GrameenPhone surges ahead
Bangladesh's leading mobile phone company
signed up one million new subscribers in a
record 40 days as the market continues to boom
amid fierce competition. "We have now five
million users. The latest million was added in
40 days," Syed Yamin Bakht, general manager of
GrameenPhone said.
Launched in March 1997, GrameenPhone took more
than six years to sign up its first one
million subscribers but since late 2003 the
company has witnessed rapid growth.
GrameenPhone, a subsidiary of Norwegian
telecom company Telenor, now has 62 percent of
the country's eight-million-plus mobile phone
users. Network coverage has been extended to
nearly 80 percent. The company said that so
far this year it had invested around 300
million dollars to boost its network coverage
and boost market share.
BTTB falls behind
Bangladesh Telegraph and Telephone Board
failed to meet its target by half earning only
Tk 328 crore in the first four months of the
current fiscal. The board was set a target to
earn about Tk 1,960 crore or about Tk 163
crore per month.
The state-owned telecom operator earned about
Tk 1,410 crore in operating revenue against a
target of Tk 1,650 crore in fiscal 2004-05
which was the lowest in the last four years.
The board earned about Tk 1,535 crore against
a target of Tk 1,700 crore in fiscal 2004, Tk
1,500 crore against Tk 1,650 crore in 2003 and
Tk 1,583 crore against Tk 1,600 crore in 2002.
The board officials said although the board
set a large target in the current fiscal it
was `impossible' to meet the target as the
number of international calls, contributing
about 40 per cent revenues, continue to fall
amid widespread use of illegal internet
telephony also called VoIP (Voice over
Internet Protocol).
`The [board] would not earn more than Tk 1,400
crore in the current fiscal unless the
government immediately acts to stop illegal
VoIP operation,' said a high official of the
board.`The board is losing crores of taka
every month to illegal operators handling
millions of minutes of incoming and outgoing
international calls,' said the official.
According to a study of the board, the
government loses about Tk 400 crore every year
due to internet telephony, which is illegal.
Vehicles as telecom equipment!
Bangladesh Telegraph and Telephone Board
is to buy about 30 automobiles and 50
motorcycles from Siemens and Huawei
Technologies, the two contractors of its
mobile phone project in the name of purchasing
telecom equipment.
The posts and telecommunication ministry has
sent a revised project proposal of the
telephone board to the planning commission for
approval to purchase the vehicles at a cost of
Tk 43 crore, which officials termed `wastage'
and `misuse' of project money, as in the
original project proposal, there was a
provision to buy 29 vehicles for the project
through local procurement.
The plan to buy vehicles in the name of
telecom equipment from the contractors is
merely to do them undue favour.
The board, in June 2004, signed two separate
deals with Siemens SPA of Germany and Huawei
Technologies of China for installing 2.5 lakh
mobile connections across the country in the
first phase after getting approval form the
cabinet committee on purchase.
Sixth cell phone operator soon
Only two international mobile phone
companies, Warid Telecom International of Abu
Dhabi Group and Umniah Telecom of Jordan, have
submitted offers to become the country's sixth
cell phone operator.
Bangladesh Telecommunication Regulatory
Commission (BTRC) invited tenders from local
and international cell phone companies after
the Abu Dhabi Group, known as Dhabi Group,
showed interest in investing in the telecom
sector of the country.
BTRC sources said an evaluation committee to
be formed shortly would look into the offers
made by the two companies to select one for
issuing license to operate GSM (globalised
system for mobile communication) service in
the country. The committee would look into the
financial and technical aspects of the offers,
besides evaluating the general conditions.
The licence would be awarded for an initial
period of fifteen years, with permission to
cover entire Bangladesh. At present, four
private and one state-run company are
operating cell phone services in the country,
four of them using GSM technology, while the
remaining one, CDMA (Code division multiple
access) technology.
FM radio channels get nod
The government has given permission to set up
three new frequency modulation (FM) band radio
channels, raising the number of such private
channels to four. A total of 10 companies
applied for the permission of operating FM
radio channels, three of them got the licence.
Only one channel, Radio Metrowave, is now on
air for the Dhaka audience.
Radio Metrowave does not broadcast news due to
a government restriction, but this condition
will not be applicable for the new companies.
The new channels are planning to cater to a
different target audience by broadcasting
diverse programmes to add a new dimension to
the private radio channels. These three radio
channels are expected to start broadcasting
programmes in FM band within one year of
receiving permission, Bangladesh
Telecommunication Regulatory Commission (BTRC)
and the Ministry of Information sources said.
Matiur Rahman Choudhury, managing director of
Ayna Broadcasting Corporation (ABC), one of
the three companies, said they would start
operation next year. He said high priority
would be given to hourly news service, talk
show, sports news and most importantly
broadcasting of traffic situation in the city.
Another top official of the ABC said they are
also planning to introduce programmes based on
agriculture-related information which has a
huge demand throughout the country.
The owner of another private radio channel
said as soon as the channel starts operation
they will design programmes considering the
demands of the listeners. He said FM radio
transmission has been quite successful in our
neighbouring countries, especially India. Such
private channels not only cater to the
listeners' entertainment needs, but also
address the social and political issues of
public interest.
