Impact of Mobile Phone

The Socio-economic Impact of Mobile Phone Services on Rural
People in Bangladesh
Md. Afzal Jamil
Economics Discipline
Social Science School
Khulna University
Khulna, Bangladesh
April, 2008
A Thesis by
Md. Afzal Jamil
Student No.: 031522
Session: 2005-2006
Supervised by
………………………………
(Md. Rezaul Karim, Ph.D)
Sociology Discipline
Khulna University, Khulna, Bangladesh
&
………………………………
(Mr. Sk. Sharafat Hossen)
Lecturer, Economics Discipline
Khulna University, Khulna, Bangladesh
The thesis submitted to the Economics Discipline of Social Science School, Khulna University in
partial fulfillment of the requirements for the Degree of
Bachelor of Social Science (Hons.) in Economics
April, 2008
Approved as to Style and Content

By
……………………………………………..
Khan Md. Azizur Rahman
Head
Khulna University
Khulna, Bangladesh
STATEMENT OF ORIGINALITY
The findings of this thesis are entirely of the candidate’s own research and any part of the results
has neither been accepted for any degree nor it is being concurrently submitted for any degree.
………………………………
(Md. Afzal Jamil)
Student No.: 031522
Session: 2005-2006
Acknowledgement
Alhamdulillah! All praise be to Allah (SWT) for His infinite mercy in preparing this
paper and in asking His forgiveness for any error of judgment. Without His
compassion, this research work would not have been possible. I have received
intellectually stimulating ideas from number of distinguished personalities and related
organizations. Behind the successful establishment of any venture there always exists
the invisible cooperation of some persons. Professor Md. Rezaul Karim Ph.D, Head
Economics Discipline and Sk. Sharafat Hossen, Lecturer Economics Discipline of
Khulna University are such persons without whose cordial guidance and systematic
supervision it is beyond my ability to shape this dissertation paper into a good one.
I would like to express my heartily thanks to all teachers of Economics Discipline for
their extensive and compendious lectures on mobile phone related issues different
times.
I am grateful to my thesis mates as well as class mates who assists me during data
collection and putting them into softwares.
Finally, my special appreciation goes to all the respondents and people of nine
upazilas for their cordial help and friendly participation by responding to the queries,
and interviews during the time of survey, that enable me to analyze and synthesize all
the ideas into a report form.
If this small effort succeeds in generating both scholarly and practical interest in the
seminal role of mobile phone in the walks of life, I will consider my labour amply
rewarded.
May Allah (SWT) accept my work for His sake alone.
April, 2008
Md. Afzal Jamil


i
Abstract
The study reveals the socio-economic impact of mobile phone services on rural
people in Bangladesh. This study reached its various findings from the view point of
rural areas under some upazilas of the country. 300 sample were chosen randomly of
which 180 were subscriber and 120 were trader and they were asked about their
various social and economic aspects relating to mobile phone usage. Primary,
secondary and personal subtle observation has been used as a source of data
collection. Most of the users derive better benefits from mobile phone although it
incorporates some harmful aspects. This paper explores services of mobile phone
companies in Bangladesh and shows its economic and social impacts on rural people.
From economic perspective, mobile phone reduces communication cost with different
regions and it increases social cohesion among people in the rural area as well. Before
a year ago response to the business relating to mobile phone was higher which is
substantially reducing now-a-days. In the rural areas the popularity of Banglalink is
enough because this operator pays more assiduousness to the expectation of its valued
subscriber. In rural area, most of the subscribers are not aware about the internet
facility. However, amongst them a great portion use it for entertainment purpose. As a
part of corporate social responsibility (CSR) all the operators are now involved in
social welfare activities. Apart from major benefits, misuse from the juveniles and
terrorists are also of great concern. Contributing to the domestic economy, the mobile
phone operators bring the opportunity of employment for rural people having a
substantial share to the GDP.
Keywords: mobile phone service, socio-economic impacts, rural areas

ii
Contents
Title Page No.
Acknowledgement i
Abstract ii
Contents iii
List of tables vi
List of figures vii
List of map vii
Acronyms and abbreviations viii
Chapter one: Introduction 1-6

1.1 Background of the study 1
1.2 Rationale of the study 2
1.3 Objectives of the study 3
1.4 Scope of the study 3
1.5 Limitations of the study 3
1.6 Operational definitions 4
1.6.1 Mobile phone 4
1.6.2 Land phone 4
1.6.3 Digital divide 4
1.6.4 GSM 5
1.6.5 ERS 5
1.6.6 Upazila 5
1.7 Organization of the study 6
Chapter two: Methodology 7-10

2.1 Research design 7
2.2 Sampling technique and sample size selection 7
2.3 Data collection 8
2.3.1 Primary data 8
2.3.2 Secondary data 9
2.4 Data processing, analysis and presentation 9
2.5 Steps of the study 10
Chapter 3: Mobile phone services in Bangladesh 11-20

3.1 General 11
3.2 Mobile phone operators: History of inception 11
3.3 Subscriber base of telecom operators in Bangladesh 13
3.4 Tariff plan of telecom operators: Past and present 14
3.5 Mobile phone operators in rural area 16
3.6 Mobile phone benefits national economy 17
3.6.1 Contribution to government revenue 18
3.6.2 Contribution towards economy 18
3.6.3 Contribution towards employment 19
Chapter 4: Profile of the study area 21-29

4.1 Study area: Demographic, economic and communication features 21
4.1.1 Batiaghata Upazila 21
4.1.2 Dumuria Upazila 22

iii
4.1.3 Terokhada Upazila 22
4.1.4 Rupsa Upazila 23
4.1.5 Rampal Upazila 24
4.1.6 Alamdanga upazila 25
4.1.7 Wazirpur Upazila 25
4.1.8 Kaligonj Upazila 26
4.1.9 Gazipur Sadar Upazila 27
4.2 Quick look of the study area 29
Chapter 5: Socio-economic status of general subscriber 30-39

5.1 Socio-demographic features of general subscriber 30
5.1.1 Age structure 30
5.1.2 Sex distribution 30
5.1.3 Distribution of sex according to age group 31
5.1.4 Family size 31
5.1.5 Educational status 32
5.1.6 Previous communication type 32
5.2 Economic features of general subscriber 32
5.2.1 Professional status 33
5.2.2 Household expenditure pattern 33
5.2.3 Savings pattern 34
5.2.4 Income pattern 34
5.3 Subscribers status related to mobile phone service 35
5.3.1 Preferred telecom operator of general subscriber 35
5.3.2 Reason for choosing particular operator 36
5.3.3 Reason for not changing operator 37
5.3.4 Subscribers awareness about internet service 37
5.3.5 Subscribers purpose of internet use 38
5.3.6 Subscribers handset usage status 39
Chapter 6: Socio-economic status of trader 40-51

6.1 Socio-demographic features of trader 40
6.1.1 Age structure 40
6.1.2 Sex distribution 40
6.1.3 Family size 41
6.1.4 Educational status 41
6.2 Economic features of trader 42
6.2.1 Business type 42
6.2.2 Household expenditure pattern 43
6.2.3 Savings pattern 43
6.2.4 Income pattern 44
6.2.5 Investment pattern 45
6.2.6 Profit pattern 45
6.3 Business outlay and revenue earnings 46
6.3.1 Heads of expenditure 46
6.3.1.1 Rent of the shop 46
6.3.1.2 Salary of the employee 47
6.3.1.3 Utility expenses 47

iv
6.3.2 Revenue earnings 4
6.3.2.1 Revenue from ERS 48
6.3.2.2 Revenue from M2M 49
6.3.2.3 Revenue from selling handset 49
6.3.2.4 Revenue from selling mobile phone accessories 50
6.3.2.5 Reinvestment pattern of trader 50
Chapter 7: Impact analysis of mobile phone service on rural people 52-63

7.1 Impact of mobile phone: General subscriber perspective 52
7.1.1 Positive economic impact 52
7.1.1.1 Mobile phone reduces communication cost 52
7.1.1.2 Mobile phone benefits businessman 53
7.1.1.3 Mobile phone improves product marketing 54
7.1.2 Positive social impact 55
7.1.2.1 Mobile phone increases social cohesion 56
7.1.2.2 Mobile phone helps user with low education and literacy to be connected 57
7.1.2.3 Mobile phone service in natural disaster 57
7.1.2.4 Mobile phone promotes social responsibility 58
7.1.3 Negative economic impact 68
7.1.3.1 Young generation wastes their valuable money 59
7.1.3.2 Young generation wastes their productive time 59
7.1.4 Negative social impact 60
7.1.4.1 Mobile phone creates problem among family members 60
7.2 Impact of mobile phone: Trader subscriber perspective 61
7.2.1 Negative economic impact 61
7.3 Physical problems using mobile phone 61
Chapter 8: Summary of findings 64-65
Chapter 9: Recommendations and Conclusion 66-68

9.1 Recommendations 66
9.2 Conclusion 68
References ix-x
Appendices xi-xix
Appendix I xi
Appendix II xiv
Appendix III xvi

v
List of Tables
Table ID Title of Tables Page No.

Table 3.1 Distribution of subscriber base of mobile phone operators in Bangladesh 13
Table 3.2 Distribution of world's Top 10 emerging mobile growth markets 14
Table 3.3 Validity of prepaid scratch card 15
Table 3.4 Present tariff plan of telecom operators 16
Table 3.5 Fixed and mobile teledensity in Bangladesh 17
Table 3.6 Source of revenue from mobile phone industry 18
Table 3.7 Inbound revenue to government exchequer 19
Table 3.8 Employment creation statistics by mobile phone industry as up to 2005 20
Table 5.1 Age distribution of general subscriber 30
Table 5.2 Sex distribution of general subscriber 30
Table 5.3 Sex distribution according to age group 31
Table 5.4 Family member distribution of general subscriber 31
Table 5.5 Distribution of educational status of general subscriber 32
Table 5.6 Distribution of previous communication type 32
Table 5.7 Professional distribution of general subscriber 33
Table 5.8 Household expenditure pattern of general subscriber 33
Table 5.9 Distribution of savings pattern of general subscriber 34
Table 6.1 Age distribution of trader 40
Table 6.2 Sex distribution of trader 41
Table 6.3 Family member distribution of trader 41
Table 6.4 Distribution of educational status of trader 42
Table 6.5 Household expenditure pattern of trader 43
Table 6.6 Distribution of savings of the trader 44
Table 6.7 Distribution of investment pattern of trader 45
Table 6.8 Distribution of monthly rent of the shop 47
Table 6.9 Distribution of monthly salary of employee 47
Table 6.10 Distribution of utility expenditure of the trader 48
Table 6.11 Distribution of earnings from ERS 48
Table 6.12 Distribution of earnings from M2M 49
Table 6.13 Distribution of revenue from selling handset 50
Table 6.14 Distribution of revenue from selling mobile phone accessories 50
Table 6.15 Distribution of reinvestment pattern of trader 51

vi
List of Figures
Figure ID Title of Figures Page No.

Fig 5.1 General subscribers preferred telecom operator 36
Fig 5.2 Subscribers reason to choose preferred telecom operator 36
Fig 5.3 Subscribers reason behind not changing operator 37
Fig 5.4 Subscribers awareness about internet service 38
Fig 5.5 Subscribers purpose of internet use 38
Fig 5.6 Handset usage status in the study area 39
Fig 5.7 Subscribers reason to use specific handset 39
Fig 6.1 Business type of trader 43
Fig 6.2 Profit of traders 46
Fig 7.1 Transport cost of subscriber before mobile phone use with relatives 52
Fig 7.2 Transport cost of subscriber after mobile phone use with relatives 53
Fig 7.3 Transport cost of subscriber before mobile phone use with trade partner 53
Fig 7.4 Transport cost of subscriber after mobile phone use with trade partner 54
Fig 7.5 Transport cost for product marketing before mobile phone use 55
Fig 7.6 Transport cost for product marketing after mobile phone use 55
Fig 7.7 Mobile phone increases social cohesion 56
Fig 7.8 Mobile phone increases social status 56
Fig 7.9 Mobile phone causes wastage of money by young generation 59
Fig 7.10 Mobile phone causes wastage of time by young generation 60
Fig 7.11 Mobile phone creates family problem 60
Fig 7.12 Traders response to this business 61
Fig 7.13 Adverse effect of BTS radiation on human brain 63
List of Map
Map ID Title of Map Page No.
Map 4.1 Study area 29

vii
Acronyms and Abbreviations
ARPU Average Revenue Per User

BDT Bangladesh Taka
BTRC Bangladesh Telecommunication Regulatory Commission
BTS Base Transceiver Station
CDMA Code Division Multiple Access
CSR Corporate Social Responsibility
DNA Deoxyribo Nucleic Acid
ERS Electronic Retail Service
FDI Foreign Direct Investment
FnF Friends and Family
GDP Gross Domestic Product
GOs Government Organizations
GS General Subscriber
GSM Global System for Mobile
GSMA Generalized System of Multiple Access
ICT Information and Communication technology
IGA Income Generating Activities
KBPS Kilo Byte Per Second
LDC Least Developed Country
MNCs Multi National Companies
NGN Next Generation Network
NGOs Non Government Organizations
PBTL Pacific Bangladesh Telecom Limited
POTS Plain Old Telephone Service
PSRAST Physicians and Scientists for Responsible Application of Science and
SIM Subscriber Identification Module
SMS Short Message Service
SPSS Statistical Package for Social Science
TS Trader Subscriber
UNDP United Nations Development Programme
VAS Value Added Service
VAT Value Added Tax
VoIP Voice over Internet Protocol
etc. Etcetera
e.g. for example
i.e. that is
et. al. and others

viii
Introduction

Chapter 1: Introduction
1.1 Background of the study:

There is a great consequence of telecommunication on the economy and the society as
there is increasing, changing and inventing technological know how according to the
requirement. This thing effects both the rural and urban economy on distinct
dimensions as well as they are the tools that help the researcher to reach their
objectives. For providing communication services, mobile phone companies
technology must not come to an end rather it will accompany by the changing
technical systems and needs of general and corporate clients. Apart from some these
greater benefits, both for the service provider and subscribers, there is a tendency of
misusing this services overtime either in the form of VoIP or misuse by terrorists or
immature young generations wasting their productive time and money.
Greater inflow of FDI and internationalization of economy affects both the rural and
urban development accompanied by latest telecommunication technology. People
with low education and literacy are using upgraded technology by means of
telecommunication service thereby changing communication behaviour and come up
with new life style. Apart from the urban area, rural public administration, services,
business workflows and both short and long distance communication between masses
are affected by telecommunication. People residing in rural areas a decade ago never
thought about such a convenient way of communication. The concept of global
village has now been turned into practical in real sense because they become to know
their required information about home and abroad by few clicks on their cellular
phone. The dream of teaching rural children about IT becomes now successful. Today
village farmers are not exploited by middle man. They can know the price of
agricultural products within minutes. Daily buying and selling activities even today
people can do through their cellular phone. Cell bazaar concept may be cited as an
example. Present communication way leads us to thought about the ancient people
how do they communicate without mobile phone. This is just the starting and it is not
foreseeable by us as what the communication technology can do for humanity.
Internet service by the telecom operators is another wing of their service- a type of
VAS greatly contributing towards their revenue which was not successfully provided
by the public sector before two or three years ago. Facility of fiber optics where it has
not reached till becomes available for the subscriber of mobile phone. For
The socio-economic impact of mobile phone services on rural people in Bangladesh 1

Introduction

telecommunication service provider, consideration rural areas are of great concern.

