Can Raja Learn from Raju?

Improved political stability and a strong regulatory regime in Bangladesh is
attracting ICT investments from India and many other countries. Beyond Bharti
Airtel's $300 mn deal to pick up controlling stakes in Warid Telecom and its
commitment for increasing the investment up to $1 bn, technology vendors and VAS
players are keen to invest in Bangladesh.

There are several reasons for this resurgence in the confidence of telcos.
First of all, the developing country is known for offering regulatory support;
though the recent SIM card tax controversy-which may die down after the
forthcoming Budget-is an exemption.

Secondly, Bangladesh Telecom Minister, Rajiuddin Ahmed Raju works very
closely with the industry honchos. The close association was evident when Bharti
Enterprises chairman, Sunil Mittal met the minister in December 2009, after
deciding to buy stakes in Warid Telecom. Airtel is one player that has the
financial muscle to challenge the numero uno position of Grameenphone.

Thirdly, Bangladesh is quick to review and implement policies. While India is
still struggling with its 3G policy. We are not sure about the deadline for
auctioning spectrum and releasing it, so that the 500 mn plus mobile users can
access speedy Internet. Bangladesh, which will have 70 mn mobile users by 2011,
is all set to conduct 3G spectrum auction in 2010. Though there has already been
some delay, the government will offer four slots by June, 2010. Vodafone, which
does not have any presence in Bangladesh, may be looking at 3G.

Reliance was keen to invest in the Bangladesh WiMax market, which is
currently facing policy and investment hurdles. Nepal consulted Bangladesh after
the latter auctioned BWA spectrum. Nepal telecom regulatory officials did not
consider India in this regard, as we are still in a nascent stage. Hopes of
using WiMax driven high-speed broadband by private telecom players in India may
not materialize in 2010, given the current status.

India believes in cooperation with its neighbors. But we need to learn from
Bangladesh. Our telecom minister can learn from his Bangladeshi counterpart, and
make him a role model. Indian telcos have lost confidence in the system and it
is high time for improving it.

Baburajan K

baburajank@cybermedia.co.in