[🇧🇩] Telecommunication Industry in Bangladesh

[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

www.thedailystar.net

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

thefinancialexpress.com.bd

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

www.thedailystar.net

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.

www.thedailystar.net

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.

www.thedailystar.net

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.​

 

[Saif]

Implement mechanism to identify illegal handsets

Mobile phone makers also demand stability in tax policy

www.thedailystar.net

Implement mechanism to identify illegal handsets​

Mobile phone makers also demand stability in tax policy

Local mobile manufacturers yesterday demanded the activation of the National Equipment Identity Register (NEIR) as illegal and informal channels currently capture about 35 to 40 percent of the overall handset market in Bangladesh.

Introduced by the Bangladesh Telecommunication Regulatory Commission in 2021, NEIR aims to ensure the use of legitimate mobile devices in the country by linking their IMEI number to the customer's national identification and SIM numbers.​

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But the crucial functions of the system, such as blocking fake, unauthorised, or cloned handsets, are not yet operational. The government has also not initiated the blocking of illegally-imported mobile phones.

The import duty on complete handsets is around 58 percent, but illegally imported phones are flooding the market as they are brought over without paying any taxes.

However, local manufacturers have to pay many different forms of taxes from eight percent to over 20 percent and various licensing fees.

As a result, newly-established factories are having a hard time despite investing crores of taka, said Jakaria Shahid, president of the Mobile Phone Industry Owners' Association of Bangladesh (MIOB).

He was speaking at a press conference organised by the MIOB.

Shahid said they have long demanded the activation of NEIR and that Zunaid Ahmed Palak, Minister of State for Posts, Telecommunications and Information Technology, had informed them that that NEIR would be activated.

"However, we haven't seen any effort to activate it yet," he said.

He added that prior to 2018, all mobile handsets in Bangladesh were imported.

But as the government provided incentives, major importers gradually established local factories. So far 17 mobile handset factories have been established and 99% of the local demand for handsets is met through official channels.

But due to a spike in illegal imports of handsets, local mobile factories are facing serious challenges, he added.

"It is very difficult to compete with illegally imported handsets because they evade taxes. There are many regulations and high licence fees imposed by BTRC on legal factories. Illegal importers are not subject to these. And the government is losing huge sums of tax in the absence of NEIR."

Customers are buying low-quality and sometimes refurbished handsets that do not offer any warranty while many crimes are also committed with illegally-imported handsets, he said, adding that one of the major objectives of NEIR is to help law enforcment combat such crimes.

The demands of the association come at a time when

The local production of handsets dropped in 2023, the first decline since domestic manufacturing began in Bangladesh in 2017, owing to the higher price of US dollars, an increase in taxes, the expansion of the grey market, and lower sales amid an erosion of consumers' purchasing power.

Domestic firms produced 2.33 crore mobile phones in the January-December period last year, down 26.35 percent from the 3.17 crore units manufactured in the same period a year earlier, according to the BTRC.

Industry people say external and internal crises have combined to hurt the local mobile manufacturing industry. Besides, the restriction in opening letters of credit (LCs) has impacted the entire supply chain.

Shahid also demanded a long-term taxation policy so that they could invest with confidence.

Rezwanul Hoque, vice-president, Md Mesbah Uddin, general secretary, and Md Zohorul Haque Biplob, joint secretary, were also present.​