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World University of BangladeshDepartment of Business Administration

Assignment

On

GrameenPhone

Submitted to: Submitted by:Nazia Zifan Group: 5Lecturer in Principles of Marketing Program: BBADepartment of BBA Batch: 29th (A)World University of Bangladesh World University of Bangladesh

Date of Submission: 12/10/2011

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PERCEPTIONGroup-Member Details

KEEP PROMISES MAKE IT EASY BE RESPECTFUL BE INSPIRING

NNoo.. NNaammee ------------------------------------ IIDD AAuutthheennttiiccaattiioonn1.Md. Asif Hasan Limon (L) ------------------------

----1263

SIGNATUE

( Nazia Zifan )12-Sep-2011.

Marks obtained: >>>Md. Parvez Patwary ------------------------

-----1262

Marks obtained: >>>

Md. Al-Amin -----------------------------

1271

Marks obtained: >>>

John Sumon Roy -----------------------------

1272

Marks obtained: >>>

Md. Ashiki Shakib Khan -----------------------------

1282

Marks obtained: >>>

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Letter of TransmittalWednesday, October 12, 2011

Nazia ZifanLecturer in Principles of MarketingDepartment of Business AdministrationWorld University Bangladesh ((WUB)

Subject: Submission of Assignment on GrameenPhone.

Dear Madam,

This assignment is a part of the MKT-503, Principles of Marketing assigned tous.

We would now like to forward herewith the papers prepared by us on the topicmentioned above. In this regard we are glad to mention here that yourcooperation and guideline help us immensely to solve the problems in preparingthe papers.

Now we hope you will find it in order.

Thanking you,Sincerely,

Md. Asif Hasan Limon (C) MR. Parvez PatwaryProgram: BBA Program: BBARoll: 1263; Batch: 29th (A) Roll: 1262; Batch: 29th (A)

MR. Al-Amin Md. Ashiki Sakib KhanProgram: BBA Program: BBARoll: 1271; Batch: 29th (A) Roll: 1282;Batch: 29th (A)

John Sumon RoyProgram: BBA;Roll:1272;Batch:29th(A)

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ForwardAlthough, Bangladesh is a very young country with its 39-years of independence and shedoesn’t even have enough land to hold the entire population on her lap; still, this is one ofthe extremely poorest countries in the world having a very tight growth of populationwhich say “NO” to decreasing! But, there’s a lots of possibilities here where the peoplenever give-up hope, where people never stop moving forward; and where people never stoptalking with each other. As it’s the best way to communicate with one another, so the MobilePhone is very popular to its people in Bangladesh. Relatively, today we have more than six(6) Mobile Phone Operating Companies in Bangladesh. From these, The GrameenPhone

Ltd. is stunningly growing its mobile market in Bangladesh and has already came across along way with its 1,80,00,000 exceeded customers within only 13-years of time. It’s beingour pleasure and honor to have the “Managerial Techniques” regarding Specializationand Motivation as our Assignment Report on GrameenPhone Ltd.- The largest and the mostenhanced Mobile Phone Operator of Bangladesh.We are very much grateful to the God first, who has given us all the abilities to perform thischore. Next, we would like to thank our respected Teacher Nazia Zifan, Department of BusinessAdministration who gave us the opportunity to submit this Assignment Report &Presentation and also co-operated us with all kinds of rational suggestions, rehearsal andguidance. We also like to express our gratitude to the honorable Teacher Md. Abdullah-Al-Mamun, without whose inspiration and company, this mission was not able to beaccomplished.At last but not the least, we are grateful to our ever-respected parents those who alwaysgive us mental support and well wishes.

On behalf of PERCEPTIONMd. Asif Hasan Limon (Leader)Student, BBA:29th(A)Batch5th Semester,World University of Bangladesh.

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Preface“We are here to help”- That’s what GrameenPhone says to its customers; to us from its LIVEairing on 26-March-1997, The Independence Day of Bangladesh. That was the beginning. Today,GrameenPhone is the largest Mobile giant in Bangladesh covering almost the entire countrywith its EDGE/GSM Network. Also, GP is the very first Mobile Operator to premier GSM (GlobalSystem for Mobile Communication) Network in Bangladesh. Even being a Mobile Operatorwhose major responsibility is to serve it’s customers with better Mobile solutions,GrameenPhone is also playing a major role with its several activities in Bangladesh besidethe best Mobile services which is introduced as: Corporate Social Responsibilities (CSR).GrameenPhone defines CSR as “A Complimentary Combination of Ethical andResponsible Corporate Behavior”, as well as “A Commitment towards Generating GreaterGood in Society as a Whole by Addressing the Development Needs of the Country”.To interact effectively and responsibly with the society and to contribute to the socio-economic development of Bangladesh, GP has adopted a holistic approach to CSR, i.e. Strategicand Tactical. Through this approach GP aims to, on the one hand involve itself with thelarger section of the society and to address diverse segments of the stakeholderdemography, and on the other remain focused in its social investment to generate greaterimpact for the society.GrameenPhone focuses its CSR involvement in three main areas - Health, Educationand Empowerment. We aim to combine all our CSR initiatives under these three core areasto enhance the economic and social growth of Bangladesh.We believe that Corporate Social Responsibility is a journey along which we will create apositive difference in the community and the development of the country; thus meeting theexpectations of our customers and stakeholders.All these are possible only for the strong Managerial Techniques of GP with its Specializationand Motivation beyond services. From the beginning, GP has given most priority to thesociety, its people and their desires. We will have a broad discussion on this ASSIGNMENTReport regarding the exceptional and revolutionary Managerial Techniques ofGrameenPhone Ltd. with its Specialization and Motivation.

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Table of contentsSSeerriiaall TTooppiicc PPaaggee NNoo..

I Group Details.................................................................................................................... ..................02

II Letter of Transmittal…………………………………………………………………………….. …………….02II Forward............................................................................................................................. ..................03

Iv Preface.............................................................................................................................. ..................04

01 Evolution and History (Evolution)...................................................................................... ..................08

02 Introduction......................................................................................................................... ..................092.1 Our Mission .......................................................................................................................... …………….092.2 Our Vision………………………………………………………………………………………………... …………….092.3 Our Values……………………………………………………………………………………………….. …………….09

03 History............................................................................................................................... ..................10

04 Ownership Structure.......................................................................................................... ..................124.1Telenor……………………………………………………………………………………………………. …………….124.2 Grameen Telecom………………………………………………………………………………………. ………..…..13

4.3 Corporate Governance……………………………………………………………………….. ………….13

05 GrameenPhone Marketing Mix…………………………………………………………………... ……….…185.1 GrameenPhone Product Mix…………………………………………………………………. ………….195.2 GrameenPhone Price Mix……………………………………………………………………. ………….205.3 GrameenPhone Place Mix…………………………………………………………………… ………….215.4 GrameenPhone Promotion Mix……………………………………………………………… .................22

06 Managerial Values............................................................................................................ ..................24

07 Attractive Packages…………………………………………………………………………….. ……….……25

08 HR Policy & Practice......................................................................................................... …….………26

8.1 Training and HR development................................................................................... …….………26

8.2 Employee benefits..................................................................................................... …….………27

8.3 Code of Conduct........................................................................................................ ……….……28

8.4 Controlling the supply chain....................................................................................... ……….……28

8.5 Standards for Health, Safety and Environment.......................................................... ……….……29

09 CSR Policy & Practice....................................................................................................... …….………30

