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Tk542cr Teletalk network expansion project okayed

Doubling customers by year-end aimed

Md Hasan
The much-delayed Tk542crore network expansion project of Teletalk was finally approved by the company's board yesterday with the state-run mobile phone operator aiming to double its customers bytheendof2008.
TeleTalk is the country's smallest operator in terms of subscribers with a 2 per cent market share. It started operations in 2005 with high hopes, but has failed to compete-with the five other multiha-tional operators in Bangladesh due to a lack of quality services and poor marketing.
Till December 2007, the company was able to add only 0.84million customers in two years, whereas its nearest rival Warid Telecom International had 2.15million customers, despite only entering the market in 2007.
Grameenphone is the country's largest operator with 16.48 million subscribers followed by Banglalink with 7.08m.
The new money will be spent on purchasing network equipment, such as base stations, in order to improve reception and handle higher number of users. “Finally the board members have agreed to launch the Tk542crore project,”
said a high official of the company, adding “the next step is to determine the procedure of how the company will purchase the required equipment for expansion."
However he expressed his concern over the programme and said, “I am not sure such a programme will truly work. Customers are attracted by massive marketing and lucrative products."
Sources said the fund for the expansion programme could be mobilised by syndicated bank loans and the company's own fund. However there was a proposal to mobilise this fund through floating IPO (Initially Primary Offer) in the capital market.
Sources said the company at
present does not have to go in the capital market “We are thinking an alternative sources for mobilising money," the high official said.
A seven-member body, headed by Professor Satya Prasad Majumder of the Department of Electrical and Electronic Engineering at the Buet (Bangladesh University of Engineering and Technology), was formed to assess the necessity of much-delayed programme last month.
The Teletalk Board initially approved this project in November 2007. but questions arose about the feasibility of the programme. Therefore, the Ministry of Telecommunication formed the seven-member committee last month.