Village people incurs cost for mobile phone purposes as it meets their day-to-day
requirement.
This study accentuates on some unions-the root level segment of public
administration under defined upazilas. The purpose of this study is to deal with rural
areas because expectation and achievement of telecommunication service in rural
areas will reflect the overwhelming scenario of telecom operators in Bangladesh.
1.2 Rationale of the study:

Bangladesh has emerged as one of Asia's top 10 mobile phone markets in terms of
adding net subscribers. The country has added 8.945 million Generalized System of
Multiple Access (GSMA) mobile users in a single year from July 2005 to June 2006.
Bangladesh now ranked eighth among the top 10 Asian mobile markets in terms of
adding net subscribers during January to March, 2006. The new 8.945 million GSMA
mobile users that have put Bangladesh in the global map is the result of the operators'
continuous effort. According to figures from The Mobile World, Bangladesh had
some 11.7 million subscribers at the end of March 2006, just one month after the
registration cut-off date. The country now has 27.7 million subscribers. Over the last
two to three years, the number of mobile subscribers in Bangladesh has been more
than doubling on an annual basis. In 2006, the subscriber base was continuing to grow
by more than 100%. With the momentum that has been developed on the back of the
government’s deregulation process, strong growth was likely to continue. The entry of
new operators into the market has certainly helped to further boost the competitive
environment. It is evident today that in many developing countries mobile technology
is a substitute for traditional basic fixed services and extends access to formerly
unserved population groups such as the urban poor and rural users. Thus mobile
technology and mobile operators are making significant contributions to universal
service and universal access, both in terms of serving individual users and through
mobile payphones.
Around 80% population of our country resides in the rural area. The economy of
Bangladesh mainly depends on the contribution provided from the rural areas. Now-a-
days many rural men and women have tendency to involve in income generating
activities (IGA) through the different usage of mobile phone. Village phone is the first

Introduction

initiative from GrameenPhone to turn this cerebration into reality. Other mobile phone
operators in successive stage provide such packages for producing income of rural
traders as well as establishing communication channel both with rural to rural and
rural to urban areas. For generating income in terms of investment, employment and
contribution towards GDP as well as promoting social cohesion and responsibility and
use in case of natural disasters- the role of handy phone is significant. So it is
necessary to carry out an intensive study on mobile phone subscribers to see what are
the economic and social impacts of mobile phone usage especially on rural areas.
1.3 Objectives of the study:

i. To know the situation of mobile phone services in Bangladesh.
ii. To know about the social and economic impacts of mobile phone services on
rural people in Bangladesh.
1.4 Scope of the study:

Research on mobile phone can be done from different perspective. But for
convenience and relevancy the researcher covered the study from social and economic
point of view. Since the majority of population resides in the countryside, so their
present status regarding mobile phone usage reveals the overwhelming picture of the
country. This paper analyzes economic benefit that trader derives from mobile phone
business and the communication behaviour of the subscriber before and after mobile
phone usage.
1.5 Limitations of the study:

i. Lack of dexterity of researcher is the first limitation of this thesis paper. This
paper does not turned into expected success due to lack of dexterity.
ii. The study has been carried out at the root level of the administration and the
literacy rate of those areas are low as compared to the urban areas. So
collection of data from the field becomes to much time consuming and tough.
iii. More detailed information regarding the study area has not been properly
collected for limitations of the study time.
iv. Secondary information about mobile phone usage is not available in the study
area which might be convenient for this study. As a result, research becomes

Introduction

greatly dependent on primary data. To conduct primary survey for this study
was really a tough one and some times it created unexpected problems.
1.6 Operational definitions:

1.6.1 Mobile phone:
There are deviation of mobile communication networks into geographic areas
called cells, each served by a base station. Mobile phones are the user’s link to the
network. The system is planned to ensure that mobile phones maintain the link
with the network as users move from one cell to another. To communicate with
each other, mobile phones and base stations exchange radio signals. The level of
these signals is carefully optimized for the network to perform satisfactorily. They
are also closely regulated to prevent interference with other radio systems used,
for example, by emergency services, ambulance as well as radio and television
broadcasters.
1.6.2 Land phone:

Land phone is an instrument that sends and receives voice messages and data
generally connected by wire. Telephones convert speech and data to electrical
energy, which is sent great distances. All telephones are linked by complex
switching systems called central offices or exchanges, which establish the
pathway for information to travel. To communicate with each other, land phones
and phone exchanges exchange optical signals. The level of these signals is
carefully optimized for the network to perform satisfactorily. They are also closely
regulated to prevent interference with other radio systems or optical systems used,
for example, by emergency services, taxis as well as radio and television
broadcasters.
1.6.3 Digital divide:

The term digital divide refers to the gap between those people with effective
access to digital and information technology and those without access to it. It
includes the imbalances in physical access to technology as well as the imbalances
in resources and skills needed to effectively participate as a digital citizen. In other
words, it is the unequal access by some members of the society to information and
communication technology, and the unequal acquisition of related skills.

Introduction

1.6.4 GSM:
Complete elaboration of GSM is Global System for Mobile. To facilitate voice,
text or fax communication GSM generally requires a SIM card and compatible
handset. As with all other communications, speech which is inherently analog is
digitally encoded and transmitted through the GSM network as a digital stream.
Since GSM is a digital network, a modem is not required between the user and
GSM network, although an audio modem is required inside the GSM network to
interwork with POTS. There is also an emergency service, where the nearest
emergency-service provider is notified by dialing three digits (911).
1.6.5 ERS:
Complete elaboration of ERS is Electronic Retail Service. This service is provided
by the telecom operators with a view to smoothly recharging their prepaid account
or to pay monthly postpaid bill. Although this name is provided by
GrameenPhone but in the study this name has been used as the service for
providing top-up i.e. balance transfer to the requested subscribers prepaid or
postpaid account.
1.6.6 Upazila:
The districts of Bangladesh are divided into sub districts, or upazilas. The upazilas
are the lowest level of administrative government in Bangladesh. In 1983, the
local government ordinance of 1982 was amended to redesignate and upgrade the
existing thanas as upazilas.

Introduction

1.7 Organization of the study:

Chapter one mainly contains general description of this research work, background of
the study, objectives, rationale and scope of the study, limitations of the study and
some operational definitions.
Chapter two carries detail modus operandi of the study. It delineates about the steps of
research work including research design, sampling, data collection and processing,
analyzing and dissertation presentation.
Chapter three contains the services of mobile phone companies, their history of
inception, subscriber base, tariff plan and their contribution in our economy.
Chapter four contains the necessary information of the study area such as
demographic, economic, literacy, communication facilities etc.
Chapter five contains general subscribers social and economic information.
Chapter six contains social and economic information of trader subscriber.
Chapter seven carries the impacts of mobile phone service from social and economic
point of view both for general and trader subscribers perspective.
Chapter eight contains major findings in a summarized form.
Chapter nine is about recommendations and conclusion. Recommendations here

prescribed on the basis of outlined problems.
Appendix contains the schedule that is used for the study. It also contains map of
respective upazilas.

Methodology
Chapter 2: Methodology
Methodology means the way or manner by which the study is accomplished, which
refers to the full outcome of the process at a glance. It includes some chronological
steps that are necessary to complete the study successfully. Mode of operation differs
with the nature of the study. Methodology is always a compromise between options
and choices and is frequently determined by the availability of relevant resource and
time. It is very important in the sense that it gives one an idea about how the study has
been conducted. In other words, methodology helps to organize, represent, and
analyze data and information. And their logical expression in a systematical
chronology is to achieve the ultimate goal of the thesis. The methodology is adopted
for the current research work is presented in a sequential manner.
2.1 Research design

2.2 Sampling technique and sample size selection
2.3 Data collection
2.4 Data processing, analysis and presentation
2.1 Research design

A research design is a plan, structure and strategy of investigation so conceived as to
obtain answers to research questions or problems. It is the arrangement of conditions
for collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure. The researcher designed this study in a
descriptive manner. On the basis of the schedule and with the help of tables and
figures the data has been presented in a descriptive way.
2.2 Sampling technique and sample size selection

Mobile phone shops, residence, ferry ghats where ever subscribers and traders found
were surveyed. So, random sampling procedure was applied for choosing the sample.
In this case the systematic random sampling was applied. Sampling units are taken at
regular intervals from the sampling frame. This study considers 300 sample and
divides it into two segment i.e. subscriber and trader. Again the sample were divided
as 180 for general subscriber and 120 for trader subscriber. In this study there were

Methodology
two units, one is subscriber of mobile phone and other one is entrepreneur or trader
related to mobile phone.
2.3 Data collection:

Three hundred respondents in the study area have been considered for collecting data.
Schedule has been used as an instrument of data collection. Necessary data has been
collected through schedule survey and self-observation on those samples. Two types
of data have been collected for this study which are briefly discussed below:
2.3.1 Primary data:
Primary data for this study has been collected from two main survey instruments i.e.
schedule (formal interview) and field observation.
a. Formal interview:
In common parlance schedule is an instrument or a list of questions that are directly
or indirectly related with the study. According to the objectives and requirements of
the study a schedule has been framed to collect the required information regarding all
indicators used and other relevant information.
a.1 Schedule for general subscriber:
Generally speaking literacy rate in the rural areas are lower in comparison to other
urban areas. So, special attention was given in designing the schedule considering the
literacy rate. Most of the questions were very simple, easy, straightforward and close
ended whereas some open-ended questions were also included for a balanced
schedule. The survey has conducted on the basis of random sampling. 180 subscribers
were chosen randomly to collect various information regarding their mobile phone
usage status.
a.2 Schedule for trader subscriber:
Number of trader subscriber was restricted only for those who are involved in mobile
phone related business. Schedule for 120 traders were designed with close and open-
ended questions to collect various mobile phone business related information.
b. Field observation:
In some respects the respective schedule and interview guides did not cover some
relevant information. Furthermore, in many cases the respondents gave some
important information, which are not directed to the questionnaire. Therefore, in order

Methodology
to obtain more knowledge additional information was derived through personal

observation.
2.3.2 Secondary data:

In any study secondary data plays a crucial role from the inception to destination
which on the one hand strengthens knowledge base and saves time and resources on
the other. At the initial stage it gives first hand information about the topic of the
study and later it is used to supplement the empirical data. Secondary data have been
collected for this study from different published and unpublished documents such as
research reports, different institutions, journals, articles and internet.
2.4 Data processing, analysis and presentation

In order to analyze, processing of raw data is very much significant. In this stage,
mainly data is being processed and analyzed for the study. Without processing raw
data, it is hard to analyze the raw data. After processing, it is needed to present data
for analysis in an appropriate way. An attempt has been taken to entry the data into
different statistical computer software with a view to analyze data to reach in a
decision. All the collected data (primary and secondary) have been processed and
analyzed chronologically. The findings have been presented in this thesis
appropriately with the help of figures and tables. Some latest computer programs such
as MS Word, MS Excel and SPSS have been used to present and analyze the data.
Before the submission of the final thesis paper an attempt has been taken in the best
possible way to go through the draft thesis by the course supervisor side by side
presentation and analysis of this thesis paper has been changed as per his view. After
completing analysis of the data, the final output has been presented in text format by
writing this thesis.
After necessary correction and suggestion as suggested by supervisors, a final

dissertation paper has been prepared for final submission.

Methodology
2.5 Steps of the study:

a) Conceptualization: It was inevitable to maturate a clear as well as wide
concept of the different issues that was very much pertinent with the present
research topic.
b) Selection of the study area: The study area covers nine upazilas under six
different districts.
c) Sampling technique and sample size selection: A systematic sample is
spread evenly through the target population. Systematic random sampling
technique was applied for survey over 300 sample.
d) Schedule preparation: A schedule was prepared to conduct reconnaissance
survey.
e) Reconnaissance survey: Reconnaissance survey was conducted to get idea
about the study area and other necessary corrigendum of the schedule.
f) Finalization of schedule: After necessary rectification of the schedule final
schedule was prepared.
g) Field survey and data collection: After finalization of schedule data has been
collected from the study area.
h) Data processing and analysis: In this step raw data were processed.
i) Draft dissertation presentation: After processing and analyzing data, a draft
dissertation was submitted to the supervisor for necessary correction and
suggestion.
j) Final dissertation presentation: After necessary correction and suggestion as
suggested by supervisor, a final dissertation paper has been prepared for final
submission.

Mobile phone services in Bangladesh
Chapter 3: Mobile phone services in Bangladesh
3.1 General:
The telecommunication market from the perspective of Bangladesh in the recent year
becomes too much competitive than ever. Recent growth in the Bangladesh mobile
market can be attributed to factors such as the deregulation of the telecommunication
sector, low levels of tele-density, inadequate fixed phone infrastructure, high
competition following the entry of two new operators (Banglalink and Teletalk) and,
particularly, massive foreign direct investment (FDI) by telecom giants like Telenor,
Telekom Malaysia (TM), Orascom, SingTel, and most recently by UAE-based Warid
Telecom. Foreign operators, in collaboration with local partners, have been working
with the infrastructure to remove entry barriers and make mobile telephony more
affordable and widen the base of mobile subscribers. At present there are six mobile
phone operators continuing their business operation in Bangladesh. Of them, only one
is owned by the government and others are as Foreign Direct Investment (FDI). The
contribution of those mobile phone companies in the domestic economy is worth to
mention. They make the life easier both in rural and urban areas. The activities of
mobile phone operators are regulated by Bangladesh Telecommunication Regulatory
Commission (BTRC).
3.2 Mobile phone operators: History of inception
The first cellular operator was Bangladesh Telecom (Pvt.) Limited (BTL), which
received permission to provide service in 1989. The permission transferred initially to
Pacific Bangladesh Telecom Limited (PBTL) who started their operation in 1993.
Sheba Telecom (Pvt.) Ltd. was granted license in 1989 to operate in the rural areas of
199 upazilas and later they were also allowed to extend to cellular mobile radio-
telephone services.
GrameenPhone was offered a cellular license in Bangladesh by Ministry of Posts and

Telecommunications in November 28, 1996. It quickly established market leadership,
owing to its relationship with the not-for-profit Grameen Bank. After almost 10 years
of successful business operation in Bangladesh GrameenPhone announces its 10
million subscribers base in November 5, 2006. Aktel was awarded license in 1997.
Later in 2004 most of the share of PBTL was purchased by SingTel. PBTL operates
under the brand name Citycell.
After a period of declining market share, Banglalink purchased Sheba’s license in

2004. Citycell entered the market in 2004, followed by Warid in December 2005. The
incumbent fixed line operator, BTTB also entered the market via Teletalk. In July,
2004 it was reported that Orascom Telecom is set to purchase through a hush-hush
deal the Malaysian stakes in Sheba Telecom, as it had failed to tap the business
potentials in Bangladesh.
High penetration rate of mobile phone had been haltered by imposing a controversial
tax of US$18 on each new connection on national budget 2004-2005 in the year 2004.
In response to strong criticism, the tax was reduced to US$13.50 in August 2005.
Operators thought that the new tax will pose a serious entry hurdle for low-income
earners and will significantly stifle growth expectations. However, industry specific
taxation - taxes applying to the mobile industry and not others - remains high. An
obvious example is the US$16 “royalty” charge, paid annually per connection, which
applies only to mobile subscriptions and not fixed subscriptions.
Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh.

