Since its inception 25 years ago, Grameenphone has made notable strides in the utilisation of renewable energy, rural development, unique technological solutions and nationwide network expansion. In the final part of this five-article series on Abu Saeed Khan's 'Partner in Digitalization 1997-2002', we will take a look at how Grameenphone has helped enhance the economic growth of Bangladesh's telecommunication sector, empowering the local workforce and making a historic contribution to the Dhaka stock market.

Training the workforce of the future

Grameenphone has contributed to youth employment in Bangladesh by training the local workforce and providing young employees with new job opportunities. By 1997, Grameenphone enabled young local recruits to take over important roles previously occupied by Nordic employees. For the next 10 years, Grameenphone spent $4 million in training a workforce ready to tackle global challenges.

Grameephone also broke traditional restrictions by allowing engineers to take on roles regardless of their established discipline. Abu Saeed Khan's report states that due to the diversity in experience and qualifications, the first generation of engineers trained by Grameenphone went on to replace top-positioned expatriates at both Grameenphone and other international mobile companies in Asia. Executives who worked in Grameenphone's finance, accounting and human resources departments have also excelled both at home and abroad.

Furthermore, Grameenphone has been a key proponent of women empowerment by ensuring equality and commitment to their female employees. As of December 31, 2021, Grameenphone achieved a 15.9% female employee ratio in their local workforce, with plans of increasing the number to 20% within the next year. As per the report, Grameenphone has taken several steps to ensure gender diversity in their company, including hosting 87% female talent recruitment in 2021, introducing female-centric critical skill training and providing more role mobility and mentorship to women.

Historic IPO placement

Grameenphone made significant achievements in the nation's economic growth through their initial public offering (IPO). In December 2008, just three months after the historic collapse of Wall Street, Grameenphone was able to close the pre-IPO private placement of their shares at an amount of $60 million (Tk. 413 crore) to local institutional investors. By offering the company's stocks for sale, Grameenphone provided a platform where the local stock market could recover from the global financial crisis.

Each share was sold for up to Tk. 7.40, at an increased amount owing to the huge demand. The IPO generated interest in the international stock market as well, with 34,720 out of the total 312,501 shares being allocated to non-resident Bangladeshis. A report from the Financial Times of London in 2009 states that due to this unexpectedly successful IPO, Grameenphone had caused a record 21% rise in the Dhaka stock market back then. As such, the IPO restored faith in the then-struggling local stock market.

Helping telecommunication thrive

Grameenphone has helped many local companies with the international knowledge and skills required to manufacture, install and maintain mobile towers in Bangladesh. In 1997, Grameenphone had to spend $50,000 on the installation of each mobile base station tower, owing to dependency on foreign technicians and materials. Now, the same job can be achieved in less than $1,000 thanks to a much more efficient locally-based system.

These advancements in the telecommunication sector lead to improvement of skills and services in mobile service companies across the nation, even helping develop fields such as optical fibre installation, alternative power solutions and microwave radio maintenance. The report states that Grameenphone-developed industries have found success both locally and internationally, with Grameenphone awarding Tk. 800 million to such businesses every year. As a result, Grameenphone's contributions keep paving the path for a more economically efficient and resourceful Bangladesh.

[The viewpoints and findings in this article are based on Abu Saeed Khan's compiled report 'Partner in Digitalization 1997 - 2022'. You can find the entire report on Grameenphone's official website, accessible here.]