Bangladesh’s mobile subscriber base dropped by over 52 lakh between July and September 2024, following a 50% hike in value-added tax (VAT) on SIM cards in this fiscal year’s budget, raising the tax from Tk 200 to Tk 300. Mobile operators cited this as the primary reason for the largest single-quarter decline in recent years, with 36 lakh subscribers lost in July and August and 16.3 lakh in September. The total subscriber base fell to 19.08 crore. Smaller operators like Robi and Banglalink have struggled to subsidize SIM cards, unlike financially robust Grameenphone. Additionally, the internet blackouts during the Awami League’s tenure in July-August further affected reactivations.
In September, Banglalink’s subscriber base fell to 4.16 crore, Robi’s to 5.79 crore, and Grameenphone’s to 8.48 crore, while state-owned Teletalk retained 65.2 lakh subscribers. Smaller operators have faced a competitive disadvantage due to reduced subsidies, impacting the overall market equilibrium.