DHAKA, May 11, 2020 (BSS) – Robi today urged the government for regulatory
intervention, saying Bangladesh’s leading mobile phone operator has initiated
price war resorting humanitarian ground in this COVID-19 pandemic to push
smaller carriers out from market.
“Market leader has initiated price war in the name of corporate social
responsibility (CSR) . . . Robi has no choice left but to react to remain in
competition despite huge business impact,” said Robi managing director and
chief executive officer Mahtab Uddin Ahmed without mentioning name of
Grameenphone.
Ahmed at an online press conference also expressed frustration over the
regulatory approval of Grameenphone’s offer of 30GB data at only Taka 1 for
high value segment subscribers like physician although the market leader was
already announced significant market player (SMP).
“The top player is set to grab market in the pretext of COVID-19 pandemic
through such aggressive marketing to destroy small players,” he alleged.
Grameenphone on May 8 declared 10 crore free talk-time, 30gb data at Taka
1 for physician, 48 paisha call rate, cent percent data bonus and Taka 10
crore safety-net credit to deal Coronavirus crisis.
“We expect market leader will be sensible for their offers and keep their
belief on co-existence,” said Ahmed, also president of Association of Mobile
Telecom Operators of Bangladesh (AMTOB).
He urged the government and regulator to intervene for ensuring level
playing field as such unhealthy competition may push smaller operators out
from market.
The second largest carrier also alleged Grameenphone is using their
financial muscle started all-out attack on smaller operators to grab the
market by launching unprecedented campaign in the name of CSR.
Centering on emergency spectrum allocation, Grameenphone took position
against the remaining three operators –Robi, Banglalink and Teletalk. The
three sought to the government emergency spectrum for three months free of
cost while Grameenphone is not interested to take free rather in discount
price.
Ahmed also firmly expressed Robi’s determination to take on the market
leader by reciprocating its offer. Some of the reciprocations were already
underway, like providing 10-minute talk-time and 50 MB data for free to
subscribers who used to recharge regularly but now unable following corona
crisis, he said.
Robi said it will further pursue aggressive data bundle offers to counter
market leader’s move.
Meanwhile, Robi has already chalked out a detailed plan to support the
stakeholders in the company’s sales and distribution channels with food
supply, credit facilities and even health insurance etc.
Replying queries Robi’s Chief Corporate and Regulatory Officer Shahed Alam
said as they (Grameenphone) have already declared SMP operator, regulator
should consider it before giving any approval in favor of them otherwise
market will be fully imbalanced.
Referring to Indian market, Alam said few years back there were 12 carriers
but unfair competition by Jio pushed eight operators out from market.
Earlier, carrier like Robi also applied for free voice call minutes and
data offer but regulator didn’t approve and this time that was not implied on
the market leader’s case, he alleged.
Citing global practice, the Robi managing director said smaller operators
usually start price war but here in Bangladesh market leader always starts
that war to put smaller carriers into a marginal position.
Initially customers may seem their (Grameenphone) offers will beneficiate
customers but ultimately it will damage the market and only one operator will
sustain, he added.
Outlining its position to fight against Coronavirus, Robi said they are
committed to stand shoulder to shoulder with the society till the end of the
ongoing pandemic.
Ahmed said despite having revenue shortfall of around Taka 4 crore
everyday (16 per cent reduction on daily revenue), they went ahead with its
decision to reduce data price by as much as 60 per cent in selected packs,
voice price was also revised downwards considerably.
The Robi CEO also revealed if all its market and sustainability related
initiatives were calculated it has already spent more around Taka 170 crore
(Taka 90 crore as pure CSR and sustainability initiatives and another Taka 80
crore as marketing led initiatives).
“Amount is not important, what counts more is that Robi is determined and
committed to shoulder the burden of this crisis standing right alongside the
people till the end of the pandemic,” Ahmed added.