[🇧🇩] Telecommunication Industry in Bangladesh

[Saif]

Mobile operators call for restructuring taxation

Telecom operators and experts in Bangladesh yesterday demanded restructuring taxation in the sector, arguing that the rates in place are not only limiting the sector’s growth, but also potentially hindering the implementation of “Smart Bangladesh”.

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Mobile operators call for restructuring taxation

Existing taxes in the telecom sector are limiting the sector's growth, hindering the implementation of a "Smart Bangladesh", experts say. Photo: Star/File

Telecom operators and experts in Bangladesh yesterday demanded restructuring taxation in the sector, arguing that the rates in place are not only limiting the sector's growth, but also potentially hindering the implementation of "Smart Bangladesh".

As such, they demanded lowering the corporate tax rate for listed and non-listed companies in the sector to 20 percent and 27.5 percent from 40 percent and 45 percent respectively.

Additionally, they urged for reducing the minimum turnover tax. At present, mobile network operators in the country face a minimum turnover tax of 2 per cent while other industries pay only 0.6 per cent.

Lt Col (retd) Mohammad Zulfikar, secretary general of The Association of Mobile Telecom Operators in Bangladesh (AMTOB), said a significant portion of the revenue collected from customers is allocated towards subscriber taxes and other duties.

He was speaking at a roundtable, styled "Telecom Taxation for Smart Bangladesh", jointly organised by AMTOB and the Telecom and Technology Reporters' Network Bangladesh (TRNB) at Pan Pacific Sonargaon Dhaka.

Out of every Tk 100 collected from a subscriber, telecom operators have to pay Tk 39 to the National Board of Revenue as value added tax, supplementary duty, SIM tax, customs duty, corporate taxes, etc.

Zulfikar also highlighted the challenges posed by revenue sharing, which is roughly Tk 18 out of every Tk 100, with ecosystem players such as the International Internet Gateway, International Gateway, tower companies, and so on.

Besides, another Tk 15 from every Tk 100 has to be paid for annual license fees, annual spectrum fees, and revenue sharing with Bangladesh Telecommunication Regulatory Commission (BTRC).

Operational expenses further strain financial resources, with Tk 26 of every Tk 100 collected being allocated for covering costs related to network operations, marketing, administration, human resources, depreciation and finance.

As such, only Tk 2 is left for the operator out of each Tk 100 collected from customers.

Such taxation and fee structures hinder their ability to invest in network expansion, technology upgrades and service innovation, which are essential for meeting the growing demands of consumers and the digital economy, Zulfikar said.

The telecom sector's contribution to government revenue is 5 percent, making the tax regime of the local telecom industry the most imbalanced compared to that of other countries, he added.

TIM Nurul Kabir, a telecom expert, said foreign investment in the sector is declining due to high taxation.

Questioning why the same taxation system is applied for both cigarette and telecommunication companies, he said while cigarettes negatively impact health and inflate healthcare costs, the telecom industry drives GDP growth.

He suggested that removing value added taxes on internet services could be a significant milestone for Bangladesh's development over the next three to five years.

Zunaid Ahmed Palak, the state minister for telecom and ICT, said the National Board of Revenue should be modernised to enable the telecom sector to contribute more to the country's GDP.

"Without an intelligent taxation policy, the desired growth of the telecom sector will be hindered. The telecom sector should evolve into a smart industry," he added.

Md Mohiuddin Ahmed, chairman of the BTRC, said the entire ecosystem of telecom industry should be made simpler to expedite the country's journey towards "Smart Bangladesh".

So, reviewing the taxes on telecom operators is a must, he added.

Yasir Azman, chief executive officer of Grameenphone, said telecom operators would be better positioned to contribute to the development of "Smart Bangladesh" if their tax burden is alleviated.

And in the long run, this would enable the government to collect more taxes as well, he added.

