impact of mobile phone

The Socio-economic Impact of Mobile Phone Services on Rural

People in Bangladesh

Md. Afzal Jamil

Economics Discipline

Social Science School

Khulna University

Khulna, Bangladesh

April, 2008



A Thesis by

Md. Afzal Jamil

Student No.: 031522

Session: 2005-2006

Supervised by

………………………………

(Md. Rezaul Karim, Ph.D)

Sociology Discipline

Khulna University, Khulna, Bangladesh

&

………………………………

(Mr. Sk. Sharafat Hossen)

Lecturer, Economics Discipline

Khulna University, Khulna, Bangladesh

The thesis submitted to the Economics Discipline of Social Science School, Khulna University in

partial fulfillment of the requirements for the Degree of

Bachelor of Social Science (Hons.) in Economics

April, 2008



Approved as to Style and Content

By

……………………………………………..

Khan Md. Azizur Rahman

Head


Khulna University

Khulna, Bangladesh

STATEMENT OF ORIGINALITY



The findings of this thesis are entirely of the candidate’s own research and any part of the results

has neither been accepted for any degree nor it is being concurrently submitted for any degree.

………………………………

(Md. Afzal Jamil) Student No.: 031522

Session: 2005-2006

i

Acknowledgement

Alhamdulillah! All praise be to Allah (SWT) for His infinite mercy in preparing this

paper and in asking His forgiveness for any error of judgment. Without His

compassion, this research work would not have been possible. I have received

intellectually stimulating ideas from number of distinguished personalities and related

organizations. Behind the successful establishment of any venture there always exists

the invisible cooperation of some persons. Professor Md. Rezaul Karim Ph.D, Head

Economics Discipline and Sk. Sharafat Hossen, Lecturer Economics Discipline of

Khulna University are such persons without whose cordial guidance and systematic

supervision it is beyond my ability to shape this dissertation paper into a good one.

I would like to express my heartily thanks to all teachers of Economics Discipline for

their extensive and compendious lectures on mobile phone related issues different

times.

I am grateful to my thesis mates as well as class mates who assists me during data

collection and putting them into softwares.

Finally, my special appreciation goes to all the respondents and people of nine

upazilas for their cordial help and friendly participation by responding to the queries,

and interviews during the time of survey, that enable me to analyze and synthesize all

the ideas into a report form.

If this small effort succeeds in generating both scholarly and practical interest in the

seminal role of mobile phone in the walks of life, I will consider my labour amply

rewarded.

May Allah (SWT) accept my work for His sake alone.

April, 2008

Md. Afzal Jamil


ii

Abstract

The study reveals the socio-economic impact of mobile phone services on rural

people in Bangladesh. This study reached its various findings from the view point of

rural areas under some upazilas of the country. 300 sample were chosen randomly of

which 180 were subscriber and 120 were trader and they were asked about their

various social and economic aspects relating to mobile phone usage. Primary,

secondary and personal subtle observation has been used as a source of data

collection. Most of the users derive better benefits from mobile phone although it

incorporates some harmful aspects. This paper explores services of mobile phone

companies in Bangladesh and shows its economic and social impacts on rural people.

From economic perspective, mobile phone reduces communication cost with different

regions and it increases social cohesion among people in the rural area as well. Before

a year ago response to the business relating to mobile phone was higher which is

substantially reducing now-a-days. In the rural areas the popularity of Banglalink is

enough because this operator pays more assiduousness to the expectation of its valued

subscriber. In rural area, most of the subscribers are not aware about the internet

facility. However, amongst them a great portion use it for entertainment purpose. As a

part of corporate social responsibility (CSR) all the operators are now involved in

social welfare activities. Apart from major benefits, misuse from the juveniles and

terrorists are also of great concern. Contributing to the domestic economy, the mobile

phone operators bring the opportunity of employment for rural people having a

substantial share to the GDP.

Keywords: mobile phone service, socio-economic impacts, rural areas

iii

Contents

Title Page No.Acknowledgement i Abstract ii Contents iii List of tables vi List of figures vii List of map vii Acronyms and abbreviations viii Chapter one: Introduction 1-6 1.1 Background of the study 1 1.2 Rationale of the study 2 1.3 Objectives of the study 3 1.4 Scope of the study 3 1.5 Limitations of the study 3 1.6 Operational definitions 4

1.6.1 Mobile phone 4 1.6.2 Land phone 4 1.6.3 Digital divide 4 1.6.4 GSM 5 1.6.5 ERS 5 1.6.6 Upazila 5

1.7 Organization of the study 6

Chapter two: Methodology 7-10 2.1 Research design 7 2.2 Sampling technique and sample size selection 7 2.3 Data collection 8 2.3.1 Primary data 8 2.3.2 Secondary data 9 2.4 Data processing, analysis and presentation 9 2.5 Steps of the study 10 Chapter 3: Mobile phone services in Bangladesh 11-20 3.1 General 11 3.2 Mobile phone operators: History of inception 11 3.3 Subscriber base of telecom operators in Bangladesh 13 3.4 Tariff plan of telecom operators: Past and present 14 3.5 Mobile phone operators in rural area 16 3.6 Mobile phone benefits national economy 17 3.6.1 Contribution to government revenue 18 3.6.2 Contribution towards economy 18 3.6.3 Contribution towards employment 19 Chapter 4: Profile of the study area 21-29 4.1 Study area: Demographic, economic and communication features 21 4.1.1 Batiaghata Upazila 21 4.1.2 Dumuria Upazila 22

iv

4.1.3 Terokhada Upazila 22 4.1.4 Rupsa Upazila 23 4.1.5 Rampal Upazila 24 4.1.6 Alamdanga upazila 25 4.1.7 Wazirpur Upazila 25 4.1.8 Kaligonj Upazila 26 4.1.9 Gazipur Sadar Upazila 27 4.2 Quick look of the study area 29 Chapter 5: Socio-economic status of general subscriber 30-39 5.1 Socio-demographic features of general subscriber 30 5.1.1 Age structure 30 5.1.2 Sex distribution 30 5.1.3 Distribution of sex according to age group 31 5.1.4 Family size 31 5.1.5 Educational status 32 5.1.6 Previous communication type 32 5.2 Economic features of general subscriber 32 5.2.1 Professional status 33 5.2.2 Household expenditure pattern 33 5.2.3 Savings pattern 34 5.2.4 Income pattern 34 5.3 Subscribers status related to mobile phone service 35 5.3.1 Preferred telecom operator of general subscriber 35 5.3.2 Reason for choosing particular operator 36 5.3.3 Reason for not changing operator 37 5.3.4 Subscribers awareness about internet service 37 5.3.5 Subscribers purpose of internet use 38 5.3.6 Subscribers handset usage status 39 Chapter 6: Socio-economic status of trader 40-51 6.1 Socio-demographic features of trader 40 6.1.1 Age structure 40 6.1.2 Sex distribution 40 6.1.3 Family size 41 6.1.4 Educational status 41 6.2 Economic features of trader 42 6.2.1 Business type 42 6.2.2 Household expenditure pattern 43 6.2.3 Savings pattern 43 6.2.4 Income pattern 44 6.2.5 Investment pattern 45 6.2.6 Profit pattern 45 6.3 Business outlay and revenue earnings 46 6.3.1 Heads of expenditure 46 6.3.1.1 Rent of the shop 46 6.3.1.2 Salary of the employee 47 6.3.1.3 Utility expenses 47

v

6.3.2 Revenue earnings 4 6.3.2.1 Revenue from ERS 48 6.3.2.2 Revenue from M2M 49 6.3.2.3 Revenue from selling handset 49 6.3.2.4 Revenue from selling mobile phone accessories 50 6.3.2.5 Reinvestment pattern of trader 50 Chapter 7: Impact analysis of mobile phone service on rural people 52-63 7.1 Impact of mobile phone: General subscriber perspective 52 7.1.1 Positive economic impact 52 7.1.1.1 Mobile phone reduces communication cost 52 7.1.1.2 Mobile phone benefits businessman 53 7.1.1.3 Mobile phone improves product marketing 54 7.1.2 Positive social impact 55 7.1.2.1 Mobile phone increases social cohesion 56 7.1.2.2 Mobile phone helps user with low education and literacy to be connected 57 7.1.2.3 Mobile phone service in natural disaster 57 7.1.2.4 Mobile phone promotes social responsibility 58 7.1.3 Negative economic impact 68 7.1.3.1 Young generation wastes their valuable money 59 7.1.3.2 Young generation wastes their productive time 59 7.1.4 Negative social impact 60 7.1.4.1 Mobile phone creates problem among family members 60 7.2 Impact of mobile phone: Trader subscriber perspective 61 7.2.1 Negative economic impact 61 7.3 Physical problems using mobile phone 61 Chapter 8: Summary of findings 64-65 Chapter 9: Recommendations and Conclusion 66-68 9.1 Recommendations 66 9.2 Conclusion 68 References ix-x Appendices xi-xix Appendix I xi Appendix II xiv Appendix III xvi

vi

List of Tables Table ID Title of Tables Page No.

Table 3.1 Distribution of subscriber base of mobile phone operators in Bangladesh 13 Table 3.2 Distribution of world's Top 10 emerging mobile growth markets 14 Table 3.3 Validity of prepaid scratch card 15 Table 3.4 Present tariff plan of telecom operators 16 Table 3.5 Fixed and mobile teledensity in Bangladesh 17 Table 3.6 Source of revenue from mobile phone industry 18 Table 3.7 Inbound revenue to government exchequer 19 Table 3.8 Employment creation statistics by mobile phone industry as up to 2005 20 Table 5.1 Age distribution of general subscriber 30 Table 5.2 Sex distribution of general subscriber 30 Table 5.3 Sex distribution according to age group 31 Table 5.4 Family member distribution of general subscriber 31 Table 5.5 Distribution of educational status of general subscriber 32 Table 5.6 Distribution of previous communication type 32 Table 5.7 Professional distribution of general subscriber 33 Table 5.8 Household expenditure pattern of general subscriber 33 Table 5.9 Distribution of savings pattern of general subscriber 34 Table 6.1 Age distribution of trader 40 Table 6.2 Sex distribution of trader 41 Table 6.3 Family member distribution of trader 41 Table 6.4 Distribution of educational status of trader 42 Table 6.5 Household expenditure pattern of trader 43 Table 6.6 Distribution of savings of the trader 44 Table 6.7 Distribution of investment pattern of trader 45 Table 6.8 Distribution of monthly rent of the shop 47 Table 6.9 Distribution of monthly salary of employee 47 Table 6.10 Distribution of utility expenditure of the trader 48 Table 6.11 Distribution of earnings from ERS 48 Table 6.12 Distribution of earnings from M2M 49 Table 6.13 Distribution of revenue from selling handset 50 Table 6.14 Distribution of revenue from selling mobile phone accessories 50 Table 6.15 Distribution of reinvestment pattern of trader 51

vii

List of Figures

Figure ID Title of Figures Page No.

Fig 5.1 General subscribers preferred telecom operator 36 Fig 5.2 Subscribers reason to choose preferred telecom operator 36 Fig 5.3 Subscribers reason behind not changing operator 37 Fig 5.4 Subscribers awareness about internet service 38 Fig 5.5 Subscribers purpose of internet use 38 Fig 5.6 Handset usage status in the study area 39 Fig 5.7 Subscribers reason to use specific handset 39 Fig 6.1 Business type of trader 43 Fig 6.2 Profit of traders 46 Fig 7.1 Transport cost of subscriber before mobile phone use with relatives 52 Fig 7.2 Transport cost of subscriber after mobile phone use with relatives 53 Fig 7.3 Transport cost of subscriber before mobile phone use with trade partner 53 Fig 7.4 Transport cost of subscriber after mobile phone use with trade partner 54 Fig 7.5 Transport cost for product marketing before mobile phone use 55 Fig 7.6 Transport cost for product marketing after mobile phone use 55 Fig 7.7 Mobile phone increases social cohesion 56 Fig 7.8 Mobile phone increases social status 56 Fig 7.9 Mobile phone causes wastage of money by young generation 59 Fig 7.10 Mobile phone causes wastage of time by young generation 60 Fig 7.11 Mobile phone creates family problem 60 Fig 7.12 Traders response to this business 61 Fig 7.13 Adverse effect of BTS radiation on human brain 63

List of Map

Map ID Title of Map Page No.

Map 4.1 Study area 29

viii

Acronyms and Abbreviations ARPU Average Revenue Per User BDT Bangladesh Taka BTRC Bangladesh Telecommunication Regulatory Commission BTS Base Transceiver Station CDMA Code Division Multiple Access CSR Corporate Social Responsibility DNA Deoxyribo Nucleic Acid ERS Electronic Retail Service FDI Foreign Direct Investment FnF Friends and Family GDP Gross Domestic Product GOs Government Organizations GS General Subscriber GSM Global System for Mobile GSMA Generalized System of Multiple Access ICT Information and Communication technologyIGA Income Generating Activities KBPS Kilo Byte Per Second LDC Least Developed Country MNCs Multi National Companies NGN Next Generation Network NGOs Non Government Organizations PBTL Pacific Bangladesh Telecom Limited POTS Plain Old Telephone Service PSRAST Physicians and Scientists for Responsible Application of Science and SIM Subscriber Identification Module SMS Short Message Service SPSS Statistical Package for Social Science TS Trader Subscriber UNDP United Nations Development Programme VAS Value Added Service VAT Value Added Tax VoIP Voice over Internet Protocol

etc. Etcetera e.g. for example i.e. that is et. al. and others

Introduction

The socio-economic impact of mobile phone services on rural people in Bangladesh 1

Chapter 1: Introduction

1.1 Background of the study:

There is a great consequence of telecommunication on the economy and the society as

there is increasing, changing and inventing technological know how according to the

requirement. This thing effects both the rural and urban economy on distinct

dimensions as well as they are the tools that help the researcher to reach their

objectives. For providing communication services, mobile phone companies

technology must not come to an end rather it will accompany by the changing

technical systems and needs of general and corporate clients. Apart from some these

greater benefits, both for the service provider and subscribers, there is a tendency of

misusing this services overtime either in the form of VoIP or misuse by terrorists or

immature young generations wasting their productive time and money.