Warid is the first GSM operator in Bangladesh providing NGN for optimum
utilization of frequency and enhances speed and quality of both voice and data
services. Warid is the 6th mobile phone carrier to enter the Bangladesh market. It is
wholly owned subsidiary of Warid Telecom International LLC which is the part of an
Abu Dhabi based consortium led by His Highness Sheikh Nahayan Mabarak Al
Nahayan, a Member of the Royal Family of Abu Dhabi, and the Honorable Minister
of Higher Education and Scientific Research of the United Arab Emirates.
Warid officially launched their commercial services in Bangladesh on the 10th of

May, 2007, with a GSM Mobile Cellular network covering 61 districts of the country
and encompassing 70% of the mobile phone using population- the single largest
launch the country has ever seen.
On 19th July, 2007 Warid Telecom announced in major dailies of having achieved
one million subscribers in the first of 70 days of operation. As of January, 2008 Warid
has secured 2.37 million subscribers and is ranked fourth among the six operators.
Being fallen in competitive ambience all the operators are paying their keen
concentration to VAS. In case of providing VAS it can be claimed that the SIM genie
menu by Warid telecom is highly structured. People in the rural areas are not capable
to memorize the service code for different VAS. The same VAS Warid provides by
gently clicking on the keypad of their mobile phone.
3.3 Subscriber base of telecom operators in Bangladesh:
Growth of subscriber base depends on the business policy of the operators. Different
operator attracts subscriber from different economic strata. As for example, Orascom
always makes a good market wherever they operate their business. Recently Orascom
initiate their business in North Korea and the company expects sign up of 100,000
subscribers when they will launch their new GSM network. This is because the
company is confident in achieving good subscriber base from their business policy. In
Bangladesh, at present Banglalink and Warid tries to cover all sects of community
under their network by paying more attention towards the subscribers expectation.
Table 3.1: Distribution of subscriber base of mobile phone operators in Bangladesh

December 2007 January 2008
Name of operator Subscriber Name of operator Subscriber
GrameenPhone Ltd. (GP) 16.48 GrameenPhone Ltd. (GP) 16.88
TMIB (Aktel) 6.40 TMIB (Aktel) 7.28
Sheba Telecom Ltd. (Banglalink) 7.08 Sheba Telecom Ltd. (Banglalink) 7.45
PBTL (Citycell) 1.41 PBTL (Citycell) 1.45
Teletalk Bangladesh Ltd. (Teletalk) 0.85 Teletalk Bangladesh Ltd. (Teletalk) 1.00
Warid Telecom International L.L.C 2.15 Warid Telecom International L.L.C 2.37
(Warid) (Warid)
Total 34.37 Total 36.42
[Source: BTRC]
• The subscribers' numbers are declared by the mobile operators.
• Subscribers in Millions
Developing countries now account for more than half of mobile subscriber growth
worldwide, with the top 10 adding around 285 million new subscribers in 2006 alone.
The world's top 10 mobile growth markets are all countries considered to be
"emerging" in Europe, Asia/Pacific, Africa, and Latin America. The mobile phone
operators in Bangladesh are trying to provide the best services for their valued
subscribers within their existing infrastructure and technology at their disposal. The
companies are coddled in the cut-throat competition which leads to the substantial
increase in their customer base. Another crucial reason for mobile service growth in
our country has accompanied economic expansion, deregulation, and the need for
communications infrastructure where there is a lack of fixed-line connectivity.

Research on mobile phone usage in different countries has found that with every 10
percent increase in mobile phone penetration, a country's GDP increases by 0.6
percent. As the table below shows, India and China are way ahead of the pack in
terms of sheer volume. India added the most, more than 73 million new mobile
customers, while China, in second place, added close to 68 million new users. The
next country on the list, Pakistan, added 29 million. The U.S. added 23 million
subscribers last year, which would have put it in fifth place.
Table 3.2: Distribution of world’s Top 10 emerging mobile growth markets

Country Subscriber addition* in 2006 Total subscriber* Dec 2006 % increase over Dec 2005
India 73.56 149.5 97
China 67.68 461.08 17.2
Pakistan 28.9 48.29 147
Russia 26.12 151.92 21
Indonesia 23 65 38.6
Ukraine 19.03 49.21 63.1
Brazil 13.7 99.92 15.9
Bangladesh 12 21.76 135
Nigeria 11.4 30 38
Vietnam 10 22.5 80
[Source: www.lightreading.com]
* Figures indicating in million
3.4 Tariff plan of telecom operators: Past and present

It is obvious that when one mobile phone operator becomes market leader, then it will
try to control and regulate the existing market for ensuring great amount of persisting
rise of their revenue. GrameenPhone as market leader did the same task as it ought to
be. Initially GrameenPhone provided only voice communication at the tariff rated
BDT 6.00 (US$ 0.085) exclusion of 15 percent VAT. This monopoly continues until
the addition with TMIB (Aktel). This tariff was too much excessive in comparison to
the tariff rate of other developing countries. This exploitation was not ended here.
Since most of the mobile phone subscriber whether in previous or at present are of
prepaid type, they were bound to recharge their prepaid account in order to be
connected after the expiry of the limited validity period. Because after the expiry of
their prepaid card all sorts of outgoing and incoming calls were barred. Here it is
needed to mention that most of the subscribers were not enabled to recharge their
prepaid account in that time and they were forced to recharge their prepaid account
because the operators till then did not initiated other lower amount prepaid scratch
card other than BDT 300 and BDT 600. This policy was extremely in disfavour
especially for rural people.
Table 3.3: Validity of prepaid scratch card

Operator Validity of prepaid Validity of prepaid Other facilities
scratch card BDT 300 scratch card BDT 600
GrameenPhone 21 days 45 days All outgoing and incoming
Aktel 21 days 45 days calls were barred
[Source: News letter of the respective operator]
Later this duopoly trend has been broken by Banglalink-wholly owned subsidiary of
Orascom telecom called “Mobile Price War”. The entry of Banglalink in February
2005 has sparked a price war. Banglalink's attractive launch offer included a new
connection and handset at a low start-up cost of BDT 3400.00 (US$ 51). Following
Banglalink, three other private operators - GrameenPhone, Aktel and Citycell have
also come up with various value-added offers resulting in an intense price battle. The
development of a competitive mobile phone market is expected to prompt an easing in
cell phone tariffs going forward, after years of escalation in what was a captive
market. Consumers will also benefit from cheaper connection, call rates and various
value added services.
Six months before BTRC further amends the tariff plan of mobile phone companies.
Side by side it gives some legislative orders to the operators in response to the
remonstrance’s posed by civil society. BTRC fixes that no mobile phone operator can
charge not more than BDT 2.00 and not lower than BDT 0.25 for making voice call.
In previous, different mobile phone companies offered free air time minutes to the
same operators but this causes serious inconvenience to social and economic issues.
Such offers make young generations to more use of this service. In a competitive
market different operators provides lower tariff call rate for the subscribers. To do so
they furcated time period on different basis. The operators provide very low call tariff
during the off-peak hours and reduced tariff during ascertained hour and generalized
call tariff for the rest of the time of the day. Apart from this, operators provide pulse
facility during phone call. Some provide 1 second pulse, some provide 15 second
pulse and some provide 30 second pulse. But most of the operators provide 30 second
pulse. The tariff for sending SMS vary from BDT 0.10 to BDT 2.50 including
international SMS. All the operators are providing international roaming for voice call
and for sending and receiving SMS. No prepaid subscribers are entitled to avail this
service. Only post paid subscribers can avail this service who bears international
credit card with validity of at least six months. Present tariff status of mobile phone
operators can be understood by the following table:
Table 3.4: Present tariff plan of telecom operators

Operator 9am-5pm 5pm-12am 12am-8*/9am 8am-12am 12am-7am 24 Hours
GrameenPhone 1.5 2.00 N/A N/A 0.30 & 1.00 N/A
Aktel N/A N/A N/A N/A 0.30 1.00
Banglalink 1.15 1.75 0.29 & 0.99 N/A N/A N/A
Warid 0.99 1.80 0.25 & 0.99 N/A N/A N/A
Citycell BDT 0.25 for Citycell to Citycell all day and BDT 1.00 with other operator
Teletalk* N/A N/A 0.60 & 1.00 1.40 & 1.90 N/A N/A
[Source: Respective website of the telecom operator]
*Lower call rates applicable within own operator and higher call rates for other operator
*The call rate stated here is for prepaid package mostly used by subscriber.
Viewing the present competitive scenario among telecom operators it can be hoped
that the tariff rates will further lessen and the operators will pay more and more
attention towards VAS.
3.5 Mobile phone operators in rural area:

How can modern communication technologies benefit people at the grassroots? A
question whose answer is often more complicated than the simple solution is to
introduce rural people about the different aspects of information and communication
technology. The investment, contribution, achievement of mobile phone operator
towards the people of rural areas are worth to mention. The same scenario will not
prevail to the developed economy. A significant portion of population of our country
resides in the rural area. Realizing this very fact, GrameenPhone for the first time
launched village phone programme in March 1997 when the first village phone
became operational in Patira. Grameen Telecom (GTC) was established in 1995 on
the initiative of Grameen Bank. The main objective is to provide universal access to
telephone to the people living in the rural areas of Bangladesh. GrameenPhone Ltd.
(GP) is a joint venture company formed by Grameen Telecom and three other
companies: Telenor Invest AS of Norway, Marubeni Corporation of Japan and
Gonophone Development Corporation of USA. There was no optimistic plan or
initiative to increase telephone penetration in rural Bangladesh, neither from the
government nor from any other operators. Only Grameen has taken such an initiative
and planned a “Village Phone” programme to provide easy access to telephones all
over rural Bangladesh. A telephone in a village does not just ensures voice
communication from village to village, rather it can be treated as an important tool for
development, i.e. a new weapon to fight against poverty. It can be treated as the first
step to bringing the potential of the information revolution to the doorstep of villagers.
Later Aktel and Banglalink takes the same initiative for providing mobile phone for
business purpose with some lucrative offers. Aktel introduces Aktel Uddokta and
from Banglalink PCO and other Call and Control package.
As village remains as the heart of agricultural activities which contributes major part
of our economy. People’s occupations are now being diversified and a significant
portion of rural people live outside their villages. Labour mobility has increased
enormously in the recent past. Practically speaking, millions now work outside their
own villages-even abroad. As a result of which the usage of mobile phone increased
tremendously. In recent times the volume of rural- urban trade has increased at a rate
much higher than the growth of the economy. Two reasons are present here i.e. labour
mobility and marketing of agricultural and small and cottage industries.
3.6 Mobile phone benefits national economy:
In Bangladesh the impact mobile phone is far-reaching. A sophisticated and high-

quality telecommunication infrastructure permits capital to be deployed productively
and efficiently. It is essential to have a mobile phone service that is cheap, widely
available and ensuring high quality service for evenly disseminating the blessings of
communication technology. Along with mobile phone, fixed phones are performing
the same service. But the penetration rate of fixed phone is lower as compared with
mobile phone. It will be comprehensible from the statistics of year 2003-2005.
Table 3.5: Fixed and mobile teledensity in Bangladesh

Type of operator 2003 2004 2005
Mobile phone penetration 1.13% 2.28% 6.00%
Fixed phone penetration 0.6% 0.75% 0.9%
[Source: Bangladesh Telecommunication Regulatory Commission]
From the table it is visible that the vast majority of the population does not have
access to telecommunication services although there is greater efforts from the
operators.
Whenever foreign direct investment inflows to the domestic economy, then it can be
presumed that there will occur multifarious changes in that corresponding economy.
The impacts are intertwined with one another. When FDI enters in the domestic
economy as a form of providing information and communication technology, it
provides greater service to that community-making their life more comfortable, easier,
informative and brings economic excellence in their business operation. As
telecommunication business covers the involvement of human efforts, technical
expertise of several fields, it creates great employment opportunity in our country.
Besides traders engaged in mobile phone business are refurbishing their economic
status by multifarious usage of mobile phone. Subscribers become beneficiary with
the help of mobile phone as it encompasses less time consuming in their relevant
professional field than previous. The most mentioning benefits from the mobile phone
is the government as it collects revenues, royalties, duty, fee, tax from all the sectors
associated with mobile phone business.
3.6.1 Contribution to government revenue:
Government is one of the greatest beneficiary out of several beneficiaries of mobile

phone business. In a number of ways the government becomes beneficiary. Most of
the sectors are from VAT, tax, general duty and supplementary duty on importing
capital machinery and handsets and fees. In the year 2005 total revenue worth of
US$256 has been added to government treasury. Besides, the amount of tax taken
from the mobile phone operators in 2005 amounted to US$174m, or 27% of their
revenues. This can be understood by the following table:
Table 3.6: Source of revenue from mobile phone industry

Government revenue US $ (in million)
Royalty on handsets 46
Import duty on handsets 11
VAT on usage charges and handset sales 112
Revenue share charges 8
Connections & supplementary duty 36
BTS royalty 1
Import duty on capital machinery 5
Income tax 37
Total 256
[Source: www.gsma.com]
3.6.2 Contribution towards economy:
An economy will be benefitted from the usage of mobile phone when all the persons
related to telecommunication i.e. whether ERS trader or high technical expertise
becomes beneficiary. All the persons engaged in telecommunication business can
serve from their own position towards the economy. A gross of US$ 750m had been
added by the mobile phone industry in our domestic economy of which US$ 256m
was retained by the telecom operators and they usually use it to pay employee salary,
tax to the government. The remnant portion was by dealers of mobile phone (US$
57m), mobile terminal manufacturers (US$ 72m), fixed network operators (US$
35m), and a total of US$ 330m to equipment supplier.
Table 3.7: Inbound revenue to government exchequer

Industry role Revenue US$ Cost US$ Added US$
Dealers 283 226 57
Mobile Network Operators 599 343 256
Terminal manufacturers 227 155 72
Support service suppliers 33 – 33
Fixed Network Operators 54 19 35
Component suppliers to network equipment 114 – 114
suppliers
Component suppliers to terminal suppliers 155 – 155
Other capex suppliers 28 – 28
Total US$ 750
3.6.3 Contribution towards employment:
In case of generating employment opportunity the role of telecommunication is very

crucial. Till year 2005, telecommunication sector creates employment opportunity for
2,37,800 people. Almost a quarter of a million of Bangladeshi people depends on the
mobile phone and related industry either directly or indirectly. Employment creation
category can viewed from four different angle. They are as follows:
i. There is a direct employment opportunity in the mobile phone industry.

ii. There is a provision of creating supporting employment opportunity by
outsourced work and taxes that the government subsequently spends on
employment generating activities.
iii. There is a indirect category, which covers other costs as well as profit
generated, which is subsequently spent on employment generating activities,
and finally
iv. There is induced employment category which refers to jobs created as
employees and other beneficiaries spend their earnings, thereby creating extra
employment.
The contribution of mobile phone companies towards creating employment

opportunity in Bangladesh can be understood table 3.8 :
Table 3.8: Employment creation statistics by mobile phone industry as up to 2005

