Communication key in the wake of pandemic
Ever since the corona virus infection was declared an epidemic by the World Health Organization, many countries have been in turmoil. The impact of the epidemic was gradually felt by the whole world, and Bangladesh was no different.
Never before in the world has there been in such a state of lockdown for an invisible 'enemy'. With a crisis of this scale hitting us and bringing a change to our everyday lifestyle, we may also witness a change in the way we communicate.
We have seen the impact of the communications sector during this epidemic in many countries around the world. Even in Bangladesh, since 2016, high-speed Forge network infrastructure has begun to develop in the country.
We are working on the fifth generation or 5G technology in equal pace with the world. Earlier, the spread of 3G across the country gave us hope to increase the use of technology in epidemics. We, who work in the mobile industry, are also trying to work shoulder to shoulder with everyone to fight the epidemic.
The infrastructure of mobile operators is helping us increase the penetration of smart phones. Even in bad times, it is becoming easier to deliver the right service.
In these trying times have we come to realize how easy life can get with a communication system. Since this situation arose and people were confined to their homes, we have also witnessed an increase in the number of people on social media.
In addition to sites like Facebook, Twitter, Instagram people are actively using YouTube, Pinterest, and other social media sites in comparison to earlier days. From trending social media content like the Dalgona craze, to the heated debate over Netflix’s Extraction, we are just witnessing how much potential and power social media and streaming platforms hold over our youth.
Not only is it being used for entertainment, the social media sites are keeping them connected and informed, with people sharing messages for help and support throughout the entire country.
Sitting at home they are tagging relevant services and teams from across sectors and connecting them whenever a need arises for someone in trouble. And all they ever need is a smart phone if not other device. From watching videos to shooting them, a smart phone in every hand has made this possible today. Mobile internet and mobile connection in the country has increased significantly over the years.
One of the reasons for this growth is the communication industry. In the report released by the Bangladesh Telecommunication Regulatory Commission (BTRC) last February, we can see the rise in internet connectivity within the country.
In one month, (in February alone) seven lakh thirty-seven thousand effective connections have been added to the list of internet connectivity. Despite these advancements in information technology, the growth of smart phone users in Bangladesh remains painfully stagnant.
Till now, smart phone penetration in Bangladesh is only one fourth of the total handset’s sale. At present, smart phones account for 30 percent of the handsets sold, while feature phones grab more than 70% market share.
In June 2019, the government of Bangladesh increased the customs duty on the import of completely built units (CBU) of smart phones to 25% from 10%, resulting in a 4.1 percent decline year on year in 2019. However, as feature phones were left outside of this increased duty structure, it saw a strong recovery with 20.1% YoY growth in the same year.
There is huge potential in the smart phone market, but the business volume is not growing as expected. According to market insiders, due to increase of duty rate, the grey market business of smart phones in Bangladesh has seen a sudden spike which is alarming.
While there are no relevant statistics on illegal handsets in Bangladesh, it is estimated that the number stands nothing below 30 million. A total of 2.5 million cell phones worth Tk 30 billion are imported into the country illegally every year.
We have been working for a long time to provide good quality devices at low prices in the country. So, the more people adopt digitization and usage of internet, the more they can avail these services through smart phones.
The picture of this number increasing makes us more optimistic. We can say for sure since the use of the internet and smart phones has increased after people have been housebound, this number will actually increase going forward.
Additionally, Bangladesh’s e-commerce market stands at $1.6 billion currently and is estimated to double to 3 billion US dollar by 2023 on the back of a digital foundation laid down by the government and a young and tech-savvy population.
M-Commerce (Mobile Commerce) and F-Commerce (Facebook Commerce) are very popular in today's e-business world and over the years have seen a rise in the number of online transactions.
At present there are approximately 2,000 e-commerce sites and 50,000 Facebook-based outlets delivering almost 30,000 products a day. The number is increasing day by day and will lend o further smartphone penetration.
We at Xiaomi believe that smart phones are changing the communication industry in a massive way and the innovation that they bring to people at such accessible and affordable prices have a big role to play in larger vision of creating a Digital Bangladesh.
Covid-19 has forced us to retrospect our lifestyle and change the regular course of things we did earlier, but smartphones have enabled us to adapt to newer ways of carrying on the same from the spaces that we are confined in.
This mobile-centric new normal is probably here to stay for a while but even beyond that some of these changes will become the norm once this crisis ends and the technology we have at hand is the reason for this to be even remotely possible.
We sincerely hope that the government can gauge the impact of smart phones on our current lifestyle amidst this situation and the way it will be post this and allow innovation to reach the people with full support through necessary measures like low taxes.
It is time brands and businesses also assess the situation and take this opportunity to churn out quality products for users that can improve and contribute to this new normal ahead. Here’s to hoping that we grow together, towards a better future.
--Writer - Ziauddin Chowdhury
Country general manager -Xiaomi Bangladesh
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