Taxes eclipse broadband of Bangladesh: GSMA

Posted on July 21, 2010 / 4 Comments

A latest study of GSMA reveals that consumers in Bangladesh are punished with 55% sector-specific taxes while subscribing a new mobile connection. It is worst among the other five countries – Malaysia (6.1%), South Africa (15%), Mexico (16%), and Brazil (43.3%) – the GSMA has studied.

Bangladesh is among the very few country worldwide and certainly the only country in this group that has brought nearly 100% of its population and landmass under 2G mobile coverage. Over-taxation has been badly impeding the growth of this highly competitive market. Yet the government has provisioned universal service tax while amending the telecoms law this week.

It is a very bad news for the government’s “Digital Bangladesh” scheme. Because, 3G mobile is the only way to acquire rapid nationwide broadband penetration. But the GSMA study is skeptic about such achievement unless the taxes are rationalized. Download full report.

4 Comments

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shehab rahman
July 23, 2010, 3:59 pm
agree with that.bangladeshi govt skiped the 3g broadband to 4g wimax broadband.which is probably most expensive broadband service in the world.which doesnt make any sense.telecom minister of bangladesh has no idea whats the differnce betwen 3g and 4g.
Abu Saeed Khan
July 26, 2010, 10:57 am
@ Shehab

The 3G license has been kept on hold to let WiMax survive. But the present government, let alone the incumbent minister, has played no role in this malpractice. The regulatory hierarchy during the military-backed interim government’s period (2007-08) had orchestrated it. The issuance of 3G licenses has, however, become more uncertain after transferring regulatory authority to the telecoms ministry by amending the telecoms law last week. Moreover, the government is yet to announce the fundamentals of 2G licenses’ renewal, which is due next year. Therefore, investments in telecom has nosedived. The consumers are, certainly, the worst victim of such regulatory uncertainty.
Faisal
December 2, 2010, 2:34 am
The prime minister of Bangladesh who is nothing but a slave of India ruining the country by not making internet available to Bangladeshi people. She does not realize that implementing broadband countrywide can create many jobs for Bangladesh. India is afraid that many western country will outsource in Bangladesh if broadband internet prospers. Dear Prime Minister can you please work for Bangladesh rather than kissing India’s a.. and bulsh..ting about your late father.