Bangladeshi Operators to Share Network Infrastructure
Bangladeshi operators, Warid Telecom and Pacific Bangladesh Telecom (Citycell) have signed an agreement to share their network infrastructure. Under the deal, signed earlier this week the two companies will share the passive elements of around 350 of their respective base stations - covering towers, poles, transmitter equipment, transmission bandwidth and power supplies.
While the deal would typically headline as reducing their combined capital expenditure - the sharing of power supplies could have a significant impact on their operating expenditure in rural areas, especially if base stations have to be manned by local security staff.
Chief Financial Officer (CFO) of Warid Telecom, Amyn Merchant told The New Nation newspaper that "this is a landmark agreement in the history of Bangladesh's telecom sector. By collaborating with Citycell, we can cost-effectively serve our customers with wider coverage and greater capacity. It is a win-win deal for both the parties."
Warid has also agreed to buy access to a fiber network operated by Citycell for backhaul and bandwidth purposes. Earlier this year, Warid's CEO said that he aimed to have nationwide coverage by the end of 2009. The company has earmarked an investment of US$1 billion over the next three years, with some US$250 million being spent over the next twelve months.
The country already has six operators - and according to figures from the Mobile World, ended last year with just under 34.4 million mobile subscribers - which is still a population penetration level of just 22.6%. Also worth noting is that while the country has six operators, only four of them are of any significant scale, Grameenphone (15m), Banglalink (6m) and Aktel (7m) and finally, Warid Telecom (2.1m). The two remaining long term incumbents, Citycell and Teletalk barely add up to 2 million customers between them.
Earlier this week, Japan's DoCoMo acquired a 30% stake in Aktel.
Posted to the site on 20th June 2008