May 9, 2009

Ericsson urges Bangladesh to issue 3G licences

Ericsson, the world's biggest mobile network maker, called on Bangladesh on Wednesday to issue 3G licenses so operators can launch mobile broadband services there.Mobile broadband services, which require the licensing of the 2100 MHz spectrum band for third-generation (3G) services, would give many more people access to the Internet as Bangladesh has a high number of mobile phones and comparatively few fixed lines.

"If the government releases appropriate spectrum for 3G, which is the proven global mainstream for the mobile broadband, then we are confident that it will contribute significantly to the country's GDP (gross domestic product) growth," Arun Bansal, managing director of the Ericsson Bangladesh, told a news conference.

The mobile phone sector contributed 6.2 percent of Bangladesh's GDP in 2007. Research firm Deloitte & Touche have estimated that mobile communication has raised GDP growth in Bangladesh by 0.12 percent for each 1 percent increase in penetration.

"It is estimated that there are over 6 million mobile internet users and already today 15 percent of the mobile handsets used in Bangladesh market are 3G enabled," Bansal said. Bangladesh's mobile sector has grown rapidly, with the number of users reaching around 46 million at the end of March from 200,000 in 2001, compared with only 1.37 million fixed-line phones.

Analysts have predicted that by 2011 the number of mobile subscribers could top 70 million, which is nearly half the country's population.

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