Currently, the inflation rate is 11 percent. However, the revenue of the telecom sector has decreased from 6.39 percent in 2020 to 4.40 percent in 2024. The sector's revenue has almost halved in the last five years. The sector is facing problems due to lax implementation of Significant Market Power (SMP) policy.
These things came up in a round table meeting on 'Telecom Sector: Slow Investment and Uneven Competition' organized by Telecom Reporters Network Bangladesh (TRNB) at a hotel in the capital today. In the meeting, special emphasis was placed on the effective implementation of SMP guidelines for ensuring stability and fair competition in the country's telecommunication sector.
The SMP operator is said to be currently earning more than 90 percent of the market share (net profit after tax). As much as 50 percent of the revenue market is in their possession. Even if they control 50 percent of shareable infrastructure, they are reluctant to share it. This not only discourages new investors in the sector; Rather, the parties in the market are also wrapping themselves up.
TRNB Organizing Secretary Al Amin Dewan presented the main article in the meeting presided over by TRNB President Sameer Kumar. According to the original article, the competitive position among mobile network operators is being undermined by the dominance of a single large operator. However, to overcome this situation, the regulatory body took steps to come up with SMP guidelines 4 years ago. Yet many operators are leaving the country and investment in the sector is declining.
Speaking as the chief guest at the roundtable meeting, BTRC (Bangladesh Telecommunication Regulatory Commission) Chairman Major General (Retd.) Emdad Ul Bari emphasized the need for greater cooperation among stakeholders in the sector. He said that BTRC itself has no powers as a regulator. They have to take prior approval from the government. This is the main problem behind the unequal competition. Sudden changes in various laws and policies are another problem. However, some restrictions have already been imposed on SMP players.
Amtob Secretary General Lt. Col. (Retd.) Md. Zulfikar said, to attract investment in the telecommunication sector, a competitive environment must be created. To solve the various problems of this sector, the entire sector needs to be regulated within specific regulations.
Taimur Rahman, Head of Corporate Affairs of Banglalink said, 'It is necessary to implement the existing regulations. And as advanced technologies like AI are coming, we need to focus on how to increase competition in the market.'
Robi's Head of Corporate Affairs Sahedul Alam said fair market competition is the main driving force of economic growth. But the reality is that there is no environment for healthy competition in the telecom sector. An operator is earning huge profits every year. This is because telecom regulations favor large operators while hampering the growth of smaller operators.
Managing Director of Teletalk Nurul Mabud Chowdhury said that the situation of unequal competition is so bad that there is no situation to talk about it.
The former director of the competition commission also spoke. Khaled Abu Nasser and Foreign Chamber of Commerce and Industry Executive Director and CEO TIM Nurul Kabir.
