Premium Essay

Regulation and Investment: Case Study of Bangladeshregulation and Investment: Case Study of Bangladesh

In: Business and Management

Submitted By ikbaltex
Words 12440
Pages 50
World Dialogue on Regulation for Network Economies

Regulation and Investment: Case study of Bangladesh

Harsha de Silva[1] and Abu Saeed Khan[2]
August 2004

Abstract

The paper considers the available evidence in determining a relationship, if any, in the Telecom Regulatory Environment [TRE] of Bangladesh and investments in to its telecommunications industry over the last decade. TRE is segmented in to market entry, access to scarce resources, interconnection, tariff regulation and regulation of anti-competitive practices while investments are all non-divestiture foreign and domestic private and public investment. The TRE in Bangladesh is found to be wanting in all defined aspects. Interconnection is the worst of the five components, where a mobile only parallel network is being created due to regulatory ineffectiveness where almost ninety percent of mobile users do not have access to a fixed phone.

Investments in to the fixed sector in Bangladesh dominated by the state owned virtual monopoly have been sorely inadequate and continue to be dictated by the funds availability [or lack thereof] of the Government. The mobile sector on the other hand has seen some amount of investments flowing in led by the widely acclaimed GrameenPhone. However, once standardized to compare across the region, it is found, even though using imperfect data to compare, that the reason for this flow could be the rub off of the attractiveness of the region and not necessarily the internal appeal of Bangladesh. In fact, there is circumstantial evidence to suggest that if the TRE in Bangladesh was better than what it is now the country would be able to benefit much more from the regional investment flows in to the sector.

Table of Contents

1. Introduction 03 1.…...

Similar Documents

Premium Essay

Case Study Investment

...Following is a likely solution for Mr.Chintamani. Genarally as a thumb rule 1.exposure to equity and/or M.F. should be (100 minus age)% of investable amount (after expenses if any) 2.Sum assured for insurance should be aproximately 10 times of annual expenses. So in this case the Sum assured should not be less than Rs.20,00,000/- present premiums of term insurance of sum assured 20 lacs. are for a male of 1. 25 years old is around Rs.2500 p.a. 2.35 years old is around Rs.3500 p.a. Making same premium amounts for health insurance would earn a health cover of Rs.2-3lacs. for him. @25 years TOTAL INVESTABLE AMOUNT after insurance expenses (50000-2500-2500)=Rs.45000p.a. investment term (55-25)=30years equity and/or M.F exposure (100-25)=75% Allocating 37.5% into equity and 37.5% into M.F. Equity amount to be invested 37.5%*45000= Rs.16875 Using compound interest formula for equal installments. A=P*({1+r}^n-1)/r r=rate of return. n= number of years. P=annual investment amount. A=total amount at end of "n" years. For equity n=30,r=0.15,P=16875. A=16875*({1+0.15}^30)/0.15 A=Rs.7,33,63,324 ............a * risk factor=16875/50000*100*5=168.75 Similarly for M.F. n-30,r=.12,P=16875. A=Rs.40,72,489................b * risk factor=16875/50000*100*4=135 Now amout that is left out of investable 45000 is 11250. equally allocating 11250 amongst bank f.d and gold means 5625. Gold ...

Words: 580 - Pages: 3

Premium Essay

Investment Case Study

...Formula Sheet for Investment Analysis 1. Buying on Margin. Margin Percentage = (market value of assets purchased minus amount of loan) / (market value of assets purchased) MP = ((shares * price) – loan) / (shares * price) 2. Going Short. Margin Percentage = ((cash from short sale + collateral) – (shares borrowed * market price)) / (shares borrowed * market price) MP = ((shares * price) + T-Bills) – (shares * price)) / (shares borrowed * price) 3. Net Asset Value. NAV = (market value of assets – fund liabilities) / # of shares outstanding. 4. Return on a Mutual Fund. ($1 * (1-load)) * (1+(r-f)) r = return on fund f = fees. load = front-end load for A share; otherwise load = 0. 5. One Risky Asset and One Risk-Free Asset. E(rc) = rf + y * (E(rp) -- rf). σc = y * σp. 6. Optimal y to Maximize Utility. y* = (E(rp) -- rf) / (A σp2) 7. Single-Factor Model statistics. ri = E(ri) + βim + ei , and m and ei are uncorrelated. σi2 = βi2 σm2 + σ2 (ei) . Cov (ri , rj) = βi βj σm2 . Corr (ri , rj) = (βi βj σm2) / (σi σi) . 8. Single-Index Model statistics. Ri (t) = αi + βi RM (t) + ei (t), M and ei are uncorrelated. σi2 = βi2 σM2 + σ2 (ei) . Cov (ri , rj) = βi βj σM2 . Corr (ri , rj) = (βi βj σM2) / (σi σj) . 9. R2 for......

