REVOLUTION OF MOBILE TELECOMMUNICATION INDUSTRY

Revolution of Mobile Telecommunication Industry

Table of Content

CHAPTER ONE3

INTRODUCTION3

CHAPTER TWO8

LITERATURE REVIEW8

CHAPTER THREE14

METHODOLOGY14

REFERENCES15

Revolution of Mobile Telecommunication Industry

Chapter One

Introduction

The Bengalese telecommunications industry has changed considerably in recent years. The telecommunications infrastructure has been modernized, competition introduced into the market and new services such as mobile launched. In 1999 the Bengalese telecommunications reached an important milestone in their development, namely, achieving a tele-density figure of more than one line per 100 people.

A key factor influencing the development of the Bengalese telecommunications industry is the availability of resources. Although it is perhaps only natural to focus on the availability of financial resources, two other types of resources - managerial and regulatory - are also important.

The challenge of diffusing telecommunication networks across Bangladesh is a daunting one, requiring considerable expenditure. It is, therefore, no surprise that World Bank development loans have been sought. The use of external sources of capital to fund the expansion of the telecommunications network should not, however, be interpreted as implying that NDCL was either loss making or without its own financial resources. NDCL is widely acknowledged to be the most profitable state-owned enterprise, and according to some it is the only profitable state-owned enterprise in Bangladesh. The combination of large margins and a dominant position in the marketplace enabled NDCL to amass a substantial cash reserve that it has been, until very recently, reluctant to spend.

In some respects this reluctance is understandable - as others were prepared to fund the investment, NDCL opted to retain its reserves so that they could be invested when these alternatives sources of investment capital were exhausted. The decision of NDCL to expand its network has substantially reduced its financial reserves; however, by relieving congestion in the Kathmandu Valley and expanding network coverage elsewhere it is likely that revenues will increase. Making the most of this opportunity will depend, to a lesser or greater extent, on the management of NDCL. Thus, the network expansion that has been announced by NDCL draws attention to human resource issues within the Bengalese telecommunications industry.

That NDCL was able to amass a substantial cash reserve is testament to the success of its management. However, on other criteria such as waiting lists and repair times, the management of NDCL have been less successful. It is also unclear as to how well NDCL will cope with increasing competition, either from a rejuvenated UTL or from Spice Bangladesh. The past successes of Space Time Network and the Mercantile Group have demonstrated that they are both innovative and well managed. It is not inconceivable to suggest that if either of these companies were to enter the voice telephony market, they could emerge as significant competitors to NDCL.

There is also another dimension to this lack of independence, namely, the feeling of some in the telecommunications industry that the Ministry is willing to intervene in regulatory matters when lobbied. Although strictly speaking there is no legal foundation on which the MOIC can intervene in the regulation of the telecommunications industry, it may be ...