Engineering and Business scale and Cottage Industries program co-ordinator at the Asian Administration from Kongsberg Corporation, Director General of Pacific Development Centre, based in Ingeniorhogskole, Norway in 1983. Bangladesh Television, Chairman of Kuala Lumpur, between 1985 and 1990. Bangladesh Power Development Board, His background is within offshore oil He was an Additional Secretary to the Secretary of the Ministry of Power, and engineering business, Information Government of Bangladesh, when he Energy and Mineral Resources, and Communications Technology as took up his assignment as the Deputy Secretary of the Bangladesh Election well as Telecommunications business, Managing Director of Grameen Bank, Commission Secretariat and Alternate primarily within the South East Asian which has pioneered the micro-credit Executive Director in the Board of region. movement in the world. He has been Directors of the Asian Development He joined Telenor Asia Pte Ltd, closely associated with the founding of Bank in Manila, Philippines. Singapore, as Vice President in 2000 and a number of new socially oriented In 1991, the highest award in the field served as Managing Director of Telenor corporate enterprises within the of scouting in Bangladesh was Asia from November 2002. He is now Grameen Family, including Grameen conferred on him. located in Norway and serves as Senior Uddog for marketing hand-woven Vice President of Telenor International cotton fabric, Grameen Fund providing Currently, he is the Managing Director Mobile. social venture financing to technology of Grameen Fund, since May 15, 2002. entrepreneurs and Grameen Telecom He is also serving in the Boards of Thor A. Halvorsen mandated to provide telecom services Directors of eleven other Grameen [51 years of age, Norwegian] to the rural poor. He was involved with peer companies that work in the fields the conceptualization, planning and of Telecommunications, IT, Knitwear, He was appointed to the Board on implementation of GrameenPhone Manufacturing and Capital Market. June 11, 2003. He holds a Master of from the very outset. He is at present Science in Electrical Engineering the Managing Director of Grameen Ragnar H. Korsæth (Telecommunications and Computer Telecom. [39 years of age, Norwegian] Science) from the Norwegian Institute of Technology in Trondheim, Norway Currently, he is the chairman of the He was appointed to the Board on and read a programme for Management board of directors of GrameenPhone, November 27, 2004. He holds a Master Development at INSEAD in representing Grameen Telecom,a not- of Science from the Norwegian School Fontainebleau, France. for-profit company which holds thirty of Business Administration in Bergen, eight percent of GP's equity. Norway. Mr. Korsæth is also a Certified He has served in several Executive Financial Analyst. Management positions in Telenor including M. Faizur Razzaque CEO of Telenor Networks from 1995 to He has served in several Executive [61 years of age, Bangladeshi] 1998 and CEO of Telenor Business Management positions in Telenor Solutions from 1998. Prior to this, he has He was appointed to the Board on including CFO of Telenor International been responsible for sales activities, March 01, 2004. He did his BA and Telenor Mobile from 1999 to 2004. Product Management and Developments (Honors) in Economics from Dhaka Currently, he is Executive Vice and different technical activities both in University and Master in Public President and Chief Operating Officer the fixed and mobile networks. Administration from Harvard of Telenor International Mobile. Mr. University, USA. Currently, he is Executive Vice Korsæth is Chairman of Telenor Asia in President in Telenor responsible for He started his career as a banker in Singapore, and Director of the Boards Mobile Operations and Corporate 1965 and later joined the Civil Service of , Digi.Com in Procurements and Director of several in October 1966.After 34 years of Malaysia and Total Access companies in Norway and continuous service with the Communication in Thailand. internationally. GrameenPhone Ltd. 28 Annual Report 2004 Letter from the Managing Director

t was another successful year for GrameenPhone in terms of Isubscriber intake, revenue growth and also in terms of enhancing the overall organizational capability as a whole. The subscriber-base was more than doubled during 2004, adding another 1.4 million users to the network and enabling GP to retain its 62 percent market share.The revenue growth was 57 percent compared to the previous year. With GP having the largest network and the widest coverage around the country, the network capacity was further increased while the coverage area was also expanded during the year.The number of base stations was more than doubled with the addition of 720 new sites.

Regulatory environment The Bangladesh Telecommunications Regulatory Commission (BTRC) re- validated the operating license of GrameenPhone last year.A shift in the 900 MHz frequency was also allowed, enabling GP to better utilize the allocated frequencies and to overcome the earlier interference. GP was also granted a license to operate in the 1800 MHz frequency.This will GrameenPhone Ltd. 29 Annual Report 2004

With GP having the 1400 largest network and the widest coverage around BASE STATION the country, the network capacity was further increased while the 680 coverage area was also 500 base expanded during the year. 412 The number of base stations was more than station doubled with the addition of 720 new sites 2004 2003 2002 2001

facilitate GP to further expand its import duty on handsets were strengthen their market position by network and improve the quality of further reduced to BDT 300 in the offering new products and services its service.We have already started 2005-06 National Budget, but a new at low prices.They were also to deploy the 1800 MHz base charge of BDT 900 was added to aggressive with regard to promotion stations in Dhaka and Chittagong each new mobile phone connection. and communication in the market. early this year.A VSAT license was This has increased the entry-level In early September last year, the also provided to GrameenPhone barrier for new users at a time Egypt-based telecommunications last year for its own IT use.The when the market is moving towards company Orascom acquired 100 Government also approved the use addressing the needs of people in percent equity of Sheba Telecom, of Voice over Internet Protocol the lower-income group.Thus, this the fourth operator in the country, (VOIP) early last year and asked newly imposed tax is likely to have a and renamed the brand as BTRC to formulate guidelines and dampening effect on the further Banglalink. Soft-launch of the mobile provide licenses. However, this growth of the mobile phone sector. formality is yet to be completed.We phone service of the state-owned feel this process should be The existing entry-level barriers for Teletalk was also held late last year, expedited as VOIP will enable the the new subscribers should be with a low start-up price.A millions of mobile phone users to reduced as much as possible as has preliminary agreement was also make overseas calls at a very cheap been done in the neighboring signed for Singtel to acquire a 45 rate.The subscribers of Bangladesh countries of India, Sri Lanka and percent stake in CityCell. Pakistan.This will enable a much Telegraph and Telephone Board The most positive outcome in larger number of people to use a (BTTB), the state-owned land-line relation to the competitors is that mobile phone, thus helping to monopoly, are already enjoying this GrameenPhone signed separate increase the country’s low facility for nearly a year.We hope interconnection agreements for telephone penetration rate.The the regulators will ensure a level- both voice and SMS traffic with all telecom industry should work playing field for all telecom three cellular operators in 2004.As closely with the Government to operators in the country, so that a result, traffic-flow with the other reduce all entry-level barriers for none will get any undue advantage operators has improved the new subscribers. over any other operator. considerably.Amendment of the The Government reduced the high interconnection agreement with the import duty on mobile phone state-owned Bangladesh Telegraph Market Scenario handsets from as high as BDT 4000 and Telephone Board, the lone fixed- to a flat rate of BDT 1500 in the The mobile phone market line operator in the country so far, 2004-05 National Budget, after witnessed intense competition was also initiated last year, in order being persuaded by the entire throughout the year.The to create a more level-playing field mobile phone industry.Although the competitors tried to further for all telecom operators. GrameenPhone Ltd. 30 Annual Report 2004

