Mobile subscription in Bangladesh dropped significantly during 2008 to the lowest level since 2006 primarily due to higher fee of new connection and high SIM tax.
According to the Bangladesh Telecommunication and Regulatory Commission (BTRC), six mobile phone firms in Bangladesh recorded subscriber growth rate of strong 30% in 2008, taking the new subscriber count 10.27 Million. This number, however, is lowest since 2006, as reported by Reuters.
Although the subscriber growth rate was at 30% in 2008, it had been at 103% and 62% in 2006 and 2007 respectively. Bangladesh had around 44.64 Million mobile phone users at the end of 2008 against 34.37 Million in 2007. Moreover, mobile operators added 13.17 Million and 10.76 Million subscribers in 2007 and 2006 respectively.
Grameenphone, the largest mobile phone operator in Bangladesh, added the highest number of new subscribers to its base at 27% to reach 20.99 Million, escalating to the top position. 4.51 Million people subscribed to the Company’s mobile services in 2008. Teletalk, a state-run mobile company, acquired the lowest position with addition of 980,000 subscribers.
Higher fee of new connection is considered the main factor for slow growth in mobile subscribers. Mobile operators didn’t show much interest in offering attractive packages that encourage people for taking new connections because of higher SIM tax, resulting in expensive subscription and lower turnout of people interested to buy new connections.
Moreover, economic slowdown is also responsible for lesser number of subscribers in 2008 because financial crisis restrained people from making mobile phone purchases.
The number of mobile subscribers fell drastically in 2008 compared to previous two years, but it doesn’t mean the market is saturated. The market still represents huge potential for mobile operators, provided the SIM tax should be reduced. The growth in mobile industry during 2009 will also depend on the development of the Bangladeshi economy amidst ongoing global economic crisis.
According to a Research Analyst at RNCOS, “Although the handset prices are continuously dropping, the number of mobile subscribers declined radically during 2008. Under this scenario, operators have to offer more attractive and affordable packages for potential customers so that mobile subscription continues to increase.”
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