Our Education Info: Friday, December 09, 2011

Marketing plan for the WIMAX service provider Ultra Wave.

1. Executive summary:

Ultra Wave is a new and exciting company going to provide fast and reliable WiMAX internet service to residential and business customers across Bangladesh. We believe that everyone should be able to enjoy trouble-free access to the internet and the world of opportunities that it brings. Our aim is to make a magical internet experience available to everyone, everyday, without exception.

Ultra Wave is the creation of a group of global telecoms professionals who saw that a new technology called WiMAX could really change the internet experience for millions of people worldwide. WiMAX means that you don’t need telephone lines or cable to get connected: all you need is to live close enough to a transmitter to receive the internet wirelessly. As you read, we’re busy building a network of base stations to offer our brand of internet access right across Bangladesh. We’re starting in Dhaka, but quickly plan to do the same in cities nationwide.

As you might imagine, building a network like this needs to be done properly. So we’ve gathered a highly talented team right here in Bangladesh to build a company that’s determined to improve the internet experience for millions of people – not just here, but ultimately all over the world.

2. The challenges:

· Absence of awareness about Wimax among general public and regulators, consumers and trainers may emerge as obstacle in familiarizing Wimax Bangladesh.

· Low internet penetration can be a set back to develop Wimax consumer base.

· Developing a performing consumer segment can turn out to be time consuming and difficult. Lack of infrastructure may prevent efficient and timely launch of Wimax in Bangladesh

· Poor affordability of consumers may prove to be a difficulty.

· Lack of knowledge of regulatory authorities (Ministry of Telecommunications and IT, Tele- com Regulatory Commission, Board of Investment, and Tax Department etc) may hinder successful launch of Wimax in Bangladesh.

· UN-even competition from existing cable service ISP may turn out to be an obstacle. Lack of training facilities for Wimax technicians can be a problem.

· Technological integration with existing mobile operators and ISP may become difficult. Funding limitations may slow down efficient launch of wimax in Bangladesh.

· Absence of specialized marketing professional may become an obstacle.

3. Situation analysis

Company Analysis

Goals:

l We will overcome the perceived lack of need by creating applications that meet customer needs at work and at home.

l We will overcome the fear of technology by making Wimax easy to install, use, and navigate.

l We will cut through the maze of information with an accessible and useful guide to our services.

l We will offset the perceived lack of quality of Internet services that plagues our industry by making substantial investments and by focusing on the long-term viability of our business.

l Finally, we will address concerns about the industry's lack of stability by having a name that instills confidence.

Focus

The ISP industry in Dhaka is considered to be moving to a more competitive market, although there are 75 ISPs in Dhaka (members of Internet service providers association Bangladesh), but there is a vast scope to enter & win market share by providing better services. The telecom infrastructure is fast approaching global standards is still monopolized by mobile phone operators, this is likely to change as policy recommendations and objectives of the Bangladesh Telecom Regulatory Commission (BTRC) will spur additional competition. The immediate opportunity is for additional investment in ISP’s to provide value added services at competitive rates. Our firm can offer: 1) high-speed internet service, 2) digital TV; 3) digital audio and video; 4) VOIP, 5) mobile IP telephony, 6)ATM connectivity, 7)IP PABX 8) online radio, 9) tele medicine, 10) metropolitan area network for corporate offices and 11) conference call using secure networks and potentially virtual private networks (VPN) for personal & business use. These ISP’s already take advantage of the broadband infrastructure but additional investment in dedicated hardware and service is required. Specifically the investment is for ATM 155 mps lines and switches on the existing “backbone.” Such ISP may focus on building a 100000 to 150000 consumer (this is the target for whole country, target for Dhaka city is half of the total amount.) base and a parallel focus on business clients for data storage, services support, domain, database and website hosting, and internet access provision.