Letter from the Managing Director

GP made a donation to the UNICEF for the tsunami affected children of Sri Lanka and the Maldives. The company has also donated more than 100 computers to a number of educational institutions, mostly in rural areas

New Products & Services Customer Focus employees participated in in-house and external training programs, A number of new products and A number of steps were taken to both at home and abroad. The services were launched during the further improve the delivery of remuneration package was re- year.Among the new products after-sales services.Another structured at the upper quartile of were Anytime 300 and Anytime Customer Relations Center (CRC) 450, both bundled products was opened in Dhaka last year.The market based on a survey.A offering some unique benefits to CRCs have started offering services Corporate Code of Conduct, the post-paid customers.A special six days a week instead of the incorporating standards of good feature for the pre-paid segment earlier five days while the Gulshan business practices and ethical called My Time was introduced, CRC remains open up to 8pm to conduct, was adopted and signed by providing 50 per cent reduced call enable customers to avail after-sales all employees. rates at chosen hours of a day. services after their office hours. The more you talk, the less you More CRCs will be opened in many pay feature was also launched, other important districts within this Corporate Social Responsibility enabling pre-paid customers a 33 year, to bring after-sales service GrameenPhone considers percent reduction in call charges nearer to the customers. Corporate Social Responsibility to from the third minute onwards. The Call Center Hotline capacity be an integral part of its overall Value-added services like “Cell e- was doubled in 2004. Next day operation.Thus, GP has an mail”, ring tone and logo delivery after printing of post-paid elaborate CSR program.The download and SMS banking, bills has been ensured within the company actively participated in the enabling GP users with accounts Dhaka city area.The SMSPAY relief efforts during the devastating with particular banks to check service was launched enabling post- floods of last year and distributed their balance and credit card paid customers to send their bill warm clothes in the northern information through text message, payment information through text districts during winter. GP made a were also introduced during the messages. donation to the UNICEF for the year. tsunami affected children of Sri The distribution channel was Lanka and the Maldives.The further strengthened by signing Organizational Strengthening company has also donated more another six dealers with sales than 100 computers to a number of The employees of GrameenPhone outlets around the country.The educational institutions, mostly in are its biggest assets. They are well- number of points of sale and rural areas. trained, professional and dedicated scratch card retail outlets has also towards the company.The company In addition, GrameenPhone also been further increased. ended the year with a total of 1004 sponsored many socio-cultural employees.A large number of activities. GP is the current sponsor GrameenPhone Ltd. 31 Annual Report 2004

The EDGE technology, providing high-speed data and Internet access, was also introduced for the first EDGE time in Bangladesh

of the Bangladesh Cricket Team and market share.Timely introduction of also of the Premier Cricket League. new products and services will be very important. GP has already successfully launched an Business Outlook international youth brand called djuice and introduced Flexiload, an The rapid growth in the electronic re-charge system for pre- telecommunications sector is paid accounts.The EDGE expected to continue.As of May technology, providing high-speed 2005, we have more than 3.5 million data and Internet access, was also subscribers. Competition will introduced for the first time in further intensify in the market with Bangladesh. Network coverage is competitors becoming more going to be expanded to cover aggressive. GrameenPhone will more than 80 percent of the renew its efforts to remain the population by the end of this year. preferred mobile phone operator in Access to the international gateway the country and retain its market is expected to increase substantially position. Customer focus will be the after the country is connected to key to enhance customer the sea-cable link later this year. experience by providing quality services. Steps will also be taken to further strengthen the organization.The Sales and Marketing Division has already been separated into the Sales and Distribution Division and the Marketing Division earlier this year.This was done to provide more focused attention in these key functional areas. Efforts are also being made to strengthen the regional offices located around the country. GP will focus on expanding its subscriber-base while retaining its GrameenPhone Ltd. 32 Annual Report 2004

Profiles of Management Team

From left to right - Stein Naevdal-Larsen, Kafil HS Muyeed, Khalid Hasan, Emad Ul Ameen, NKA Mobin, Erik Aas, Yogesh Malik, Ingvald Lyche, Frank Fodstad GrameenPhone Ltd. 33 Annual Report 2004