Words: 294 - Pages: 2

Premium Essay

Investment Management Case Study

...Beta Management Company | | |Investment Management case study | Table of contents Backgrounds……………………………………………………….……1 Strategies………………………………………………………………...1 Background of California R.E.I.T and Brown Group Inc……………2 Return and risk…………………………………………………….....…2 Summary………………………………………………………………...4 Appendix………………………………………………………………...5 Background: Beta Management Company is a small investment management company based in a Boston suburb founded in 1988. As the company developed, they had roughly 25 million dollars in the 1991. The goal of the company is to enhance returns but reduce risks for clients via market timing. Currently, the company’s funds were invested into the Vanguard 500, an S&P 500 no-load and low-expense index funds (with the reminder in money market instruments). As time goes by, Sarah Wolfe who is the founder of this company think about increasing her equity exposure to 80% with the purchase of individual stock. Strategies: Firstly, Sarah Wolfe uses a market timing strategy based on two portfolios: the Vanguard Index and money market. In order to obtain the capital gains, once the company predicts the market value will rise, it will transfer its assets from the money market to the Index. The limit will up to a maximum 99% of total assets. On the other hand when the company expects the market value will decrease,......

Words: 1292 - Pages: 6

Free Essay

Regulation and Investment: Case Study of Bangladesh

...World Dialogue on Regulation for Network Economies Regulation and Investment: Case study of Bangladesh Harsha de Silva and Abu Saeed Khan August 2004 Abstract The paper considers the available evidence in determining a relationship, if any, in the Telecom Regulatory Environment [TRE] of Bangladesh and investments in to its telecommunications industry over the last decade. TRE is segmented in to market entry, access to scarce resources, interconnection, tariff regulation and regulation of anti-competitive practices while investments are all non-divestiture foreign and domestic private and public investment. The TRE in Bangladesh is found to be wanting in all defined aspects. Interconnection is the worst of the five components, where a mobile only parallel network is being created due to regulatory ineffectiveness where almost ninety percent of mobile users do not have access to a fixed phone. Investments in to the fixed sector in Bangladesh dominated by the state owned virtual monopoly have been sorely inadequate and continue to be dictated by the funds availability [or lack thereof] of the Government. The mobile sector on the other hand has seen some amount of investments flowing in led by the widely acclaimed GrameenPhone. However, once standardized to compare across the region, it is found, even though using imperfect data to compare, that the reason for this flow could be the rub off of the attractiveness of the region and not......

Words: 1190 - Pages: 5

Premium Essay

A Study on Investment Management Activities of Islami Bank Bangladesh Ltd

...A STUDY ON INVESTMENT MANAGEMENT ACTIVITIES OF ISLAMI BANK BANGLADESH LIMITED PREFACE Bank is a part and parcel of the modern economy of any country. Like any other countries in the world banks play the most crucial role not in the economic but also the social, political environment in Bangladesh. Even it is wise to say that the financial sector of Bangladesh is solely dominated by the banking sector, because the non bank financial sector of Bangladesh is yet to develop to desired level, although it is growing very rapidly. The invention of banking based on Islamic shariah is a relatively new concept in the global banking arena. Now a day the Islamic Shariah based banks are not operating only in the Muslim countries but also in non Muslim countries with the same level of faith and efficiencies parallel to the conventional interest based banks. Even in some cases some of the Islamic Shariah based banks has exceeded their competing traditional banks in terms of service quality and some other key financial indicators. In Bangladesh Muslim constitutes more than 80% of her total population. These people possess strong faith on Allah and they want to lead their lives as per the instructions given in the holy Quran and Sunnah; the way shown by the prophet Hazrat Muhammad (Sm). But no Islamic banking system was developed here up to 1983. The Traditional banking sector was fully based on interest. This is why most of our......