Greater inflow of FDI and internationalization of economy affects both the rural and

urban development accompanied by latest telecommunication technology. People

with low education and literacy are using upgraded technology by means of

telecommunication service thereby changing communication behaviour and come up

with new life style. Apart from the urban area, rural public administration, services,

business workflows and both short and long distance communication between masses

are affected by telecommunication. People residing in rural areas a decade ago never

thought about such a convenient way of communication. The concept of global

village has now been turned into practical in real sense because they become to know

their required information about home and abroad by few clicks on their cellular

phone. The dream of teaching rural children about IT becomes now successful. Today

village farmers are not exploited by middle man. They can know the price of

agricultural products within minutes. Daily buying and selling activities even today

people can do through their cellular phone. Cell bazaar concept may be cited as an

example. Present communication way leads us to thought about the ancient people

how do they communicate without mobile phone. This is just the starting and it is not

foreseeable by us as what the communication technology can do for humanity.

Internet service by the telecom operators is another wing of their service- a type of

VAS greatly contributing towards their revenue which was not successfully provided

by the public sector before two or three years ago. Facility of fiber optics where it has

not reached till becomes available for the subscriber of mobile phone. For

Introduction


telecommunication service provider, consideration rural areas are of great concern.

Village people incurs cost for mobile phone purposes as it meets their day-to-day

requirement.

This study accentuates on some unions-the root level segment of public

administration under defined upazilas. The purpose of this study is to deal with rural

areas because expectation and achievement of telecommunication service in rural

areas will reflect the overwhelming scenario of telecom operators in Bangladesh.

1.2 Rationale of the study:

Bangladesh has emerged as one of Asia's top 10 mobile phone markets in terms of

adding net subscribers. The country has added 8.945 million Generalized System of

Multiple Access (GSMA) mobile users in a single year from July 2005 to June 2006.

Bangladesh now ranked eighth among the top 10 Asian mobile markets in terms of

adding net subscribers during January to March, 2006. The new 8.945 million GSMA

mobile users that have put Bangladesh in the global map is the result of the operators'

continuous effort. According to figures from The Mobile World, Bangladesh had

some 11.7 million subscribers at the end of March 2006, just one month after the

registration cut-off date. The country now has 27.7 million subscribers. Over the last

two to three years, the number of mobile subscribers in Bangladesh has been more

than doubling on an annual basis. In 2006, the subscriber base was continuing to grow

by more than 100%. With the momentum that has been developed on the back of the

government’s deregulation process, strong growth was likely to continue. The entry of

new operators into the market has certainly helped to further boost the competitive

environment. It is evident today that in many developing countries mobile technology

is a substitute for traditional basic fixed services and extends access to formerly

unserved population groups such as the urban poor and rural users. Thus mobile

technology and mobile operators are making significant contributions to universal

service and universal access, both in terms of serving individual users and through

mobile payphones.

Around 80% population of our country resides in the rural area. The economy of

Bangladesh mainly depends on the contribution provided from the rural areas. Now-a-

days many rural men and women have tendency to involve in income generating

activities (IGA) through the different usage of mobile phone. Village phone is the first

Introduction


initiative from GrameenPhone to turn this cerebration into reality. Other mobile phone

operators in successive stage provide such packages for producing income of rural

traders as well as establishing communication channel both with rural to rural and

rural to urban areas. For generating income in terms of investment, employment and

contribution towards GDP as well as promoting social cohesion and responsibility and

use in case of natural disasters- the role of handy phone is significant. So it is

necessary to carry out an intensive study on mobile phone subscribers to see what are

the economic and social impacts of mobile phone usage especially on rural areas.

1.3 Objectives of the study:

i. To know the situation of mobile phone services in Bangladesh.

ii. To know about the social and economic impacts of mobile phone services on

rural people in Bangladesh.

1.4 Scope of the study:

Research on mobile phone can be done from different perspective. But for

convenience and relevancy the researcher covered the study from social and economic

point of view. Since the majority of population resides in the countryside, so their

present status regarding mobile phone usage reveals the overwhelming picture of the

country. This paper analyzes economic benefit that trader derives from mobile phone

business and the communication behaviour of the subscriber before and after mobile

phone usage.

1.5 Limitations of the study:

i. Lack of dexterity of researcher is the first limitation of this thesis paper. This

paper does not turned into expected success due to lack of dexterity.

ii. The study has been carried out at the root level of the administration and the

literacy rate of those areas are low as compared to the urban areas. So

collection of data from the field becomes to much time consuming and tough.

iii. More detailed information regarding the study area has not been properly

collected for limitations of the study time.

iv. Secondary information about mobile phone usage is not available in the study

area which might be convenient for this study. As a result, research becomes

Introduction


greatly dependent on primary data. To conduct primary survey for this study

was really a tough one and some times it created unexpected problems.

1.6 Operational definitions:

1.6.1 Mobile phone:

There are deviation of mobile communication networks into geographic areas

called cells, each served by a base station. Mobile phones are the user’s link to the

network. The system is planned to ensure that mobile phones maintain the link

with the network as users move from one cell to another. To communicate with

each other, mobile phones and base stations exchange radio signals. The level of

these signals is carefully optimized for the network to perform satisfactorily. They

are also closely regulated to prevent interference with other radio systems used,

for example, by emergency services, ambulance as well as radio and television

broadcasters.

1.6.2 Land phone:

Land phone is an instrument that sends and receives voice messages and data

generally connected by wire. Telephones convert speech and data to electrical

energy, which is sent great distances. All telephones are linked by complex

switching systems called central offices or exchanges, which establish the

pathway for information to travel. To communicate with each other, land phones

and phone exchanges exchange optical signals. The level of these signals is

carefully optimized for the network to perform satisfactorily. They are also closely

regulated to prevent interference with other radio systems or optical systems used,

for example, by emergency services, taxis as well as radio and television

broadcasters.

1.6.3 Digital divide:

The term digital divide refers to the gap between those people with effective

access to digital and information technology and those without access to it. It

includes the imbalances in physical access to technology as well as the imbalances

in resources and skills needed to effectively participate as a digital citizen. In other

words, it is the unequal access by some members of the society to information and

communication technology, and the unequal acquisition of related skills.

Introduction


1.6.4 GSM:

Complete elaboration of GSM is Global System for Mobile. To facilitate voice,

text or fax communication GSM generally requires a SIM card and compatible

handset. As with all other communications, speech which is inherently analog is

digitally encoded and transmitted through the GSM network as a digital stream.

Since GSM is a digital network, a modem is not required between the user and

GSM network, although an audio modem is required inside the GSM network to

interwork with POTS. There is also an emergency service, where the nearest

emergency-service provider is notified by dialing three digits (911).

1.6.5 ERS:

Complete elaboration of ERS is Electronic Retail Service. This service is provided

by the telecom operators with a view to smoothly recharging their prepaid account

or to pay monthly postpaid bill. Although this name is provided by

GrameenPhone but in the study this name has been used as the service for

providing top-up i.e. balance transfer to the requested subscribers prepaid or

postpaid account.

1.6.6 Upazila:

The districts of Bangladesh are divided into sub districts, or upazilas. The upazilas

are the lowest level of administrative government in Bangladesh. In 1983, the

local government ordinance of 1982 was amended to redesignate and upgrade the

existing thanas as upazilas.

Introduction


1.7 Organization of the study:

Chapter one mainly contains general description of this research work, background of

the study, objectives, rationale and scope of the study, limitations of the study and

some operational definitions.

Chapter two carries detail modus operandi of the study. It delineates about the steps of

research work including research design, sampling, data collection and processing,

analyzing and dissertation presentation.

Chapter three contains the services of mobile phone companies, their history of

inception, subscriber base, tariff plan and their contribution in our economy.

Chapter four contains the necessary information of the study area such as

demographic, economic, literacy, communication facilities etc.

Chapter five contains general subscribers social and economic information.

Chapter six contains social and economic information of trader subscriber.

Chapter seven carries the impacts of mobile phone service from social and economic

point of view both for general and trader subscribers perspective.

Chapter eight contains major findings in a summarized form.

Chapter nine is about recommendations and conclusion. Recommendations here

prescribed on the basis of outlined problems.

Appendix contains the schedule that is used for the study. It also contains map of

respective upazilas.

Methodology


Chapter 2: Methodology

Methodology means the way or manner by which the study is accomplished, which

refers to the full outcome of the process at a glance. It includes some chronological

steps that are necessary to complete the study successfully. Mode of operation differs

with the nature of the study. Methodology is always a compromise between options

and choices and is frequently determined by the availability of relevant resource and

time. It is very important in the sense that it gives one an idea about how the study has

been conducted. In other words, methodology helps to organize, represent, and

analyze data and information. And their logical expression in a systematical

chronology is to achieve the ultimate goal of the thesis. The methodology is adopted

for the current research work is presented in a sequential manner.

2.1 Research design

2.2 Sampling technique and sample size selection

2.3 Data collection

2.4 Data processing, analysis and presentation

2.1 Research design

A research design is a plan, structure and strategy of investigation so conceived as to

obtain answers to research questions or problems. It is the arrangement of conditions

for collection and analysis of data in a manner that aims to combine relevance to the

research purpose with economy in procedure. The researcher designed this study in a

descriptive manner. On the basis of the schedule and with the help of tables and

figures the data has been presented in a descriptive way.

2.2 Sampling technique and sample size selection

Mobile phone shops, residence, ferry ghats where ever subscribers and traders found

were surveyed. So, random sampling procedure was applied for choosing the sample.

In this case the systematic random sampling was applied. Sampling units are taken at

regular intervals from the sampling frame. This study considers 300 sample and

divides it into two segment i.e. subscriber and trader. Again the sample were divided

as 180 for general subscriber and 120 for trader subscriber. In this study there were

Methodology


two units, one is subscriber of mobile phone and other one is entrepreneur or trader

related to mobile phone.

2.3 Data collection:

Three hundred respondents in the study area have been considered for collecting data.

Schedule has been used as an instrument of data collection. Necessary data has been

collected through schedule survey and self-observation on those samples. Two types

of data have been collected for this study which are briefly discussed below:

2.3.1 Primary data:

Primary data for this study has been collected from two main survey instruments i.e.

schedule (formal interview) and field observation.

a. Formal interview:

In common parlance schedule is an instrument or a list of questions that are directly

or indirectly related with the study. According to the objectives and requirements of

the study a schedule has been framed to collect the required information regarding all

indicators used and other relevant information.

a.1 Schedule for general subscriber:

Generally speaking literacy rate in the rural areas are lower in comparison to other

urban areas. So, special attention was given in designing the schedule considering the

literacy rate. Most of the questions were very simple, easy, straightforward and close

ended whereas some open-ended questions were also included for a balanced

schedule. The survey has conducted on the basis of random sampling. 180 subscribers

were chosen randomly to collect various information regarding their mobile phone

usage status.

a.2 Schedule for trader subscriber:

Number of trader subscriber was restricted only for those who are involved in mobile

phone related business. Schedule for 120 traders were designed with close and open-

ended questions to collect various mobile phone business related information.

b. Field observation:

In some respects the respective schedule and interview guides did not cover some

relevant information. Furthermore, in many cases the respondents gave some

important information, which are not directed to the questionnaire. Therefore, in order

Methodology


to obtain more knowledge additional information was derived through personal

observation.

2.3.2 Secondary data:

In any study secondary data plays a crucial role from the inception to destination

which on the one hand strengthens knowledge base and saves time and resources on

the other. At the initial stage it gives first hand information about the topic of the

study and later it is used to supplement the empirical data. Secondary data have been

collected for this study from different published and unpublished documents such as

research reports, different institutions, journals, articles and internet.

2.4 Data processing, analysis and presentation

In order to analyze, processing of raw data is very much significant. In this stage,

mainly data is being processed and analyzed for the study. Without processing raw

data, it is hard to analyze the raw data. After processing, it is needed to present data

for analysis in an appropriate way. An attempt has been taken to entry the data into

different statistical computer software with a view to analyze data to reach in a

decision. All the collected data (primary and secondary) have been processed and

analyzed chronologically. The findings have been presented in this thesis

appropriately with the help of figures and tables. Some latest computer programs such

as MS Word, MS Excel and SPSS have been used to present and analyze the data.

Before the submission of the final thesis paper an attempt has been taken in the best

possible way to go through the draft thesis by the course supervisor side by side

presentation and analysis of this thesis paper has been changed as per his view. After

completing analysis of the data, the final output has been presented in text format by

writing this thesis.

After necessary correction and suggestion as suggested by supervisors, a final

dissertation paper has been prepared for final submission.

Methodology


2.5 Steps of the study:

a) Conceptualization: It was inevitable to maturate a clear as well as wide

concept of the different issues that was very much pertinent with the present

research topic.

b) Selection of the study area: The study area covers nine upazilas under six

different districts.

c) Sampling technique and sample size selection: A systematic sample is

spread evenly through the target population. Systematic random sampling

technique was applied for survey over 300 sample.

d) Schedule preparation: A schedule was prepared to conduct reconnaissance

survey.

e) Reconnaissance survey: Reconnaissance survey was conducted to get idea

about the study area and other necessary corrigendum of the schedule.

f) Finalization of schedule: After necessary rectification of the schedule final

schedule was prepared.

g) Field survey and data collection: After finalization of schedule data has been

collected from the study area.

h) Data processing and analysis: In this step raw data were processed.

i) Draft dissertation presentation: After processing and analyzing data, a draft

dissertation was submitted to the supervisor for necessary correction and

suggestion.

j) Final dissertation presentation: After necessary correction and suggestion as

suggested by supervisor, a final dissertation paper has been prepared for final

submission.

Mobile phone services in Bangladesh


Chapter 3: Mobile phone services in Bangladesh

3.1 General:

The telecommunication market from the perspective of Bangladesh in the recent year

becomes too much competitive than ever. Recent growth in the Bangladesh mobile

market can be attributed to factors such as the deregulation of the telecommunication

sector, low levels of tele-density, inadequate fixed phone infrastructure, high

competition following the entry of two new operators (Banglalink and Teletalk) and,

particularly, massive foreign direct investment (FDI) by telecom giants like Telenor,

Telekom Malaysia (TM), Orascom, SingTel, and most recently by UAE-based Warid

Telecom. Foreign operators, in collaboration with local partners, have been working

with the infrastructure to remove entry barriers and make mobile telephony more

affordable and widen the base of mobile subscribers. At present there are six mobile

phone operators continuing their business operation in Bangladesh. Of them, only one

is owned by the government and others are as Foreign Direct Investment (FDI). The

contribution of those mobile phone companies in the domestic economy is worth to

mention. They make the life easier both in rural and urban areas. The activities of

mobile phone operators are regulated by Bangladesh Telecommunication Regulatory

Commission (BTRC).

3.2 Mobile phone operators: History of inception

The first cellular operator was Bangladesh Telecom (Pvt.) Limited (BTL), which

received permission to provide service in 1989. The permission transferred initially to

Pacific Bangladesh Telecom Limited (PBTL) who started their operation in 1993.