ERIK AAS experience during the last two decades in He has extensive experience working in (38 years of age, Norwegian) international business development, responsible positions in multinational specializing in breakthrough joint organizations in Human Resources Erik Aas joined as the Managing Director ventures and global partnerships in functions. He was also Director of a of GrameenPhone in December 2004. He rapidly changing, highly competitive leading consultancy firm in the country has eight years experience from Telenor, environments. providing services to various four of which have been spent in Asia. He multinational and locally reputed has held the position of Marketing INGVALD LYCHE companies in Human Resources and Director of Malaysian mobile phone (45 years of age, Norwegian) Corporate Governance areas. company DiGi since June 2002. He was a Ingvald Lyche joined as the Director; Board Member of GrameenPhone from YOGESH MALIK Sales and Distribution in April 2005.A October 2001 up to December 2004. (32 years of age, Indian) management professional, he has long He completed his Master of Science experience in marketing and sales of IT He was appointed as the Technical degree from NTNU in Trondheim, and telecommunications products and Director in January 2005. He holds a Norway in 1991, and has also a Master of services. He gathered 15 years of Bachelors Degree in Electronics Business Administration degree from IMD international telecommunications Engineering from Maharaja Sayaji Rao in Switzerland in 2001. management experience in Telenor and University, India. other organizations. Before joining FRANK FODSTAD Over the past 11 years he has gained vast GrameenPhone, he worked as the (44 years of age, Norwegian) experience within management, Business Market Development Director, engineering, IT and operations. Prior to Frank Fodstad joined GrameenPhone as responsible for development and joining Telenor in Jan 2005,he was the Deputy Managing Director in March implementation of business models and working with a Canadian company and 2004. He has a Bachelor of Engineering marketing concepts for all Telenor has held several management positions Degree from the University of Glasgow affiliates: mainly with GrameenPhone, both in specific engineering discipline and in Scotland. Pannon GSM in Hungary and Vimpelcom general management position. He has been working with Telenor since in Russia. He was the head of Engineering, IT and 1988. He successfully established, He has studied at both the Norwegian Regional Operations of Oskar, a mobile launched and for the last 12 months School of Economics and also the operator in the Czech Republic, before headed, the Delta-4 Cost Reduction Norwegian School of Management. joining Telenor and GrameenPhone. Program. He has been in charge of initiating and completing several STEIN NAEVDAL-LARSEN KAFIL HS MUYEED performance improvement initiatives in (38 years of age, Norwegian) (38 years of age, Bangladeshi) Telenor. Stein Naevdal-Larsen was appointed as Kafil HS Muyeed joined GrameenPhone NKA Mobin the Information Technology (IT) Director Ltd. in 1998.He was appointed as of GrameenPhone in February 2004. His (45 years of age, Bangladeshi) Director, Marketing Division of background is in Business Administration GrameenPhone in April 2005. He has a NKA Mobin was appointed as Finance and Project Management from the Bachelor of Science degree in Civil Director in November 1998. He holds Norwegian School of Management and in Engineering from the Florida Institute of Master degree in Finance from Dhaka Mathematics and Informatics from the Technology in the USA. University and completed his Chartered University of Oslo. Moreover, he has Accountancy degree from a KPMG published a number of books on He has extensive operational experience representative firm. macroeconomics and developed financial in all sales & marketing areas a well as in development of key strategies to drive He has extensive knowledge on application software. growth. He established the product implementing prudent financial He has been working with Telenor since development department and played a management system including setting up 1997, and has since 2000 worked as the key role in building distribution channels of an Integrated Computerized Financial IS Director of Telenor Business Solutions, of GrameenPhone in 1998 and 1999. Accounting System in three companies. Communications. Prior to joining Telenor, Over the years, Kafil has worked closely KHALID HASAN he gained experience working in different with Telenor on various projects and position in multinational companies. (49 years of age, Bangladeshi) acquired knowledge of the international He was appointed as Director, Corporate EMAD UL AMEEN telecommunications industry. Affairs of GrameenPhone, in May 2001. (49 years of age, Bangladeshi) Prior to joining GrameenPhone, he He has a Masters Degree in Business Emad Ul Ameen was appointed as gained entrepreneurial and marketing Management from Dhaka University. Director, Human Resources Division of experience in international trade and He has acquired a wide range of GrameenPhone, in November 2003. export. GrameenPhone Ltd. 34 Annual Report 2004

Organizational Chart

Erik Aas Managing Director

Frank Fodstad Syed Yamin Bakht Deputy Managing Director GM Information

Ahmed Raihan Shamsi Customer Fiber Revenue Assurance Supply Company Secretary Management Optic & Fraud Chain & GM Internal Audit Network Management Management

Yogesh Malik N K A Mobin Ingvald Lyche Kafil H. S. Muyeed Stein Nævdal-Larsen Khalid Hasan Emad Ul Ameen Director Director Director Director Director Director Director Technical Finance Sales and Distribution Marketing Information Technology Corporate Affairs Human Resources

Represents Members of Management Team GrameenPhone Ltd. 35 Annual Report 2004 GrameenPhone Ltd. 36 Annual Report 2004

Corporate Governance

ood Corporate Governance Gpractices are a hallmark of a successful and efficient company. GrameenPhone has also implemented internationally accepted Corporate Governance standards in its day-to-day operations. GrameenPhone being a private limited company, the Board of Directors has a pivotal role to play in achieving all stakeholders’ interests.The Board of Directors Company shall be elected by the in writing by a Board member or and Management Team of Ordinary Shareholders of the by a Shareholder. Questions GrameenPhone are committed to Company in General Meeting of arising at any meeting shall be maintaining effective Corporate the shareholders. decided by a simple majority of Governance through a culture of votes. In the event of an equality accountability, transparency, well- ii) The Board of Directors is of votes, the Chairman shall have understood policies and procedures. composed of 05 (five) members a second or casting vote. The Board of Directors and the including the Chairman who shall Management Team also persevere be elected from members of the vi) The Board of Directors shall not regarding compliance of all laws of Board of Directors. make a decision which would Bangladesh and all internally iii) The tenure of members of the adversely affect one particular documented regulations, policies and Board of Directors is Shareholder if such decision is procedures. determined in a General not producing proportional Meeting. Retiring director(s) is adverse effects on all the other eligible for re-election. Shareholders and it shall at all Board of Directors times act in a manner that will iv) Telenor Mobile shall nominate 03 The formation and management of be in the best interest of the (three) members, Grameen the Board of Directors are governed Company. Telecom shall nominate 02 (two) by the Articles of Association of In addition to the above, power, members of the Board. GrameenPhone Ltd. which contains, duties, qualification and inter alia, the following procedures: v) The Board shall meet at least 04 disqualification of a Director are (four) times a year and i) The Board of Directors of the explicitly mentioned in the Articles otherwise when duly called for of Association which also has been GrameenPhone Ltd. 37 Annual Report 2004

