Citycell and its shortcomings

Citycell is the first mobile operator in South Asia. Very rich history and even a richer history of robbing clients whenever possible. They have failed miserably, being second last in the list of mobile operators in Bangladesh. Why?

Grameenphone
Grameenphone basically did what Banglalink is doing to Grameenphone. Cutting rates. In the mid nineties, Citycell refused to budge on rates and did it less quickly.

Lack of partnership
Singtel came a little too late in the partnership with Pacific Telecom (owned by Morshed Khan). Pacific Telecom did not have the expertise or the resources to fight a growing and experienced Telenor. Singtel's partnership was new as Singtel itself did not have CDMA framework.

Changes in market
This is the sort of thing Grameenphone is experiencing right now. Citycell struggled to the changing market as they were used to being a monopolist but suddenly finds out it was harder to cope with the growing presence of Grameenphone.

CDMA2000 1x
CDMA allows more efficient use of mobile frequencies than GSM. The reason to go with CDMA rather than GSM was a foresight that future frequencies would be more costly to acquire from the regulator. And yes the decision was right. But Grameenphone was already gobbling up more frequency than they needed at really cheap prices.

Citycell did not push the regulator, due the lack of foreign expertise/bribes/favors (yes Singtel came a little too late). Grameenphone got the lions share, but Citycell, even by using a more superiror technology did not take advantage of it. Pacific Telecom was more interested in maintaining the short-term bottom line rather than acquiring long-term customers. But this soon changed when Singtel stepped in.

Reliance Communications of India is their second largest mobile phone company. They use CDMA. Reliance went ahead to abuse the strengths of CDMA.

Lack of a Business Solutions
Grameenphone does this part very well. They push business solutions because businesses are less finicky about changing operators. (But this may soon change as Grameenphone keeps stepping on/into other businesses). Citycell did not push business solutions even with nothing to lose with their superior CDMA network.

GP even went ahead to get the Blackberry as a fashion statement. (its the most overpriced phone in the market). But Citycell just sat around with nothing.