Annual Report 2004
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ANNUAL REPORT 2004 Coverage 2004 Additional Coverage 2005 GrameenPhone 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 djuice 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 Bangladesh 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 Chittagong 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 3G 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 Dhaka 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 Grameen Bank, 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.