Page 112 - SAMENA Trends - November-December 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

Bangladesh

The total number of Bangladesh’s mobile phone subscribers percent), infrastructure providers (12 percent), and the handset
hit over 164 million at the end of October with addition of 7.18 industry, content applications and other services providers (5
million new users in the first 10 months of this year, statistics percent). Shahed Alam, chief corporate and regulatory officer of
of the country’s telecom regulator showed Monday. According Robi, said the country has made tremendous progress towards
to data from the Bangladesh Telecommunication Regulatory implementing the Digital Bangladesh vision by 2021. He said with
Commission (BTRC), the number of subscribers in the country Robi, mobile operators have created the platform for the digital
reached 164.170 million in October. Bangladesh has now four economy to take off in the country. “As part of that we are already
mobile companies, three of which are foreign-backed cell phone in the process of transforming ourselves into a digital company
operators. The number of subscribers of the mobile operators, by diversifying our product and service portfolio through digital
Grameenphone, Robi Axiata, Banglalink and state-run Teletalk innovation. This transformational journey is helping us get
stood at 76.067 million, 48.349 million, 35.049 million and integrated with all elements of the country’s rich and varied
4.706million respectively at the end of October, BTRC data socio-economic fabric.” “Therefore, the telecom sector is
showed. According to the statistics of the country’s telecom becoming the key enabler for the country to achieve the targets
regulator, the number of Bangladesh’s mobile phone subscribers set in the Sustainable Development Goals.” The report found that
stood at 156.989 million at the end of December 2018. the total number of smartphone users was 48 million in 2017 and
(December 23, 2019) xinhuanet.com it will go up by threefold to 138 million in 2025. “As the number of
smartphones will grow, the mobile broadband connection will grow
The telecommunication industry’s revenue will grow by 34 accordingly.” The report said the telecom sector has experienced
percent in the next five years to $5.08 billion from $3.8 billion at sluggish growth in the face of rapid digital disruption and an
present, on the back of expanding user base and wide range of unfavorable regulatory regime. It listed the challenges facing the
services, said the USAID in a new study. “The sector is quite large sector. They include rising use of communication applications
in size and has a crucial contribution to achieving the goal of which are gradually eating up the core revenue stream; higher
making Bangladesh a middle-income country,” said the report of corporate tax; higher customer acquisition price; the lowest return;
the United States Agency for International Development (USAID) and low investment for network up gradation and maintenance.
published recently. The industry employs about 7.60 lakh people It recommended supporting internet-based startups that have
directly, of which 92.5 percent are unskilled and 7 percent are cross-cutting impacts on industries such as telemedicine and
women, the Comprehensive Private Sector Assessment report ridesharing as well as introducing IT-enabled working space to
said. The job growth rate in the sector will be 9 percent from 2016 support entrepreneurs, freelancers, and crowdsourcing in rural
to 2020. The USAID Bangladesh has listed 16 emerging sectors in areas. AMTOB’s Farhad said though the market is growing rapidly,
the study which could contribute a lot to the country’s economic the industry is suffering a lot due to over-regulation, regulatory
development, beyond that facilitated by the readymade garment unpredictability, and a weak telecom ecosystem. “Super high
sector. Telecommunication is one of them. “The mobile telecom taxation and the high price of spectrum are also impacting the
service in Bangladesh is very promising as the operators are industry. Given the scenario, it will be very challenging to roll out
providing standard services with extensive facilities to customers,” 5G service and implement Digital Bangladesh endeavour within
said M. Farhad, Secretary General of the Association of Mobile the stipulated time.” “We hope that the government and the
Telecom Operators of Bangladesh (AMTOB). The report said the regulator will understand the reality and take appropriate actions
country is undergoing transformation on social and economic to overcome the challenges.” Alam of Robi said the regulator’s
fronts. Rapid changes have been observed in the lifestyle of the traditional command and control mindset is failing to see beyond
population. Connectivity has been an integral part of modern-day the immediate concerns of revenue collection. “If this mindset
life, thus accelerating the growth in mobile communication and persists, the country will only slow down its progress towards
internet use. The use of social media platforms such as Facebook, the creation of a full-fledged digital economy.” The USAID report
WhatsApp, Viber and video-streaming sites like YouTube have called for an initiative, in collaboration with small internet service
become part of everyday life for all classes of people, mostly young providers, to provide last-mile services. At the end of fiscal 2017,
and middle-aged groups. The use of social media is growing there were 85 million unique subscribers and it will be 107 million
every day, resulting in more and more consumption of internet in 2025, making Bangladesh the fifth largest mobile market in the
data. Steady population growth and increase in purchasing power Asia Pacific and the ninth largest market in the world in terms
will continue to drive the telecom sector growth, the report added. of unique subscribers. Active mobile connections will reach 190
In 2016-17, the telecommunications sector accounted for 6.98 million at the end of 2025 and the number of 4G users will be
percent, or $29.6 billion, of the economy. The contribution of 41 percent, the USAID report said, referring to the GSMA, a trade
the sector is highly dominated by mobile operators with a direct body that represents the interests of mobile network operators
impact of 58 percent, followed by distributors and retailers (25 worldwide. (December 15, 2019) thedailystar.net

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