the vision and the strategies of the reviewed thoroughly.These company. In addition to this, the MT issues are ultimately forwarded is obligated to refer every issue to to the Board for their final the Board if there is any deviation in review and approval. implementing business plan, budget, borrowing, capital expenditure, pledging, etc. from the approved plan. Control Environment Committees: To implement Corporate Governance, the MT is required to In order to enable the Board to carry out the following functions make decisions more promptly and which are approved by the Board: effectively and look into the company’s affairs in-depth, it has a) Business Plan & Budget: prepared in compliance with the formed two committees consisting With close guidance of the Companies Act, 1994 of Bangladesh. of members of Board of Directors, Board, the MT prepares the representatives from Shareholders annual Business Plan and Budget. The Board, apart from its statutory and members of Management Team. It is prepared and amended from power, ultimately governs the whole The two committees are: Operating time to time with the active company by determining its vision, Committee and Treasury participation of all divisions of mission and strategy to maximise Committee. GrameenPhone and these are return to shareholders, reputation as reviewed and approved by the a whole and welfare to society. a) Operating Committee Board. This committee comprises four members nominated by the b) Financial Reporting: Management Team (MT) Board of Directors.The long- GrameenPhone has established The Management Team (MT) consists term and strategic issues are strong financial reporting of the Managing Director and other discussed in depth by this procedures in line with Telenor senior managers across the various committee. Group reporting requirements divisions of GrameenPhone.These b) Treasury Committee and local regulations.This Division Heads (position termed as reporting system facilitates not This committee consists of three functional Directors) represent only to understand the true members nominated by the respective divisions and always financial conditions of the Board of Directors.All crucial endeavour to achieve Company’s Company but also to monitor financial matters which concern mission and guidelines provided by Budget and Business Plan the Board are discussed in this the Board of Directors. compliance and analysing key committee in details and The MT is guided in accordance with performance indicators and GrameenPhone Ltd. 38 Annual Report 2004

Corporate Governance [continued]

GrameenPhone has established effective internal control systems to maintain accountability, integrity and security of its assets, important systems like billing system, network management system and information.

other parameters. system guides every member of regulatory bodies or as a routine GrameenPhone has to follow the Company in respect of reporting, GrameenPhone is international accounting process of every transaction, providing information to various standards i.e. IFRS, US GAAP and authority level for approval of bodies such as Bangladesh Bank, also Local Accounting Standard the transaction, documentation, Bangladesh Telecommunications (BAS) while preparing financial access to the systems and Regulatory Commission (BTRC), reports for respective users. responsibility.As the business of Customs Authority and other Group Auditors of Telenor also the company evolves relevant organizations. In review the accounting and continuously, requirement of addition, GrameenPhone is also reporting system and policies amendment of internal control subject to compliance of the from time to time. system is mostly a continuous rules and regulation of the US c) Asset Management: process. Stock Exchange Commission as the Telenor Group is listed with GrameenPhone is continuously the NASDAQ stock exchange. investing in network and other Compliance of External Rules & related infrastructure in line with Regulation the Business Plan and Budget.To The Management of Statutory Audit maintain accountability and GrameenPhone is accountable Statutory audit is governed by proper utilisation of assets, it not only to its Board or the Companies Act, 1994 of maintains clear policy starting shareholders but also to various Bangladesh.The Companies Act from procurement, location-wise external regulatory bodies.These explicitly provides guidelines for recording, and timely utilisation regulatory bodies have close the appointment, scope of work to disposal of obsolete assets.All look on GrameenPhone since it and retirement of auditors. risks relating to these huge has become very significant Shareholders appoint auditors in assets are properly insured both organisation in Bangladesh in the Annual General Meeting and locally and internationally. terms of huge subscribers, wide the appointed auditor can only d) Internal Control: network and huge contributions be removed on the ground of GrameenPhone has established to the Government Exchequer. unwillingness to continue by effective internal control systems In this context, the Company auditor and disqualification of to maintain accountability, provides full-fledged financial the auditor.Therefore, the integrity and security of its reports to National Board of auditor enjoys immense assets, important systems like Revenue, Banks, Registrar of Joint independence as well as billing system, network Stock of Companies and Board responsibilities in conducting his management system and of Investments.Apart from this, duties. Moreover, the Board information.This internal control for every approval from maintains certain criteria for GrameenPhone Ltd. 39 Annual Report 2004

selecting auditors; one of them is Revenue Assurance and adopt standard corporate that the auditors must be Revenue Assurance unit is reporting governance followed internationally. associated with big international to the Deputy Managing Director to accounting firms.Accordingly, the ensure revenue across the processes Newly implemented present auditor is associated and systems.This unit operates with system/tools/processes with an internationally reputed sub-teams consisting of cross- accounting firm. In addition to functional members and these sub- GrameenPhone being an affiliate of the annual audit, the auditor teams operate on routine basis with Telenor has automatically benefited carries out interim audit and analysing tools rather than on an ad itself by the implementation of some review on quarterly reports as hoc basis.Therefore, ensuring new tools, systems or processes at per guidelines of the Telenor revenue has become a proactive the Group level. Group. routine job of every concern across a) Sarbanes Oxley Act (SOA): Investment Committee the company. Listing in NASDAQ involves Given the company’s compliance with regulation promulgated by the U.S. continuous long-term Internal Audit investment in its network to Securities Exchange keep up pace with the This unit is responsible for Commission and NASDAQ subscriber growth, the need to monitoring the activities in the light such as the Sarbanes-Oxley Act establish a cross-functional of policies or procedures set by the (SOA), which includes strict committee whose responsibility Board of Directors and/or the MT. In requirements and internal is to scrutinise investment from addition, this unit has to follow the controls relating to financial various aspects, from strategic Group Internal Auditing Guideline as reporting and good governance. importance to the contribution part of being a subsidiary of Telenor. GrameenPhone as an affiliate of to bottom line of the company. On the basis of reports of the Telenor, which is listed in This is a cross-functional Internal Auditor, actions are taken to NASDAQ, has come under the committee represented by bring about developments and purview and compliance of management members including rectifications of systems or policies, SOA. It requires the constant Finance Director to cater to etc. development and updating of the above need.This committee In the absence of any guidance or documents on the processes has a controllership role on standard from local bodies, and controls related to financial investment decisions and is GrameenPhone is exercising reporting and also taking up answerable to the concerned corporate governance as a part of remedial measures for any parties interested in the said good practice and continuously weak controls after it is investment for its decision. developing in this area to maintain identified. GrameenPhone Ltd. 40 Annual Report 2004 GrameenPhone Ltd. 41 Annual Report 2004