9.1 Projects and Program................................................................................................ ………….…30

9.2 Managing CSR........................................................................................................... ……….……31

9.3 Summing Up.............................................................................................................. ……….……31

10 Professional Management with Local Knowledge…………………………………………... ………….…32

10.1 Increasing Competition.............................................................................................. …………….33

11 Impact from Business Activities........................................................................................ …………….34

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11.1 VillagePhone Program............................................................................................... ………….…34

11.2 Community Information Centers................................................................................ …………….34

11.3 HealthLine................................................................................................................ ………….…36

11.4 BillPay...................................................................................................................... ………….…36

11.5 Extensive Customer Services.................................................................................... ……….……37

11.6 Access to the ‘Information Highway’…………………………………………………….. ……….……37

12 Seven reasons for being with GrameenPhone………………………………………………. ………….…40

13 Overall Impact................................................................................................................... ….…………42

14 GrameenPhone at a glance.............................................................................................. ………….…43

15 Bibliography...................................................................................................................... ……….……44

16 List of Abbreviations.......................................................................................................... ………….…47

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Evolutionand HistoryNovember 28, 1996GrameenPhone was offered a cellular license in Bangladesh by the Ministry of Postsand Telecommunications, Government of the People’s Republic of Bangladesh.March 26, 1997GrameenPhone launched its service on the Independence Day of Bangladesh.November 5, 2006After almost 10 years of operation, GrameenPhone has over 10 millionsubscribers.September 20, 2007GrameenPhone announces 15 million subscribers.June 23, 2008GrameenPhone surpasses 20 million subscribers milestone.GrameenPhone is now the leading telecommunications service provider in the country withmore than 20 million subscribers as of June 2008. Presently, there are about 40 milliontelephone users in the country, of which, a little over one million are fixed-phone users andthe rest mobile phone subscribers. Starting its operations on March 26, 1997, the IndependenceDay of Bangladesh, GrameenPhone has come a long way. It is a joint venture enterprisebetween Telenor (62%), the largest telecommunications service provider in Norway withmobile phone operations in 12 other countries, and Grameen Telecom Corporation (38%), anon-profit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank.Over the years, GrameenPhone has always been a pioneer in introducing new products andservices in the local market. GP was the first company to introduce GSM technology inBangladesh when it launched its services in March 1997.The technological know-how andmanagerial expertise of Telenor has been instrumental in setting up such an internationalstandard mobile phone operation in Bangladesh. Being one of the pioneers in developingthe GSM service in Europe, Telenor has also helped to transfer this knowledge to the localemployees over the years.

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Introduction

Grameenphone in Bangladesh started providing mobile telephony services in 1997 and is partly-ownedby Telenor. In addition to core voice services, Grameenphone offers a number of value-added services onboth a contract and prepaid basis. Grameenphone is the largest of in total six mobile operators inBangladesh.Our Mission:Leading the industry and exceed customer expectations by providing the best wireless services, makinglife and business easier.Our Vision:We exist to help our customers get the full benefit of communications services in their daily lives. Wewant to make it easy for customers to get what they want, when they want it. We're here to help.Grameenphone was the first company to introduce GSM technology in Bangladesh. It also established thefirst 24-hour Call Center to support its subscribers. With the sloganStay Close, the vision of Grameenphone is• To provide affordable telephony to the entire population of Bangladesh.• To become the best mobile communications service provider in Bangladesh.OurValues:Make It EasyKeep PromisesBe InspiringBe RespectfulOurBrandPromise:Stay Close

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History

The company has so far invested more than BDT 10,700 crore (USD 1.6 billion) to build thenetwork infrastructure since its inception in 1997. It has invested over BDT 3,100 crore (USD450 million) during the first three quarters of 2007 while BDT 2,100 crore (USD 310 million)was invested in 2006 alone. GrameenPhone is also one the largest taxpayers in the country,having contributed nearly BDT 7000 crore in direct and indirect taxes to the GovernmentExchequer over the years. Of this amount, over BDT 2000 crore was paid in 2006 alone.Since its inception in March 1997, GrameenPhone has built the largest cellular network inthe country with over 10,000 base stations in more than 5700 locations. Presently, nearly 98percent of the country's population is within the coverage area of the GrameenPhonenetwork.GrameenPhone was also the first operator to introduce the pre-paid service in September1999. It established the first 24-hour Call Center, introduced value-added services such asVMS, SMS, fax and data transmission services, international roaming service, WAP, SMS-basedpush-pull services, EDGE, personal ring back tone and many other products and services.The entire GrameenPhone network is also EDGE/GPRS enabled, allowing access to high-speedInternet and data services from anywhere within the coverage area. There are currently nearly3 million EDGE/GPRS users in the GrameenPhone network.GrameenPhone nearly doubled its subscriber base during the initial years while the growthwas much faster during the later years. It ended the inaugural year with 18,000 customers,30,000 by the end of 1998, 60,000 in 1999, 193,000 in 2000, 471,000 in 2001, 775,000 in2002, 1.16 million in 2003, 2.4 million in 2004, 5.5 million in 2005, 11.3 million in 2006, 16.5million in 2007 and it ended 2011 with 18.5 million customers.From the very beginning, GrameenPhone placed emphasis on providing good after-salesservices. In recent years, the focus has been to provide after-sales within a short distancefrom where the customers live. There are now more than 600 GP Service Desks across thecountry covering nearly all upazilas of 61 districts. In addition, there are 81 GrameenPhoneCenters in all thedivisional cities and they remain open from 08:00am-08:00pm every dayincluding all holidays. GP has generated direct and indirect employment for a large numberof people over the years. The company presently has more than 5,000 full, part-time andcontractual employees. Another 100,000 people are directly dependent on GrameenPhonefor their livelihood, working for the GrameenPhone dealers, retailers, scratch card outlets,suppliers, vendors, contractors and others.In addition, the Village Phone Program, also started in 1997, provides a good income-earning opportunity to more than 280,000 mostly women Village Phone operators living inrural areas. The Village Phone Program is a unique initiative to provide universal access totelecommunications service in remote, rural areas. Administered by Grameen TelecomCorporation, it enables rural people who normally cannot afford to own.

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The Village Phone initiative was given the "GSM in the Community" award at the globalGSM Congress held in Cannes, France in February 2000. GrameenPhone was alsoadjudged the Best Joint Venture Enterprise of the Year at the Bangladesh BusinessAwards in 2002. GrameenPhone was presented with the GSM Association's Global MobileAward for ‘Best use of Mobile for Social and Economic Development' at the 3GSM WorldCongress held in Singapore, in October 2006, for its Community Information Center (CIC)project, and for its HealthLine Service project at the 3GSM World Congress held in Barcelona,Spain, in February 2007.GrameenPhone considers its employees to be one of its most important assets. GPhas an extensive employee benefit scheme in place including Gratuity, Provident Fund,Group Insurance, Family Health Insurance, Transportation Facility, Day Care Centre,Children's Education Support, Higher Education Support for employees, in-house medicalsupport and other initiatives.

