Promoting local telecom industry
Wednesday, 4 January 2012
Telecom industry has now become one of the profitable business industries throughout the world. Without any doubt, today telephone is a part of our everyday life. Nowadays, the phone is used not only for making calls. Among many other functions, it is used for communicating through text-messages and so-called multi-media messages as well as to connect us to the internet. The opportunities that lie in the telecom market seem endless and the growing demand for the mobile telephony system is creating a world-wide market.
The telecom industry does now-a-days operation in terms of not only millions but also billions. Actors in this industry are seeking the most profitable markets throughout the world. Against this backdrop, telecom companies like GP, Banglalink, Aktel/Robi, Warid/Airtel entered the Bangladesh market, assessing properly its growth potential. We are not going to the debate on whether they should be permitted or not, whether protectionist or liberal policy should be taken but our question or concern is why the government is not promoting our own telecom industry like Teletalk. Why did it not keep pace with the competition from other foreign companies? What and where are the loopholes in the strategy/ policy with Teletalk? If we just look at the strategy of Robi, "Ke hote chaie kotipoti" from this business tactic, they could attract different types of subscribers. In this age of free market and globalisation, you have to be smarter enough, dynamic, and creative in every sector to survive. It is high time to rethink our telecom policy/strategy in order to promoting our own telecom industry.
In the telecom sector, many earth-shaking changes have taken place since the government of Bangladesh allowed private sector participation in telecom sector by granting the permission to operate as a private service provider in 1989. Such licences were later awarded to two operators, BRTA (Bangladesh Rural Telecom Authority) and Sheba Telecom Pvt. Ltd. Opening its mobile phone sector to private and foreign investment as far back as in 1989, Bangladesh became a pioneering figure among the least development countries (LDCs). Pacific Telecom launched the country's first mobile phone service and subsequently, three more mobile phone licences were issued, in 1996, 2004 and 2005.
From 1993 until 1996, the mobile phone services were monopolised by one company; Pacific Bangladesh Telecom Ltd. which did not let its customers to benefit themselves properly from its operations. However, with the commissioning of mobile phone service by Grameen Phone Limited and Aktel in 1997, the situation started to improve in terms of price reduction and quality. The later period could be termed the 'golden period' of Grameen phone Ltd.. But with the arrival of Banglalink in 2005, the mobile phone market witnessed immense price competition. The intensity of competition came as a blessing for the customers. This change in trend forced every player to adjust their price policy and quality.
The Bangladesh telecom industry is such a market which has already attracted a lot of researchers to explore the opportunities from around the world. A lot of studies have been published by a number of researchers regarding this market. But has any Bangladeshi researcher/entrepreneur/policymaker studied closely and deeply about what we are doing with regard to promoting our own telecom industry. Just to use the concept of teletalk -- "Teletalk e kotha bolun, Desher taka deshe rakhun" -- can be an effective strategy.
In Bangladesh, day by day; the numbers of subscribers are increasing rapidly. For example, the total number of mobile phone subscribers reached 30.72 million at the end of August 2007 and the figure turned into 45.4 million at the end of August 2008. The total number of mobile phone active subscribers reached 48.91 million at the end of August, 2009 and 63.466 million at the end of August 2010. Lastly, at the end of August 2011, the total number of mobile phone active subscribers reached 79.677 million. Against this backdrop, the total subscribers of Teletalk were only 1.161 million at the end of August 2011. To make it clear, the increasing trends of subscribers of different mobile companies are shown below:
*The above subscribers' numbers are declared by the mobile operators.
If we look at India, we observe that the policy-makers there are giving a special attention to protect and promote their infant industries. In India, their domestic companies rather than foreign ones dominate the telecom market. There is no doubt that in order to build digital Bangladesh, the liberalisation of mobile industry is one of the key means. And, the mobile companies are contributing to our national economy through taxes, fees etc. but the lion's part of their profit goes to their respective countries.
It is a matter of consideration now that if 79.677 million active subscribers use phone at least five minutes each, then how much money they take away to their countries of origin in the form of profits? We could have saved the money, had we promoted our own telecom industry.
So, it is our appeal to the concerned authority to seriously rethink about our strategy/policy to promote our own telecom industry. If the local companies need intensive care, we should provide that. Lastly, we must use our own phones. So,"Desher phone e kotha bolun, Desher taka deshe rakhun".