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink; Shahed Alam, chief corporate and regulatory officer at Robi Axiata; Rashed Mehedi, president of the TRNB; and Masuduzzaman Robin, general secretary, also spoke.​

 

[Saif]

Getting the price right for telecom consumers

In a price-sensitive market like Bangladesh, the price of telecom services quite often makes the headlines

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Getting the price right for telecom consumers

Illustration: Syeda Afrin Tarannum

In a price-sensitive market like Bangladesh, the price of telecom services quite often makes the headlines. Many feel that the price is too high for low-income customers to enjoy mobile connectivity and a decent digital lifestyle. Customers in particular complain about the price of internet packages. The price of telecom services in neighbouring countries are also brought up to emphasise the scale of our problem. These complaints, despite being leveled repeatedly, seldom trigger a deep dive into the cost structure of telecommunication companies (or telcos) to see how much it actually costs to run such a company in Bangladesh.

Imagine that an investor has Tk 100 to invest and has few investment options. Like any sensible investor, the incentive will be to find the option that provides the maximum return. Shareholders of mobile companies are no different. They decide on how much to invest depending on how much return these businesses can generate for them.

In Bangladesh, if a telecommunications operator receives Tk 100 recharge amount from a customer, Tk 24.95 is contributed to the government exchequer (in the form of VAT, supplementary duty, and surcharge) which leaves them with Tk 75.05 as gross revenue. Of this, Tk 4.88 is paid to the BTRC as 6.5 percent revenue sharing payment. Then, Tk 37.52, or around 50 percent of the gross revenue, is spent as operating cost. After adding up BTRC revenue sharing payments and the operating cost and then subtracting it from the gross revenue, the operator is left with Tk 32.65 as EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation).

A telco has to further account for depreciation and amortisation worth Tk 21.46 (depending on legacy payments as well as the latest investment commitments), Tk 5.64 on account of interest, foreign exchange, or other costs (subject to the nature of the capital structure), and Tk 3.48 for tax payment on the basis of two percent minimum turnover tax or 40-45 percent corporate tax, whichever is higher.

The summary of these calculations is that the investor is left with a very slim profit after tax of only Tk 2.07. So, would an investor be keen on investing their hard-earned Tk 100 on the telecom sector for Tk 2.07 profit, when they can earn a better profit margin elsewhere?

Examined closely, it's apparent that a significant part of the operating cost is related to government bodies (spectrum cost, license cost to BTRC, tax deducted at source for the NBR). Additionally, amortisation exposure is considerably higher in this industry compared to others, owing to the high cost of spectrum investment.

Therefore, it's evident that without more fiscal space for mobile operators, it is extremely difficult to drive the digital agenda under the Smart Bangladesh vision. In this regard, I would like to refer to the study titled "Review of mobile taxes and fees in Bangladesh" published by GSMA (a lobby organisation that represents the interests of mobile network operators worldwide) in April 2023. The report states that the tax contribution of the mobile sector in Bangladesh is significantly higher compared to similar markets in the region. This severely limits the capacity of the mobile industry to invest in the network. According to the report, in 2021, the mobile sector contributed five percent of the total government revenue while it represented only one percent of the economy.

The high tax burden on the mobile sector in Bangladesh is mainly driven by sector-specific taxes and fees, namely excise taxes (28 percent), regulatory fees (10 percent), and spectrum fees (four percent), which amount to 42 percent of the total tax and fee payments. General taxes represent the remaining 58 percent of all tax payments made by mobile operators to the government.

The mobile sector in Bangladesh is subject to the highest corporate tax rate for publicly traded and non-publicly traded companies (40 and 45 percent of profit), compared to the general corporate tax rate of 20 and 27.5 percent respectively. Furthermore, the mobile sector is also subject to the minimum turnover tax rate (two percent of gross receipts).

The combined sector-specific tax rate on mobile services in Bangladesh is one of the highest in the Asia Pacific region. After accounting for the effective VAT rate (17.25 percent), supplementary duty (15 percent) and surcharge (one percent), mobile consumers in Bangladesh bear a combined usage tax of 33.25 percent on mobile services. It's worth noting that India, Indonesia, Thailand, Singapore and the Philippines have no sector specific tax at all.

One may argue that if the government were to reduce consumer taxes for the use of mobile services, the revenue shortfall would be hard to manage. But a study jointly conducted by Earnst and Young and GSMA in 2018, titled "Reforming mobile sector taxation in Bangladesh", demonstrates that reduction of consumer taxes would generate higher government tax revenue and GDP for the country. The evidence presented in the report shows that the mobile sector in Bangladesh is subject to a significantly high and complex tax burden. These taxes constrain both the supply side and the demand side, potentially jeopardising progress toward digital transformation and inclusion.

