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The Economic and Social Benefits of Mobile Services in Bangladesh

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The Economic and Social Benefits of Mobile Services in Bangladesh
A case study for the GSM Association

Barney Lane Susan Sweet David Lewin Josie Sephton Ioanna Petini

April 2006

LEGAL NOTICE: Neither the GSM Association nor their Members or Associate Members are responsible for the use that might be made of this publication. The views expressed in this publication are the sole responsibility of the author(s) and do not necessarily reflect the views of the GSM Association, their Members or Associate Members

The Economic and Social Benefits of Mobile Services in Bangladesh

1 Executive Summary
The GSM Association commissioned Ovum to conduct a study into the economic and social benefits of mobile services in Bangladesh. We were asked to examine whether there were any policy barriers that may prevent the full extent of any benefits of mobile services from being realised. In the event that policy and legislative barriers were found, we were asked to identify recommendations for change. In recent years, the mobile industry in Bangladesh has developed at an extraordinary rate. Today there are approximately ten million mobile customers and coverage extends to 90% of the population. With a population of 44 million (2005 figures), Bangladesh is the seventh most populous country in the world. Our key findings from the study are as follows:
• • • • • • • • Almost a quarter of a million Bangladeshi depend on the mobile industry, directly and indirectly. Mobile services contribute US$650 million to the economy every year. Mobile services are good value for money when compared with other countries. Mobile communications allow businesses to operate with greater efficiency. For every additional 0 percentage points of mobile penetration, the annual GDP growth rate is increased by approximately 0.6%. Higher mobile penetration will assist Foreign Direct Investment...

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