Banglalion Communications Ltd embarked on its business journey with a substantial investment

of approximately Tk450 crore. A significant portion of this investment, Tk215 crore, was
allocated for the acquisition of a 35 MHz spectrum from the BTRC, a move that stood out as
non-optimal as it exceeded the global spectrum price standards of Tk80 crore for similar
technology. To secure the necessary financial backing, Banglalion collaborated with AB Bank
and a consortium of eight other esteemed banks and financial institutions, pooling in Tk171
crore. In a strategic financial maneuver, the company also introduced bonds worth Tk130 crore
into its financing structure, resulting in a total capital contribution of Tk149 crore. This mix-and-
match funding approach meant their own capital contribution was a modest Tk149 crore, barely
making up 33.11% of their grand investment plan.

However, their ambitious move to snatch the spectrum license at such an absurd price
compelled Banglalion to price their product at a premium, well above what 2G mobile operators
were offering. The company's strategy of positioning itself as a provider of high-speed internet
services initially paid off handsomely, allowing them to build a robust customer base that
flourished until around 2013. However, the subsequent emergence and widespread adoption of
3G and 4G technologies triggered a turning point. The subscriber count took a downward spiral,
experiencing a notable decline of -48.78% in 2014 and a more substantial drop of 36.31% in
2015. This decline was mirrored in the company's revenue figures, which witnessed a decrease of
-77.58% compared to the previous year in 2014 and -36.31% in 2015. This drastic drop in
revenue, i.e. from 360 Crores to 80 crores in 2014, actually represents two factors. The first one
being the loss of regular sale of equipment that was needed by new subscribers for availing the
Banglalion’s service and the second one naturally represents the loss of monthly revenues that
could have been derived from package holders.( there will be two charts, one showing growth
rate of subscribers and another the rate of revenues)

By 2019, the company found itself grappling with a substantial debt of Tk152.61 crore owed to
the BTRC. This debt burden stood in stark comparison to the smaller dues carried by its industry
competitors. To put it into perspective, Qubee and Ollo, two prominent players in the same
sector, were burdened with relatively lesser obligations – Qubee with dues of BDT 56.07 crores
and Ollo with a comparatively modest sum of BDT 17.89 crore.
Year subscriber Growth revenue Growth rate
rate
201 43000 - 326,456,000 32.64 crore -
0
2011 172370 300.86% 1,106,017,040 110.6 crore 238.80%
201 330000 91.45% 1,693,152,560 169.31 53.09%
2 crore

201 548100 66.09% 3,606,215,200 360.62 112.99%

3 crore

201 280710 -48.78% 808,444,800 80.84 crore -77.58%

4
201 178790 -36.31% 514,915,200 51.49 crore -36.31%
5
201 112960 -36.82% 325,324,800 32.53 crore -36.82%
6
201 75390 -33.26% 217,123,200 21.71 crore -33.26%
7
201 80860 7.26% 232,876,800 23. 28 crore 7.26%
8
201 60000 -25.80% 172,800,000 17.28 crore -25.80%
9
202 2000 -96.67% 576,0000 0.57 crore -96.67%
0