Mobile internet uptake still slow: GSMA

Even though mobile operators have invested heavily to bring mobile services to Bangladesh, mobile internet penetration is still low.

It was  33 per cent in Q2 2017, below the average of South Asia at 38 per cent.

According to the GSMA Mobile Connectivity Index, the key barriers to mobile internet  in Bangladesh are network quality, spectrum availability at affordable prices, taxation, affordability of services, basic skills and local relevance.

From a consumer’s perspective, apart from some of the barriers mentioned above, usability and skills are also important obstacles.

According to the GSMA Intelligence Consumer Survey, the affordability barrier can often be attributed to a limited understanding of the benefits of the internet and a misperception of smartphone costs and data charges.

In addition, it is often thought that since online content is mainly in English, the internet is only for the educated.

“Mobile connectivity reduces the cost of accessing information. It can expand markets, thereby creating the chance for buyers and sellers to discover each other and conduct transactions. This helps drive growth, which is more inclusive,” Emanuela Lecchi, acting head of the Asia Pacific of GSMA, told The Independent.

She said Grameenphone, Robi, Banglalink and Teletalk, Qubee, Banglalion Communications and Ollo also operate in the market as 4G internet service providers.

As of June 2017, Grameenphone dominated the market with a 45 per cent share of all connections, followed by Robi (29 per cent), Banglalink (23 per cent) and Teletalk (2 per cent). This has been confirmed by the GSMA report titled "Bangladesh: Driving mobile-enabled digital transformation".

Mobile operators have connected a steadily increasing number of people over the past few years. In Q2 2017, 54 per cent of the population subscribed to mobile services, up from 32 per cent in 2010.

However, there is still room for growth, with more than 70 million people still not subscribers of mobile services.

Bangladesh is mainly a prepaid and 2G market; it has one of the lowest subscriber Average revenue per user (ARPU) levels in the world—at only USD 3.13 per month. Mobile operators have

been investing heavily in the region, with their 3G coverage now at 90 per cent of the population.

At present, 3G connections account for 25 per cent of the connections and are expected to represent more than half of the connections by 2020.

Smartphone adoption is around 30 per cent and is expected to grow to 55 per cent by 2020. The increase in the degree of smartphone adoption has been driven by the growth in the market shares of local brands Symphony and Walton. These brands offer affordable devices with pre-loaded apps for low-income people and have on-the-ground presence.

 Emanuela Lecchi said that mobile operators in Bangladesh had paid nearly USD 1 billion in recurring tax payments in 2016—this represents around 45 per cent of the total sector revenue. Many of the taxes paid by mobile operators are specific to the sector or are imposed at higher rates for the mobile industry than others.

 According to GSMA intelligence, if taxes or regulatory fees are introduced or increased after an auction or during a licence period, these will negatively impact the operator business case, affect the rollout of network infrastructure and have adverse effects on consumers.

Mobile internet uptake still slow: GSMA

Even though mobile operators have invested heavily to bring mobile services to Bangladesh, mobile internet penetration is still low. It was 33 per cent in Q2 2017, below the average of South Asia at 38 per cent. According to the GSMA Mobile Connectivity Index, the key barriers to mobile internet in Bangladesh are network quality, spectrum availability at affordable prices, taxation, affordability of services, basic skills and local relevance. From a consumers perspective, apart from some of the barriers mentioned above, usability and skills are also important obstacles. According to the GSMA Intelligence Consumer Survey, the affordability barrier can often be attributed to a limited understanding of the benefits of the internet and a misperception of smartphone costs and data charges. In addition, it is often thought that since online content is mainly in English, the internet is only for the educated. Mobile connectivity reduces the cost of accessing information. It can expand markets, thereby creating the chance for buyers and sellers to discover each other and conduct transactions. This helps drive growth, which is more inclusive, Emanuela Lecchi, acting head of the Asia Pacific of GSMA, told The Independent. She said Grameenphone, Robi, Banglalink and Teletalk, Qubee, Banglalion Communications and Ollo also operate in the market as 4G internet service providers. As of June 2017, Grameenphone dominated the market with a 45 per cent share of all connections, followed by Robi (29 per cent), Banglalink (23 per cent) and Teletalk (2 per cent). This has been confirmed by the GSMA report titled Bangladesh: Driving mobile-enabled digital transformation. Mobile operators have connected a steadily increasing number of people over the past few years. In Q2 2017, 54 per cent of the population subscribed to mobile services, up from 32 per cent in 2010. However, there is still room for growth, with more than 70 million people still not subscribers of mobile services. Bangladesh is mainly a prepaid and 2G market; it has one of the lowest subscriber Average revenue per user (ARPU) levels in the worldat only USD 3.13 per month. Mobile operators have been investing heavily in the region, with their 3G coverage now at 90 per cent of the population. At present, 3G connections account for 25 per cent of the connections and are expected to represent more than half of the connections by 2020. Smartphone adoption is around 30 per cent and is expected to grow to 55 per cent by 2020. The increase in the degree of smartphone adoption has been driven by the growth in the market shares of local brands Symphony and Walton. These brands offer affordable devices with pre-loaded apps for low-income people and have on-the-ground presence. Emanuela Lecchi said that mobile operators in Bangladesh had paid nearly USD 1 billion in recurring tax payments in 2016this represents around 45 per cent of the total sector revenue. Many of the taxes paid by mobile operators are specific to the sector or are imposed at higher rates for the mobile industry than others. According to GSMA intelligence, if taxes or regulatory fees are introduced or increased after an auction or during a licence period, these will negatively impact the operator business case, affect the rollout of network infrastructure and have adverse effects on consumers.