Employment from mobile phone services Direct Support Indirect Induced Total
Dealers 19.9 19.9 10.0 29.9 79.7
Mobile network operators (MNOs) 4.4 38.2 3.8 27.9 74.3
Support services suppliers 0.0 23.0 5.8 17.3 46.1
Fixed network operators (FNOs) 0.6 5.2 0.7 3.9 10.4
Other capex suppliers 6.8 6.8 3.4 10.3 27.3
Terminal suppliers 0.0 0.0 0.0 0.0 0.0
Terminal component suppliers 0.0 0.0 0.0 0.0 0.0
Network equipment manufacturers 0.0 0.0 0.0 0.0 0.0
Network equipment component suppliers 0.0 0.0 0.0 0.0 0.0
Total 31.7 93.1 23.7 89.3 237.8
* Figures indicating in thousand
Profile of the study area
Chapter 4: Profile of the study area
One of the major tasks of this study is to subtly analyze the study area and the various
issues relating to mobile phone use. This study covers nine upazilas of Khulna,
Bagerhat, Chuadanga, Barisal, Lalmonirhat and Gazipur district. The upazilas were
Batiaghata, Dumuria, Terokhada, Rupsa, Rampal, Alamdanga, Wazirpur, Kaligonj
and Gazipur sadar upazila. Some villages from those upazilas were randomly selected
for collection of data. This paper mainly concentrates on the general demographic
information, communication facilities and economic characteristics of the study area.
4.1 Study area: Demographic, economic and communication features
4.1.1 Batiaghata Upazila:

Area and location:
Batiaghata upazila is situated in Khulna district with an area of 248.33 sq km, is
bounded by Kotwali (Khulna), Dumuria and Rupsa upazilas and Sonadanga thana on
the north, Dumuria upazila and Paikgachha upazila on the west, Dacope, Paikgachha
and Rampal upazilas on the south, Rampal, Fakirhat and Rupsa upazilas on the east.
Population:
According to the population census 2001, total population in Batiaghata upazila were
128184 of which 51.07% were male and 48.93% were female. Muslim 50.91%,
Hindu 49.03%, others 0.06%. The density of population is 1750 per sq km.
Literacy and educational institutions:

The literacy rate in Batiaghata upazila is very much lower. Average literacy rate is
37.7% of which male covers 46% and female is 29%. Educational institutions include
1 university, 4 college, 26 secondary school, 67 government primary school, 44 non-
government primary school and 4 madrasa.
Main occupations:
Agriculture is the main occupation of this upazila. Agriculture covers 42.94%, fishing
1.64%, agricultural labourer 19.67%, wage labourer 6.35 %, commerce 10.53%,
transport 2.22%, construction 1.06%, service 4.85% and others 10.74%.
4.1.2 Dumuria Upazila:

Area and location:
Dumuria is the largest upazila in Khulna district with an area of 454.23 sq km. is
bounded by Manirampur, Abhaynagar and Phultala upazilas on the north, Batiaghata
and Paikgachha upazilas on the south, Khan Jahan Ali, Khalishpur and Sonadanga
thanas and Batiaghata upazila on the east, Tala and Keshabpur upazilas on the west.
Population:
According to the population census 2001 total population in Dumuria upazila were
Hindu 42.83%, Christian 0.01%, Buddhist 0.01%, and others 0.09%. The density of
population is 2047 per sq km.

The average literacy rate in Dumuria upazila is 36.1% of which male covers 45.4%
and female is 26.5%. Educational institutions include 7 college, 33 high school, 8
junior school, 46 madrasa, 110 government primary school and 53 non-government
primary school.
Main occupations:
Agriculture is the main occupation of Dumuria upazila. Agriculture covers 46.29%,
Agricultural labourer 16.77% , wage labourer 4.09%, commerce 12.85%, industry
2.01%, transport 3.24%, service 4.66% and others 10.08%.
Communication facilities Roads:

Pucca road covers 61 km, semi pucca 76 km., mud 467 km and waterways 32 nautical
mile.
4.1.3 Terokhada Upazila:

Area and location:
Terokhada upazila is situated in Khulna district with an area of 189.48 sq km, is
bounded by Kalia upazila on the north, Rupsa upazila on the south, Mollahat upazila
on the east, Dighalia upazila on the west.
Population:
According to the population census 2001 total population in Terokhada upazila were
Hindus 24.20%, others 0.3%. The density of population is 997 per sq km.

Average literacy rate in Terokhada upazila is 31.6% of which male covers 37.1% and
female is 25.8%. Educational institutions include 2 college, 10 high school, 51
primary school, 6 madrasa. Noted institution Ikhri Katenga Fazlul Haque High
School.
Main occupations:
Agriculture remains the main occupation in Terokhada upazila. Agriculture covers
51.94%, fishing 2.59%, agricultural labourer 19.9%, service 7.56%, wage labourer
1.58%, commerce 6.88%, transport 1.54% and others 8.01%.
Communication facilities:
Roads are the main communication path of this upazila. Of the total roads pucca road
covers 24 km, semi pucca 32.57 km and mud road 209 km.
4.1.4 Rupsa Upazila

Area and location:
Rupsa Upazila is situated in Khulna district with an area of 120.15 sq km, is bounded
by Terokhada upazila on the north, Fakirhat and Batiaghata upazilas on the south,
Mollahat and Fakirhat upazilas on the east, Kotwali (Khulna) thana and Batiaghata
upazila on the west.
Population:
According to the population census 2001 total population in Rupsa upazila were
150185 of which 51.98% were male and female were 48.02%. Muslim 82.28%,
Hindu 17.55%, others 0.17%. Density of population is 1347 per sq km.

Average literacy rate in Rupsa upazila is 40.4% of which male covers 46.5% and
female is 33.3%. Educational institutions include 46 government primary school, 14
non-government primary school, 5 lower secondary school and 23 madrasa.
Main occupations:
A very negligible portion of population is engaged in agricultural sector. Most of the
people involves in trade and service. Agriculture covers 18.02%, agricultural labourer
6.6%, wage labourer 11.81%, commerce 20.91%, transport 6.35%, construction
2.09%, industry 2.87%, service 17.10%, others 14.25%.
This upazilas communication system mainly based on mud roads. Roads include
pucca 19 km, semi pucca 26 km and mud road 257 km.
4.1.5 Rampal Upazila

Area and location:
Rampal upazila is situated in Bagerhat district with an area of 335.46 sq km, is
bounded by Bagerhat Sadar and Fakirhat upazilas on the north, Mongla and
Morrelhonj upazilas on the south, Morrelganj and Bagerhat Sadar upazilas on the
east, Batiaghata and Dacope upazilas on the west.
Population:
According to the population census 2001 total population in Rampal upazila were
167070 of which 50.83% were male and female were 49.17%. Muslim 75.31%,
Hindu 24.42%, others 0.27%.

Average literacy rate in Rampal upazila is 45.5% of which male covers 51.5% and
government primary school, 16 junior school, 46 non-government primary school and
88 madrasa. Noted old institution is Gilatala Multilateral High School (1929).
Main occupations:
Agriculture covers 33.52% of total population of the upazila. Among others, fishing
3.63%, sericulture 1.79%, agricultural labourer 20.13%, wage labourer 6.92%,
commerce 13.97%, transport 1.34%, service 4.87% and others 13.83%.
4.1.6 Alamdanga Upazila

Area and location:
Alamdanga upazila is situated in Chuadanga district with an area of 360.4 sq km is
bounded by Gangni and Mirpur upazilas on the north, Chuadanga Sadar and
Damurhuda upazila on the south, Kushtia and Jhenaidaha Sadar and Harinakunda
upazilas on the east and Meherpur Sadar on the west.
Population:
According to the population census 2001 total population in Alamdanga upazila were
245524 of which male were 51.66% and female were 48.34%; Muslim 96.26%;
Hindu 3.53% and others 0.21%.

Average literacy rate in Alamdanga upazila is 23.2% of which male covers 28.3% and
female is 17.7%. Educational institutions include 4 college, 7 high school, 4 junior
high school, 84 government primary school, 48 non-government primary school.
Noted institution: Alamdanga High School (1914).
Main occupations:
Agriculture is the occupation of majority population. Professional pattern covers
agriculture 45.36%, agricultural labourer 26.45%, wage labourer 2.29%, weaving
1.61%, industry 1.37%, commerce 12.3%, service 3.57%, transport 1.25% and others
5.8%.
Mud road covers major portion of this upazilas communication system. Roads include
pucca road 56.5 km, semi pucca road 35.5 km and mud road 327.9 km and railway-
22 km.
4.1.7 Wazirpur Upazila:

Area and location:
Wazirpur upazila is situated in Barisal district with an area of 248.35 sq km, is
bounded by Agailjhara and Gournadi upazilas on the north, Banaripara and
Jhalokhati Sadar upazila on the south, Babuganj upazila on the east, Kotalipara and
Nazirpur upazilas on the west.
Population:
According to the population census 2001 total population in Wazirpur upazila were
227115 of which male covers 50.6% and female were 49.4%; Muslim 74.5%, Hindu
25% and others 0.5%. The density of population is 1463 per sq km.

Average literacy rate in Wazirpur upazila is 47.6% of which male covers 52.9% and
government primary school, 85 non-government primary school, 75 madrasa. Old
institutions: Revrouddradi Government Primary School (1887), Atipara Government
Primary School (1914), Habibpur High School (1856).
Main occupations:
Agriculture is the main source of occupation in Wazirpur upazila. It covers 39.71% of
total occupation thereafter agricultural labourer 23.52%, wage labourer 2.7%,
commerce 14.09%, construction 1.07%, service 8.56% and others 10.35%.
Waterways are comparatively higher than roadways. Roads cover pucca 28 km, semi
pucca 60 km and mud road 400 km. Waterways include 28 nautical mile.
4.1.8 Kaligonj Upazila:

Area and location:
Kaligonj upazila is situated in Lalmonirhat district with an area of 236.96 sq km, is
bounded by Hatibandha upazila and West Bengal of India on the north, Gangachara
and Kishoreganj (Lalmonirhat) upazilas on the south, Aditmari upazila on the east and
Jaldhaka upazila on the west.
Population:
According to the population census 2001 total population in Kaliganj upazila were
198108 of which male were 51.48% and female were 48.52%. Muslim 78.43%,
Hindu 21.17%; Christian 0.12%, Buddhist 0.04% and others 0.24%. The population
density is 1385 per sq km.

Average literacy rate in Kaligonj upazila is 31% of which male covers 39.8% and
female is 23%. Educational institutions include 6 college, 2 government high school,
17 non-government high school, 58 government primary school, 72 non-government
primary school, 7 madrasa, 1 vocational high school, 1 computer training centre.
Noted institutions are Madanpur Bairati Primary School (1865), Kakina Mahima
Ranjan Memorial Bilateral High School (1901).
Main occupations:
Agriculture is the main source of occupation in this upazila. It encompasses 52.35%
of total occupation thereafter agricultural labourer 26.24%, wage labourer 3.15%,
commerce 7.39%, services 2.85% and others 8.02%.
Communication in this upazila includes mainly road and railways. Roads cover pucca
32 km, semi pucca 0.9 km, mud road 350 km and railways 40 km.
4.1.9 Gazipur Sadar Upazila:

Area and location:
Gazipur sadar upazila is situated in Gazipur district with an area of 446.38 sq km, is
bounded by Sreepur upazila on the north, Savar upazila and Uttara thana and Rupganj
upazila on the south, Kaliganj (Gazipur) and Rupganj upazilas on the east, Kaliakair
and Savar upazilas on the west.
Population:
According to the population census 2001 total population in Gazipur sadar upazila
were 588492 of which 53.83% were male and female were 46.17%. Muslim 92.46%,
Hindu 7.04%, Christian 0.35%, Buddhist and others 0.15%. The density of population
is 2505 per sq km.

Average literacy rate in Gazipur sadar upazila is 43% of which male covers 51.3%
and female is 34.7%. Educational institutions include 3 universities, 2 technical
institution, 4 agricultural institution, 3 government college, 1 non-government
college, 2 government secondary school, 62 non-government secondary school, 6
junior school, 126 government primary school, 41 non-government primary school, 1

primary teacher's training institute, 1 telecommunication staff college, 1 agricultural
training institute and 1 postal academy.
Main occupations:
Agriculture covers 26.63% of total occupation thereafter agricultural labourer 7.68%,
wage labourer 2.94%, industry 1.41%, commerce 14.71%, transport 4.73%,
construction 1.79%, service 28.31% and others 11.8%.
Roadway is the main path to communicate which covers pucca 245 km, semi pucca
290 km, mud road 377 km. Apart from roads railways cover 45.1 km and waterways
42 nautical miles.
4.2 Quick look of the study area:

Map 4.1: Study area
Legend
Rupsa Rampal Wazirpur Alamdanga Gazipur Kaligonj

Sadar
Terokhada
Dumuria
Batiaghata
Socio-economic status of general subscriber
Chapter 5: Socio-economic status of general subscriber
5.1 Socio-demographic features of general subscriber:

One important part of research work is to delineate the socio-demographic description
of the sample. This is necessary because it is intertwined with research topic, research
area and sample of the study. Socio-demographic information helps researcher to
analyze various variables to find out predetermined objectives. Mostly required
variables are distribution of age and sex, family size, educational status etc. The
socio-demographic features of general subscriber are as follows:
5.1.1 Age structure:

Analysis of age of general subscriber is very much relevant with the study. Because
usage of mobile phone once treated as the communication medium of businessman
whose age pattern were 30-60 years. But now-a-days this mobile phone becomes an
essential tool of communication irrespective of age of the subscriber.
Table 5.1: Age distribution of general subscriber
Subscribers age Frequency % Average age
16-30 115 63.9
31-45 52 28.9
46-60 11 6.0 30.64 ~ 31
61-75 2 1.2
Total 180 100.0
[Source: Field survey 2008]
In the study area it was found that mobile phone is mostly used by young generation.
The maximum number of subscriber is within the age group 16-30 year (63.9%). The
average age of the general subscriber was found 31 years.
5.1.2 Sex distribution:

The usage of mobile phone is not confined to male only rather a great number of
female uses mobile phone now-a-days for various reason. Using mobile phone by
female social cohesion has been tremendously increased.
Table 5.2: Sex distribution of general subscriber
Sex Frequency %
Male 154 85.6
Female 26 14.4
Total 180 100.0

Keeping in view the requirements of female, Banglalink is the first telecom operator
in Bangladesh which pays proper tribute to female community by introducing “Ladies
First!” package. This package makes their communication behaviour very easier.
5.1.3 Distribution of sex according to age group:

One of the important task of the research is to classify the sample according to its age
group. By such classification it will be easier to find the user of mobile phone of
specific age group.
Table 5.3: Sex distribution according to age group

Age group Frequency % of male from total Frequency % of female from total
(years) (Male) male subscriber (Female) female subscriber
16‐30 95 61.04 18 69.24
31‐45 48 31.17 6 23.08
46‐60 9 5.85 2 7.68
61‐75 2 1.94 0 0.00
Total 154 100.0 26 100.0
Table 5.3 shows that most of the subscriber of both the sex falls under the age group
16-30 years. 61.04 male subscriber out of 154 comprises between 16-30 years and
69.24% female subscriber out of 26 comprises between 16-30 years. 28.9% subscriber
are from 31-45 years age group.
5.1.4 Family size:

To work with family size of general subscriber is an important issue while analyzing
their various socio-economic aspects. The usage of mobile phone also depends on the
family size. Because if the family size is relatively larger and if the family members
resides in different upazila or city or even abroad then they communicate with them
with the help of mobile phone.
Table 5.4: Family member distribution of general subscriber

Family member Frequency %
2-5 114 63.3
6-9 58 32.3
10-12 8 4.4
Total 180 100.0
Around 114 (63.3%) general subscribers family size were found between 2-5. 32.3%
general subscribers family size were found between 6-9 and the share of family size
between 10-12 is very insignificant.