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Ownership Structure:

The shareholders of Grameenphone contribute their unique, in-depth experience in bothtelecommunications and development. It is a joint venture enterprise between Telenor (55.8%), thelargest telecommunications service provider in Norway with mobile phone operations in 12 othercountries, and Grameen Telecom Corporation (34.2% ), a non- profit sister concern of theinternationally acclaimed micro-credit pioneer Grameen Bank. The other 10% shares belong togeneral retail and institutional investors. The technological know-how and managerial expertise ofTelenor has been instrumental in setting up such an international standard mobile phone operationin Bangladesh. Being one of the pioneers in developingthe GSM service in Europe, Telenor has also helped totransfer this knowledge to the local employees overthe years The international shareholder bringstechnological and business management expertisewhile the local shareholder provides a presencethroughout Bangladesh and a deep understanding ofits economy. Both are dedicated to Bangladesh and itsstruggle for economic progress and have a deepcommitment to Grameenphone and its mission toprovide affordable telephony to the entire populationof Bangladesh. Fig: Ownership Structure (%)

Telenor:Telenor is emerging as one of the fastest growing providers of mobile communications servicesworldwide with ownership interests in 12 mobile operators across Europe and Asia. Telenor isorganized into three business areas; Mobile operations covering 12 countries, and Fixed-line andBroadcast services covering the Nordic region.Telenor holds 55.8 per cent of Grameenphone, with Grameen Telecom Corporation owning theremaining 34.2 per cent. The rest of the shares belong to general retail and institutional investors.Telenor has played a pioneering role in development of cellular communications in Bangladesh.The Telenor Group:More than 150 million mobile subscribers worldwideStrong subscription growth, particularly in our Asian operationsListed as No.1 on Dow Jones Sustainability Index 2008Ranked as the world's seventh largest mobile operatorRevenues 2007: NOK 105 billionWorkforce 2007: 35 800 man-yearsListed on the Oslo Stock Exchange, with headquarters in Norway

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Grameen Telecom:Grameen Telecom Corporation, which owns 34.2% of the shares of GrameenPhone, is a not-for-profitcompany and works in close collaboration with GrameenBank.The internationally reputed bank forthe poor, has the most extensive rural banking network and expertise in microfinance. It understandsthe economic needs of the rural population, in particular the women from the poorest households.Grameen Telecom, with the help of Grameen Bank, administers the Village Phone Program, throughwhich GrameenPhone provides its services to the fast growing rural customers. Grameen Telecomtrains the operators, supplies them with handsets and handles all service-related issues.Grameen Bank currently covers more than 67,000 villages which are serviced by 2121 bank branchesall over the countryside. As of may 2006, the bank had 6.33 million borrowers, 97 percent of whomwere women.Grameen Telecom's objectives are to provide easy access to GSM cellular services in ruralBangladesh, creating new opportunities for income generation through self- employment byproviding villagers with access to modern information and communication based technologies.Corporate Governance:

In the fast-paced world of telecommunications, vibrant and dynamic Corporate Governance practicesare an essential ingredient to success. Grameenphone believes in the continued improvement ofcorporate governance. This in turn has led the Company to commit considerable resources andimplement internationally accepted Corporate Standards in its day-to-day operations.Being a public limited company, the Board of Directors of Grameenphone have a pivotal role to playin meeting all stakeholders’ interests. The Board of Directors and the Management Team ofGrameenphone are committed to maintaining effective Corporate Governance through a culture ofaccountability, transparency, well-understood policies and procedures. The Board of Directors andthe Management Team also persevere to maintain compliance of all laws of Bangladesh and allinternally documented regulations, policies and procedures.Grameenphone is a truly transparent company that operates at the highest levels of integrity andaccountability on a global standard.

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Competition:As at 31 March2010,Grameenphonehad a SIM cardmarket share of43%. In additiontoGrameenphone,there are fiveother mobileoperators inBangladesh.These operatorsandtheir market share according to the BTRC data as at 31 March 2010 are: Banglalink (witha marketshare of 26%), Robi - previously, Aktel - (with a market share of 19%), Warid(with a market share of6%), Citycell (with a market share of 4%) and Teletalk (with amarket share of 2%). Theintense competition between these operators has led to asignificant price decline over the years. In January 2010, the India based operator BhartiAirtelacquired a 70% stake of Warid Telecom.Corporate Responsibility:

"Evenajourneyofathousandmilesbeginswithasinglestep..."-ChineseproverbAt Grameenphone, we live by the statement "Development is a journey, not a destination." Our workis not just about ensuring connectivity; it is about connecting with people and building relationships,based on trust, with our subscribers, business partners, employees, shareholders, as well as thewider community. We have always believed that good development is good business. While wemaintain our business focus, taking the nation forward remains our top priority. Thus our

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relationship with Bangladesh is built on a partnership which strives to achieve common economicand social goals.Corporate social responsibility, as we see it, is a 'complementary' combination of ethical andresponsible corporate behavior, as well as a commitment towards generating greater good for thesociety by addressing the development needs of the country.CR vision:To be recognized as the most socially responsible mobile operator in Bangladesh and in thecorporate sector.CR goals:

Create shared value for Grameenphone and society through our mobile technology Integrateresponsible business practices in all operationsIntegrate responsible business practices in all operationsCR Initiatives:

OurCorporateresponsibilityinitiativesfocusoncreatingsharedvaluethrough:Maximize the enabling effect of mobile telecommunicationsPromote safer products and servicesMinimize our carbon footprint

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OurCRinitiativesisbasedon3mainfocusareas:HealthEducation &EnvironmentCR initiatives:Safe Motherhood & Infant Care Project- More than 1.7 million free primary healthcare services to underprivileged pregnant mothers& their infantsFree eye care support for around 28,780 people- 3,458 eye sights restored so farAwareness building on varied national issues- AIDS, National Immunization DayInformation boats with digitized livelihood contents and internal access for remote riverinecommunitiesEconomic freedom for more than 400,000 Village Phone OperatorsMore than 500 Community Information Centers- connecting life and learningProud sponsor of Bangladesh Special Olympics teamEmployment opportunity to acid survivorsScholarship for underprivileged meritorious studentsBlood donation camps for underprivileged Thalassaemia patientsEstablishment of Blood Bank at Bogra for underprivileged patientsEmergency relief effort in natural calamitiesGrameenphone Climate Change Program:Grameenphone being a socially responsible company adopted systematic processes to ensure that,wherever possible, we manage and mitigate the probable negative impact of our business activitieson the environment.Grameenphone's Climate Change Program was initiated in early 2008 with a vision for reducingcarbon emission, being environment friendly and creating a momentum with the community andpeople.The ambition of Grameenphone's Climate Change Program is:To become the leading corporate company in climate initiatives in Bangladesh within 2015'Reduce 15% carbon emission by 2012 & 40% by 2015 Ton CO2 as compared to 2008 levelCorporate Transformation: 'Green Company'Aware-Engage-Advocacy GP employeesCreate momentum With community & People

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Social Initiatives:

The Grameenphone Community Information Center is a shared premise where rural people mayaccess a wide-range of state of art services such as Internet, voice communications, videoconferencing and other information services. This initiative by Grameenphone is in line with thecompany's objective to serve local community needs by:Bridging the "digital divide" by providing information access to rural people- Alleviating povertyEducating the underserved and underprivileged on information-based services- Building local entrepreneurships and improving capacity- Creating employment opportunities for the unemployed youthCICs are a unique business model that has won appreciation from the International community, suchas from the Washington Post, from UNDP, as well as the blessings of several International bodies likeCatalyst and the GSMA.The pilot project started in February 2006 with 16 CICs; today the project has become a massiveoperation with over 500 CICs operational in nearly 450 Upzilla's.The short-term plan of this initiative is to establish at least one CIC in each of the 462 Upazilla's. Inthe long-run Grameenphone plans to increase the number of CICs substantially so that very CIC cansupport the information needs of four adjacent villages.

