ROYAL UNIVERSITY OF BHUTAN
GAEDDU COLLEGE OF BUSINESS STUDIES
GEDU; CHUKHA
Assignment: ‘Telecom Sector’
Group: 9
Gedu College of Business Studies
Royal University of Bhutan
Assignment Topic
Assignment ONE on “Telecom Sector”
We declare that this academic work is my own and those derived from other sources have been appropriately
acknowledged. We understand that if found otherwise, my academic work will be cancelled and no marks will be
awarded beside the legal consequences.
Type of coursework: Mini Project
Date of submission: 15/12 2020
Submitted by: Group No. 9
Name Student No. Program Section Signature
Rigzin Wangchuk 03190261 CF G
Sangay Tenzin 03190277 CF G
Rinchen Wangmo 03200372 CF G
Rohan Gurung 03200277 CF G
Rangung Thinley 03200263 CF G
Thogmey
Acknowledgement
In this fast paced world, experience is must to survive with knowledge and hard work. So, we would like to
thank our MGT module tutor sir Dawa Drakpa for giving us this mini project which is an opportunity for us to
broaden our experience and knowledge. we would like to thank our class CF ‘G’ students for their utmost
cooperation in helping us giving honest feedback which helped us collect data for our mini project. We would
also like to thank Mr. Choki Dorji of Tashi Cell for the information they provided us. Though they were busy,
they managed to spare us their precious time and helped us provide important data and information.
Contents
CHAPTER 1. Introduction..................................................................................................................................................1
Introduction....................................................................................................................................................................... 1
Background....................................................................................................................................................................... 2
Objectives.......................................................................................................................................................................... 3
Significance....................................................................................................................................................................... 3
CHAPTER 2- Methodology.................................................................................................................................................4
Instrumentation.................................................................................................................................................................. 4
Data Collection..............................................................................................................................................................4
Interview........................................................................................................................................................................ 5
Procedure and Time Frame............................................................................................................................................6
CHAPTER 3: PESTAL Analysis.........................................................................................................................................7
Political Environment........................................................................................................................................................7
Economic Environment.....................................................................................................................................................8
Social Environment...........................................................................................................................................................9
Technological Environment.............................................................................................................................................10
CHAPTER 4.Result and Finding.......................................................................................................................................11
Interview Question..........................................................................................................................................................11
Data Collection................................................................................................................................................................12
Data collection answer is converted into Percentage.......................................................................................................13
CHAPTER 5: Conclusion and Recommendation.............................................................................................................16
Conclusion.......................................................................................................................................................................16
Recommendations...........................................................................................................................................................16
Appendix............................................................................................................................................................................ 17
Bibliography........................................................................................................................................................................ 18
1
CHAPTER 1. Introduction
Introduction
Telecommunication is a communication over a distance by telegraph, telephone, or broadcasting.
Telecommunication technology consists of electronic devices and system for communicating over long distance.
Communication is a process to transferred information from source to destination. Information can be in any
form, for example Voice, Data, Video, Graphics etc. Voice communication is the simplest forms of
communication. People also use facial expressions and body language to communicate with each other. The
Royal Government of Bhutan (RGoB) recognizes telecommunication and broadband as important contributors
to the socioeconomic development of the country. Telecommunication plays vital role in enhancing
competitiveness, increase productivity and economic development in the country. Bhutan has seen noteworthy
advance in ICT within the last decade. The Bhutan ICT policy and strategy (BIPS) 2009, which has guide the
advancement of the segment is found insufficient moving forward particularly within the regions of broadcast
telecommunication and broadband given the quick changing nature of the division (Ministry of Information &
Communications, 2016).Therefore, a policy on Telecommunications and Broadband is required. The Bhutan
Telecommunications and Broadband Policy 2014 will shape the development of telecommunications and
broadband sector in the country. The Bhutan telecommunication and broadband 2014 provide rules, standards
and method of reasoning on how to go almost creating and advancing the division (Ministry of Information &
Communications, 2016). The main objective of this policy is to perform the connectivity for all, promote rules
and regulations, creation of conducive environment for private investment leading towards an efficient market
and affordable broadband and telecom services
2
Background
The department of Information Technology and Telecom is under the Ministry of Information and Technology.
The first rudimentary works in building a telecommunication network in the country was taken up in 1963 to aid
development works of the First Five Year plan for modern economic development of the country [CITATION
Bhu202 \l 1033 ]. The first fully state owned telecommunication operator was Bhutan telecom, entered into
existence on 1 July 2000 with the corporatization of the erstwhile Department of telecommunication, which was
established in 1970[ CITATION Bhu202 \l 1033 ] . In 2003, the first mobile services in the country were introduced
by Bhutan Telecom. Bhutan’s growth in the sector has been remarkable since then. Tashi InfoComm Limited, a
private telecommunication company, began operations in 2008. Today, between the two provides, up to 76.6%
penetrations has been reached by the telecom industry[CITATION Min16 \l 1033 ].
