Warid, a GSM-based cellular operator is a wholly owned subsidiary of Warid Telecom International LLC, part of an Abu Dhabi based consortium. The company expects to achieve nationwide coverage by the end of 2007.

The launch will intensify competition at a time when the existing five mobile operators are battling hard to maintain and improve their market share and profitability. Last week Gameenphone, the market leader, admitted that its growth had slowed, due to increased competition and lower call costs.

As a late entrant to the market, Warid is expected to use the price weapon to win customers. The company has set up both sale and service centres throughout the country.

When contacted, Warid officials did not comment in detail on possible call rates, however one company official said, "Of course our package will bring more benefits to the customer. We must offer lucrative offers and packages to customers".

The company was more open about the scale of its investment in its new network. "We have already installed more than 900 base stations in different parts of the country, covering 70 percent of the total population," said Zeeshan Kingshuk Huq, manager (Marketing) of the company.

"Within two weeks we will install a further 200 base stations and within three months the whole country will be come under Warid network", he said.

In December 2005, Warid Telecom International LLC paid $50 million to obtain a GSM license from the Bangladesh Telecommunication Regulatory Commission (BTRC) and became the sixth mobile phone operator in Bangladesh.

The number of cell phone users in Bangladesh reached 22 million at the end of 2006, adding over 12 million subscribers in a single year, according to the BTRC. The current penetration rate is around 12 per cent.

The growth in 2006 was 120 percent as the number of mobile phone subscribers was 9.26 million in 2005, the BTRC added.

Massive foreign investment in the last 10 years has ensured a high growth rate. Telenor, Telekom Malaysia (TM), Orascom, and SingTel are the other foreign companies who have invested in the mobile phone sector in Bangladesh.

The number of subscribers of GrameenPhone, largest cell phone company, reached 10.76 million at the end of 2006 with the addition of 5.22 million users in a year, while the second largest operator, AkTel, acquired 6 million subscribers, adding some 3.93 million to its total at the same time.

The third largest operator, Banglalink, acquired 3.64 million users, adding 2.61 million clients, while the only CDMA operator, CityCell, acquired nearly one million customers in 2006, more than double its 4.4 lakh customers in 2005, according to BTRC data.

The state-owned Teletalk acquired about 4 lakh customers in 2006.