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Marketing Mix

Marketing Mix is the set of controllable tactical marketing tools the firm blends to produce theresponse it wants in the target market. The marketing mix consists of everything the firm can do toinfluence the demand for its product. The many possibilities can be collected into four groups ofvariables known as the “four Ps”: product, price, place, promotion. Figure shows the particularmarketing tools under each p.ProductVarietyQualityDesignFeaturesBrand NamePackagingServices

PriceList priceDiscountAllowancePayment periodCredit terms

PromotionAdvertisingSales proportionPublic relationPersonal selling

PlaceChannelsCoverageAssortmentsLocationsInventoryTransportation

TargetCustomers

Intended

Positioning

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Marketing Mix

ProductProduct means the goods and services combination the company effect that offersto the target market for attention, acquisition, use, or consumption that mightsatisfy a want or need.

Price Price is the amount of money charged for a product or service, or the sum of thevalues that consumers exchange for the benefits of having or using the product orservice.Place Place includes company activities that make the product available to targetconsumers.Promotion Promotion means activities that communicate the merits of the product andpersuade target customer to buy it.

Grameenphone Product Mix:

A product is anything that can be offered to a market and that is potentially valued by a target marketfor the benefit or satisfactions it provides, including objects, services, organization, places, people andideas. As in a service providing business Grameenphone provides different types of service in itsmarket as its products. In telecommunication business coverage and quality is more important thanthe number of product or service offered. With its best coverage and good quality Grameenphone hasbecome the number one mobile operator in Bangladesh.

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Grameenphone Price Mix:

Price Elasticity:It is the percentage change in the quantity demanded when price changes, divided by thepercentage change in the price. GP has gained high price elasticity in the market.Non-price factors:The Gold holders pay a high amount of money in buying to get the high facility.Cost Analysis:Product cost provides essential information for pricing decisions. To analyze cost, GP uses thefollowing steps:

Competitor Analysis:Aktel is the major competitor of GP as it is consistent in its rates and facilities and gain a mostpart of the market shares although Banglalink has more promotional activities and callcharge, they have not been able to hold the market yet. GP fixes its competitor on the basis ofmarket share. They fix price in keeping pace with the competitors’ price and their probableresponses to an alternative price strategies.Legal And Ethical Ckonsiderations Of GP:

Price fixing in channels of distribution:

GP publishes articles and advertisements in all national dailies and television about the form and theavailability of price information for the customers.GP provides its distributors at low cost. In pricingthe channels of distribution, it has discrimination.

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Grameenphone Place Mix:

Importance Of Distribution In GP:

To perform the above task effectively GP uses its own distribution channels, which aredistinguishable from others. When initially selecting a channel of distribution for a new product, thepricing strategy and desired positioning of the product may influence the choice of the channel. Oncethe channel of distribution design is complete and responsibilities for performing the variousmarketing functions are assigned, these decisions establish guidelines for pricing, advertising andpersonal selling strategies. GP is very much efficient in establishing these types of strategies. It helpsthem to maintain an exclusive distribution channel to serve the end-users.Initial Distribution Channels

From the beginning of the business of GP, it supplied its SIM to the distribution centers. Dealers gotthe product from the centers and sold those to retailers. The retailers, at last, sold the product to endusers. This was a traditional channel. Sometimes, end-users purchased products from dealers as awhole to minimize the purchasing cost. Company did not sell directly to the customers at that time.Only three years ago GP introduced a new and convenient channels of distribution to overcome thetraditional system. The two tails of the channel is the most attraction part to the customers.Through around 30 distribution centers, GP distributes all key parts of the country. Dealers, as anintermediary, purchase the products from the centers and disburse those to two types of retailers.One is – exclusive retail outlet and another one is – non-exclusive retail outlets are permitted to sellthe products of only GP. They are the guaranteed or authorized retailers. Non-exclusive retail outletscan sell other companies’ product as well as they have no relation the customers or end-users buy

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products from either of two types of retail outlets. They get the product or service of company in themost convenient way at the student time period.

Grameenphone Promotional Mix:Grameenphone uses promotional activities that communicate the merits of the product and persuadetarget customers to buy it. Grameenphone can succeed to acquire more than 10 million customers asof December 2006 not only providing good service but also using high frequency promotionalactivities. Grameenphone uses most of the promotional tools to give message for its customers on thenew product & existing product and product features. Grameenphone must do more than make goodproduct- they have to inform customers about product benefits and carefully position products inconsumers’ mind. To do this Grameenphone promotes the promotion tools are:

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Grameenphone Promotional tools

Advertising Sales Promotion Public Relation Personal Selling

o Price packso Cash Refund Offerso Prizeso Patronage Awardo Premiumo Price Offs

o Publicationso EventsoNewso Sponsorshipso Public service

activitieso Identity Media

oNewspapero Televisiono RadiooMagazinesoNewslettero Internet

o Inside SalesForce

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Managerial ValuesKEEP PROMISESGrameenPhone always tried to keep promisesf r o m its inception till today, which has brought adifferent dimension to its managerial techniques. BestNetwork C o v e r a g e , W e l l - built management,E f f i c i e n t and Effective Manpower- all thesebrought the company to its destiny. Promises c a n bemade easily; but keeping those promises is muchharder than t o make i t previously. GP has comea c r o s s w i t h those promises very successfully with itsOutstanding and Specialized Managerial Techniques.MAKE IT EASYFrom the very beginning, GrameenPhone is a “User Friendly” Mobile Operator. It means; wealways made our Systems, S e r v i c e s , Features, a n d T a r i f f s very much E a s y -to-use based,Simple stepped and exciting to our valued customers. Our 24-hours FREE* (*currentlyavailable for the djuice/business solutions user) 121 Customer Manager Supportstandbys with useful and Instep- Care which has created a very positive impact to thenationwide Mobile Users, which driven them to buy our Special SIM packages like SMILEPre-paid & Post-paid, djuice, business solutions, xplore and lot more exciting packagescoming soon!

BE RESPECTFULGrameenPhone is always being respectful to others; especially to the prominent SocialPersonalities those who directly motivating themselves into various social, economic,educative and other positive fields with eye-catching role-play. For instance: PlanStarker wasawarded by GrameenPhone for playing tremendous role in the educative fields for playingthe role of educating others which is located in the northern zone (Rajshahi) of Bangladesh.BE INSPIRINGGrameenPhone is the Official Sponsor of Bangladesh Cricket Team. Only this example may easilyindicate the inspiring attitude of GP of which, others are being inspired to raise-up this kind ofinspirations.

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Attractive PackagesSMILE Pre-paid:

Smile gives you many reasons to smile as it is here to fulfill your needs. With Smileyou can enjoy the widest coverage & clarity of speeches that will keep youconnected anytime, anywhere at affordable rates. It has a number of usefulcontents like RingTones, Wallpapers, Logos, & other offers to cater to yourvarious needs. We hope to bring a smile on your face every time you use Smile.

