Orascom wants control of HTIL, says Reuters
Egypt’s Orascom Telecom wants to take control of Hutchison Telecommunications International Ltd (HTIL), according to a Reuters interview with Orascom chairman Naguib Sawiris. According to TeleGeography’s GlobalComms database, Orascom took a 19.3% stake in HTIL for USD1.3 billion in December 2005. HTIL holds stakes in fixed line operations in Hong Kong and mobile businesses in India, Hong Kong, Macau, Thailand, Israel, Sri Lanka, Ghana, Indonesia and Vietnam. The combined footprint of Orascom and HTIL operations includes important adjoining markets such as Orascom’s operations in Pakistan and Bangladesh, and HTIL’s businesses in India and Sri Lanka. On a combined basis, the pair control wireless operations in 15 countries covering two billion people, approximately a third of the world’s population.
According to TeleGeography’s GlobalComms database, Orascom is currently seeking approvals in each of HTIL’s constituent countries to raise its stake in HTIL by 3.7% to 23%, and Sawiris has previously signalled his intent to increase that stake further. As part of the original deal the two companies agreed a two-year standstill period after which both will have right of first refusal on any sale. Orascom also has first call if Hutchison Whampoa chooses to sell more than 10% in HTIL. When asked by Reuters what sized stake he wanted to purchase, the Orascom chairman said simply: ‘All of it,’ before adding that he wanted a controlling stake at the very least. He declined to provide a timeline or indicate how much he would be willing to pay for the shares, but revealed that he was in ‘constant talks’ regarding the price, and looking ‘to come to a price that is fair to both parties’.
Source- http://www.telegeography.com
Nokia and Plan Give a Voice to Africa’s Youth
ESPOO, Finland, October 10 /PRNewswire-FirstCall/ — Nokia (Nachrichten/Aktienkurs) and international children’s organisation, Plan, have joined forces to use modern communications technologies in Africa to raise children’s awareness of their rights and opportunities. Nokia has provided an initial donation of 1 million Euros for 2006. The first stage of this new joint effort will see Nokia focus on supporting Plan’s existing media and communications technology projects for Africa’s children and youth.
“We believe that we can have a positive impact through mobile technology as it is used to enable young people to realise their full potential. The aim of our cooperation with Plan is to fight poverty by empowering African youth and giving them a voice through the use of technology. Plan has a good existing network, positive track record and extensive experience in using technology for youth development in Africa and was therefore, a very good value fit for Nokia,” said Veli Sundback, Executive Vice President, Corporate Relations and Responsibility, Nokia.
“Plan is committed to working in partnerships, not only with local groups or governments in the countries where we work, but also with like-minded corporate organisations like Nokia. I believe that this cooperation will deliver long-term sustainable benefits for hundreds of communities in the developing world,” said Tom Miller, Plan CEO.
Access to and use of Information Communication Technologies (ICT) such as radio, the internet, mobile devices and television is a vital element in helping to tackle poverty and improve the respect, fulfilment and protection of children’s rights. In this cooperation, ICT becomes an important tool for children and youth to make their voice heard and to learn about issues that are relevant for them.
Involving children in digital media production either on the radio, in video productions or in music helps introduce the potential of ICT to communities affected by poverty in a non-threatening way and links remote communities to a much wider national audience. Producing their own digital media is often revolutionary for many children, providing them with the chance to gain self-confidence and further influence their own future.
About Plan
Plan is a humanitarian child-centred organization working in 46 developing countries, with families and their communities. Founded almost 70 years ago, Plan has no religious, political or governmental affiliation. Plan has 64 child media projects running in 31 countries at present. These projects include radio programs on child rights in West Africa; video projects in India, Kenya and Tanzania; radio and newspaper projects in Central America; TV production in Vietnam; internet projects for teenagers in Burkina Faso; and radio programs in Thailand, the Philippines and Malawi.
About Nokia
Nokia has a positive impact on society that extends beyond the advanced technology, products and services the company creates. Through its cooperation with non-profit and governmental organizations, the company prepares young people to embrace opportunities created by the global economy and new technological advancements. The company has been an active regional contributor to youth and education causes for many years, with Nokia employees making their own contributions as volunteers in a range of programs throughout the world.