.... Telenor guided Codes of Conduct has also been adopted by GrameenPhone and it has been read and signed by all employees of GP. This document underlines the importance and requirement of securing good business ethics in all aspects of the company’s activities

Codes of Conduct relevant expertise. Under the through establishment of efficient Telenor guided Codes of Conduct process, candidates for key and effective corporate governance. has also been adopted by positions are identified, along It also believes that this is a GrameenPhone and it has been read with training required to develop continuous process and will be and signed by all employees of GP. such positions.Talents are also always developed to further This document underlines the identified, as are candidates for strengthen GrameenPhone’s importance and requirement of future management positions. corporate governance functions in securing good business ethics in all This process also provides the years to come. aspects of the company’s activities. details relating to career objectives for managers, and also reflects the diversity.TLDP also Management & Leadership sets targets – financial and non- Development financial-- and follow up in a Employees are one of the most systematic manner. important assets of any organisation. b) Internal Value Creation (IVC): Transparency of their goal and Each year employees respond to performance measurement plays an an IVC survey which comprises important role in achieving target of targets and management, human the organisation. GrameenPhone has capital, process capital, innovation implemented the following tools and simplification.This process is developed by Telenor to maintain one of several tools used for this asset to reach its goal: company’s ambition relating to a) Telenor Leadership Development bringing transparency and Process (TLDP): accountability relating to Telenor has initiated an individual employees and the integrated process designed to company itself. By comparing the evaluate, develop and reward result of the annual IVC survey managers in accordance with with TLDP,a basis is achieved for Telenor’s own leadership the implementation of demands and business results. improvement measures with This process provides details of respect to employees in general overall management capacity, and managers in particular. management teams, key positions GP believes in transparency and and extent to which GP recruits accountability to society as a whole GrameenPhone Ltd. 42 Annual Report 2004

GrameenPhone and the Community

he shareholders of An independent organization services to some 70 million GrameenPhone believe called ‘Ideas & Insights’ conducted people living in rural areas.At T that “Good development a survey late last year, among the same time, the VP is good business”. Since its people from different walks of operators earn an average of inception, GrameenPhone has life, on the CSR activities of Tk 5,000 per month, which is always considered Corporate different companies. CSR was the more than twice the per Social Responsibility (CSR) as an central issue of this survey. capita income.The Village important function of the According to the survey, GP has Phone Program has been company. been recognized as among the widely acclaimed most socially responsible internationally. It received the CSR is an integral part of any companies in the country. “GSM in the Community” good company anywhere in the award given by the GSM world.The importance of CSR in The company has initiated a very Association in February 2000. the developed economies has strong CSR program over the grown substantially over the past years, some of which are • In March 2001, decade or so.The goal of a good highlighted below: GrameenPhone signed an CSR program is to make the agreement with UNICEF, company a good corporate • GrameenPhone initiated the under which GP contributed citizen of the country it operates Village Phone Program on the towards some UNICEF in.The aim is to initiate or same day the service of assisted projects devoted support social development GrameenPhone was launched towards improving the quality programs which have a direct on March 26, 1997.The Village of primary education in impact on the development of Phone Program is a unique Bangladesh. the society, thus making a initiative to provide much- company socially responsible. needed telecommunication • As a socially responsible facilities in remote rural areas company, GrameenPhone Along with providing while providing a good supports a number of national telecommunication services to income-earning opportunity socio-cultural activities more than three million people, for the Village Phone including sponsoring the providing direct income-earning operators, mostly rural poor National Poetry Festival, opportunities to over 200,000 women. Presently, there are major art exhibitions and people and being one of the top more than 110,000 Village other events. It actively corporate taxpayers in the Phones in operation in over participates in the country, GrameenPhone takes its 44,000 villages around the development of cricket in the CSR activities quite seriously. country.The Village Phones country and is presently the provide access to telecom official sponsor of the GrameenPhone Ltd. 43 Annual Report 2004

...... as a socially responsible company, GrameenPhone supports a number of national socio- cultural activities including sponsoring the National Poetry Festival, major art exhibitions and other events. It actively participates in the development of cricket in the country and is presently the official sponsor of the Bangladesh Cricket Team, Premier Cricket League and the Corporate Cricket League. GrameenPhone also sponsors the President’s Cup Golf Tournament and other sports events

Bangladesh Cricket Team, participates in the city Premier Cricket League and beautification program the Corporate Cricket initiated by Dhaka City League. GrameenPhone also Corporation and also sponsors the President’s Cup supports improvement of the Golf Tournament and other traffic systems in major cities. sports events. • GrameenPhone supports the • GrameenPhone takes an Acid Survivors Foundation active interest in spreading IT and an orphanage with the education through both urban support of Telenor. and rural schools. Over the years, GP has donated more • GP supports a project for than 100 computers to a autistic children by providing number of academic support for their education institutions including the and improvement of learning Institute of Business ability. Administration of Dhaka • GP launched the EDGE University, the UCEP School, technology earlier this year, Bishwa Sahitya Kendra and a which will enable its number of rural schools. subscriber’s access to high- • During the floods of 2004, GP speed data and Internet was very actively involved in services.This will help bridge supporting flood victims by the existing digital divide to donating and supplying some extent by allowing medicine, drinking water and people in the rural areas arranging health camps. GP access to the Internet or also donated more than information highway. BDT10 million toward the ‘School Rebuilding Program’ of UNICEF for Tsunami affected areas of Sri Lanka GrameenPhone provides and the Maldives. direct income-earning • GrameenPhone actively opportunities to more 200,000 than 200,000 people and is also one of the top corporate taxpayers in the country GrameenPhone Ltd. 44 Annual Report 2004

