The Telecom Market in Bangladesh
How would you characterize the telecom market in Bangladesh?
The Telecom market is the highest growing industry in Bangladesh. Because of topographic layout, suitable infrastructure, Government support and high demand makes the industry very attractive. Therefore the Telecom market in Bangladesh can be analyzed by six distinctive core dimensions. They are –
Current market structure
Market size
Large demand for communication in Bangladesh makes the telecom industry as one of the fastest growing industry in the world. According to July, 2008 the total phone users of the country reached 4.5 crore, among them only 2.5 percent customers own land phones. This indicates high demand for mobile phone, not for PSTN connection.
Market type
The telecom market in Bangladesh is oligopoly in nature. It can be divided into two industries: PSTN or landline industry and Mobile phone industry; where Mobile phone industry is clearly an oligopoly with the market leader –Grameen Phone. Until 2005, the landline industry was the monopoly where the sole monopolist was BTCL. After that, the industry turned into an oligopoly with the market leader BTCL. As BTCL is losing its power, the industry might be again turned into the monopolistically competitive market, as each company has the differentiated product.
Labor Source: The statistics shows that 2000 ICT related graduates are passing each year. And also a huge number of non-IT graduates are also working in this field. Bangladesh labor cost in ICT sector is very low and the range of salary is from USD 75 – USD 1200 per months. It also reveals that the skill level of these graduates is satisfactory. Cheap skilled labor is the significant competency of Bangladesh ICT industry.
Infrastructure in Bangladesh
Flat topographic layout makes Bangladesh a suitable place for easier telecommunication. It makes the investment lower against very high demand with a large consumer base. Even though the current infrastructure is
The Telecom market is the highest growing industry in Bangladesh. Because of topographic layout, suitable infrastructure, Government support and high demand makes the industry very attractive. Therefore the Telecom market in Bangladesh can be analyzed by six distinctive core dimensions. They are –
Current market structure
Market size
Large demand for communication in Bangladesh makes the telecom industry as one of the fastest growing industry in the world. According to July, 2008 the total phone users of the country reached 4.5 crore, among them only 2.5 percent customers own land phones. This indicates high demand for mobile phone, not for PSTN connection.
Market type
The telecom market in Bangladesh is oligopoly in nature. It can be divided into two industries: PSTN or landline industry and Mobile phone industry; where Mobile phone industry is clearly an oligopoly with the market leader –Grameen Phone. Until 2005, the landline industry was the monopoly where the sole monopolist was BTCL. After that, the industry turned into an oligopoly with the market leader BTCL. As BTCL is losing its power, the industry might be again turned into the monopolistically competitive market, as each company has the differentiated product.
Labor Source: The statistics shows that 2000 ICT related graduates are passing each year. And also a huge number of non-IT graduates are also working in this field. Bangladesh labor cost in ICT sector is very low and the range of salary is from USD 75 – USD 1200 per months. It also reveals that the skill level of these graduates is satisfactory. Cheap skilled labor is the significant competency of Bangladesh ICT industry.
Infrastructure in Bangladesh
Flat topographic layout makes Bangladesh a suitable place for easier telecommunication. It makes the investment lower against very high demand with a large consumer base. Even though the current infrastructure is