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Number of mobile phone users to double in next two years

Wednesday, 22 August 2007


Sarwar Zahan
The availability of phones in rural areas has created new opportunities for income generation through self-employment as villagers now have access to modern information and communication technologies, Asian Development Bank (ADB) said in a report.
It has suggested that the community information services network could be broadened nationwide to cater to the huge information needs of rural subscribers.
These outlets, equipped with computers, printers, and internet access, can be used as expatriate workers' remittance distribution centres to strengthen the flow of remittances through legal channels, ADB said.
The donor agency also forecast that the total number of mobile phone users in the country will double in the next two years. Competition among the companies will result in faster growth in the sector, the report said.
The number of subscribers doubled in one year up from 11 million in 2006 to about 22 million in March 2007, and is forecast to increase to 44 million by 2009, the report noted.
Six mobile operators including GrameenPhone, majority owned by Norway's Telenor; Aktel, majority owned by Telekom Malaysia International; Banglalink, owned by Egyptian Orascom Telecom; CityCell, a joint venture between Pacific Bangladesh Telecom Limited and Singapore's SingTel and state-run Teletalk are providing mobile phone services in the country. Besides, Warid Telecom, a subsidiary of Gulf-based Abu Dhabi Group, launched its service in Bangladesh on May 10 last.
The ADB noted that mobile telecommunications had become one of the most vibrant service sectors in the country with its growing network coverage, which reaches 82 per cent of the land area.
The competition among five operators has significantly reduced tariff rates in the past couple of years, it said.
Bangladesh Telecommunication Regulatory Commission sources said it would make the market suitable for healthy competition and facilitate further reduction in the call charges and improvement in services.
Building virtual infrastructure is seen as more important than that of physical infrastructure, they said.
According to a Japan External Trade Organisation study, the cost related to the usage of mobile phone, including monthly basic charge and connection fee for using mobile phone, has gone down because of internal stiff competition among the mobile operators, which belong to private sector. Due to the emergence of several new private cell phone operators, the new connection fee for mobile phones has become cheaper and it is anticipated that the call charge and monthly basic charge for mobile phone with ISD facilities will further go down.