Developing Telecoms | Mobile penetration on the rise in Bangladesh as internet stalls

23 May 2012

Regional Trends

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Mobile penetration on the rise in Bangladesh as internet stalls

Monday, 21 November 2011 11:27 | James Barton

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Although fixed-line is declining, Bangladesh’s burgeoning mobile market has witnessed healthy growth, according to Research & Markets.

Bangladesh's mobile market passed 80 million subscribers by the middle of 2011 as penetration neared 50%. This had been preceded by a significant five-year period in which the country saw mobile subscriber numbers grew almost 20 times.

Of the six mobile operators, GrameenPhone was far and away the leader, claiming close to 35 million subscribers - 44% of the total mobile subscriber base - at mid-2011, despite the best commercial efforts of its competitors.

Airtel Bangladesh became the fastest growing mobile operator in the country, its subscriber base lifting 51% in the 12 months to August 2011; in the previous year Orascom had been the fastest mover.

Internet penetration remains low (0.4% user penetration coming into 2011) and Internet subscription rates are considerably lower. Although broadband internet remains almost non-existent in Bangladesh, following the granting of a number of WiMAX licences, there were early signs that the market was about to change as the new WiMAX services were rolled out and started to attract customers.

The fixed-line market experienced a major setback in the first half of 2010 when the regulator shut down five operators; the action had been taken as part of a major move against illegal VoIP services.

The number of fixed services decreased dramatically almost halving in a short period of time. The problem remained unresolved for 16 months; by August 2011 it appeared that a solution was at hand. But the market was going to take a long time to recover.

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