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Dhaka Tribune

Banglalink profit falls while Grameenphone, Robi up

Update : 03 Jun 2013, 04:57 AM

Of the three leading mobile operators in the country, Banglalink’s profit growth has slowed down.

While Grameenphone and Robi posted their highest quarterly revenue earnings in January-March 2013, Banglalink achieved negative growth.

The revenue of Banglalink, owned by the Egyptian Orascom, fell to Tk9.3bn during the period from Tk10.7bn a year ago.

According to the sources, subscription has dropped after disconnections of highly-value suspected VoIP customers, badly affecting the operator’s revenue income.

It is expected to have a prolonged negative impact on the company’s earnings during 2013.

Robi’s revenue stands at Tk10.8bn with 5% growth and Grameenphone’s revenue rose to Tk23.5bn growing 1.2%.

Grameenphone and Robi officials are mostly satisfied with their performance. But the orange-coloured operator officials declined to make any comment on their profit earning.

According to Banglalink officials, the operator’s 10-second pulse offer for all packages was also one of the reasons behind slowdown in profit making. The 10-second pulse was introduced in September 2012.

Grameenphone’s average minute per user (AMPU) is 246 minutes and Robi has seen 167 minutes increase in AMPU compare to last quarter of 2012. Banglalink’s APMU is only 175 minutes, down from 217 minutes during fourth quarter last year. The Grameenphone AMPU was 230 minutes in last quarter of 2012 and for Robi, it was 144 minutes.

Banglalink’s ARPU is only Tk117, although it is second largest in the number of subscribers, posting 19.3% negative growth. Grameenphone and Robi achieved positive growths with respectively Tk183 and Tk167.

“Operators are fighting with both revenue and quality. That’s why ARPU is declining,” TIM Nurul Kabir, Secretary General of Association of Mobile Telecom Operators of Bangladesh (AMTOB), told the Dhaka Tribune.

He said not only Banglalink but also all top other operators are struggling with some issues, which eventually reflect on their balance sheet.

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