Source- http://www.finanznachrichten.de
Research and Markets: China Mobile Limited – Has the World’s Largest Mobile Subscriber Base With Over 260 Million Users
Research and Markets (http://www.researchandmarkets.com/reports/c42991) has announced the addition of 2006 Asia Telco Company Profiles to their offering.
This report presents 12 profiles of selected major telecommunications companies in Asia. Each profile provides a descriptive overview of the business of the particular company as well as the latest available financial and operational statistics.
Topics Covered
1. BHARAT SANCHAR NIGAM LTD 2. CHINA MOBILE LIMITED 3. CHINA NETCOM GROUP 4. CHINA TELECOM CORPORATION 5. HUTCHISON WHAMPOA LTD 6. NTT DOCOMO 7. PACIFIC INTERNET LTD 8. PCCW LTD 9. SINGTEL 10. STARHUB PTE LTD 11. TELEKOM MALAYSIA 12. VIETNAM POSTS & TELECOMMUNICATIONS CORPORATION 13. GLOSSARY OF ABBREVIATIONS List of Tables & Exhibits
Summary
Bharat Sanchar Nigam Limited (BSNL) – India’s state-owned BSNL owns around 85% of the country’s copper wire local loop networks. The company is the largest telecom operator and the largest public sector enterprise in India, providing basic fixed-line services nationwide, except for the cities of Mumbai and Delhi. BSNL lost its exclusive rights to local access and national telephony in 2001. To compensate for reduced revenues, it built a national GSM network and entered the mobile sector, becoming one of the country’s biggest GSM operators. The company also entered the international telephony market in February 2003.
China Mobile Limited – China Mobile has the world’s largest mobile subscriber base (over 260 million) and the largest geographically contiguous mobile network. The company also has a strategic alliance with Vodafone. Listed on the New York and Hong Kong stock exchanges since 1997, China Mobile has been facing competition from cheaper city-based PHS mobile services offered by the country’s two big fixed-line operators. In preparation for 3G services in China, the company submitted its application for a WCDMA licence in July 2005.
China Netcom Group – China Netcom Group is the second largest fixed-line operator in China. The group owns 30% of the country’s fixed-line infrastructure and serves 35% of its fixed-line customers. As part of its infrastructure it has a 360Gb/s IP backbone network and the Asia Netcom submarine cable network. Its services include PSTN and VoIP telephony, the ‘Little Smart’ PHS service, broadband Internet access, leased lines and VPNs. With an IPO in November 2004, it was the last of the major telcos in China to go public.
China Telecom Corporation Ltd – China Telecom Corporation Ltd is the principal provider of local, domestic and international voice and data services, dial-up and broadband Internet access in 20 of the 31 regions in China. The company commenced operations in September 2002, then went public on the HKSE and NYSE in November of that year, after the government split the original state-owned China Telecom into the China Netcom and the current China Telecom. Revenue growth engines have included the company’s PHS mobile service and its broadband Internet service. In mid-2005, China Telecom signed a landmark cooperative agreement with ZTE to provide the world’s largest fixed-line Next-Generation Network (NGN) in China covering 30 provinces.
Hutchison Whampoa Ltd – Hutchison Whampoa, a huge Hong Kong based conglomerate, has become heavily involved in telecommunications and is now a serious global player. As well as its Hong Kong business, it has a presence in a growing number of countries throughout Asia, Europe, Australasia, the Middle East, Africa and South America. Specialising in mobile communications, the company has invested billions in Third Generation (3G) licences and infrastructure and has been at the forefront of the global 3G roll-out.
NTT DoCoMo – Listed on the Tokyo, London and New York Stock Exchanges, NTT DoCoMo is controlled by NTT Corporation and is the mobile arm of the NTT group. DoCoMo is one of the largest mobile carriers in the world. In 2001, it became the first operator in the world to launch a 3G service. The company provides 2G and PHS mobile telephony, FOMA 3G mobile communications based on the WCDMA standard, i-mode mobile Internet access and email messaging platform and satellite mobile communications. DoCoMo’s 3G service surged in sales in 2004/05 after three years of weak sales. DoCoMo was determined to launch its 4G services during 2006, several years ahead of its competitors.