5.1.5 Educational status:

Generally the literacy rate in the rural areas are lower as compared to the other urban
areas. Although this study found that in the rural areas the number of higher educated
people are lower i.e. 4.4% M.A. pass and 27.4% are graduate.
Table 5.5: Distribution of educational status of general subscriber

Literacy rate (Subscriber) Frequency %
Illiterate 2 1.1
5 pass 12 6.7
8 pass 21 11.7
S.S.C. 33 18.3
H.S.C. 51 28.3
Degree/hons. 50 27.8
M.A. 8 4.4
Others 3 1.7
Total 180 100.0
The number of general subscriber with educational status of H.S.C. pass lies higher
(28.3%) in the study area and 33 general subscriber found with educational
background of S.S.C. pass.
5.1.6 Previous communication type:

Before the availability of mobile phone people both in rural an urban areas were
habituated to communicate with their relatives via postal way, land telephone, using
vehicle or by physically movement. But after the availability of mobile phone peoples
usage behaviour of other tools of communication has been substantially reduced.
Table 5.6: Distribution of previous communication type

Mode of communication Frequency %
No communication required 2 1.1
Postal way 110 61.1
Vehicle movement 22 12.2
Physical movement 14 7.8
Land phone 31 17.2
No comments 1 0.6
Total 180 100.0
5.2 Economic features of general subscriber:

The analysis and interpretation of economoic features of general subscriber is
essential to see their mobile phone usage status. Now-a-days the usage of mobile
phone by its subscriber does not greatly depends on their economic status. This study
found that the people who do not have source of income uses mobile phone. Because

mobile phone becomes indispensable communication tool for all types of people. This
section covers subscribers professional distribution, income pattern, household
expenditure, savings of the subscriber etc.
5.2.1 Professional status:

It is necessary to classify the respondents according to their professional pattern. For
the convenience of study general subscriber of mobile phone were classified into
several segments. The study considers businessman, service holder, student,
housewife and unemployed person as general subscriber of mobile phone. Because
they hold the majority share of the society.
Table 5.7: Professional distribution of general subscriber

Occupation of subscriber Frequency %
Businessman 93 51.67
Service holder 33 18.33
Student 46 25.56
Housewife 6 3.33
Unemployed 2 1.11
Total 180 100.0
Out of 180 general subscriber, 51.67% were businessman and 25.56% were student.
Even unemployed person (1.11%) uses mobile phone who do not have any source of
income. From this it can be said that usage of mobile phone does not strongly depends
on the economic status of user.
5.2.2 Household expenditure pattern:

The average household expenditure of general subscriber has been increased
tremendously than those of two years ago. The reason is persistent rise in the price
level. Apart from the basic requirement people are incurring a portion of money for
mobile phone communication.
Table 5.8: Household expenditure pattern of general subscriber
Expenditure particulars of subscriber Average cost (BDT) % of total expenditure
Food 4625.06 60.12
Shelter 191.72 2.49
Clothing 734.61 9.55
Health 354.75 4.61
Education 864.72 11.24
Mobile phone 501.50 6.52
Others 420.32 5.47
Total 7692.68 ~ 7693.00 100.0

The table expounds that majority share (60.12%) of household expenditure goes
towards food purpose. For shelter purpose they do not need to incur cost. Because
most of the subscriber possesses their own house. For mobile phone purpose incur on
an average BDT 501.50 and this share is 5.47% of their total household expenditure.
5.2.3 Savings pattern:

The remnant portion of money that rests after deducting all household expenditure
from income is called savings. In case of household, the objective of savings is to use
it for predetermined purpose or for unprecedented situation in future. The margin of
savings in rural area is comparatively lower than urban area.
Table 5.9: Distribution of savings pattern of general subscriber

Monthly savings of subscriber Frequency % Average (BDT)
No savings 61 34
100-200 26 15
200-300 14 8
300-400 13 7
400-500 40 22
500-600 2 1 650.00
600-700 0 0
700-800 0 0
800-900 0 0
900-1000 24 13
Total 180 100.0
From the study area it was found that most of the general subscribers (34%) are
unable to save any amount of money. The number of general subscriber who are
capable to save BDT 400-500 is 40. The number of subscriber who are also capable
to save BDT 900-1000 is higher (24%).
5.2.4 Income pattern:

Income of the respondent is a very indispensable part of the study to get the real
economic scenario of the study area. But no respondents were found to provide their
actual income. For this reason, income of the subscriber has been calculated using the
formula Y = C+S.
Where,
Y = income of the general subscriber
C = Consumption of the general subscriber and
S = Savings of the general subscriber
Therefore, the average income of general subscriber stands as

Average income (Y) = Average consumption (C) + Average savings (S)
From table 5.8
Y = 7693 + 650
= 8343
From table 5.9
From the analysis it was found that average monthly income of the general subscriber
in the study area were BDT 8343. The general subscriber incurs BDT 501.50 from
their monthly income which is 5.47% of their total total household expenditure.
5.3 Subscribers status related to mobile phone service:

It is necessary to subtly analyze the mobile phone usage status of general subscriber.
This includes which operator subscribers prefer most, what are the reason behind such
preference, why they are not changing their existing connection, which hanset they
prefer, why they prefer such handset, subscribers are aware about internet service or
not, for which purpose they use internet service etc.
5.3.1 Preferred telecom operator of the general subscriber:

All the operators are trying their best to generate new subscriber, especially their
present attention towards the rural area. For this reason they are taking different
business strategy. Some operators are in the strategy to strengthen their network, some
are paying concentration what are the expectation of their valued subscriber to them,
some are paying attention towards providing VAS to increase their ARPU (Average
Revenue Per User). The operator can gather more subscriber if they can fulfill the
aspiration of subscriber.

[Fig 5.1: General subscribers preferred telecom operator]
In the study area it was found that out of 180 subscriber, 84 subscribers (46.7%) use
the connection of Banglalink and therefore it ranks the top position of the preferred
telecom operator by subscriber in the rural area. The nearest rival GrameenPhone
holds second position with the subscriber of 66 (36.7%). Citycell and Teletalk holds
third and fourth position respectively.
5.3.2 Reason for choosing particular operator:

There are various reasons on behalf of general subscriber for preferring their service
provider. This study considers three main reason for choosing their service provider
i.e. good network facility; low call rate and better customer service. Because these
three choices generally a subscriber considers before connected with any operator.
Apart from these three category a subscriber can choose a particular operator.
[Fig 5.2: Subscribers reason to choose preferred telecom operator]

5.3.3 Reason for not changing operator:

In most cases it was found that a general subscriber possesses more than one
connection having a single handset. There are several reason behind this. Some
subscriber use double connection because different operator provides different
facilities on different times, some use dual connection upon the availability of
network, some use more than one connection for FnF facility and some use for special
facility of the package. But in most cases the subscribers do not want to change their
operator for low call rate. In the study area it was found that 44.44% subscriber do not
want to change their operator due to low call rate. 18.89% subscriber do not want to
change their operator for special facility of the package.
[Fig 5.3: Subscribers reason behind not changing operator]
Some subscriber wants to change their operator but they can not do so because of
availability of his/her mobile phone number to others. 34.44% subscribers were found
of such category who do not want to change his/her operator for problem of changing
mobile phone number.
5.3.4 Subscribers awareness about internet services:

Internet brings the whole world into the grip of man. One can get access to different
information by means of internet communication. The notion of disseminating the
blessings of ICT to the door step of every citizen can be made possible with the help
of internet. The usage of internet also depends on the handset.

[Fig 5.4: Subscribers awareness about internet service]
All the operators at present providing easy access to internet with compatible handset
of the subscriber. As mojority of the population resides in the rural areas, so
awareness from rural area should arise first. but the matter of grief is that about 112
subscribers are not aware about the internet facility provided by operator. This
quantity is 62.2% of the total subscriber.
5.3.5 Subscribers purpose of internet use:

The purpose of using internet is multifarious. Some people are using it to make their
business more profitable by getting the latest and prompt information, some use it as a
media of communication and some use it for other purposes.
[Fig 5.5: Subscribers purpose of internet use]
In the study area the use of internet for business purpose is very poor. Only 4.5%
people use internet for business purpose, 14.4% for communicating and 81.1% for
other purposes. Other purpose here means that people use it for entertainment
purpose.
5.3.6 Subscribers handset usage status:

Usage of different handset depends on some variables i.e. subscribers income, their
choice, operating manner, availability of spare parts, requirement for internet access,
latest features with the handset et. al. Nokia manufactures handset of that quality
which meets most of the requirement of general subscriber. People wants their
handset will be cheaper, durable, user friendly, and availability of attractive features.
[Fig 5.6: Handset usage status in the study area]
For all these reasons most subscriber use Nokia as their handset. From figure 5.6 it is
clear that 127 subscriber (70.6%) use Nokia handset thereby Nokia becomes market
leader for selling handset. Motorola ranked second position with a far distance from
Nokia. The penetration of other handset company in the study area is more lower as
compared to Nokia.
There are various reason for choosing particular handset. As literacy rate in the rural
areas are lower, most of the subscriber (43%) votes for easy using feature of handset.
26% subscriber use their handset of particular choice because it is available within
their means. 16% subscriber use their particular handset for special features.
[Fig 5.7: Subscribers reason to use specific handset]

Socio-economic status of trader subscriber
Chapter 6: Socio-economic status of trader subscriber
6.1 Socio-demographic features of trader:

To analyze the impacts of mobile phone service on rural people it is inevitable to go
through some relevant issues i.e. the socio-demographic and economic features of the
sample. Socio-demographic information of trader shows their usage of mobile phone
from social perspective. Mostly required variables to analyze sample from social point
of view are distribution of age and sex, family size, educational status etc. The socio-
demographic features of trader related to mobile phone business are as follows:
6.1.1 Age structure:

To start a business generally a minimum age of businessman is required. But to start
mobile phone related business who understands how to operate business does not
require specific age. This study finds age of traders from 16 to 60 years. The average
age of the trader is 30.65 ~ 31. Age pattern of traders can be understood by the
following table:
Table 6.1: Age distribution of trader

Traders age Frequency % Average age
16-25 32 26.7
26-35 63 52.5
36-46 19 15.8 30.65 ~ 31
46-60 6 5.0
Total 120
Most of the traders (62.5%) are within the age group of 16-30 years. The number of
traders within the age group 31-45 years is 39 and the age group more than 31-45
years is only 6.
6.1.2 Sex distribution:

To start or to continue the business related to mobile phone does not depend on the
gender. The female communities were first entitled to operate mobile phone business
(M2M) by GrameenPhone. GrameenPhone provided village phone to those women
who have transaction in Grameen bank. Later on, many female subscribers let their
village phone as rent basis to other and considering this business as a good source of
income many male person start this business.

Table 6.2: Sex distribution of trader

Sex Frequency %
Male 118 98.3
Female 02 1.7
Total 120 100.0
In the study area it was found that the majority share (98.3%) of mobile phone
business are performed by male businessman and rest (1.7%) are performed by
female.
6.1.3 Family size:

Family size is an important variable that influence the expenditure pattern and
business operation of the trader. Traders with a big family size incur higher cost for
household expenditure and have to secure good source of income. So, there is a
relationship between family size of the trader and their business and household
pattern.
Table 6.3: Family member distribution of trader

Family member Frequency %
2-5 71 59.2
6-9 41 34.1
10-12 8 6.7
Total 120 100.0
In the study area it was found that 59.2% traders family size are between 2-5. 34.1%
traders’ family size are between 6-9 and the number of trader with large family size
(10-12) is only 8.
6.1.4 Educational status:

Good educational background increases the efficiency level of the businessman which
acts as supporting power to run his/her business effectively. Since our economy does
not allows good job to the candidates having academic qualification of S.S.C. or
H.S.C. pass, a significant number of people tends to start this business which
incorporates small investment as compared to other prestigious business. This
business involves handling of handsets of various types and the various services
provided by the telecom operators, so educational background considers as extra
benefit. Subscribers in the study area are also educated as they operate various options
in the handset including web browsing. Educational pattern of trader in the study area
are as follows:
Table 6.4: Distribution of educational status of trader

Literacy rate (Trader) Frequency %
Illiterate 3 2.5
5 pass 0 0
8 pass 25 20.8
S.S.C. 36 30
H.S.C. 41 34.2
Degree/hons. 13 10.8
M.A. 2 1.7
Others 0 0
Total 120 100
From the study area it was found that 34.2% trader have their educational background
of H.S.C. pass. 30% traders have the academic qualification of S.S.C. pass. 10.8%
trader’s academic qualification is graduation. Although M.A. pass traders also found
in the study area but their number (2) is very insignificant.
6.2 Economic features of trader:

Analysis of economic features of trader is significant to show their various business
achievements. Recently trader’s achievement from this business does not cope with
their various household and business requirements. This section mainly covers
trader’s household expenditure, business type, initial capital, income pattern, savings,
profit of the subscriber etc.
6.2.1 Business type:

There are different types of mobile phone related business. Initially this business was
confined to selling prepaid card and M2M service but later on there is some changes
in its dimension. Some businessmen are providing only M2M service. The number of
trader who is providing ERS and M2M service along with their grocery shop even
with pharmacy is 19 (15.83%). In the study area most of the businessmen were found
providing M2M and ERS service (25.83%). The number of mobile phone accessories
seller along with M2M and ERS seller is 22 (18.3%). The business type of traders in
the study area can be comprehensible by the figure 6.1:

[Fig 6.1: Business type of trader]
6.2.2 Household expenditure pattern:

At present the inflation rate of Bangladesh has exceeded all the previous record. Most
of the traders are of opinion that their average household expenditure has increased at
least two times than those before two years.
Table 6.5: Household expenditure pattern of trader

Expenditure particulars of trader Average cost (BDT) % of total expenditure
Food 4651.67 59.37
Shelter 65.83 0.84
Clothing 771.67 9.85
Health 536.46 6.85
Education 948.33 12.11
Mobile phone 442.42 5.65
Others 418.5 5.33
Total 7834.88 ~ 7835 100.0
From the table it is found that around 59.37% expenditure incurred for food purpose.
Most of the household is owned by the trader themselves. For education purpose of
their children they incur 12.11% and 5.65% cost for mobile phone purpose from their
total household expenditure.
6.2.3 Savings pattern:

Savings is great source to reinvest in the same business or other enterprise. Basically
the businessman wants to save some portion of his/her profit for further investment.
But at present mobile phone businessman are not able to secure a handsome profit
from the business that they did in previous.

