overview of telecom industry-bangladesh

8/12/2019 Overview of Telecom Industry-Bangladesh

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Overview of the Telecom Industry,

Its Potential and Contribution to the Nation

Raihan Shamsi

Chief Corporate Affairs Officer & Acting CFO

Grameenphone Ltd.
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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


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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


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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


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[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


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Partner to Development

DT 30, 000 Crore investment

8% contribution to National Revenue


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Industry Challenges.


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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


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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


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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


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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


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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


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Our effort continues .


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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


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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


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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


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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


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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


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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


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Bill Pay Service; M-business..

CellBazaar

o Market Information Access Servicesthrough GSM mobiles

BillPay

Utility bill payments by mobile phone inselected areas


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Message


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Thank You

overview of telecom industry-bangladesh

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