overview of telecom industry-bangladesh
TRANSCRIPT
-
8/12/2019 Overview of Telecom Industry-Bangladesh
1/22
Overview of the Telecom Industry,
Its Potential and Contribution to the Nation
Raihan Shamsi
Chief Corporate Affairs Officer & Acting CFO
Grameenphone Ltd.
http://images.google.com.bd/imgres?imgurl=http://www.textually.org/textually/archives/images/set2/grameen1.jpg&imgrefurl=http://www.textually.org/textually/archives/cat_random_stats.htm?p=11&usg=__1cw8Pe9kA0F2uioQIEBWiYPtMS0=&h=236&w=283&sz=16&hl=en&start=19&um=1&tbnid=0OuWZ2z5U5946M:&tbnh=95&tbnw=114&prev=/images?q=Bangladeshi+using+mobile+phone&hl=en&um=1http://images.google.com.bd/imgres?imgurl=http://www.textually.org/textually/archives/images/set1/tech_bangdesh3_apr22,0.jpg&imgrefurl=http://www.textually.org/textually/archives/cat_mobile_phone_projects_third_world.htm?p=5&usg=__yFwDbXlQQOmKMAyo6Jc3K0Q8GfY=&h=352&w=430&sz=35&hl=en&start=11&um=1&tbnid=_sJ6HtXD_TStKM:&tbnh=103&tbnw=126&prev=/images?q=Bangladeshi+using+mobile+phone&hl=en&um=1 -
8/12/2019 Overview of Telecom Industry-Bangladesh
2/22
Mobile Operators in Bangladesh
InternetSubscribers
6 Million
InternetPenetration
4%
Total Telecom Subscriber - 52.163 Million
(Mobile + PSTN)
Telecom Penetration - 35%
PSTN Subscriber - 1.603 Million*
PSTN Penetration - 1%
Mobile Subscriber - 50.56 Million*
Mobile Penetration - 34%
Telecom Market Scenario
Source: BTRC
*As of Nov09
-
8/12/2019 Overview of Telecom Industry-Bangladesh
3/22
Mobile industry in a unique position..
Nationwide infrastructure
Already 34% population connected Created 675,000 employment
More than 240,000 Sales Point
http://www.grameenphone.com/index.php?id=123 -
8/12/2019 Overview of Telecom Industry-Bangladesh
4/22
Contribution to the National Economy
The largest private sector infrastructure provider withmore than BDT 30,000 crore investment
More than 6.0% contribution to GDP in 2007(A Deloitte study)
In a developing country, an increase of 10percentage points in mobile penetration will lift thatcountry's annual economic growth rate by 1.2percentage points(A Deloittestudy)
So far around BDT 20,000 crore contribution to
Government
More than 90% geographic and 98% population
coverage
-
8/12/2019 Overview of Telecom Industry-Bangladesh
5/22
[19972009] Revolution continues
0
10
20
30
40
50
60
2002 2003 2004 2005 2006 2007 2008 2009 (Q3)
Millions
Mob i le Sub scr iber
3.9 M
Growth 124%
21.48M
Growth 105%
1.74 M
Growth 58%
1.1 M
10.48 M
Growth 169%
34.37 M
Growth 60%
44.64 M
Growth 30%
50 M
Growth 12%
Widest network coverage
8% contribution to national revenue
-
8/12/2019 Overview of Telecom Industry-Bangladesh
6/22
Partner to Development
DT 30, 000 Crore investment
8% contribution to National Revenue
-
8/12/2019 Overview of Telecom Industry-Bangladesh
7/22
Industry Challenges.
-
8/12/2019 Overview of Telecom Industry-Bangladesh
8/22
Severe energy crisis
Requirement 5,000 MW
Production 3,580 MW
About 80 million people in thecountry do not have access toelectricity
30% of total cost of power isused for extra battery, fuels
Thousand of people died in
recent cyclones
15,000 died during Sidr07
Caused millions of dollarsFinancial & infrastructuraldamages
Energy Crisis & Natural Disaster
-
8/12/2019 Overview of Telecom Industry-Bangladesh
9/22
Economic challenges
Global recession
hi t t ing th e local
economy
GDP growth lowered to 5.6%
Decline in exports
Inflation is likely to stay at 6.5%
in 2009-10
Balance between
Nat ional Incom e
& Expendi ture
Budget deficit has become a trait
-
8/12/2019 Overview of Telecom Industry-Bangladesh
10/22
70.34%
17.87%
7.36%
4.44%
Next Addressable Market = 58 Million**
*World Bank definition of BoP: Annual income less than PPP US$ 3000.
