Broadband internet increase earning in BANGLADESH

The annual earning from broadband internet penetration in Bangladesh is expected to reach Tk 128 billion by 2020 if the country ensures a rule-based policy regime, a study said yesterday. Bangladesh's internet penetration rate may grow to 32 percent at household level and 66 percent at business level by 2020 from the existing average of four percent, according to the study conducted by Boston Consulting Group USA. Of the expected income, 90 percent will be generated only through the internet-based business. Mobile broadband will play a crucial role in reaching internet to the mass, said the study conducted on behalf of Telenor Group, the majority shareholder in Bangladesh's mobile giant Grameenphone. Ola Jo Tandre, director of Telenor Group ( communications, corporate responsibility), showed the prospect of Bangladesh in a presentation at a seminar on 'Achieving 2021 : A Digital Age for Bangladesh' organised by GSM Association at Radisson Water Garden Hotel in Dhaka. GSM (Global System of Mobile Communication) Association safeguards the interest of the mobile communications industry globally. The association unites around 800 mobile operators from 219 countries. "Bangladesh has a bigger chance than any other countries to use its 3 G (third generation) spectrum for broadband rollout," said Tom Phillips, government and regulatory affairs officer (public policy) of the association. Citing an example, he said Bangladesh's spectrum is not massively used by armed forces like in India, which is an advantage for Bangladesh to offer affordable broadband. "Spectrum cost should be nominal to ensure the affordability of broadband services," said Phillips. Bangladesh's Telecom Minister Rajiuddin Ahmed Raju said the government will not go for auction to award 3 G licences like WiMax licence, which was awarded at a hefty price of Tk 215 crore. Phillips said 1.3 billion fixed phones now cover 19.4 percent of the world's total population, while 4.3 billion mobile lines link 64 percent. GSM operators cover 80 percent of the total mobile subscribers. A 10 percentage-point increase in internet penetration leads to 1-1.25 percent leap in GDP (gross domestic product), 3-10 percent jump in production, one percent in new business, 2 percent in FDI (foreign direct investment) and 8-9 percent increase in government revenues, the study found. In Bangladesh, 48 percent urban people are aware of internet services, while 29 percent of the rural population have heard about the service. "Introduction of mobile broadband will help achieve the government's target of 'Digital Bangladesh' by 2021 , perhaps even ahead of the time. The telecom industry in Bangladesh would be honoured to be part of making this vision a reality," said Hakan Rusch, president and country manager of Ericsson Bangladesh Ltd, in a presentation. Yeafesh Osman, state minister for science and ICT, Zia Ahmed, chairman of Bangladesh Telecommunication Regulatory Commission, Oddvar Hesjedal, chief executive officer of Grameenphone, and Frode Stoldal, chief technical officer, also spoke at the event. Bangladesh will have around 20 million internet subscribers by 2020 if proper policy support is provided, and 90 percent of the users will be added through wireless connections. The study was part of an in-depth research into the adoption rate of internet and its impact in the emerging economies with special focus on Bangladesh, Thailand and Serbia. Currently around five million people in Bangladesh enjoy internet services offered by both mobile and fixed internet service providers. While talking about the possibilities of internet penetration in Bangladesh, Tandre said: "The patient-doctor ratio in Bangladesh is 4000 :1 , which is 1750 :1 in India. So, internet can provide a perfect link between a patient in the rural area to a doctor sitting in a city hospital. In this way, we can lower the count. " "The internet can also diversify the sources of income, for example in agriculture by improving price systems and reducing the reliance on middlemen. The internet can increase considerably the prices the farmers receive for their output." The study suggested ensuring transparency and predictability through better governance by reducing the uncertainty faced by the providers. The government and the regulator should make sure that a high quality regulatory regime is in place.