Culture

The organizational culture of our firm has following characteristics:

n We encourage our employees to be innovative & creative, we allow them to take moderate levels of risks so that they can bring new ideas.

n Our firm is not totally outcome oriented, we want to win market share, don't want to gain it. We are committed to provide high services to win market share.

n We are totally customer oriented firm, our primary focus is to deliver highest value to the

customer.

n We have a team oriented firm. We like to work in teams.

n We encourage our people to be aggressive & competitive towards our rivals.

n We are flexible enough to adapt with the changing market situations.

Customer Analysis

Number

We have a target to have more than 50,000 customers in Dhaka city. It’s our initial target.

Types

We have customized our offers for both the individual users & organizations. We have our packages suitable for both the home users & office users. We further divided our target customers into light users, medium users & heavy users.

Value Driver

Our core product is very high quality internet service associated with tremendous "know how" that solves a customer problem. Ultra Wave’s key value drivers include: high quality internet service, highly skilled workers, quality control, moderate pricing as much as possible and R&D (research and development) for continues improvement.

Competitor Analysis

Nine companies took part in the auction that held in the Radisson Hotel on 24th September,

2008. Bangla Lion Communications, Brac BDmail Network Ltd and Augere Wireless Broadband Limited Bangladesh - won Licenses to operate as WiMAX operators in Bangladesh. These 3 companies won in the auction for a record breaking 31 million dollar or 215 crore taka. The previous record for WiMAX license fee was in Singapore (18 million Dollars).

Bangla Lion and Augere (Qubee) has already started their operation. Our main competitors are therefore Banglalion and Qubee

Banglalion Communications Ltd. is a sister concern of leading Bangladeshi business conglomerate- "Sunman Group of Companies" By the 2nd quarter of 2010, Banglalion plans to bring the whole Dhaka city and it's wider periphery under WiMAX coverage. By the end of 2nd quarter 2011, Banglalion plans to bring most areas of the country under its seamless coverage and thus Banglalion will provide its valuable customers with innovative, affordable and useful product line of Banglalion.

Coverage: As part of the coverage plan, BanglaLion has already installed & commissioned number of BTSs. Right now it is available in few areas of Dhaka City

About Qubee:

Qubee is the real internet experience from Augere. Qubee is the creation of a group of global telecoms professionals who saw that a new technology called WiMAX could really change the internet experience for millions of people worldwide.

Coverage: Qubee will soon be available right across Bangladesh, but the service is being launched initially in Dhaka

Ultra Wave:

Our Prospects in the market:

Bangladesh Telecom Regulatory Commission estimates that the number of internet users will exceed

1 crore once WiMAX becomes fully functional. As Bangladesh's Telecom Industry is booming with

a growing middle-class, experts expect a big demand for broadband wireless services and WiMAX. Bangladesh will have around 12 million WiMAX subscribers by 2012, they expect. BTRC Chief Major General (Retd) Manzurul Alam said WiMAX will definitely unleash the Internet, creating a new optimism for Bangladesh. Being a densely populated country the technology is expected to prove better results to Bangladesh than many western countries, he added. So there is a huge room of attracting new users to avail Wimax and also bringing customers who are using other services (like broadband, dialup, mobile network) in the line. Ultra Wave will focus on both the side and will try to create a large pull of customer with a short pull of time and also maintain the same with superior support services.

Coverage Plan: Ultra Wave plans to cover the key areas of Dhaka by end of December 2010. By the

1st quarter of 2010, It plans to bring the whole Dhaka city and it's wider periphery under coverage by installing 300 BTSs. Meantime, network rollout in other major cities such as; Chittagong,

Sylhet, Khulna, Rajshahi, Barisal are about to begin. These cities and peripheries are expected to be under the coverage of Ultra Wave’s coverage by the 3rd quarter of 2010 and by the end of 2nd quarter 2011, it plans to bring most of the areas of the country under it's seamless coverage.

