[🇧🇩] Telecommunication Industry in Bangladesh

[Saif]

Source : https://www.thedailystar.net/business/news/telecom-sectors-revenue-cross-5b-2023-1840516

Telecom sector’s revenue to cross $5b by 2023​

USAID report says

The telecommunication industry’s revenue will grow by 34 percent in the next five years to $5.08 billion from $3.8 billion at present, on the back of expanding user base and wide range of services, said the USAID in a new study.

“The sector is quite large in size and has a crucial contribution to achieving the goal of making Bangladesh a middle-income country,” said the report of the United States Agency for International Development (USAID) published recently.

The industry employs about 7.60 lakh people directly, of which 92.5 percent are unskilled and 7 percent are women, the Comprehensive Private Sector Assessment report said.

The job growth rate in the sector will be 9 percent from 2016 to 2020.

The USAID Bangladesh has listed 16 emerging sectors in the study which could contribute a lot to the country’s economic development, beyond that facilitated by the readymade garment sector. Telecommunication is one of them.

“The mobile telecom service in Bangladesh is very promising as the operators are providing standard services with extensive facilities to customers,” said M Farhad, secretary general of the Association of Mobile Telecom Operators of Bangladesh (AMTOB).

The report said the country is undergoing transformation on social and economic fronts. Rapid changes have been observed in the lifestyle of the population.

Connectivity has been an integral part of modern-day life, thus accelerating the growth in mobile communication and internet use.

The use of social media platforms such as Facebook, WhatsApp, Viber and video-streaming sites like YouTube have become part of everyday life for all classes of people, mostly young and middle-aged groups.

The use of social media is growing every day, resulting in more and more consumption of internet data. Steady population growth and increase in purchasing power will continue to drive the telecom sector growth, the report added.

In 2016-17, the telecommunications sector accounted for 6.98 percent, or $29.6 billion, of the economy. The contribution of the sector is highly dominated by mobile operators with a direct impact of 58 percent, followed by distributors and retailers (25 percent), infrastructure providers (12 percent), and the handset industry, content applications and other services providers (5 percent).

Shahed Alam, chief corporate and regulatory officer of Robi, said the country has made tremendous progress towards implementing the Digital Bangladesh vision by 2021.

He said with Robi, mobile operators have created the platform for the digital economy to take off in the country.

“As part of that we are already in the process of transforming ourselves into a digital company by diversifying our product and service portfolio through digital innovation. This transformational journey is helping us get integrated with all elements of the country’s rich and varied socio-economic fabric.”

“Therefore, the telecom sector is becoming the key enabler for the country to achieve the targets set in the Sustainable Development Goals.”

The report found that the total number of smartphone users was 48 million in 2017 and it will go up by threefold to 138 million in 2025.

“As the number of smartphones will grow, the mobile broadband connection will grow accordingly.”

The report said the telecom sector has experienced sluggish growth in the face of rapid digital disruption and an unfavourable regulatory regime.

It listed the challenges facing the sector. They include rising use of communication applications which are gradually eating up the core revenue stream; higher corporate tax; higher customer acquisition price; the lowest return; and low investment for network upgradation and maintenance.

It recommended supporting internet-based startups that have cross-cutting impacts on industries such as telemedicine and ridesharing as well as introducing IT-enabled working space to support entrepreneurs, freelancers, and crowdsourcing in rural areas.

AMTOB’s Farhad said though the market is growing rapidly, the industry is suffering a lot due to over-regulation, regulatory unpredictability, and a weak telecom ecosystem.

“Super high taxation and the high price of spectrum are also impacting the industry. Given the scenario, it will be very challenging to roll out 5G service and implement Digital Bangladesh endeavour within the stipulated time.”

“We hope that the government and the regulator will understand the reality and take appropriate actions to overcome the challenges.”

Alam of Robi said the regulator’s traditional command and control mindset is failing to see beyond the immediate concerns of revenue collection.

“If this mindset persists, the country will only slow down its progress towards the creation of a full-fledged digital economy.”

The USAID report called for an initiative, in collaboration with small internet service providers, to provide last-mile services.

At the end of fiscal 2017, there were 85 million unique subscribers and it will be 107 million in 2025, making Bangladesh the fifth largest mobile market in the Asia Pacific and the ninth largest market in the world in terms of unique subscribers.

Active mobile connections will reach 190 million at the end of 2025 and the number of 4G users will be 41 percent, the USAID report said, referring to the GSMA, a trade body that represents the interests of mobile network operators worldwide.

 

[Saif]

Current economic situation challenging for telcos

The current economic situation has emerged as one of the main challenges for the telecom sector of Bangladesh as sustained high inflation could hinder the purchase of telecom services, according to a top executive of a multinational mobile phone company.

www.thedailystar.net

Current economic situation challenging for telcos​

Says Vivek Sood, group CEO of Axiata

The current economic situation has emerged as one of the main challenges for the telecom sector of Bangladesh as sustained high inflation could hinder the purchase of telecom services, according to a top executive of a multinational mobile phone company.

"The biggest concern for me is the country's overall macroeconomic environment, including forex availability and inflation, which is affecting operators like Robi," said Vivek Sood, group CEO of Axiata Group Berhad.

"When people can't afford services, they perceive them as expensive, leading to reduced consumption," he added in a recent interview with The Daily Star.

The Malaysia-based Axiata has a controlling stake in Robi Axiata, which is the second-largest mobile network operator in Bangladesh.

"The exchange rate of taka is currently experiencing depreciation, and forex availability has also become a challenge," he said.

"But so far, our management has been commendable in handling letters of credit and ensuring timely payments. However, this situation is not sustainable for long-term prospects," Sood added.

