Mobile industry is expected to generate $17 billion of economic value in Bangladesh within 2020 given that the government will adopt right policy for the sector, forecasted the GSMA, a London-based trade body of worldwide mobile operators.
The GSMA came with the prediction in its latest report on ‘Economic Impact: Bangladesh Mobile Industry’ released on Wednesday.
The mobile industry’s direct contribution to the country’s GDP will be worth around $5 billion and indirect contribution will be $1.80 billion, while the sector will increase productivity by $10.20 billion in 2020, said the GSMA, a body of 1,100 mobile phone operators.
It also assessed that mobile technologies and services generated 6.20 per cent or $13 billion of economic value to the country’s gross domestic production in 2015.
It said, ‘Bangladesh performs close to the regional averages across metrics of mobile market development, despite having lower income than neighbouring countries.’
Notably, Bangladesh is above the regional average in subscriber penetration, while only slightly below in mobile internet and in the proportions of 3G and 4G connections, it said.
According to the entity, Bangladesh’s unique subscriber and mobile internet penetration are 53 per cent and 33 per cent respectively against the South Asian average of 50 per cent and 34 per cent respectively. India’s subscriber penetration is 48 per cent.
Bangladesh’s 3G connections proportion, however, is lower with 20 per cent against a 21-per cent and 32-per cent average in South Asia and World respectively.
Against the 23-per cent and 1.90-per cent 4G connections proportion in South Asia and World respectively, Bangladesh is yet to launch 4G mobile phone service.
Pointing-out policies, the GSMA in its report said, ‘Across the globe, stakeholders are adopting more liberal regulatory approaches towards spectrum management.’
‘Spectrum-related policy choices are therefore critical to enabling investment. These include availability of additional spectrum at reasonable prices, providing clarity on spectrum roadmap for upcoming bands like 700 MHz and remain free from restrictions on spectrum-use that limit the industry’s ability to adjust to changes in consumer preferences and technology,’ it said.
‘Realising the full potential would depend on a strong partnership between government, industry and other stakeholders,’ the report said.
The direct jobs in the sector will increase to 85,000 in 2020 from 78,000 in 2016, the GSMA also said.
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