Price Competitive analysis:

At bottom line, we are seeing that Banglalion has come up with a Starter package of 3GB (Speed:

128 kbps) cost will be 600/month.

Qubee has brought Qubee 256 Sky and Qubee 512 Sky packages. Monthly charge of Qubee 256 kbps package is 1250 and sky is the limit of bandwidth.

Ultra wave will bridge the gap here. It will bring a 256 kbps package of 3GB bandwidth; monthly subscription will be tk. 1000

SWOT Analysis

Strength

Growing use of internet

High mobile phone penetration (allowing consumer development for internet)

Tax free supply of computers

Government focus to develop digital infrastructure

Weakness

Poor infrastructure

Lack of familiarity with Wimax

Under developed consumer segment

Limited inflow of investment Lack of knowledge of regulators High tariff of internet service

Opportunities

Substantial potential market

Steady growth of GDP and purchasing power

Quick spread of computerization in the country

Threats

Economic constraint of consumers

Unfair competition from existing cable ISP

Bureaucracy of government organizations

PEST Analysis

Political:

Political environment in Bangladesh is always unstable. We can see frequent change of government in Bangladesh and unfortunately policymakers can’t stick with their policies. This is a great problem for the technology/IT industry where features are changing every day. We should come up with a long term plan for IT industry in Bangladesh and prospect of it is huge and impact is also very important in all aspects of the country. As strategy and policy maker of our company (Ultra Wave) we will keep this in mind and will try to shape ourselves and our plans according to the condition of the country.

Economical:

Bangladesh Telecom Regulatory Commission estimates that the number of internet users will exceed

1 crore once WiMAX becomes fully functional. This indeed is great news for all tech savvy people in Bangladesh, but some of the facts also suggest that WiMAX will not be any cheaper mean. Companies spending such huge money will definitely try to get their money back. In a TV interview Mr. Mannan of Bangla Lion Communication said that they achieved the license spending

a huge money which they want to cut loose by getting a foreign company who will co-invest with them. Besides, the equipments will still be very expensive for the end users. So it is a bit tough to avail this technology to middle earners group. Though internet usages is very low in Bangladesh compare to the population, still usages of mobile phone always give us a hope that with the downturn of prices, user will increases. Also we can expect that this industry and much other industry will create demand of internet usages and wimax in Bangladesh will be the first choice.

Social:

Introduction of WiMAX would have a synergetic effect on rural Bangladesh, an emerging market for the technology, Bangladesh Telecommunications Regulatory Commission (BTRC) experts and leading international vendors said at a meeting. Well use of internet as both positive and negative effect in society in every country. We are expecting that Bangladesh will adopt most of the positive sites which will increase social awareness and development in many areas and wimax will act as a strong media.

Technological:

WiMAX or 3G, whatever it is, Bangladesh is adopting newer technologies quicker than many other countries – and these facts are enough to make us optimistic. Since ours is a small country with a huge population and limited resources, technologically sound population will be able to produce more using brain power and technology instead of industrialization- which we can’t afford in

reality.

4. Segmentation

Basic home user

Light downloading and regular surfing, ideal for emailing, blogging, instant messaging, social net- working etc

Average and medium internet user

On line shopping, sending photos & downloading music etc.

Average and medium internet user

Online gamming & Banking, Downloading, Uploading & heavy surfing, ideal for video & music streams etc.

Faster internet user

Online gamming & Banking, heavy surfing, ideal for video & music streaming, Supports surfing for

2 to 3 users simultaneously

Faster Pro internet user

Online gamming & Banking, Downloading, Uploading video & music streaming, Supports surfing for 2 to 3 users simultaneously etc

Fastest internet user

Frequent downloading, Uploading & extreme surfing, ideal for video & music streaming, Supports surfing for 2 to 3 users simultaneously etc

Heavy internet user

Frequent downloading, Uploading & extreme surfing, ideal for constant video & music streaming, Supports surfing for 2 to 3 users simultaneously etc

5. Marketing Strategy

Ultra wave has exceptional expertise in the design, roll-out and delivery of telecoms networks in emerging markets.