Djuice:Djuice is a popular international brand, exclusively designed for youby GrameenPhone. This is a world full of fun, friends & fabulous music.It’s not just mobile subscription, it is a blend of exciting real lifeexperience. With Djuice, enjoy your stay in the now & express yourselfjust the way you like.XplorePost Paid: Xplore is for someone who wants freedom & takesdecisions independently. This post paid package is more flexible, moreeconomical then before. With Xplore, you can enjoy the widestcoverage at reasonable rates. Its innovative services like M2M,NWD, ISD & EISDbrings you immense flexibility.

Business Solutions:Business Solutions is a complete, quality businesscommunications service from GrameenPhone – designedespecially for the business community in Bangladesh. Our BusinessSolutions team is here to help provide you with customizedtelecommunications solutions through consultation with you.At office or on the move – stay connected through Business Solutions.

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HR Policy & Practice

GrameenPhone is the pioneer in the field of human resource management, employee careand competence development in Bangladesh. GrameenPhone is currently employingapproximately5000 people of which 84 % is under 31 years old. The employees are spread out in six officezonesthroughout the country, with Dhaka being the largest with 3561 employees. Most of the staffhas university backgrounds within fields such as management, marketing, economics, financeand engineering.In 1997 the number of expatriates working in the company was close to 90. Today however,there are only five foreigners employed on a regular basis, and another five on time-limitedcontracts. The government demands that a ratio of 1:20, expatriates to locals be kept.The figures are therefore not only within the government requirement, but significantlyso. The situation is supposedly a lot different in many of GrameenPhone’s competitorcompanies.The turnover rate in 2006 was 8%, and a preliminary 4% so far for 2007. The numberof resignations peaked in 2005 when new operators penetrated the market and offeredhigher salaries to GrameenPhone employees, but this was still relatively low. One couldargue that low turnover rates are a good indicator of a healthy work environment.Training and Human Resource development:GrameenPhone has since 2005 been adopting the Telenor Development Process (TDP).According to the annual report the aim of this process is to “Set direction, Manageperformance and develop individual, Team and organizational capabilities to deliver businessresults”.GrameenPhone governs the HR process through an annual survey conducted amongall employees. In addition, a compulsory appraisal dialogue is held annually between theindividual worker and his superior. These measures give GrameenPhone management abroader picture of how employment situation looks in the company. The feedback isused to strengthen the organization. In particular, the appraisal dialogue identifiesindividual wishes, goals and training needs for further professional development.GrameenPhone offers employee training on several stages, in addition to a generalintroduction for new employees. At junior management level, GrameenPhone incollaboration with the British Council offers in-house training in basic management skills andworkshops. Furthermore management training at junior and middle levels is offered in

collaboration with theIndian Institute of Management. Finally for senior management.

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Outside of these standardized programs, we also offer 100 scholarships to employees whowant to take an Executive Master of Business and Administration (EMBA) and covers 75% ofthe tuition fees. This program is part time. The need for training is related to the job ofeach individual employee and mainly identified through the annual compulsory appraisaldialogue.Being a part of the Telenor Group, GrameenPhone employees also benefit from thehands-on technology/know-how transfer of Telenor experts in different areas on a regularbasis.Our employees have the opportunity to participate in group-wide professionalworkshops and placements in Telenor affiliates to gain additional relevant experience intheir respective areas of work.Employee benefits:

In addition to a relatively high salary, GrameenPhone employees are offered severalbenefits. In an annual survey comparing 10 competitors and similar companiesin other industries, GrameenPhone identifies the wage distribution and bases its ownwage levels on those in the upper quartile. This yields a minimum monthly salary of28000 BDT (408 USD). The national average income for earners in non-agriculturalsectors is 6000 BDT (Bangladesh Bureau of Statistics 2005)As a part of the employee policy, GrameenPhone is also providing monthly educationgrants to children of all employees’ until the age of 21. This grant is a fixed monthly sumfor each child. Furthermore, these children can also apply for financial support to attenduniversity.In compliance with the local legislation GrameenPhone is building a pension fundfor its employees. In addition to the required minimum level, GrameenPhone also investsin provident funds. 10 % of the employee’s salary is paid on a monthly basis into the fund.Participation in the fund is voluntary. Following five years of employment, the companyinvests, in addition to the 10% provided by the employee, the same amount into the fundfor each individual. All regular employees are also entitled to a gratuity payment paid at theend of his/her service with the company and this is calculated based on the length ofservice.All employees are entitled and covered by health and medical insurance. This also appliesto family members. This coverage has also been known to apply to out-source. Anexample of this is that several drivers hurt in traffic accidents have been sent toThailand and Singapore for medical treatment.

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Code of Conduct:Upon entering the company, all employees must sign a code of conduct. The documentpresents guidelines for proper conduct and ethical behavior. It is divided into four parts:Firstly, general guidelines describe the rationale behind this document, namely theimportance of communicating corporate values and for employees to adopt them. Thissection includes broad, overarching topics such as human worth, working environment,health, loyalty and confidentiality and reporting/disclosure among others.The second section refers to the relationship with customers, suppliers, competitorsand public authorities. The main message here is that all stakeholders should be treatedwith respect and that unethical interaction, such as receiving expensive gifts and servicesare unacceptable.The third section looks at the employee’s private interests and actions in relation to thecompany. Here political activism and other external duties are encouraged up to the levelwhere it will not interfere with their work at GrameenPhone.The last section emphasizes that all misconduct or indeed suspicions of such activitymust be reported immediately. It ensures the employee that no reprisals will beundertaken towards them. In other words: whistle-blowing is allowed and promoted.The most important aspect of this document is its comprehensive approach to conduct.In relation to this point it is important to note that it is mandatory for all GrameenPhoneemployees to sign a document agreeing to comply with this code.Controlling the supply chain:GrameenPhone has according to the annual report (GrameenPhone 2007c),“implemented various policies and procedures for ensuring strong governance at thecompany level”. This was also highlighted in the interview with the HR director. Evenout-sourced staff is offered training, insurance and benefits partly as regularemployees. Furthermore, all suppliers are to entitle to respect, and the selectionprocess for choosing suppliers is transparent for all parties involved. However there arestill some challenges which need to be overcome both in terms of the supplying firmsspecifically and individuals employed through the supplier. This relates toimplementing stricter rules for health and safety, and making HSE (Health, Safety andEnvironment) training and awareness a top priority. All in all GrameenPhone works toimprove the system of supplier control.