Words: 48877 - Pages: 196

Premium Essay

Investment Case

...Cover Letter To the directors of Eagle’s Nest Re: Proposed Investment of USD$ 75 Million in Business Expansion In accordance with our previous discussion, as promised, attached is our proposal to provide business investment plan for Eagle’s Nest Hotels Inc., prepared by the following staffs: Weng Hong Hoh, Kang Yi, Nicklas Ivarsson and Moneeb Aziz. We would like to take this opportunity to thank for all the guidance throughout this project. This proposal contains plenty of information and ideas that we thought are suitable for the company’s strategy. The preferred option for investment, namely Aurora Resorts in Scandinavia Peninsula, has been offered for the consideration of the board and a detailed plan for implementation has attached. We will be looking forward to discuss the plan after you had reviewed our proposal. As always, please do not hesitate to call us or drop us an email if you have any enquiries or if we can be of further assistance. Thank you for your time and attention. Sincerely, Syndicate Group 1, Tutorial 10 – 11, Tuesday. Table of Contents Description | Pages | 1.0 Executive Summary | 4 | 2.0 Introduction 3.1 Background | 55 | 3.0 Investment Ideas 3.1 Eagle Nest Resorts & Spa in South East Asia 3.2 Aurora Resort in Iceland with spa 3.3 Castle by Eagle Nest with wine yard | 6789 | 4.0 Cost and Benefits 4.1 Cost/Income Statements |......

Words: 2961 - Pages: 12

Premium Essay

Rudy Wong Investment Advisor Case Study

...Kyle Stocker FIN-421 4/7/2014 Rudy Wong: Investment Advisor Rudy Wong, an investment advisor at O’Hagan Securities was in a predicament that caught him in the middle of his clients and the stock market crash of September 2008. In the United States, the Dow Jones Industrial Average had stooped to its lowest level as well as the Toronto Stock Exchange since 2003. This financial crisis led four of Wong’s clients to request urgent meetings regarding their assets and investments. All four were of different gender, age and particular needs which left Wong concerned that they all hold a risk of losing everything. He had to decide the best way to reassure all of his clients by communicating logical arguments based on their portfolios and his expertise, managing their emotions and attempting to re-establish their faith in the market despite its current situation. Wong knew that the outcome of his decisions had a great impact on his professional credibility and the interests of his clients who entrusted their life savings to Wong and O’Hagan Securities. As an investment advisor, it is Wong’s duty to help clients to optimize the allocation of their financial assets that meet the client’s particular needs. He does so by taking into account each clients financial resources and constraints as well as their short and long term goals. They are considered all purpose financial counselors who show the client how they can save money on mortgage payments, their child’s college fund, the...

Words: 1675 - Pages: 7

Premium Essay

Investment Case

...Investment Ideas: Expansion of some of the four star hotels in the USA: For this investment idea, an assessment of the four star hotels located in the USA will be carried out. The four star hotels that would have available real estate that can accommodate expansion of the buildings will be considered for this investment. This additional space will be used to build additional facilities such as casinos and hotel-clubs for night life entertainment. Customers will be given membership discount cards for regular use of the hotels. Complementary rooms will be made available to those customers that frequent the use of the casinos, Their casino usage will be monitored by an electronic card, which would be personalised to each customer. Permits, approvals and the necessary licenses for the necessary renovations and modifications to the hotels would have to be sought. The hiring of a reputable architect and contractor that can meet deadlines and work within a specified budget would also be required. To complete this part of the project, an estimated 50 weeks is required. Additionally, all the rooms in the four star hotels will be retrofitted with holographic technology, which will be controlled at a central location. The concept is to offer the customers a customised room that will meet all their desires or fantasises. Examples of this will include converting the room via appropriate software to conform to the environment of any country or to create a scenario that will safely......

Words: 1626 - Pages: 7

Premium Essay

Investments - Dfa Case Study

...Introduction Dimensional Fund Advisors, further referred to as DFA, is an investment company that bases its strategy mainly on academic research and related theories. They work together with proponents of the efficient market hypothesis, indicating a relatively strong belief in this theory and thus in efficient markets. However DFA also feels that skilled traders have the ability to contribute to a fund’s profits even when the investment is inherently passive and DFA does adjusts its strategy to new findings in the field. In this report we will evaluate the relevance and accuracy of the theories used by DFA, especially the value premium and the size premium where almost all of their funds are based upon. This will lead to comments on the usefulness of these theories to increase the return of DFA’s funds and to recommendations about changes in strategy that will enhance the performance of DFA overall. Performance and strategy so far DFA has performed relatively well over the years, aside from some relatively rough patches in the late 1990s. Growth of the company had been stable and profits high. There was no need to sell shares for liquidity reasons and shares were only sold if they did not fit into a fund anymore. This didn’t happen very often though as DFA had several funds that were “connected”, when a stock in the Micro Cap portfolio grew too big it could be placed into a fund with bigger companies (Small Cap portfolio). An important part of DFA’s strategy,...