Sheba Telecom (Pvt.) Ltd. was granted license in 1989 to operate in the rural areas of

199 upazilas and later they were also allowed to extend to cellular mobile radio-

telephone services.

GrameenPhone was offered a cellular license in Bangladesh by Ministry of Posts and

Telecommunications in November 28, 1996. It quickly established market leadership,

owing to its relationship with the not-for-profit Grameen Bank. After almost 10 years

of successful business operation in Bangladesh GrameenPhone announces its 10

million subscribers base in November 5, 2006. Aktel was awarded license in 1997.



Later in 2004 most of the share of PBTL was purchased by SingTel. PBTL operates

under the brand name Citycell.

After a period of declining market share, Banglalink purchased Sheba’s license in

2004. Citycell entered the market in 2004, followed by Warid in December 2005. The

incumbent fixed line operator, BTTB also entered the market via Teletalk. In July,

2004 it was reported that Orascom Telecom is set to purchase through a hush-hush

deal the Malaysian stakes in Sheba Telecom, as it had failed to tap the business

potentials in Bangladesh.

High penetration rate of mobile phone had been haltered by imposing a controversial

tax of US$18 on each new connection on national budget 2004-2005 in the year 2004.

In response to strong criticism, the tax was reduced to US$13.50 in August 2005.

Operators thought that the new tax will pose a serious entry hurdle for low-income

earners and will significantly stifle growth expectations. However, industry specific

taxation - taxes applying to the mobile industry and not others - remains high. An

obvious example is the US$16 “royalty” charge, paid annually per connection, which

applies only to mobile subscriptions and not fixed subscriptions.

Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh.

Warid is the first GSM operator in Bangladesh providing NGN for optimum

utilization of frequency and enhances speed and quality of both voice and data

services. Warid is the 6th mobile phone carrier to enter the Bangladesh market. It is

wholly owned subsidiary of Warid Telecom International LLC which is the part of an

Abu Dhabi based consortium led by His Highness Sheikh Nahayan Mabarak Al

Nahayan, a Member of the Royal Family of Abu Dhabi, and the Honorable Minister

of Higher Education and Scientific Research of the United Arab Emirates.

Warid officially launched their commercial services in Bangladesh on the 10th of

May, 2007, with a GSM Mobile Cellular network covering 61 districts of the country

and encompassing 70% of the mobile phone using population- the single largest

launch the country has ever seen.

On 19th July, 2007 Warid Telecom announced in major dailies of having achieved

one million subscribers in the first of 70 days of operation. As of January, 2008 Warid

has secured 2.37 million subscribers and is ranked fourth among the six operators.



Being fallen in competitive ambience all the operators are paying their keen

concentration to VAS. In case of providing VAS it can be claimed that the SIM genie

menu by Warid telecom is highly structured. People in the rural areas are not capable

to memorize the service code for different VAS. The same VAS Warid provides by

gently clicking on the keypad of their mobile phone.

3.3 Subscriber base of telecom operators in Bangladesh:

Growth of subscriber base depends on the business policy of the operators. Different

operator attracts subscriber from different economic strata. As for example, Orascom

always makes a good market wherever they operate their business. Recently Orascom

initiate their business in North Korea and the company expects sign up of 100,000

subscribers when they will launch their new GSM network. This is because the

company is confident in achieving good subscriber base from their business policy. In

Bangladesh, at present Banglalink and Warid tries to cover all sects of community

under their network by paying more attention towards the subscribers expectation.

Table 3.1: Distribution of subscriber base of mobile phone operators in Bangladesh December 2007 January 2008

Name of operator Subscriber Name of operator Subscriber GrameenPhone Ltd. (GP) 16.48 GrameenPhone Ltd. (GP) 16.88

TMIB (Aktel) 6.40 TMIB (Aktel) 7.28Sheba Telecom Ltd. (Banglalink) 7.08 Sheba Telecom Ltd. (Banglalink) 7.45

PBTL (Citycell) 1.41 PBTL (Citycell) 1.45 Teletalk Bangladesh Ltd. (Teletalk) 0.85 Teletalk Bangladesh Ltd. (Teletalk) 1.00 Warid Telecom International L.L.C

(Warid) 2.15 Warid Telecom International L.L.C

(Warid) 2.37

Total 34.37 Total 36.42 [Source: BTRC]

• The subscribers' numbers are declared by the mobile operators. • Subscribers in Millions

Developing countries now account for more than half of mobile subscriber growth

worldwide, with the top 10 adding around 285 million new subscribers in 2006 alone.

The world's top 10 mobile growth markets are all countries considered to be

"emerging" in Europe, Asia/Pacific, Africa, and Latin America. The mobile phone

operators in Bangladesh are trying to provide the best services for their valued

subscribers within their existing infrastructure and technology at their disposal. The

companies are coddled in the cut-throat competition which leads to the substantial

increase in their customer base. Another crucial reason for mobile service growth in

our country has accompanied economic expansion, deregulation, and the need for



communications infrastructure where there is a lack of fixed-line connectivity.

Research on mobile phone usage in different countries has found that with every 10

percent increase in mobile phone penetration, a country's GDP increases by 0.6

percent. As the table below shows, India and China are way ahead of the pack in

terms of sheer volume. India added the most, more than 73 million new mobile

customers, while China, in second place, added close to 68 million new users. The

next country on the list, Pakistan, added 29 million. The U.S. added 23 million

subscribers last year, which would have put it in fifth place.

Table 3.2: Distribution of world’s Top 10 emerging mobile growth markets Country Subscriber addition* in 2006 Total subscriber* Dec 2006 % increase over Dec 2005

India 73.56 149.5 97China 67.68 461.08 17.2

Pakistan 28.9 48.29 147 Russia 26.12 151.92 21

Indonesia 23 65 38.6 Ukraine 19.03 49.21 63.1 Brazil 13.7 99.92 15.9

Bangladesh 12 21.76 135 Nigeria 11.4 30 38 Vietnam 10 22.5 80

[Source: www.lightreading.com] * Figures indicating in million

3.4 Tariff plan of telecom operators: Past and present

It is obvious that when one mobile phone operator becomes market leader, then it will

try to control and regulate the existing market for ensuring great amount of persisting

rise of their revenue. GrameenPhone as market leader did the same task as it ought to

be. Initially GrameenPhone provided only voice communication at the tariff rated

BDT 6.00 (US$ 0.085) exclusion of 15 percent VAT. This monopoly continues until

the addition with TMIB (Aktel). This tariff was too much excessive in comparison to

the tariff rate of other developing countries. This exploitation was not ended here.

Since most of the mobile phone subscriber whether in previous or at present are of

prepaid type, they were bound to recharge their prepaid account in order to be

connected after the expiry of the limited validity period. Because after the expiry of

their prepaid card all sorts of outgoing and incoming calls were barred. Here it is

needed to mention that most of the subscribers were not enabled to recharge their

prepaid account in that time and they were forced to recharge their prepaid account

because the operators till then did not initiated other lower amount prepaid scratch



card other than BDT 300 and BDT 600. This policy was extremely in disfavour

especially for rural people.

Table 3.3: Validity of prepaid scratch card Operator Validity of prepaid

scratch card BDT 300 Validity of prepaid scratch card BDT 600

Other facilities

GrameenPhone 21 days 45 days All outgoing and incoming calls were barred Aktel 21 days 45 days

[Source: News letter of the respective operator]

Later this duopoly trend has been broken by Banglalink-wholly owned subsidiary of

Orascom telecom called “Mobile Price War”. The entry of Banglalink in February

2005 has sparked a price war. Banglalink's attractive launch offer included a new

connection and handset at a low start-up cost of BDT 3400.00 (US$ 51). Following

Banglalink, three other private operators - GrameenPhone, Aktel and Citycell have

also come up with various value-added offers resulting in an intense price battle. The

development of a competitive mobile phone market is expected to prompt an easing in

cell phone tariffs going forward, after years of escalation in what was a captive

market. Consumers will also benefit from cheaper connection, call rates and various

value added services.

Six months before BTRC further amends the tariff plan of mobile phone companies.

Side by side it gives some legislative orders to the operators in response to the

remonstrance’s posed by civil society. BTRC fixes that no mobile phone operator can

charge not more than BDT 2.00 and not lower than BDT 0.25 for making voice call.

In previous, different mobile phone companies offered free air time minutes to the

same operators but this causes serious inconvenience to social and economic issues.

Such offers make young generations to more use of this service. In a competitive

market different operators provides lower tariff call rate for the subscribers. To do so

they furcated time period on different basis. The operators provide very low call tariff

during the off-peak hours and reduced tariff during ascertained hour and generalized

call tariff for the rest of the time of the day. Apart from this, operators provide pulse

facility during phone call. Some provide 1 second pulse, some provide 15 second

pulse and some provide 30 second pulse. But most of the operators provide 30 second

pulse. The tariff for sending SMS vary from BDT 0.10 to BDT 2.50 including

international SMS. All the operators are providing international roaming for voice call

and for sending and receiving SMS. No prepaid subscribers are entitled to avail this



service. Only post paid subscribers can avail this service who bears international

credit card with validity of at least six months. Present tariff status of mobile phone

operators can be understood by the following table:

Table 3.4: Present tariff plan of telecom operators Operator 9am-5pm 5pm-12am 12am-8*/9am 8am-12am 12am-7am 24 Hours

GrameenPhone 1.5 2.00 N/A N/A 0.30 & 1.00 N/A Aktel N/A N/A N/A N/A 0.30 1.00

Banglalink 1.15 1.75 0.29 & 0.99 N/A N/A N/A Warid 0.99 1.80 0.25 & 0.99 N/A N/A N/A

Citycell BDT 0.25 for Citycell to Citycell all day and BDT 1.00 with other operator Teletalk* N/A N/A 0.60 & 1.00 1.40 & 1.90 N/A N/A

[Source: Respective website of the telecom operator] *Lower call rates applicable within own operator and higher call rates for other operator *The call rate stated here is for prepaid package mostly used by subscriber.

Viewing the present competitive scenario among telecom operators it can be hoped

that the tariff rates will further lessen and the operators will pay more and more

attention towards VAS.

3.5 Mobile phone operators in rural area:

How can modern communication technologies benefit people at the grassroots? A

question whose answer is often more complicated than the simple solution is to

introduce rural people about the different aspects of information and communication

technology. The investment, contribution, achievement of mobile phone operator

towards the people of rural areas are worth to mention. The same scenario will not

prevail to the developed economy. A significant portion of population of our country

resides in the rural area. Realizing this very fact, GrameenPhone for the first time

launched village phone programme in March 1997 when the first village phone

became operational in Patira. Grameen Telecom (GTC) was established in 1995 on

the initiative of Grameen Bank. The main objective is to provide universal access to

telephone to the people living in the rural areas of Bangladesh. GrameenPhone Ltd.

(GP) is a joint venture company formed by Grameen Telecom and three other

companies: Telenor Invest AS of Norway, Marubeni Corporation of Japan and

Gonophone Development Corporation of USA. There was no optimistic plan or

initiative to increase telephone penetration in rural Bangladesh, neither from the

government nor from any other operators. Only Grameen has taken such an initiative

and planned a “Village Phone” programme to provide easy access to telephones all

over rural Bangladesh. A telephone in a village does not just ensures voice



communication from village to village, rather it can be treated as an important tool for

development, i.e. a new weapon to fight against poverty. It can be treated as the first

step to bringing the potential of the information revolution to the doorstep of villagers.

Later Aktel and Banglalink takes the same initiative for providing mobile phone for

business purpose with some lucrative offers. Aktel introduces Aktel Uddokta and

from Banglalink PCO and other Call and Control package.

As village remains as the heart of agricultural activities which contributes major part

of our economy. People’s occupations are now being diversified and a significant

portion of rural people live outside their villages. Labour mobility has increased

enormously in the recent past. Practically speaking, millions now work outside their

own villages-even abroad. As a result of which the usage of mobile phone increased

tremendously. In recent times the volume of rural- urban trade has increased at a rate

much higher than the growth of the economy. Two reasons are present here i.e. labour

mobility and marketing of agricultural and small and cottage industries.

3.6 Mobile phone benefits national economy:

In Bangladesh the impact mobile phone is far-reaching. A sophisticated and high-

quality telecommunication infrastructure permits capital to be deployed productively

and efficiently. It is essential to have a mobile phone service that is cheap, widely

available and ensuring high quality service for evenly disseminating the blessings of

communication technology. Along with mobile phone, fixed phones are performing

the same service. But the penetration rate of fixed phone is lower as compared with

mobile phone. It will be comprehensible from the statistics of year 2003-2005.

Table 3.5: Fixed and mobile teledensity in Bangladesh Type of operator 2003 2004 2005 Mobile phone penetration 1.13% 2.28% 6.00% Fixed phone penetration 0.6% 0.75% 0.9%

[Source: Bangladesh Telecommunication Regulatory Commission]

From the table it is visible that the vast majority of the population does not have

access to telecommunication services although there is greater efforts from the

operators.

Whenever foreign direct investment inflows to the domestic economy, then it can be

presumed that there will occur multifarious changes in that corresponding economy.



The impacts are intertwined with one another. When FDI enters in the domestic

economy as a form of providing information and communication technology, it

provides greater service to that community-making their life more comfortable, easier,

informative and brings economic excellence in their business operation. As

telecommunication business covers the involvement of human efforts, technical

expertise of several fields, it creates great employment opportunity in our country.

Besides traders engaged in mobile phone business are refurbishing their economic

status by multifarious usage of mobile phone. Subscribers become beneficiary with

the help of mobile phone as it encompasses less time consuming in their relevant

professional field than previous. The most mentioning benefits from the mobile phone

is the government as it collects revenues, royalties, duty, fee, tax from all the sectors

associated with mobile phone business.

3.6.1 Contribution to government revenue:

Government is one of the greatest beneficiary out of several beneficiaries of mobile

phone business. In a number of ways the government becomes beneficiary. Most of

the sectors are from VAT, tax, general duty and supplementary duty on importing

capital machinery and handsets and fees. In the year 2005 total revenue worth of

US$256 has been added to government treasury. Besides, the amount of tax taken

from the mobile phone operators in 2005 amounted to US$174m, or 27% of their

revenues. This can be understood by the following table:

Table 3.6: Source of revenue from mobile phone industry Government revenue US $ (in million) Royalty on handsets 46 Import duty on handsets 11 VAT on usage charges and handset sales 112 Revenue share charges 8 Connections & supplementary duty 36 BTS royalty 1 Import duty on capital machinery 5 Income tax 37

Total 256 [Source: www.gsma.com]

3.6.2 Contribution towards economy:

An economy will be benefitted from the usage of mobile phone when all the persons

related to telecommunication i.e. whether ERS trader or high technical expertise

becomes beneficiary. All the persons engaged in telecommunication business can



serve from their own position towards the economy. A gross of US$ 750m had been

added by the mobile phone industry in our domestic economy of which US$ 256m

was retained by the telecom operators and they usually use it to pay employee salary,

tax to the government. The remnant portion was by dealers of mobile phone (US$

57m), mobile terminal manufacturers (US$ 72m), fixed network operators (US$

35m), and a total of US$ 330m to equipment supplier.