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Standards for Health, Safety andEnvironment (HSE):GrameenPhone has issued a manual f o r HSE work within the company. The manual i savailable in all sections of the company and applies equally to permanent, contract andtemporary employees. The HSE policy is based on the corresponding policy in Telenor withcertain local adaptations. The Telenor policy is subject to internal c o n t r o l by Telenor ASAwhich in turn is then scrutinized by external auditors. This ensures that high standards arekept.The manual offers a comprehensive outline of the responsibilities and duties ofGrameenPhone and that of the individual employee. An important aspect of this is themedical consultancy and regular check-ups provided for GrameenPhone employees incollaboration with authorized medical centers. The manual offers an overview of theagreements with such centers and the employees are made a w a r e of their location a n dservices. Furthermore, t h e HSE guidelines a p p l y to all stakeholders implying thatexternal companies , such as suppliers have to follow the regulations as well.The p o l i c y i n c l u d e s specific m e a s u r e m e n t statistics and strict procedures forinspection and reporting. All protective gear is described and prescribed and the closestsupervisor is responsible for making sure that each employee follows these procedures.Performance in accordance with the guidelines is supervised continuously. For instancethe drivers are subject to strict guidelines for safe driving and as a result continuouslymonitored by the Fleet Management System, indeed a GPS based surveillance system hasbeen put in place to save costs, reduce environmental impact, protect the drivers andmake sure that conduct is in compliance with the HSE requirements. Inspections andfollow-ups are conducted at the beginning of every year or whenever the HSEmanagement finds it necessary.Being one of the debt issuers at the establishment of GrameenPhone, the InternationalFinance Corporation (IFC) has set strict demands for HSE policies. When GrameenPhonedeveloped its HSE manual, the IFC placed it prominently on its homepage as a good modelto follow. This could also be viewed as another indication that GrameenPhone is a pioneer

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CSR Policy & PracticeGrameenPhone aims to be a responsible corporate citizen of Bangladesh and this isreflected in its slogan: “We are here to help”. CSR is considered very important byGrameenPhone. The Director of New Business identifies three reasons for this; first,GrameenPhone has a connection to Grameen Bank and DR. Muhammad Yunus andrecognizes the importance of this, particularly in relation to public opinion. Second, it hasa connection to Norway which is well known for its involvement in development issuesin Bangladesh. Third, being the market leader, people tend to demand responsibilityand as a result CSR policies are usually clearly visible.Projects and Program:CSR projects have always been a part of GrameenPhone. The VillagePhoneprogram and sponsorship of the national cricket team are examples of old CSR initiatives.However, the earlier efforts were seen as too fragmented. Recently, CSR activities havebeen coordinated under a new director and guided by a comprehensive strategy. Thenew strategy has pointed to three areas where the CSR effort is to be directed;education, health and empowerment, all in accordance with the United NationsMillennium Development Goals. However CSR can also be important for developingnew business opportunities.In the area of education GrameenPhone aims to work mainly with primary schooling.However, one engineering university has approached GrameenPhone with a request forsupport to build an ICT lab. The idea is that the lab is run by the government and paid forby GrameenPhone, which will also provide some of the equipment. In addition,scholarships for poor female students to attend university are also offered byGrameenPhone.Health is the largest area of CSR activity in GrameenPhone. Several programs and projectshave been established. One is in cooperation with US Agency for InternationalDevelopment (USAID) supporting the Safe Motherhood and Infant Care Program whichaims to provide health care to underprivileged groups in the society. Another is inpartnership with the Dhaka Ahsania Mission Cancer & General Hospital. GrameenPhone isdeveloping and sponsoring five new wards and an operating theatre at the new hospital.One-third of the capacity of these wards will be reserved for underprivileged people whilethe rest of the services will be offered at a discount. Moreover, GrameenPhonecooperates with United Nations Program on HIV/AIDS (UNAIDS) focusing on the spread andin particular the prevention of HIV/AIDS.Finally, in partnership with SightSavers International, GrameenPhone is arranging mobile,free “eye- camps” in rural areas. To date three camps have been organized and funded andan agreement of continuous cooperation has been signed. In general GrameenPhone isaccording to the Director of

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New Business, aiming to provide these mobile clinics with advanced technology forbetter communications. This also includes combining health centers and CICs.A focus on ‘empowerment’ is claimed to be an important aspect of other projects andprogramswhich GrameenPhone is involved in. CICs are seen as particularly important in this respect.Projects with explicit objectives in terms of ‘empowerment’ have not been undertaken sofar.In addition to these three areas of focus, GrameenPhone sponsors the national cricketteam and a number of other socio-cultural events and activities.Managing CSR:The overarching management guideline is that all CSR activities within GrameenPhonehave to be both long term and sustainable. An important part of this is monitoring andco-managing projects with joint partners. All projects are to be reviewed on aquarterly basis and GrameenPhone recognizes that partnerships are extremelyimportant to obtain the desired results. The selection of partners is based on theorganizational experience and reputation within the country. International Organizationssuch as USAID, UNAIDS and DFID are partners at present.

Summing up:The social aspects of GrameenPhone are plentiful:The impact from business activities such as: the Village Phone, theCommunity InformationCenters, the Health Line, the BillPay and the extensive customer’s service.The comprehensive Human Relation policy and practice including; Trainingand Human Resource development, Employee benefits, Code of Conduct,Control of supply chain and Standards for Health, Safety and EnvironmentThe emphasis on Social responsibility GrameenPhone is the largest mobiletelecom network in Bangladesh with a large and continuously expandingcapacity. It is both the largest employer and perhaps unsurprisingly the largesttax payer in the country. The technical, political and financial contribution of thecompany is therefore substantial. It is currently operating within a strict code ofconduct, which also applies to all stakeholders. It has a professional andadapted HR policy including HSE and training program, and extensive CSR andother related social business activities.

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Professional ManagementWith Local Knowledge

Currently 10 out of 12 people in the management team are local. This team has beenrunning the company throughout the recent phases which have seen rapid growth. Itseems as though the development of local competence has been crucial for the success.Furthermore, Telenor has been particularly important in facilitating much of the capacitybuilding in GrameenPhone. This is due to the following factors.Through the Telenor Development Program, Telenor has set the standards for trainingand staff development in GrameenPhone. The program is developed by Telenor andcustomized by GrameenPhone for local variations, such as culture. Furthermore the hiringof a local, experienced HR manager could be seen to have strengthened the courseand direction of the HR work including training and competence development. Thesynergies from Telenor are strong, but the autonomy and the ability to make localadjustments are equally important. The consequence of this is a system where allemployees are given the possibility to develop up to the highest level of managementeducation and competence.There is an impression that many managers were given new responsibilities. The resulthas been a steep learning curve and rapid competence development. The fact that mostof the employees in GrameenPhone are below 30 and very few above 50, suggest thatthis strategy has been fruitful, and that many managers are growing in their position.The goal of lowering the number of expatriates working in the company is a lot morethan a vision. It is also a reality. One can argue that the future outlook for GrameenPhoneis positive, mainly a result of, amongst other factors, its young, dynamic and competentlocal workforce.Telenor has provided management expertise from the beginning, most notably; all ofthe CEOs have been sourced through Telenor. One could arguethat placing keypersonnel inGrameenPhone, Telenor was a b l e to p r o v i d e the company with e x t e n s i v eautonomy. Several interviews suggested that this a u t o n o m y makes GrameenPhonedifferent from o t h e r telecom companies in Bangladesh. Based on this, one couldsuggest that Telenor has played an important role in fuelling the success. Whether thiswill remain e q u a l l y important in the future, is harder to determine.Some criticism h a s b e e n pointed towards the local m a n a g e m e n t regardingmarketing. Public opinion in Bangladesh suggests that the resources being p u t intomarketing could be better used lowering t a r i f f s . The marketing budget of GrameenPhoneis presently 4% of the t o t a l r e v e n u e . However, observing the marketing situation inBangladesh and advertising in particular, e x t e n s i v e

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marketing seems paramount to gain customers. Advertising through billboards, TV,radio and newspapers takes a considerable part of the public sphere and in order to benoticed one has to be aggressive. Or as noted by a director in the marketing division:“Everyone is shouting so we have to shout louder. And we do”. In this reality one can arguethat extensive marketing is necessary to be able to compete. The alternative would be tolose market share. In conclusion the development of a local and competentmanagement team through extensive training programs and a sound HR policy hasbeen important for the overall success of GrameenPhone.Increasing competition:The market is already rather competitive with six mobile telecom operators inBangladesh, five of them with strong, international partners. This has resulted in lowerprices, a larger range of services and extensive marketing campaigns. So, the competitionhas played an important role in the GrameenPhone success.Higher competition has led to decreasing prices, and in turn lowered entry barriersfor new consumers. This combined with the declining price of mobile hand-sets; thegrowth of potential customers has been considerable. The majority of newpopulation segments reached by GrameenPhone have been lower income consumers.This may have forced GrameenPhone to roll out new services faster than it would else have,in order to avoid devastating price competition. It is difficult to say whether theexpansion of services have been beneficial for GrameenPhone in business terms. It hashowever, as suggested earlier, seemingly been positive for the development ofBangladesh. One could argue that fierce competition has forced GrameenPhone toinnovate and roll out new services, which is believed to have had an important effect onthe development of Bangladesh.