Words: 399 - Pages: 2

Premium Essay

Case Study for Investments

...An investor’s portfolio is simply their collection of investment assets. Once the portfolio is established, it is updated by selling existing securities using the proceeds to buy new securities, by investing additional funds to increase the overall size of the portfolio, or by selling securities to decrease the size of the portfolio. Investment assets can be categorized into broad asset classes, such as stocks, bonds, real estate, commodities, and so on. Investors make two types of decisions in constructing their portfolios. The asset allocation decision is the choice among these broad asset classes, while security selection decision is the choice of which particular securities to hold within each asset class. You may choose to invest your savings in safe assets, risky assets or a combination of both. It is important to invest in order to be able to retire in the distant future. The earlier you start investing and the more you invest the more money you will have to be able to retire. Since social security is not a guarantee for many of us in the future, it is now more important than ever to invest and to know how and where to invest your money. There are many of other ways to invest money other than common stock. Since this is the only type Judd knows of, the investment class would be a very good choice for him. Another way to invest your money is bonds. A bond is a security issued by a borrower that obligates the issuer to make specified payment to the holder......

Words: 446 - Pages: 2

Free Essay

Bangladesh 2004 Case Study

...Case study - Bangladesh flooding 2004 Bangladesh is a low lying country most of which lies on the delta of Ganges, Brahmaputra and Meghan. Why the flood risk? Physical factors: Sources of rivers are in Himalayas so snowmelt adds to the discharge during spring S Asia has a monsoon climate and experiences a wet season between May and September when low pressure and winds blowing from SW across Bay of Bengal bring heavy rain to coastal regions. Bangladesh also suffers from cyclones that bring high winds, heavy rainfall and storm surges. Human Factors: Urbanisation - the capital city Dhaka now has a population of more than 1 million people Rapid deforestation in Himalayas has had a negative effect on rates of interception and evapotranspiration resulting in more water reaching the rivers. River management is difficult to implement in LEDCs. Average GDP per capita is around $300. Population rely on subsistence agriculture to survive growing rice on rented plots of land so there is little income from taxation for Government and Bangladesh relies heavily on foreign aid to finance large scale development project which might help prevent floods. In 2004 the monsoon season brought more rainfall than usual. Impacts Social impacts: 36 million people were made homeless By mid September the death toll had risen to 800. People died as a result of disease because they had no access to clean water. Landless labourers and small farmers were the most severely affected in...

Words: 557 - Pages: 3

Premium Essay

Business Regulation Case Study #2

...Unit 3 Research Paper # 1 Business Law Outline Thesis--Government Regulation is needed in the U.S. to keep scandals from ruining our businesses livelihood and the financial futures of all Americans. Introduction Many acts have been created because of controversy and scandals that have and continue to happen in the U.S. These acts were introduced to prevent individuals and businesses from losing everything and to help the government to keep individuals and businesses safe from scams. Without these regulations there would be no standards and companies and corporations could do as they please. They also help to monitor the accounting of companies, keep the scandals at a minimum, and watch for trends so we don’t have another stock market crash. Too many people have lost everything when these types of disasters strike. Securities Acts of 1933 and 1934 The Securities Act of 1933 was enacted as a result of the stock market crash of 1929. It was the first major piece of federal legislation to apply to the sale of securities. The legislation was enacted as the need for more information within and about the securities markets was acknowledged. The 1933 Act was based on the idea that companies offering securities should provide potential investors with sufficient information about both the issuer and the securities to make an informed investment decision. The Securities Act of 1934 established the Securities and Exchange Commission (SEC). The 1934 Act also......

