Smartphone users will grow to 63% by 2025: Report | The Business ...
According to the latest report from the Global System for Mobile Communications Association (GSMA), the number of smartphone users in Bangladesh is projected to increase to 63% by 2025 from 47% in the previous year.
The report, titled "The Mobile Economy Asia Pacific 2022," highlights that the subscriber penetration rate in Bangladesh was 55% in 2021 and is expected to reach 59% by 2025.
Mobile Broadband Networks in Asia Pacific
Mobile broadband networks currently cover approximately 96% of the population in the Asia Pacific region, showcasing operators' investments in mobile networks, particularly in fifth-generation (5G) infrastructure.
However, despite the network coverage, only 44% of the population (1.23 billion users) are utilizing mobile internet services. The report attributes this gap to factors such as lack of digital skills, affordability issues, and concerns regarding online safety.
5G Commercial Services
Fourteen markets in the Asia Pacific have already launched 5G commercial services, with plans for at least 10 more to follow by the end of 2025, including countries like Bangladesh, India, Myanmar, Nepal, Pakistan, and Sri Lanka.
Impact on Economy
Mobile technologies and services are significantly contributing to the Asia Pacific's economy, accounting for 5% of the GDP in the region in 2021, which translates to approximately $770 billion of economic value.
Moreover, mobile internet services, including 3G and 4G, have generated around 8.8 million jobs in 2021 and have played a vital role in funding the public sector, with an estimated $80 billion raised through taxation.
Regional Comparisons
By the end of 2025, neighboring countries like India and Pakistan are expected to have 84% and 74% smartphone users, respectively, out of their total mobile phone users, surpassing the growth rate of Bangladesh.
India, Indonesia, and Japan are identified as the top three smartphone markets in the Asia Pacific, with India alone having 1 billion users.
Future Projections for Bangladesh
Although the projection for smartphone adoption in Bangladesh has increased, the 5G network coverage remains at 6% by 2025. The country transitioned to the 4G era in February 2018, with only 37% of users adopting the high-speed network by 2020. By 2025, it is anticipated that 60% of users will embrace 4G networks.
However, mobile internet usage remains low in Bangladesh, with approximately half of the population still unconnected to mobile networks, partly due to mobile taxation policies.
Mobile Sector Contribution
In 2019, the mobile sector's total tax contribution in Bangladesh amounted to Tk119 billion ($1.4 billion), representing about 44% of the total sector revenue.
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