Table 6.6: Distribution of savings of the trader

Monthly savings of trader Frequency % Average savings BDT
100-200 24 20.0
200-300 9 7.5
300-400 15 12.5
400-500 20 16.7
500-600 0 0
600-700 1 0.8 600.00
700-800 1 0.8
800-900 0 0
900-1000 7 5.8
Dissavings 43 35.8
Total 120 100
Economic status of traders show that 35.8% traders are in dissavings and for others
savings margin is poor. However, 16.7% traders are saving BDT 400-500 per month
and in case of subscriber the savings margin is comperatively higher than trader i.e.
BDT 400-500 is saved by 22% subscriber, BDT 900-1000 is saved by 13%
subscriber. The reason is lowering the commission rate of ERS and availability of
M2M and ERS service. Furthermore inflation has been added in recent time.
6.2.4 Income pattern:

Traders income pattern is very much essential to analyze traders economic status.
Traders in the study area did not provide their monthly income statement. For this
reason, income of the trader has been calculated using the formula Y = C+S.
Where,
Y = income of the trader
C = Consumption of the trader and
S = Savings of the trader
Therefore, the average income of the trader stands as
Average income (Y) = Average consumption (C) + Average savings (S)
From table 6.5
Y = 7835 + 600
= 8435
From table 6.6

6.2.5 Investment pattern:

Return from the business greatly depends on capital employment. Usually large
investment does not require in this business. However, it varies with the size of
business i.e. some businessman runs two or three types of business at a time. As for
example, the initial investment of the that trader will be higher who is simultaneously
running M2M, ERS, handset and accessories and selling of SIM business.
Table 6.7: Distribution of investment pattern of trader

Initial capital (BDT) Frequency %
3000-10000 50 40.8
10001-30000 39 31.7
30001-100000 26 23.3
100001-150000 5 4.2
Total 120 100.0
From the study area it was found that the amount of capital required to start this
business on an average is BDT 15000. This figure is required when somebody wants
to start only M2M and ERS business. However, additional capital will be required for
initiating selling of SIM card, handset and mobile phone accessories and the return
will be added accordingly.
6.2.6 Profit pattern:

Profit is the difference between an initial outlay and the subsequent amount earned.
Ensuring handsome profit largely depends on the capital utilized as well as on
business efficiency. Earlier M2M and selling mobile phone prepaid card was limited
but at present this business has been greatly scattered here and there around the
country. In addition, introduction of ERS service benefits the subscriber but the profit
margin has been substantially reduced in comparison to the profit margin from selling
mobile phone prepaid card. Before the introduction of ERS service, a trader earned
BDT 15 from selling prepaid card of BDT 300 but after providing ERS service the
same trader earns BDT 8.10 from selling BDT 300 which refers that their profit
reduces to 46%.

[Fig 6.2: Profit of traders]
Among 120 traders the monthly profit of 26.7% traders are BDT 3001-4000 and BDT
2001-3000 earned by 25% trader. In previous this profit margin was satisfactory but at
this present inflationary period the traders are not in a position to fulfill their basic
requirements. Many of the businessman now taking this business as a supporting to
their other business i.e. grocery or other departmental store.
6.3 Business outlay and revenue earnings:

6.3.1 Heads of expenditure:
It is necessary to calculate the various expenditures associated with the business.
Otherwise the calculation of profit will not give the actual result. For ensuring greater
profit from the business, each and every businessman tries to lower its different fixed
and operating cost to the minimum possible level. In this study three heads of
expenditure have been taken into consideration that roughly incorporates in a
business. They are
a) Rent of the shop
b) Salary of the employee, and
c) Utility payment
6.3.1.1 Rent of the shop:

It depends on the ownership pattern of shop by the trader. In the study area, it was
found that the rent of shop varies from BDT 100-1500 depending on the location and
space of the shop. The rent of shop is comparatively higher in the populous market
place than other places.

Table 6.8: Distribution of monthly rent of the shop

Monthly rent of the shop Frequency % Average rent payment (BDT)
0 44 36.7
100-500 36 29.9
501-1000 36 29.9 370.58 ~ 371.00
1001-1500 4 3.5
Total 120 100
From the study area it is found that most of the shop is owned by the trader
themselves. Out of 120 traders, 36.7% traders do not incur any cost for rental purpose
for their shop. 29.9% traders incur rent for the shop worth of BDT 100-500 to 501-
1000 respectively. On an average the traders pay rent worth of BDT 371 for their
shop.
6.3.1.2 Salary of the employee:

The less is the operating cost of the business the more will be the profit from business.
Basically to run such business no employee ius generally required. Employee is
required when businessman runs mobile phone business as a suppoting business along
with grocery and other departmental store.
Table 6.9: Distribution of monthly salary of employee

Employee Salary Frequency % Average salary payment (BDT)
0 91 75.8
500-1000 7 5.9
1001-1500 7 5.9
1501-2000 4 3.4
2001-2500 2 1.7 500.00
2501-3000 4 3.4
3001-3500 2 1.7
3501-4000 1 0.85
4001-5000 2 1.7
Total 120 100.0
This study found that 75.8% traders are running their business without having any
employee. Nevertheless, if any trader employs employee in the rural area the salary of
that employee varies from BDT 500-1500.
6.3.1.3 Utility expenses:

Utility expenses is higher in the urban area than rural because continuing business
under the city corporation incorporates some extra cost i.e. maintaining trade licence,
paying VAT and tax to the government exchequer, higher electricity cost for
commercial area of the city. But in rural areas the businessman does not need to
consider these issues. They have to pay lower electricity bill and tax (if he/she falls
under tax paying criteria) to the pourosahva.
Table 6.10: Distribution of utility expenditure of the trader

Utility payment Frequency % Average utility payment (BDT)
100-300 90 74.7
301-600 26 22.5
601-1500 4 2.8 260.46 ~ 260.00
Total 120 100.0
In rural areas monthly electricity bill is lower than urban areas. 74.7% traders pay
utility bill within the range BDT 100-300. BDT 301-600 has been paid by those
traders who operates larger business or more than one business concurrently.
6.3.2 Revenue earnings:

While dealing with mobile phone related trade, it is necessary to find out the various
sources of revenue that a businessman can easily generate. Revenue from the business
is dependent on the type and volume of business. Different types of business assures
different profit margin to the trader i.e. profit margin for M2M will not be equivalent
to that of earnings from ERS or earnings from ERS and M2M will not become
equivalent to that from selling handsets and mobile phone accessories. This study
concentrates revenue earnings of businessman from selling of SIM card, M2M, ERS,
handset and mobile phone accessories.
6.3.2.1 Revenue from ERS:

Before two to three years ago the only way to recharge prepaid mobile phone with the
help of scratch card. The scratch card was then worth of BDT 150 to BDT 2400. But
then many subscriber were not in a position to purchase prepaid card of at least BDT
150 at a time.
Table 6.11: Distribution of earnings from ERS

Monthly earnings from ERS Frequency % Average earning (BDT)
(BDT)
0 9 7.5
50-500 10 8.3
501-1500 44 35.6
1501-2500 27 22.5 1855.04 ~ 1855.00
2501-5000 28 23.2
5001-6000 2 2.9
Total 120 100.0

Realizing the inconvenience of the subscriber GrameenPhone first introduced ERS

service from where subscriber can recharge their prepaid connection from BDT 10 to
BDT 10000 and can pay post paid bill through ERS upto BDT 50000. But inception
of ERS greatly benefits the subscriber. Because, this reduces the pressure of
recharging their prepaid account of at least BDT 300. But, by selling prepaid card of
BDT 300, they traders earned BDT 15 as profit but the ERS service provide them
2.70% profit which is 46% lower than profit from prepaid card. Although greater
profit is currently earned by trader by selling more ERS as the subscriber base is
gradually increasing of all operator.
6.3.2.2 Revenue from M2M:

The name of village phone is and will be intertwined with the M2M service when it
was like a day dream to make a wireless phone call from a rural area. Many women
became completely self-dependent through the business of mobile phone. Gradually
this service comes to the urban area and also becomes a source of revenue for many
people. Banglalink, Aktel, Citycell and other operator provided similar package with
distinct product features followed by GrameenPhone.
Table 6.12: Distribution of earnings from M2M

Monthly earnings from M2M Frequency % Average earning (BDT)
(BDT)
0 18 15
100-500 46 38.1
501-1000 34 28.5
1001-1500 11 9.2 747.98 ~ 748.00
2001-3000 11 9.2
Total 120 100.0
But earnings from M2M is also not profitable because the operators have substantially
reduced their tariff so that a subscriber who were not subscriber before some months
ago becomes subscriber of any opertor and does not require to go to phone shop to
make phone call. In addition, most operators currently providing promotional reduced
tariff during 8/9 am to 5 pm. Only 9.2% trader earns profit of BDT 1001-1500. But in
previous the earnings from M2M business were used for the sustenance of many
family.
6.3.2.3 Revenue from selling handset:

Revenue from selling handset is another major revenue earning source. But this
business requires generally higher amount of capital deployment. Although the
earnings from selling handset is lucrative but the due to insufficiency of capital many
businessman can not start this business in the rural areas.
Table 6.13: Distribution of revenue from selling handset

Monthly earnings from selling handset Frequency % Average earning (BDT)
(BDT)
0 104 86.7
600-3000 9 5.8
7000-10000 7 7.5 967.50 ~ 968.00
Total 120 100
The above table shows that out of 120 trader under consideration 104 trader are not
involve in selling handset and those who are currently engaged in this business
ensures a very handsome profit.
6.3.2.4 Revenue from selling mobile phone accessories:

Most of the handset manufacturer company provides warranty/guarantee to their
products for certain period. After the expiry of that period there may be disturbance in
that electronic goods. In most cases the subscriber requires to change their handset
battery or mobile charger or casing or keypads. This business also requires
considerably higher investment (less than handset business).
Table 6.14: Distribution of revenue from selling mobile phone accessories

Monthly Earnings from selling mobile Frequency % Average earning
phone accessories (BDT)
0 71 59.2
100-1000 30 24.8
1001-2000 14 11.6
2500-3000 2 1.6 513.50 ~ 514.00
5000-6000 3 2.8
Total 120 100.0
Table 6.14 shows that a great portion (59.2%) of trader is not engaged in this
business. But the trader who is engaged in this business earns handsome profit. BDT
1001-2000 earned by 11.6% trader.
6.3.2.5 Reinvestment pattern of trader:

Reinvestment in the business is a source of maximizing business revenue.
Reinvestment in the business can be made from businessman’s previous savings or
from taking debt from any financial institution. Since, the traders at present can not

ensure good profit as they did earlier so most of the traders can not reinvest in their
business. In addtion, 35.8% traders are in dissavings position.
Table 6.15: Distribution of reinvestment pattern of trader

Amount of reinvestment (BDT) Frequency %
0 94 78.3
200‐1000 11 9.2
1001‐2000 8 6.7
2001‐3000 3 2.5
3001‐5000 4 3.3
Total 120 100.0
[Source: Field survey: 2008]
From the table 6.15 it was found that out of 120 traders, 94 traders do not have the
ability to reinvest in the business. Only 4 trader having the ability to reinvest in the
business worth of BDT 3001-5000 which is only 3.3% from total trader.

Impact analysis of mobile phone service on rural people
Chapter 7: Impact analysis of mobile phone service on rural people
One of the major objectives of this study is to derive the impacts of mobile phone
services on rural people. There is some impact of mobile phone who becomes in
touch with it whether it is positive or negative. The impact of mobile phone service
can be analyzed from social and economic standpoint both for general subscriber and
trader.
7.1 Impact of mobile phone: General subscriber perspective

Since bulk share of subscriber base holds from general subscriber class, so their issue
of merits and demerits is a matter of great concern. From social and economic point of
view, the positive and negative impacts of mobile phone services are expounded
below:
7.1.1 Positive economic impact:

Positive economic impact of mobile phone service is very much crucial. By analyzing
positive impact it will be easier to show the benefits of mobile phone.
7.1.1.1 Mobile phone reduces communication cost:

The ultimate consequence of providing mobile phone service is to derive optimum
level of satisfaction and convenience. Cellular phone has entirely changed the mode
of present communication behaviour. Within a shortest possible of time and with low
communication cost people are passing along with their relatives and trade partners.
[Fig 7.1: Transport cost of subscriber before mobile phone use with relatives]
Figure 7.1 shows that before taking mobile phone as a tool of communication, BDT
400-500 were incurred as cost for 51 subscribers to communicate with relatives. BDT
200-300 were incurred for 44 subscribers per month. But the figure 7.2 shows how
mobile phone economically benefits subscriber to communicate with their relatives.
[Fig 7.2: Transport cost of subscriber after mobile phone use with relatives]
After taking mobile phone the cost of communication with relatives has been
substantially reduced. In previous, when BDT 400-500 were required for 51
subscribers, this number has been reduced to 6. In the figure 7.2, BDT 100-200
shows a great mark because a great portion of previous high cost were reduced to
BDT 100-200.
7.1.1.2 Mobile phone benefits businessman:

The era of much time consuming has been abolished through the use of mobile phone.
For rapid and smooth communication, the popularity and usage of mobile phone in
business ambience is gradually increasing.
[Fig 7.3: Transport cost of subscriber before mobile phone use with trade partner]
In support of making business easier and more fruitful many giant or group of
companies or even multi national companies (MNCs) become corporate client of
different mobile phone companies. By becoming corporate client, those companies
enjoy some distinct VAS from their preferred operator. In the figure 7.3, transport
cost 0.00 indicates that 117 subscriber do not have any business connection. The
number of subscriber who incurs cost worth of BDT 400-500 is 21.
But the figure 7.4 indicates that the number of subscriber has been reduced to 5 which
was previously 21, who bears cost BDT 400-500 when they did not have any mobile
phone. The number of subscriber (7) previously using BDT 900-1000 per month has
also been reduced to 2. The number indicating 0 refers to those subscribers who do
not have any mobile phone related business connection. BDT 100-200 shows higher
than previous state because higher transport cost BDT 400-500 has been reduced to
BDT 100-200.
[Fig 7.4: Transport cost of subscriber after mobile phone use with trade partner]
7.1.1.3 Mobile phone improves product marketing:

Marketing becomes an integral part of modern business. Due to the problem of
effective marketing system in most cases the farmer can not get apt price of their
agricultural products. With the help of mobile phone, businessman became informed
about what, when and how the product will be reached to the end user. The
probability of exploitation of farmer by the middleman also reduced by the services of
mobile phone.
[Fig 7.5: Transport cost for product marketing before mobile phone use]
The figure 7.5 shows that, before using mobile phone 10 subscriber costs BDT 400-
500 for marketing their product. BDT 300-400 costs for 7 subscribers for the same
purpose.
But the figure 7.6 shows that the number of subscriber has been reduced to 1 which
was previously 7 subscribers for marketing the product when associated cost for the
same purpose was BDT 300-400. The number of subscriber whose cost for marketing
was BDT 400-500 has been reduced to cost BDT 100-200.
[Fig 7.6: Transport cost for product marketing after mobile phone use]
7.1.2 Positive social impact:

Now-a-days the role and impact of telecommunication service in increasing social
welfare has been highly realiazed. Greater service of mobile phone increases peoples
mobility in their respective area and ensures social unity. As still fixed phone is like a
day dream, people are rapidly switching to their better alternatives i.e. mobile phone.
Most of the social impacts of mobile phone are as follows:
1. Mobile phone increases social cohesion.
2. It helps users with low education and literacy to be connected.
3. Helps in natural disaster.
4. Mobile phone promotes social responsibility.
7.1.2.1 Mobile phone increases social cohesion:

