Current Market Scenario The telecom market is experiencing a transition period, at present. Singtel has already come up with CityCell to invest in the mobile telecom market of Bangladesh. Another Egyptian company named as Orascom has bought all the share of BanglaLink and planed to invest a huge amount to capture a market share of 300,000 by the mid of 2005. Flat duty has been introduced for network equipment hardware. GSM product of Bangladesh is now considered to be most economical in the region even though the startup cost has increased to BDT 5000 for mobile phones. The parties involved in mobile and fixed telephony business have taken appropriate measures to improve their products and services accordingly. BTTB has lowered its start up cost in small towns. They have also reduced their NWD and ISD call rates. New areas of North Bengal have come under coverage through other mobile operators. CityCell and AkTel have launched pre-paid service with PSTN access. AkTel and BanglaLink have reduced their monthly access fee. Moreover, Citycell has introduced Super Off-peak rates for efficient use of technical facilities. For reducing the complexity of talk time charge, Banglalink has introduced new charge for all time which is less than 2.50 Tk/minute. Offering free talk time and free SMS is now becoming the hottest promotional tool for being competitive in the market. Besides improved products, services, and better deals, the competitors are also competing with distinct communication strategies. They are also trying to expand their distribution network. CityCell has signed two big distributors, namely Singer and Sony. BANGLADESH TELECOM OUTLOOK 2005
Subscriber forecast for 2005
Factors
Teletalk AkTel 0.25 Million by 3 million by 2005 first 6 months of launch and 1 million by 2006
Investment plans
1st phase $78.5 m (Tk 498.54 cr)
New Operators
Accumulated investment over $300 million by 2006.
Citycell
2.7 million by 2005
$ 150 million to be invested by 2005. And a total of $250 million by 2006the Dubai based mobile service provider “Warid�, is expected to enter Bangladeshi market in 2005. Bay Phone, a private PSTN operator, has announced that it will begin operation from February. The rate of phone connection will be Tk 9000 and prospective subscribers will get phone connections within 48 hours. Other private PSTN operators, who have received license are also expected to launch operations, although no definite dates have yet been announced. Many of these will use WLL technology as well.
Social Commitment of GrameenPhone
Additional $250 Million (by 2005)
BanglaLink
2 million by 2005 Total of 4 million by 2006