By constraining the supply side with high taxes, we are constraining the ability of the industry to meet the price and quality of services demands of the consumers. On the other hand, by having high consumer taxation we are pushing up the price. This in turn is pricing out the unconnected (42 percent of the population, according to GSMA). In other words, by taxing the industry and the consumers heavily, we are in effect pursuing Smart Bangladesh vision through narrowband.

This taxation regime is the Achilles' heel of the telco cost structure. It's high time that a revision takes place so the industry players can get the price right for the consumers, to facilitate the goal of a Smart Bangladesh.

Sanjib K Ghosh is Executive Vice President & Head of Strategic Finance at Robi Axiata Limited.​

 

[Saif]

ADN Telecom plans to make telecom devices

ADN Telecom, a leading IT and telecommunication service provider in Bangladesh, has availed land to set up facilities and locally manufacture telecommunication devices to substitute imports, according to company officials.

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ADN Telecom plans to make telecom devices

ADN Telecom, a leading IT and telecommunication service provider in Bangladesh, has availed land to set up facilities and locally manufacture telecommunication devices to substitute imports, according to company officials.

"We are at the initial stage and have just availed the land for the factory. We have a plan to set up the facility at Bangabandhu Sheikh Mujib Hi-Tech Park in Sylhet," said Company Secretary Md Monir Hossain.

However, he said they were yet to finalise the type of telecommunication device that they would manufacture or how much investment would be required.

According to him, they would conduct a feasibility study before investing in the manufacturing of any device.

"It is tough to grab the telecom device market as consumers in Bangladesh are very careful about purchasing any such device. Besides, consumers do not rely on local products even though some companies are producing quality products," Hossain said.

"So, we will enter the market cautiously," he added.

The company signed an agreement with the park authority on Tuesday to take lease of 1.75 acres of land, according to a company disclosure on the Dhaka Stock Exchange website yesterday.

As per the disclosure, the company has been granted the lease for 40 years for developing manufacturing facilities of international standard.

The rate is US $1.50 per square metre, which amounts to US $10,642.50 for the first 10 years. Afterwards the rate will increase by a maximum of 10 percent every three years.

Shares of ADN Telecom closed at Tk 114.70 yesterday, down from Tk 115.50 on the previous day.​

 

[Saif]

Vivo V30 Lite launched in Bangladesh

Vivo has introduced the V30 Lite smartphone in Bangladesh. The device was unveiled earlier today at a lunching ceremony in the capital.

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Vivo V30 Lite launched in Bangladesh

Image: Zahidur Rabbi/Tech & Startup

Vivo has introduced the V30 Lite smartphone in Bangladesh. The device was unveiled earlier today at a lunching ceremony in the capital.

Vivo V30 Lite features a colour-changing glass back and a metallic high-gloss frame, available in Breeze Green and Crystal Black.

The smartphone includes an 80-watt flash charger that fully charges its 5000 mAh battery in 43 minutes. It supports up to 29 hours of call time or 16 hours of video playback.

Key specifications include a Super Charge Pump that aims to minimise heat during charging, a 6.67-inch AMOLED display with a 120Hz refresh rate, and a Qualcomm Snapdragon 685 processor. The phone operates on Funtouch OS 14 and has 8 GB of RAM, expandable by another 8 GB, with 256 GB of storage.

Audio features include dual stereo speakers with a 300% volume boost. The camera setup comprises a 50-megapixel main rear camera, a 2-megapixel bokeh camera, and an 8-megapixel front camera.

The V30 Lite is priced at Tk 32,999.