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Impact fromBusiness Activities

GrameenPhone business activities feature explicit social missions combined withbusiness objectives. The 2006 Annual Report (GrameenPhone 2006c) lists some of the mostcrucial business activities, which are summarized in this section.Village Phone (VP) Program:The Village Phone Program works as an owner-operated pay phone.It has created a good income-earning opportunity for the VPoperators. These are mostly poor women, also borrower membersof Grameen Bank. The VP Program is being visible inGrameenPhone from the start and it is a distinct characteristic of thecompany. As of today, there are more than 260,000 VP operatorsin over 50,000 villages in 439 sub-districts of the country. Thesocietal e f f e c t o f this Program has been subject to several studies(Bays et al. 1999; Richardson et al. 2000). It received the “GSM in theCommunity” award at the GSM World Congress in Cannes, France inFebruary 2000. It is important to note that the growingnumber of subscribers has led to a decline in the markets for the VPoperators.Community Information Centers (CIC):The CIC are a small internet kiosksequipped with a computer, a printer, ascanner, a web cam and an EDGE-enabled modem to access the Internetusing the EDGE connectivity. They aredesigned to be run independently assmall businesses by local entrepreneurs.Beneficiaries use the centers for a widevariety of business and personalpurposes, ranging from accessing healthand agricultural information to usingGovernment services and video conferencing with relatives overseas. GrameenPhonetakes an active part in the training of these entrepreneurs, so that that they becomefully aware of the potential of their business, through the CICs. Since 2 0 0 6 ,GrameenPhone has built 550 CICs country-wide, employing 945 people. The objective ofthe CIC is to “bridge the digital divide” by offering internet connectivity to a broad

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range of the population and to create business opportunities for entrepreneursthroughout the country. It is an important part of GrameenPhone’s CSR strategy.The CICs are started up and run by local entrepreneurs who are selected in a highlycompetitive process. The establishment requires 1000 USD in start-up capital whichsometimes is acquired from microfinance institutions. But more often it is financed throughthe individual’s family. The average income is 3-5 USD a day, yielding approximately 150 USD amonth which also is the revenue target. With this level of revenue the investment is paidback within a year. GrameenPhone is the facilitator of this type of business through offeringdiscounts on the internet service, the network capacity, training and follow-up of theentrepreneur. Today however, it is estimated that only about half of the CICs aresustainable, a problem which GrameenPhone is addressing by looking more rigidly at theeligibility and selection criteria.In addition to the services offered in a regular Cyber Café, the CIC offers specializedinformation about employment opportunities. Furthermore it acts as a medium forgovernment information including forms, VISA applications and so on. It is meant to be theinformation nerve centre of the local community.

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Health Line:In cooperation with the Telemedicine Reference Centre (TRCL),GrameenPhone is offering, for subscribers, the HealthLineservice, a unique 24-hoursMedical Call Centre manned bylicensed Physicians. Our HealthLine service is offering arange of services including, general medical information,advice and information on drugs, interpretation oflaboratory reports, and help in medical emergencies. Theinitiative started in November 2006, and it was awarded aglobal award from GSM Association already in 2007. TheHealthLine service is financially sustainable.The TRCL is at all times staffed by medical doctors. Most ofthe problems are solved by the doctors individually or byconsulting specialist colleagues. Many of the staff-holdspositions in local hospitals in addition to the work at the TRCL.Today, the service is manned with 24 doctors. It is answering 6000 telephone calls perday. TRCL estimates that the total demand is close to 20 000 calls per day, but capacityconstraints are holding it back.BillPay:

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The BillPay service of GrameenPhone is giving people easier access to paying their utilitybills by using GrameenPhone’s extended network of retailers. A pilot project in Chittagongcovering almost 300,000 electricity consumers is offering easy access to 500 retail storesgiving customers an opportunity to pay their bills without going to the bank. There areother advantages too, the Power Development Board (PDB) - the electricity service provider,is getting its money in a safe transfer and people face smaller transaction costs whenpaying their bills. The BillPay system has not been extended nationally yet, but the pilotproject is promising, and expansion plans are expected to progress rapidly.The greatest challenge for the BillPay is the weak financial infrastructure, the regulatoryregime and the small level of trust from customers. BillPay is a part of the larger MobileCommerce road map with an objective of increasing the availability of similar services in thefuture.Extensive Customer Service:In accordance with the core valueof “make it easy”, GrameenPhonehas built an extensive network ofservice centers and call centers.These centers are divided into threecategories. First, what the annualreport refers to as “the flagship” arethe GrameenPhone Centers. Atpresent 80 suc “One-Stop shops” forsale and afte sale service areoperational. Furthermore over 600GrameenPhone Customer Servicedesks are spread among almost everysub-district of Bangladesh.GrameenPhone has also establishedtwo 24 hour services: GrameenPhoneCall Centre and the internetbased Graha Katha Online.Access to the ‘Information Highway’:GrameenPhone launched the EDGE service, a high-speed data service providing wirelessInternet access, in September 2005. Now, the entire GrameenPhone nationwide network isEDGE enabled, meaning any of its subscribers can access the Internet from anywhere inthe country within it coverage area. Presently, there are nearly 3 million EDGE users inthe GrameenPhone network compared with about only 600,000 fixed-line Internet usersin the country. In other words, GrameenPhone is also the largest Internet Service Provider(ISP) in Bangladesh. This indicates that more people are accessing the Internet

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through mobile phones than through any other means. In a country where the last-mileconnectivity is only limited to certain areas of larger cities, this trend is likely to continuefor the foreseeable future.Vehicle Tracking:

Vehicle Tracking service is a GPS based vehicle tracking solution that provides instant locationinformation to the vehicle owner/authorized person through web/SMS with other flexibilities.Through this comprehensive solution, a subscriber can learn the real-time position of his vehicle, andapply rules on the vehicles (e.g.: speed limit, No Go Area, etc.). In addition, subscribers can also securetheir vehicles by subscribing to security features like remote immobilization, panic alarm. Some ofthe other features are: Speed Violation Alert/Report (speed of all vehicles can be controlled,monitored, and hence when violated, immediate contact can be made to reduce such violation); AreaAlarm (an area can be assigned to vehicles, the owner/authorized person will be notified, if the rule isviolated); 'No-Go' area (A 'No-Go' area can be created for the vehicles, the owner/authorized personwill be notified, if the rule is violated); in addition, the car owner can find out whether the ignition ison or off; if on, then whether the vehicle is moving or stationary, thus vehicles can be monitored evenif they are switched off.Features of Vehicle Tracking Service:

