Market Trends of Bangladesh Telecom Industry
The Growth of 5G in Bangladesh is Expected to Drive Market Growth
- The deployment and adoption of 5G technology are reshaping Bangladesh's broadband landscape, ushering in a new era of connectivity. With promises of superior network performance, enriched user experiences, and being a digital transformation catalyst, 5G is a pivotal opportunity in the country.
- 5G technology in Bangladesh not only promises enhanced network performance but also addresses a critical need. It has the potential to exponentially boost data transfer rates, slash latency, and significantly expand network capacity, surpassing its predecessors. This means faster internet speeds, seamless connectivity, and a better response to the escalating demands of data-centric applications, video streaming, and emerging tech like AR and VR.
- Global advancements in mobile broadband, driven by 5G, are now reaching Bangladesh. This translates to faster downloads, smoother video streaming, and enhanced mobile app performance for Bangladeshi consumers. With data consumption on the rise, 5G's heightened capacity ensures that the network can meet the surging demands for data-intensive services, keeping users connected and productive on the move.
- While Bangladesh initially had limited 5G offerings, recent developments are promising. In April 2023, Teletalk Bangladesh inked a deal with Huawei to bolster its rural coverage and prepare for 5G. The agreement entails Huawei providing Teletalk with new 4G sites, core and IP networks, and modernized charging and billing systems.
- The push for 5G is spurring substantial investments in Bangladesh's broadband infrastructure. Telecom players and stakeholders are ramping up efforts to expand 5G networks, deploying small cells, advanced antennas, and fiber-optic backhaul solutions. This infrastructure not only enhances 5G services but also bolsters overall network performance and coverage.
- In Q1 2024, the mobile phone industry in Bangladesh demonstrated resilience, achieving a modest 1.7% Y-o-Y growth, with 4 million units shipped. This growth is noteworthy, considering the challenges posed by heavy taxation and economic pressures. Insights from the International Data Corporation’s Worldwide Quarterly Mobile Phone Tracker revealed that Bangladesh shipped 1.8 million units in Q1 2024, reflecting a substantial 11.6% increase from the previous year.
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The Data and Messaging Services Segment is Expected to Hold a Significant Market Share
- Telecommunication vendors in Bangladesh primarily offer data and messaging services, encompassing fixed internet, mobile data, and messaging. With the rising adoption of 5G and a push toward digitalizing business operations, telecom companies are seizing the opportunity to provide high-speed data services, propelling market expansion.
- Bangladesh boasts a substantial mobile internet user base. Enhanced connectivity not only bolsters communication but also underpins data-centric services. As per the Association of Mobile Telecom Operators of Bangladesh (AMTOB), the number of mobile internet subscribers reached a staggering 118.96 million mobile internet subscribers by November 2023.
- According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the number of telecom towers was 43,886 as of November 2023. These towers play a pivotal role in fortifying data and messaging services, thereby increasing market growth.
- Information accessibility in Bangladesh is on the rise. Data from the Bangladesh Bureau of Statistics revealed that 37% of individuals aged 18 and above were active internet users. Social media engagement, spanning platforms like Facebook, Instagram, WhatsApp, YouTube, and TikTok, is on an upward trajectory. This surge in social media usage is directly translating into heightened data service demand from telecom providers, given that these platforms necessitate robust internet connectivity.
- In a notable development in October 2023, Robi Axiata Limited (Robi), a prominent digital service provider in Bangladesh, pioneered the launch of Rich Business Messaging (RBM) in the nation. RBM, a Google-backed messaging service, empowers businesses to deliver interactive, content-rich messages to their clientele.
- The confluence of factors, including businesses' digital metamorphosis, a surge in cloud-based enterprise solutions, widespread 5G and fiber optics deployment for high-speed internet, and enticing data packages from vendors, collectively fuel the growth of data and messaging services in Bangladesh's telecommunication landscape.
