Mobile operators Grameenphone and Banglalink have agreed to share network infrastructure to take services at low costs to the untapped rural market, According to a posting by Grameenphone at Dhaka Stock Exchange (DSE) website. The announcement came at a time when Indian giant Bharti Airtel is set to debut in Bangladesh with the fourth largest operator Warid Telecom, targeting untapped rural customers as well.
Network-sharing between the two big players that occupy a combined 70 percent share of the six-operator market will help both minimise infrastructure costs by utilising resources together. The partnership will help Banglalink expand its outreach via GP's infrastructure.
Grameenphone and Banglalink together serve 37.13 million customers out of the 52.43 million mobile subscriber market.
According to the posting to the DSE website yesterday, "Grameenphone Ltd (GP) and Orascom Telecom Bangladesh Ltd (Banglalink) signed an agreement on February 1 to share GP's telecom infrastructure to expand Banglalink's network across the county." Grameenphone shares increased 2.64 percent to Tk 286.80 on DSE on last trade.
This initiative will mutually benefit both operators in terms of providing faster and cost effective services to subscribers. It is believed that infrastructure sharing agreements such as this will ensure sustainable utilisation of national resources, according to the announcement.
Banglalink, which traditionally practises an aggressive marketing strategy, has recently announced a plan to raise Tk 425 crore through bonds to update its network to firm up a foothold in the future data market.
Bangladesh's mobile penetration rate is only 34 percent, which mainly remains an urban-dominated market. The operators are unwilling to roll out their rural networks due to poor business returns.
Each operator will have to spend a minimum of Tk 40,000 to a maximum of Tk 80,000 a month to run a single base transceiver station (BTS), which can handle around 3,000 calls at a time.
Infrastructure to be shared includes BTS, spectrum, antenna, feeder cable, radio access network, microwave radio equipment, billing platform, switching centres, router, base station controller, optical fibre access and backbone transmission network and database.
Grameenphone and Banglalink together serve 37.13 million customers out of the 52.43 million mobile subscriber market.
According to the posting to the DSE website yesterday, "Grameenphone Ltd (GP) and Orascom Telecom Bangladesh Ltd (Banglalink) signed an agreement on February 1 to share GP's telecom infrastructure to expand Banglalink's network across the county." Grameenphone shares increased 2.64 percent to Tk 286.80 on DSE on last trade.
This initiative will mutually benefit both operators in terms of providing faster and cost effective services to subscribers. It is believed that infrastructure sharing agreements such as this will ensure sustainable utilisation of national resources, according to the announcement.
Banglalink, which traditionally practises an aggressive marketing strategy, has recently announced a plan to raise Tk 425 crore through bonds to update its network to firm up a foothold in the future data market.
Bangladesh's mobile penetration rate is only 34 percent, which mainly remains an urban-dominated market. The operators are unwilling to roll out their rural networks due to poor business returns.
Each operator will have to spend a minimum of Tk 40,000 to a maximum of Tk 80,000 a month to run a single base transceiver station (BTS), which can handle around 3,000 calls at a time.
Infrastructure to be shared includes BTS, spectrum, antenna, feeder cable, radio access network, microwave radio equipment, billing platform, switching centres, router, base station controller, optical fibre access and backbone transmission network and database.
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