Telcos seeks to know fate of 2G renewal before going for 3G
Tuesday, 14 December 2010
Telecom operators are seeking a clear picture from the government on issues relating to renewal of 2G telecom licences 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.
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.
"We have already framed a draft renewal guideline but the fees and other modalities are yet to be finalised," a source in the Bangladesh Telecommunication Regulatory Commission (BTRC) told the FE recently.
According to the draft licence renewal guidelines, four major operators are likely to pay a combined fee of Tk 140 billion for licence renewal next year.
However, a source in the Association of Mobile Telecom Operators of Bangladesh (AMTOB) said that they are yet to get any intimation on the proposed licence renewal guidelines from the BTRC.
Addressing a launching ceremony of a detailed report titled 'Bangladesh Telecoms Sector: Challenges & Opportunities' in a city hotel recently, 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.
This is hindering the future capital expenditure (capex) investment by the telecommunication companies, operators said.
Telecom is the largest contributor to country's foreign direct investment (FDI) and also a major contributor to the national fiscal revenues. In 2008, investment in the telecom sector amounted to around $ 1.3 billion.
Telecom has one of the highest capex among any sector, with the continual need for upgrading of technology across the country.
Asian Tiger Capital Partners (ATCP) conducted the report and AMTOB arranged its launching.
The telecom 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.
Mr 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 renewal of 2G telecom licenses.
Mr 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 to 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 hinders 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.
Meanwhile, only three years since a project started, new research conducted at the Millennium Villages by Ericsson, The Earth Institute and Millennium Promise shows that quality and availability of health and education services improved thanks to access to mobile connectivity. The recently published report, The Impact of Mobile Connectivity on the Millennium Development Goals (MDGs) in Africa, also shows increased benefits were identified for small businesses by reducing transportation costs and supporting micro business preconditions such as price and market information being accessible.
The results of the monitoring and evaluation study -conducted in Ghana, Nigeria, Kenya and Tanzania- show that the introduction of mobile networks has the potential to influence socio-economic development for individuals and villages in remote areas. This is in line with different studies done showing that 1.2 percent growth GDP can be achieved in developing countries for every 10 percent increase in mobile penetration rate.
With the aid of a mobile phone and a toll free number to the health services, health workers can save lives. In the studied countries this would add up to 6000 lives saved per year.
In terms for transportation, respondents reported saving an average of USD 5 per trip by placing calls instead of travelling. This difference is particularly important considering the income of the area is less than USD 1.0 per day.
Elaine Weidman Grunewald, Head of Sustainability, Ericsson, says, "This report sets an important baseline, and the results of the study show the potential for expansion and use of mobile technology in other African and developing countries in rural, remote and poor areas. We believe that a large majority of the approximately 57 million people living in rural areas in these four countries could benefit from mobile communications with reasonable levels of investment in additional telecommunications infrastructure."
Lars Linden, Head of Ericsson Sub-Saharan Africa, says, "The tremendous growth of mobile networks and uptake of mobile subscriptions indicates ground-breaking opportunities for society taking advantage of the implemented infrastructure. However, there are still 1 billion people living outside mobile network coverage and electrical grid in the world. We have found that the use of renewable energy sources combined with customized applications presents a sustainable business opportunity for operators, at the same time supporting individuals to a better quality of life. Ericsson is committed to supporting this need"
The same opportunity for society and operators can be seen in other countries. In India mobile phone use is a large driver of income growth. Rural Indian mobile phone users most sought after services are: agricultural information (40%), entertainment services (16%) such as music, and financial services (8%) such as mobile remittance and money. Health applications were ranked as 5th in importance. This is somewhat different than in developed markets.
"The mobile phone is the most powerful technology for ending poverty in the world today," said Professor Jeffrey Sachs, Director of Columbia University's Earth Institute. "With the spread of 3G and soon 4G technology, even the most remote schools in the poorest parts of the world can connect to the Internet and share ideas with other classrooms a continent away. Pastoralists, once isolated, can now quickly check on local market prices and make important decisions on whether to bring their herds in from kilometers away for sale in the local town. And critical health data and life-saving information can be sent by text messages to clinics to support rapid diagnoses for patients in remote villages. The Millennium Villages project is deeply honored to partner with Ericsson, a remarkable pioneer and leader in the field of telecommunications and development. With their bold vision and action, in partnership with rural communities throughout Africa, poverty is being rolled back and an era of new prosperity is dawning."
In 2007, Ericsson committed to provide connectivity to the Millennium Villages Project in partnership with MTN, Zain and Sony Ericsson. In a public-private partnership with the Earth Institute, Millennium Promise and the United Nations Development Program (UNDP), Ericsson is bringing mobile communications and internet to more than a half million people in 10 African countries where the MVP is working. By the end of 2009, 83 percent of the villages had mobile communication capabilities.
Currently, there are 5 billion mobile subscriptions worldwide. Out of those, 450 million are in Africa, which represents 43 percent of the African population. In Sub-Saharan Africa, the penetration is 42 percent, representing 297 million. By 2013, analysts estimate that sub-Saharan Africa will increase its mobile penetration to 65 percent.
