Many areas in Bangladesh, till date remain remote from the advantages of growing opportunities. However GrameenPhone makes an attempt to open the doors of telecom technology to all, writes Ambreen Arif
Bangladesh is among the poorest countries in the world. The UNDP lists it as number 144 according to the Human Development Index, a composite of development and human development indicators. Agriculture accounts for major share of its GDP and more than two-thirds of all employment. The manufacturing sector's share of GDP remains at 11%, while the services sector is burgeoning and accounts for over 40%. Life expectancy is 58 years. Approximately 53% of the population is illiterate, over 80% live in rural areas, and about 47% are still living below the poverty line.
Among all other serious problems, the telecom sector has received scant attention from policy makers, and the country has only recently witnessed an expansion of its network, especially in urban areas. Bangladesh is in an awkward stage of moving from a monopoly to a liberalized telecommunications environment. In this transition, there are numerous obstacles that are symptomatic of the difficulty associated with the transition in the absence of an independent regulatory body.
For decades, the Bangladesh Telegraph and Telecom Board (BTTB) assumed the role of the natural monopolist for the provision of telephone services. However, with the passage of time, however, digital and cellular-phone technologies have given rise to certain euphoria in Bangladesh. Some private operators are now making their mark in the country, demonstrating that "small is beautiful" may sometimes hold true in the telecom sector as well. In November 1996, licenses to operate cellular mobile phone networks were issued, and Grameen Bank, Telecom Malaysia, International Bangladesh Ltd. and Sheba Telecom Ltd. entered the market.
Bangladesh followed a sequential strategy in liberalizing the mobile phone sector. During 1993-1996, mobile phone customers could not reap the benefits of competition as the market was monopolized by Pacific Bangladesh Telecom Ltd. Naturally; mobile phone charges were high in this period.
However, with the commissioning of mobile phone service by GrameenPhone Limited and Aktel in 1997, the situation started to improve in terms of price reduction and quality.
The period 1997-2004 was characterized by GrameenPhone's dominance. GrameenPhone Limited quickly grabbed the majority market share because of its widespread social network (GrameenPhone is a sister organization of Grameen Bank), and by its high quality network and innovative marketing skills. Mobile phones created entrepreneurship among the people. GrameenPhone's VPP brought revolutionary changes in the lives of rural people.
And most recently, Ericsson has signed a major deal with GrameenPhone to build and integrate a complete IP mobile backbone network for the introduction of layered architecture across Bangladesh. This marks GrameenPhone's first step towards an all-IP network.
Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of US$ 27.9 billion (SEK 188 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock exchanges.
Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices.
This also means that GrameenPhone, the leading operator in Bangladesh, will use Ericsson's mobile packet backbone network to build its IP network across Bangladesh in a cost-efficient way. The deal will provide full telecom-quality IP transport for all network traffic and will allow the operator to introduce high-quality services quickly.
Shafiqul Islam, Chief Technical Officer of GrameenPhone, commented, "GrameenPhone has enjoyed a long, fruitful relationship with Ericsson and is pleased to extend the partnership further. In keeping with our past achievements, we want to lead the Bangladeshi market by offering a high-quality and wide range of differentiating mobile services, with the most innovative and complete portfolio of applications and interactive contents."
Moreover, while liberalizing the telecom sector, the policy makers of Bangladesh should keep in mind that a minimum number of players (may be three, four or more, depending on the market size, tele-density and availability of radio spectrum) are needed in the sector to have a competitive environment. Consolidation of the sector sometimes becomes necessary to sustain the growth and investment in the sector (by keeping it profitable). But the number of mobile phone companies should not be so limited that it substantially lessens competition and turns the market into a stagnant zone. 
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