Telecom Malaysia International Bangladesh (TMIB), the country's second largest cellular phone operator, said on Saturday it will invest $300 million by 2006. "This investment will be for network expansion and upgradation of systems with latest technologies and more products," Vijay Watson, chief operating officer of TMIB, told Reuters in an interview.
Watson said TMIB, which reached one million subscribers in December, aims to triple its subscribers over the next year.
He said the money will be provided by TMIB shareholders and a significant amount will be coming from reinvestment.
Watson said Bangladesh, with a population of around 140 million, has huge unmet demand for telephone services and fixed-line services cannot meet the demand.
Egypt's Orascom has acquired Sheba Telecom and Singapore-based SingTel is entering the market with Pacific Bangladesh Telecom Limited, the lone CDMA (code division multiple access) operator.
"The market is waiting for fierce competition. Competition is also an educating process," said Watson, a telecom engineer with vast experience in the sector.
TMIB, which provides service under the brand name AKTEL, invested $140 million in 2004.
TMIB, which uses GSM technology, is 70 percent owned by Telekom Malaysia Bhd and 30 percent by local AK Khan & Company Ltd.
Bangladesh has over 3.25 million cellular phone users provided by four companies through foreign joint ventures.