Among the six mobile operators, five licenses will expire by 2011.
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.
"We have already framed a draft renewal guideline but the fees and other modalities are yet to be finalised," a source in the Bangladesh Telecommunication Regulatory Commission (BTRC) told the FE recently.
According to the draft licence renewal guidelines, four major operators are likely to pay a combined fee of Tk 140 billion for licence renewal next year.
However, a source in the Association of Mobile Telecom Operators of Bangladesh (AMTOB) said that they are yet to get any intimation on the proposed licence renewal guidelines from the BTRC.
Addressing a launching ceremony of a detailed report titled 'Bangladesh Telecoms Sector: Challenges & Opportunities' in a city hotel recently, 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.
This is hindering the future capital expenditure (capex) investment by the telecommunication companies, operators said.
Telecom is the largest contributor to country's foreign direct investment (FDI) and also a major contributor to the national fiscal revenues. In 2008, investment in the telecom sector amounted to around $ 1.3 billion.
Telecom has one of the highest capex among any sector, with the continual need for upgrading of technology across the country.
Asian Tiger Capital Partners (ATCP) conducted the report and AMTOB arranged its launching.
The telecom 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.
Mr 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 renewal of 2G telecom licenses.
Mr 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 to 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 hinders 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.
Meanwhile, only three years since a project started, new research conducted at the Millennium Villages by Ericsson, The Earth Institute and Millennium Promise shows that quality and availability of health and education services improved thanks to access to mobile connectivity. The recently published report, The Impact of Mobile Connectivity on the Millennium Development Goals (MDGs) in Africa, also shows increased benefits were identified for small businesses by reducing transportation costs and supporting micro business preconditions such as price and market information being accessible.
The results of the monitoring and evaluation study -conducted in Ghana, Nigeria, Kenya and Tanzania- show that the introduction of mobile networks has the potential to influence socio-economic development for individuals and villages in remote areas. This is in line with different studies done showing that 1.2 percent growth GDP can be achieved in developing countries for every 10 percent increase in mobile penetration rate.
With the aid of a mobile phone and a toll free number to the health services, health workers can save lives. In the studied countries this would add up to 6000 lives saved per year.
In terms for transportation, respondents reported saving an average of USD 5 per trip by placing calls instead of travelling. This difference is particularly important considering the income of the area is less than USD 1.0 per day.
Elaine Weidman Grunewald, Head of Sustainability, Ericsson, says, "This report sets an important baseline, and the results of the study show the potential for expansion and use of mobile technology in other African and developing countries in rural, remote and poor areas. We believe that a large majority of the approximately 57 million people living in rural areas in these four countries could benefit from mobile communications with reasonable levels of investment in additional telecommunications infrastructure."
Lars Linden, Head of Ericsson Sub-Saharan Africa, says, "The tremendous growth of mobile networks and uptake of mobile subscriptions indicates ground-breaking opportunities for society taking advantage of the implemented infrastructure. However, there are still 1 billion people living outside mobile network coverage and electrical grid in the world. We have found that the use of renewable energy sources combined with customized applications presents a sustainable business opportunity for operators, at the same time supporting individuals to a better quality of life. Ericsson is committed to supporting this need"
The same opportunity for society and operators can be seen in other countries. In India mobile phone use is a large driver of income growth. Rural Indian mobile phone users most sought after services are: agricultural information (40%), entertainment services (16%) such as music, and financial services (8%) such as mobile remittance and money. Health applications were ranked as 5th in importance. This is somewhat different than in developed markets.
"The mobile phone is the most powerful technology for ending poverty in the world today," said Professor Jeffrey Sachs, Director of Columbia University's Earth Institute. "With the spread of 3G and soon 4G technology, even the most remote schools in the poorest parts of the world can connect to the Internet and share ideas with other classrooms a continent away. Pastoralists, once isolated, can now quickly check on local market prices and make important decisions on whether to bring their herds in from kilometers away for sale in the local town. And critical health data and life-saving information can be sent by text messages to clinics to support rapid diagnoses for patients in remote villages. The Millennium Villages project is deeply honored to partner with Ericsson, a remarkable pioneer and leader in the field of telecommunications and development. With their bold vision and action, in partnership with rural communities throughout Africa, poverty is being rolled back and an era of new prosperity is dawning."
In 2007, Ericsson committed to provide connectivity to the Millennium Villages Project in partnership with MTN, Zain and Sony Ericsson. In a public-private partnership with the Earth Institute, Millennium Promise and the United Nations Development Program (UNDP), Ericsson is bringing mobile communications and internet to more than a half million people in 10 African countries where the MVP is working. By the end of 2009, 83 percent of the villages had mobile communication capabilities.
Currently, there are 5 billion mobile subscriptions worldwide. Out of those, 450 million are in Africa, which represents 43 percent of the African population. In Sub-Saharan Africa, the penetration is 42 percent, representing 297 million. By 2013, analysts estimate that sub-Saharan Africa will increase its mobile penetration to 65 percent.