It is currently available for pre-booking, which includes a gift box with RIRO TWS wireless earphones and a 4-year battery replacement card. A 180-day display replacement offer is also available for early buyers.​

 

[Saif]

Ensuring quality in Bangladesh's telecom industry: a call for vigilance and transparency

Quality of Service (QoS) is a common term in the mobile industry used to describe the services experienced by customers. In the telecom industry, standard QoS parameters are regularly measured to determine the service standard and customer satisfaction. The International Telecommunication Union (IT

thefinancialexpress.com.bd

Ensuring quality in Bangladesh's telecom industry: a call for vigilance and transparency
MD MUNIR HASAN
Published :
May 26, 2024 21:55
Updated :
May 26, 2024 21:55

Quality of Service (QoS) is a common term in the mobile industry used to describe the services experienced by customers. In the telecom industry, standard QoS parameters are regularly measured to determine the service standard and customer satisfaction. The International Telecommunication Union (ITU) has specified certain parameters and their values through research, establishing the minimum requirements for an acceptable level of service. Additionally, each country's local telecom regulatory authority may suggest further parameters and their threshold values. These regulatory bodies typically prepare QoS guidelines that outline the parameters and threshold values that operators must comply with in their network operations. Sometimes, these QoS requirements are also included in the license obligations of the operators.

The price of a telecom service depends on its Quality of Service (QoS). Lower QoS typically entails lower costs, indicating a correlation between service price and QoS. Consequently, comparing the prices of multiple operators is not feasible without normalizing their services to a specific standard QoS. Therefore, the QoS guideline is crucial, and the regulator must ensure its proper implementation to protect consumer interests.

One may wonder if it is possible for operators to detect unintelligible speech quality or slow internet experiences. The answer is yes, it is possible. Operators can measure service levels using various methods. Telecom equipment includes built-in measurement techniques, and operators conduct extensive road testing (drive tests) and in-building walk testing to assess QoS.

The Bangladesh Telecom Regulatory Commission (BTRC) possesses the necessary equipment and technology to conduct drive tests and walk tests, recording the QoS of mobile network operators. These QoS reports could be published regularly to inform the public about the service levels of the operators.

On the BTRC website, three such reports are found. These tests were conducted in the Rangpur, Khulna, and Barisal regions between October and November 2021.

Md. Munir Hasan is a telecom professional.

To read the rest of the news, please click on the link above.​

 

[Bilal9]

OnePlus Nord N30 SE: A no-nonsense budget phone made in Bangladesh
The first made-in-Bangladesh OnePlus device impresses in the budget category.

OnePlus Nord N30 SE. Image: Zarif Faiaz

OnePlus Nord N30 SE. Image: Zarif Faiaz

OnePlus has recently made its official entry into the Bangladeshi market, debuting with the launch of the OnePlus Nord N30 SE.

Design and display
One of the most striking aspects of the OnePlus Nord N30 SE is its design. The Nord N30 boasts a sleek and premium look, far from the typical plastic-bodied devices in this range. Available in two colors: Cyan Sparkle and Black Satin, the phone feels solid and well-built, with a thickness of 7.99mm and a weight of around 193g. It fits comfortably in the hand and is suitable for prolonged use.
The 6.72-inch FHD+ display impresses with its 2400 x 1080 resolution and a 91.4% screen-to-body ratio, delivering sharp and immersive visuals. The 90Hz refresh rate ensures smooth scrolling, addressing a common issue in lower-end Android phones. With a peak brightness of 680 nits, the screen remains clear even under bright sunlight, and the 100% DCI-P3 colour gamut enhances colour vibrancy and accuracy.

Performance
Under the hood, the OnePlus Nord N30 SE is powered by the MediaTek Dimensity 6020 5G platform. This, combined with 4GB of RAM and 128GB of internal storage, delivers solid performance for everyday tasks. Running on Oxygen OS 13.1, the interface is intuitive and user-friendly, contributing to a seamless user experience.

Camera

The camera setup, featuring a 50MP AI rear camera, a 2MP depth camera, and an 8MP front camera, is a mixed bag. While the specifications are promising, the actual performance is somewhat underwhelming.

Battery life and charging
Equipped with a 5000mAh battery, the OnePlus Nord N30 SE provides a reasonable amount of usage time. However, during our testing, we noticed that the battery drains faster than expected, particularly during intensive use. This could be a concern for heavy users.
On the bright side, the 33W SUPERVOOC fast charging is highly efficient, bringing the battery to 51% in just 30 minutes and achieving a full charge in approximately 74 minutes.