Pacific Internet Ltd – NASDAQ-listed Pacific Internet Ltd is one of the largest Internet Service Providers (ISPs) in the Asia Pacific, providing Internet access and services in Singapore, Australia, Philippines, Hong Kong, Thailand, India and Malaysia. Pacific Internet provides end-to-end Internet services for corporate and residential customers, including dial-up access, DSL and wireless broadband access, leased line services, web hosting and e-commerce services. Listed on the NASDAQ, Pacific Internet Ltd no longer has the government-owned SembCorp Ventures as a major shareholder. SembCorp sold its remaining shares to an investment company, Kingsville Capital, in 2005. Some months later, Kingsville sold its shareholding to venture capitalist Vantage Corporation.
PCCW Ltd – PCCW has been Hong Kong’s dominant fixed-line telecommunications provider since it acquired the incumbent, Cable and Wireless HKT, in 2000. Since the takeover, the company has been struggling with debt and organisational restructuring in its effort to remain viable. In January 2005, China Netcom reached an agreement with PCCW on the purchase of a 20% stake in PCCW for US$1 billion.
Singapore Telecom (SingTel) – Listed on the Singapore and Australian Stock Exchanges, SingTel is majority owned by the Singapore government. SingTel is the leading provider of fixed-line, mobile and Internet services in Singapore. With a small, saturated and competitive home market, SingTel has significant offshore interests, which now contribute a majority of its revenue. Its main subsidiary is Optus in Australia. Others include Telkomsel in Indonesia, Globe Telecom in the Philippines, Bharti Telecom in India and AIS in Thailand. The company has significant investments in international submarine cable networks, satellite systems and data centres.
StarHub Pte Ltd – StarHub provides voice and data services over fixed, mobile and Internet platforms. After a period of strong growth, the company has passed MobileOne to take second position behind SingTel in the mobile market and is now closing in on the incumbent. StarHub has deployed an IP-based network to serve corporate customers and has been building a nationwide network to serve the residential market. In April 2001, the operator was awarded a 3G mobile licence and launched a 3G service in 2005. Singapore Cable Vision merged with StarHub in July 2002, renaming itself StarHub Cable Vision, providing cable TV and broadband services. The operator’s broadband base represented over 50% of the residential broadband market in Singapore by end-2005.
Source- http://www.redorbit.com
Taiwan own-brand handset vendors switching to OEM business
Limited in chances to increase their branded handset sales, Taiwan-based handset vendors are now turning into OEM makers or waiting for an opportunity to consolidate operations, market sources pointed out.
Orienting themselves on the successful business model of High Tech Computer (HTC) that manufactures Windows Mobile-based smartphones and PDA phones, other local companies, such as Gigabyte Communications, Kinpo Electronics, E-Ten Information Systems and Mitac International, started marketing their own-brand handsets. However, being reportedly facing difficult conditions in the market, the companies have found the business also hindered by factors, such as technical barriers in 3G product developments and increased competition from Taiwan and China companies, the sources explained.
Kinpo, which launched its first iDo-branded PDA handset, the S600, in the third quarter of 2005, has recently decided to focus on the OEM handset business, consolidating its OEM/ODM handset operations with Cal-Comp Electronics (Thailand), according to the sources.
Under the consolidation plan, Kinpo’s handset unit will be included in Cal-Comp, with the latter focused on developing and manufacturing OEM handsets and Kinpo concentrated on marketing, the sources added. Both Kinpo and Cal-Comp are affiliated companies of the Compal Group.
Gigabyte Communications, which mostly shipped its handsets under the gSmart brand, switched to the OEM business after securing orders for PDA phones from O2 Asia Pacific in the second quarter of this year, according to the sources.
Some employees in the Gigabyte handset team recently moved to another own-brand handset vendor Inventec Appliances, the sources said.
