Overview of the Telecom Industry,

Its Potential and Contribution to the Nation

Raihan Shamsi
Chief Corporate Affairs Officer & Acting CFO
Grameenphone Ltd.
Mobile Operators in Bangladesh
Internet
Subscribers
6 Million
Internet
Penetration
4%
Total Telecom Subscriber - 52.163 Million
(Mobile + PSTN)

Telecom Penetration - 35%
PSTN Subscriber - 1.603 Million*

PSTN Penetration - 1%
Mobile Subscriber - 50.56 Million*

Mobile Penetration - 34%
Telecom Market Scenario
Source: BTRC
*As of Nov09
Mobile industry in a unique position..
Nationwide infrastructure
Already 34% population connected
Created 675,000 employment
More than 240,000 Sales Point
Contribution to the National Economy
The largest private sector infrastructure provider with
more than BDT 30,000 crore investment
More than 6.0% contribution to GDP in 2007
(A Deloitte study)

In a developing country, an increase of 10
percentage points in mobile penetration will lift that
country's annual economic growth rate by 1.2
percentage points (A Deloitte study)

So far around BDT 20,000 crore contribution to
Government
More than 90% geographic and 98% population
coverage
[1997 2009] Revolution continues
0
10
20
30
40
50
60
2002 2003 2004 2005 2006 2007 2008 2009 (Q3)
M
i
l
l
i
o
n
s
Mobile Subscriber
3.9 M
Growth 124%
21.48M
Growth 105%
1.74 M
Growth 58%

1.1 M
10.48 M
Growth 169%
34.37 M
Growth 60%
44.64 M
Growth 30%
50 M
Growth 12%
Widest network coverage
8% contribution to national revenue

Partner to Development
BDT 30, 000 Crore investment
8% contribution to National Revenue
Industry Challenges.
Severe energy crisis
Requirement 5,000 MW
Production 3,580 MW
About 80 million people in the
country do not have access to
electricity
30% of total cost of power is
used for extra battery, fuels
Thousand of people died in
recent cyclones
15,000 died during Sidr07
Caused millions of dollars
Financial & infrastructural
damages

Energy Crisis & Natural Disaster
Economic challenges
Global recession
hitting the local
economy
GDP growth lowered to 5.6%
Decline in exports
Inflation is likely to stay at 6.5%
in 2009-10
Balance between
National Income
& Expenditure
Budget deficit has become a trait
70.34%
17.87%
7.36%
4.44%
Next Addressable Market = 58 Million**
*World Bank definition of BoP: Annual income less than PPP US$ 3000.
Affordability & literacy at BOP
70% of population at BOP
45% population under
poverty level
55% population are illiterate
Lowest Tariff to match
affordability
Infrastructure Stage
Subscriber Acquisition
Stage
Operation Stage
Profit Stage
Customs Duty on Telco equipment apprx. 3%-25%
10%-17.5% duty on NW, Service Equipment &
Computer Hardware
Duty on SIM 64%++
SIM tax BDT 800 per SIM
12% of value per mobile hand set
Duty on Scratch card 64%++
Revenue sharing 5.5%
VAT 15%
Annual License fee BDT 50Mn
Spectrum charges based on investment
Tax and VAT deducted and deposited at source.
Local Government taxes
Corporate tax 45%
Heavy taxes on ALL stages of operation
Highest tax in SAARC for mobile usage
Mobile Connection- growth in Q1 2009
12.93
6.94
2.31
3.7
0
2
4
6
8
10
12
14
India Sri Lanka Pakistan Bangladesh
G
r
o
w
t
h

(
i
n

%
)
Highest tax burden in Bangladesh
In FY 2009-10 budget the burden
of tax on people has increased
further
India with lowest tax; has highest
Growth
Bangladesh with highest tax; naturally
one of the lowest Growth
Recently, Pakistan reduced SIM tax to
PKR 250 from PKR 500 and handset tax
to PKR 250 from PKR 750 to boost
access to communication
Source: Wireless intelligence Q1 2009
Our effort continues .
We continue to be partner in development
Education
Health
services
Business
Public
information
Voice
68 % is still
unconnected
Internet
96% need to get
connected to web
e-governance
M-banking
Agriculture
CIC: A Role Model
Approx. 500 center for information access to 3 crore
rural mass
Services available:
Access to Internet,
Voice communications and
Video conferencing to the rural people
1. Education on internet:
Training on computers and internet for students
2. Health:
Contents on basic health available for mass
3. Agriculture:
Developed Bangla content
Under the e-krishok campaign farmers can find out
different solutions right away.
They can also send e-mail for expert opinions..
4. All sorts of e-govt. citizens' services are being delivered from
the centers through the CICs.

Internet service for villagers
Wireless internet: helps to connect remote rural areas

In absence of 3G, BD operators are
bridging demand gap with EDGE
CICs are allowing web-surfing at an
acceptable speed
GP also marketed its first pre-
configured handset to allow hassle-free
connectivity to subscribers
Health Service: Supporting the Basic
Doctor patient ratio 1: 3169(08)

Doctor is now just one call away

From any part of Bangladesh

789 serves 3,000 calls/day
Healthline Service 789

Source: http://www.thedailystar.net/archive.php?date=2008-04-20
Overcome information gap between
Farmer & agri-expert
Suggestions and answers to any
queries for:
Agriculture, vegetable & fruit farming
Poultry, livestock, fisheries etc.
Agriculture Service: Supporting the Basic
Call center for educational info-
University, college & school admission
Graduate Admission Tests
Standardized Tests (IELTS, SAT,TOEFL, etc)
General Foreign Admission Inquiries
BBC janala- English learning through mobile
Education Service: Supporting the Backbone
Bill Pay Service; M-business..
CellBazaar
o Market Information Access Services
through GSM mobiles
BillPay
Utility bill payments by mobile phone in
selected areas
Message


Thank You