COMPANY BACKGROUND

Teletalk Bangladesh Ltd., a government mobile company led by Mr. Md. Faizur Rahman
Chowdhury, is one of the most recognized mobile operator companies in Bangladesh. Teletalk
Bangladesh Ltd. started its commercial operation on 31 March 2005 with skyscraping
expectation. Considering the time of operation of other existing operators in this field, this period
might seem to be small, but considering the years of operation of an operator its pretty
significant.
It also fulfilled a cherished dream of people who continuously demanded to the government for
such an enterprise. The government started the Mobile Telephone Project and Bangladesh
Telegraph & Telephone Board (BTTB) was entrusted with the responsibility for implementing
the same. The Project work started in June 2004 and the network was soft launched on 29
December 2004. BTTB had been able to keep its promise and deliver in time. Teletalk
Bangladesh Ltd. was formed to operate the network installed by BTTB and it has been successful
in operating a standard network and give proper service to the people of Bangladesh. Teletalk has
introduced many attractive packages and all of them have been welcomed by the market. From
the very beginning of its launching, Teletalk got huge popularity as it triggered the true
competition in the market. Within one year, Teletalk has covered 61 districts, 120 upazillas and
most part of the three major highways of the country. However, there is still a long way to pass
for improving its network.
People have high expectation from Teletalk. They expect continuous network coverage all over
the country, prompt customer service, and more value added services, data services of high bandwidth etc. from Teletalk. Teletalk must honor its customers by improving its services day-by-day
so that people can realize that even in a competitive scenario, the public sector organization can
achieve remarkable development if they get opportunity.
CURRENT MARKET SITUATION
Teletalk Bangladesh Ltd. was acutely aware about the overcrowded nature of the
telecommunication industry in Bangladesh. At the end of the 2004, there were 4 mobile operators
and Warid was introduced in 2007. At the end of the January 2015, there are 121.86 million

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mobile subscribers in Bangladesh. The table below is showing the total number of subscribers in
2015.
OPERATOR
Grameen Phone Ltd. (GP)
Banglalink Digital Communications Limited
Robi Axiata Limited (Robi)
Airtel Bangladesh Limited (Airtel)
Pacific Bangladesh Telecom Limited (Citycell)
Teletalk Bangladesh Ltd. (Teletalk)
Total
Source: BTRC website, 2015

SUBSCRIBER (IN MILLION)

51.549
31.145
26.283
7.716
1.276
3.890
121.860

The most remarkable success of Teletalk is the slump in Tariff Structure. As soon as Teletalk
announced its tariff the long-lasting oligopoly between other private mobile operators were
shattered. Healthy competition came into the mobile market causing almost 50%, if not more,
reduction in price both in terms of SIM price and usage rate. The slump in price made mobile
phone affordable even for the low-income group of people. Using a mobile phone soon became a
necessity it is no more a luxury.
The strength of Teletalk was the confidence of the subscribers in the government institution. On
the other hand its being the part of government, is probably the biggest weakness from
operational perspective of Teletalk. At a time when people were desperately searching the way
out to get rid of the oligopoly of a few operators, Teletalk started its operation with big bang of
response.
Another good reason for that craze was its flexibility in connectivity with the other operators. Its
the only SIM, which has such a, versatility of connections having ISD, Economy ISO service
along with both incoming and outgoing connectivity with any of the land phones
PURCHASING THE SERVICE
Teletalk Bangladesh Ltd. start selling their service likes no other mobile operator in Bangladesh.
At first they start a lottery system, where customers have to register in a website and then after
the draw only chosen customers can purchase the SIM. The price of the SIM was 4500 taka.
After few days later, Teletalk sold their SIM to BTTB employees at the same price. After few
months later, the SIM was available to the market. Customers can purchase their service from
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mobile store, customer care, electronics and accessories store and some retail store. The price of
the SIM was reduce to 730 taka with 1 month unlimited free internet. When Teletalk launch 3G
internet service they start selling dual SIM at taka 900 with 1 GB internet in both SIM.
VALUE ADDED SERVICE
There are several kinds of value added service that Teletalk provided to their customers to gain
competitive advantage in the market.
Text Messages (SMS): Text messages are a way to selling point of youth. Young people
especially student also corporate person are flexible in sending text rather than talking when it is
busy time.
Voice Message: Teletalk also provide voice message service where customer can send their
voice message instead of text message.
Sports Update: Sports update popular service is value added service. Especially, cricket update
score, customer has to register and send messages to 222 numbers.
SMS: Customer can register for different kind of SMS service such as Jokes, Weather, Taxi,
Horoscope, Quotes, Emergency, and International Weather Forecasting.
Friends and Family (Aponjon): Teletalk promote the friends and family service as Aponjon.
3G SERVICE
Teletalk provide first 3G services in Bangladesh. Teletalk the state-owned mobile phone operator
launched the third-generation (3G) mobile technology on October 14, 2012. The company had
1.4 million subscribers when it introduced the much-awaited 3G mobile technology, for the first
time in the country, on an experimental basis on October 14, 2012.
After three months of launching 3G the Managing Director Teletalk, Mujibur
Rahman said, The total number of subscribers using Teletalk has reached
nearly three million till January (2014). He opined that the launching of the
high-speed 3G internet service played a vital role in the progress of the