Source- http://www.digitimes.com
Globe and Smart take varying routes to technology
The decision of Smart Communication to cut on its investments on 3G is quite surprising. No less than its president Napoleon Nazareno confirmed that Smart’s unilateral decision was a function of what it had regarded a small local market for 3G, as it preferred to concentrate on providing basic telephony services (voice calls and text messaging) to its more than 20 million subscribers. Nazareno did not say the exact investment retreat, but it could be surmised that it was substantial. It could also be surmised that Smart does not have right now the sufficient wherewithal to carry out its planned 3G capital expenditures, although it could readily go to the capital market.
There was nothing wrong with its business decision. But what could be baffling were the circumstances surrounding this investment decision. The nation’s biggest wireless carrier has chosen to tread the conservative path at a time when Globe Telecom, its main rival, was pouring $100 million on 3G. Also, Nazareno had made the announcement two weeks after Philippine Long Distance Telephone Co. chairman Manuel Pangilinan had joined the sales pitch on 3G, making the latter a virtual salesman of services but not of ideas. Was Nazareno finally reining his wayward boss, who was adjudged the 2005 “Management Man?”
Although it could be said that Smart’s decision was carefully studied, Nazareno did not take pains to explain its strategic value-or wisdom. Neither did he mention his expectations from the investment retreat. All he said was that Smart was putting a hold on its 3G investments because of a limited market, indicating it would only invest if and when the market was ready. So long as the market has not matured, Smart would stick to the conventional wisdom that only necessity would push it to make substantial investments. In short, it does not intend to join the technology race just to make a point.
On the contrary, Globe is taking the bull by its horns. It is making substantial investments on the firm belief that 3G possesses plenty of potentials and that Globe could further capture a bigger slice of the already tightening market if it starts investing on the emerging technology. Globe’s main owners, the Ayalas, are better known for their conservative stance in investing, but they are now taking a big gamble on 3G, probably pawning their last heirloom to raise funds for this technology that has been hyped to excite the global wireless market. It was the same route Globe took 10 years ago when it built its GSM network to become the first local carrier to provide 2G services in the country. When text messaging exploded in the late ’90s and early 2000, Globe had half of the market.
3G is not an entirely different technology. It is an upgrade of 2G (voice calls and SMS), 2.5G or GPRS (voice calls, SMS, and MMS) and 2.75G or EDGE (voice calls, SMS, and MMS with faster download rate). It has been predicted that in due time, 2G and its upgrade would be rendered obsolete by the speed, power, and economies of scale, which 3G would have achieved. Indeed, the technology has arrived, only the applications have yet to be firmly put in place. It has also been asserted that in due time, local wireless subscribers would migrate to 3G, replacing their 2G handsets with the more versatile 3G handsets to create an explosion that was similar to late ’90s and early 2000.
The 3G potentials are highlighted by the fact that the Philippines has come out with a friendly regulatory environment for the emergence of this wireless technology. The spate of auction and regulatory fees is regarded a barrier to entry, but the National Telecommunications Commission has opted to exact minimal fees to allow the local 3G licensees to impose lower fees for 3G services. Learning from the mistakes of other regulators, the commission has come out with policies that lower the investment risks, which the 3G operators face in deploying the technology. The commission is keenly aware how Japan has given 3G spectrums for free and 3G licenses for minimal fees. NTT DoCoMo now has more than half of its subscriber on 3G.
Aware of the frenetic pace of wireless technological innovations, Globe however, has chosen to go straight to the 3G upgrade, which is HSDPA (high density downlink packet access). Hence, Globe has become the first telecommunications firm in Asia-Pacific that has launched “Super 3G” or 3.5G capabilities to both corporate customers and the general public. Now, the Philippines is probably the only country with the lowest per capita gross domestic product that offers commercial 3G services. It is even ahead of mass markets like Indonesia, Thailand, China and India. It joins 3G countries like Japan, Singapore and Hong Kong.
Even Globe is now crowing that its subscribers trying out Globe Mobile Broadband with HSDPA have been making video calls both locally and abroad to their pick of the largest number of video IDD destinations outside the country. They have been downloading full music tracks to their phones from the largest music library with a diverse choice of music from OPM to international music hits. They have been watching live national and international TV programs for free through their 3G video streaming.
