Fdi Situation of Telecommunication Sector in Bangladdesh

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Current DFI situation of Telecommunication Sector in Bangladesh
The almost remarkable growth in the Telecoms sector in Bangladesh in the last 5-10 years has had the same transformative impact on Bangladesh's economy as the growth of Ready Made Garments and Remittances. As well as being the largest contributor to Foreign Direct Investment and tax revenues, the effect of rapid mobile entrance on increasing the quality of life of ten millions people has been significant.
As of September 2010, the BTRC has reported that there are 65.14 million mobile subscribers in Bangladesh and the competition in this sector is increasing rapidly.
Many foreign investors are now interested to do business in telecom sector in Bangladesh which reveals that Bangladesh has become a significant hub for telecoms. It has been forecasted that the average revenue from telecoms sector will be Tk1500crore a year. Bangladesh is a country which is densely populated and also is a flat and easily extends able coverage. The infrastructure and Tele-density is low which on the other hand made the market a perfect place for telecom business.
According to the World Investment Report (WIR), increased reinvestment and intra-company loans offered by existing foreign companies, including those in telecom, energy and financial sectors helped boost the FDI flow to Bangladesh in 2011. Bangladesh secured 15th position in the WIR ranking in 2010 with the country receiving $ 910.33 million, while the ranking was 24th in 2008. The report said the annual growth in FDI was 24.42 percent, which was just higher than the 23 percent worldwide growth, on an average, in 2011.
It was the second time the country's foreign direct investment crossed the $1.0 billion mark and it was possible due to different policy supports provided by the present government. The FDI flow would increase further if the government followed a more stable tax policy. According to the report, the garment sector attracted the highest $271

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