Village Phones: A year of Dynamic Growth GrameenPhone Ltd. 45 Annual Report 2004

94,003

VILLAGE PHONE [subscriber] At the end of 2004, this number was doubled to 45,500 94,003 VPOs. The number keeps on growing rapidly because while the teledensity 23,035 in Bangladesh is abysmally 9,222 low in the urban areas, it is 94,003 even lower in the villages. 2004 2003 2002 2001

he Village Phone Program coverage in the far flung rural in Bangladesh is abysmally low T(VPP), implemented by areas, whereas other telecom in the urban areas, it is even Grameen Telecom in operators in the past have lower in the villages. Hence the collaboration with concentrated on customer big demand for GSM services GrameenPhone as the primary base in the bigger towns and from GrameenPhone that service provider and Grameen metropolitan cities. ensures quality coverage all Bank providing financing to the over the country.The current The VPP in the Bangladesh rural women to buy the GSM year (2005) is going to witness context has clearly services, experienced rapid another spurt in growth with demonstrated that there is a growth during the year. Grameen Telecom committed huge unmet demand for to expand the customer base The VPP is a very unique telecom services in the villages by registering another 100,000 product that enables the rural and these can be met by plus VPOs. poor in Bangladesh to have designing special institutional access to modern arrangements that can cater to telecommunication services. the needs of the low- income High Revenue Product What started as a distant households. dream in 1997, has now During the year, Grameen become a bold reality and also Telecom generated revenues a model for the mobile Village Phone Subscribers worth BDT 3.61 billion for operators in developing Doubled Again GrameenPhone in terms of the countries around the world. airtime bills which are paid During 2004 the number of VP promptly at the end of the This became possible because operators has doubled, keeping month. Grameen Bank field of Grameen Telecom’s special pace with GrameenPhone’s staff assists GTC in collecting role as a service provider for own expansion.At the end of the airtime bills from remote the rural areas and the 2003, there were 46,259 Village locations all over Bangladesh. powerful institutional Phone Operators (VPOs) who The monthly average bill paid infrastructure of Grameen had functioned as mobile public by the village phones in 2004 Bank that provides call offices in the villages, small was more than BDT 4,500. microfinance to the rural poor, towns and market places in the specially the women of the countryside.At the end of An analysis of calls made by poorest household. It became 2004, this number was doubled VPOs in 2004 showed that possible also because of to 94,003 VPOs.The number VPOs are now using their GSM GrameenPhone’s willingness to keeps on growing rapidly service for making more calls rapidly expand its network because while the teledensity within the GP network that GrameenPhone Ltd. 46 Annual Report 2004

3,610

VILLAGE PHONE [revenue in million BDT] 2,070 Contrary to the popular impression that people in the villages would not know how to use the 1,114 modern, sophisticated cell phones, VPOs have 402 demonstrated that investments in this sector means 2004 not only good development, but also very good 2003 2002 business for all parties concerned 2001

has expanded rapidly. Contrary assigns women borrowers of the “The Petersburg Prize” to the popular impression that Grameen Bank as Village Phone awarded by the Gateway people in the villages would Operators.This not only Foundation in 2005. not know how to use the provides the rural poor modern, sophisticated cell households opportunities to phones,VPOs have establish phone booths in the demonstrated that investments rural and semi urban market in this sector means not only places, but also enables them good development, but also to operate those booths by the very good business for all immediate family members of parties concerned i.e., the the borrowers - with high Village Phone Operators, income-earning opportunities, Grameen Bank, Grameen and it also dramatically Telecom and also increases their social status. GrameenPhone. There have been numerous Benefits from the Village Phone surveys and research studies Program became apparent which showed the high income specially during the severe effect and social impact on the floods that inundated the lives of rural women and their country during the monsoon of households. Many dignitaries 2004. For the first time it was have visited the VPOs and possible for thousands of flood commended their enterprise affected villagers to stay and the ingenuity in managing a connected through modern communications GrameenPhone. Many VPOs set technology.The visitors up their phone booths on high included the US President Bill grounds and on the roadside Clinton, Queen Sophia of to provide essential telecom Spain, Princess Maria Teresa services to marooned people and the Grand Duchess of in flood affected areas. Luxembourg. In addition to winning the “GSM in the Community Award” in 2000, it High Development Impact also received the “Commonwealth Innovation The Village Phone Program Award” in 2003 and recently GrameenPhone Ltd. 47 Annual Report 2004

In addition to winning the ‘GSM in the Community Award ’ in 2000, it also received the Commonwealth Innovation award Award in 2003 and recently the The Petersburg Prize awarded by the Gateway Foundation in 2005 GrameenPhone Ltd. 48 Annual Report 2004

Contribution to Government Exchequer GrameenPhone Ltd. 49 Annual Report 2004

he services of GrameenPhone have been helping everyone win over the last eight years since its T inception on March 26, 1997. Along with the four other cellular operators in the country, GrameenPhone has established that the mobile phone is not just a status symbol in the hands of the well to do, it is rather a tool "in the hands of the people" to achieve economic growth for the nation. GrameenPhone, as a service provider, also enriches the National Treasury in many different ways. Since its inception up to December 2004, GrameenPhone has contributed more than BDT 30 billion to the Government Exchequer in direct and indirect taxes. The following table illustrates how the National Treasury was augmented:

Tax, VAT & Duties

Tax and Levies-indirect 11,525 Ministry of Post and Telecommunication/ Bangladesh Telecommunication Regulatory Commission Bangladesh Telegraph and Telephone Board

Bangladesh Railway 7,214 [ Figures in million BDT] 5,288 3,180 1,593 747 386 521 2003 2004 2001 2002 1999 2000 1997 1998 GrameenPhone Ltd. 50 Annual Report 2004

