Industry Trend Analysis - CityCell's Re-Entry Will Weigh Down Mobile Market - MAR 2018


BMI View: CityCell ' s re birth as a 4G player does not align with our long-term outlook for a market set to continue wrestling with low margins and declining revenues. Spare 4G s pectrum would be better used by incumbent operators in the future, and the regulator should instead focus on tax reform and regulatory overhaul to improve business conditions.

Inactive 2G operator CityCell is set to purchase vacant 4G frequencies in a bid to return to the market. We are pessimistic of the operator's chances of operating viably again, having already had its spectrum revoked once after failing to pay long-outstanding licensing fees and failed to match its peers in terms of coverage. We believe the regulator should instead allocate unutilised spectrum to other operators in the future, and pursue regulatory reforms to accelerate adoption of 4G and increase profitability in the Bangladesh mobile market in the short term.

Low-Margin, Low-Return Market

Growth To Come, But On Lower Margins
Bangladesh Mobile Market And ARPU Trends
e/f = BMI estimate/forecast. Source: BMI, national sources, operators

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