Affordability & literacy at BOP
70% of population at BOP
45% population underpoverty level
55% population are illiterate
Lowest Tariff to matchaffordability
-
8/12/2019 Overview of Telecom Industry-Bangladesh
11/22
Infrastructure Stage
Subscriber AcquisitionStage
Operation Stage
Profit Stage
Customs Duty on Telco equipment apprx. 3%-25%
10%-17.5% duty on NW, Service Equipment &Computer Hardware
Duty on SIM 64%++
SIM tax BDT 800 per SIM
12% of value per mobile hand set
Duty on Scratch card 64%++
Revenue sharing 5.5%
VAT 15%
Annual License fee BDT 50Mn
Spectrum charges based on investment
Tax and VAT deducted and deposited at source.
Local Government taxes
Corporate tax 45%
Heavy taxes on ALL stages of operation
-
8/12/2019 Overview of Telecom Industry-Bangladesh
12/22
Highest tax in SAARC for mobile usage
Mobile Connection- growth in Q1 2009
12.93
6.94
2.31 3.7
0
2
4
6
8
10
12
14
India Sri Lanka Pakistan Bangladesh
Growth(in%)
Highest tax burden in Bangladesh
In FY 2009-10 budget the burdenof tax on people has increasedfurther
India with lowest tax; has highest
Growth
Bangladesh with highest tax; naturally
one of the lowest Growth Recently, Pakistan reduced SIM tax to
PKR 250 from PKR 500 and handset tax
to PKR 250 from PKR 750 to boost
access to communication
Source: Wireless intelligence Q1 2009
-
8/12/2019 Overview of Telecom Industry-Bangladesh
13/22
Our effort continues .
-
8/12/2019 Overview of Telecom Industry-Bangladesh
14/22
We continue to be partner in development
EducationHealth
servicesBusiness
Public
information
Voice68 % is still
unconnected
Internet96% need to get
connected to web
e-governance
M-banking
Agriculture
-
8/12/2019 Overview of Telecom Industry-Bangladesh
15/22
CIC: A Role Model
Approx. 500 center for information access to 3 crorerural mass
Services available:
Access to Internet,
Voice communications and
Video conferencing to the rural people
1. Education on internet:Training on computers and internet for students
2. Health:
Contents on basic health available for mass
3. Agriculture:
Developed Bangla content
Under the e-krishok campaign farmers can find outdifferent solutions right away.
They can also send e-mail for expert opinions..
4. All sorts of e-govt. citizens' services are being delivered fromthe centers through the CICs.
Internet service for vi l lagers
-
8/12/2019 Overview of Telecom Industry-Bangladesh
16/22
Wireless internet: helps to connect remote rural areas
In absence of 3G, BD operators arebridging demand gap with EDGE
CICs are allowing web-surfing at anacceptable speed
GP also marketed its first pre-configured handset to allow hassle-freeconnectivity to subscribers
-
8/12/2019 Overview of Telecom Industry-Bangladesh
17/22
Health Service: Supporting the Basic
Doctor patient ratio 1: 3169(08)
Doctor is now just one call away
From any part of Bangladesh
789 serves 3,000 calls/day
Healthl ine Servic e 789
Source: http://www.thedailystar.net/archive.php?date=2008-04-20
-
8/12/2019 Overview of Telecom Industry-Bangladesh
18/22
Overcome information gap betweenFarmer & agri-expert
Suggestions and answers to anyqueries for:
Agriculture, vegetable & fruit farming
Poultry, livestock, fisheries etc.
Agriculture Service: Supporting the Basic
-
8/12/2019 Overview of Telecom Industry-Bangladesh
19/22
Call center for educational info-
University, college & school admission
Graduate Admission Tests
Standardized Tests (IELTS, SAT,TOEFL, etc)
General Foreign Admission Inquiries
BBC janala- English learning through mobile
Education Service: Supporting the Backbone
-
8/12/2019 Overview of Telecom Industry-Bangladesh
20/22
Bill Pay Service; M-business..
CellBazaar
o Market Information Access Servicesthrough GSM mobiles
BillPay
Utility bill payments by mobile phone inselected areas
-
8/12/2019 Overview of Telecom Industry-Bangladesh
21/22
Message
-
8/12/2019 Overview of Telecom Industry-Bangladesh
22/22
Thank You