Network capacity expands, quality improves

.... Six new switches were added to the network to further expand its capacity. Another 720 base stations were put on air during the year, bringing the total to 1400 base stations operating around the country

he GrameenPhone network the year. c) GP re-planned the expanded at a record pace frequencies of its base As a result of this expansion, last year.The radio, stations many times during T network congestion reduced by 60 transmission and switching the year and implemented per cent even after adding 1.4 network, in terms of number of new features like DBPC million new subscribers. Base Stations, connecting (Dynamic BTS Power transmission lines, MSCs etc. was Achieving network quality Control) which have more than doubled in 2004 target improved the network quality compared to total network built further. A number of steps were taken to since inception of the company in further improve the quality of the d) GP has also placed special 1997. network. Following are some of the attention on in-building Six new switches were added to important ones: coverage and capacity the network to further expand its solutions in later part of a) To avoid radio interference capacity.Another 720 base stations 2004. Coverage in big from external sources, GP were put on air during the year, shopping complexes like was able to shift the lower bringing the total to 1400 base ‘Bashundhara City’ and other part of its 900 MHz spectrum stations operating around the important high-rise buildings following extensive country. are being gradually improved coordination with different under this initiative. In addition, GP swapped low mobile operators and capacity BTSs with high capacity regulatory authority. GP also Enriching roaming and other ones and ‘EDGE/GPRS’ enabled used huge number of band value added services BTSs. Other activities included pass filters in the base Welcome text messages both for processor up-gradation of stations to secure its inbound and outbound swtiches, software and hardware network from external international roamers were put in up-gradation of nodes, capacity interference. service for commercial use. increment in inter-operator routes, b) GP was awarded a new Optimal Call Routing (OCR) for Optical Fiber up-gradation, IN frequency band in the1800 inbound roamers were configured network up-gradation etc.A total MHz spectrum. and implemented by which inbound of 250 km of new fiber optic cable GrameenPhone has already roamers can call at a cheaper rate was laid to enhance capacity and to started building Base Stations to a fellow inbound roamer with ensure higher redundancy.At the using this new frequency better voice quality. Inter-Operator end of the year network was made band which is also helping to SMS has been implemented able to carry 109 per cent more improve the network quality gradually with all other mobile traffic compared to beginning of and capacity. operators. GrameenPhone Ltd. 51 Annual Report 2004

GP was awarded a new frequency band in the1800 MHz spectrum. GrameenPhone has already started building Base Stations using this 1800 MHz new frequency band which is also helping to improve the network quality and capacity

New Network Management and restrictions to physical site Centre access, the mobile service in most areas was kept alive and accessible GrameenPhone's Network to the customers.This was Management Centre (NMC) was achieved due to GP's own power expanded and relocated early backup facilities and also the December 2004 to a new secure tremendous efforts by the field location. engineers throughout the country The new NMC will ensure a better and the centralized monitoring and more efficient environment for functions in Dhaka. GrameenPhone keeping control of received a lot of praise for its GrameenPhone's network at any continuous mobile phone service time and to provide timely during the flood, and was credited notification to management and for playing a vital role in enabling other stakeholders in case of major communication for the important incidents in the network.The NMC flood relief operations. is built on modern design principles and represents a big step forward in terms of GrameenPhone's ability to monitor and control its network.The NMC will be further extended and improved in 2005. Successfully handling natural calamities GrameenPhone's network and organizational preparedness were thoroughly tested by the heavy rains and severe floods around the country during the July-August period of 2004.The most critical period lasted for around 3 weeks. Although the flood was affecting a large part of GP's network in terms of commercial power failure GrameenPhone Ltd. 52 Annual Report 2004

GrameenPhone introduced a number of new products and option for pre-paid customers, with reduced tariff in specific services in the market during the year 2004. At the same time, time slots, was also introduced in August. a number of premium value-added services were launched Premium SMS products like ring tone and logo download was while the GP distribution system around the country was also introduced for the first time in the country. The ‘SMS to further strengthened. e-mail’ and the ‘e-mail to SMS’ service was launched in GP launched two new post-paid bundled products named September while the inter-operator SMS service with City Cell, "Anytime450" and “Anytime300” in April, the first such Aktel and Banglalink was also started. products to be introduced in the local market. In May this year, The GP distribution network was further enhanced last year, the Anytime 450 product was replaced by the new Anytime further increasing the number of points of sale and scratch 500 product with a monthly bundle fee of BDT 1500 and 500 card retail outlets around the country. minutes of free talk-time. Following is a list of GP products: Moreover, the ‘Friends and Family” option for GP Regular users and a pre-paid product with a reduced tariff from the third minute onward was also introduced last year. The MY Time

GP Regular GP National AnyTime 500 AnyTime 300 This is a post-paid product This is a post-paid product This is a post-paid monthly This is a post-paid monthly that allows both-way BTTB with mobile to mobile airtime bundled product airtime bundled product with (local, NWD, ISD) connectivity. connectivity. The “Friends & having both-way BTTB (local, mobile to mobile connectivity The “Friends & Family” feature Family” feature allows the NWD, ISD) connectivity with with the first 300 minute of allows the subscribers to call at subscribers to call at a reduced the first 500 minute of talk-time free. a reduced rate to three rate to three pre-selected GP talk-time free. pre-selected GP numbers numbers during any time of during any time of the day. the day.

Following is a list of some of the GP value-added services:

SMS-based Services: • 2777 – News headlines, cricket score updates and The following numbers provide information • 2000 – This is the GP in-house information cell jokes are available here. about bank accounts: providing information on bill payment and usage, credit • 3333 – Offers news, jokes, beauty tips and cricket • 2727 – Standard Chartered Bank limit, emergency numbers like ambulance and police updates among other information services. • 2929 – Bank Asia station, and important telephone numbers such as bank Premium SMS-based Services – Ring-tones and • 2799 – Vanik head offices, airlines, newspapers and taxi. logo • 2233 – It is the First SMS to email and vice versa • 3355 – Lists code of most popular ring tones service in Bangladesh. It also is the number for the downloaded. popular game GPsixer. • 2355 – Offers different kinds of ring-tones available • 2345 – Offers information ranging from news, for downloads. weather, emergency to entertainment in the form of jokes, quotes, etc. • 2700 – Ring Tones and Logo Downloads. GrameenPhone Ltd. 53 Annual Report 2004 Products and services

EASY Pre-Paid EASY GOLD djuice This is a Pre-Paid product with This is a Pre-Paid product that This is a Pre-Paid product with mobile-to-mobile connectivity. allows both-way BTTB (local, mobile-to-mobile connectivity. Moreover, the “My Time” NWD, ISD) connectivity. The This product is designed for feature also allows subscribers “My Time” feature allows the youth segment of the to make calls to any GP subscribers to make calls to market. number at a reduced rate any GP number at a reduced during a pre-selected time slot rate during a pre-selected time of the day. The pre-paid slot of the day. The “My EASY” customers can also choose feature also allows the different rate plan by activat- subscribers to call at a reduced ing the “My Choice” feature. rate to one pre-selected GP number during any time of the day.

