July 23, 2009

GrameenPhone Posts 10 Percent Growth in Revenue

GrameenPhone posted a 10% increase in revenue triumph to BDT 1,628 crore in the second quarter of 2009 contrast to BDT 1,477 crore in the same quarter of last year. The increase was attributed to a higher number of subscribers, higher average price and increased interconnectivity revenues due to the introduction of an international gateway from the fourth quarter of 2008, which were partly offset by reduced fees on local interconnect calls.

The average revenue per user (ARPU), however, decreased by 1 percent due to lower usage and reduced interconnect fees. The company's cumulative investment now stands at $2.1 billion. GrameenPhone has adjusted its investment in network in line with the current growth in subscriptions and traffic volumes.

GrameenPhone said it added 106,000 subscribers during the second quarter but still saw a slight decline in subscription market share to 45 percent. Following the reduction in local interconnect rates in the previous quarter,
Bangladesh Telecommunication Regulatory Commission (BTRC) lowered the international call termination rate to a minimum $0.03 from $0.04, with effect from 19 May, 2009.

On July 2 the Securities and Exchange Commission (SEC) gave formal approval for GrameenPhone's initial public share offer. When completed the GrameenPhone IPO will be by far the largest ever completed in Bangladesh.

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