State of Telecom in Bangladesh and the Role of TeleTalk
Following the global trend, Bangladesh also opened the Telecom industry to market force. At present there are six cellular or mobile operators. Apparently failing to figure out way to reach to profitable state, AirTel decided to merge with Robi, mostly owned by Axiata group. Among these six operators, GrameenPhone (GP), local outfit of Telenor, is the market leader. GP is in position to set the price to make healthy profit, while forcing all other operators to lose money. Although Robi has been reporting profit lately, but's its profit making ability does not appear to be strong. Moreover, none of these operators have the ability to set the price above GP's rate and keep generating revenue.
In the given scenario, it appears that CityCell, the lone CDMA operator, will likely exit the market to stop further accumulation of loss. Being the 2nd largest operator, the Banglalink has not reached to profit yet. On the other hand Teletalk has been drawing fund from public exchequer to remain afloat. The state of telecom of Bangladesh indicates that market has very weak competition force. Having the market power to set the price above any other operator to make profit while forcing other operators to take lower price to keep incurring loss, the dominant operator appears to have the key to decide the fate of state of Telecom market of Bangladesh.
Since inception, Bangladesh Government has been pouring money to keep TeleTalk afloat in the market. Here are few obvious questions to justify such fund drainage:
1. Is it playing any role to reduce GP's market power to set the price to make profit while forcing others to keep incurring loss?
2. Is its cost of production lower than that of GP and other operators?
3. Does it deliver any service to any group of customers what other operators do not deliver?
4. Does it influence the competition scenario to force private operators to increase efficiency, reduce price, introduce new products and expand coverage?
5. Does it have any possibility to reach to profit?
6. Are people lined up for TeleTalk's services, because they are unsatisfied with private operators?
7. Does it provide any tool in creating possibilities of profitable competition for smaller operators to reduce the force of monopoly?
If answers of these questions are NO, why should the state keep giving billions of taka life support to this operator?
Zonal In Charge of Khulna Zone. Deputy Manager at Teletalk Bangladesh Limited
7 年Well Sir, All your questions are legitimate but my questions to you! Can you show me any country in the world where a state owned telecom operator don’t exist? Your concern that public money being pouring to TBL without any good reason! Do you have any idea how much is the cost to establish 1 single BTS? Thanks.
Share your culture
8 年Funds are necessary. But value is the condition of succes. Is it possible to enhance value of the local economy ? If yes so funds goes to value and economy grows.