The writer is a post graduate student in International Relations, University of Dhaka, can be reached at e-mail: shariful.shuvo. duir@gmail.com
The telecom industry does now-a-days operation in terms of not only millions but also billions. Actors in this industry are seeking the most profitable markets throughout the world. Against this backdrop, telecom companies like GP, Banglalink, Aktel/Robi, Warid/Airtel entered the Bangladesh market, assessing properly its growth potential. We are not going to the debate on whether they should be permitted or not, whether protectionist or liberal policy should be taken but our question or concern is why the government is not promoting our own telecom industry like Teletalk. Why did it not keep pace with the competition from other foreign companies? What and where are the loopholes in the strategy/ policy with Teletalk? If we just look at the strategy of Robi, "Ke hote chaie kotipoti" from this business tactic, they could attract different types of subscribers. In this age of free market and globalisation, you have to be smarter enough, dynamic, and creative in every sector to survive. It is high time to rethink our telecom policy/strategy in order to promoting our own telecom industry.
In the telecom sector, many earth-shaking changes have taken place since the government of Bangladesh allowed private sector participation in telecom sector by granting the permission to operate as a private service provider in 1989. Such licences were later awarded to two operators, BRTA (Bangladesh Rural Telecom Authority) and Sheba Telecom Pvt. Ltd. Opening its mobile phone sector to private and foreign investment as far back as in 1989, Bangladesh became a pioneering figure among the least development countries (LDCs). Pacific Telecom launched the country's first mobile phone service and subsequently, three more mobile phone licences were issued, in 1996, 2004 and 2005.
From 1993 until 1996, the mobile phone services were monopolised by one company; Pacific Bangladesh Telecom Ltd. which did not let its customers to benefit themselves properly from its operations. However, with the commissioning of mobile phone service by Grameen Phone Limited and Aktel in 1997, the situation started to improve in terms of price reduction and quality. The later period could be termed the 'golden period' of Grameen phone Ltd.. But with the arrival of Banglalink in 2005, the mobile phone market witnessed immense price competition. The intensity of competition came as a blessing for the customers. This change in trend forced every player to adjust their price policy and quality.
The Bangladesh telecom industry is such a market which has already attracted a lot of researchers to explore the opportunities from around the world. A lot of studies have been published by a number of researchers regarding this market. But has any Bangladeshi researcher/entrepreneur/policymaker studied closely and deeply about what we are doing with regard to promoting our own telecom industry. Just to use the concept of teletalk -- "Teletalk e kotha bolun, Desher taka deshe rakhun" -- can be an effective strategy.
In Bangladesh, day by day; the numbers of subscribers are increasing rapidly. For example, the total number of mobile phone subscribers reached 30.72 million at the end of August 2007 and the figure turned into 45.4 million at the end of August 2008. The total number of mobile phone active subscribers reached 48.91 million at the end of August, 2009 and 63.466 million at the end of August 2010. Lastly, at the end of August 2011, the total number of mobile phone active subscribers reached 79.677 million. Against this backdrop, the total subscribers of Teletalk were only 1.161 million at the end of August 2011. To make it clear, the increasing trends of subscribers of different mobile companies are shown below:
*The above subscribers' numbers are declared by the mobile operators.
If we look at India, we observe that the policy-makers there are giving a special attention to protect and promote their infant industries. In India, their domestic companies rather than foreign ones dominate the telecom market. There is no doubt that in order to build digital Bangladesh, the liberalisation of mobile industry is one of the key means. And, the mobile companies are contributing to our national economy through taxes, fees etc. but the lion's part of their profit goes to their respective countries.
It is a matter of consideration now that if 79.677 million active subscribers use phone at least five minutes each, then how much money they take away to their countries of origin in the form of profits? We could have saved the money, had we promoted our own telecom industry.
So, it is our appeal to the concerned authority to seriously rethink about our strategy/policy to promote our own telecom industry. If the local companies need intensive care, we should provide that. Lastly, we must use our own phones. So,"Desher phone e kotha bolun, Desher taka deshe rakhun".
The writer is a post graduate student in International Relations, University of Dhaka, can be reached at e-mail: shariful.shuvo. duir@gmail.com