Also, Globe believes that as the nation’s wireless market matures and begins to seek not just the standard voice calls and SMS, it will poised to offer a robust array of enhanced value added services to cater to the diverse requirements of the Filipino mobile subscriber. Its internal studies showed that by spending for new technologies, Globe would continue to capture a bigger slice of the mobile market. This is a basic corporate strategy to which it adheres.
Moreover, Globe understands that only by leapfrogging to 3.5G could it adequately prepare itself for 4G. Experiments on 4G have been reported successful and that it would be a matter of time for its commercial introduction. This is the corporate positioning it has chosen to take. In a way, Globe is also guiding the mass market toward maturity. Instead of leaving everything to chance, to the flux and flow of the imponderables, Globe has chosen to influence the market.
Smart is taking a different route. Whether it will be proven correct and vindicated at the end, only time can tell.
Source- http://www.manilastandardtoday.com
Technorati : Globe Telecom, Mobile, Smart Communication
Ice Rocket : Globe Telecom, Mobile, Smart Communication
DTAC takeover ‘fully legal’, Telenor says
Telenor of Norway remained confident that its takeover last year of United Communication Industry (Ucom) and mobile-phone affiliate DTAC would be found to be fully in line with local laws, a Bangkok Post report said
“We are confident that the company’s shareholding structure will be found in compliance with Thai law,” Arve Johansen, head of Telenor’s Asia operations, told the Bangkok Post.
Thailand’s Commerce Ministry last week announced it was widening a probe into nominee shareholding structures used by a number of companies, including firms related to Ucom and DTAC, the report said.
The inquiry followed an ongoing investigation on Kularb Kaew and other companies set up by Singapore’s Temasek Holdings after its acquisition of telecom giant Shin earlier this year, the report added.
The Business Development Department reportedly concluded earlier that Kularb Kaew was acting as a nominee for Temasek to bypass the 49% foreign shareholding limit, according to the newspaper.
Johansen said Telenor was closely monitoring the situation in terms of possible regulation changes, the Bangkok Post further reported
Source- http://www.telecomseurope.net
Technorati : Mobile, Norway, Telenor
Ice Rocket : Mobile, Norway, Telenor
Thai mobile phone with Nazi symbols
I-Mobile, a wireless communications company in Thailand has launched two mobile phones with Nazi symbols and insignias printed on them.
The phones are designed with three penguins dressed in striped inmate uniforms and helmets saluting to a swastika.
I-Mobile is a daughter company of “Smart,” one of the largest telecommunications companies in Thailand.
The Israeli Embassy is planning on asking “Smart” to stop manufacturing the offensive phones and remove them from the shelves.
Source- http://www.israeltoday.co.il
Technorati : I-Mobile, Mobile, Thailand
Ice Rocket : I-Mobile, Mobile, Thailand
Ringtone reality check: India cellphone story long way to go
NEW DELHI, SEPTEMBER 18: India hopes to be a telecom major by 2020 but trends indicate it is still on the dark side of the wireless divide: rural teledensity is still at 2 per cent, roughly where it was at the time of Independence, as against 40 per cent teledensity in the urban areas.
Fresh data for 2005-06 filed by telecom regulators the world over shows that mobile phones are a much bigger story elsewhere in the world, even in the neighbourhood.
Mobile phones have now reached 8 per cent of India’s 1 billion-strong population but in March 2006 Pakistan achieved a mobile teledensity of 14 per cent, clocking an impressive 170 per cent growth rate the previous year. India’s mobile teledensity is growing at 60-65 per cent a year.
Strife-torn Sri Lanka has al so done well: it crossed the 17 per cent mobile teledensity mark in early 2006 and its mobile phones are growing at 50 per cent every year. Bangladesh too has gone places: It registered a 138 per cent mobile phone growth rate in 2005 which no one expects to falter.
Nripendra Mishra, chairman of the Telecom Regulatory Authority of India, says “I think changes in rural India’s teledensity will show up in the next six or eight months – the moment we announce that the Universal Service Obligation (USO) fund will be given out for cellular telephony. In addition, new technologies like WiFi and WiMax will go into rural areas sooner than the land lines or mobile phone networks, and will make a serious impact for the better.”
