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Bangladesh Mobile Phone Market Sees 4% Growth in 2019

Bangladesh’s mobile phone market The China-based vendors continued to and a few more vendors are expected to
returned to growth in 2019 with a 4.1 percent launch higher-priced smartphone models set up their local production in the coming
annual growth, shipping 29.6 million with better specifications. This helped the months,” said Mittal. Commenting on the
units during the year, said a new report average selling price (ASP) of smartphones recent growth of local assembly, Jaipal
released from New Delhi. Feature phones to reach $99 with a 5.7 percent YoY Singh, Associate Research Manager,
continued to dominate with 76.6 percent growth in 2019. The share of 4G-enabled Client Devices, IDC India said as the local
share and 22.7 million units shipment with smartphones reached 69 percent with 50.4 governments continue to discourage
a 4.9 percent annual growth, according percent annual growth in 2019. However, the CBU (Completely Built Units) import
to the International Data Corporation’s 3G smartphones still hold 31 percent across countries, it is putting immense
(IDC) Worldwide Quarterly Mobile Phone category share, primarily because these pressure on global vendors to diversify
Tracker, 4Q19. In the smartphone category, smartphones were selling at less than their production plants in key geographies
a total of 6.9 million smartphones were half of the price of a 4G smartphone. Also, to meet the local demand. Singh said this
shipped in 2019 with a 1.4 percent year- due to limited coverage and poor quality provides an opportunity to reduce the
over-year (YoY) growth. The last quarter of the 4G network, users are still reluctant dependency on China. “At the same time, it
of the year (4Q19) saw the healthy growth to upgrade. “Despite modest growth, the also brings a lot of challenges, starting from
in the overall mobile phone shipments as country saw a shift in local manufacturing managing the overall cost, inventory, and
the category grew 19.5 percent YoY and as three out of four smartphones shipped production, especially when the domestic
16.2 percent from the previous quarter, in 4Q19 were locally assembled from just demand is limited, and manufacturing is
contributing 8.8 million shipments to the one-fourth smartphones assembled in largely restricted to assembling of devices
year. In June 2019, the government of 1Q19,” says Ekta Mittal, Market Analyst, locally and all the components still have
Bangladesh increased the customs duty on Client Devices, IDC India. “Walton was to be imported.” “As vendors settle their
the import of completely built units (CBU) the leading vendor in local production as production challenges, we expect a gradual
of the smartphone to 25 percent from 10 it assembles all its devices in the country. shift to smartphones in the coming years.
percent earlier, resulting in a 4.1 percent Among the global vendors, Samsung However, the 4G network coverage and
decline YoY in 2H19. However, as feature assembles almost all of its smartphones in data pricing will play a critical role in this
phones were left outside of this increased the country but still depends on import of transition,” Singh said.
duty structure, it saw a strong recovery feature phones. Also, OPPO and vivo had
with 20.1percent YoY growth in 2H19. started their local production from 2H19

Libya Internet Prices Reduced by 50 Percent

Libya’s General Authority for the technological development of all age They doubted that the 50 percent would
Communications and Informatics groups in Libya. The huge price cut has be implemented at a time when Libya’s
announced a 50 percent reduction come as a surprise to many experts in the telecoms companies needed to implement
in the prices of subscriptions and field. Well placed telecoms sources in Libya huge investments to upgrade the internet
internet packages provided by state told Libya Herald that the price reduction service and quality in the country. They
telecommunications companies. The was too high. It presumes that Libyan see the decision as a political one taken
Authority said that the decision came after telecoms companies are earning more unilaterally without even consulting Libya’s
a series of meetings and discussions with than the 50 percent reduction in profits – internationally recognized government. It
specialists to ensure that the reduction which they insist they are not. The sources will be recalled that the internet service in
does not cause any negative effects on the put profits at no more than 30 percent and, Libya has come in for huge criticism with
budgets of the companies concerned. It therefore, they see the price cut as a new its poor quality and lack of reliability. The
explained that the decision to slash prices type of subsidy. This, they add, at the very crash in the value of the Libyan dinar and
comes as part of the Authority’s efforts to time when the Libyan state is struggling in standards of living had made it relatively
improve the level of communication and economically and attempting to reduce more expensive. Libya’s ever-present
information services, to enable citizens to inherited Qaddafi-era subsidies. They power cuts since its 2011 revolution has
access internet services in the easiest way predicted that the main state company not helped reliability either.
and lowest prices, to promote the culture supplying internet services would go
of digital knowledge and to keep pace with bust soon if the cut was implemented.

68 FEBRUARY 2020