1.1 Introduction
Much of the world has, at best, limited access to basic telephone service. Bangladesh is no exception to this rule. A brief survey of the telecommunications sector in Bangladesh (PBC) shows that in Bangladesh, which ranks among the most densely populated countries on the globe, one telephone serves 275 people, equating to one of the lowest teledensity measures worldwide. Of the total telephone count in Bangladesh, approximately 20 percent serve the rural areas. The need for telecommunications sector investment and growth is obvious. This is especially so if Bangladesh intends to participate and coexist economically and socially in a larger information-intensive world.
There were only 3,000 users when mobile phone was an expensive personal gadget of the society's affluent segment. Competition was introduced in 1996. Since then mobile phone gradually became a general-purpose communication tool and today it boasts of 6.25 million users representing a 132 percent compound annual growth rate. It is predicted that there will be around 10 million mobile subscribers in the country by 2006.
Middle to higher income citizens has been dominating the mobile customers. Lately the lower income group started joining the club. It was fuelled after Banglalink rocked the market by bundling subscription and handset at Tk1, 500 only. Later people became more excited after the launching of Teletalk.
AKTEL stunned the market introducing one-second pulse. GP made history with launching EDGE, the very first step towards third generation mobile phone. City Cell's free handset offer coincided with Sing Tel's acquiring this CDMA operator last week. Graph of our mobile phone market's growth was to take the shape of a "Hockey-stick" by this year.
Banglalink was the last addition to the GSM family of OTH. In September 2004, OTH acquired a mobile services company, Shebatel in Bangladesh with a nationwide GSM license valid until 2011. Since then, OTH has