5G ecosystem not ready yet: Robi

Robi Axiata Limited, the second largest mobile operator in Bangladesh, believes that the country does not have the required ecosystem for 5G operation. 

"Robi was the first operator that participated in the test run of 5G back in 2018, but still the country's ecosystem in not ready to launch the technology fully," said Shahed Alam, chief corporate and regulatory officer at Robi, on Sunday while answering questions at a press conference on its third quarter business update. 

The government has planned to launch 5G technology in Dhaka by the end of this year through the state-owned mobile operator Teletalk. It also plans to roll out the technology across the country through private operators by the end of 2022. 

When asked about their preparedness for launching 5G technology, Shahed Alam said, "The discussions related to launching 5G through private operators has not been finished yet."

Earlier on Saturday, Erik Aas, chief executive officer of Banglalink, also said the ecosystem required for 5G is not ready in Bangladesh and investing in 5G right now will be a waste of money. 

He said the 5G ecosystem requires fiber optic cable connection in all network sites along with available mobile devices for users. 

At present, 5G smartphones are rarely seen in the country and more than 80% of 43,000 mobile towers here are yet to get the fiber cable connection that is essential for providing 5G services. 

Robi's YoY profit grew by 122.3% 

Robi has registered 122.3% growth in year on year net profit in the third quarter of this year. 

In comparison with the first nine months of last year, Robi's profit after tax in the first nine months of this year grew by 44.3%. 

The country's second largest mobile operator posted Tk86.5 crore profit after tax in the third quarter of 2021. However, they said their profit in that quarter would have been Tk128.2 crore if they did not have to pay the 2% minimum turnover tax.

Supported by a steadily rising revenue and efficient cost management, the company's profit after tax for the first nine months of this year reached Tk167.4 crore, said its officials at the virtual press briefing.

Robi's Acting CEO and Chief Finance Officer M Riyaaz Rashid said, "We are very happy to see our profit rising steadily every quarter this year. However, it is very disappointing to note that our PAT (profit after tax) in the first nine months could have been Tk289.3 crore, instead of Tk167.4 crore, had we not been subjected to a further 2% minimum turnover tax."

"Our shareholders are certainly being deprived of the value they deserve for their investment in the company due to this reason," he added.

Robi's revenue reached Tk2,085 crore in the third quarter this year, following a rise of 2.7% compared to the previous quarter. Compared to the same quarter of last year, Robi's revenue rose by 7.8%. 

The company's earnings per share (EPS) in the third quarter of 2021 was Tk0.17, while in the second quarter the EPS was Tk0.09.