In: Business and Management

Submitted By Shahed
Words 1263
Pages 6

Origin Scope Objective Limitations

Company Background


November 28, 1996: Received the Cellular license from the Ministry of Posts and Telecommunications, Bangladesh government.

March 26, 1997: Grameen Phone launched its service on the Independence day.

December 1998: Launched the GP-GP service.

September 1999: Launched a unique billing system, EASY which is the Prepaid service.

The shareholders

Grammen Phone has equity of 55 USD. It is divides among four partners of which Telenor is major. The equity structure of Grameen Phone is as below:


Telenor: It is the state owned telecommunications company in Norway, a country with one of the highest mobile phone densities in the world. Telenor is using the expertise it has gained in its home and international markets and putting it to use in an emerging market such as Bangladesh.

Grameen Telecom: It is a non-profit company registered as per the laws of Bangladesh for attaining certain social objectives.

Marubeni Corporation: It is one of the leading Japanese trading companies.

Gonofone Development Corporation: It was established in New York in the early 1994 for the sole purpose of organizing Grameen Phone.

The major lenders are International Finance Corporation, Commonwealth Development Corporation, Asian Development Bank and NORAD. It has given Grameen Phone loan of 50 USD. It also has preferred shareholders of USD 5 million.

Industry analysis

General environment

Grameen phone is doing business across the nation. So macro-economic variables like purchasing power, exchange rate and GDP growth has profound impact on its future. The main source of revenue for a mobile phone operator is not revenue from selling set or line but from call charge. If the overall economic condition is not suitable, then…...

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