The New Nation - Internet Edition

BUSINESS REPORT

Orascom Telecom Holding (OTH), the holding company of Banglalink recently announced its 2007 financial results. 2007 was a remarkable year for Banglalink.

Banglalink ended the year with almost 71 lakh customers thereby more than doubling its subscriber base that stood at 33 lakh at the end of 2006. Banglalink ended the year with 20.6 per cent market share while also capturing the No.2 position based on the numbers reported by Bangladesh Telecommunication Regulatory Commission (BTRC). This was a remarkable achievement considering the company has been in operation for less than three years.

Banglalink maintained its position as the fastest growing mobile operator in the country. In addition to doubling the subscriber base, Banglalink also more than doubled its revenue compared to the previous year. While revenues of other major operators remained stagnant, Banglalink's revenue rose from Tk 655 crore during 2006 to over Tk 1,340 crore during 2007. Q4 of 2007 saw Banglalink achieving positive EBITDA despite aggressive acquisition that has a high cost associated with it because of the upfront SIM tax. This was achieved with the continuous enhancement and expansion of the network in terms of coverage and quality, product innovation and segmentation, enhancement of customer care services and aggressive brand building strategies.

Banglalink focused heavily on enhancing service quality throughout 2007-these enhancements were done both in terms of network quality and customer service.

There was much emphasis on improving indoor coverage, and wherever necessary, special inbuilding solutions, especially in the case of enterprise customers. Heavy investment of over Tk 2,450 crore was made to ensure the high network quality to its fast growing subscriber base.

Banglalink also rolled out almost 500 Banglalink Service Points nationwide-these customer booths have been set up at the regional level to provide easier access to customer services.

Commenting on the growth potential of the market, Banglalink CEO and Managing Director, Rashid Khan said, 'The market is expected to grow to over 5 crore mobile connections by the end of 2008. We appreciate the support from BTRC that is taking steps to help the industry to realise this potential. We will continue to invest heavily in infrastructure to ensure the best quality service for our customers.'

The country was unfortunately hit by natural calamities including cyclone Sidr and floods during 2007. As part of its Corporate Social Responsibility initiatives, Banglalink took the lead to lend a helping hand.

A series of concerts were arranged under the umbrella of 'banglalink desh music fests" to raise funds for flood and cyclone victims. These events were amongst the most memorable events of the year that offered a unique opportunity to people from all walks of life to contribute towards a noble cause.