Potters Five Forces on Banglalink
banglalink - making a difference
Banglalink is the second largest cellular service provider in Bangladesh. As of May, 2008, banglalink has a subscriber base of 8.99 million. It is a wholly owned subsidiary of Orascom Telecom. banglalink had 1.03 million connections until December, 2005. The number of banglalink users increased by more than 253 per cent and stood at 3.64 million at the end of 2006, making it the fastest growing operator in the world of that year.
In August, 2006, banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections.
History
Sheba Telecom (Pvt.) Ltd. was granted license in 1989 to operate in the rural areas of 199 upazilas and later they were also allowed to extend to cellular mobile radio-telephone services.In July, 2004, it was reported that Orascom Telecom is set to purchase through a hush-hush deal the Malaysian stakes in Sheba Telecom, as it had failed to tap the business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and Bangladeshi partners. An agreement was reached with Orascom worth $25 million was finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout and because of the feud.The main reason for the undercover dealing was because the existing joint venture agreement between the Bangladeshi and the Malaysian partners dictates that if any party sells its Sheba shares, the other party will enjoy the first right to buy that.
Integrated Services Ltd (ISL), the Bangladeshi partner, was being 'officially' shown as purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's liabilities. Sheba had a base 59,000 users, of whom 49,000 were regular when it was sold.
In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (“Sheba”). It was
Banglalink is the second largest cellular service provider in Bangladesh. As of May, 2008, banglalink has a subscriber base of 8.99 million. It is a wholly owned subsidiary of Orascom Telecom. banglalink had 1.03 million connections until December, 2005. The number of banglalink users increased by more than 253 per cent and stood at 3.64 million at the end of 2006, making it the fastest growing operator in the world of that year.
In August, 2006, banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections.
History
Sheba Telecom (Pvt.) Ltd. was granted license in 1989 to operate in the rural areas of 199 upazilas and later they were also allowed to extend to cellular mobile radio-telephone services.In July, 2004, it was reported that Orascom Telecom is set to purchase through a hush-hush deal the Malaysian stakes in Sheba Telecom, as it had failed to tap the business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and Bangladeshi partners. An agreement was reached with Orascom worth $25 million was finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout and because of the feud.The main reason for the undercover dealing was because the existing joint venture agreement between the Bangladeshi and the Malaysian partners dictates that if any party sells its Sheba shares, the other party will enjoy the first right to buy that.
Integrated Services Ltd (ISL), the Bangladeshi partner, was being 'officially' shown as purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's liabilities. Sheba had a base 59,000 users, of whom 49,000 were regular when it was sold.
In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (“Sheba”). It was