Bangladesh Telecommunications Report Q2 2010
Business Monitor International
IT & Telecommunication
Report SummaryAt the time of writing, a full set of Q409 results had not been published by all key mobile network operators in Bangladesh. BMI estimates that 9.830mn new customers were added in total during 2009, down only slightly from the 10.017mn net additions reported in 2008. The lower growth rate was the result of the government’s SIM taxation, but subsidisation of the SIM tax together with lower prices and network expansion are expected to see the mobile market grow at a faster pace in 2010 than in 2009. Both Grameenphone and Banglalink, the respective No1 and No2 operators, are raising funds to support their network expansion plans. Grameenphone has issued an initial public offering (IPO), said to have been three times over-subscribed, while Banglalink plans to acquire a US$60mn bond issue. The operators, together with third-ranked Axiata, make up around 90% of the market and are looking to outdo one another, despite penetration still only at 37%.
One reason for this is the threat of new competition. Vietnam’s Ministry of Defence-owned operator Viettel and India’s Bharti are said to be interested in acquiring the operations of the respective two smaller service providers, Teletalk and Warid Telecom. Teletalk’s lack of progress in developing its business stemmed from the government’s reluctance to invest the funds necessary to grow the company aggressively to the point whereby it could provide a credible threat to players such as Grameenphone and Banglalink. Apparently, the government is now keen to divest the business while its assets still remain attractive to new or existing players. To sweeten the deal, it seems likely that Teletalk will be awarded a 3G licence (ahead of all other players, significantly), as well as a US$211mn loan at 2% interest from China to help expand its network in key areas of the country. Bharti, on the other hand, could be looking to acquire Warid Telecom for the purposes of acquiring a 3G licence in the country, while it would also boost the Indian operator’s plans to become a regional powerhouse.
It is not only the mobile sector that has attracted foreign interest. Japanese telecoms operator KDDI has revealed its plan to acquire a 50% stake in Bangladesh-based internet service provider (ISP) BRAC BD Mail Networks (bracNET) through a private placement of shares. The acquisition, expected to be complete by January 2010, will cost it a total of JPY800mn (US$8.85mn). bracNET was initially one of three operators to be awarded a WiMAX licence that was subsequently returned to the regulator after bracNET declined to pay its licence fee. The licence was then awarded to Mango Teleservices. WiMAX is still very much in the initial phase of development and has yet to make much of an impact in the broadband sector. Augere Wireless Broadband Bangladesh, which launched its WiMAX network in October 2009, was joined in November by BanglaLion Communications, which announced the launch of a pilot service of its new wireless broadband network, based on WiMAX technology. Based in Dhaka, BanglaLion plans to rapidly roll out its infrastructure to key population and business centres across Bangladesh. To do so, it will spend US$250mn in deploying 6,000 WiMAX base stations over a five-year period. Approximately 900 such base stations are being used within the pilot service.
Executive Summary
SWOT Analysis
Bangladesh Wireline Business Environment SWOT
Bangladesh Mobile Business Environment SWOT
Bangladesh Political SWOT
Bangladesh Economic SWOT
Bangladesh Business Environment SWOT
Business Environment
Asia
Table: Asia Telecoms Business Environment Rankings
Bangladesh
Industry Forecasts
Mobile
Table: Telecoms Sector - Mobile - Historical Data & Forecasts (2007-2014)
ARPU
Table: Bangladesh Mobile ARPU - Historical Data and Forecasts (US$) 2007-2014
Fixed Line
Table: Telecoms Sector - Fixed Line - Historical Data & Forecasts (2007-2014)
Internet
Table: Telecoms Sector - Internet & Broadband - Historical Data & Forecasts (2007-2014)
Market Data Analysis
Mobile Market
Table: Bangladesh Wireless Market, Q409
Table: Bangladesh Wireless Market Net Additions, Q409
Subscriber Mix & ARPU
3G
Mobile Contract Wins
Table: Mobile Contract Wins, 2008-2009
Mobile Content
Regional Outlook
Table: Asia Mobile VAS Market By Service, 2009 (US$bn)
Country Outlook
Mobile Operator Data
Table: Bangladesh Mobile Market Overview
Table: Grameenphone
Table: Banglalink
Table: Citycell
Table: Warid
Fixed Line
Table: Bangladesh Fixed-Line Market, Q409
Table: Bangladesh Fixed-Line Net Additions, 2009
Broadband
Regulatory Environment
Industry Developments
Competitive Landscape
Competitor Analysis
Table: Key Players - Bangladesh Telecoms Sector
Company Monitor
Table: Nokia Q309 Net Sales And Operating Profit By Division (EURmn)
Table: Nokia Handset Device Sales By Geography (mn units)
Table: Nokia Major Developments Across Asia (2009)
Table: Nokia Siemens Networks Sales By Region (EURmn)
Selected Profiles - Operators
Grameenphone
Axiata Bangladesh (AxB)
Banglalink
CityCell
Bangladesh Telecommunications Company (BTCL)
Appendix
Key Players
Fixed Line
Table: Regional Fixed-Line Penetration Overview
Broadband
Table: Regional Broadband Penetration Overview
Mobile
Table: Regional Mobile Penetration Overview
Country Snapshot: Bangladesh Demographic Data
Section 1: Population
Table: Demographic Indicators, 2005-2030
Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education and Healthcare
Table: Education, 2001-2003
Table: Vital Statistics, 2005-2030
Section 3: Labour Market and Spending Power
Table: Employment Indicators, 2001-2006
Table: Consumer Expenditure, 2000-2010 (US$)
Table: Average Annual Manufacturing Wages
Glossary Of Terms
Table: Glossary Of Terms
BMI Methodology
How We Generate Our Industry Forecasts
Table: Key Indicators For Telecommunications Industry Forecasts
Telecoms Business Environment Ratings
Table: Weighting Of Indicators
Table: Ratings Indicators
Sources
