Orascom, the Egypt-based parent company of Banglalink, wants to expand its business in other sectors such as cement, fertiliser and banking in Bangladesh.

“We want to invest more in Bangladesh," said Naguib Sawiris, chairman and CEO of Orascom. "But Bangladesh government should offer us scope, should show us where we can invest The Bangladesh government should announce a package through the Privatisation Commission and Banglalink is ready to sponsor such exposition.”

“I love Bangladesh. Its people are hardworking. Cultures of the two countries are also similar. We have slow-moving bureaucracy, corruption, slowness, poverty and the same religion. So it is easier for us to invest in Bangladesh,” Naguib said.

Orascom is understood to have shown interest during the caretaker government to start banking and invest in some other sectors. But it did not get any response.

Orascom Telecom Holding was established in 1998 and has grown to become a major player in the global telecommunications market in the Middle East, Africa, and South Asia. Orascom Telecom is a leading mobile telecommunications company operating in eleven emerging markets having a population under licence of 498 million with an average mobile telephony penetration of approximately 46 percent as of December 31, 2008.

Other than telecom, Orascom has operations in hotels, construction and IT solutions.

Asked what his company's strategy would be once Airtel comes into the foray in a market that is already witnessing fierce competition, Naguib became rather philo-

sophical that matches the look of his modest office in Cairo.

"I know it will be a tough time for us. But Airtel's chairman Sunil (Bharti Mittal) is a good friend of mine and I am an emotional man. I don't want to go to war with a friend. I hate to win over a good friend. I believe in to leave and let live policy.”

But then Naguib got into business talks. “We would do our best. Our challenge will be to reduce cost. We can't compete on price as Bangladesh already has the lowest tariff rates in the world. And this leaves us no option to cut rates.”

Increasing communication is a great way of increasing investment in a country. When telecommunication proliferates, it leads to a boom in the cabling industry, trade, printing, advertising and media activities. There is a direct link between telecommunication growth and GDP growth.

He sees the high SIM tax as a big spanner in telecom growth in Bangladesh. This has led to an unhealthy situation for the telecom industry as growth has slowed in the poor rural areas.

Companies are losing money by subsidising SIM cards, but every sale of SIM involves a lot of investment in terms of network adjustment such as making facilities for SMS and other services. The average rural users spend so little that it does not justify expansion in rural areas.

Naguib narrated how Egypt lowered its corporate tax from 60 percent to 20 percent, which actually increased revenue 30 percent as more corporate bodies wanted to pay tax rather than to avoid it.

“But our strategy is still to grow with the hope that a reasonable government will reduce SIM tax. Banglalink could have been making profit if it did not have to subsidise SIM cards."