Table 3.7: Inbound revenue to government exchequer Industry role Revenue US$ Cost US$ Added US$

Dealers 283 226 57 Mobile Network Operators 599 343 256 Terminal manufacturers 227 155 72 Support service suppliers 33 – 33 Fixed Network Operators 54 19 35 Component suppliers to network equipment suppliers

114 – 114

Component suppliers to terminal suppliers 155 – 155 Other capex suppliers 28 – 28 Total US$ 750

[Source: www.gsma.com]

3.6.3 Contribution towards employment:

In case of generating employment opportunity the role of telecommunication is very

crucial. Till year 2005, telecommunication sector creates employment opportunity for

2,37,800 people. Almost a quarter of a million of Bangladeshi people depends on the

mobile phone and related industry either directly or indirectly. Employment creation

category can viewed from four different angle. They are as follows:

i. There is a direct employment opportunity in the mobile phone industry. ii. There is a provision of creating supporting employment opportunity by

outsourced work and taxes that the government subsequently spends on

employment generating activities. iii. There is a indirect category, which covers other costs as well as profit

generated, which is subsequently spent on employment generating activities,

and finally

iv. There is induced employment category which refers to jobs created as

employees and other beneficiaries spend their earnings, thereby creating extra

employment.



The contribution of mobile phone companies towards creating employment

opportunity in Bangladesh can be understood table 3.8 :

Table 3.8: Employment creation statistics by mobile phone industry as up to 2005 Employment from mobile phone services Direct Support Indirect Induced Total Dealers 19.9 19.9 10.0 29.9 79.7 Mobile network operators (MNOs) 4.4 38.2 3.8 27.9 74.3 Support services suppliers 0.0 23.0 5.8 17.3 46.1 Fixed network operators (FNOs) 0.6 5.2 0.7 3.9 10.4 Other capex suppliers 6.8 6.8 3.4 10.3 27.3 Terminal suppliers 0.0 0.0 0.0 0.0 0.0Terminal component suppliers 0.0 0.0 0.0 0.0 0.0 Network equipment manufacturers 0.0 0.0 0.0 0.0 0.0 Network equipment component suppliers 0.0 0.0 0.0 0.0 0.0

Total 31.7 93.1 23.7 89.3 237.8[Source: www.gsma.com] * Figures indicating in thousand

Profile of the study area


Chapter 4: Profile of the study area

One of the major tasks of this study is to subtly analyze the study area and the various

issues relating to mobile phone use. This study covers nine upazilas of Khulna,

Bagerhat, Chuadanga, Barisal, Lalmonirhat and Gazipur district. The upazilas were

Batiaghata, Dumuria, Terokhada, Rupsa, Rampal, Alamdanga, Wazirpur, Kaligonj

and Gazipur sadar upazila. Some villages from those upazilas were randomly selected

for collection of data. This paper mainly concentrates on the general demographic

information, communication facilities and economic characteristics of the study area.

4.1 Study area: Demographic, economic and communication features

4.1.1 Batiaghata Upazila:

Area and location:

Batiaghata upazila is situated in Khulna district with an area of 248.33 sq km, is

bounded by Kotwali (Khulna), Dumuria and Rupsa upazilas and Sonadanga thana on

the north, Dumuria upazila and Paikgachha upazila on the west, Dacope, Paikgachha

and Rampal upazilas on the south, Rampal, Fakirhat and Rupsa upazilas on the east.

Population:

According to the population census 2001, total population in Batiaghata upazila were

128184 of which 51.07% were male and 48.93% were female. Muslim 50.91%,

Hindu 49.03%, others 0.06%. The density of population is 1750 per sq km.

Literacy and educational institutions:

The literacy rate in Batiaghata upazila is very much lower. Average literacy rate is

37.7% of which male covers 46% and female is 29%. Educational institutions include

1 university, 4 college, 26 secondary school, 67 government primary school, 44 non-

government primary school and 4 madrasa.

Main occupations:

Agriculture is the main occupation of this upazila. Agriculture covers 42.94%, fishing

1.64%, agricultural labourer 19.67%, wage labourer 6.35 %, commerce 10.53%,

transport 2.22%, construction 1.06%, service 4.85% and others 10.74%.



4.1.2 Dumuria Upazila:

Area and location:

Dumuria is the largest upazila in Khulna district with an area of 454.23 sq km. is

bounded by Manirampur, Abhaynagar and Phultala upazilas on the north, Batiaghata

and Paikgachha upazilas on the south, Khan Jahan Ali, Khalishpur and Sonadanga

thanas and Batiaghata upazila on the east, Tala and Keshabpur upazilas on the west.

Population:

According to the population census 2001 total population in Dumuria upazila were


Hindu 42.83%, Christian 0.01%, Buddhist 0.01%, and others 0.09%. The density of

population is 2047 per sq km.


The average literacy rate in Dumuria upazila is 36.1% of which male covers 45.4%

and female is 26.5%. Educational institutions include 7 college, 33 high school, 8

junior school, 46 madrasa, 110 government primary school and 53 non-government

primary school.

Main occupations:

Agriculture is the main occupation of Dumuria upazila. Agriculture covers 46.29%,

Agricultural labourer 16.77% , wage labourer 4.09%, commerce 12.85%, industry

2.01%, transport 3.24%, service 4.66% and others 10.08%.

Communication facilities Roads:

Pucca road covers 61 km, semi pucca 76 km., mud 467 km and waterways 32 nautical

mile.

4.1.3 Terokhada Upazila:

Area and location:

Terokhada upazila is situated in Khulna district with an area of 189.48 sq km, is

bounded by Kalia upazila on the north, Rupsa upazila on the south, Mollahat upazila

on the east, Dighalia upazila on the west.



Population:

According to the population census 2001 total population in Terokhada upazila were


Hindus 24.20%, others 0.3%. The density of population is 997 per sq km.


Average literacy rate in Terokhada upazila is 31.6% of which male covers 37.1% and

female is 25.8%. Educational institutions include 2 college, 10 high school, 51

primary school, 6 madrasa. Noted institution Ikhri Katenga Fazlul Haque High

School.

Main occupations:

Agriculture remains the main occupation in Terokhada upazila. Agriculture covers

51.94%, fishing 2.59%, agricultural labourer 19.9%, service 7.56%, wage labourer

1.58%, commerce 6.88%, transport 1.54% and others 8.01%.

Communication facilities:

Roads are the main communication path of this upazila. Of the total roads pucca road

covers 24 km, semi pucca 32.57 km and mud road 209 km.

4.1.4 Rupsa Upazila

Area and location:

Rupsa Upazila is situated in Khulna district with an area of 120.15 sq km, is bounded

by Terokhada upazila on the north, Fakirhat and Batiaghata upazilas on the south,

Mollahat and Fakirhat upazilas on the east, Kotwali (Khulna) thana and Batiaghata

upazila on the west.

Population:

According to the population census 2001 total population in Rupsa upazila were

150185 of which 51.98% were male and female were 48.02%. Muslim 82.28%,

Hindu 17.55%, others 0.17%. Density of population is 1347 per sq km.


Average literacy rate in Rupsa upazila is 40.4% of which male covers 46.5% and

female is 33.3%. Educational institutions include 46 government primary school, 14

non-government primary school, 5 lower secondary school and 23 madrasa.



Main occupations:

A very negligible portion of population is engaged in agricultural sector. Most of the

people involves in trade and service. Agriculture covers 18.02%, agricultural labourer

6.6%, wage labourer 11.81%, commerce 20.91%, transport 6.35%, construction

2.09%, industry 2.87%, service 17.10%, others 14.25%.


This upazilas communication system mainly based on mud roads. Roads include

pucca 19 km, semi pucca 26 km and mud road 257 km.

4.1.5 Rampal Upazila

Area and location:

Rampal upazila is situated in Bagerhat district with an area of 335.46 sq km, is

bounded by Bagerhat Sadar and Fakirhat upazilas on the north, Mongla and

Morrelhonj upazilas on the south, Morrelganj and Bagerhat Sadar upazilas on the

east, Batiaghata and Dacope upazilas on the west.

Population:

According to the population census 2001 total population in Rampal upazila were

167070 of which 50.83% were male and female were 49.17%. Muslim 75.31%,

Hindu 24.42%, others 0.27%.


Average literacy rate in Rampal upazila is 45.5% of which male covers 51.5% and


government primary school, 16 junior school, 46 non-government primary school and

88 madrasa. Noted old institution is Gilatala Multilateral High School (1929).

Main occupations:

Agriculture covers 33.52% of total population of the upazila. Among others, fishing

3.63%, sericulture 1.79%, agricultural labourer 20.13%, wage labourer 6.92%,

commerce 13.97%, transport 1.34%, service 4.87% and others 13.83%.



4.1.6 Alamdanga Upazila

Area and location:

Alamdanga upazila is situated in Chuadanga district with an area of 360.4 sq km is

bounded by Gangni and Mirpur upazilas on the north, Chuadanga Sadar and

Damurhuda upazila on the south, Kushtia and Jhenaidaha Sadar and Harinakunda

upazilas on the east and Meherpur Sadar on the west.

Population:

According to the population census 2001 total population in Alamdanga upazila were

245524 of which male were 51.66% and female were 48.34%; Muslim 96.26%;

Hindu 3.53% and others 0.21%.


Average literacy rate in Alamdanga upazila is 23.2% of which male covers 28.3% and

female is 17.7%. Educational institutions include 4 college, 7 high school, 4 junior

high school, 84 government primary school, 48 non-government primary school.

Noted institution: Alamdanga High School (1914).

Main occupations:

Agriculture is the occupation of majority population. Professional pattern covers

agriculture 45.36%, agricultural labourer 26.45%, wage labourer 2.29%, weaving

1.61%, industry 1.37%, commerce 12.3%, service 3.57%, transport 1.25% and others

5.8%.


Mud road covers major portion of this upazilas communication system. Roads include

pucca road 56.5 km, semi pucca road 35.5 km and mud road 327.9 km and railway-

22 km.

4.1.7 Wazirpur Upazila:

Area and location:

Wazirpur upazila is situated in Barisal district with an area of 248.35 sq km, is

bounded by Agailjhara and Gournadi upazilas on the north, Banaripara and

Jhalokhati Sadar upazila on the south, Babuganj upazila on the east, Kotalipara and

Nazirpur upazilas on the west.



Population:

According to the population census 2001 total population in Wazirpur upazila were

227115 of which male covers 50.6% and female were 49.4%; Muslim 74.5%, Hindu

25% and others 0.5%. The density of population is 1463 per sq km.


Average literacy rate in Wazirpur upazila is 47.6% of which male covers 52.9% and


government primary school, 85 non-government primary school, 75 madrasa. Old

institutions: Revrouddradi Government Primary School (1887), Atipara Government

Primary School (1914), Habibpur High School (1856).

Main occupations:

Agriculture is the main source of occupation in Wazirpur upazila. It covers 39.71% of

total occupation thereafter agricultural labourer 23.52%, wage labourer 2.7%,

commerce 14.09%, construction 1.07%, service 8.56% and others 10.35%.


Waterways are comparatively higher than roadways. Roads cover pucca 28 km, semi

pucca 60 km and mud road 400 km. Waterways include 28 nautical mile.

4.1.8 Kaligonj Upazila:

Area and location:

Kaligonj upazila is situated in Lalmonirhat district with an area of 236.96 sq km, is

bounded by Hatibandha upazila and West Bengal of India on the north, Gangachara

and Kishoreganj (Lalmonirhat) upazilas on the south, Aditmari upazila on the east and

Jaldhaka upazila on the west.

Population:

According to the population census 2001 total population in Kaliganj upazila were

198108 of which male were 51.48% and female were 48.52%. Muslim 78.43%,

Hindu 21.17%; Christian 0.12%, Buddhist 0.04% and others 0.24%. The population

density is 1385 per sq km.




Average literacy rate in Kaligonj upazila is 31% of which male covers 39.8% and

female is 23%. Educational institutions include 6 college, 2 government high school,

17 non-government high school, 58 government primary school, 72 non-government

primary school, 7 madrasa, 1 vocational high school, 1 computer training centre.

Noted institutions are Madanpur Bairati Primary School (1865), Kakina Mahima

Ranjan Memorial Bilateral High School (1901).

Main occupations:

Agriculture is the main source of occupation in this upazila. It encompasses 52.35%

of total occupation thereafter agricultural labourer 26.24%, wage labourer 3.15%,

commerce 7.39%, services 2.85% and others 8.02%.


Communication in this upazila includes mainly road and railways. Roads cover pucca

32 km, semi pucca 0.9 km, mud road 350 km and railways 40 km.

4.1.9 Gazipur Sadar Upazila:

Area and location:

Gazipur sadar upazila is situated in Gazipur district with an area of 446.38 sq km, is

bounded by Sreepur upazila on the north, Savar upazila and Uttara thana and Rupganj

upazila on the south, Kaliganj (Gazipur) and Rupganj upazilas on the east, Kaliakair

and Savar upazilas on the west.

Population:

According to the population census 2001 total population in Gazipur sadar upazila

were 588492 of which 53.83% were male and female were 46.17%. Muslim 92.46%,

Hindu 7.04%, Christian 0.35%, Buddhist and others 0.15%. The density of population

is 2505 per sq km.


Average literacy rate in Gazipur sadar upazila is 43% of which male covers 51.3%

and female is 34.7%. Educational institutions include 3 universities, 2 technical

institution, 4 agricultural institution, 3 government college, 1 non-government

college, 2 government secondary school, 62 non-government secondary school, 6



junior school, 126 government primary school, 41 non-government primary school, 1

primary teacher's training institute, 1 telecommunication staff college, 1 agricultural

training institute and 1 postal academy.

Main occupations:

Agriculture covers 26.63% of total occupation thereafter agricultural labourer 7.68%,

wage labourer 2.94%, industry 1.41%, commerce 14.71%, transport 4.73%,

construction 1.79%, service 28.31% and others 11.8%.


Roadway is the main path to communicate which covers pucca 245 km, semi pucca

290 km, mud road 377 km. Apart from roads railways cover 45.1 km and waterways

42 nautical miles.



