Future capital expenditure investment by telecom cos threatened
Thursday, 11 November 2010
FE Report
Country's mobile operators Wednesday sought a clear picture from the government on renewing 2G telecom and issuance of 3G licenses as well to sustain the growth of mobile telephony.
Among the six mobile operators, five licenses will expire by 2011.
The government has initiated some processes to renew the licenses. But the operators are still in the dark on the renewal processes.
Addressing a launching ceremony of a detailed report titled 'Bangladesh Telecoms Sector: Challenges & opportunities' in a city hotel, the top executives of Grameenphone, Banglalink, Robi and Teletalk said the present mobile technology, 2G (second generation), is the base. Without knowing the outcome of 2G renewals, it is difficult for the operators to think about 3G hindering the future capital expenditure (capex) investment by the telecommunication companies.
Telecom is the largest contributor to country's foreign direct investment (FDI) and also a major contributor to the national fiscal revenues.
Asian Tiger Capital Partners (ATCP) conducted the report and Association of Mobile Telecom Operators of Bangladesh (AMTOB) arranged the launching ceremony of the report which was also addressed by AMTOB secretary general Abu Saeed Khan, Chief Information Commissioner Mohammad Jamir and secretary of ministry of post and telecommunication Sunil Kanti Bose.
The operators also said that the growth of the mobile companies marked a decline in recent months due to the strict conditions in getting the new mobile connections.
Oddvar Hesjedal, chief executive officer of Grameenphone, Ahmed Abou Doma, Managing Director & CEO of Banglalink, Bidyut Kumar Basu, Chief Marketing Officer of Robi Axiata Ltd and Mujibur Rahman, Managing Director of Teletalk Bangladesh took part in a panel discussion, moderated by Ifty Islam, Managing Partner of ATCP.
Oddvar Hesjedal said a fundamental change could be done only through imparting quality education to mass people in digitising the economy of the country.
Secretary of ministry of post and telecommunication Sunil Kanti Bose said government is conducting a guideline on allowing 3G and also progressing on renewing 2G telecom licenses
In Bangladesh, the duration of a telecom licence is 15 years. As technology changes by the day, both the regulator and operators may need to change the conditions on the licence.
Hesjedal says the operators pay for the licences. "So if changes are needed, it should be done in consultation with the operators."
He said fundamental change in society can be possible to make best for the world through this by ensuring health, education. Moreover, digitised education can be ensured for making a big change in the society. He also talked about new licensing guideline as he emphasized the 3g's coming in bangladesh as early as possible.
In Bangladesh, the mobile penetration rate is about 33 percent and 56.36 million people are now under the mobile telephone networks. Operators believe this number could double if the government withdraws the Tk 800 tax on SIM (subscriber identity module).
The huge tax burden also sets back the development of telecoms in the country, the AT Capital Research report said.
The AT Capital Research report is the first report on telecom sector which has been made public.
Asian Tiger Capital completed the report on the prospects for the telecoms sector going forward looking at a broad range of issues relevant for industry stakeholders and investors. This include an analysis of the major mobile phone operators and their future growth prospects in both voice and data, 3G, VAS, Convergence Technologies and the opportunities to help build a Digital Bangladesh.
Mr Sunil Kanti Bose said discussions with operators and also public opinion will be taken.
To address the problems, it is necessary to think about security, at what age level people will have SIM.
He also touched the issues like uncertainty of licenses, renewal of mobile licenses. From 2g to 3g transformation, what will be the rate for 2g when 3g will come.
Bidyut Kumar Basu, Chief Marketing Officer, Robi Axiata emphasized going forward. For the growth of this sector, people of BD should know how to use mobile and other applications. Everybody (Govt, operators) should grow ecosystem. Mobile operators cannot do alone anything. Other related parties like software developer, mobile manufacturer, laptop manufacturer should work together to develop a good ecosystem.
If 3G can be the opportunity to generate revenue, then six operators should come together to implicate 3G, as Bangladesh will be benefitted by this.
To describe Digital Bd, he also said that it is something which means people have their own laptop or mobile phone to have information like job search, ticket cutting etc.
Mr Jamir said the entire mobile operators should move forward by making partnership. In this sector opportunities and challenges move together. Here the challenges are sim tax, huge decline in acquisition and competitive market. On the other hand, this sector brings a great opportunity by providing information to SME. However, government is very much sensitive with private sector. Govt and Mob operators will try to achieve 100 mn in 2015. Good environment can be generated for development in rural areas by mobile sector and IT development. PPP infrastructure also can be made possible in this sector. End user will be benefitted. As this PPP have concerns as well as anxiety and concerns, so govt should address this.
In the second panel discussion, Mr. Anir Choudhury, Policy Advisor, A2I, PMO Office, Mr. Per-Henrik Nielsen, Chief Executive Officer of Ericsson, Mr. Wonder Wang, Chief Executive Officer of Huawei, Mr. Fahim Mashroor, Senior Vice President, BASIS and Mr. Abu Saeed Khan, Secretary Generel, AMTOB were present and discussed about the telecoms sector's role in establishing a Digital Bangladesh.
