Market Trends of Bangladesh Telecom Industry
This section covers the major market trends shaping the Bangladesh Telecom Market according to our research experts:
Growth of Mobile Penetration in Bangladesh
- While the demand for smartphones is slowly declining internationally, Bangladesh's mobile phone industry is still strong and has the potential for manufacturers to develop sustainably. In Bangladesh, smartphones are proven to be an essential medium for enabling the digital world. The last ten years have seen a dramatic shift in consumer needs. These years have seen a rise in the demand for high-specification gadgets due to the rapid adoption of smartphones.
- The mobile market in Bangladesh has proliferated over the last ten years. According to a GSMA report, the number of unique users rose to 90 million in 2020 from 47 million in 2010 (an increase of over 90%). By the end of last year, Bangladesh had a penetration rate of 54% for unique subscribers and 101% for all connections, with some users holding multiple connections.
- Mobile connectivity positively affects the country's GDP and productivity. Millions of people use their mobile devices as their main method of internet access. The mobile industry delivers life-improving advantages, including access to educational institutions and financial services. Agricultural production may be increased with the use of mobile services. Through SMS, data, and voice services, mobile devices may offer farmers useful information on crop pricing across markets, weather forecasts, and agronomic guidance. IoT communication between sensors and drones optimizes manufacturing procedures and growth environments.
- Furthermore, with the rising dependence on mobile phones and internet access, the number of mobile phone connections has been growing by more than 10 million in the most recent last calendar year, the highest in three years. According to data from the Bangladesh Telecommunication Regulatory Commission, there were around 181 million active mobile phone connections at the end of December 2021 compared to 170.1 million a year earlier. The total active mobile phone connections of four major mobile phone providers grew by 10.9 million in 2021.
- Following the COVID-19 pandemic, mobile phone operators confirmed that the use of mobile phones and internet-enabled services had reached a new dimension. Tech-savvy individuals conduct daily tasks based on mobile phone connections, including making phone calls and taking part in meetings. There are more than 180 million mobile phone connections, which is about the same as the country's total population. More new connections are expected as the nation enters the age of the internet of things. The launch of fifth-generation, or 5G, mobile phone services might speed up the growth of mobile phone connections across the nation.
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5G would boost wireless segment
- Innovation is at the center of Bangladesh's socioeconomic change. The government is presently pushed by the Digital and Smart Bangladesh programs to transform the country into a high-income nation in line with Vision 2041. Given the government's initiatives to improve environmental sustainability in crucial sectors, Bangladesh is becoming greener thanks to ground-breaking initiatives like developing a smart education system, telemedicine advancements, and financial services digitization, as well as promoting remote work collaboration (over physical ones, unless necessary). In addition to these activities, Bangladesh is also preparing for the future of 5G and the convergence of fixed and wireless networks.
- Following the government's decision to prioritize decreasing and increasing countrywide 4G network coverage to address current connection gaps, fifth-generation (5G) spectrums have been auctioned and are ready for implementation. The advancement of the crucial sectors of government operations and commercial and industrial zones will be given top attention as Bangladesh rolls out 5G in phases.
- Bangladesh is evolving quickly as "Vision 2041" becomes a reality. Bangladesh's perspective plan has a goal of becoming an upper-middle-income nation by 2031 and a high-income nation by 2041. The plan would be implemented mostly through the internet and digital technologies. Digital inclusion is an important part of this journey, and the dependable and inexpensive connection is necessary for the government to achieve its "Vision 2041" goals.
- The fifth generation (5G) era of telecommunications is steadily arriving in Bangladesh. Faster download speeds, low latency, increased connectivity for billions of devices, improvements in virtual reality, the internet of things, and artificial intelligence are just a few things 5G can provide in the country. These advancements can potentially change the entire lifestyle of people across the country. Innovative healthcare, modernized mining, and improved logistics would all emerge from its utilization.
- As confirmed by the officials of the planning ministry, the Bangladesh government finally moved forward with the rollout of fifth-generation (5G) mobile internet services via state-run network provider Teletalk. In the initial days, the 5G network is expected to only be accessible at important governmental and commercial institutions run by the two Dhaka municipal corporations. According to the initiative, Teletalk would get a total of BDT 2365.4 million (USD 23.29 million) from the government to help it adapt its current cellular network to introduce 5G services by 2023. The initiative, which was started by the Posts and Telecommunications Division, hopes to offer 5G-based mobile services to the public by the end of 2023.