3 |Teletalk Bangladesh Limited: Pricing Strategy

cellular phone operator which had lagged behind in terms of number of

subscribers.
Teletalk 3G prepaid Package
SPEED

DATA

UPTO

SUBSCRIPTION FEE

VOLUME
1 GB
Tk.150
256
1 GB
Tk.200
2
GB
Tk.300
kbps
4 GB
Tk.450
1 GB
Tk.99 *
1 GB
Tk.260
2 GB
Tk.350
512
3 GB
Tk.425
3 GB
Tk.1000
kbps
5 GB
Tk.600
5 GB
Tk.300 *
10 GB
Tk.825
1 GB
Tk.320
2 GB
Tk.425
4 GB
Tk.750
6 GB
Tk.900
1 mbps
8 GB
Tk.1000
25 GB
Tk.1100 *
30 GB
Tk.2500
60 GB
Tk.4000
Source: Teletalk Bangladesh Ltd. Website

USAGE VALIDITY
10 days
30 days
30 days
30 days
30 days
30 days
30 days
30 days
6 Months
30 days
30 days
30 days
30 days
30 days
30 days
30 days
30 days
30 days
30 days
30 days

SUBSCRIPTION
CODE
D14
D59
D15
D16
D60
D31
D20
D38
D36
D21
D63
D22
D53
D24
D25
D57
D26
D65
D33
D62

ADVERTISING
Teletalk first promotional activity is advertising. Advertising is the way where massage could be
delivered to the consumers mind. And this Massage can be delivered to the consumer by the
sound, music, choreography, lighting and performer appearance. Advertisement massage must be
believable, meaningful and distinctive. Advertising can be used to build up a long-term image for
a product and also can trigger quick sales. So that they invest a huge amount of money for
advertise to create a brand loyal customer.

4 |Teletalk Bangladesh Limited: Pricing Strategy

Advertising media

Newspaper

Web site

Magazine

Personal Selling
Teletalk uses personal selling in different stages of marketing and distribution. Company
distributes their product (SIM, Scratch and MB card) among the wholesalers and retailers by
maintaining the excellent relationship.
Sales Promotion
Sales promotion includes a wide way of tools that can attract consumers attraction, strong
incentive of purchase, free gifts, discount and several types of occasional program.
PHP sales promotion includes credit sales, commission etc. PHP arrange conference every year
among the dealers, wholesalers and retailers. They always try to influence and convince them for
creating a market demand and sale their product.
Public Relation
Public relation is used to promote products, people, places, ideas, activities, organizations and
even nations. Public relation can also influence a product sales or brand awareness. Teletalk
arrange meeting always with the wholesalers and retailer for maintaining a good relationship
with them.