He said the availability of US dollars and the associated exchange rate pose major concerns for Axiata's operations in the country.

This is because despite Robi's strong performance, Axiata's US dollar earnings from the company are being adversely affected by the exchange rate.

"I believe this is an area where a concerted effort from banks, the central bank, and regulatory bodies is crucial. Otherwise, it will adversely impact our long-term ability to invest in Bangladesh," he added.

However, he reiterated Axiata's rock-solid commitment to Robi in regards to managing the US dollar shortage.

"As far as Axiata is concerned, we will provide the necessary support to Robi when required in case of operational difficulties," said Sood, who also served Grameenphone as CEO.

He suggested that the telecom regulator or government should assess which industries are driving economic growth or facing challenges during these difficult times.

"By doing so, the government could implement the right kind of taxation that would facilitate our continued investment in the business," he said.

Sood also said Bangladesh stands out as one of the most robust markets among all emerging and frontier markets.

Axiata serves a customer base of 176 million across the nine markets in which it operates, with 56 million of these customers located in Bangladesh.

As such, Sood spoke with exuberance regarding the prospects of Bangladesh's market.

For Axiata, Bangladesh provides a substantial customer share, and the consistent GDP growth of the country, hovering around 6-7 percent, presents ample opportunities.

"With a very young population, approximately half of which is aged between 18 and 55, there is a strong demand for digital content and services, making Bangladesh an attractive market," he said.

Besides, studies indicate that Bangladesh is likely to maintain its growth, offering significant opportunities in digital services and ventures beyond mere connectivity.

However, there are also challenges to be considered.

"While we have achieved significant revenue growth, translating it into profit has always been a struggle in this market. Consequently, obtaining a return on our investment is a challenge," Sood said.

"Having said that, we are a long-time player and will continue to invest in this market to deliver the vision of Smart Bangladesh," he added.

From Axiata's perspective, Robi contributes significantly to its financials, accounting for one-fifth of its revenue and one-third of its customer base.

Robi is a company that has experienced growth, especially with the implementation of 4G services that commenced in 2018.

"This has had an incredible impact," he said.

"However, the challenge, as I mentioned, is multifaceted. Firstly, this market demands substantial investment, primarily in terms of capital expenditure to fuel growth," he added.

A key reason for this is the country's extremely low average revenue per user (ARPU).

Axiata provides services with an ARPU of $1.3 in Bangladesh, whereas it receives around $4 or $4.5 per user in other markets.

Secondly, the existing tax regime is not very favourable.

For instance, the imposition of a minimum turnover tax is counterproductive for investment as it does not consider the profits earned but is based on revenue.

Moreover, the tax rates are higher in Bangladesh than any other market where Axiata operates.

"I believe that by closely collaborating with the government and proposing solutions, we can make this market more attractive for foreign investment, unlocking significant opportunities," Sood said.

He also spoke about the country's decision on entering the 5G era.

According to him, the challenge with 5G is the lack of well-defined use cases and a slow evaluation of its practical applications.

He said Bangladesh represents a market where there is substantial room for the development of 4G as data consumption lags behind international standards.

In this context, it is important to emphasise that 5G should not lead to the proliferation of multiple, separate networks, as was the case with 4G.

Additionally, spectrum pricing should be transparent and well-defined.

But in a market like Bangladesh, it might be more prudent for mobile operators to consolidate networks for greater efficiency before a full transition to 5G.

Successful 5G implementation requires extensive infrastructure, including fibre networks for backbones and tower connectivity.

However, the current licensing framework restricts significant fibre investments, which has been a challenge even for 4G operations.

Device availability and affordability also pose concerns, especially given the relatively high device prices in the 5G market, exacerbated by a slowdown in the Chinese market, Sood added.

With this backdrop, he opined that the government should strike a balance between encouraging 5G adoption and ensuring affordable devices for the people.

In his perspective, regulatory bodies should first focus on readily available services that could be potentially developed further in the 4G domain.

Second, a comprehensive policy framework should be established that encompasses infrastructure development, fibre optics deployment, device availability, spectrum pricing, and the prevention of multiple network constructions, which can significantly drive up implementation costs.

Asked about the ability of mobile operators to lay fibre in countries where Axiata operates, Sood said all countries other than Bangladesh grant permission in this regard.

"In Bangladesh, operators are not allowed to lay fibre, creating a significant bottleneck in building a robust network backbone," he said.

Sood highlighted Robi's remarkable achievement in the second quarter of 2023, when it registered the highest revenue growth among all operators in the Asia Pacific region.

"19 percent growth is an exceptional performance that can be attributed to a comprehensive strategy executed by the management team," he said.

This strategy involved a recent spectrum rollout, improvements in the voice network, excellence in distribution, strategic brand positioning of Airtel in Robi's strongholds like Cumilla and Chattogram, efficient investment monetisation, and an increase in data consumption.

"The focus now shifts to ensuring that this impressive growth performance translates into improved profitability," Sood added.

 

[Saif]

China new year holiday spending surges past pre-pandemic levels

Domestic spending on tourism came in at 632.7 billion yuan ($87.9 billion), up 7.7 percent from 2019

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BTRC allows two more firms to make handsets locally​

View attachment 2978
Photo: BTRC

The telecom regulator of Bangladesh recently permitted two more local companies to manufacture and assemble mobile handsets, with the move coming amid a downturn in overall sales and production.

And with the addition of these two -- Salextra Limited and Halima Mobile Industries -- there are now 17 mobile handset makers in the country.

However, the Cumilla-based Halima Mobile Industries, an arm of Halima Group, is yet to begin production due to difficulties in opening letters of credit.