Mobile phone promotes social cohesion between family members and in the society.
It allows rural people to remain united togather even with family members who are far
away from their place of residence within short time. This fact becomes more suitable
when family members stays in abroad whether temporarily or permanently helps to
remain intact. As it was shown in prevoius chapter that at present people can
communicate with their relatives incurring small cost with the time when they didn’t
have any phone communication. It simply reduces the cost of transport to
communicate with relatives a greater extent. Figure 7.7 and 7.8 shows subscribers
comment on the role of mobile phone in increasing social cohesion and social status
respectively.
[Fig No. 7.7: Mobile phone increases social cohesion] [Fig No. 7.8: Mobile phone increases social status]
In the study area it was found that 88 (48.9%) respondents are in strong opinion and
60 (33.3%) repondents simply agrees that mobile phone increases social cohesion
between family members as well as in the society.
In case of increasing social status, 62 (34.4%) respondent disagrees with the statement
that mobile phone increases social status while 50 (27.8%) respondent agrees that it
increases social status.
7.1.2.2 Mobile phone helps user with low education and literacy to be connected:
Usage of mobile phone has no limitation to use irrespective of subscriber whether
he/she is poor or rich even educated or illeterate. Easy using features i.e. handset with
user friendly allows rural user to use even sophicticated handset. Nokia is the first
handset manufacturer which provides Bengoli option in the mobile phone to use it
more conveniently by people with low education and literacy. Apart from the handset
manufacturer, the telecom operators in Bangladesh recognise the importance of
broadening the accessibility of their services. For example, Aktel has recently
pioneered and launched a Bengali language SMS service. In addition, Warid telecom
is the first mobile phone operator in Bangladesh which is providing all sorts of VAS
in Bengoli if the handset is of that compatibility.
7.1.2.3 Mobile phone service in natural disaster:

At the time of any emergency issue, mobile phone becomes essential component to
communicate with others. It helps family members to remain in close touch with
others at the time of natural disaster. It allows to communicate with relief workers,
relief provider and others. In disaster prone area mobile serves by the following ways:
a) Early warnings: Mobile phone companies though their SMS notification

service can provide early warnings about the imminent disaster to the people
of disaster prone area. It can also state the probale impact of that disaster so
that people can realize how devastating the disaster is. As for example, Warid
teelcom through their SMS notification service warns about SIDR on 15th
November, 2007 which says to take nearer safe shelter and all sorts of
precautionary action. Such timely spread of information in response to a
disaster can save thousand of lives.
b) Recovery and rebuilding: Mobile phone is an effective component to diffuse
information rapidly to where it is most urgently needed. It greatly helps to the
recovery team and they can boost their workforce as per the situation calls for.
Mobile phone companies are socially liable to repair or reinstall a new base
transceiver station (BTS) as soon as possible so that the recovery, rebuliding
and rehabilitation work will not hamper even for a single moment. It is much
easier to repair a wireless base station than hundreds of fixed-lines.
7.1.2.4 Mobile phone promotes social responsibility:

At present mobile phone company has been contributing a great deal in our economy.
Besides continuing their business, they have some responsibilities towards the society.
More or less all the companies are paying concentration towards the society.
i) “You first!” and “making a difference” is the slogan of Banglalink. Banglalink
always considers what are the requirements of their valued subscriber and tries
to serve them best. This company is considered as that mobile phone operator
in our country which makes mobile phone affordable within the reach of all
people and the companies presence will be there wherever is the effort of
making change in the lives of general people.
ii) GrameenPhone is commited to deal with customers, employees, suppliers and
government in a socially, ethically and environmentally responsible manner.
GrameenPhone also participates in socially responsible activities like
education in ICT, economic empowerment of women, health, safety, the
environment and the preservation of heritage.
iii) Aktel’s corporate social responsibility is based on four core values. These are
enlightened through education, assure better health, protect environment and
fight with poverty. As a part of CSR (Corporate Social Responsibility) Aktel
extended their hand with Chittagong Skills Development Centre (CSDC) and
Underprivileged Children’s Educational Programme (UCEP-Bangladesh).
Aktel’s responsibility also goes to build orphanages and renovate mosques all
across the country. City beautification activity is also another responsibility
towards the city.
Other telecom companies are also involved in CSR activities who have joined their
hands with different GOs and NGOs to provide various services to the haves not sect
in the society.
7.1.3 Negative economic impact:

Every technological innovation involves some demerits along with its greater benefits
if it not utilized in the prescribed way. In case of our country where consciousness is
not accompanied by the relentless usage of telecommunication service, there may

even appear acute problem. Many poor people use it as an obligatory communication
medium though there economic status does not allow them to use in the real sense of
the term because a significant portion of their income has been spend to meet other
basic requirement.
7.1.3.1 Young generation wastes their valuable money:

Survey covered on 180 subscribers found that out of 180 consumers around 43.89%
subscribers agreed very strongly, 31.11% subscribers simply agreed that young
generations are wasting their valuable money by excessive using mobile phone. The
number of subscribers who disagree with this statement is lower (16.11%) than those
who agreed. They have also the comments that in this inflation period it is not feasible
for young generations to use excessively mobile phone other than only important
purpose.
[Fig No: 7.9: Mobile phone causes wastage of money by young generation]
[AS=Agreed Strongly, AFS=Agreed Fairly Strongly, A=Agreed, D=Disagreed,
DFS=Disagreed Fairly Strongly, DS=Disagreed Strongly, DK=Don’t Know]
7.1.3.2 Young generation wastes their productive time:

The time of student life seems to be most valuable for all juveniles. According to the
opinion of guardians at the present time young generations are merely wasting their
productive time for trifling issues i.e. for making unnecessary phone calls. More
specifically most of the operators offers special reduced tariff during off-peak and
super off-peak hour (usually from12am-7/9am tariffs are BDT 0.25/0.29/0.30/0.60).
Around 33.89% subscribers are in strong opinion and 35.00% subscriber simply
corroborates this claim and only 15.6% subscriber disagrees with this claim.
[Fig No. 7.10: Mobile phone causes wastage of time by young generation]
[AS=Agreed Strongly, AFS=Agreed Fairly Strongly, A=Agreed, D=Disagreed,
DFS=Disagreed Fairly Strongly, DS=Disagreed Strongly, DK=Don’t Know]
7.1.4 Negative social impact:

Apart from most of the positive social and economic impacts the usage of mobile
phone incorporates negative social aspects also.
7.1.4.1 Mobile phone creates problem among family members:

There is another problem with using mobile phone that it creates problem within the
family members. In fact there are some reasons for this. Lack of mutual trust,
doubting for unexpected use etc. are mentionable. There creates quarrel between
guardians and off-springs, between husband and wife. But as it increases social
cohesion, so the majority of the respondent disagree with the statement that mobile
phone increases family problem between family members.
[Fig No. 7.11: Mobile phone creates family problem]
Figure 7.11 also states that 45% subscriber disagreed with the statement. However,
21% subscriber thought that usage of mobile phone increases or creates problem
among family members.
7.2 Impact of mobile phone: Trader subscriber perspective
7.2.1 Negative economic impact:

Before the introduction of ERS service most of the traders secured a very good profit
from their business. But at present for two reasons there is a declining tendency of
traders about this business i.e. too much availability of this business and lower
commission from ERS service.
[Fig No. 7.12: Traders response to this business]
Figure 7.12 shows that 40.83% traders response to this business is medium i.e. they
neither strongly supports this business nor they can abandon this business having no
other better business option. 37.5% traders’ response to this business is very low.
7.3 Physical problems using mobile phone:

As a rational and social element of society mobile phone subscribers will have to
think about its physical impacts on human body. Out of 180 subscribers under
consideration around 43.89% and 31.11% agrees that young generations are wasting
money by excessive using mobile phone. They are also in opinion that about 33.89%
and 35.00% firmly agrees that young generations are wasting their productive time by
excessive using mobile phone. As the villagers know that their off-springs are wasting
time and money but they are not quite familiar with what are the detrimental effects of
microwave radiation exerts from base transceiver station (BTS) on mobile phone user.
Research on the physical impact of mobile phone reveals by developed countries

shows very alarming signals for human health. Let us see what the recent researches
tell in this regard.
i) The microwave radiation from mobile phones has harmful effects at intensity
levels far below the official safety threshold values. This is confirmed by a
considerable body of evidence. The radiation of the mobile phones is adapted
to these far too high threshold values. This means that your mobile phone
radiation is strong enough to exert harmful influences on your brain and other
tissues even at normal usage.
ii) A German study found a threefold higher frequency of cancer among people
living in the vicinity (400 m) of a GSM base station compared to people living
further away from the antenna. The risk for mammary cancer was 3/4 times
greater and the average age of contracting this disease was considerably lower,
50.8 years than in the control group (69.9 years). The frequency increased also
the longer people had been exposed to the radiation. The study covered a ten
year long period (1994-2004), starting the year after the installation of the base
station. Before the installation of the base station, there was no difference in
cancer incidence between people living in the vicinity of the (future) base
station and the control area.
iii) Recent research also exerts ample and unequivocal evidence that microwave
radiation damages DNA. It has also been established beyond doubt in
experimental studies that DNA damage increases cancer risk. This study adds
to several others indicating that the DNA damage from microwaves brings
about a considerable increase of cancer risk among people exposed to the
radiation.
iv) Researchers from the “Radiation and Nuclear Safety Authority” in Finland
compared the mobile phone use of 1,521 people with brain cancer (glioma)
with that of 3,301 healthy people. When they looked only at people who had
used a mobile for 10 years or more, they found that they were 39 per cent
more likely than average to get a glioma on the side of their head where they
held their handset.
v) Hungarian scientists have found 30% sperm decrease in intensive mobile
phone users. In addition the sperms were damaged.
vi) Three European research groups in separate studies have found an increased
risk of brain tumors in people who have used the phones for 10 years or more.
Two of the studies found a correlation between the tumor's location and the
side of the head where people reported they held the phone. One also suggests
the greatest risk is in people who began using the phones before age 20. And it
is known to all that this brain tumour eventually turns toward brain cancer.
vii) Nerve cell damage in mammalian brain after exposure to microwaves from
GSM mobile phones. One will be horrified about the impact of excessive use
of mobile phone if he/she will see the status of his/her brain between two
periods (before and after mobile phone use). Figure 7.13 shows the
consequence of mobile phone use between two periods on human brain:
[Fig 7.13: Adverse effect of BTS radiation on human brain]
Exposed animals, were much more likely to have albumin leaking from blood vessels
in inappropriate locations. This shows as dark dots in the exposed brain above on the
right.
So young generations should be very restrictive in case of using mobile phone as
prescribed by the European research that there is great possibility of brain cancer who
starts mobile phone use before 20 years age.
Apart from social and economic problems associated with mobile phone use the users
should also concentrate on its physical demerits because the user will be the ultimate
victim of this catastrophe.
Summary of findings

Chapter 8: Summary of findings
It is necessary for any research work to show its various findings in a nutshell.
Summary of findings helps reader to realize the most outstanding achievement from
the study and the actual scenario of the study area. Key findings from the study area
are as follows:
1. 25% subscribers communication cost with their relatives has been

substantially reduced from BDT 400-500 to BDT 100-200 after mobile phone
use.
2. 9.5% subscribers communication cost with trade partners has been reduced
from BDT 400-500 to BDT 100-200 after mobile phone use.
3. 3.4% traders product marketing cost has been reduced from BDT 400-500 to
BDT 100-200 after mobile phone use.
4. 48.9% subscriber strongly believes that usage of mobile phone enhances social
cohesion in their society.
5. 45.6% subscriber disagreed that usage of mobile phone creates problem
among family members. While 21.1% subscriber agreed that usage of mobile
phone creates problem among family members but this number is less than
those who disagreed with this statement.
6. Since a great portion of subscriber can not operate their handset properly, they
(42.2%) use their handset for being user friendly.
7. 62.2% subscriber in the study area do not know about the internet service
provided by their operator.
8. Those (112 out of 180 subscriber) who knows about internet service use it for
entertainment purpose (81.1%).
9. 33.9% subscriber strongly confess that young generations are wasting their
time especially at night by using mobile phone.
10. 43.9% subscriber agreed strongly that young generations are wasting their
money using mobile phone.
11. In the study area 46.7% respondent is the subscriber of Banglalink, 36.7% of
Grameen Phone, 11.7% of Citycell, 2.2% of Teletalk, 1.7% of Aktel and 1.1%
of Warid.
Summary of findings

12. In rural areas, the 47.8% subscribers use their preferred connection for
network facility, 40.6% for lower call rate and 7.2% for better customer care
service.
13. 78.3% trader does not deserve the capability to reinvest in their business.
14. 37.5% trader choose mobile phone related business as a better job from rural
perspective.
15. 40.8% traders put their view in medium manner about response to this
business by themselves. 37.5% traders have low response to this business.

Recommendations and conclusion

Chapter 9: Recommendations and conclusion
9.1 Recommendations:
Science and technology makes general peoples life easier than ever. Yet it has some
obstacles due to which the poor and grass root sect can not become the expected
beneficiary from this service. Here recommendations have been outlined regarding
improvement of telecommunication service in rural perspective which will both serve
the rural people as well as service provider. As every problems have specific
solutions, the problem found related to mobile phone also have some solution. In
order to lessen the misuse of mobile phone, Ministry of Posts and Telecommunication
as per the recommendation of BTRC makes mandatory to re-register their connection
if it was purchased before February 28, 2006. Some of the recommendations are as
follows:
1. Though the present tariff is lower as compared with tariff before two or three
years ago, the mobile phone tariff rate should be redesign with a view to
accelerating greater access of rural people into mobile telephony system.
2. There should be very well defined rules and regulations in case of
purchasing new mobile phone connection for young generations so as to
reduce the misuse of mobile phone related social problems.
3. The commission profit for the ERS service provider should be more. Before
the inception of ERS, the traders got BDT 15 for selling prepaid card of
BDT 300, but by providing ERS service of BDT 300 gives them commission
of BDT 8.10. There are lacs of trader in the villages serving the people but
can not assure their expected return.
4. There is a diminishing tendency in ERS or M2M business as the profit
margin is lower in comparison with investment and now this business has
established here and there. So, the operators should pay more attention
towards the interest of traders.
5. The mobile phone companies should withdraw their reduced off-peak tariff
at late night. This causes loss of their time and harmful for health to the
young generations and If the operators wish to provide lower tariff then they
can provide it in day time when general people requires it most.
The socio-economic impact of mobile phone service on rural people in Bangladesh 66


6. Most of the villagers are not acquainted with internet service on mobile
phone. Study shows that 62.22% out of 180 subscriber in rural areas are not
aware about the internet service. The service provider should take proper
initiative to provide their all services at the door step of subscriber.
7. In the competitive telecom market VAS is the another good source of
revenue for telecom operators. But people in rural areas do not know what
are VASs provided by mobile phone operators. There are health service
from GrameenPhone, Namaz alert service from Banglalink and the great
collection of VAS from Warid. Operators should take steps so that people
frequently avails those VASs.
8. Around 20% subscribers were found that they use more than one connection
having single handset. They do so for reduced tariff in different times.
Technical experts are in the opinion that it causes problem to handset by
frequently switching off and switching on of mobile phone. So, tariff should
be fixed within the ability of all sects of valued subscriber.
9. Telecommunication service in Bangladesh involves no fixed-to-mobile fees
from BTTB to the mobile operators and involves above-cost mobile-to-fixed
interconnection fees. This interconnection rate is higher in Bangladesh
amongst Asian countries. These interconnection rate should be reduced so as
to making more phone calls to fixed phone.
10. There is artificial restriction on making international call. Every
international calls are gone through BTTB. By selling connections, the
mobile operators create opportunities for the expatriate community to call
home, thereby generating revenues for Bangladesh. By denying the
operators due reward, this reduces their incentives to increase penetration.
So, the Ministry of Posts and Telecommunication Affairs should redesign
the international call tariff for frequent access by every people.
11. The harmful websites should be controlled using powerful software so that
those can not be viewed to the young and other people through internet use
by handset.
12. Further study in this issue will be needed to derive maximum benefits from
mobile phone service both for the economy and rural people.