4.2 Quick look of the study area:

Map 4.1: Study area

Rupsa Rampal Wazirpur Alamdanga Gazipur

Sadar Kaligonj

Terokhada Dumuria Batiaghata

Legend

Socio-economic status of general subscriber


Chapter 5: Socio-economic status of general subscriber

5.1 Socio-demographic features of general subscriber:

One important part of research work is to delineate the socio-demographic description

of the sample. This is necessary because it is intertwined with research topic, research

area and sample of the study. Socio-demographic information helps researcher to

analyze various variables to find out predetermined objectives. Mostly required

variables are distribution of age and sex, family size, educational status etc. The

socio-demographic features of general subscriber are as follows:

5.1.1 Age structure:

Analysis of age of general subscriber is very much relevant with the study. Because

usage of mobile phone once treated as the communication medium of businessman

whose age pattern were 30-60 years. But now-a-days this mobile phone becomes an

essential tool of communication irrespective of age of the subscriber.

Table 5.1: Age distribution of general subscriber Subscribers age Frequency % Average age

16-30 115 63.9

30.64 ~ 31

31-45 52 28.946-60 11 6.061-75 2 1.2 Total 180 100.0

[Source: Field survey 2008]

In the study area it was found that mobile phone is mostly used by young generation.

The maximum number of subscriber is within the age group 16-30 year (63.9%). The

average age of the general subscriber was found 31 years.

5.1.2 Sex distribution:

The usage of mobile phone is not confined to male only rather a great number of

female uses mobile phone now-a-days for various reason. Using mobile phone by

female social cohesion has been tremendously increased.

Table 5.2: Sex distribution of general subscriber Sex Frequency %

Male 154 85.6 Female 26 14.4 Total 180 100.0




Keeping in view the requirements of female, Banglalink is the first telecom operator

in Bangladesh which pays proper tribute to female community by introducing “Ladies

First!” package. This package makes their communication behaviour very easier.

5.1.3 Distribution of sex according to age group:

One of the important task of the research is to classify the sample according to its age

group. By such classification it will be easier to find the user of mobile phone of

specific age group.

Table 5.3: Sex distribution according to age group Age group (years)

Frequency (Male)

% of male from total male subscriber

Frequency (Female)

% of female from total female subscriber

16‐30 95 61.04 18 69.24 31‐45 48 31.17 6 23.08 46‐60 9 5.85 2 7.68 61‐75 2 1.94 0 0.00 Total 154 100.0 26 100.0


Table 5.3 shows that most of the subscriber of both the sex falls under the age group

16-30 years. 61.04 male subscriber out of 154 comprises between 16-30 years and

69.24% female subscriber out of 26 comprises between 16-30 years. 28.9% subscriber

are from 31-45 years age group.

5.1.4 Family size:

To work with family size of general subscriber is an important issue while analyzing

their various socio-economic aspects. The usage of mobile phone also depends on the

family size. Because if the family size is relatively larger and if the family members

resides in different upazila or city or even abroad then they communicate with them

with the help of mobile phone.

Table 5.4: Family member distribution of general subscriber Family member Frequency %

2-5 114 63.3 6-9 58 32.3

10-12 8 4.4 Total 180 100.0

[Source: Field survey 2008] Around 114 (63.3%) general subscribers family size were found between 2-5. 32.3%

general subscribers family size were found between 6-9 and the share of family size

between 10-12 is very insignificant.



5.1.5 Educational status:

Generally the literacy rate in the rural areas are lower as compared to the other urban

areas. Although this study found that in the rural areas the number of higher educated

people are lower i.e. 4.4% M.A. pass and 27.4% are graduate.

Table 5.5: Distribution of educational status of general subscriber Literacy rate (Subscriber) Frequency %

Illiterate 2 1.1 5 pass 12 6.7 8 pass 21 11.7 S.S.C. 33 18.3 H.S.C. 51 28.3

Degree/hons. 50 27.8 M.A. 8 4.4

Others 3 1.7 Total 180 100.0

[Source: Field survey 2008] The number of general subscriber with educational status of H.S.C. pass lies higher

(28.3%) in the study area and 33 general subscriber found with educational

background of S.S.C. pass.

5.1.6 Previous communication type:

Before the availability of mobile phone people both in rural an urban areas were

habituated to communicate with their relatives via postal way, land telephone, using

vehicle or by physically movement. But after the availability of mobile phone peoples

usage behaviour of other tools of communication has been substantially reduced.

Table 5.6: Distribution of previous communication type Mode of communication Frequency %

No communication required 2 1.1 Postal way 110 61.1 Vehicle movement 22 12.2 Physical movement 14 7.8 Land phone 31 17.2 No comments 1 0.6 Total 180 100.0


5.2 Economic features of general subscriber:

The analysis and interpretation of economoic features of general subscriber is

essential to see their mobile phone usage status. Now-a-days the usage of mobile

phone by its subscriber does not greatly depends on their economic status. This study

found that the people who do not have source of income uses mobile phone. Because



mobile phone becomes indispensable communication tool for all types of people. This

section covers subscribers professional distribution, income pattern, household

expenditure, savings of the subscriber etc.

5.2.1 Professional status:

It is necessary to classify the respondents according to their professional pattern. For

the convenience of study general subscriber of mobile phone were classified into

several segments. The study considers businessman, service holder, student,

housewife and unemployed person as general subscriber of mobile phone. Because

they hold the majority share of the society.

Table 5.7: Professional distribution of general subscriber Occupation of subscriber Frequency %

Businessman 93 51.67 Service holder 33 18.33

Student 46 25.56 Housewife 6 3.33

Unemployed 2 1.11 Total 180 100.0


Out of 180 general subscriber, 51.67% were businessman and 25.56% were student.

Even unemployed person (1.11%) uses mobile phone who do not have any source of

income. From this it can be said that usage of mobile phone does not strongly depends

on the economic status of user.

5.2.2 Household expenditure pattern:

The average household expenditure of general subscriber has been increased

tremendously than those of two years ago. The reason is persistent rise in the price

level. Apart from the basic requirement people are incurring a portion of money for

mobile phone communication. Table 5.8: Household expenditure pattern of general subscriber

Expenditure particulars of subscriber Average cost (BDT) % of total expenditure Food 4625.06 60.12

Shelter 191.72 2.49 Clothing 734.61 9.55 Health 354.75 4.61

Education 864.72 11.24 Mobile phone 501.50 6.52

Others 420.32 5.47 Total 7692.68 ~ 7693.00 100.0




The table expounds that majority share (60.12%) of household expenditure goes

towards food purpose. For shelter purpose they do not need to incur cost. Because

most of the subscriber possesses their own house. For mobile phone purpose incur on

an average BDT 501.50 and this share is 5.47% of their total household expenditure.

5.2.3 Savings pattern:

The remnant portion of money that rests after deducting all household expenditure

from income is called savings. In case of household, the objective of savings is to use

it for predetermined purpose or for unprecedented situation in future. The margin of

savings in rural area is comparatively lower than urban area.

Table 5.9: Distribution of savings pattern of general subscriber Monthly savings of subscriber Frequency % Average (BDT)

No savings 61 34

650.00

100-200 26 15 200-300 14 8 300-400 13 7 400-500 40 22 500-600 2 1 600-700 0 0 700-800 0 0 800-900 0 0 900-1000 24 13

Total 180 100.0 [Source: Field survey 2008] From the study area it was found that most of the general subscribers (34%) are

unable to save any amount of money. The number of general subscriber who are

capable to save BDT 400-500 is 40. The number of subscriber who are also capable

to save BDT 900-1000 is higher (24%).

5.2.4 Income pattern:

Income of the respondent is a very indispensable part of the study to get the real

economic scenario of the study area. But no respondents were found to provide their

actual income. For this reason, income of the subscriber has been calculated using the

formula Y = C+S.

Where,

Y = income of the general subscriber

C = Consumption of the general subscriber and

S = Savings of the general subscriber

Therefore, the average income of general subscriber stands as



Average income (Y) = Average consumption (C) + Average savings (S)

Y = 7693 + 650

= 8343

From the analysis it was found that average monthly income of the general subscriber

in the study area were BDT 8343. The general subscriber incurs BDT 501.50 from

their monthly income which is 5.47% of their total total household expenditure.

5.3 Subscribers status related to mobile phone service:

It is necessary to subtly analyze the mobile phone usage status of general subscriber.

This includes which operator subscribers prefer most, what are the reason behind such

preference, why they are not changing their existing connection, which hanset they

prefer, why they prefer such handset, subscribers are aware about internet service or

not, for which purpose they use internet service etc.

5.3.1 Preferred telecom operator of the general subscriber:

All the operators are trying their best to generate new subscriber, especially their

present attention towards the rural area. For this reason they are taking different

business strategy. Some operators are in the strategy to strengthen their network, some

are paying concentration what are the expectation of their valued subscriber to them,

some are paying attention towards providing VAS to increase their ARPU (Average

Revenue Per User). The operator can gather more subscriber if they can fulfill the

aspiration of subscriber.

From table 5.8

From table 5.9



[Fig 5.1: General subscribers preferred telecom operator]

In the study area it was found that out of 180 subscriber, 84 subscribers (46.7%) use

the connection of Banglalink and therefore it ranks the top position of the preferred

telecom operator by subscriber in the rural area. The nearest rival GrameenPhone

holds second position with the subscriber of 66 (36.7%). Citycell and Teletalk holds

third and fourth position respectively.

5.3.2 Reason for choosing particular operator:

There are various reasons on behalf of general subscriber for preferring their service

provider. This study considers three main reason for choosing their service provider

i.e. good network facility; low call rate and better customer service. Because these

three choices generally a subscriber considers before connected with any operator.

Apart from these three category a subscriber can choose a particular operator.

[Fig 5.2: Subscribers reason to choose preferred telecom operator]



5.3.3 Reason for not changing operator:

In most cases it was found that a general subscriber possesses more than one

connection having a single handset. There are several reason behind this. Some

subscriber use double connection because different operator provides different

facilities on different times, some use dual connection upon the availability of

network, some use more than one connection for FnF facility and some use for special

facility of the package. But in most cases the subscribers do not want to change their

operator for low call rate. In the study area it was found that 44.44% subscriber do not

want to change their operator due to low call rate. 18.89% subscriber do not want to

change their operator for special facility of the package.

[Fig 5.3: Subscribers reason behind not changing operator]

Some subscriber wants to change their operator but they can not do so because of

availability of his/her mobile phone number to others. 34.44% subscribers were found

of such category who do not want to change his/her operator for problem of changing

mobile phone number.

5.3.4 Subscribers awareness about internet services:

Internet brings the whole world into the grip of man. One can get access to different

information by means of internet communication. The notion of disseminating the

blessings of ICT to the door step of every citizen can be made possible with the help

of internet. The usage of internet also depends on the handset.



[Fig 5.4: Subscribers awareness about internet service]

All the operators at present providing easy access to internet with compatible handset

of the subscriber. As mojority of the population resides in the rural areas, so

awareness from rural area should arise first. but the matter of grief is that about 112

subscribers are not aware about the internet facility provided by operator. This

quantity is 62.2% of the total subscriber.

5.3.5 Subscribers purpose of internet use:

The purpose of using internet is multifarious. Some people are using it to make their

business more profitable by getting the latest and prompt information, some use it as a

media of communication and some use it for other purposes.

[Fig 5.5: Subscribers purpose of internet use]

In the study area the use of internet for business purpose is very poor. Only 4.5%

people use internet for business purpose, 14.4% for communicating and 81.1% for

other purposes. Other purpose here means that people use it for entertainment

purpose.



5.3.6 Subscribers handset usage status:

Usage of different handset depends on some variables i.e. subscribers income, their

choice, operating manner, availability of spare parts, requirement for internet access,

latest features with the handset et. al. Nokia manufactures handset of that quality

which meets most of the requirement of general subscriber. People wants their

handset will be cheaper, durable, user friendly, and availability of attractive features.

[Fig 5.6: Handset usage status in the study area]

For all these reasons most subscriber use Nokia as their handset. From figure 5.6 it is

clear that 127 subscriber (70.6%) use Nokia handset thereby Nokia becomes market

leader for selling handset. Motorola ranked second position with a far distance from

Nokia. The penetration of other handset company in the study area is more lower as

compared to Nokia.

There are various reason for choosing particular handset. As literacy rate in the rural

areas are lower, most of the subscriber (43%) votes for easy using feature of handset.

26% subscriber use their handset of particular choice because it is available within

their means. 16% subscriber use their particular handset for special features.

[Fig 5.7: Subscribers reason to use specific handset]

Socio-economic status of trader subscriber


Chapter 6: Socio-economic status of trader subscriber

6.1 Socio-demographic features of trader:

To analyze the impacts of mobile phone service on rural people it is inevitable to go

through some relevant issues i.e. the socio-demographic and economic features of the

sample. Socio-demographic information of trader shows their usage of mobile phone

from social perspective. Mostly required variables to analyze sample from social point

of view are distribution of age and sex, family size, educational status etc. The socio-

demographic features of trader related to mobile phone business are as follows:

6.1.1 Age structure:

To start a business generally a minimum age of businessman is required. But to start

mobile phone related business who understands how to operate business does not

require specific age. This study finds age of traders from 16 to 60 years. The average

age of the trader is 30.65 ~ 31. Age pattern of traders can be understood by the

following table:

Table 6.1: Age distribution of trader Traders age Frequency % Average age

16-25 32 26.7

30.65 ~ 31 26-35 63 52.5 36-46 19 15.8 46-60 6 5.0 Total 120

[Source: Field survey 2008] Most of the traders (62.5%) are within the age group of 16-30 years. The number of

traders within the age group 31-45 years is 39 and the age group more than 31-45

years is only 6.

6.1.2 Sex distribution:

To start or to continue the business related to mobile phone does not depend on the

gender. The female communities were first entitled to operate mobile phone business

(M2M) by GrameenPhone. GrameenPhone provided village phone to those women

who have transaction in Grameen bank. Later on, many female subscribers let their

village phone as rent basis to other and considering this business as a good source of

income many male person start this business.



Table 6.2: Sex distribution of trader Sex Frequency %

Male 118 98.3 Female 02 1.7 Total 120 100.0


In the study area it was found that the majority share (98.3%) of mobile phone

business are performed by male businessman and rest (1.7%) are performed by

female.

6.1.3 Family size:

Family size is an important variable that influence the expenditure pattern and

business operation of the trader. Traders with a big family size incur higher cost for

household expenditure and have to secure good source of income. So, there is a

relationship between family size of the trader and their business and household

pattern.