On the other hand, Salextra Limited is already churning out Nokia-branded smartphones and feature phones at its Gazipur unit.

In 2021, Vibrant Software (BD) Ltd, a joint venture of the UK's Vibrant Software and Bangladesh's Union Group, became the first to get approval for assembling Nokia devices and set up a factory to this end.

And using its arm Cellular Mobile (Pte) Limited (CMPL), Union Group was the first to import Nokia devices to the country in 1996.

However, the company's journey in local manufacturing of Nokia devices came to an end last year due to a dispute between the partnering companies.

Shakib Arafat, managing director at Salextra, said they are a local tech-device manufacturing startup.

"We recently received a license from the BTRC and partnered with HMD Global. We are now a manufacturer and distributor of Nokia-branded phones in Bangladesh," he added.

HMD Global, a company set up by former executives of Nokia and Microsoft, secured a licence for the marketing and manufacturing of Nokia in 2016.

"At our 54,000 square feet plant, we are now assembling Nokia phones and will go for manufacturing soon," Arafat said.

He also said Salextra was launched in 2020 as a startup with only 5 employees and the number has since risen to nearly 500.

Apart from its partnership with Nokia, the company also produces smartwatches, neckband headphones, earbuds and other gadgets.

"We have the capacity to produce 3 lakh feature phones and smartphones on six production lines. A total of 370 people are employed by our mobile operations, with 40 percent being women," he added.

Salextra has already sold about 1.7 lakh Nokia handsets in the local market over the past month.

Meanwhile, Halima Group, which produces mobile accessories such as chargers, batteries, power banks and feature phones for other vendors, will now make feature phones of their own brand.

With the approval, the company will focus on mainly producing feature phones and plans to eventually produce smartphones too.

"We are planning to design a smartphone but we need more time for that," said Ezaz Hossain Khan Joy, assistant general manager for mobile operations of Halima Mobile Industries.

The company now employs about 130 people at its plant, which has three assembly lines with the capacity of producing 7,000 mobile phones each day.

"About 90 percent of the employees are women," Joy added.

However, production has yet to start as the unit is suffering from raw material shortages due to difficulties in opening letters of credit.

"It will take some time to bring the materials," Joy said.

The difficulty in opening letters of credit has been prevalent for mobile manufactures over the past year, impacting the entire supply chain, according to industry people.

Besides, local handset production dropped in 2023, marking its first decline since domestic production began in 2017, owing to a rise in the value of the US dollar alongside taxes and lower sales amid erosion of peoples' purchasing power.

Domestic firms produced 2.33 crore mobile phones last year, down 26.35 percent year-on-year, according to the Bangladesh Telecommunication Regulatory Commission (BTRC).

Consumer spending has also been tightened significantly owing to persistently higher inflation for the past two years while the expanding grey market poses another threat to the industry.

The production of handsets in Bangladesh made impressive strides in recent years, aided by huge tax benefits unveiled by the government in fiscal year 2017-18.

In the latter half of 2017, when Bangladesh allowed local manufacturing by offering a huge amount of tax benefits, only 40,000 cellphones were produced by local firm Walton.

But things started to accelerate the following year as local entities engaged in deals with top global brands, including Samsung, Tecno and Symphony, to set up manufacturing facilities in Bangladesh.

A total of 15 plants have so far been established in the country, producing 10.35 crore handsets as of 2022, according to the BTRC, which provides manufacturing permits.​

 

[Saif]

Teletalk launches eSIM

Teletalk, Bangladesh's state-owned mobile operator, has officially entered the era of eSIM technology, marking a new era in digital connectivity for the state-owned operator.

www.thedailystar.net

Teletalk launches eSIM​

Teltalk enters the era of eSIMs.

Teletalk, Bangladesh's state-owned mobile operator, has officially entered the era of eSIM technology, marking a new era in digital connectivity for the state-owned operator. The inauguration, led by Zunaid Ahmed Palak, State Minister for Post, Telecommunication and Information Technology, took place at the ICT Tower in Agargaon, Dhaka, on Martyr's Day, February 21.

The introduction of eSIM by Teletalk follows the steps taken by private operators Grameenphone, Robi, and Banglalink. Grameenphone was the first to launch eSIM in March 2022, with the other operators soon following suit.

An eSIM, or embedded SIM, represents a departure from traditional SIM card technology. Unlike physical SIM cards that require manual insertion into devices, eSIMs are built directly into handsets, allowing for seamless network connection without the need for physical swapping of SIM cards.

Industry experts predict a substantial increase in eSIM usage globally, with estimates suggesting that by 2025, the number of eSIM connections will rise to 3.4 billion. This trend underscores the growing shift towards more integrated and flexible mobile telecommunications solutions.​

 

[Saif]

eSIM in Bangladesh: Here's everything you need to know

Recently, eSIMs have been making waves as the next step in mobile technology. What is it, and how can we use it in Bangladesh? Here are all the important details you need to know about eSIM.

www.thedailystar.net

eSIM in Bangladesh: Here's everything you need to know​

Recently, eSIMs have been making waves as the next step in mobile technology. What is it, and how can we use it in Bangladesh? Below are all the important details you need to know about eSIM in Bangladesh.
​

What is eSIM?​

Embedded-SIM, or eSIM, is a SIM card that can be electronically programmed into a mobile phone without the need for manual insertion. It works just like a regular SIM but does not require a physical card, and only works on devices with pre-installed eSIM support.
​

Can you use eSIM in Bangladesh?​

Grameenphone has officially launched eSIM service in Bangladesh on 1 March 2022.