Additional features
The Nord N30 SE includes reliable biometric security features such as fingerprint unlock and face unlock, both of which work swiftly and accurately.

Verdict
The OnePlus Nord N30 SE offers impressive value for its price. For consumers seeking an affordable yet capable smartphone, the OnePlus Nord N30 SE is a commendable no-nonsense option.

Photos: Zarif Faiaz

 

[Saif]

undefined | The Financial Express

thefinancialexpress.com.bd

Telecommunication law to be reformed in time-befitting and investment-friendly manner: Palak
Published :
Jun 05, 2024 23:36
Updated :
Jun 05, 2024 23:36

The government is set to introduce a new telecom law that aligns with technological advancements and promotes a business-friendly environment while ensuring public welfare, said State Minister for Posts, Telecommunications, and Information Technology, Zunaid Ahmed Palak.

The draft, prepared by the Ministry of Posts and Telecommunications, will undergo necessary amendments before the final legislation is enacted, he said, reports UNB.

Palak revealed these updates at a seminar organised by the Telecom and Technology Reporters Network Bangladesh (TRNB) in collaboration with the Association of Mobile Telecom Operators of Bangladesh (AMTOB).

The seminar, titled "Reform of the Telecommunications Law, 2001," highlighted key changes needed in the draft law.

He emphasised the importance of the Bangladesh Telecommunication Regulatory Commission (BTRC) operating independently while aligning with the ministry. He assured that business and investment-friendly aspects of the draft law would be preserved and adjusted as necessary.

"We will remove any provisions in the draft that could cause problems for stakeholders or the general public. We can look to the ICT laws of India and Vietnam for guidance in this regard," Palak stated. "Our goal is to create a timely law that fosters a business-friendly environment conducive to building a smart Bangladesh."

He proposed removing Articles 7(3) and 26(ঙ) from the draft law, following criticisms. Article 7(3) grants the ministry the power to remove BTRC commissioners, which could hinder the commission's independent functioning. Article 26(ঙ) requires licenses from BTRC for operating social media and online platforms, complicating online businesses and innovations. Acknowledging these concerns, Palak committed to excluding these articles.

To further refine the draft, Palak formed a seven-member committee tasked with reviewing stakeholders' recommendations and providing a report within seven days. He assured that the committee's suggestions would be seriously considered.

To read the rest of the news, please click on the link above.​

 

[Saif]

5G technology remains a pie in the sky. Why

Is 5G merely a vanity, just another technology that offers nothing extraordinary? Or has it emerged as a central cog in transforming the digital space by resolving issues related to low speed and latency?

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5G technology remains a pie in the sky. Why

Is 5G merely a vanity, just another technology that offers nothing extraordinary? Or has it emerged as a central cog in transforming the digital space by resolving issues related to low speed and latency?

Despite being launched years ago across the world, firm answers to these questions are yet to be produced. But if you look at statistics, it may surprise you.

Over 1.5 billion people – more than one in every four mobile subscribers globally – now use the fifth-generation technology standard for cellular networks, widely known as 5G.

The technology offers several advantages over previous generations, including faster data speeds, lower latency, and greater capacity to connect multiple devices simultaneously.

Its impact spans industries like healthcare, autonomous vehicles, virtual reality and many more.

Such benefits make it attractive for both consumers and businesses and its widespread adoption indicates significant impact, suggesting that 5G is more than a passing trend.

But for Bangladesh, the launch of this technology, which promises faster speeds and broader connectivity capabilities, remains a far cry.

Although the rollout of 5G was part of the ruling party's election manifesto in 2018, the technology has so far been limited to trial runs.

Globally, operators began launching 5G networks around 2019, with initial rollouts in major urban areas. By 2021-2022, 5G adoption peaked as more operators expanded coverage and consumers embraced the technology.

According to the GSMA, by 2025, 5G networks are likely to cover one-third of the world's population, which would have a profound impact on both the mobile industry and its customers.

But in Bangladesh, sluggish moves to prepare 5G guidelines, operators' reluctance and a lack of readiness are hindering the launch of the technology.

To read the rest of the news, please click on the link above.​