Table 6.3: Family member distribution of trader Family member Frequency %

2-5 71 59.2 6-9 41 34.1

10-12 8 6.7 Total 120 100.0

[Source: Field survey 2008] In the study area it was found that 59.2% traders family size are between 2-5. 34.1%

traders’ family size are between 6-9 and the number of trader with large family size

(10-12) is only 8.

6.1.4 Educational status:

Good educational background increases the efficiency level of the businessman which

acts as supporting power to run his/her business effectively. Since our economy does

not allows good job to the candidates having academic qualification of S.S.C. or

H.S.C. pass, a significant number of people tends to start this business which

incorporates small investment as compared to other prestigious business. This

business involves handling of handsets of various types and the various services

provided by the telecom operators, so educational background considers as extra

benefit. Subscribers in the study area are also educated as they operate various options

in the handset including web browsing. Educational pattern of trader in the study area

are as follows:



Table 6.4: Distribution of educational status of trader Literacy rate (Trader) Frequency %

Illiterate 3 2.5 5 pass 0 0 8 pass 25 20.8 S.S.C. 36 30 H.S.C. 41 34.2

Degree/hons. 13 10.8 M.A. 2 1.7

Others 0 0 Total 120 100

[Source: Field survey 2008] From the study area it was found that 34.2% trader have their educational background

of H.S.C. pass. 30% traders have the academic qualification of S.S.C. pass. 10.8%

trader’s academic qualification is graduation. Although M.A. pass traders also found

in the study area but their number (2) is very insignificant.

6.2 Economic features of trader:

Analysis of economic features of trader is significant to show their various business

achievements. Recently trader’s achievement from this business does not cope with

their various household and business requirements. This section mainly covers

trader’s household expenditure, business type, initial capital, income pattern, savings,

profit of the subscriber etc.

6.2.1 Business type:

There are different types of mobile phone related business. Initially this business was

confined to selling prepaid card and M2M service but later on there is some changes

in its dimension. Some businessmen are providing only M2M service. The number of

trader who is providing ERS and M2M service along with their grocery shop even

with pharmacy is 19 (15.83%). In the study area most of the businessmen were found

providing M2M and ERS service (25.83%). The number of mobile phone accessories

seller along with M2M and ERS seller is 22 (18.3%). The business type of traders in

the study area can be comprehensible by the figure 6.1:



[Fig 6.1: Business type of trader] 6.2.2 Household expenditure pattern:

At present the inflation rate of Bangladesh has exceeded all the previous record. Most

of the traders are of opinion that their average household expenditure has increased at

least two times than those before two years.

Table 6.5: Household expenditure pattern of trader Expenditure particulars of trader Average cost (BDT) % of total expenditure

Food 4651.67 59.37 Shelter 65.83 0.84

Clothing 771.67 9.85 Health 536.46 6.85

Education 948.33 12.11 Mobile phone 442.42 5.65

Others 418.5 5.33 Total 7834.88 ~ 7835 100.0

[Source: Field survey 2008] From the table it is found that around 59.37% expenditure incurred for food purpose.

Most of the household is owned by the trader themselves. For education purpose of

their children they incur 12.11% and 5.65% cost for mobile phone purpose from their

total household expenditure.

6.2.3 Savings pattern:

Savings is great source to reinvest in the same business or other enterprise. Basically

the businessman wants to save some portion of his/her profit for further investment.

But at present mobile phone businessman are not able to secure a handsome profit

from the business that they did in previous.



Table 6.6: Distribution of savings of the trader Monthly savings of trader Frequency % Average savings BDT

100-200 24 20.0

600.00

200-300 9 7.5 300-400 15 12.5 400-500 20 16.7 500-600 0 0 600-700 1 0.8 700-800 1 0.8 800-900 0 0

900-1000 7 5.8 Dissavings 43 35.8

Total 120 100 [Source: Field survey 2008]

Economic status of traders show that 35.8% traders are in dissavings and for others

savings margin is poor. However, 16.7% traders are saving BDT 400-500 per month

and in case of subscriber the savings margin is comperatively higher than trader i.e.

BDT 400-500 is saved by 22% subscriber, BDT 900-1000 is saved by 13%

subscriber. The reason is lowering the commission rate of ERS and availability of

M2M and ERS service. Furthermore inflation has been added in recent time.

6.2.4 Income pattern:

Traders income pattern is very much essential to analyze traders economic status.

Traders in the study area did not provide their monthly income statement. For this

reason, income of the trader has been calculated using the formula Y = C+S.

Where,

Y = income of the trader

C = Consumption of the trader and

S = Savings of the trader

Therefore, the average income of the trader stands as

Average income (Y) = Average consumption (C) + Average savings (S)

Y = 7835 + 600

= 8435

From table 6.5

From table 6.6



6.2.5 Investment pattern:

Return from the business greatly depends on capital employment. Usually large

investment does not require in this business. However, it varies with the size of

business i.e. some businessman runs two or three types of business at a time. As for

example, the initial investment of the that trader will be higher who is simultaneously

running M2M, ERS, handset and accessories and selling of SIM business.

Table 6.7: Distribution of investment pattern of trader Initial capital (BDT) Frequency %

3000-10000 50 40.8 10001-30000 39 31.7 30001-100000 26 23.3 100001-150000 5 4.2

Total 120 100.0 [Source: Field survey 2008] From the study area it was found that the amount of capital required to start this

business on an average is BDT 15000. This figure is required when somebody wants

to start only M2M and ERS business. However, additional capital will be required for

initiating selling of SIM card, handset and mobile phone accessories and the return

will be added accordingly.

6.2.6 Profit pattern:

Profit is the difference between an initial outlay and the subsequent amount earned.

Ensuring handsome profit largely depends on the capital utilized as well as on

business efficiency. Earlier M2M and selling mobile phone prepaid card was limited

but at present this business has been greatly scattered here and there around the

country. In addition, introduction of ERS service benefits the subscriber but the profit

margin has been substantially reduced in comparison to the profit margin from selling

mobile phone prepaid card. Before the introduction of ERS service, a trader earned

BDT 15 from selling prepaid card of BDT 300 but after providing ERS service the

same trader earns BDT 8.10 from selling BDT 300 which refers that their profit

reduces to 46%.



[Fig 6.2: Profit of traders]

Among 120 traders the monthly profit of 26.7% traders are BDT 3001-4000 and BDT

2001-3000 earned by 25% trader. In previous this profit margin was satisfactory but at

this present inflationary period the traders are not in a position to fulfill their basic

requirements. Many of the businessman now taking this business as a supporting to

their other business i.e. grocery or other departmental store.

6.3 Business outlay and revenue earnings:

6.3.1 Heads of expenditure:

It is necessary to calculate the various expenditures associated with the business.

Otherwise the calculation of profit will not give the actual result. For ensuring greater

profit from the business, each and every businessman tries to lower its different fixed

and operating cost to the minimum possible level. In this study three heads of

expenditure have been taken into consideration that roughly incorporates in a

business. They are

a) Rent of the shop

b) Salary of the employee, and

c) Utility payment

6.3.1.1 Rent of the shop:

It depends on the ownership pattern of shop by the trader. In the study area, it was

found that the rent of shop varies from BDT 100-1500 depending on the location and

space of the shop. The rent of shop is comparatively higher in the populous market

place than other places.



Table 6.8: Distribution of monthly rent of the shop Monthly rent of the shop Frequency % Average rent payment (BDT)

0 44 36.7

370.58 ~ 371.00 100-500 36 29.9 501-1000 36 29.9 1001-1500 4 3.5

Total 120 100 [Source: Field survey 2008] From the study area it is found that most of the shop is owned by the trader

themselves. Out of 120 traders, 36.7% traders do not incur any cost for rental purpose

for their shop. 29.9% traders incur rent for the shop worth of BDT 100-500 to 501-

1000 respectively. On an average the traders pay rent worth of BDT 371 for their

shop.

6.3.1.2 Salary of the employee:

The less is the operating cost of the business the more will be the profit from business.

Basically to run such business no employee ius generally required. Employee is

required when businessman runs mobile phone business as a suppoting business along

with grocery and other departmental store.

Table 6.9: Distribution of monthly salary of employee Employee Salary Frequency % Average salary payment (BDT)

0 91 75.8

500.00

500-1000 7 5.9 1001-1500 7 5.9 1501-2000 4 3.4 2001-2500 2 1.7 2501-3000 4 3.4 3001-3500 2 1.7 3501-4000 1 0.85 4001-5000 2 1.7

Total 120 100.0 [Source: Field survey 2008]

This study found that 75.8% traders are running their business without having any

employee. Nevertheless, if any trader employs employee in the rural area the salary of

that employee varies from BDT 500-1500.

6.3.1.3 Utility expenses:

Utility expenses is higher in the urban area than rural because continuing business

under the city corporation incorporates some extra cost i.e. maintaining trade licence,

paying VAT and tax to the government exchequer, higher electricity cost for

commercial area of the city. But in rural areas the businessman does not need to



consider these issues. They have to pay lower electricity bill and tax (if he/she falls

under tax paying criteria) to the pourosahva.

Table 6.10: Distribution of utility expenditure of the trader Utility payment Frequency % Average utility payment (BDT)

100-300 90 74.7

260.46 ~ 260.00 301-600 26 22.5

601-1500 4 2.8 Total 120 100.0


In rural areas monthly electricity bill is lower than urban areas. 74.7% traders pay

utility bill within the range BDT 100-300. BDT 301-600 has been paid by those

traders who operates larger business or more than one business concurrently.

6.3.2 Revenue earnings:

While dealing with mobile phone related trade, it is necessary to find out the various

sources of revenue that a businessman can easily generate. Revenue from the business

is dependent on the type and volume of business. Different types of business assures

different profit margin to the trader i.e. profit margin for M2M will not be equivalent

to that of earnings from ERS or earnings from ERS and M2M will not become

equivalent to that from selling handsets and mobile phone accessories. This study

concentrates revenue earnings of businessman from selling of SIM card, M2M, ERS,

handset and mobile phone accessories.

6.3.2.1 Revenue from ERS:

Before two to three years ago the only way to recharge prepaid mobile phone with the

help of scratch card. The scratch card was then worth of BDT 150 to BDT 2400. But

then many subscriber were not in a position to purchase prepaid card of at least BDT

150 at a time.

Table 6.11: Distribution of earnings from ERS Monthly earnings from ERS

(BDT) Frequency % Average earning (BDT)

0 9 7.5

1855.04 ~ 1855.00

50-500 10 8.3 501-1500 44 35.6 1501-2500 27 22.5 2501-5000 28 23.2 5001-6000 2 2.9

Total 120 100.0 [Source: Field survey 2008]



Realizing the inconvenience of the subscriber GrameenPhone first introduced ERS

service from where subscriber can recharge their prepaid connection from BDT 10 to

BDT 10000 and can pay post paid bill through ERS upto BDT 50000. But inception

of ERS greatly benefits the subscriber. Because, this reduces the pressure of

recharging their prepaid account of at least BDT 300. But, by selling prepaid card of

BDT 300, they traders earned BDT 15 as profit but the ERS service provide them

2.70% profit which is 46% lower than profit from prepaid card. Although greater

profit is currently earned by trader by selling more ERS as the subscriber base is

gradually increasing of all operator.

6.3.2.2 Revenue from M2M:

The name of village phone is and will be intertwined with the M2M service when it

was like a day dream to make a wireless phone call from a rural area. Many women

became completely self-dependent through the business of mobile phone. Gradually

this service comes to the urban area and also becomes a source of revenue for many

people. Banglalink, Aktel, Citycell and other operator provided similar package with

distinct product features followed by GrameenPhone.

Table 6.12: Distribution of earnings from M2M Monthly earnings from M2M


0 18 15

747.98 ~ 748.00

100-500 46 38.1 501-1000 34 28.5

1001-1500 11 9.2 2001-3000 11 9.2

Total 120 100.0 [Source: Field survey 2008] But earnings from M2M is also not profitable because the operators have substantially

reduced their tariff so that a subscriber who were not subscriber before some months

ago becomes subscriber of any opertor and does not require to go to phone shop to

make phone call. In addition, most operators currently providing promotional reduced

tariff during 8/9 am to 5 pm. Only 9.2% trader earns profit of BDT 1001-1500. But in

previous the earnings from M2M business were used for the sustenance of many

family.

6.3.2.3 Revenue from selling handset:

Revenue from selling handset is another major revenue earning source. But this

business requires generally higher amount of capital deployment. Although the



earnings from selling handset is lucrative but the due to insufficiency of capital many

businessman can not start this business in the rural areas.

Table 6.13: Distribution of revenue from selling handset Monthly earnings from selling handset


0 104 86.7

967.50 ~ 968.00 600-3000 9 5.8

7000-10000 7 7.5 Total 120 100

[Source: Field survey 2008] The above table shows that out of 120 trader under consideration 104 trader are not

involve in selling handset and those who are currently engaged in this business

ensures a very handsome profit.

6.3.2.4 Revenue from selling mobile phone accessories:

Most of the handset manufacturer company provides warranty/guarantee to their

products for certain period. After the expiry of that period there may be disturbance in

that electronic goods. In most cases the subscriber requires to change their handset

battery or mobile charger or casing or keypads. This business also requires

considerably higher investment (less than handset business).

Table 6.14: Distribution of revenue from selling mobile phone accessories Monthly Earnings from selling mobile

phone accessories Frequency % Average earning

(BDT) 0 71 59.2

513.50 ~ 514.00

100-1000 30 24.8 1001-2000 14 11.6 2500-3000 2 1.6 5000-6000 3 2.8

Total 120 100.0 [Source: Field survey 2008] Table 6.14 shows that a great portion (59.2%) of trader is not engaged in this

business. But the trader who is engaged in this business earns handsome profit. BDT

1001-2000 earned by 11.6% trader.

6.3.2.5 Reinvestment pattern of trader:

Reinvestment in the business is a source of maximizing business revenue.

Reinvestment in the business can be made from businessman’s previous savings or

from taking debt from any financial institution. Since, the traders at present can not



ensure good profit as they did earlier so most of the traders can not reinvest in their

business. In addtion, 35.8% traders are in dissavings position.

Table 6.15: Distribution of reinvestment pattern of trader Amount of reinvestment (BDT) Frequency %

0 94 78.3 200‐1000 11 9.2 1001‐2000 8 6.7 2001‐3000 3 2.5 3001‐5000 4 3.3 Total 120 100.0

[Source: Field survey: 2008]

From the table 6.15 it was found that out of 120 traders, 94 traders do not have the

ability to reinvest in the business. Only 4 trader having the ability to reinvest in the

business worth of BDT 3001-5000 which is only 3.3% from total trader.

