Telecommunication Sector Opportunities

An Expert's View about Telecommunications in Bangladesh

Last updated: 20 Sep 2011

The Telecommunication Ministry is revising the spectrum charges for four mobile operators as their existing licenses expire in November 2011.

Sector briefing Telecommunication Sector Opportunities in Bangladesh Why Bangladesh? The international Monetary Fund (IMF) has indicated that Bangladesh?s economy has th become the 48 largest in the world and is worth US$225 billion on PPP basis. Similarly JP Morgan, a global leader in investment banking has also included Bangladesh in their Frontier Five, based on relative market attractiveness. Price Waterhouse Cooper (PWC) has included Bangladesh in their new PWC 30 list considering its potential growth. Investors Chronicle, a UK based research firm, has indentified Bangladesh to be one of the seven hottest emerging markets in the world owning ??The Government of Bangladesh?s commitment to its relatively stable currency with solid to a digital Bangladesh is likely to present foreign reserves and record foreign remittances major opportunities for the sector. Bangladesh as well as near 7% growth rate. The present will have 92 million mobile subscriber Government has set ??Vision 2021?? to move connections in 2015. In September 2010 total Bangladesh to a middle income country by subscriber was 65.14 million whereas in 2004 2021. Over 33% of the population currently it was only 4 million??. has a mobile phone. UK Trade & Investment Sector briefing: Telecommunication Sector opportunities in Bangladesh Bangladesh Overview Fixed line operators and their market shares as of September The Peoples Republic of Bangladesh covers an 2 2010 area of approximately 144 000 km and its geographical location is to the east of India. ? BTCL: 84.8% The Ready Made Garments (RMG) sector is a ? Telebarta Ltd: 5.5% major foreign exchange revenue generator for ? Jalalabad Telecom Ltd: 1.1% Bangladesh contributing 77% to the country?s ? Onetel Communication Ltd: 3.8% net exports during 2009-2010. Garment ? Westec Ltd: 1.7% exports, totalling $12.3 billion in FY09 and ? Sheba Phone Ltd:1.1% remittances from overseas Bangladeshis ? S.A Telecom System Ltd: 1.8% totalling $9.7 billion in FY09 accounted for ? Bangla phone Ltd:.2% almost 25% of GDP. Recent issues Statistics 1. The Telecommunication Ministry is revising GDP per capita (2010) US$685 the spectrum charges for four mobile operators GDP US$ 100.08 billion as their existing licenses expire in November GDP Growth Rate (2010) 5.83%(Provisional) 2011. The Bangladesh Telecommunication Population (estimated) 156 million Regulatory Commission (BTRC) and the Birth rate (Per 1000 Population) 20.4 Telecom Ministry has finalized the non financial Net population growth rate 1.39 % part of the new fees structure and related Foreign exchange reserves £10.5 billion policies. The document is now with the Finance (Feb, 2010) Ministry for the financial part review and the Inflation (Inflation January 8.14% Government hopes to complete the required 2011) formalities before November 2011. Financial year July-June 2. Government is still working on a 3G license issue and yet to finalize the cost of the license Telecom sector in Bangladesh and requirements. BTRC is going to allocate available 45 MHz spectrums to four prospective Bangladesh telecoms sector?s growth has operators. It is expected that five operators will exceeded all expectations and had a contest for three licenses. The fourth license is transformative impact on the economy in reserved for the only state run operator terms of aggregate investment, FDI. This Teletalk. impact was the same like Readymade Garments and Remittances. There are likely to be public private partnership (PPPs) Opportunities opportunities for telecoms to partner up with the Government of Bangladesh in service There are number of areas where foreign delivery across the areas of e-education, e- companies could get involved and these are: health and e-commerce. There are three major areas in Bangladesh where increased internet 1. Value added services in Agriculture, usage could have the largest economic and Financial Services / Mobile Banking, Healthcare social impact i.e education, healthcare and and E-Commerce. rural development. 2. Introducing Enterprise products by focusing Mobile operator and their market on the business segment. shares as of September 2010 4. Information Technology Enabled Services ? Grameen Phone: 44% and Outsourcing could be another area of new business opportunities and scope for business ? Robi: 18% diversification for companies. ? Bangla Link: 28% ? City Cell: 3% 5. Entertainment, games and infotainment are ? Tele Talk: 2% also potential areas to develop rapidly given ? Warid (now Airtel): 5% UK Trade & Investment Sector briefing: Telecommunication opportunities in Bangladesh that the median age of Bangladesh?s population Next steps - is 23.3 years with 65% under the age of 25. How UKTI can help British companies wishing to develop their Challenges business in the Bangladesh market are advised to undertake as much market research and 1. Government might enact more friendly planning as possible in the UK. UKTI?s team in regulatory or fiscal reforms such as cuts in the Bangladesh, with its wide local knowledge and sim tax as Bangladesh telecom sector suffers experience, can provide a range of services to one of the highest effective tax rates in the British-based companies wishing to grow their world. business in global markets. 2. Government should reduce broadband This can include: wholesale prices further ? Provision of market information 2. Shortage of power supply affects ? Validated lists of agents / distributors / Partners 3. Lack of content in local language ? Key market players or potential customers in the Bangladesh market 4. Lack of ICT education and awareness ? Establishment of interest of such contacts in working with you 5. Cyber Security threat ? Arranging appointments with GoB or with private sector and accompanying during the 6. At present there are different bodies for meetings telecoms and broad casting. There should be ? Organise seminars or other events for you more coordinated regulatory framework to to meet contacts and promote your make it more flexible company in the Bangladesh market ? Introducing your company to the local Press 7. Competitive pricing policies and & Media management of submarine cable 8. Decisions should be quicker This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. UK Trade & Investment Sector briefing: Telecommunication opportunities in Bangladesh UKTI contacts Qumrun Naher Deputy Director of UK Trade & Investment British High Commission UN Road, Baridhara Dhaka-1212 Tel: +88-02-8822705-9, Ext: 2282# Email: Qumrun.Naher@fco.gov.uk www.uktradeinvest.gov.uk Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government- licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Telecommunication opportunities in Bangladesh
Posted: 16 September 2011, last updated 20 September 2011

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