Country's mobile operators Wednesday sought a clear picture from the government on renewing 2G telecom and issuance of 3G licenses as well to sustain the growth of mobile telephony.
Among the six mobile operators, five licenses will expire by 2011.
The government has initiated some processes to renew the licenses. But the operators are still in the dark on the renewal processes.
Addressing a launching ceremony of a detailed report titled 'Bangladesh Telecoms Sector: Challenges & opportunities' in a city hotel, the top executives of Grameenphone, Banglalink, Robi and Teletalk said the present mobile technology, 2G (second generation), is the base. Without knowing the outcome of 2G renewals, it is difficult for the operators to think about 3G hindering the future capital expenditure (capex) investment by the telecommunication companies.
Telecom is the largest contributor to country's foreign direct investment (FDI) and also a major contributor to the national fiscal revenues.
Asian Tiger Capital Partners (ATCP) conducted the report and Association of Mobile Telecom Operators of Bangladesh (AMTOB) arranged the launching ceremony of the report which was also addressed by AMTOB secretary general Abu Saeed Khan, Chief Information Commissioner Mohammad Jamir and secretary of ministry of post and telecommunication Sunil Kanti Bose.
The operators also said that the growth of the mobile companies marked a decline in recent months due to the strict conditions in getting the new mobile connections.
Oddvar Hesjedal, chief executive officer of Grameenphone, Ahmed Abou Doma, Managing Director & CEO of Banglalink, Bidyut Kumar Basu, Chief Marketing Officer of Robi Axiata Ltd and Mujibur Rahman, Managing Director of Teletalk Bangladesh took part in a panel discussion, moderated by Ifty Islam, Managing Partner of ATCP.
Oddvar Hesjedal said a fundamental change could be done only through imparting quality education to mass people in digitising the economy of the country.
Secretary of ministry of post and telecommunication Sunil Kanti Bose said government is conducting a guideline on allowing 3G and also progressing on renewing 2G telecom licenses
In Bangladesh, the duration of a telecom licence is 15 years. As technology changes by the day, both the regulator and operators may need to change the conditions on the licence.
Hesjedal says the operators pay for the licences. "So if changes are needed, it should be done in consultation with the operators."
He said fundamental change in society can be possible to make best for the world through this by ensuring health, education. Moreover, digitised education can be ensured for making a big change in the society. He also talked about new licensing guideline as he emphasized the 3g's coming in bangladesh as early as possible.
In Bangladesh, the mobile penetration rate is about 33 percent and 56.36 million people are now under the mobile telephone networks. Operators believe this number could double if the government withdraws the Tk 800 tax on SIM (subscriber identity module).
The huge tax burden also sets back the development of telecoms in the country, the AT Capital Research report said.
The AT Capital Research report is the first report on telecom sector which has been made public.
Asian Tiger Capital completed the report on the prospects for the telecoms sector going forward looking at a broad range of issues relevant for industry stakeholders and investors. This include an analysis of the major mobile phone operators and their future growth prospects in both voice and data, 3G, VAS, Convergence Technologies and the opportunities to help build a Digital Bangladesh.
Mr Sunil Kanti Bose said discussions with operators and also public opinion will be taken.
To address the problems, it is necessary to think about security, at what age level people will have SIM.
He also touched the issues like uncertainty of licenses, renewal of mobile licenses. From 2g to 3g transformation, what will be the rate for 2g when 3g will come.
Bidyut Kumar Basu, Chief Marketing Officer, Robi Axiata emphasized going forward. For the growth of this sector, people of BD should know how to use mobile and other applications. Everybody (Govt, operators) should grow ecosystem. Mobile operators cannot do alone anything. Other related parties like software developer, mobile manufacturer, laptop manufacturer should work together to develop a good ecosystem.
If 3G can be the opportunity to generate revenue, then six operators should come together to implicate 3G, as Bangladesh will be benefitted by this.
To describe Digital Bd, he also said that it is something which means people have their own laptop or mobile phone to have information like job search, ticket cutting etc.
Mr Jamir said the entire mobile operators should move forward by making partnership. In this sector opportunities and challenges move together. Here the challenges are sim tax, huge decline in acquisition and competitive market. On the other hand, this sector brings a great opportunity by providing information to SME. However, government is very much sensitive with private sector. Govt and Mob operators will try to achieve 100 mn in 2015. Good environment can be generated for development in rural areas by mobile sector and IT development. PPP infrastructure also can be made possible in this sector. End user will be benefitted. As this PPP have concerns as well as anxiety and concerns, so govt should address this.
In the second panel discussion, Mr. Anir Choudhury, Policy Advisor, A2I, PMO Office, Mr. Per-Henrik Nielsen, Chief Executive Officer of Ericsson, Mr. Wonder Wang, Chief Executive Officer of Huawei, Mr. Fahim Mashroor, Senior Vice President, BASIS and Mr. Abu Saeed Khan, Secretary Generel, AMTOB were present and discussed about the telecoms sector's role in establishing a Digital Bangladesh.