You can also use eSIM in Bangladesh using international operators. There are data packages and plans available on the internet which will allow Bangladeshis to gain access to eSIM functionality.
​

If I use eSIM, will a new mobile number be assigned to me?​

That depends solely on the operator you plan on using. Some international operators will assign a brand new phone number to be used with the eSIM, but some will not.
​

Can I make calls using eSIM?​

If you use an international operator to use eSIM in Bangladesh, you can only use mobile data.
​

Is eSIM service costly?​

Because eSIM uses international roaming services, which can be through any Bangladeshi operator, the cost for the mobile data will be quite costly. The charge incurs from both the Bangladeshi operator as well as the international operator providing the eSIM support, hence the added cost.
​

Can my phone run eSIM?​

Very few devices currently have eSIM support, and they need to be carrier-enabled for the eSIM to work.
Apple devices such as iPhone XR, iPhone 11 Pro, iPhone 12 and 13 have built-in eSIM support. Versions of Samsung Galaxy S20, S21, Note 20 and Galaxy Fold, as well as Google Pixel 3, 3a, 4, 4a, 5, 5a and 6 Pro also support eSIM.​

 

[Saif]

Summit acquires 2,012 towers from Banglalink

Summit Towers Limited, a subsidiary of Summit Communications Group, has announced acquisition of 2,012 towers from Banglalink Digital Communications Limited, said a press release. The...

www.newagebd.net

Summit acquires 2,012 towers from Banglalink​

Business Desk | Published: 23:17, Feb 20,2024

Summit Towers Limited, a subsidiary of Summit Communications Group, has announced acquisition of 2,012 towers from Banglalink Digital Communications Limited, said a press release.

The acquisition was completed with transfer of Tk 1,100 crore to Banglalink. To celebrate this occasion, Summit Communications Group hosted an event titled ‘Celebrating Synergy’ at the Ruposhi Bangla grand ballroom of Hotel Intercontinental in Dhaka on Monday.

State minister of posts, telecommunications and information technology Zunaid Ahmed Palak was present as chief guest at the event. ICT division secretary Md Shamsul Arefin and Bangladesh Telecommunication Regulatory Commission chairman Md Mohiuddin Ahmed were present as special guests and Summit Group of Companies founder chairman Muhammed Aziz Khan was present as an honoured guest. Summit Communications chairman Muhammad Farid Khan, managing director and chief executive officer Md Arif Al Islam and executive director Fadiah Khan, among others, were present at the ceremony.

VEON group CEO Kaan Terzioglu and Banglalink CEO Erik Aas were also present.

Zunaid Ahmed Palak said, ‘I would like to appreciate the acquisition process for acquiring these 2,012 towers. With this huge number of towers, Summit Communications will be able to provide much more quality services to the mobile network operators.’

Kaan Terzioglu said, ‘This collaboration enables us to leverage our resources efficiently to create the country’s most diversified and innovative digital portfolio. With innovation, collaboration, and a shared vision, we can unlock the full potential of Bangladesh’s digital future.’​

 

[Saif]

BTRC allows mobile operators to offer wireless broadband

The internet regulator has allowed telecom operators in Bangladesh to provide fixed wireless access (FWA), enabling their users to get wifi connections without cables.

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BTRC allows mobile operators to offer wireless broadband​

The internet regulator has allowed telecom operators in Bangladesh to provide fixed wireless access (FWA), enabling their users to get wifi connections without cables.

The move will likely transform the broadband internet business in the country, creating competition among current broadband internet service providers (ISPs) and telecom operators as users will have more options.

With the new 5G guidelines coming into force, operators with FWA service approval will be able to offer high-speed internet access through wireless networks to fixed locations like homes and businesses.

It will also extend broadband coverage efficiently, especially in areas with limited wired infrastructure.

FWA generally leverages the high-speed, low-latency capabilities of 5G networks to deliver broadband internet access wirelessly.

However, as the country's telecom operators are still reluctant to launch 5G commercially, the expansion of the service will take time, according to industry people.

In Bangladesh, telecom operators provide mobile internet services while ISP licensees provide broadband services.

Generally, mobile operators deliver mobile internet services through cellular networks, utilising technologies such as 3G, 4G and 5G. These networks enable wireless data transmission to smartphones and tablets, offering flexibility and mobility.

Broadband operators provide broadband internet via fixed-line connections like cables or fibre optics, ensuring stable and high-speed connectivity with greater bandwidth and reliability compared to mobile networks.

But now, mobile network operators will be able to offer similar services. Customers will just require an outdoor antenna for signal reception, an indoor modem or router, and a subscription plan from the operator.

"It is a good initiative to expand internet access. It will help realise the government's Smart Bangladesh vision as internet is the most important tool for it," said TIM Nurul Kabir, a telecom expert.

There are about 13.13 crore internet subscribers in Bangladesh, of which 11.84 crore are mobile internet subscribers. The rest 1.28 crore are broadband users, according to data of the Bangladesh Telecommunication Regulatory Commission (BTRC).

Shahed Alam, chief corporate and regulatory officer of Robi Axiata Ltd, welcomed the move.

However, he said, considering the complexities in the fibre ecosystem in Bangladesh, there are certain challenges that need to be addressed for providing such services.

"We also need to keep in mind that access to fibre and dense network sites is a precondition for a wider 5G FWA service. We are hopeful of introducing FWA services after resolving the complexities."

Hossain Sadat, a senior director at Grameenphone, said they appreciate the time-befitting initiative of the BTRC.

"We are currently assessing the guidelines and will determine our next course of action upon receiving the formal licence."