Place
Place is very much important for product sale. Place depends on good location, transportation
facility, availability, channels etc. and Teletalk select most of the places such as mobile store,
retail store, super store, recharge store and customer care in different places.
THE PRICING DECISION

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Over 90% user of Bangladesh is pre-paid users and the carriers typically charged less in off-pick
and more in pick hours. In fact, the industrys pricing were quite rational if customers would
always select the right plan for their usages pattern. However, customer cannot predict their
usage. Teletalk Bangladesh Ltd. studied numbers of customers and found that the price they paid
varied widely. After the study they develop different kinds of attractive offerings.
Teletalk Youth
The most popular offer is the Teletalk youth. Customers can F&F to three numbers to any
operator. Call charge is 4.5 Paisa/Pulse (peak 8am - 12am), 2.5 Paisa/Pulse (off-peak (12am 8am) and pulse is 5 second. SMS charge is 30 paisa on-net and 40 paisa off-net. There is a fun
pack in this service which charges 8 taka for 20 MB net at 512 kbps speed for 1 day.
Bornomala
This offering is mainly focused on internet packages. The pricing of this offering developed for
customers who are highly involved with internet connection. The internet speed is 512 kbps and
their 30 days validity for every package. There are the kinds of packages,
1. 500 MB (D71) which is cost 70 taka
2. 1 GB (D72) which is cost 130 taka, and
3. 5GB (D73) which is cost 400 taka.
For all packages 15% vat and SD is available. Also, call rate 30 Paisa/min (on-net 24 Hours), 60
Paisa/min (off-net 24 Hours) with 10 sec pulse and SMs charge is Tk. 0.30/SMS (On-net), Tk.
0.40/SMS (Off-net).

Agami
This is special offering for the students who got GPA-5 in S.S.C 2015 and the SIM was totally
free for the selected users. The special offers are 4.17 Paisa/Pulse (24 Hours) to any operator and
pulse is 10 seconds. SMS charge is 25 paisa on-net and 35 paisa off-net. There are three different
types of internet package offerings, daily pack is 20 MB at taka 6, monthly pack is 1 GB at taka
100 and 5 GB at taka 350. For these packages 15% vat and SD is available.

6 |Teletalk Bangladesh Limited: Pricing Strategy

These are now the main price offering of Teletalk Bangladesh Ltd., there are also some other
offers such as, Ekush, Bijoy, Shadheen, Projonmo and Shapla.
SWOT ANALYSIS
A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is a simple
and powerful way to analyze companys present marketing situation. SWOT Analysis is a
powerful technique for identifying Strengths and Weaknesses, and for examining the
Opportunities and Threats organization face.
Analysis of Strengths
Subscriber inclination to Teletalk as a government owned organization: People have a deep
inclination towards Teletalk. This is because subscribers have more confidence in the
government institution. They think that they might get some extra benefit from Teletalk like
lower call rate, optical fiber facilities etc. rather than other providers.
Teletalks all connections are ISD & EISD: Its a big strength of Teletalk. Its the only SIM
which has such a versatility of connections having ISD, Economy ISD service along with both
incoming and outgoing connectivity with any of the land phones. This is not seen to other
providers. It gives a tremendous competitive advantage to the Teletalk Bangladesh ltd over its
respective competitors.
Teletalk is the only indigenous company using GSM service: Teletalk is the only local
organization which is providing GSM technology in this country. The other local organization
named pacific telecom is providing CDMA technology which is more expensive. So Teletalk can
take this advantage over its competitors.
It has also provided incoming facility up to 2015: Teletalk have a strong strength over its
competitors in case of incoming facility. Teletalks present incoming duration is up to 20015.
Which is 20 times more than other competitors?
From the very beginning it is providing free TNT incoming: Teletalk is the only provider
which is providing T&T incoming free from the very beginning. Whether other operators
providers providing such kind of facility just now.

