Dominated by a few key players, the digital infrastructure market in Bangladesh is a monopoly.
The rest of the digital landscape is a barren wasteland, devoid of innovation and competition.
The State of Digital Infrastructure in Bangladesh
A Monopolistic Market
The digital infrastructure market in Bangladesh is dominated by a handful of players, who seem to have a stranglehold on the industry.
Tower sharing is a major obstacle to the telecom sector’s financial sustainability in Bangladesh.
This has resulted in a significant increase in costs for the telecom sector, which is already facing financial difficulties.
The Problem of Tower Sharing
The lack of tower sharing is a major issue in Bangladesh’s telecom sector. MNOs are reluctant to share strategic locations, such as high-rise buildings or areas with good coverage, due to concerns about revenue loss and loss of control. This has led to a situation where smaller operators are forced to build their own towers, resulting in redundant infrastructure and increased costs. Key issues with tower sharing: + MNOs refuse to share strategic locations + Smaller operators are forced to build redundant infrastructure + Increased costs for the telecom sector
The Impact on the Telecom Sector
The lack of tower sharing has significant implications for the telecom sector in Bangladesh. The sector is already facing financial difficulties, and the added cost of building and maintaining towers is exacerbating the problem. The increased costs are being passed on to consumers, who are already struggling to afford basic services. Financial implications: + Increased costs for the telecom sector + Passed on to consumers + Exacerbating financial difficulties
The Need for Reform
The lack of tower sharing is a symptom of a larger problem in Bangladesh’s telecom sector. The sector is in need of reform to address the issues of tower sharing, as well as other problems such as spectrum allocation and interconnection. The government needs to take a proactive role in addressing these issues to ensure the sector’s long-term sustainability. Key areas for reform: + Tower sharing + Spectrum allocation + Interconnection
A Path Forward
There are several steps that can be taken to address the issue of tower sharing in Bangladesh’s telecom sector.
The Need for Policy Revisions
The current policy framework governing the coexistence of Mobile Network Operators (MNOs) and TowerCos is complex and restrictive. The existing rules often hinder the efficient deployment of infrastructure, leading to delays and increased costs for MNOs. To address these challenges, policy revisions are necessary to empower TowerCos to manage infrastructure effectively.
The Current Challenges
These challenges stem from the current policy framework, which often prioritizes the interests of TowerCos over those of MNOs. The framework can be overly restrictive, making it difficult for MNOs to access the necessary infrastructure to provide high-quality services to their customers.
Empowering TowerCos
Policy revisions should aim to empower TowerCos to manage infrastructure more effectively. This can be achieved by allowing TowerCos to take ownership of sites and ensuring that they are held accountable for their performance.
Tower policy sparks debate over infrastructure investment and foreign investment potential.
The Tower Policy: A Complex Issue
The tower policy in Bangladesh is a contentious issue that has been debated for years. The policy allows Mobile Network Operators (MNOs) to lease towers from TowerCos, which are companies that own and operate cell towers. This policy has been criticized for its potential to favor MNOs and TowerCos, leading to concerns about the country’s telecommunications infrastructure.
The Current State of the Policy
Currently, the tower policy is governed by the Bangladesh Telecommunication Regulatory Commission (BTRC). The BTRC has set a minimum price for tower leases, which is currently set at Tk 1.5 million per year. However, this price is not sufficient to cover the costs of maintaining and upgrading the towers. The current policy has led to a situation where MNOs are paying significantly less than the actual cost of maintaining the towers, resulting in a loss of revenue for TowerCos. The policy has also led to a lack of investment in the country’s telecommunications infrastructure, as MNOs are not incentivized to invest in new towers.*
The Potential Benefits of Reform
Reforming the tower policy could have significant benefits for Bangladesh. One potential benefit is the attraction of foreign direct investment (FDI). According to estimates, reforming the policy could attract up to $1.5 billion in FDI. The policy reform could also generate capital gains tax, which could boost national income.
The lack of investment in fibre infrastructure has hindered the development of the country’s digital economy.
The Challenges Facing Bangladesh’s Telecom Infrastructure
Restrictive Policies and Lack of Investment
The restrictive policies imposed by the government on Mobile Network Operators (MNOs) and Internet Service Providers (ISPs) have hindered the development of Bangladesh’s telecom infrastructure. The government has imposed strict regulations on the laying of fibreoptic cables, which has resulted in a lack of investment in the sector. The government has imposed a 30-year lease on fibreoptic cables, which makes it difficult for MNOs and ISPs to invest in the infrastructure. The government has also imposed a 10% tax on fibreoptic cables, which increases the cost of laying and maintaining the infrastructure.
The Telecom Regulatory Landscape in Bangladesh
The telecom sector in Bangladesh is plagued by a complex regulatory framework, with multiple entities sharing overlapping responsibilities. The current system has led to inefficiencies and a lack of effective policymaking, hindering the growth of the sector.
The Current State of Telecom Regulation
The Ministry of Posts and Telecommunications (DOT) is responsible for policymaking in the telecom sector. However, the ministry lacks the necessary expertise and resources to effectively regulate the sector.
The country’s telecom regulator, the Bangladesh Telecommunication Regulatory Commission (BTRC), has been accused of being overly lenient towards the major telecom operators, allowing them to dominate the market and stifle competition.
The Rise of the Big Four
The four major telecom operators in Bangladesh are Grameenphone, Teletalk, Citycell, and Robi. These companies have been the dominant players in the market for years, and their market share has remained relatively stable. However, this stability has come at the cost of competition, as smaller players have struggled to gain traction. Key statistics: + Grameenphone: 43.6% market share + Teletalk: 24.6% market share + Citycell: 14.5% market share + Robi: 12.3% market share
The Impact on Competition
The lack of competition in the telecom sector has had a significant impact on the country’s economy.
