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Regulation and Investment Bangladesh Case Study

Regulation and Investment Bangladesh Case Study. Harsha de Silva and Abu Saeed Khan. Objective. To assess the relationship, if any, between the TRE and telecom investments in Bangladesh. Structure. Introduction Methodology and data issues TRE Market Entry Access to Resources

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Regulation and Investment Bangladesh Case Study

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  1. Regulation and InvestmentBangladesh Case Study Harsha de Silva and Abu Saeed Khan

  2. Objective • To assess the relationship, if any, between the TRE and telecom investments in Bangladesh.

  3. Structure • Introduction • Methodology and data issues • TRE • Market Entry • Access to Resources • Interconnection • Tariff • Anti-competitive practices • Investments • Conclusions

  4. Introduction: South Asia Source:Private Participation in Infrastructure Database, The World Bank

  5. Introduction: India leads in volume… Source: Calculated from The World Bank database on Private Participation in Infrastructure Projects

  6. Introduction: Sri Lanka higher per capita Source: Calculated from The World Bank database on Private Participation in Infrastructure Projects

  7. Introduction: Bangladesh structure As at July 2004

  8. Methodology and Data Issues

  9. Methodology and Data Issues • Method • Samarajiva et al: Sri Lanka Case • TRE; 5 components • Fit with investment data • No periods, compare with region • Data issues • Availability • Brief study, non scientific data collection • Investment figures not readily available • Quality • Discrepancies; WB database vs. Operators vs. GoB

  10. TRE

  11. Fixed Sector Inconsistent licensing PBTL, Sheba, WorldTel Formula One PSTN licensing [2004] Mobile Sector Inconsistent license fees PHS BTTB mobile TRE: Market entry

  12. Fixed Sector Non-existent spectrum management SMC Bangladesh Railway Mobile Sector BTRC reserving spectrum for BTTB Disparity in spectrum distribution BR TRE: Access to resources

  13. Fixed Sector Interconnection with BTTB Licensing private interconnection operator? Mobile Sector Interconnection with BTTB Mobile-mobile ATOB Tandem $2MM UNDP/ITU switch TRE: Interconnection

  14. Fixed Sector Ministerial interference VoIP [budget IDD] Mobile Sector Regulatory vetting in tariff reduction Non-compliance with BTTB long distance reduction TRE: Tariff regulation

  15. Fixed Sector BTTB interconnection GP + X-Net PGCB Mobile Sector Denying access to budget IDD BTTB: One-way revenue PHS + BTTB Mobile interconnection and tariff GP + X-Net PGCB TRE: Regulation of anti-competitive practices

  16. TRE summary Scale: Poor, Unsatisfactory, Neutral, Satisfactory, Excellent

  17. Investments

  18. Investments: Fixed sector: pattern? 2003 1990-95 1995 -97 1997-2000 Source: AHM Shafiqul Islam, 2004

  19. Investments [lack of]: Reasons • Poor/unsatisfactory TRE • GoB budgetary allocations • Difficult times  low investments • Continuous difficulties • Competing priorities • Unable to “close” deals • External interference • Driven by donor interest

  20. Investments [lack of]: Mobile pattern Sources: External Affairs Director GrameenPhone, Managing Director AKTEL and Finance Director PBTL.

  21. Investments [lack of]: Reasons? • Poor/unsatisfactory TRE • Missed opportunities? • GP • Growing “private network” • More recently AkTel • “Getting ready” for “unfair” BTTB mobile

  22. Conclusions: circumstantial evidence of better TRE  higher investments? Sources: From Operators in Samarajiva et al [2004] for Sri Lanka, Operators for Bangladesh

  23. Bangladesh Case Study Ends. Help in funding, information, time and views are greatefully acknowledged. Harsha de Silva: harsha@lirne.net Abu Saeed Khan:saeed@bol-online.com

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