Robi says Grameenphone exploiting COVID-19 crisis to take full market control

Robi says Grameenphone is trying to take total control of Bangladesh’s mobile telecom market by using corporate social responsibility or CSR activities taking advantage of the coronavirus crisis.

Robi Managing Director and CEO Mahtab Uddin Ahmed made the allegation during an online press conference on Monday to detail the initiatives it has taken over the outbreak.

The company does not mix its market-driven initiatives with the corporate responsibility initiatives even though both play a key role in its overall fight against the coronavirus crisis, Mahtab said.

Robi, owned by Malaysia's Axiata Group Berhad, is the second largest mobile phone operator behind Grameenphone, the Bangladesh unit of Norway's Telenor, in terms of subscriber base.

On Friday, Grameenphone announced about 100 million minutes of free talk time for 10 million of its subscribers who could not recharge in April or have no or little balance amid the coronavirus lockdown.

Among the other initiatives, it also announced 30 gigabytes of internet data for Tk 1 per month for 25,000 certified COVID-19 doctors for the next six months.

Mahtab expressed dismay at Grameenphone’s offer to high value customers terming it “atrocious”. 

The offer is a “clear example of a price war declared by the market leader”, he said.

He warned that if the regulator does not step in to “discipline the market leader, it will continue to exploit the COVID-19 crisis to further advance its business interests”.

“Unless the regulator and the government believe that the country’s interest is best served by having only one telecom operator in the market, they ought to make their move right now, because we won’t be able to sustain our business if market leader is not made to adhere to SMP [significant market power] regulations now,” Mahtab said.

Asked for comments, Grameenphone Head of External Communications Md Hasan said, “Now is the time to stand beside the country in dire needs with our collective efforts and act responsibly.

“It is regrettable that such remarks are made. We appreciate that others are inspired and coming forward.”

Jahurul Haque, chairman of Bangladesh Telecommunication Regulatory Commission or BTRC, told bdnews24.com they would see whether there was a breach of law if they got complaints.

Mahtab also said Robi went ahead with its decision to reduce data price by as much as 60 percent in selected packs and revise voice call price downwards considerably despite having a daily revenue shortfall of around Tk 40 million or 16 percent.

The company is offering “unmatchable pricing offers” from cost-value proposition at the moment to survive the competition, he said.

If all its market and sustainability-related initiatives were accounted for, the company has already spent around Tk 1.7 billion, including Tk 900 million as pure CSR and Sustainability initiatives, and the rest as marketing-led initiatives, according to him.

“The figure is not important, what counts more is that Robi is determined and committed to shoulder the burden of this crisis standing right alongside the people of the country till the very end of the pandemic,” the CEO said.

Robi is determined to “take on the market leader by reciprocating their offer”.

Some of the reciprocation was already under way, according to Mahtab, such as providing 10-minute talk-time and 50MB data for free to subscribers who used to recharge regularly but have ceased to do so following the coronavirus crisis.

“Robi will further pursue aggressive data bundle offers to counter the market leader’s move,” he added.

Mahtab announced that Robi will provide food to 10,000 families in remote parts of the country with support from the Senakalyan Sangstha.

It will also set up disinfection booths in the crowded public places in Dhaka and Chattogram.

Mahtab highlighted Robi’s contribution in setting up and operating the 333 hotline which has emerged as a key tool in fighting the outbreak.

Other top Robi executives, including Head of Corporate and Regulatory Affairs Shahed Alam, joined the press conference.