CEO Chris Tobit calls for tax breaks for handset imports
Mobile operator Airtel Bangladesh will invest up to $50 million in the next three years to roll out its 3G network, its Chief Executive Officer Chris Tobit said yesterday.
The operator has recently signed an agreement with Chinese telecom vendor Huawei to install 3G equipment.
Tobit said the company has already invested $125 million for 3G spectrum purchase and to pay other relevant charges including VAT.
The company has purchased 5 megahertz of spectrum in an auction on September 8 to launch 3G services.
Tobit said Airtel has already covered 80 percent population and around 75 percent area of the country “with a solid foundation for its voice network” in the last two years.
The operator, which has around 85 lakh subscribers, plans to launch the 3G services in Dhaka and some areas of Chittagong by October, and cover all the divisional cities by January next year.
He said, “3G is not just the access to mobile broadband, it has a cascading role in the economy through e-health, e-agriculture, e-education and employment.”
However, Tobit said the 3G services will benefit people only when smartphones or 3G-ready handsets will be widely available.
He urged the government to offer tax breaks for the next three to five years for imports of 3G devices such as handsets or modems so that the services can be rolled out fast.
At the same time, he also called for bringing down the import duty on 3G network equipment.
Currently around 7-8 percent of their users have 3G handsets, but the number will rise to at least 12 percent once the services are launched, Tobit said.
It is possible to reduce the prices of 3G handsets to Tk 1,000 or Tk 2,000 if the customs duties are cut, he said.
Airtel has developed 3G network in around 15 countries, including India, Sri Lanka and some African countries.
Source: The Daily Star
