The Mobile Phone Market in Bangladesh: Competition Matters

Abstract

This article examines the role of regulation, competition and market structure on the success of mobile phone sector liberalization. The findings of the study suggest that deregulation of the telecommunications sector has generated competition and changed the market structure which has had a significant influence on mobile phone service pricing. However, limited liberalization, a concentrated market and a weak regulatory regime during 1997—2004 allowed mobile phone firms to keep mobile tariffs high. Since 2005, full liberalization of the mobile phone sector including the launching of a mobile phone service by a state-owned mobile firm and a strong rival as well as the emergence of an effective regulator brought stiff competition in the sector.