Telecommunication Sector of Bangladesh

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New Media and Mass Communication ISSN 2224-3267 (Paper) ISSN 2224-3275 (Online) Vol 4, 2012

www.iiste.org

Problems and Prospects of Telecommunication Sector of Bangladesh: A Critical Review Ms. Farhana Zamil1, Md. Miraj Hossen2 1. Senior Lecturer, Department of Business Administration, IBAIS University, Dhanmondi, Dhaka – 1205, E-mail: shaplafz@yahoo.com, Website: www.ibais.edu 2. Lecturer, Department of Accounting and Information Systems, Faculty of Business Studies, Jagannath University, Dhaka - 1100, Bangladesh, Website: www.jnu.ac.bd * E-mail of the corresponding author: miraj_hossen@yahoo.com Abstract: Communication is an integral part of human life. From the very beginning of human civilization people were tried to communicate each others to fulfill their social needs. Over the passes of time though the tools of communication were changed but still it is exist in the society. Currently cellular phone has brought a revolution in the field of communication. Telecommunication makes the whole world in a small village and by using this service life become more comfortable and easier. This sector plays a vital role in the economy of Bangladesh occupying the top positions among others. But recently this sector faces some crisis related to governmental SIM tax, corporate tax and also the competition in the market. For these reasons, last few years both governmental revenue as well as the growth rate of subscribers is decreasing. If the Government take necessary steps beside the privatization, the sector could move forward quickly, which will also help Government to generate the revenues and create job opportunity.Keeping all these issues in consideration, this paper discusses the present condition of the telecommunication sector of Bangladesh (which give special emphasis on the cellular phone) , what are the major challenges faces by the operators, and also tries to find out the prospects of this sector. It also provides a set of recommendations based on this analysis. The study is explanatory in nature which is based on extensive literature review and secondary data sources. Keywords: Communication, Telecommunication, Cellular phone, Privatization, Civilization. 1.0 Introduction: Telecommunication is the science of communicating information over distance by electronic transmission of impulses, as by telephone, telegraph, television, satellites, and radio. Another way, it can be said, telecommunication is any process or group of processes that allows the transmission of audible or visible information or data over long distance by means of electronic or electric signals. But in our study, by Telecommunication we want to mean only the service of both private and Government mobile phone or cellular phone in Bangladesh. We totally separated cellular phone from other telecom services like telephone (land phone), telegraph, television, radio and others to make our selected sector more specific and understandable. Once upon a time a “Telephone” was a symbol of status. It was quite difficult and lengthy process to have a telephone connection at home. Think about the time of emergency when someone needs to talk in abroad! There was so harassment in getting line, line was not clear, distance call rate was so high that sometimes poor people could not avail it easily. But now the situation is totally changed. Now-a-days technology is available in the hand of root level people. A drastically change has come in the life style of people. Life is very easy now. Employment opportunity has been increased. Government has also been benefited by the revenue from this sector. Information technology has got acceleration by mobile phone technology. New and modern technology is coming in the near future. These rapid changes have been possible only for the mobile company. A research institution in India reveals that if using of mobile phone increase by 10% in a developing country, government revenue increase by 1.12 % in a year. This sector is...
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