India’s neighbours, including or excluding China, are not just distributing phones faster. They are also competing harder for investments that global telecom firms are now ready to make. In addition, mobile teledensity improves GDP, which could make India’s telecom rivals far more successful in other ways too. Analysts are beginning to caution that the only reason why India’s teledensity looks so good is because of its sheer size.
“We are not doing as well as our neighbours in expanding connectivity, be it Bangladesh, Sri Lanka or Pakistan. Though we are adding many phones in urban areas, rural teledensity is still at 2 per cent, roughly where it was when we became independent. We just keep on giving new mobile phones to those in big cities who already have land lines,” says telecom analyst Mahesh Uppal. Despite the wide contrasts in per capita income and GDP, sometimes its hard to tell who’s catching up on whom between India and its neighbours.
Even Afghanistan, where the mobile networks were built afresh in 2002 after years of wars, mobile teledensity has touched 4 per cent. This is just below the global low-income average, but Afghanistan is starting from a near-zero mobility base.
India may be a minnow before telecom heavyweights China, Taiwan, US but some of its biggest rivals are right next door. India and other Asian countries like Mongolia, Malaysia, the Philippines and Thailand launched their mobile networks in roughly the same decades but India lags behind the rest. Mongolia achieved 20 per cent mobile teledensity in 2006, though it started in 2000 with only two per cent – that’s a 100 per cent growth rate. Malaysia had 80 per cent mobile penetration in early 2006 and its people sent nine million SMS’ in 2005 which makes them the second best performers on this front, only after Singapore.
There is a reason why India has become a big telecom success story but not the biggest. For one, the rural teledensity target in India has been pending since 1995 (at 10 per cent) although urban mobile teledensity has skyrocketed to 40 per cent. Besides, Indian companies are waiting in the wings for their big chance: A government subsidy for going rural.
Changes in rural India’s teledensity is key because as we speak, Hong Kong is achieving 125 per cent mobile teledensity, South Korea 90 per cent, Australia 95 per cent and Japan 76 per cent. Weren’t these countries our real competition when we started out in 1991, not Bhutan or Nepal (both with 2 per cent)?
Source- http://www.indianexpress.com
Telenor says it did not break Thai laws on DTAC stake
Norway’s Telenor said it did not break the law when it set up a joint venture to increase its control over Thailand’s DTAC mobile phone operator, a Dow Jones report said.
“We are confident that we’re abiding by local rules and regulations in Thailand ,” a Telenor spokesperson, quoted by the Dow Jones report, said.
The report said the comments followed news that Thailand’s ministry of commerce would conduct an investigation into 16 local and foreign companies, including Telenor, to determine whether or not foreign shareholders had used nominees to sidestep limits on foreign holdings in Thai companies.
Under Thai laws, foreigners could not hold more than 49% in local firms of certain industries such as telecom and aviation, the report said.
Telenor holds a 33% direct stake in DTAC, but also has a 25% stake in United Communication Industry, which in turn controls 42% of DTAC. It also owns 49% of Thai Telco Holdings, which has a 40% stake in United Communication, according to the report.
The investigation comes ahead of national elections following the family of Prime Minister Thaksin Shinawatra’s sale of a controlling stake in telecom holding company Shin to Temasek Holdings, the report said.
Temasek allegedly used proxy shareholdings to keep its holdings in Shin below the 49% limit, the Dow Jones report further said
Source- http://www.telecomseurope.net
Technorati : Mobile, Norway, Telenor, Thailand
Ice Rocket : Mobile, Norway, Telenor, Thailand
Bangladesh among Asia’s top 10 mobile markets
has emerged as one of
‘s top 10 mobile phone markets in terms of adding net subscribers, according to the chairman of GSM Asia Pacific, a regional forum of the Generalised System of Multiple Access (GSMA) mobile operators, reports BDNEWS.
GSM Asia Pacific Chairman Mehboob Chowdhury warned that though Bangladesh the 8th top mobile market in Asia, ahead of Thailand and Philippines, it would be impossible to retain that position unless the government immediately purged the industry of the ‘counterproductive’ policies and shook up the telecom regulators.