9.2 Conclusion:
In this study an attempt is made to understand and interpret the socio-economic
impacts of mobile phone. The empirical findings obtained from the field survey are
used to analyze the socio-economic status of general subscriber and trader subscriber.
National survey in this issue has not been conducted yet. But this study has revealed
that their communication pattern has been changed from the period when they did not
owned any mobile phone.
Study from rural perspective about mobile phone service exerts the overall mobile
phone usage scenario of the country. Mobile phone service is a great windfall for the
people of our country. It has completely changed the communication behaviour for all
class of people who requires it. One the one hand it reduces time requirement to
communicate and communication cost on the other. Though mobile phone service in
our country has been improved than two to three years ago but the participation from
rural areas has not increased remarkably. People from different economic strata used
it irrespective of higher call rate in comparison their income and other household
expenditure. However, being poor economic base, the general subscriber incurred
6.52% and trader subscriber 5.65% cost for mobile phone purpose from their
household expenditure. In 2005 mobile penetration rate in Bangladesh was at 6% and
now it has been growing rapidly. Higher mobile penetration increases and will
increase employment opportunity, social cohesion, productivity in different sector
which in turn increase GDP.
Due to various attractive offers provided by the operators there becomes a great
possibility of misusing this communication tool. Since the number of subscriber from
student community is gradually increasing so both the government and the guardians
should be very careful regarding the unexpected misuse of mobile phone. In a rural
based economy to ensure more revenue from subscriber, the operators should have to
give attention to the expectation of rural people by providing VASs that will meet
their day-to-day information requirement. As lacs of mobile phone related
businessman has been continuing their business which helps the operators to provide
the service to the grassroots so the operators should have to preserve traders’ interest
for the sake of traders and for their own interest. The working procedure of operators
should be very much transparent and be properly regulated by BTRC.

References

References
Bangladesh Bureau of Statistics, 2006, Bangladesh Population Census, 2001,
Zila: Khulna Zila Series. Government of the Peoples Republic of Bangladesh,
Dhaka: Statistics Division, Planning Commission.
Bangladesh Bureau of Statistics (2008). Internet address:
www.bbs.gov.bd/zdetail.php.htm. (accessed March 15, 2008)
Bangladesh ICTD4 Network (2006): Internet address:
http://bangladeshictpolicy.bytesforall.net/?q=blog
Bangladesh Telecommunication Regulatory Commission (2008). Internet
address: http://www.btrc.gov.bd/newsandevents/mobile_phone_subscribers.php
(accessed March 8, 2008)
Banglalink GSM (Sheba Telecom (Pvt.) Ltd.) (2008). Internet address:
http://www.banglalinkgsm.com/html1/our_shared.php (accessed March 4, 2008)
Banglapedia (2006). Internet address:
http://www.banglapedia.org/english/index/index.htm and
http://www.banglapedia.org/HT/K_0247.HTM (accessed March 24, 2008)
Budde (2008). Internet address:
http://www.budde.com.au/reports/browseByRegion.aspx
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news.com/story/15902.php#nogo
Cohen, Navin. 2001, What Works: Grameen Telecom’s Village Phones, The
World Resources Institute.
Dasgupta, Susmita; Lall, Somik; Wheeler, David, Policy Reform, Economic
Growth, and the Digital Divide: An Econometric Analysis, Development Research
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Flor, Alexander G., Information and Communication Opportunities for
Technology Transfer and Linkages.
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Grameenphone (2007). Internet address:
http://www.grameenphone.com/index.php?id=62 (accessed March 4, 2008)
The socio-economic impact of mobile phone services on rural people in Bangladesh ix

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app/home/linking.asp (accessed March 1, 2008)
Intel Econ Research (2007). Internet address:
http://www.inteleconresearch.com/pages/reports.html
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Kumar, Ranjit. 1996. Research Methodology: A Step-By-Step Guide For
Beginners. Addison Wesley Longman Australia Pty Limited (pp 73).
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Pacific Bangladesh Telecom Ltd. (2008). Internet address:
http://www.citycell.com/script/../index.php (accessed March 8, 2008)
Physicians and Scientists for Responsible Application
of Science and Technology (PSRAST) (2002). Internet address:
http://www.psrast.org/mobil/mobilstar.htm (accessed March 1, 2008)
Prahalad C.K., Hammond, Allen, What Works: Serving the poor, Profitability-
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(accessed March 8, 2008)
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Teletalk Bangladesh Ltd. (2007). Internet address:

http://www.teletalk.com.bd/about.htm (accessed March 8, 2008)
TM International (Bangladesh) Limited (2007) Internet address:
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Usages of Information and Communication Technologies in an Expanding
Urban Community: A case Study on Sonadanga Residential Area of Khulna City,
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http://www.waridtel.com.bd/index (accessed March 17, 2008)
The socio-economic impact of mobile phone services on rural people in Bangladesh x

Appendices

Appendix I Economics Discipline

Khulna University, Khulna
Schedule for the subscriber on

The socio-economic impact of mobile phone services on rural people in Bangladesh
The information will be used solely for study purpose
ID No: Date: ......................
Social perspective:
1. Name of the subscriber:

2. Demographic information:
Address Age Sex Family member Occupation Educational status

Educational status (0= illiterate, 1= 5 pass, 2= 8 pass, 3= SSC pass, 4= HSC pass, 5= Degree pass,
6= MA pass, 7= others)
3. Before using mobile phone how can you communicate with your relatives?
………………………………………………………………………………..
Social Psychological perspective:
1 → Agreed strongly (AS)
2 → Agreed fairly strongly (AFS)
3 → Agreed (A)
4 → Disagreed (D)
5 → Disagreed fairly strongly (DFS)
6 → Disagreed strongly (DS)
7 → Do not know (DK)

1. Do you think by using mobile phone your social cohesion increase?
AS AFS A D DFS DS DK
1 2 3 4 5 6 7
2. Do you think by excessive use of mobile phone young generations are wasting
their productive time?
1 2 3 4 5 6 7
3. Do you think mobile phone service creates family problem among family
members?
1 2 3 4 5 6 7
The socio-economic impact of mobile phone services on rural people in Bangladesh xi
Appendices

4. Do you think young generations are wasting their money by using mobile
phone service?
1 2 3 4 5 6 7
5. Do you feel your social status has increased by using mobile phone service?
1 2 3 4 5 6 7
Economic perspective:
1. Expenditure for different purposes:

a) Household expenditure (per month in BDT):
Food Clothing Shelter Education Health Mobile Others
b) Expenditure for transportation with relatives (per month in BDT):

Mobile phone usage Cost incurred for communication (BDT)
status
Before using mobile
900-1000
100-200
200-300
300-400
400-500
500-600
600-700
700-800
800-900
phone
0
After using mobile
900-1000
100-200
200-300
300-400
400-500
500-600
600-700
700-800
800-900
phone
0
c) Expenditure for transportation with trade partners (per month in BDT):

status
Before using mobile
900-1000
100-200
200-300
300-400
400-500
500-600
600-700
700-800
800-900
phone
0
After using mobile

900-1000
100-200
200-300
300-400
400-500
500-600
600-700
700-800
800-900
phone
0
The socio-economic impact of mobile phone services on rural people in Bangladesh xii
Appendices

d) Expenditure for product marketing (per month in BDT):

status
Before using mobile
900-1000
100-200
200-300
300-400
400-500
500-600
600-700
700-800
800-900
phone
0
After using mobile
900-1000
100-200
600-700
200-300
300-400
400-500
500-600
700-800
800-900
phone
0
2. Savings (per month in BDT)
□ 100-200 □ 200-300 □ 300-400 □ 400-500
3. The name of your mobile service provider
□ Aktel □ Banglalink □ Citycell □Grameen phone □ Warid □ Teletalk
4. Why are you using this connection?
□ Network facility □ Call rate □ Better customer service
5. Why do not you change this operator service?
□ Low tariff □ Problem of changing number □ Special facility of the package
6. Time spent for your business before using the mobile phone:
………………………………………………………………..
7. Time spent for your business after use of mobile phone:
……………………………………………………………….
8. Do you know about the mobile phone internet service?
□ Yes □ No
9. If yes, then what is the purpose of using this service?
□ For knowing the business information □ For communicating □ Others………
10. What is the name of your handset?
………………………
11. Why are you using this handset?
□ Low price □ Easy using □ Handset plus SIM facility □ Availability
□ special features □ Others
The socio-economic impact of mobile phone services on rural people in Bangladesh xiii
Appendices

Appendix II Economics Discipline

Khulna University, Khulna
Schedule for the traders engaged in mobile phone service on
The socio-economic impact of mobile phone services on rural people in Bangladesh
The information will be used solely for study purpose
ID No: Date:.....................
Social perspective:
1. Name of the subscriber:
2. Demographic information:
Address Age Sex Family member Educational status

Educational status (0= illiterate, 1= 5 pass, 2= 8 pass, 3= SSC pass, 4= HSC pass, 5= Degree pass,
6= MA pass, 7= others)
Economic perspective:
1. Household expenditure:
Food Clothing Shelter Education Health Mobile Others Total
2. Savings (per month BDT)

□ 100-200 □ 200-300 □ 300-400 □ 400-500
3. Type of business-
□ SIM seller □ Handset seller □ Grocery/departmental store or other business with
M2M service ⁭ M2M / i’top-up / flexiload / telecharge / easyload ⁭ Mobile
phone accessories seller ⁭ SIM+handset+M2M / i’top-up / flexiload /
telecharge / easyload
4. Initial capital……………….BDT
5. Business expenditure (per month in BDT):
Rent/govt. tax of the shop Employee salary Utility payment Total
6. Business earnings (per month in BDT):
The socio-economic impact of mobile phone services on rural people in Bangladesh xiv
Appendices

Selling handset Share of % from ERS Selling mobile accessories Total
(ERS= Electronic Retail Service)
7. Profit from business

□ 1000-2000 □ 2000-3000 □ 3000-4000 □ 4000-5000
8. Investment for other purpose from this profit.
□ Yes □ No
9. Amount of investment from the profit?
………………..............……
10. What is the return of the investment?

……………………………..
11. Why are you interested to involve in this business?

□ Reasonable income □ Job security □ Better job in rural area □ others….........
12. What do you think about peoples’ response to this business?

□ High □ Medium □ Low
The socio-economic impact of mobile phone services on rural people in Bangladesh xv
Appendices

Appendix III
Study area: Rupsa Upazila (Khulna District)

Study area: Terokhada Upazila (Khulna District)
The socio-economic impact of mobile phone services on rural people in Bangladesh xvi
Appendices

Study area: Dumuria Upazila (Khulna District)

Study area: Batiaghata Upazila (Khulna District)
The socio-economic impact of mobile phone services on rural people in Bangladesh xvii
Appendices

Study area: Rampal Upazila (Bagerhat District)

Study area: Wazirpur Upazila (Barisal District)

Study area: Alamdanga Upazila (Chuadanga District)

The socio-economic impact of mobile phone services on rural people in Bangladesh xviii
Appendices

Study area: Gazipur Sadar Upazila (Gazipur District)
Study area: Kaligonj Upazila (Lalmonirhat District)

The socio-economic impact of mobile phone services on rural people in Bangladesh xix

Impact of Mobile Phone

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The Socio-economic Impact of Mobile Phone Services on Rural

Md. Afzal Jamil

Bachelor of Social Science (Hons.) in Economics

Approved as to Style and Content

May Allah (SWT) accept my work for His sake alone.

Md. Afzal Jamil

Keywords: mobile phone service, socio-economic impacts, rural areas

Chapter one: Introduction 1-6

Chapter two: Methodology 7-10

Chapter 3: Mobile phone services in Bangladesh 11-20

Chapter 4: Profile of the study area 21-29

Chapter 5: Socio-economic status of general subscriber 30-39

Chapter 6: Socio-economic status of trader 40-51

Chapter 7: Impact analysis of mobile phone service on rural people 52-63

Chapter 8: Summary of findings 64-65

Chapter 9: Recommendations and Conclusion 66-68

Table ID Title of Tables Page No.

Figure ID Title of Figures Page No.

ARPU Average Revenue Per User

1.1 Background of the study:

The socio-economic impact of mobile phone services on rural people in Bangladesh 1

telecommunication service provider, consideration rural areas are of great concern.

1.2 Rationale of the study:

The socio-economic impact of mobile phone services on rural people in Bangladesh 2

1.3 Objectives of the study:

1.4 Scope of the study:

1.5 Limitations of the study:

The socio-economic impact of mobile phone services on rural people in Bangladesh 3

1.6 Operational definitions:

1.6.2 Land phone:

1.6.3 Digital divide:

The socio-economic impact of mobile phone services on rural people in Bangladesh 4

The socio-economic impact of mobile phone services on rural people in Bangladesh 5

1.7 Organization of the study:

Chapter five contains general subscribers social and economic information.

Chapter six contains social and economic information of trader subscriber.

Chapter eight contains major findings in a summarized form.

Chapter nine is about recommendations and conclusion. Recommendations here

The socio-economic impact of mobile phone services on rural people in Bangladesh 6

2.1 Research design

2.1 Research design

2.2 Sampling technique and sample size selection

The socio-economic impact of mobile phone services on rural people in Bangladesh 7

2.3 Data collection:

The socio-economic impact of mobile phone services on rural people in Bangladesh 8

to obtain more knowledge additional information was derived through personal

2.3.2 Secondary data:

2.4 Data processing, analysis and presentation

After necessary correction and suggestion as suggested by supervisors, a final

The socio-economic impact of mobile phone services on rural people in Bangladesh 9

2.5 Steps of the study:

The socio-economic impact of mobile phone services on rural people in Bangladesh 10

Chapter 3: Mobile phone services in Bangladesh

3.2 Mobile phone operators: History of inception

GrameenPhone was offered a cellular license in Bangladesh by Ministry of Posts and

After a period of declining market share, Banglalink purchased Sheba’s license in

Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh.

Warid officially launched their commercial services in Bangladesh on the 10th of

3.3 Subscriber base of telecom operators in Bangladesh:

Table 3.1: Distribution of subscriber base of mobile phone operators in Bangladesh

communications infrastructure where there is a lack of fixed-line connectivity.

Table 3.2: Distribution of world’s Top 10 emerging mobile growth markets

3.4 Tariff plan of telecom operators: Past and present

Table 3.3: Validity of prepaid scratch card