The MoIC has carried out fibers across the country in collaboration with BPC for power transmission and
distribution facilities. So far, 20 districts and 187 Gewog have been penetrated via fiber optic cables. In order to
keep the price of services reasonable, the fibers were rented to the telecom operators for free. Using this
infrastructure, Bhutan Telecom and Tashi InfoComm are now offering services. In 2012, ITU ranked Bhutan to
118 out of a total of 157 countries in terms of ICT development. From a regional perspective, Bhutan ranks 22
out of 25countrise of Asia and the pacific region [CITATION Min16 \l 1033 ]. This ranks suggest the Bhutan are
going some ward good in terms of ICT in general.
Objectives
3
The primarily objective of the project is to analyze the factors affecting the telecommunication sector of our
country namely Tashi cell and Bhutan Telecom by carrying out PEST analysis. The study of these factors will
help in the better understanding of the external influences with which the company can mitigate the risks and
take advantages of the opportunities.
The objective is further sub-divided into:
1. Understanding the PEST analysis with a practical analysis
2. Examining the networks that we use in our daily lives
3. What are the factors that are affecting both the network?
4. Recommendation for the improvement in operation of the two companies.
Significance
The main significance of doing this assignment is to make familiar with the business environment of Telecom in
Bhutan.
Research project helps in developing team work and corporation among the students.
Helps student to understand and develop PEST analysis on any business.
Document the information collected so that it can be used for references.
Makes the student understand working environment or procedure in Telecomcompanies.
To give essential aid to those people who are having fond of to go with business in his or her carrier.
To maximize the confidence level to have ease thinking on running any business enterprise.
CHAPTER 2- Methodology
Instrumentation
4
Methodology is a data collection method that is required for the study or activity. The processes used for the
analysis or operation are data collection, publication research, interviews, surveys and research techniques. To
get the details, we use both the primary source and the secondary source. If we use only one approach to find the
information, it would be difficult to obtain general project information so that we use various methods, such as
gathering data from the class who use the service and interviewing the individual in charge of gedu's Tashicell
and b-mobile office.
Other ways to get more information are from the telecom website, Tashicell and b-mobile annual reports, and
several other websites so that we can extract what is required for market analysis and interpret the outcome.
Data Collection
First of all, we set up the questioner associated with our mini project. After that, we distributed the questioner
package to 20 CFG student individuals. As per the response they gave to us the result than we measured in
percentage.
Secondly, to find the specifics and learn them all, we use the aid of the internet. After that, we collect the data
associated with our subject. Telecommunication is communication by telegraph, radio, or transmission over a
distance. We have got the piece of knowledge that the first fully state owned telecommunication operator was
Bhutan telecom, entered into existence on 1 July 2000 with the corporatization of the erstwhile Department of
telecommunication, which was established in 1970 [ CITATION Bhu202 \l 2057 ] and Tashi InfoComm Limited is
the first private cellular company in Bhutan, the company was incorporated on January 23, 2007, under the
Companies Act of Bhutan 2016. It was the second cellular operator of Bhutan.[ CITATION Tas \l 2057 ]
Interview
5
We framed the series of questions after that we split into two teams. We went to Gedu's B-mobile and
Tashicell office to ask question to the employee. We interview Mr. an employee of B-mobile and he says
that “ We are directed by DHI and DHI is aligned with migma(government policy). Whatever major
changes taking place in terms of plan and policy it is made among the board members in DHI.”
And he also says that “As a techno oriented company, technical problems are faced always, whatever the
technological changes we have to cope with it or else we would be left behind. Technology in terms of
network speed, transmission tower, software, etc. as this gets upgraded we have to also upgrade our existing
equipment with it. And one of the upcoming is the introduction of 5g in Bhutanese market and we are on
verge of acquiring 5g and providing its service.
We also did the interview Mr. Choki Dorji of Tashicell he says that “There is some government
intervention like we are not allowed to increase the price of SIM and phones that we deal with. Our TashiCell
telecom follows the rules and regulation formulated by BIGMA which is controlled by Government. For
example, before we used to issue SIM even when the customer just provided us with their driving license or
voting card but no we are not allowed to do that, now the BIGMA have set certain policy that restrict us from
providing customer with SIM if they don’t provide us with their ID card photo copy”.
And he also says that “Before we only had 3G unlike B-moblie which provided their customer with 4G since
public demanded and preferred more of 4G networks we started losing our customer to Bhutan telecom so we
had to convert our network into 4G to compete with Bhutan telecom.”