Impact analysis of mobile phone service on rural people


Chapter 7: Impact analysis of mobile phone service on rural people

One of the major objectives of this study is to derive the impacts of mobile phone

services on rural people. There is some impact of mobile phone who becomes in

touch with it whether it is positive or negative. The impact of mobile phone service

can be analyzed from social and economic standpoint both for general subscriber and

trader.

7.1 Impact of mobile phone: General subscriber perspective

Since bulk share of subscriber base holds from general subscriber class, so their issue

of merits and demerits is a matter of great concern. From social and economic point of

view, the positive and negative impacts of mobile phone services are expounded

below:

7.1.1 Positive economic impact:

Positive economic impact of mobile phone service is very much crucial. By analyzing

positive impact it will be easier to show the benefits of mobile phone.

7.1.1.1 Mobile phone reduces communication cost:

The ultimate consequence of providing mobile phone service is to derive optimum

level of satisfaction and convenience. Cellular phone has entirely changed the mode

of present communication behaviour. Within a shortest possible of time and with low

communication cost people are passing along with their relatives and trade partners.

[Fig 7.1: Transport cost of subscriber before mobile phone use with relatives]

Figure 7.1 shows that before taking mobile phone as a tool of communication, BDT

400-500 were incurred as cost for 51 subscribers to communicate with relatives. BDT



200-300 were incurred for 44 subscribers per month. But the figure 7.2 shows how

mobile phone economically benefits subscriber to communicate with their relatives.

[Fig 7.2: Transport cost of subscriber after mobile phone use with relatives] After taking mobile phone the cost of communication with relatives has been

substantially reduced. In previous, when BDT 400-500 were required for 51

subscribers, this number has been reduced to 6. In the figure 7.2, BDT 100-200

shows a great mark because a great portion of previous high cost were reduced to

BDT 100-200.

7.1.1.2 Mobile phone benefits businessman:

The era of much time consuming has been abolished through the use of mobile phone.

For rapid and smooth communication, the popularity and usage of mobile phone in

business ambience is gradually increasing.

[Fig 7.3: Transport cost of subscriber before mobile phone use with trade partner] In support of making business easier and more fruitful many giant or group of

companies or even multi national companies (MNCs) become corporate client of

different mobile phone companies. By becoming corporate client, those companies



enjoy some distinct VAS from their preferred operator. In the figure 7.3, transport

cost 0.00 indicates that 117 subscriber do not have any business connection. The

number of subscriber who incurs cost worth of BDT 400-500 is 21.

But the figure 7.4 indicates that the number of subscriber has been reduced to 5 which

was previously 21, who bears cost BDT 400-500 when they did not have any mobile

phone. The number of subscriber (7) previously using BDT 900-1000 per month has

also been reduced to 2. The number indicating 0 refers to those subscribers who do

not have any mobile phone related business connection. BDT 100-200 shows higher

than previous state because higher transport cost BDT 400-500 has been reduced to

BDT 100-200.

[Fig 7.4: Transport cost of subscriber after mobile phone use with trade partner]

7.1.1.3 Mobile phone improves product marketing:

Marketing becomes an integral part of modern business. Due to the problem of

effective marketing system in most cases the farmer can not get apt price of their

agricultural products. With the help of mobile phone, businessman became informed

about what, when and how the product will be reached to the end user. The

probability of exploitation of farmer by the middleman also reduced by the services of

mobile phone.



[Fig 7.5: Transport cost for product marketing before mobile phone use]

The figure 7.5 shows that, before using mobile phone 10 subscriber costs BDT 400-

500 for marketing their product. BDT 300-400 costs for 7 subscribers for the same

purpose.

But the figure 7.6 shows that the number of subscriber has been reduced to 1 which

was previously 7 subscribers for marketing the product when associated cost for the

same purpose was BDT 300-400. The number of subscriber whose cost for marketing

was BDT 400-500 has been reduced to cost BDT 100-200.

[Fig 7.6: Transport cost for product marketing after mobile phone use] 7.1.2 Positive social impact:

Now-a-days the role and impact of telecommunication service in increasing social

welfare has been highly realiazed. Greater service of mobile phone increases peoples

mobility in their respective area and ensures social unity. As still fixed phone is like a



day dream, people are rapidly switching to their better alternatives i.e. mobile phone.

Most of the social impacts of mobile phone are as follows:

1. Mobile phone increases social cohesion.

2. It helps users with low education and literacy to be connected.

3. Helps in natural disaster.

4. Mobile phone promotes social responsibility.

7.1.2.1 Mobile phone increases social cohesion:

Mobile phone promotes social cohesion between family members and in the society.

It allows rural people to remain united togather even with family members who are far

away from their place of residence within short time. This fact becomes more suitable

when family members stays in abroad whether temporarily or permanently helps to

remain intact. As it was shown in prevoius chapter that at present people can

communicate with their relatives incurring small cost with the time when they didn’t

have any phone communication. It simply reduces the cost of transport to

communicate with relatives a greater extent. Figure 7.7 and 7.8 shows subscribers

comment on the role of mobile phone in increasing social cohesion and social status

respectively.

[Fig No. 7.7: Mobile phone increases social cohesion] [Fig No. 7.8: Mobile phone increases social status]

In the study area it was found that 88 (48.9%) respondents are in strong opinion and

60 (33.3%) repondents simply agrees that mobile phone increases social cohesion

between family members as well as in the society.



In case of increasing social status, 62 (34.4%) respondent disagrees with the statement

that mobile phone increases social status while 50 (27.8%) respondent agrees that it

increases social status.

7.1.2.2 Mobile phone helps user with low education and literacy to be connected:

Usage of mobile phone has no limitation to use irrespective of subscriber whether

he/she is poor or rich even educated or illeterate. Easy using features i.e. handset with

user friendly allows rural user to use even sophicticated handset. Nokia is the first

handset manufacturer which provides Bengoli option in the mobile phone to use it

more conveniently by people with low education and literacy. Apart from the handset

manufacturer, the telecom operators in Bangladesh recognise the importance of

broadening the accessibility of their services. For example, Aktel has recently

pioneered and launched a Bengali language SMS service. In addition, Warid telecom

is the first mobile phone operator in Bangladesh which is providing all sorts of VAS

in Bengoli if the handset is of that compatibility.

7.1.2.3 Mobile phone service in natural disaster:

At the time of any emergency issue, mobile phone becomes essential component to

communicate with others. It helps family members to remain in close touch with

others at the time of natural disaster. It allows to communicate with relief workers,

relief provider and others. In disaster prone area mobile serves by the following ways:

a) Early warnings: Mobile phone companies though their SMS notification

service can provide early warnings about the imminent disaster to the people

of disaster prone area. It can also state the probale impact of that disaster so

that people can realize how devastating the disaster is. As for example, Warid

teelcom through their SMS notification service warns about SIDR on 15th

November, 2007 which says to take nearer safe shelter and all sorts of

precautionary action. Such timely spread of information in response to a

disaster can save thousand of lives.

b) Recovery and rebuilding: Mobile phone is an effective component to diffuse

information rapidly to where it is most urgently needed. It greatly helps to the

recovery team and they can boost their workforce as per the situation calls for.

Mobile phone companies are socially liable to repair or reinstall a new base

transceiver station (BTS) as soon as possible so that the recovery, rebuliding



and rehabilitation work will not hamper even for a single moment. It is much

easier to repair a wireless base station than hundreds of fixed-lines.

7.1.2.4 Mobile phone promotes social responsibility:

At present mobile phone company has been contributing a great deal in our economy.

Besides continuing their business, they have some responsibilities towards the society.

More or less all the companies are paying concentration towards the society.

i) “You first!” and “making a difference” is the slogan of Banglalink. Banglalink

always considers what are the requirements of their valued subscriber and tries

to serve them best. This company is considered as that mobile phone operator

in our country which makes mobile phone affordable within the reach of all

people and the companies presence will be there wherever is the effort of

making change in the lives of general people.

ii) GrameenPhone is commited to deal with customers, employees, suppliers and

government in a socially, ethically and environmentally responsible manner.

GrameenPhone also participates in socially responsible activities like

education in ICT, economic empowerment of women, health, safety, the

environment and the preservation of heritage.

iii) Aktel’s corporate social responsibility is based on four core values. These are

enlightened through education, assure better health, protect environment and

fight with poverty. As a part of CSR (Corporate Social Responsibility) Aktel

extended their hand with Chittagong Skills Development Centre (CSDC) and

Underprivileged Children’s Educational Programme (UCEP-Bangladesh).

Aktel’s responsibility also goes to build orphanages and renovate mosques all

across the country. City beautification activity is also another responsibility

towards the city.

Other telecom companies are also involved in CSR activities who have joined their

hands with different GOs and NGOs to provide various services to the haves not sect

in the society.

7.1.3 Negative economic impact:

Every technological innovation involves some demerits along with its greater benefits

if it not utilized in the prescribed way. In case of our country where consciousness is



not accompanied by the relentless usage of telecommunication service, there may

even appear acute problem. Many poor people use it as an obligatory communication

medium though there economic status does not allow them to use in the real sense of

the term because a significant portion of their income has been spend to meet other

basic requirement.

7.1.3.1 Young generation wastes their valuable money:

Survey covered on 180 subscribers found that out of 180 consumers around 43.89%

subscribers agreed very strongly, 31.11% subscribers simply agreed that young

generations are wasting their valuable money by excessive using mobile phone. The

number of subscribers who disagree with this statement is lower (16.11%) than those

who agreed. They have also the comments that in this inflation period it is not feasible

for young generations to use excessively mobile phone other than only important

purpose.

[Fig No: 7.9: Mobile phone causes wastage of money by young generation]

[AS=Agreed Strongly, AFS=Agreed Fairly Strongly, A=Agreed, D=Disagreed, DFS=Disagreed Fairly Strongly, DS=Disagreed Strongly, DK=Don’t Know]

7.1.3.2 Young generation wastes their productive time:

The time of student life seems to be most valuable for all juveniles. According to the

opinion of guardians at the present time young generations are merely wasting their

productive time for trifling issues i.e. for making unnecessary phone calls. More

specifically most of the operators offers special reduced tariff during off-peak and

super off-peak hour (usually from12am-7/9am tariffs are BDT 0.25/0.29/0.30/0.60).



Around 33.89% subscribers are in strong opinion and 35.00% subscriber simply

corroborates this claim and only 15.6% subscriber disagrees with this claim.

[Fig No. 7.10: Mobile phone causes wastage of time by young generation]

[AS=Agreed Strongly, AFS=Agreed Fairly Strongly, A=Agreed, D=Disagreed, DFS=Disagreed Fairly Strongly, DS=Disagreed Strongly, DK=Don’t Know]

7.1.4 Negative social impact:

Apart from most of the positive social and economic impacts the usage of mobile

phone incorporates negative social aspects also.

7.1.4.1 Mobile phone creates problem among family members:

There is another problem with using mobile phone that it creates problem within the

family members. In fact there are some reasons for this. Lack of mutual trust,

doubting for unexpected use etc. are mentionable. There creates quarrel between

guardians and off-springs, between husband and wife. But as it increases social

cohesion, so the majority of the respondent disagree with the statement that mobile

phone increases family problem between family members.

[Fig No. 7.11: Mobile phone creates family problem]



Figure 7.11 also states that 45% subscriber disagreed with the statement. However,

21% subscriber thought that usage of mobile phone increases or creates problem

among family members.

7.2 Impact of mobile phone: Trader subscriber perspective

7.2.1 Negative economic impact:

Before the introduction of ERS service most of the traders secured a very good profit

from their business. But at present for two reasons there is a declining tendency of

traders about this business i.e. too much availability of this business and lower

commission from ERS service.

[Fig No. 7.12: Traders response to this business] Figure 7.12 shows that 40.83% traders response to this business is medium i.e. they

neither strongly supports this business nor they can abandon this business having no

other better business option. 37.5% traders’ response to this business is very low.

7.3 Physical problems using mobile phone:

As a rational and social element of society mobile phone subscribers will have to

think about its physical impacts on human body. Out of 180 subscribers under

consideration around 43.89% and 31.11% agrees that young generations are wasting

money by excessive using mobile phone. They are also in opinion that about 33.89%

and 35.00% firmly agrees that young generations are wasting their productive time by

excessive using mobile phone. As the villagers know that their off-springs are wasting

time and money but they are not quite familiar with what are the detrimental effects of

microwave radiation exerts from base transceiver station (BTS) on mobile phone user.



Research on the physical impact of mobile phone reveals by developed countries

shows very alarming signals for human health. Let us see what the recent researches

tell in this regard.

i) The microwave radiation from mobile phones has harmful effects at intensity

levels far below the official safety threshold values. This is confirmed by a

considerable body of evidence. The radiation of the mobile phones is adapted

to these far too high threshold values. This means that your mobile phone

radiation is strong enough to exert harmful influences on your brain and other

tissues even at normal usage.

ii) A German study found a threefold higher frequency of cancer among people

living in the vicinity (400 m) of a GSM base station compared to people living

further away from the antenna. The risk for mammary cancer was 3/4 times

greater and the average age of contracting this disease was considerably lower,

50.8 years than in the control group (69.9 years). The frequency increased also

the longer people had been exposed to the radiation. The study covered a ten

year long period (1994-2004), starting the year after the installation of the base

station. Before the installation of the base station, there was no difference in

cancer incidence between people living in the vicinity of the (future) base

station and the control area.

iii) Recent research also exerts ample and unequivocal evidence that microwave

radiation damages DNA. It has also been established beyond doubt in

experimental studies that DNA damage increases cancer risk. This study adds

to several others indicating that the DNA damage from microwaves brings

about a considerable increase of cancer risk among people exposed to the

radiation.

iv) Researchers from the “Radiation and Nuclear Safety Authority” in Finland

compared the mobile phone use of 1,521 people with brain cancer (glioma)

with that of 3,301 healthy people. When they looked only at people who had

used a mobile for 10 years or more, they found that they were 39 per cent

more likely than average to get a glioma on the side of their head where they

held their handset.

v) Hungarian scientists have found 30% sperm decrease in intensive mobile

phone users. In addition the sperms were damaged.



vi) Three European research groups in separate studies have found an increased

risk of brain tumors in people who have used the phones for 10 years or more.

