Number of mobile phone users at 114mn in Bangladesh

IANS/Dhaka

The total number of Bangladesh’s mobile phone subscribers reached nearly 114mn at the end of December 2013 with addition of 16.604mn new users in the last year, telecom regulator data showed yesterday.

With 1.042mn new addition in December last year, according to Bangladesh Telecommunication Regulatory Commission (BTRC) data, the number of subscribers in the country reached 113.784mn.

Industry insiders said reduction in SIM tax, value-added tax (VAT) applied on 3G spectrum prices, introduction of third generation mobile broadband and availability of low cost handset have virtually played a vital role to the booming growth in subscription last year.

Bangladesh’s tax administrator in May last year halved SIM tax and value-added tax (VAT) applied on 3G spectrum prices, helping the operators to find more new subscribers by expanding network in more new areas, they said.

The country’s National Board of Revenue (NBR) reportedly reduced the SIM tax to 300 taka ($3.85) from 600 taka ($7.69) and VAT on the 3G mobile service licence and spectrum fees to 7.5% from 15%.

Bangladesh’s mobile operators have long been urging the government to waive SIM tax to help their efforts to bolster mobile penetration. Because, the operators in Bangladesh still sell SIM cards at subsidised rate to woo more customers from less affluent section of the society.

Industry insiders said handset price, like other developing markets, also played a vital role for mobile operators to increase their subscriber base.

In this connection, China-made handsets helped Bangladesh to continuously witness boom in mobile penetration, they said.

“Chinese handsets are contributing a lot to the growth of Bangladesh telecom market,” Faisal Alim, general secretary, Mobile Handset Importers Association of Bangladesh, said.

“Availability of low cost handset definitely has played an important role to increase the sub-base which otherwise would have not been possible,” said Munir Hasan, director for strategy and planning at Grameenphone.

He said that competition from vendors actually forced the reputed brands to introduce low-cost handsets.

Bangladesh currently imports about 18 to 20mn handsets every year.