SMS-based Activation Numbers: Voice-based services: • 2255 – This SMS number provides voice based • 888 – My Choice offers lower call rates. • 1515 – Information service on Sehri and Iftar timing information service. • 2800 – For Friends and Family (F&F) Activation. during Ramadan. • 2525 – This SMS number offers Channel-i television program schedule and quiz programs. • 2828 – Gives users the choice of when to take • 2002 – This feature provides event-based sports advantage of lower call rates at certain periods of the update. • 2626 – This is an information service in collaboration day. • 2200 – This SMS number provides GrameenPhone with Channel-i. It offers updated news highlights, horoscopes, transport schedules etc. • 2888 – Pre-Paid subscribers can send SMS to this shrimp news service. number to assign 1 GP number as their “MY EASY” • 2221 – An English news update service provided by number. Subscribers can call at a flat rate of Tk. 3/min to The Daily Star. the assigned number. • 2222 – Prothom Alo’s Bengali news update service. GrameenPhone Ltd. 54 Annual Report 2004

Successful launch of djuice

rameenPhone successfully Bangladesh deserved better service Amit Sana and Rahul Saxena Glaunched ‘djuice’, an at a reasonable price.Thus came in enthralling the huge number of international youth brand, in April djuice – the brand especially tailored audiences of Dhaka and Chittagong. 2005. to meet the needs and desires of The entry for the concerts was This was the first time in Bangladesh young people.The brand would help made free by GrameenPhone, with that a brand totally dedicated to the the youth of Bangladesh to not only tickets for the concert being freely youth was launched by a mobile use the mobile phone as a distributed amongst the youth of the phone service provider.The youth communication device but also as two lucky cities. GrameenPhone segment of Bangladesh has special something that they could proudly plans to continue providing the needs and aspirations – they are associate with. subscribers with such offers in the future. more adventurous, more ambitious djuice was launched on the first day and would like to see the world of the Bengali New Year in the The djuice package is a whole bundle around them through their own eyes. presence of youth celebrities and the of values for its subscribers.The Seeing this dynamism of the market, media.The launch program and special 32k djuice SIM allows the GrameenPhone as the pioneer of press-conference took place at Pizza users to store additional 200 friends’ this sector, brought a brand that Hut with a presentation of all the and family entries with three would talk the language of youth and benefits that djuice would bring to its numbers against each entry. It has a a brand that would personify youth. valued subscribers. Black, the popular larger mail-box storage capacity and djuice is a Telenor brand currently youth band in Bangladesh which is SMS chat facilities. From information being marketed in Norway, Ukraine, also the official celebrity on film and music-charts to beauty and Hungary. Bangladesh is spokesperson of djuice, attended the tips and dictionary, the djuice the first country outside Europe launch ceremony along with connection offers more than just a where this unique brand has been cricketers of the Bangladesh National means of communication. Cricket Team. launched. With pulse rates as low as 20 GrameenPhone had felt the need to A series of hugely successful seconds from the first minute (for provide a unique experience for the concerts were also held after the the first time for any pre-paid youth segment of this country and launch event with local bands Black connection) and tariffs as low as Tk. always believed that the youth of and Miles along with Indian Idol stars, 1.66 and 0.66 per pulse (peak and GrameenPhone Ltd. 55 Annual Report 2004

The XTRA card also acts as a pass to popular concerts and programs XTRA exclusively arranged for the djuice subscribers.

off-peak), it was an instant success. the djuice subscribers. Some of the free talk-time and the other benefits, But GrameenPhone wanted to give tactical partners of djuice who would djuice has already established itself in more than just lower tariffs and be providing the holders of djuice a unique position in the mobile lower pulse rates because it believes XTRA card with discounts are: food market. djuice also boasts its own in providing more value to the places like Arabian Fast Food, website: www.djuice.com.bd and will customer. djuice wanted to give its Boomers, Ninfas,A&W, Dahlia’s, act as a communication means for subscribers a sense of belonging to SweetMax, Copper Chimney, Silver the youth and a source of an exclusive djuice-club.The djuice Spoon etc. Sports World, information that may interest the XTRA card was therefore given with Thunderbolt,Woodland, Reebok, Kay youth population of this country. the connection.This unique card, Kraft, DBC, Piano, Fahim’s Music, djuice promises to provide more given with every new subscription, BBC are some other places XTRA value to its subscribers and aims to opened a totally new era in value card holders would receive deliver the promises with innovative addition to the customer. discounts. products and value-added-services The XTRA card provides the GrameenPhone has already signed up that would make djuice the only subscribers with discounts at popular with a number of companies to brand that youth of Bangladesh food outlets, fashion outlets, music provide life-style benefits to the would relate to. stores and sports shops.The number djuice users. Pizza Hut is providing of outlets providing these benefits to every djuice subscriber ordering a the subscribers of djuice is being menu from the outlet with special increased gradually to provide more benefits. G-Series, the leading record benefits to the valued subscribers. label of Bangladesh, is also planning The djuice XTRA card also acts as a to bring new and popular music at pass to popular concerts and the fingertips of djuice subscribers. programs exclusively arranged for Along with 50 free SMS and Tk. 50 GrameenPhone Ltd. 56 Annual Report 2004

International Roaming GrameenPhone Ltd. 57 Annual Report 2004