Mobile penetration goes slow

Mobile operators added only 0.28 million customers to their networks in May, recording a 26 percent lower growth rate than in April 2009.
According to data from the Bangladesh Telecommunication Regulatory Commission (BTRC), the total number of mobile phone customers reached 46.41 million in May 2009. The industry added 0.38 million customers in April 2009. 
The year-on-year customer acquisition growth rate was 10.39 percent during May 2008-May 2009, while it was 57.68 percent during May 2007-May 2008.
The total number of mobile phone subscribers was 26.66 million in May 2007, which increased to 42.04 million in May 2008.
The BTRC data shows Grameenphone increased their customers to 21.05 million till May from 21.02 million in April, Banglalink reached 10.95 million from 10.9 million, AKTEL reached 8.84 million from 8.83 million, Citycell reached 1.94 million from 1.92 million, Warid reached 2.53 million from 2.41 million and TeleTalk reached 1.1 million from 1.05 million.
Operators used to blame slow growth on the government imposed Tk 800 SIM (subscriber identity module) tax on each connection. To bag more customers, operators used to pay the tax on behalf of their customers. However in the last few months, operators became reluctant to pay the duty.
Following the operators’ decision to discontinue bearing the SIM tax, the six mobile operators added only 0.94 million customers to their networks in the second half of 2008, recording a less than 86 percent growth in the same period a year ago. In the second half of 2007, they added 6.65 million customers.
Bangladesh has the potential to acquire more than 55 percent penetration in the next five years. A high tax on the telecom industry is marring development, operators said.
The mobile industry anticipates that the subscriber base will reach 95 million from the existing 46 million by 2013, if the SIM tax is waived.
Citing recent developments in Pakistan, the operators said the country reduced SIM tax to Pakistani Rupees (PKR) 250 from PKR 500 and handset taxes to PKR 250 from PKR 700.
The tax structure for the telecom industry in India is the lowest among the South Asian countries, they said.
“We should not be opposite (to them),” Oddvar Hesjedal, chief executive officer of Grameenphone, said. The Tk 800 SIM tax is a barrier to reaching rural areas, he said recently at a discussion on taxation on the telecom industry in Dhaka.

Courtesy of The Daily Star