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3G penetration in Bangladesh

Started by arif, April 18, 2017, 10:26:39 PM

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arif

3G penetration in Bangladesh

Bangladesh is one of the last countries in Asia to be awarded 3G licenses. However, the top four mobile operators have been offering data services on 2G networks. Hence, while 3G penetration is low, mobile internet connection penetration is over 20% (see Figure 20). For example, in Q2 2014, Grameenphone reported that five million active Facebook users were on its network. The uptake of 3G connections is expected to be relatively fast; by 2020, 3G connections will surpass 2G, even if this is slower than the regional average.



In the first half of 2013 smartphones accounted for 6% of total handset shipments into Bangladesh, which has steadily increased but is still very low (see Figure 21). The largest vendor in Bangladesh is a local brand, Symphony Mobile, with a 37% handset market share, of which 34% accounts for feature phones and 3% for smartphones (see Figure 22). In just five years, Symphony Mobile has out-powered international giants like Nokia and Samsung. Nokia dominated the Bangladesh handset market for around a decade with a 50%+ handset market share annually until the end of 2010, slipping under 50% in 2011, and was surpassed by Symphony Mobile in 2012. Symphony Mobile's unique offerings and first mover advantage have given the firm a distinct competitive edge; for example they were the first to launch dual-SIM handsets and the country's first phone with QWERTY keyboard and trackball. Another selling point is given by their pricing structure, handset prices start from BDT 1,000 ($13) and go up to BDT 20,000 ($250). In addition, their smartphones run on Android, which is the most popular operating system in Bangladesh. Lastly, Symphony Mobile has established customer care centers in all major districts and collection points in the smaller districts to ensure service to customers based in remote areas.



Bangladesh's GDP has been growing at an average of 6% each year for the past ten years.However, it is still a low income economy with a GDP per capita of just over $800. But there is great potential for growth – Bangladesh is committed to becoming a middle-income country by 2021, its 50th year of independence, and economist Jim O'Neil believes that Bangladesh is part of the "next eleven," a set of eleven countries with a high potential of becoming the world's largest economies in the 21st century, along with the BRIC countries.

The low 3G penetration is due to the late release of 3G spectrum in 2013. However, mobile internet has reached 20% penetration by delivering mobile data services using 2G networks. The combination of 3G spectrum now in play, solid existing site coverage, and consumer appetite for internet use in urban and rural areas means this trend is accelerating (It is expected that 3G connections to surpass 2G by 2020). The only question is pace: this could very well occur faster than expected, if the number one challenge of affordable access (both airtime and handsets) can be overcome.

Source: https://www.linkedin.com/pulse/20140903093239-75597643-3g-penetration-in-bangladesh?trk=mp-reader-card&trk=mp-reader-card