The New Nation - Internet Edition

Russian companies are gaining a foothold in the Bangladesh mobile market with Sistema, the holding company of the Russian mobile operator OAO Mobile TeleSystems, negotiating with the Bangladesh government to buy the country's smallest cellular operator (in terms of subscribers) the state-run TeleTalk Bangladesh.

A spokesperson at the Ministry of Posts and Telecommunications says, "Sistema is negotiating with the government for the acquisition of mobile network Teletalk, which has been roughly valued at US$300-500 million."

In another statement, Kirill Semenov, Head of the international press office at AFK Sistema says, "It is true. We are interested in the Bangladeshi market, especially in its mobile phone sector. The mode of entry to that market is under discussion as well. We will continue to work on our plans to get into Bangladesh."

He adds, "There is a negotiating process going on and Sistema has already signed a memorandum of understanding with the Bangladeshi authorities."

That's as may be but, the Teletalk services in Bangladesh are in a mess.

Indeed the system and network has deteriorated to such an extent in recent months that many Teletalk complain of the practical impossibility of getting any connectivity at all, never mind actually being able to make a mobile phone call. As a result, many subscribers have been giving up on the carrier and abandoning their pay-as-you-go SIM cards.

According to the Bangladesh Telecommunication and Regulatory Commission, TeleTalk had 1.07 million subscribers as of June this year but that number is in massive decline. Sistema will have to rebuild both the network and customer confidence if it is to have any impact in the Bangladesh market.