Words: 3671 - Pages: 15

Premium Essay

Case Study: Investment Analysis and Lockheed Tri Star

...Case study: Investment Analysis and Lockheed Tri Star MGMTS-2700 Professor Hamza Abdurezak Harvard University Yang Zhon 1> A. Payback, NPV, IRR, Should purchase or not? Payback: $35,000/5000=7 year NPV: =Co+ C1…..n/(1+i)^1….n Co=-3,5000 CF1-CF15= 5,000; I= 12 Computing result is $-945.67 IRR: 11.49% NPV is negative and IRR is lower 12% so reject the proposal. B. NPV: =Co+ C1…..n/(1+i)^1….n NPV= -35000+(4500/.12) =2500 NPV is positive so should purchase the machine. C. NPV: =Co+ C1…..n/(1+i)^1….n = -35,000(4000/(0.12-0.04)) =-35,000+50,000 =15,000 NPV is positive so rainbow should reinvest the cost saving into the machine annually. 2. Cash Flow: Investment Y1 Y2 Y3 IRR NPV@15% 1. -75k44k44k44k34.63% 25,461.91 2. -50k23k23k23k18.01% 2,514.18 3. -125k70k70k 70k 31.21%34,825.76 4. - 1k12k13k14k1207.06%28,469.88 5. -125k67k67k 67k28.10% 27,976.08 1,Using IRR I recommend the (4) 2, Using NPV I recommend the proposal (3) 3,NPV is better! The NPV method is better because it shows the most cash flow as the highest. Because the discount rate is 15%, it is building a new both is prioritized higher. 4. 1, NPV=PV-Investment =210k-110k=100k 2. Assuming issue N shares when price is P. N*P=110,000(1) P=1,210,000/(10,000+N) (2) Then computing the result So N=1000 P=$110 3, Stock price rises up $10 Stock holder make the profit. Out cash flow in cash flownet cash......

Words: 341 - Pages: 2

Free Essay

Problem of Performance Appraisal in Bangladesh-a Case Study

..."Jonaki Samiti" and became a memeber of that samity. After accomplishing all the regulations together with general savings she got her first loan installment of Taka 7000. She invested the money in vegetable cultivation. Subsequently she was able to sell some amount of vegetable per week after meeting her own family demand which helped her husband with additional income. In the intervening time she was able to save Taka 3000 along with the ragular savings of samiti and gradually she repaid the loan. After the repayment of first loan amount she applied again for an amount of Taka 20,000. Considering her financial condition and determination "Jonaki Samiti" sanctioned the loan. Inspired by this, Rabeya started a large scale plantation of betel-leaf and this time she involved her husband into her work. Thier conscientious and diligent effort finally resulted into a teeming betel-leaf plantation. At present they sell betel-leaves of an amount of Taka 2500-3000 per week. After deducting all sort of costs they redeem a profit of Taka 1500 per week. Rabeya is now confident and feels secured about their future. They have a future plan to own a land where they can build a large scale betel-leaf plantation. Confident Nurul Huda expands his business Mr. Nurul Huda is a small seasoned fish entrepreneur who lives in Kutubdia, Cox's Bazar. He started his business with his very little personal investment. Initially he used to buy fresh fishes from the local market and then he......

Words: 23669 - Pages: 95

Premium Essay

Week 5 Case Study: Investment Potential in the Healthcare

...Week 5 Case Study HSM 544 Healthcare Industry The American health care industry is one of the nation's largest and most profitable industries (Healthcare, 2011). The American healthcare industry "has consistently increased its share of GDP from only 7.2% in 1970 to more than 16.0% in 2008" and that figure is still growing (Van Horn, 2010). It is also one of the few American industries that is expected to grow in the next few decades. In fact, the healthcare industry in America is expected to generate 3.2 million new jobs through the year 2018, which is more than any other American industry (Healthcare, 2011). This industry includes everything "from small-town private practices of physicians who employ only one medical assistant to busy inner-city hospitals that provide thousands of diverse jobs" (Healthcare, 2011). It includes things such as doctors' offices, phlebotomy laboratories, research laboratories, outpatient care centers, nursing homes, residential care facilities, clinics of all sizes, and large hospitals (Healthcare, 2011). It is not only a large industry, but a very broad one with many potential investment opportunities and many potential risks. Government and Healthcare The role of government in the healthcare industry is a topic that leads to very active and divisive debate. People are either of greater government involvement or deeply opposed to any government involvement. Currently, healthcare remains an industry with a high degree of regulation, in terms...

Words: 1159 - Pages: 5