However, broadband service providers are alarmed by the new move, fearing a potential downturn in their business in the future.

Md Emdadul Hoque, president of the Internet Service Provider Association of Bangladesh, said thousands of young people are employed by broadband internet businesses.

"The government should protect these small entrepreneurs," he said, urging the government to backtrack from the decision.

Currently, there are more than 3,000 ISPs in Bangladesh.

Abu Saeed Khan, a senior policy fellow at LIRNEasia, a Colombo-based think-tank, said FWA is a universal tool for 5G and an integral part of it.

"It is the only way to achieve mass penetration of broadband across the country."

He thinks ISPs should be allowed to provide various digital services, including video-streaming, and the government must not dictate their prices.

Besides, ISPs and mobile operators should be permitted to purchase wholesale internet, eliminating barriers created by International Internet Gateway (IIG) and Nationwide Telecommunication Transmission Network (NTTN) services, Khan added.

In Bangladesh, IIG manages international internet connectivity while NTTNs facilitate nationwide fibre optic infrastructure.

An official of the BTRC said the regulator allowed mobile operators to launch the FWA service, keeping the future rollout of 5G in mind.

FWA services have gained traction in neighbouring countries in recent times.

In September last year, Reliance Jio launched its FWA device -- Jio AirFiber -- across eight cities in India, according to the Economic Times.

The move came just over a month after rival Bharti Airtel introduced its own device in two cities as both companies are making their initial attempts at monetising 5G services.

5G is developing rapidly worldwide, with more than 260 networks and more than 1.2 billion users.

5G FWA has become a mainstream service for half of 5G operators and amassed more than 10 million users, said Mobile World Live, the official news portal of GSMA, quoting Huawei Vice-President Yang Tao in September.
​

 

[Saif]

Burnt with high tax, mobile operators become unable to pay good dividends: Robi chief

Telecommunication industry is highly capital intensive, on top of which huge tax burden remains a barrier to ensuring a good return to shareholders, said the head of Robi Axiata. In an interview with The FE, Robi Chief Executive Officer Rajeev Sethi said mobile network operators were required to i

thefinancialexpress.com.bd

Burnt with high tax, mobile operators become unable to pay good dividends: Robi chief​

ISMAIL HOSSAIN

Published :​

Feb 27, 2024 09:52

Updated :​

Feb 27, 2024 09:52

​

Robi CEO Rajeev Sethi in an interview with The FE — FE Photo

Telecommunication industry is highly capital intensive, on top of which huge tax burden remains a barrier to ensuring a good return to shareholders, said the head of Robi Axiata.


In an interview with The FE, Robi Chief Executive Officer Rajeev Sethi said mobile network operators were required to increase investment every year from the previous year to stay competitive in the market.

"To take care of that capital expenditure, and to provide a decent return to the shareholders, we are not where we should be.

"You'd be surprised to know that for every Taka a customer pays, roughly around 55 -56 per cent goes to the government."

Against this backdrop, the smaller a player is in the industry the greater negative impact it endures.

Mr Sethi, who has been leading Robi since 2022, earlier worked as managing director and CEO of Grameenphone in Bangladesh. He has extensive experience working in the telecom sector in India and Myanmar.

He said Robi was confident about future profitability, which was why it had decided to pay investors more in cash dividends for 2023 than the profit it earned in the year.

The operator expects a significant profit growth over the span of next three to four years, added Mr Sethi.

Robi recorded an annual profit growth of 74.3 per cent year-on-year to reach earnings of Tk 0.61 per share or Tk 3.21 billion in 2023.

The telecom operator recommended 10 per cent cash dividends on its face value of Tk 10 per share for the year, exceeding what it paid -- 7 per cent-- for 2022. It provided 5 per cent cash dividends for 2021.

"Our dividend policy says that we should be giving an increased return as we move forward."

Bangladesh is a "pretty interesting place" to do business for telecom service providers for its geographical location, population density, and the size of young population, said the Robi chief.

Three private and one state-owned operators are good to create healthy market competition and for profitability and sustainability.

"If you have too many players, then nobody makes enough money to be able to invest in the networks and whatever is required to offer quality services to customers."

Mr Sethi said the regulator had been playing its due role but there needed some reforms.

According to him, the telecom industry is too fragmented; it has been broken down into small components to be navigated by different players.

"We need to have not only very good radio equipment at the tower, but also the ability to carry the traffic back to our data centres, but the link is missing."

The dependency on the third party impacts quality, lamented Mr Sethi.

According to him, telecom operators should be allowed to build infrastructure, especially of optical fiber to offer quality services.

Mobile network operators used to build their own network of optical fiber before Nationwide Telecommunications Transmission Network (NTTN) came into being around 15 years back.

The Bangladesh Telecommunication Regulatory Commission issued licences for developing, building, operating, and maintaining optical fiber network all over the country, known as NTTN, to prevent duplication of network, reduce wastage of national resources, and establish a common and affordable national telecommunication infrastructure for operators, according to NTTN licensing guidelines. Currently, there are three NTTN operators -- Summit Communications Limited, Fiber @ Home Ltd, and Bahon Limited.

Mr Sethi also spoke of SMP (significant market player) restrictions, which, according to him, have not been enforced fully.

"It's not about a player A or a B or a C, this [putting restrictions] is the right thing to do for the industry because this industry will require multiple strong players."

If the operators are unable to compete, then mobile network users will be the sufferers. That will ultimately come in the way of fulfilling the dream of smart Bangladesh.

"So, we have to look at the SMP regulations in that light."

Regarding complaints about service quality, Mr Sethi said telecommunication services are better in Bangladesh than in the neighbouring country India.

