How Starlink's arrival in Bangladesh may affect telecom market
The highly anticipated collaboration of Elon Musk's Starlink, an international telecommunications provider which may soon be available in Bangladesh through Banglalink, has consumers wondering about the service's impact on the country's telecom market.
Dubai-based telecommunications company Veon Ltd is currently in talks with the company to expand its partnership for satellite-powered cellular services to new markets, with Banglalink to provide the service in the country.
A Banglalink official confirmed it would provide the service if the partnership between Veon and Starlink is sealed. Veon is the owner of Banglalink, the country's third-largest mobile operator.
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The Business Standard reached out to TIM Nurul Kabir, a renowned telecom sector analyst, who shared his insights on the matter.
How do you see the arrival of Starlink in Bangladesh?
TIM Nurul Kabir: Such collaborations are taking place all over the world in the technology field, especially in telecommunications. We can see these collaborations in various countries in different ways. Through these collaborations, market proliferation as in, market expansion, providing new service and such are brought about. I hope such a collaboration coming into the sphere of Bangladesh's market will bring a lot of momentum to the country. Though, I do not have a full idea of what the collaboration issues are, how they are collaborating and what the terms and conditions are or how they are actually going about this collaboration.
Generally speaking, there are regulatory licences. If a company does approach a collaboration, the regulator must be informed. The company is obliged to avail permission from the regulator. Mulling over these issues, given our Bangladesh is a complex place on the regulation side, I think if this particular collaboration can be viewed positively as it will create some significant value in the Bangladesh economy.
Will Starlink result in decreased call/internet rates?
TIM Nurul Kabir: Bangladesh's telecom service is highly regulated. All aspects of it and the pricing is done under a limit. For pricings, approval comes from the regulator and the ministry concerned. Normally, as per Bangladesh's existing regulation, this must go through the current process. If the pricing were to have any impact, an approval must be sought or adopted through the process in the existing framework.
Will Starlink result in improved services?
TIM Nurul Kabir: I am not yet aware of their components of collaboration. If I had been in the know, I could have explained it better, which areas they're collaborating and what aspects the regulator has given its approval. However, this is not new as these collaborations are happening worldwide and have happened in Bangladesh before. If such a move brings something new for the country and its consumers, that would be very much welcome.
Will it give Banglalink the edge over its competitors?
TIM Nurul Kabir: That is subjective. Because, it's all an 'if and but'. What their business model will be, what kind of services they're bringing in, it's too early to comment on that unless the details are made known or clear.
It is a perception that as an internationally-famed company comes into Bangladesh and collaborates, services may become better. It's all about perception and what we are expecting. But we have to wait to see how it will be realised at the ground level for implementation.
Banglalink to provide Starlink service in Bangladesh if partnership with VEON sealed
Veon wants to offer space-based connectivity in areas where the terrestrial network doesn't reach customers in Pakistan, Bangladesh, Kazakhstan and Uzbekistan, Chief Executive Officer Kaan Terzioglu said in an interview at the World Economic Forum in Davos.
"It's not only about the war situation. Terrestrial networks have their limits," Terzioglu said. "During times of floods or energy deficiencies, which our markets are exposed to, we truly believe that markets need both space-based and terrestrial network coverage," he said.
Kyivstar PJSC, Veon's Ukraine's subsidiary and the country's largest mobile operator, signed a deal last month with Starlink to provide the service, Bloomberg reports.
It expects to offer satellite-to-cell text messages in the fourth quarter, followed by voice and data at later stages, the report adds.
Starlink is one of a handful of companies trying to use satellites to provide connectivity to consumer smartphones, but the service is not widely available commercially.
Any deals would require spectrum allocation, which can be expensive and is not always available, Terzioglu said.
Veon's growth strategy is to offer under-served markets telecom access and then expand into segments such as financial services and entertainment.
Vietnam, Ethiopia and Mexico are the types of market Veon is interested in, according to Terzioglu. "We are continuously looking for under-performing assets in these countries," he said.
