GP will continue to make large investments
Tuesday, 18 September 2007
FE Report
Grameenphone Ltd (GP), the country's largest mobile phone operator, will continue to make large investments to expand network capacity to accommodate the increasing number of subscribers.
"It is important that the regulatory and tax regimes remain predictable and stable to sustain this high growth and large investments by the telecommunications industry," the immediate past chief executive officer (CEO) of the company, Erik Aas said in the latest annual report.
The report said that the company will also explore the possibility of listing its shares in the Bangladesh stock market.
The cumulative investments of the company up to December 2006 stood at about Tk 76 billion making it one of the largest private sector investments in Bangladesh.
GP, the largest corporate taxpayer of the country, contributed Tk 20.5 billion in 2006 to the national exchequer. The accumulated contribution to the national exchequer from the company's inception upto December, 2006 was Tk 67.18 billion.
GP has more than 14 million subscribers as of July, 2007.
According to the latest annual report, the GP's net profit to turnover rose 21 per cent in 2006 against the previous year.
The profit of the company in 2006 rose to Tk 9.50 billion against Tk 6.91 billion of 2005.
The company's return on investment and asset turnover ratio in 2006 marked 36 per cent and 103 per cent rises over those of the previous year.
The earning per share and dividend per share in 2006 also rose to Tk 168 and Tk 25.8 against Tk 122 and Tk 21.5 respectively.
Chairman of the company, Arve Johansen said the year 2006 was a year of considerable achievement in terms of subscriber growth, expansion of network and improved customer service.
"This has been possible with a highly competent and dedicated team of people and recognise a number of significant challenges ahead on which we are aligning our strategy accordingly to reach our goal with sincere efforts," he noted.
Commenting on the regulatory environment for the telecommunication industry, Johansen said the regulatory regime of the country is still passing through a transition process.
"Unpredictable tax regime and discriminatory policies are still seen impediments to the growth of the telecommunication sector, one of the thriving private sector infrastructure providers in Bangladesh," Johansen said.
He expressed the hope that the Bangladesh Telecommunication Regulatory Commission (BTRC), the watchdog of the telecommunication sector would ensure a level-playing field, with a stable and enabling regulatory environment.
Having a strong presence in areas of corporate social responsibility (CSR), the GP sincerely strives to take part in the country's development.
The GP's CSR Strategy 2006-07 focuses on education, health and empowerment/poverty alleviation. The company is the official sponsor of Bangladesh cricket team.
"As a transparent and compliant company, CSR remains an integral part of GP," the annual report said.
The GP is committed to making mobile telephony and other technology solutions available to everyone, thereby making a positive contribution to the lives of the people of Bangladesh.
"Declining tariffs, affordable prices of handsets and superior network coverage all over the country are the three main drivers for GP's success," the report mentioned.
Norway-based Telenor AS holds 62 per cent and Bangladesh-based Grameen Telecom owns 38 per cent shares of GP.
Telenor AS, a 150-year old company is the leading telecommunications company of Norway listed in both the Oslo and NASDAQ stock exchanges.
On the other hand, Grameen Telecom is a not-for-profit company and works in close collaboration with Grameen Bank, the winner of Nobel Peace Prize in 2006 along with its founder Muhammad Yunus.
Grameenphone Ltd (GP), the country's largest mobile phone operator, will continue to make large investments to expand network capacity to accommodate the increasing number of subscribers.
"It is important that the regulatory and tax regimes remain predictable and stable to sustain this high growth and large investments by the telecommunications industry," the immediate past chief executive officer (CEO) of the company, Erik Aas said in the latest annual report.
The report said that the company will also explore the possibility of listing its shares in the Bangladesh stock market.
The cumulative investments of the company up to December 2006 stood at about Tk 76 billion making it one of the largest private sector investments in Bangladesh.
GP, the largest corporate taxpayer of the country, contributed Tk 20.5 billion in 2006 to the national exchequer. The accumulated contribution to the national exchequer from the company's inception upto December, 2006 was Tk 67.18 billion.
GP has more than 14 million subscribers as of July, 2007.
According to the latest annual report, the GP's net profit to turnover rose 21 per cent in 2006 against the previous year.
The profit of the company in 2006 rose to Tk 9.50 billion against Tk 6.91 billion of 2005.
The company's return on investment and asset turnover ratio in 2006 marked 36 per cent and 103 per cent rises over those of the previous year.
The earning per share and dividend per share in 2006 also rose to Tk 168 and Tk 25.8 against Tk 122 and Tk 21.5 respectively.
Chairman of the company, Arve Johansen said the year 2006 was a year of considerable achievement in terms of subscriber growth, expansion of network and improved customer service.
"This has been possible with a highly competent and dedicated team of people and recognise a number of significant challenges ahead on which we are aligning our strategy accordingly to reach our goal with sincere efforts," he noted.
Commenting on the regulatory environment for the telecommunication industry, Johansen said the regulatory regime of the country is still passing through a transition process.
"Unpredictable tax regime and discriminatory policies are still seen impediments to the growth of the telecommunication sector, one of the thriving private sector infrastructure providers in Bangladesh," Johansen said.
He expressed the hope that the Bangladesh Telecommunication Regulatory Commission (BTRC), the watchdog of the telecommunication sector would ensure a level-playing field, with a stable and enabling regulatory environment.
Having a strong presence in areas of corporate social responsibility (CSR), the GP sincerely strives to take part in the country's development.
The GP's CSR Strategy 2006-07 focuses on education, health and empowerment/poverty alleviation. The company is the official sponsor of Bangladesh cricket team.
"As a transparent and compliant company, CSR remains an integral part of GP," the annual report said.
The GP is committed to making mobile telephony and other technology solutions available to everyone, thereby making a positive contribution to the lives of the people of Bangladesh.
"Declining tariffs, affordable prices of handsets and superior network coverage all over the country are the three main drivers for GP's success," the report mentioned.
Norway-based Telenor AS holds 62 per cent and Bangladesh-based Grameen Telecom owns 38 per cent shares of GP.
Telenor AS, a 150-year old company is the leading telecommunications company of Norway listed in both the Oslo and NASDAQ stock exchanges.
On the other hand, Grameen Telecom is a not-for-profit company and works in close collaboration with Grameen Bank, the winner of Nobel Peace Prize in 2006 along with its founder Muhammad Yunus.