Two of the studies found a correlation between the tumor's location and the

side of the head where people reported they held the phone. One also suggests

the greatest risk is in people who began using the phones before age 20. And it

is known to all that this brain tumour eventually turns toward brain cancer.

vii) Nerve cell damage in mammalian brain after exposure to microwaves from

GSM mobile phones. One will be horrified about the impact of excessive use

of mobile phone if he/she will see the status of his/her brain between two

periods (before and after mobile phone use). Figure 7.13 shows the

consequence of mobile phone use between two periods on human brain:

[Fig 7.13: Adverse effect of BTS radiation on human brain]

Exposed animals, were much more likely to have albumin leaking from blood vessels

in inappropriate locations. This shows as dark dots in the exposed brain above on the

right.

So young generations should be very restrictive in case of using mobile phone as

prescribed by the European research that there is great possibility of brain cancer who

starts mobile phone use before 20 years age.

Apart from social and economic problems associated with mobile phone use the users

should also concentrate on its physical demerits because the user will be the ultimate

victim of this catastrophe.

Summary of findings


Chapter 8: Summary of findings

It is necessary for any research work to show its various findings in a nutshell.

Summary of findings helps reader to realize the most outstanding achievement from

the study and the actual scenario of the study area. Key findings from the study area

are as follows:

1. 25% subscribers communication cost with their relatives has been

substantially reduced from BDT 400-500 to BDT 100-200 after mobile phone

use.

2. 9.5% subscribers communication cost with trade partners has been reduced

from BDT 400-500 to BDT 100-200 after mobile phone use.

3. 3.4% traders product marketing cost has been reduced from BDT 400-500 to

BDT 100-200 after mobile phone use.

4. 48.9% subscriber strongly believes that usage of mobile phone enhances social

cohesion in their society.

5. 45.6% subscriber disagreed that usage of mobile phone creates problem

among family members. While 21.1% subscriber agreed that usage of mobile

phone creates problem among family members but this number is less than

those who disagreed with this statement.

6. Since a great portion of subscriber can not operate their handset properly, they

(42.2%) use their handset for being user friendly.

7. 62.2% subscriber in the study area do not know about the internet service

provided by their operator.

8. Those (112 out of 180 subscriber) who knows about internet service use it for

entertainment purpose (81.1%).

9. 33.9% subscriber strongly confess that young generations are wasting their

time especially at night by using mobile phone.

10. 43.9% subscriber agreed strongly that young generations are wasting their

money using mobile phone.

11. In the study area 46.7% respondent is the subscriber of Banglalink, 36.7% of

Grameen Phone, 11.7% of Citycell, 2.2% of Teletalk, 1.7% of Aktel and 1.1%

of Warid.

Summary of findings


12. In rural areas, the 47.8% subscribers use their preferred connection for

network facility, 40.6% for lower call rate and 7.2% for better customer care

service.

13. 78.3% trader does not deserve the capability to reinvest in their business.

14. 37.5% trader choose mobile phone related business as a better job from rural

perspective.

15. 40.8% traders put their view in medium manner about response to this

business by themselves. 37.5% traders have low response to this business.

Recommendations and conclusion

The socio-economic impact of mobile phone service on rural people in Bangladesh 66

Chapter 9: Recommendations and conclusion

9.1 Recommendations:

Science and technology makes general peoples life easier than ever. Yet it has some

obstacles due to which the poor and grass root sect can not become the expected

beneficiary from this service. Here recommendations have been outlined regarding

improvement of telecommunication service in rural perspective which will both serve

the rural people as well as service provider. As every problems have specific

solutions, the problem found related to mobile phone also have some solution. In

order to lessen the misuse of mobile phone, Ministry of Posts and Telecommunication

as per the recommendation of BTRC makes mandatory to re-register their connection

if it was purchased before February 28, 2006. Some of the recommendations are as

follows:

1. Though the present tariff is lower as compared with tariff before two or three

years ago, the mobile phone tariff rate should be redesign with a view to

accelerating greater access of rural people into mobile telephony system.

2. There should be very well defined rules and regulations in case of

purchasing new mobile phone connection for young generations so as to

reduce the misuse of mobile phone related social problems.

3. The commission profit for the ERS service provider should be more. Before

the inception of ERS, the traders got BDT 15 for selling prepaid card of

BDT 300, but by providing ERS service of BDT 300 gives them commission

of BDT 8.10. There are lacs of trader in the villages serving the people but

can not assure their expected return.

4. There is a diminishing tendency in ERS or M2M business as the profit

margin is lower in comparison with investment and now this business has

established here and there. So, the operators should pay more attention

towards the interest of traders.

5. The mobile phone companies should withdraw their reduced off-peak tariff

at late night. This causes loss of their time and harmful for health to the

young generations and If the operators wish to provide lower tariff then they

can provide it in day time when general people requires it most.



6. Most of the villagers are not acquainted with internet service on mobile

phone. Study shows that 62.22% out of 180 subscriber in rural areas are not

aware about the internet service. The service provider should take proper

initiative to provide their all services at the door step of subscriber.

7. In the competitive telecom market VAS is the another good source of

revenue for telecom operators. But people in rural areas do not know what

are VASs provided by mobile phone operators. There are health service

from GrameenPhone, Namaz alert service from Banglalink and the great

collection of VAS from Warid. Operators should take steps so that people

frequently avails those VASs.

8. Around 20% subscribers were found that they use more than one connection

having single handset. They do so for reduced tariff in different times.

Technical experts are in the opinion that it causes problem to handset by

frequently switching off and switching on of mobile phone. So, tariff should

be fixed within the ability of all sects of valued subscriber.

9. Telecommunication service in Bangladesh involves no fixed-to-mobile fees

from BTTB to the mobile operators and involves above-cost mobile-to-fixed

interconnection fees. This interconnection rate is higher in Bangladesh

amongst Asian countries. These interconnection rate should be reduced so as

to making more phone calls to fixed phone.

10. There is artificial restriction on making international call. Every

international calls are gone through BTTB. By selling connections, the

mobile operators create opportunities for the expatriate community to call

home, thereby generating revenues for Bangladesh. By denying the

operators due reward, this reduces their incentives to increase penetration.

So, the Ministry of Posts and Telecommunication Affairs should redesign

the international call tariff for frequent access by every people.

11. The harmful websites should be controlled using powerful software so that

those can not be viewed to the young and other people through internet use

by handset.

12. Further study in this issue will be needed to derive maximum benefits from

mobile phone service both for the economy and rural people.



9.2 Conclusion:

In this study an attempt is made to understand and interpret the socio-economic

impacts of mobile phone. The empirical findings obtained from the field survey are

used to analyze the socio-economic status of general subscriber and trader subscriber.

National survey in this issue has not been conducted yet. But this study has revealed

that their communication pattern has been changed from the period when they did not

owned any mobile phone.

Study from rural perspective about mobile phone service exerts the overall mobile

phone usage scenario of the country. Mobile phone service is a great windfall for the

people of our country. It has completely changed the communication behaviour for all

class of people who requires it. One the one hand it reduces time requirement to

communicate and communication cost on the other. Though mobile phone service in

our country has been improved than two to three years ago but the participation from

rural areas has not increased remarkably. People from different economic strata used

it irrespective of higher call rate in comparison their income and other household

expenditure. However, being poor economic base, the general subscriber incurred

6.52% and trader subscriber 5.65% cost for mobile phone purpose from their

household expenditure. In 2005 mobile penetration rate in Bangladesh was at 6% and

now it has been growing rapidly. Higher mobile penetration increases and will

increase employment opportunity, social cohesion, productivity in different sector

which in turn increase GDP.

Due to various attractive offers provided by the operators there becomes a great

possibility of misusing this communication tool. Since the number of subscriber from

student community is gradually increasing so both the government and the guardians

should be very careful regarding the unexpected misuse of mobile phone. In a rural

based economy to ensure more revenue from subscriber, the operators should have to

give attention to the expectation of rural people by providing VASs that will meet

their day-to-day information requirement. As lacs of mobile phone related

businessman has been continuing their business which helps the operators to provide

the service to the grassroots so the operators should have to preserve traders’ interest

for the sake of traders and for their own interest. The working procedure of operators

should be very much transparent and be properly regulated by BTRC.

References

The socio-economic impact of mobile phone services on rural people in Bangladesh ix

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Sagepub (2008). Internet address: http://nms.sagepub.com/cgi/reprint/1/2/209

(accessed March 8, 2008)

Telegeography (2007). Internet address: www.telegeography.com/cu/index

Teletalk Bangladesh Ltd. (2007). Internet address:

http://www.teletalk.com.bd/about.htm (accessed March 8, 2008)

TM International (Bangladesh) Limited (2007) Internet address:

http://www.aktel.com/?module=14 (accessed March 8, 2008)

Usages of Information and Communication Technologies in an Expanding

Urban Community: A case Study on Sonadanga Residential Area of Khulna City,

An undergraduate thesis by S.M. Saifur Rahman, February 2006

Warid Telecom International Ltd. (2007). Internet address:

http://www.waridtel.com.bd/index (accessed March 17, 2008)

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xi

Appendix I Economics Discipline Khulna University, Khulna

Schedule for the subscriber on

The socio-economic impact of mobile phone services on rural people in Bangladesh

The information will be used solely for study purpose ID No: Date: ...................... Social perspective:

1. Name of the subscriber:

2. Demographic information: Address Age Sex Family member Occupation Educational status

Educational status (0= illiterate, 1= 5 pass, 2= 8 pass, 3= SSC pass, 4= HSC pass, 5= Degree pass, 6= MA pass, 7= others)

3. Before using mobile phone how can you communicate with your relatives? ……………………………………………………………………………….. Social Psychological perspective:

1 → Agreed strongly (AS) 2 → Agreed fairly strongly (AFS) 3 → Agreed (A) 4 → Disagreed (D) 5 → Disagreed fairly strongly (DFS) 6 → Disagreed strongly (DS) 7 → Do not know (DK)

1. Do you think by using mobile phone your social cohesion increase?

AS AFS A D DFS DS DK 1 2 3 4 5 6 7

2. Do you think by excessive use of mobile phone young generations are wasting

their productive time?


3. Do you think mobile phone service creates family problem among family

members? AS AFS A D DFS DS DK 1 2 3 4 5 6 7

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xii

4. Do you think young generations are wasting their money by using mobile phone service?


5. Do you feel your social status has increased by using mobile phone service? AS AFS A D DFS DS DK 1 2 3 4 5 6 7

Economic perspective:

1. Expenditure for different purposes:

a) Household expenditure (per month in BDT): Food Clothing Shelter Education Health Mobile Others

b) Expenditure for transportation with relatives (per month in BDT):

c) Expenditure for transportation with trade partners (per month in BDT):

Mobile phone usage

status

Cost incurred for communication (BDT)

Before using mobile

phone 0

100-

200

200-

300

300-

400

400-

500

500-

600

600-

700

700-

800

800-

900

900-

1000

After using mobile

phone 0

100-

200

200-

300

300-

400

400-

500

500-

600

600-

700

700-

800

800-

900

900-

1000

Mobile phone usage

status


Before using mobile

phone 0

100-

200

200-

300

300-

400

400-

500

500-

600

600-

700

700-

800

800-

900

900-

1000

After using mobile

phone 0

100-

200

200-

300

300-

400

400-

500

500-

600

600-

700

700-

800

800-

900

900-

1000

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xiii

d) Expenditure for product marketing (per month in BDT):

2. Savings (per month in BDT)

□ 100-200 □ 200-300 □ 300-400 □ 400-500

3. The name of your mobile service provider

□ Aktel □ Banglalink □ Citycell □Grameen phone □ Warid □ Teletalk

4. Why are you using this connection?

□ Network facility □ Call rate □ Better customer service

5. Why do not you change this operator service?

□ Low tariff □ Problem of changing number □ Special facility of the package

6. Time spent for your business before using the mobile phone: ………………………………………………………………..

7. Time spent for your business after use of mobile phone: ……………………………………………………………….

8. Do you know about the mobile phone internet service?

□ Yes □ No

9. If yes, then what is the purpose of using this service?

□ For knowing the business information □ For communicating □ Others………

10. What is the name of your handset? ………………………

11. Why are you using this handset?

□ Low price □ Easy using □ Handset plus SIM facility □ Availability

□ special features □ Others

Mobile phone usage

status


Before using mobile

phone 0

100-

200

200-

300

300-

400

400-

500

500-

600

600-

700

700-

800

800-

900

900-

1000

After using mobile

phone 0

100-

200

200-

300

300-

400

400-

500

500-

600

600-

700

700-

800

800-

900

900-

1000

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xiv

Appendix II Economics Discipline

Khulna University, Khulna

Schedule for the traders engaged in mobile phone service on

The socio-economic impact of mobile phone services on rural people in Bangladesh

The information will be used solely for study purpose

ID No: Date:..................... Social perspective:

1. Name of the subscriber:

2. Demographic information:

Address Age Sex Family member Educational status

Educational status (0= illiterate, 1= 5 pass, 2= 8 pass, 3= SSC pass, 4= HSC pass, 5= Degree pass, 6= MA pass, 7= others) Economic perspective:

1. Household expenditure:

Food Clothing Shelter Education Health Mobile Others Total

2. Savings (per month BDT)

□ 100-200 □ 200-300 □ 300-400 □ 400-500

3. Type of business-

□ SIM seller □ Handset seller □ Grocery/departmental store or other business with

M2M service M2M / i’top-up / flexiload / telecharge / easyload Mobile

phone accessories seller SIM+handset+M2M / i’top-up / flexiload /

telecharge / easyload

4. Initial capital……………….BDT

5. Business expenditure (per month in BDT):

Rent/govt. tax of the shop Employee salary Utility payment Total

6. Business earnings (per month in BDT):

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xv

Selling handset Share of % from ERS Selling mobile accessories Total

(ERS= Electronic Retail Service)

7. Profit from business

□ 1000-2000 □ 2000-3000 □ 3000-4000 □ 4000-5000

8. Investment for other purpose from this profit.

□ Yes □ No

9. Amount of investment from the profit? ………………..............……

10. What is the return of the investment? ……………………………..

11. Why are you interested to involve in this business?

□ Reasonable income □ Job security □ Better job in rural area □ others….........

12. What do you think about peoples’ response to this business?

□ High □ Medium □ Low

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xvi

Appendix III

Study area: Rupsa Upazila (Khulna District)

Study area: Terokhada Upazila (Khulna District)

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xvii

Study area: Dumuria Upazila (Khulna District)

Study area: Batiaghata Upazila (Khulna District)

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xviii

Study area: Rampal Upazila (Bagerhat District)

Study area: Wazirpur Upazila (Barisal District)

Study area: Alamdanga Upazila (Chuadanga District)

Appendices

The socio-economic impact of mobile phone services on rural people in Bangladesh xix

Study area: Gazipur Sadar Upazila (Gazipur District)

Study area: Kaligonj Upazila (Lalmonirhat District)

impact of mobile phone

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