On deployment of 5G network, the Robi chief said he did not see the necessity of the network standards to be elevated to that level yet.

He said 5G network should be put in place "once the traditional 4G spectrum has been completely utilized and there's a demand beyond that".

"For a developing country like Bangladesh, we cannot waste any resources," said Mr Sethi, adding that Robi's $100 million investment in 5G network was a wrong move.

About subsidiary companies formed under Robi, he said it was permissible. "We'll create more value for customers."​

 

[Saif]

https://www.thedailystar.net/tech-startup/news/symphony-leads-xiaomi-slips-study-outlines-market-share-smartphones-bangladesh-3554931

Symphony leads, Xiaomi slips: Study outlines market share of smartphones in Bangladesh​

2023 witnessed a decline in the demand for 5G smartphones, with their share in total shipments dropping to 2% from 10% in 2022.

The Bangladesh smartphone market witnessed notable changes in its competitive landscape from 2022 to 2023, as detailed by a recent Counterpoint study. The year 2023 saw changes in consumer preferences and market shifts that significantly impacted brand standings.

Xiaomi observed a decrease in market share from 17.5% to 11.3%. Conversely, itel's market share ascended from 6.2% to 11.8%. Infinix and Tecno, both enjoyed growth in their market shares, with Infinix moving from 9.3% to 13.3% and Tecno from 5.9% to 15.8%.

According to Counterpoint, Vivo also saw an increase in market share from 11.4% to 16.1%, solidifying its market presence. The collective share of smaller brands categorised as 'Others' diminished from 49.7% to 31.6%, indicating a market consolidation favouring leading brands. Symphony maintained its leadership in the handset market with an 18% share, outlines the study.

2023 witnessed a decline in the demand for 5G smartphones, with their share in total shipments dropping to 2% from 10% in 2022, as 5G has not yet become a compelling feature for the majority of consumers. Despite this, Vivo led Bangladesh's 5G smartphone shipments for the second consecutive year, followed by Realme and Xiaomi.

The overall mobile handset market in Bangladesh declined by 25% year-on-year in 2023. The feature phone market also saw a 24% decline due to an accelerated transition to smartphones. Despite a flat smartphone share in overall handset shipments, Symphony continued to dominate the feature phone segment with a 39% share.

The study further details that consumer demand for smartphones was initially weak in 2023, attributed to higher inflation rates and currency depreciation. This resulted in the lowest quarterly shipments in the first quarter of 2023 in the past three years. Market consolidation occurred with the exit of over 10 brands, elevating the top five brands' share to 68% from 63% in 2022. These brands concentrated on the entry and affordable segments, responding to the predominant consumer demand.​

 

[Saif]

Number of mobile internet connections keeps dropping

The number of active mobile internet connections in the country decreased further by 0.21 lakh to 11.63 crore in January 2024 compared...

www.newagebd.net

Number of mobile internet connections keeps dropping​

Taufiq Hossain Mobin | Published: 23:00, Mar 01,2024

A file photo shows a man using internet on his mobile phone in the capital Dhaka. — New Age photo

The number of active mobile internet connections in the country decreased further by 0.21 lakh to 11.63 crore in January 2024 compared with that of 11.84 crore in December 2023, according to the latest data published by the Bangladesh Telecommunication Regulatory Commission.

The number of active mobile internet connections has gradually decreased from August 2023 to January 2024.

The number of active mobile users in the country was 11.97 crore in August 2023, which also gradually declined, reaching 11.63 crore by January this year.

According to the BTRC data, the number of broadband internet connections remained the same in January compared with that in the previous month.

The number of broadband connections is currently standing at 1.28 crore, after increasing by 0.04 crore in December last year. Before December, the broadband connections maintained a steady figure of 1.24 crore from September to November 2023.

According to the BTRC data, the number of active mobile connections in the country decreased by 4 lakh in January compared with that in the previous month.

At present, the number of active mobile connections in the country is 19.04 crore, whereas in December the figure was 19.08 crore. According to the BTRC data, Grameenphone and Teletalk saw increase in their connections in January, while Robi and Banglalink lost its customers.

In January, Robi Axiata lost a total of 4 lakh active mobile connections, reaching 5.82 crore from 5.86 crore in December.

Banglalink also experienced a slight fall, losing 40,000 of its active connections, bringing the number down to 4.34 crore in January.

Grameenphone recorded a slight rise, according to the BTRC data, by gaining 70,000 connections in January.

The state-owned telecom operator Teletalk also experienced a slight growth with its active connections rising to 64.8 lakh in January compared with that of 64.6 lakh in December 2023.​

 

[Saif]

Grameenphone falls 9% in early trade as floor vanishes

Shares of Grameenphone declined around 9 percent within one hour of trade after the regulator lifted price restrictions on Bangladesh’s largest mobile telecom operator

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Grameenphone falls 9% in early trade as floor vanishes​

Shares of Grameenphone declined around 9 percent within one hour of trade after the regulator lifted price restrictions on Bangladesh's largest mobile telecom operator.

Grameenphone fell 8.73 percent to Tk 261 on the Dhaka Stock Exchange (DSE) until 11 am today. The turnover of the stock was Tk 18 crore.​

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Grameenphone is the latest listed company to see the floor prices go.

The Bangladesh Securities and Exchange Commission introduced floor prices in mid-2022 to curb market swings. It lifted the price restrictions over the last several months amid criticism and a lack of dynamism in the market.

It kept the floor prices on shares of Grameenphone, the most valued company in the stock market, along with some other securities.

The BSEC removed the floor price on Grameenphone after the record date which was on February 29.