Besides, the country has added 8.945 million GSMA mobile users in a single year — from July 2005 to June 2006, according to the latest figure of GSMA association.
In an exclusive interview with the news agency, Chowdhury disclosed thatnow ranked eighth among the top 10 Asian mobile markets in terms of adding net subscribers during January to March, 2006.
Citing the data of Informal Telecoms and Media, a London-based research firm, he saidhas had 1.265 million new users during the first quarter of 2006. The figure is slightly lower than the net addition ofandcombined, and marginally lower than seventh-ranked’s first quarter intake.
, fifth on the list, has added more than two million mobile subscribers during this period, but its total clientele was smaller than whathad in the first quarter of 2006.
GSM Asia Pacific chairman credited the cellular mobile operators with this achievement while being critical of the government’s ‘pounding the industry with disruptive policies’.
“When the operators made new connections affordable and started slashing the call charges; the government came up with this disastrous tax last year. It was a bolt from the blue (for the operators) that slowed down the market for a while.”
The new 8.945 million GSMA mobile users that have putin the global map is the result of the operators’ continuous effort, Chowdhury pointed out.
The new customers belong to the middle-to-lower income bracket that have been perennially ‘harassed’ by the state-run Bangladesh Telegraph and Telephone Board (BTTB) in trying to get regular phone connections.
“The private sector has salvaged them and that’s why the subscribers identity module (SIM) tax is grossly an anti-people move, which the government should scrap ahead of the election.”
“The market could have added at least four million more customers, there could have been an euphoric outbreak of tariff war and the government could have earned more revenue from the boom (if the tax were not there)”, Chowdhury continued.
Liking the slapping of SIM tax to killing the golden goose, he said this testifies to ‘the government’s inability’ to understand the fundamentals of this business.
He refused to give the government much credit for slashing the tax from mobile phone handsets.
“The amount of tax the government has withdrawn from handset is the exact amount it has simultaneously imposed as SIM tax and the burden remains unchanged for new customers”, pointed out Chowdhury, who was GrameenPhone’s marketing director for five years and Banglalink’s Chief Commercial Officer (CCO) for nearly a year until resigning recently .
He said more than two billion people use GSM mobile phones worldwide, accounting for an 82.4 per cent penetration. Asia Pacific region alone boasts 757.13 million GSMA mobile users and the figure is fast growing.
“Every second 18 new GSM users are being added worldwide, which means more than 1,000 customers in every minute and over 1.5 million new GSMA mobile users per day.”
Chowdhury said the next billion GSMA customers are mostly coming from,,,,,,and other similar economies.
He recognised continuous investment as the key component for sustainable mobile phone market growth in.
Effective telecommunications regulatory regime is, however, the precondition to wooing new investments and boosting competition.
“The Bangladesh Telecommunications Regulatory Commission (BTRC) has become merely an extension of the taxation department and that is certainly not the case with,or”, he said.
“[And] That’s why the telecom markets of these South Asian countries have been consistently thriving.”
More than 85 per cent of the mobile phone users have no access to the largest fixed telephone operator BTTB, the state-owned monopoly that has little relevance in today’s mobile market, Chowdhury regretted.
“The mobile operators will not even bother to talk to the BTTB the moment the government ends its monopoly on the international voice gateway”, he predicted.
The BTTB’s denial to provide interconnection is a clear breach of the telecoms law and resents the regulator’s ‘unfair concession’ for BTTB on this issue, the former Banglalink CCO said.
The government is ‘draining’ public funds on ‘impractical projects’ like VoIP platforms, he complained.
“Besides, ignoring the country’s fundamental telecommunication needs, the government is going to waste hundreds of millions of dollars in highly debatable and grossly unproductive supplier’s credit telecoms schemes”, he added.
The government has to deploy reliable nationwide telecoms infrastructure and then ensure the private sector’s equitable access to that resource, Chowdhury suggested.
“This is what Pakistan, India and many other fast developing countries are doing and Bangladesh should waste no time to reinvent the wheel”, he remarked.
Source- http://www.financialexpress-bd.com
Technorati : BTRC, Bangladesh, GSM, Mobile
Ice Rocket : BTRC, Bangladesh, GSM, Mobile