6
Procedure and Time Frame
Sl.No Date Activities
01 15th Nov 2020 Had first discussion on the mini project.
02 16th Nov 2020 Division of work among the members.
03 20th Nov 2020 Draft the questionaries’ survey form
04 24th Nov 2020 We had an interview with the official of T-cell and Bhutan
Telecom limited.
th
05 09 Dec 2020 We did our survey within the class members.
06 11th Dec 2020 Compiled our work together.
07 13th Dec 2020 Completion of our final Daft.
7
CHAPTER 3: PESTAL Analysis
Political Environment
Political environment playing a very pivotal role in functioning of business operation, and in Bhutan where the
political system always has a upper hand in overall look in all kind of sectors. The RGoB recognizes
telecommunications and broadband as important contributors to the socioeconomic development of the country.
Bhutan telecom Ltd and TashiCell customer care center are the only two telecommunication sector and
its center is located in various dzongkhag and with coinciding with current situation of Covid-19, a
pandemic whereby social distancing and lockdown is necessary, the government along with the
subscribers of telecom proposed a proposal for increase in data for the same price [ CITATION Bhu20 \l
2057 ].
The government decided to exempt 5% sales tax on prepaid and post-paid telecom services [ CITATION
BMo \l 2057 ].
The telecom services had to revise its data plans and tax. On June 4, 2020 Bhutan telecom Ltd increased
its data quota by over 15%[ CITATION BMo \l 2057 ] and on June 1st TashiCell reduced its data tariff(it’s
in appendix figure 4) .[ CITATION Tas \l 2057 ].
8
Economic Environment
Comprehension of Economic Environment factors of the country helps the business plan better for whichever
the pendulum swings. And after political factor the Economic factor should be taken into consideration as
inflation and deflation, currency rate, taxes, unemployment rate and GDP of nation are few things which will
determine stability and growth of the business.
One of the major economic crisis was of IC rupee crunch, The rupee crunch can best be defined through
the classic demand-supply logic—that is, the supply of rupees has not been able to keep pace with the
demand for rupees[ CITATION Med12 \l 2057 ] .The purchasing power got decreased as this issue aroused
and it affected sectors like telecommunications, financial institutions and etc...
On the recent recession of Covid 19 pandemic, this affected the economy more than IC crisis or global
financial crisis of 2008. Bhutan’s economic status decreased, people had financial shortage and data
charges were high. Due to this government took policy change for increase in data which eventually
affected telecommunications economic stability. [ CITATION Thi20 \l 2057 ]
1) Currency fluctuations.
2) Saving rates
3) Recession
4) Employment rates
9
Social Environment
Telecom has highly affected the Bhutanese society as they have improved daily lives of people. They connected
people living in remote places by constructing telecom towers at remote places. It has connected all 205 gewogs
as it provides services in 205 gewogs and improved the communication gap existing in our country. [ CITATION
Bhu201 \l 2057 ]
Their new revised plans for data are also favorable as people get more data now than they did before as
people complained about the data exhausting very fast.[ CITATION Placeholder1 \l 2057 ](the revised data
plans are stated in figure2).
Telecom provides online paying system like B-wallet for Bhutan Telecom and E-teeru for Tashi Cell
making transactions of money easier and safer for the service users.
Telecoms in our country provide fast customer service helping its customer solve their confusion and
problems.
Telecoms have made availability of mobile phones in our country easy during this pandemic situation as
import of products is getting harder. Bhutan telecom supplies vivo phones and Tashicell supplies
Samsung phones in our country and they also gives free data and talktime to people who buys from
them.
Though telecoms in our country are trying to provide high speed network, they are still lacking and
needs to work on it. As stated by Mr. of B-Mobile “we soon are planning on bringing 5G network into
the country and we are preparing all the raw material needed for it so that our customer enjoy much
faster network speed.”
Compared to Tashi Cell, people prefer B-Mobile as it provides more data(revised data plan is stated in
figure) and the internet speed is 1800 MHz whereas Tashi Cell is 700MHz[ CITATION Fan18 \l 2057 ]
10
Technological Environment
The fast alter in innovations could be a major challenges confronted by Bhutan Telecom and TashiCell. In spite
of the fact that this circumstance calls for noteworthy and occasional unused speculations, the Return on
Venture is regularly low or moderate at times since indeed when they bring modern innovations on a convenient
premise, they are stood up to with the challenge of the biological system being not prepared to grasp such a
innovation[ CITATION Son17 \l 1033 ]. But both the telecoms are trying to give their best services to the customer
as follows:
Bhutan Telecom Limited
Recently they have come with an app called B-Ngul which can be used by the B-mobile user to carry out
money transaction even without having a bank account[ CITATION www206 \l 1033 ].