Until 11.40 am, DSEX, the benchmark index at the DSE, lost 20.42 points or 0.32 percent.​

 

[Saif]

Mobile operators seek tax relief to boost digitisation

Representatives of the Association of Mobile Telecom Operators of Bangladesh (AMTOB) met with the National Board of Revenue (NBR) on Tuesday to discuss tax policies impacting the telecommunications sector. AMTOB presented 21 proposals aimed at reducing the tax burden on mobile operators, arguing t

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Mobile operators seek tax relief to boost digitisation​

UNB

Published :​

Mar 05, 2024 20:09

Updated :​

Mar 05, 2024 20:09

Representatives of the Association of Mobile Telecom Operators of Bangladesh (AMTOB) met with the National Board of Revenue (NBR) on Tuesday to discuss tax policies impacting the telecommunications sector.

AMTOB presented 21 proposals aimed at reducing the tax burden on mobile operators, arguing that the current structure hinders the industry’s growth and, consequently, the country’s digitisation efforts.

“The mobile industry is the backbone of internet access in Bangladesh,” stated AMTOB Secretary General Lt Col (retd) Mohammad Zulfikar.

“The entire digitisation process relies heavily on its infrastructure. Every sector, from banking and e-commerce to education and healthcare, utilises mobile services.”

AMTOB highlighted several concerns, including:

Double Taxation: AMTOB seeks to eliminate situations where companies face double taxation due to missing paperwork from suppliers.

Tax Exemptions for Government Organisations: AMTOB proposes clarifying tax return filing requirements for government entities like Bangladesh Railway and the Election Commission.

Corporate Tax Rates: AMTOB argues that the current 40–45 per cent corporate tax rate for mobile operators is significantly higher than the 20-27.5 per cent rate for other companies. They propose bringing mobile operators under the standard tax structure.

Minimum Tax Adjustments: AMTOB suggests allowing mobile operators to adjust any unutilised minimum tax towards future tax liabilities.

VAT on SIM Cards: AMTOB proposes removing the 200 Tk VAT charged on all SIM deliveries, including e-SIMs.

VAT on Government Regulatory Organisations: AMTOB seeks clarification on VAT applicability for government regulatory bodies.

Harmonised HS Coding: AMTOB recommends consistent application of the HS coding system for telecom equipment and software to streamline import procedures.

AMTOB believes these changes will foster a more supportive environment for the mobile industry, leading to increased investment, improved network infrastructure, and ultimately, accelerated national digitization. The NBR is expected to review the proposals and respond in due course.​

 

[Saif]

GP, Robi, Teletalk receive unified licences

The annual fee for the licence was Tk 10 crore with a 15-year validity

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GP, Robi, Teletalk receive unified licences​

The annual fee for the licence was Tk 10 crore with a 15-year validity

Telecom operators Grameenphone, Robi, and Teletalk today received unified licences, which will enable them to provide all sorts of services and streamline operations.

These licences combined previous ones for 2G, 3G, and 4G, while incorporating provisions for 5G and future services.

The annual fee for the licence was set at Tk 10 crore. It will remain valid for 15 years.

The licences -- titled "Cellular Mobile Services Operator Licence" and "Radio Communications Apparatus Licence for Cellular Mobile Services" -- were handed over at an event organised by the Bangladesh Telecommunication Regulatory Commission (BTRC) at its office today.

Zunaid Ahmed Palak, state minister for telecom and ICT, handed over the licences.

BTRC Chairman Md Mohiuddin Ahmed and other senior officials were present at the event.

"We are delighted to receive the unified licence. We appreciate our regulator, BTRC, for the timely initiative of introducing a unified licencing regime. Bangladesh will enter an era of technology neutral services," Shahed Alam, chief corporate and regulatory officer of Robi Axiata Ltd, said.

"We wholeheartedly welcome this timely initiative and express our deepest gratitude to regulators, government bodies, and policymakers for their visionary efforts," Grameenphone CEO Yasir Azman said.

"Grameenphone receiving the unified licences marks the beginning of a transformative era, empowering Bangladesh's digital transformation and catalysing progress. It paves the way for us to contribute significantly to the realisation of the Smart Bangladesh vision, leveraging technology to drive economic growth and social development."

Looking at a future dominated by smart devices, AI and connected technologies, we will be able to create an ecosystem which will serve to make our customers' lives safer, healthier, and happier, he added.

The third largest operator, Banglalink, said it would also apply for the licences.

"We welcome the initiative of combining all the licences and issuing a unified licence. It's a timely step," said Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink.

"However, being part of our parent company, VEON, which is a NASDAQ and Euronext listed company, we need to fulfill certain corporate governance requirements before acquiring this renewed licence. Once that is done, we shall apply," he added.

The awarding of the licence came nearly two years after the 5G spectrum auction. In March 2022, the country's four mobile phone operators bought 190 megahertz (MHz) spectrum for $1.23 billion to roll out 5G wireless communication.

Carriers now have to roll out the technology within a year.

BTRC Chairman Ahmed said since the spectrum had already been allocated, this unified licencing would not complicate the provision for new services, including 5G.

He urged mobile operators to implement all the services under the unified licence as soon as possible.​

 

[Saif]

Some Teletalk customers to get access to Banglalink network from today

Some customers of Teletalk will be able to use Banglalink’s network from today as part of a ‘pre-commercial launch’ of national roaming services, bringing relief to subscribers of the state-run operator whose network is hamstrung by weak power backup.

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Some Teletalk customers to get access to Banglalink network from today​

Some customers of Teletalk will be able to use Banglalink's network from today as part of a 'pre-commercial launch' of national roaming services, bringing relief to subscribers of the state-run operator whose network is hamstrung by weak power backup.

