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Bangladesh is an emerging land for telecommunication and the total number of active subscriber

in Bangladesh is around 13 crores. Major player in the sector is Grameenphone, Banglalink,


Robi, Airtel, Teletalk and Citycell. According to BRTC, GP has the highest active subscriber
number in Bangladesh. This market is very competitive in sense of high investment cost and
pricing strategy. the operators with lower number of subscriber feels the heat of the competition
the most. In this context, Robi and Airtel expressed their intention for merger to the BTRC at
September 17, 2015. The deal of merging was signed on January 28, 2016 and got the approval
of prime minister on July 31, 2016. After that, the deal got approval from High Court on August
31, 2016. These two companies are expecting to wrap up the merger process by October 23,
2016.
After merging, there will be three shareholders where Axiata, the parent company of Robi, will
hold around two-third of the total share, a quarter will be hold by Bharti Airtel and the rest will
be hold by Axiata's old partner NTT Docomo of Japan. Now corporation culture for Axiata and
Bharti Airtel are different. The reaction and adjustments of the employees with this merging will
remain as a question mark. Side by side, Board of Directors might have issues with one another
while decision making. Cooperation as well as proper communication will be pivotal for the
success of the merger.

According to the report, out of Airtel's 20 MHz spectrum, 15 MHz are 2G and Robi needs to pay
around 33.8 crore for each megahertz of this 2G spectrum. But now a day, the usage of 2G in
Bangladesh is lessening and demand of 3G is increasing. So, the decision of paying a huge
amount of money for buying 2G spectrum is questionable. So, the merged company have to find
a way out to utilize this spectrum profitability.
Though the high court ordered that the employers should arrange voluntary retirement scheme
for employees, it has to be seen whether they comply with the order. Besides this, the merged
company have to ensure similar compensation package the employees of the two companies as
before.
While these companies are merging, there might be confusion for the customers about the
subscriber number prefix of 016 to 018. The merged company have to find out a solution of
this confusion and come to a decision on subscriber number prefix 016, whether to change the
prefix or shut down those numbers.
As per the report, it is clear that Banglalink will lose their position after merging of these two
company, in terms of subscribers as well as revenues. Grameenphone has 5.63 active connections
and Banglalink has 3.14 crore, while after merging Robi and Airtel has 3.62 connections.
Similarly, Grameenphones market share was highest but the merging of Robi and Airtel will
surpass Banglalinks market share.

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