Although radio is increasingly getting
unpopular with the advent of other
entertainment media, especially satellite TV
channels, the radio listeners are enthusiastic
about the new FM channels but they expect
quality programmes on diverse subjects.
Community radio yet to get nod
The operation of Community Radio, the
radio for disseminating news and information
of individual community, is yet to be started
in the country due to the indifference of the
government.
Community Radio, which has been playing an
important role in transmitting local
information, e-learning, entertainment,
disasters management and mass awareness on
different issues in most of the countries of
the world, could be turned into a major means
of transmitting information in Bangladesh
during natural disasters in the coastal areas.
Mass-line Media Centre (MMC) took an
initiative to establish Community Radio in the
disaster-prone coastal areas in 1997 but could
not succeed as the government did not approve
its proposal.
RTV to be launched on Dec 26
A new private television channel, RTV
(Rosa Ali Television), will be launched on
December 26. President Prof Iajuddin Ahmed is
expected to inaugurate the telecast of the
channel. Chairman and Managing Director (MD)
Mosaddek Ali MP announced this at a press
conference last month .He said that the
programme of the new Television channel would
be formulated to fulfil the demand of all
classes of viewers.
Md. Sabur Khan
Md. Sabur Khan, Chairman, Daffodil Group:
“Bangladesh has the capacity and credibility
to acquire ‘million dollars’ order every year
if the obstacles are removed”
“Although Bangladesh is on track to leap into
the worldwide trillion dollars software and
data entry services market for almost a
decade, it could not make successful entry due
to negligence, lack of vision, proper
guideline and patronisation from the
government,” observed Md. Sabur Khan,
chairman, Daffodil Group.
Md. Sabur Khan, pioneer in the backward
linkages in the IT and software industry in
Bangladesh expressed his disappointment that
this failure is not due to lack of resources
and talent but lack of timely initiative and
poor management.
Chairman of Daffodil Group, one of the leading
commercial houses dedicated to IT and software
related products in the country believes
Bangladesh still can be benefited and grab a
good-enough share of the market if necessary
conditions are fulfilled.
“We have world class talent in programming,
software and other relevant sectors who have
proved their quality, capability and skill on
several occasions. But we do not have
managerial expertise to utilise their merit,”
said Khan.
He pointed government’s go-slow policy and
lack of vision as the main drawback to get
expected business over the past years.
“Due to non-visionary attitude of the
government we are not yet connected with the
submarine cable that has kept the industry in
a standstill situation,” said Khan.
Md. Sabur Khan, chairman of Daffodil software
Ltd. said that they get huge offers to
establish call centres but cannot receive
these as the government hasn’t yet legalised
Voice-Over-Internet Protocol (VOIP) which is
depriving the country to earn crores in
foreign exchange.
He said that Bangladesh gets most of the
orders for graphics designing, animation, and
establishing call centres.
He, however, is very optimistic about the
future of the industry.
“Bangladesh has the capacity and credibility
to acquire ‘million dollars’ order every year
if the obstacles are removed,” said Khan.
According to him all we need to get expected
result from this sector are- getting connected
with the submarine cable, legalization of VOIP,
skilled managerial expertise and patronisation
by the government.
“To improve in the managerial level we might
start working with the worldwide reputed
companies. Involving Non residential
Bangladeshis (NRB) in the industry would also
improve our managerial level,” suggested Khan.
Although many local companies have already
started appointing NRB in their enterprises
but it is tough to find any overseas company
willing to work with local companies because
of aforesaid problems.
He admitted that public sector initiative is
the main driving force to take the industry
ahead but local investors are not interested
as there is no authentic data on IT working
environment, marketing prospects, technical
and professional expertise, standardised scale
with respect to international market,
documentation and customization of a software
system etc.
“An in-depth survey about existing marketing
prospects is needed to formulate a
comprehensive IT policy for the country and
attract local and foreign investors. To take
it to the optimum level this sector requires
government policies, direct patronisation and
development of telecom infrastructure,” said
Md. Sabur Khan, chairman of Daffodil
International University.
Unfortunately the Export Promotion Bureau (EPB)
lacks data of actual software exports
Bangladesh has made.
Export from this sector at the moment is not
that small and it has huge possibility to
improve in the export scale if policy is made
according to the requirements.
“Government should come forward to patronise
this sector to increase the export level of
software,” said Khan.
The local market here is near about Tk. 200
crore he assessed. He also pointed that beside
managerial skill we also lack coordinated
policy and planning.
“Copyright protection for software should be
implemented and only then foreign firms would
be interested for out-sourcing from
Bangladesh,” said Khan.
The government should come forward with
positive approach and should be cordial to
solve the problem in this sector and it would
establish as one of the
Our neighbor country India has emerged as one
of the most successful countries in the
software industry. Our merit and talent is at
the same level that India has.
“If we can fulfill all the requirements this
sector will emerge as one the leading export
oriented industry in the country and can offer
an economic surprise within a very short
time,”
Ayon Islam
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