Banglalink CEO Rashid KhanPhoto: STAR

Bangladesh's mobile market now deserves high-speed wireless broadband internet support to provide more data services for cell phone users, said Rashid Khan, chief executive officer of Banglalink.
"People are talking about more internet-based mobile services. Unfortunately, so far in Bangladesh, the internet penetration is very low," Khan told The Daily Star in an exclusive interview yesterday.
The country's second-largest mobile phone operator's chief feels that steps to roll out the wireless internet will boost the use of mobile phone applications as well.
According to the telecom watchdog, the country's internet penetration is now below 1 percent, the lowest in the South Asian region. To help the broadband internet market grow, Bangladesh Telecommunication Regulatory Commission took a series of steps, including issuing three WiMax licences by next month.
Although mobile operators are not eligible for WiMax licensing, Khan said he felt the country's internet penetration would increase significantly thanks to WiMax, a wireless digital communications system.
"Once internet penetration increases, you would see cellphone applications develop around that," the Banglalink CEO said as he spoke about the company's benchmark of reaching 10 million customers in Bangladesh.
In the six-operator market, Banglalink is the second operator after Grameenphone that touched a double-digit figure in customer acquisition.
In the 44.8 million customers market, GP holds the top position in the market with 20.84 million customers, followed by Egyptian Orascom Telecom's Banglalink with 10 million. AKTEL finishes third with 7.98 million customers.
Other operators are UAE-based Warid, state-run TeleTalk and lone CDMA operator Citycell.
Speaking of his own field, Khan said: "We have achieved 44.8 million customers. But I feel mobile penetration should be over 50 percent (of the population)."
Not so bad news. Low penetration is a major attraction for prospective telecom investors. "We see a lot of penetration to go and a lot of potential in the market," Khan said.
Khan pointed to the recent visits to Dhaka by representatives of the world's largest telecom operator Vodafone and other world players Etisalat and Orange.
Despite fierce competition, Khan is confident of retaining Banglalink's second position that the company achieved at the end of last year, exceeding AKTEL in subscriber acquisition.
"Now, our goal is to become strong number two in the market," he said.
The Egypt-based Orascom subsidiary Orascom Telecom introduced its mobile services in Bangladesh in February 2005 with Banglalink as the brand name.
From the beginning, the company had followed aggressive marketing to divert customers to its network. All other operators slashed their call tariffs in the aftermath of Banglalink's deeper price cuts.
According to Khan, Banglalink has invested $800 million (Tk 5,600croe) and set a target to reach $1 billion by year-end.
Although the company has clinched a second position, it is yet to touch the breakeven point. Khan said his company's internal strategy was to grow fast.
"Now we look to become profitable and I believe it will happen within very short time."
Like other mobile operators, Banglalink has also plans to list on the country's capital market, but Khan was not sure when.
"We have plans to list on the capital market. But it may happen in a time that suits the company and the market as well."