7 |Teletalk Bangladesh Limited: Pricing Strategy

Moreover its contribution to our economy can be notable: As a Govt. owned company
Teletalk has a strong contribution in our national economy. Its one of the high profits generating
Govt. organization in Bangladesh.
Low cost provider: The most remarkable success of Teletalk is the slump in tariff structure. It is
the lowest cost provider in Bangladesh telecommunication market.
Analysis of Weaknesses
Premature entrance in mature market: The biggest weakness was a premature entrance in a
mature market. As soon as anyone could catch hold of a Teletalk mobile, he started comparing it
with the services of Grameen, Banglalink or Aktel.
Lower number of human resource: The number of employee of Teletalk is too much lower
regarding its requirement. As a result the service quality and customer satisfaction decreases.
Difference between developed and developing market: Teletalk failed to identify the
difference between developed market and developing market. Their strategy making is not match
with the current situation.
Lower promotional activities: The promotional campaign of Teletalk is not too much strong
like other providers of Bangladesh as result consumers are less aware about Teletalk and its
package.
Weak management system: poor coordination among different functional department of
Teletalk as result service efficiency goes down.
Poor marketing: The overall marketing activities of Teletalk is not much rich like other
competitors.
Lower number of value added service: Teletalk Bangladesh Ltd. is providing a less number of
value added service to its subscriber regarding its competitors. As a result subscribers are
becoming dissatisfied on the Teletalk service. The comparison of value added services of
different operators are mention below. Where Teletalk is providing less number of value added
service.

8 |Teletalk Bangladesh Limited: Pricing Strategy

Analysis of Opportunities
Teletalk can use the image of local and government owned organization: General people
have a deep inclination to the govt. owned organization especially to the local organization.
People want to keep the money into own country. So Teletalk can use such kind of soft corner of
consumers and promote the service to them.
Introduction of new technology and services: Teletalk can implement new and consumer
oriented technology in this sector. This is because of people have inclination to modern
technology. Now a days people are ready to accept the new thing.
Expand the market in the rural area: Till now there is huge area is remain out of coverage
where a huge number of target consumers are available. So Teletalk can bring that respective
area under coverage and catch those potential consumers.
Teletalk can use the experience of BTTB: BTTB one of the old and experience organization in
Bangladesh telecommunication sector. They have special experience about the consumer
behavior of Bangladesh. They know about the consumers need and want. So Teletalk can take
help from the BTTB about this matter and implement those criteria in the competitive market.
Which things, give Teletalk competitive advantage over its respective competitors.
Teletalk can use soft switch network: The soft switch network separates the bearer and control
layers and a soft switch centric network can be built on different types of bearer networks such as
TDM, IP and ATM unlike, legacy network that depend on a single specific switching technology.
Based on strategic planning and the developmental phase, an operator can select suitable bearer
mode technologies for different phases, from the perspective of long term sustainable
development, the IP centered soft switch network defines the future. So Teletalk can use this
technology and practice competitive advantage over rivals.
Analysis of Threats
Merging of Robi and Airtel: Bangladesh mobile sector is almost saturated. After merging these
two mobile companies (Robi and Airtel) in January this will become a big threat to Teletalk.

9 |Teletalk Bangladesh Limited: Pricing Strategy

The invention of technology which is new modern and consumer oriented: Technology is
changing with day run. It changes the consumers demand pattern by offering different attractive
features. As a result consumer shifts from one technology to other technology, which might
create a big problem to Teletalk and others.
Another invisible threat is land phone operator: In Bangladesh land phone operator is
expanding the market with day run. People are switch from mobile to land phone operators. As a
result ultimately the number of mobile user is decreasing and create problem to the mobile
operators as well as Teletalk.
The main goal of Teletalk Bangladesh Ltd is to deliver SIM kits to the subscriber at a cheap rate
and to dominate the competitive market. For doing this the company is trying to plant the seed of
foundation for future profitability. For that company is targeting young people who are the key of
make money. Though the pricing decision is critical but Teletalk Bangladesh Ltd. made excellent
pricing for its customer. They also updating their service keeping eye on the pricing and
delivering it in a smooth and effective way.

10 |Teletalk Bangladesh Limited: Pricing Strategy