Banglalink Gets Unified Licence to Deliver Superior Digital Services in Bangladesh
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Insights
The granting of a unified licence to Banglalink by the Bangladesh Telecommunication Regulatory Commission (BTRC) represents a significant regulatory development in the telecommunications sector. This move towards a more streamlined regulatory framework can have profound implications for operational efficiency and cost management for Banglalink, a subsidiary of VEON Ltd.
From a policy perspective, the transition to a unified licence system typically allows for a more flexible use of spectrum and technology, potentially leading to improved network performance and the faster deployment of new technologies such as 5G. This also implies that Banglalink may now have an easier path to upgrade its infrastructure, which is essential for maintaining competitiveness in a rapidly evolving digital market.
Furthermore, the active sharing of infrastructure resources could lead to a reduction in capital expenditures for Banglalink, as shared infrastructure often results in cost savings. This could positively affect the company's margins and profitability in the long term. Additionally, the simplification in the audit process and the rationalization of fees can lead to a more predictable business environment, which is typically welcomed by investors.
The strategic implications of the unified licence for Banglalink's market positioning cannot be overstated. By enabling the company to operate across multiple generations of technology with a single licence, Banglalink is poised to enhance its service offerings, potentially increasing its market share in Bangladesh's telecommunications sector.
For consumers, the expected improvement in digital services and connectivity might translate into higher customer satisfaction and loyalty. Banglalink's ability to streamline user experiences, as a result of this regulatory change, can be a key differentiator in attracting and retaining customers in a competitive market.
On the investor front, the announcement may be seen as a positive signal, indicating that Banglalink is in a position to capitalize on the government's digital agenda. This could result in increased investor confidence, potentially impacting VEON Ltd.'s stock performance positively, especially if these changes lead to tangible improvements in Banglalink's financial metrics in subsequent quarters.
The financial outlook for VEON Ltd., in light of Banglalink's receipt of a unified licence, is multifaceted. In the short term, the costs associated with transitioning to the new licence and possibly upgrading infrastructure to leverage the benefits of a technology-agnostic framework may weigh on financials. However, the long-term benefits, such as cost savings from streamlined processes and shared infrastructure, could outweigh these initial investments.
Investors should monitor the company's capital expenditures and operational costs closely in upcoming financial statements to gauge the impact of the unified licence. Moreover, the potential for increased revenue through enhanced services and customer base expansion is a critical factor to consider. If Banglalink successfully leverages this regulatory change to improve its market position, it could lead to positive revisions in revenue forecasts and a more favorable assessment of VEON Ltd.'s valuation.
The unified licence consolidates current licences and provides the groundwork for upcoming technologies
Amsterdam and Dhaka, 18 March 2024: VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services, announces that Banglalink, its leading innovative digital service provider in Bangladesh, has received a unified licence from the Bangladesh Telecommunication Regulatory Commission (BTRC).
The newly issued licence combines existing authorisations to use 2G, 3G, and 4G standards, making Banglalink’s licences technology-agnostic across these three generations, and can also be used for the rollout of future technologies. By consolidating the existing licences, it simplifies and streamlines licence renewal to a single process. The unified licence also facilitates the active sharing of infrastructure resources between operators, provides clearer guidelines on data retention, offers more clarity regarding the audit period, and rationalizes various fees and charges.
“The unified licence frees up capacity for Banglalink to deliver superior digital services, enhance connectivity to its customers and streamline the user experience that it provides. We commend the Government of Bangladesh for their progressive approach in supporting our industry’s contributions to the country’s digitalization” said Kaan Terzioglu, Group CEO of VEON.
“This is an important milestone in Banglalink’s quest to pioneer innovative digital services through our nationwide network coverage, liberating crucial resources for us to focus on providing a superior customer experience. These changes will positively impact Banglalink’s adoption of advanced technologies and help us support the Smart Bangladesh vision” said Erik Aas, CEO of Banglalink.
“As we award Banglalink the unified licence, we step closer to our goal of a streamlined telecom sector for a Smart Bangladesh. We appreciate Banglalink's dedication to fulfilling corporate governance standards and their role in shaping a digitally advanced future, focusing on connectivity and innovation” said Engineer Md Mohiuddin Ahmed, Chairman of the BTRC.
Erik Aas, Chief Executive Officer of Banglalink, received the unified licence from Engineer Md Mohiuddin Ahmed, Chairman of the BTRC in Dhaka on 14 March 2024.
About VEON
VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
For more information visit: https://www.veon.com.
Disclaimer
This release contains “forward-looking statements,” as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, VEON’s commercial and investment plans. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.
Contact Information
VEON
Hande Asik
Group Director of Communication
pr@veon.com
TUVA Partners
Julian Tanner
julian.tanner@tuvapartners.com
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