This year due to the lock down mobile data traffic have increased by 20 percent and 9 percent for 4G
and 3G networks respectively, so in order to overcome this technology crises BTL is expending the
capacities of individual 4G and 3G tower where there is technically feasible[ CITATION Chh20 \l 1033 ].
Now every Dzongkhag and almost every Gewog have BTL network tower
Tashi Cell Telecom Limited
This year they have launched a new app called eTeeru, which allows the Tashicell user to send and
receive money remittance as well as pay merchants for goods and services without a need to have a bank
account[ CITATION www207 \l 1033 ].
Same like BTL Tashicell has also faced mobile data traffic which have increased by 25-30 percent since
lockdown but unlike BTL Tashicell 4G network across the country are underutilized and have the
capacity to cater to the increasing network traffic[ CITATION Chh20 \l 1033 ].
Same like BTL Tashicell also have network tower all over the 20 Dzongkhag.
Both the telecoms are planning to provide their customer with better network, 5G in the near future.
11
CHAPTER 4.Result and Finding
To get information on our mini project, we framed set of question for the data collection and set of question for
interview. We framed question and gave to the CFG students and interview question for employee of two
telecom.
Interview Question
For Tashicell
1. How does the plan and policies of telecom are affected by government intervention?
2. What are the economic problems faced by the company due to external economic recession?
3. How a new Public demand does affects the flow of business?
4. What are the drawbacks in existing equipment of the business?
For B-Mobile
1. How does plan and policies are affected by government intervention?
2. What is intervention of government?
3. What are the economic problems faced by external economic recession?
4. What are the technological problems faced in telecom?
5. How does the public demand affect the telecom service or how it is affected socially?
12
Data Collection.
Which Network do you use?
* B-mobile * Tashi cell * Both
If your both user please fill the both the question:
B-Mobile Tashi cell
Not Not
Sl.n Question satisfie Satisfied Good satisfied Satisfied Good
o d
1. How is the quality of internet net
work or net work in college
campus?
2. Are you satisfied with the
service provided?
3. Is there a benefit of using the
unlimited data package
at midnight?
4. How is the customer service
providing?
5. Are you satisfied with the offer
and bonus provided?
6. Are you satisfied with data
package provided?
Data collection answer is converted into Percentage.
B-mobile
Question 1
13
Not satisfied: 3/17*100 = 18%
Satisfied: 6/17*100 = 35%
Good: 8/17*100 = 47%
Question 2
Not satisfied: 3/17*100 = 18%
Satisfied: 9/17*100 = 53%
Good: 5/17*100 = 29%
Question 3
Not satisfied: 7/17*100 = 18%
Satisfied: 5/17*100 = 29%
Good: 5/17*100 = 29%
Question 4
Not satisfied: 2/17*100 = 12%
Satisfied: 10/17*100 = 59%
Good: 5/17*100 = 29%
Question 5
Not satisfied: 4/17*100 = 24%
Satisfied: 8/17*100 = 47%
Good: 5/17*100 = 29%
Question 6
Not satisfied: 6/17*100 = 35%
14
Satisfied: 7/17*100 = 41%
Good: 4/17*100 = 24%
Tashicell
Question 1
Not satisfied: 2/9*100 = 22%
Satisfied: 3/9*100 = 34%
Good: 4/9*100 = 44%
Question 2
Not satisfied: 2/9*100 = 22%
Satisfied: 6/9*100 = 67%
Good: 1/9*100 = 11%
Question 3
Not satisfied: 4/9*100 = 44%
Satisfied: 3/9*100 = 34%
Good: 2/9*100 = 22%
Question 4
Not satisfied: 0/9*100 = 0%
Satisfied: 7/9*100 = 78%
Good: 2/9*100 = 22%
Question 5
Not satisfied: 2/9*100 = 22%
15
Satisfied: 3/9*100 = 34%
Good: 4/9*100 = 44%
Question 6
Not satisfied: 3/9*100 = 33%
Satisfied: 3/9*100= 33%
Good: 3/9*100 = 34%
CHAPTER 5: Conclusion and Recommendation
Conclusion
16
After the completion of our mini project, we have learned about PEST (Political environment, Economic
Environment, Social Environment and Technology Environment) how it has affected the Telecom Sector. We
have set the question, collected the data, we went to do interview of employee and we have done the voice
recording of the interview.
Recommendations
From the data collection we have done says that if the data plan recharge amount coulb be cheaper.
If the organization provide more data package
The internet speed is not that fast so it would be happy if internet is speed is faster than now.
It would be fine if the bonus balance deducted at the same rate as normal balance.
17
Appendix
Figure 3: Interviewing Mr. of B-Mobile
Figure 1: Interviewing Mr. Choki Dorji of Tashicell
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Figure 2: Data Revised of Data Package of B-Mobile
18
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