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Wednesday, May 2, 2007

Innovative strategy of Banglalink for Warid Telecom.

Banglalink started its operation in Bangladesh as a telecom operator with a big bang. As it is a venture of Orascom (a globally renowned telecom operator) people of Bangladesh had huge expectation from BL. In that respect BL did a moderately good job in bringing down the call rate, other telecom vendors had to think seriously on their value added services etc.

Then came the part of disappointment. Rather than focusing on its products and services they focused on sales. Even I have heard of stories where Bl distributors sold SIM card at locations where there had not been any network coverage of BL. False commitment in their marketing communication (64 districts in nine months bla bla…) helped them to gain increased sales but the customer dissatisfaction was a complement to that.

Recently, I heard a stunning news about BL. As a new player (Warid Telecom) is entering Bangladesh telecom market, the management of BL has decided to reduce its operational expenses. And in order to reduce their opex they have decided to abate the salary of their contractual employees. What an innovative way to reduce opex!!! And the other decision they have taken to reduce their opex is, have stopped expanding their network. Which implies they will not be spending any money on network expansion but will be selling connections with higher aggression. I really wonder whether these decisions will help them to sustain in competitive telecom market of Bangladesh. wish good luck for Bangla link!!!


Good Samaritan said...

That will be disastrous for Banglalink. How can they even think of expanding market share without expanding network. Was thinking of getting a job in Banglalink .... I guess that's out.

Anonymous said...

i think service quality will increase the customer base fr the mob operators in bd. nd more sims wont help in that case. they better go fr speech quality, line availability, fast nd cheap net service nd ofcourse lower cost. decrease in salary definitely wont help rather lower the performance of them. hope BL realise this soon nd upgrade their relatively lower (than gp) working environment in future.

Anonymous said...

The news of reducing cost on network is wrong. Actually, BL is spending more than ever on Networks now.

Anonymous said...

who ever wrote the article was wrong.the present market position of BL is the proof.wold wide recognised groups are not fool & they never disclose their total we better know their plan first then analyse them more deeply.because your immature comment can hamper others reputation.