Ultra wave's strategy is to

# Identify emerging market opportunities.

Ultra wave's selection criteria is based around sound business planning principles which identify markets based on a number of key success defining factors such as population (and urban density), literacy levels and GDP.

# Availability and access to spectrum.

Each country has a unique process for the allocation and pricing of its spectrum. Ultra wave has a robust methodology for assessing the ultimate value of the spectrum.

# Ability to rapidly 'operationally' in country.

Technology roll-out and integration, coupled with intensive training on the ground allows

Ultra wave to quickly bring its services to market.

# Deliver affordable and reliable broadband.

Use economies of scale and superior technology to achieve a customer proposition of affordable and reliable broadband.

# International scalability

Ongoing pursuit of opportunities for geographical expansion. Carry out spectrum acquisition and network rollout in several territories simultaneously.

6. Ultra wave's product mix

Product Plan (Product &price)

Internet packages:

Package Description:

Package Name	Feature
Starter 128 kbps\|3GB/month	Basic home user light downloading and regular surfing, ideal for emailing, blogging, instant messaging, social net- working etc.
Value 256kbps\|5GB or 8 GB/month	Average and medium internet user on line shopping, Sending photos & downloading music etc.
Value Plus 512kbps\|10GB or 15 GB/month	Average and medium internet user Online gamming & Banking, Downloading, Up- loading & heavy surfing, ideal for video & music streaming etc
Home Plus 800kbps\|15 GB/month	Faster internet user Online gamming & Banking, heavy surfing, ideal for video & music streaming, Supports surfing for 2 to 3 users simultaneously
Home Pro 1mbps\|18 GB/month	Faster Pro internet user Online gamming & Banking, Downloading, Up- loading video & music streaming, Supports surfing for 2 to 3 users simultaneously etc
Mega 2mbps\|25GB/month	Fastest internet user Frequent downloading, Uploading & extreme surfing, ideal for video & music streaming, Supports surfing for 2 to 3 users simultaneously etc
Jumbo 5mbps\|30GB/month	Heavy internet user Frequent downloading, Uploading & extreme surf-ing, ideal for constant video & music streaming, Supports surfing for 2 to 3 users simultaneously Etc

Devices:

Name of Device	Price(tk)
Outdoor Unit (ODU)	10000
Indoor Unit (IDU)	7000
USB Dongle	3500

Warranty: We provide one year service/replacement for all devices.

Distribution (Place)

Our Coverage:

As part of the coverage plan, Ultra wave has already installed & commissioned number of BTSs. With these BTSs, Ultra wave plans to cover the key areas of Dhaka within a short time. By the 1st quarter of 2010, Ultra wave plans to bring the whole Dhaka city and it's wider periphery under coverage by installing 300 BTSs. Meantime, network rollout in other major cities such as; Chittagong, Sylhet, Khulna, Rajshahi, Barisal are about to begin. These cities and peripheries are expected to be under the coverage of Ultra wave coverage by the 3rd quarter of 2010 and by the end of 2nd quarter

2011, Ultra wave plans to bring most of the areas of the country under its seamless coverage.

Ultra Wave Stores

The Ultra Wave store is located at

Star tower (2nd Floor)

235 Gulshan Avenue

Dhaka

Experience Booths

It is now possible to try out the real internet experience from ultra wave at your favorite coffee shop or shopping mall. Find our experience booths in the following locations now.

Location When Address

Ultra Wave Club 27Dec'09-27 Feb'10 (10:00am-10:00pm)

House#17, Road#44,

Gulshan1, Dhaka

You can also now test drive Ultra wave or become an Ultra customer at your local Rangs sales center store. To find the Rangs sales center store nearest to you.

Ultra Wave is now available in Rangs sales center outlets all over Dhaka City.

Location Opening Times