Internet users decrease by 13.2 million

For the past seven months, the number of mobile phone and mobile internet subscribers in the country has been on a steady decline. Consumers have also reduced their expenditure on mobile phone usage.

According to data from the Bangladesh Telecommunication Regulatory Commission (BTRC), the number of mobile subscribers decreased by approximately 6 million in the seven months leading up to January. During the same period, the number of mobile internet users declined by 13.2 million (1 crore 32 lakhs). Mobile operators attribute the decline in internet usage to rising living costs, economic conditions, increased government taxation and political circumstances. While a surge in new internet users was observed in July due to the mass uprising, this trend did not sustain.
Many older SIM cards regularly become inactive, while new SIM cards continue to be sold. However, due to increased taxation, the cost of SIM cards has risen, leading to a decline in new SIM sales, according to the operators.

Shahed Alam, chief corporate and regulatory officer of mobile operator Robi Axiata, told Prothom Alo that rising costs have made consumers less inclined to acquire new connections. This has made efforts to keep the marginalised population connected even more challenging. Additionally, the increased cost of usage has resulted in reluctance among many to obtain alternative connections even when necessary.
Current figures of subscribers

The Bangladesh Telecommunication Regulatory Commission (BTRC) released the latest statistics on mobile phone and internet subscribers on 6 March. The data reveals that in June of the previous year, the number of mobile phone subscribers peaked at 196 million (19 crore 60 lakh). However, this figure has since declined, reaching approximately 186.6 million (18 crore 66 lakhs) in January.

The most significant decline has been observed in mobile internet subscribers. In June, the number of internet users stood at approximately 129.2 million (12 crore 92 lakhs). This number has steadily decreased each month since then. According to BTRC data by January, the number of mobile internet users had fallen to 116 million (11 crore 60 lakhs).
The total number of internet subscribers in the country, including both mobile phone and broadband users, now stands at approximately 130 million (13 crore), compared to around 142.2 million (14 crore 22 lakhs) in June. During this period, broadband internet subscribers slightly increased, reaching approximately 14. million (1 crore 40 lakhs). Operators report that people are increasingly accessing the internet via Wi-Fi wherever available, reducing their reliance on purchasing mobile data packages. It is important to note that an individual is considered a subscriber if they have used the service at least once in the past 90 days.

Mobile operators state that given the current economic conditions, the general population is struggling to meet essential needs. As a result, many are unwilling to incur additional expenses on internet usage. Previously, many users maintained multiple SIM cards and subscribed to internet packages based on their convenience but this practice has also been decreased. Additionally, the demand for and usage of internet package (MB) recharge cards has also decreased.

The Awami League government, which was ousted in the July mass uprising, had increased the supplementary duty on mobile services by 5 per cent to 20 per cent in the budget for the current 2024-25 fiscal year, announced last June. As a result, the total tax burden, including supplementary duty, Value Added Tax (VAT) and surcharges now exceeds 39 per cent. Alongside these tax increases, mobile operators have also raised service charges.

Additionally, the price of SIM cards has risen to BDT 100 to BDT 300. Operators state that due to increased costs, they can no longer offer subsidies on SIM cards as they did previously, leading to a decline in new subscribers.

Operators have identified another reason for the decline in subscribers. The reason is the departure of Awami League leaders and activists from the country following the government’s fall. These individuals were known for high mobile expenditure. The political shift has also negatively impacted businesses associated with Awami League affiliated entrepreneurs with some facing financial difficulties or even job losses. This has, in turn, affected their disposable income, contributing to the decline in mobile internet users.

Operators have also noted several indirect effects. The current political situation has led to reduced ‘money flow’ in the economy, with individuals and businesses exercising greater caution in financial transactions. Such trends are typical in periods of political uncertainty. Sharfuddin Ahmed Chowdhury, head of communications at Grameenphone, attributed the decline in subscribers to the overall economic situation, high inflation and increased VAT, supplementary duties and SIM taxation.

Meanwhile, Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink warned that if the downward trend in subscriber numbers continues, it could have far-reaching consequences.
Consumers reduce mobile expenses

According to the financial report of Grammenphone, one of the country’s leading mobile operators, the number of active data users stood at 49.3 million (4 crore 93 lakhs) in the second quarter of 2024 (April-June). However, by the fourth quarter (October-December), this figure had declined to 48 million (4 crore 80 lakh).

Similarly, Robi’s financial report indicates that the number of 4G data users in the fourth quarter of the previous year was 36.3 million (3 crore 63 lakh), compared to 37.6 million (3 crore 76 lakh) in the second quarter.
Consumers have also reduced their mobile phone expenditure.

Grameenphone’s financial report shows that its subscribers have, on average, reduced their spending by BDT 13. In the fourth quarter of 2023, the average monthly expenditure per subscriber was BDT 161, which decreased to BDT 148 in the fourth quarter of 2024. Robi’s revenue per user also declined from BDT 147 to BDT 142.

Professor BM Moinul Hossain, Director of the Institute of Information Technology at the University of Dhaka, described the decline in subscribers as concerning. Speaking Prothom Alo, he stated that this is not a positive indicator for digitalisation. Given the existing political and economic instability, it is essential to assess whether people are also losing interest in mobile and internet services.