Track & TraceVehicle location via SMS/WebNearest vehicle traceEngine statusMovement status (standby/running)Rule Setting Features:"NO-GO" areaSpeed violation alertBattery tamper alertSubscribers will be able to track their vehicles anywhere under Grameenphone's data network. Thetracking can be conducted with a mobile or PC through http://vts.grameenphone.com. The systemand devise installation will be done at selected pointsin Dhaka and Chittagong. In addition to theinstallation points, there will be a mobile team who will be travelling to customer

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premises and install the devices. To avail the Vehicle Tracking Service, subscribers can visit selectedGrameenphone Centers in Dhaka and Chittagong. Interested organizations may contact their 'KeyAccount Managers' or email at business.solutions@grameenphone.com to register for queries.Team Tracker:

Business is like a game of chess. Every move matters.Time is precious. The location and movement of eachpiece is a must-know for one to win the game. Today'scompetitive and fast changing business world demandsthe same.With Grameenphone "Team Tracker" ,you can locateyour workforce and direct them towards theachievement of your business goals.Team Tracker is a new value-added solution for theBusiness Market. This solution willhelp bring about efficiency to the value chain of organizationshaving field employees. Managing field operations & directing field employees towards the businesssuccess has always been a concern for field managements like National & Regional Sales Managers,Area Managers & Distributors.With the services of Grameenphone Team Tracker, organizations can now locate its employees,assign tasks to them digitally & also receive task updates electronically. The system is robust enoughto handle data for even a thousand employees.Data flow:

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7 reasons for being with GP1. Nationwide Coverage:We at GrameenPhone have always been working to fulfill our aim: tokeep people stay connected, whether to their dear ones or to theirbusiness, anywhere they go, may it be our country or around theworld. Today we cover every corner of our country through ourwide coverage of the network, helping people stay close to their near& dear ones.2. Great thankyou Bonus and Discounts:We are blessed with customers, who are steadfastly loyal tous. Thus, we have presented regular talk-time & discount toour valued customers through our thank you customerretention service.3. Nationwide Customer Service:We are also providing the friendliest service, to all our customers, regardlessof their spending or duration of their stay. Not only that, we are present atmost number of locations throughout Bangladesh, catering at theirconvenience through 121 Service, GPC & GPSD.

4. One-Stop Solutions atGPCs: GrameenPhone makes all kinds of mobile related services available atone place, under one roof, through GrameenPhone Centers, asconvenience of our customers is one of our chief priorities.5. Fastest Web Browsing:

In this modern world, we ensure our valued customers can stay connected evenon the move. Thus, we have introduced EDGE, a fast & reliable mobile internetservice, for them to always stay informed. Our Community Information Centersdelivers the power of the internet to the remote villages of Bangladesh.

6. Nationwide FlexiLOAD Facilities:We have delivered convenience to our customers through our FlexiLOAD service,reducing time required for recharging & paying bills.

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7. 24-Hours HealthLine & OtherServices:We are the pioneers in bringing new innovative services for ourconsumers, based on communal or individual needs. HealthLine, Bill Pay,Pay-for-Me are all here to make life easier & better for our customers.

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Overall ImpactFrom the above empirical description, GrameenPhone has contributed todevelopment inBangladesh in several ways:

Building technical infrastructure with increasingly more advanced services, workingtowards a critical mass, where telecommunication impact on development will increasesignificantly.Through the transfer of technology and managerial expertise.Building production and maintenance capacity locally.Through strict codes of conduct possibly strengthening the norm against corruption.Individually, and through ATOB, working close with regulatory authorities againstefficiency- hindering policies.Through high production and related high tax payments, as well as throughcontinuous investments in competition and product differentiation. This results ina larger consumer surplus.Wages and payments paid out to close 100,000 people, with considerable income effects.Through extended business activities such as CIC, BillPay and HealthLine reducingconsumer costs of basic services.Through professional HR practices and training programs enhancing human capital aswell as setting a standard for behaviour and conduct.Through community services which help fund basic services for poor people. It seemsthat the impact of GrameenPhone on the development of Bangladesh is very significant,and also clearly beyond what is traditionally expected from a private company, such asinvestments, wages and taxes. The code of conduct, HSE policy, HR practices andextended business activities seem to play an important role in GrameenPhone andalso have effects beyond the company’s own specific goals. A particularly interestingobservation is the “intellectual domestication” process going on, most likely implyingincreasing management independence.

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GPat a glance

Subject Description Status/Other

Operator, Network Name GrameenPhone Ltd. GrameenPhone / BGD-GP

Founder, Co-founder Iqbal Quadir DR. Muhammad Yunus

Permission & Inception 28 November, 1996 Bangladesh Government

Company Type Mobile Phone Operator Telecommunication

Service launching 26 March, 1997 Independence Day of Bangladesh

Services Circuit Switched 2G Inbound CAMEL Phase-2

Slogan We’re here to help Stay Close

Key People Mr. Anders Jensen, CEO Mr. Erik Aas (Former CEO)

No. of Customers More than 2,00,000,00 As of June, 2008

No. of Employees Over 5,052 As of WikiPedia.org

Network Type GSM 900 LIVE

No. of Towers (BTS) Over 10,000 As of GP’s Official Website

No. of Tower Locations 5,700 countrywide As of GP’s Official Website

Tower Range & Capacity 1.5 Kilometer2,500 Incoming + Outgoing Calls

at a time

Card Type SIM Built-in Electronic Phonebook

Internet Connectivity EDGE/GSM Average 20KBPS Bandwidth*

Investments USD $ 1.6 Billion Till December, 2007

Annual Income ▲ USD $ 91.4 Million As of WikiPedia.com

Head QuarterCelebration Point, Road # 113/A,

Plot 3 & 5, Gulshan-2, Dhaka.Bangladesh

Official Website www.grameenphone.com www.djuice.com.bd

Official Website Server Linux, Apache / Unix IP Address: 202.56.4.67

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List of abbreviationsADB – Asian Development BankAL – Awami League (political party)APRU – Average Revenue perUserASA – Microfinance Institution in Bangladesh (means “hope” in Bengali)ATOB – Association of Telecom Operators in BangladeshBRAC – Microfinance Institution in Bangladesh formerly known as “Bangladesh RuralAdvancementCommittee”BDT – Bangladesh Taka (national currency)BNP – Bangladesh Nationalist Party (politicalparty) BOI – Board of Investments inBangladeshBPI – Bribe Payer IndexBSR – Business for Social ResponsibilityBTRC – Bangladesh Telecommunications Regulatory CommissionCEO – Chief Executive OfficerCIC – Community Information CentersCLO – Chief Learning OfficerCMO – Chief Marketing OfficerCPI – Corruption Perception IndexCSR – Corporate Social ResponsibilityDFID – Department for InternationalDevelopment (UK) EDGE - Enhanced Data rates forGlobal EvolutionFDI – Foreign Direct InvestmentsGDP – Gross Domestic ProductGNI – Gross National IncomeHR (M) – Human Resource (Management)HSE – Health, Safety and EnvironmentIFC – International Finance CorporationIFRS – International Financial Reporting StandardIMF – International Monetary FundISP – Internet Service ProviderITU – International Telecom UnionNORAD – Norwegian Agency for Development CooperationNPL – Non-performing loansPDB – Power Development Board

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