Editorial
Big gain from small trade
Mobile recharge retail can be further boosted
A direct positive outcome of the fast growing mobile telecom sector in Bangladesh has been the growth of retail recharge outlets that number around two and a half million as of today. These retailers, some running part time and some fulltime outlets earn about 2.5 percent commission, finding in this business a good opportunity for self-employment. Given the rate of current growth in the telecom sector and newer telecom companies entering the market in Bangladesh one would hope that there will be more such outlets that would provide a scope of earning for many unemployed youths in future. This augurs well for a country like ours that has to cope with a very high rate of unemployment.
The system of prepaid mobile phones has reduced much of the hassles of the users; at least one doesn't have to bother about receiving monthly bills and having to pay it at a particular bank well in time lest the connection is cut off. One can now manage the use of mobiles perhaps more efficiently than otherwise would be in the case of post paid system as well.
The return on the investment by the retailers is safe and assured and the rate of return, as one can find out from some of the retailers is quite reasonable, which according to some of them, could be even better if the rate of commission were to be raised by the operators. There is need also to address the concern of the fulltime retailers regarding having different rates of commission for the two.
On the matter of enhancing the rate of commission of the retailers we would like to reflect the concern of the operators who suggest that one of the causes for reduction in the commission rates is enhanced tax on imported SIM cards which is now TK 900 per card as against Tk 800 prior to 2005-06 fiscal. Considering that the business is gainfully employing such large number of people there is every rationale for the government to reduce import duty on SIM cards. That, along with making the recharging business worthwhile, will make it cheaper for the users too. This needs to be considered.
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