This comes after the successful trial of national roaming services by Teletalk and Banglalink.

However, this pre-commercial launch will only be offered to select Teletalk customers, who can avail roaming service from Banglalink's network. Banglalink's customers will not get access to use Teletalk's network during this period.

Interconnection costs and network-related expenses will be covered by respective operators.

After the successful trial of national roaming services by Teletalk and Banglalink, both operators are finalising commercial agreements for a nationwide commercial launch, according to Banglalink officials.

The commercial launch of the national roaming service with agreed-upon terms will take a few months, according to sources.

During the pre-commercial launch, Banglalink will not generate revenue from designated Teletalk subscribers that use its network.

Teletalk will provide the subscriber list for national roaming services, with select subscribers getting access to voice, SMS, and internet services.

Teletalk customers will be charged by Teletalk as per their charging mechanism and they will be able to use roaming services as long as they have available balance on their account.

Erik Aas, Banglalink's CEO, earlier said Banglalink was proud to partner with Teletalk in pioneering the initiative to share telecommunication infrastructure.

"This initiative, a first of its kind in Bangladesh, reflects our commitment to the realisation of the government's vision for a Smart Bangladesh."

"When launched commercially, this will offer customers of both operators a seamless, high-quality network experience nationwide. The successful implementation of this field trial will not only enhance our services but also pave the way for future cross-industry partnerships and opportunities."

There are 5,661 base transceiver stations that facilitate access to Teletalk's network. However, of the 3,856 towers run on batteries supplied by Teletalk, 21.52 percent cannot provide more than one minute of backup.

This means customers who are under the coverage of these 830 towers cannot access the network if there is a power outage.

Similarly, about 40 percent of Teletalk's towers can no longer provide network access if electricity outages persist for more than an hour.

Recently, Banglalink doubled its network coverage, increasing its total number of towers to over 16,000.

Meanwhile, Robi Axiata has already received approval from the BTRC to run a trial for the roaming service.

An official of Robi said they had already completed preparations for the trial and were awaiting Teletalk's response before starting the trial.​

 

[Saif]

Govt drafts fresh telecom act

The new act will replace the Bangladesh Telecommunication Act, 2001.

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Govt drafts fresh telecom act​

Social media, online platforms to be brought under purview of the new law

The government has formulated the draft of a fresh telecommunications act, which would bring social media platforms, online platforms, and all internet protocol-based services under the purview of the law.

The draft of the Bangladesh Telecommunication Act, 2024, has already been shared for consultation with some entities, including the Bangladesh Telecommunication Regulatory Commission (BTRC), AMTOB (Association of Mobile Telecom Operators of Bangladesh), and Internet Service Provider Association of Bangladesh (ISPAB).

The new act will replace the Bangladesh Telecommunication Act, 2001, which was amended twice -- in 2006 and 2010.

Experts warned that bringing online-based platforms under the law would create complexities, bar new companies from growing, and obstruct innovation.

Fahim Mashroor, former president of the Bangladesh Association of Software and Information Services (BASIS), said nearly all activities and businesses operate through online platforms in today's digital landscape. This includes financial services, education, transportation, and even healthcare.

"Therefore, it's neither practical nor desirable to subject these sectors to the telecom act. Instead, they should be regulated by laws specifically tailored to their respective industries," he added.

The law also introduced punishment for the violation of the act or any regulation under the act through mobile courts in the presence of an inspector of the commission.

In its feedback, AMTOB said this provision should be removed. Considering the depth of telecom service sophistication and technicalities, applying mobile court modality of instant assessment and subsequent application is not feasible or justified, it said.

"It is just an initial draft. There will be thorough stakeholder conversations and seeking of public opinion before finalising the law," Zunaid Ahmed Palak, state minister for telecom and ICT, told The Daily Star.

"The aim of this law is to foster the application of modern technology, facilitate business opportunities, attract investment, and generate employment."

In the original telecom law enacted in 2001, a fine of Tk 10 lakh or maximum imprisonment of 10 years was set if anyone without a licence established or operated a telecommunication system in Bangladesh or outside or undertook any construction work of such systems or any construction work for providing internet services or installed or operated any apparatus for such services.

The government increased the fine for such offences to Tk 300 crore in 2010 in an amendment to the law.

The new draft also includes a Tk 300 crore fine for such violations.

Broadband internet service providers, most of them small and medium-sized businesses, demanded a different punishment.

"This punishment should not be meant for broadband service providers, whose revenues are meagre compared to those of mobile operators," Md Emdadul Hoque, president of ISPAB, said.

"The revenue of some of our village-level internet services providers could be just Tk 10 lakh. So, it's not reasonable to keep a provision that could fine them Tk 300 crore for a violation," he added.

He said the law ignored the broadband sector, including their long-standing demand for active sharing of last-mile fibre and infrastructure, adding that telecom and broadband law should be separate ones.

The AMTOB also requested the inclusion of additional provisions related to merger, demerger, acquisition, and amalgamation. It also demanded the incorporation of the Arbitration Act 2001 to resolve disputes between the BTRC and licensees.

The draft of the new law introduced a regulatory sandbox aimed at fostering innovation and technological advancement.

The commission is authorised to establish one or more regulatory sandboxes, following specified procedures and for designated durations, with the aim of promoting and streamlining innovation and technological progress within the telecommunications sector.

The law defines a sandbox as a controlled testing environment wherein new products, services, processes, and business models can be introduced without being fully subjected to the provisions of the act.

This testing occurs for a defined period and with a set number of users, with certain conditions being relaxed to facilitate experimentation and development.​