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REVENUEBDT (Billion)EBITDABDT (Billion)PATBDT (Billion)SUBSCRIBERS(Million)BLENDED ARPUBDTBLENDED MOU(Mins)4.2(1.2)0.96.714.619.98.711.92162071771602008 20092008 2009 2008 20092008 20092008 20092008 2009* Minutes ofuse/sub/monthBUSINESS REVIEW 2009In 2009 Robi embarked on severalinitiatives to strengthen its positioni n t h e m a r k e t , i n c l u d i n g t h estrengthening of distribution andchannels to improve product reach,availability and visibility. It alsomoved away from a regional focusstrategy to nationwide focus. Inefforts to drive business growth,R o b i e n h a n c e d i t s m a r k e t i n gpromotions through aggressivecampaigns.FINANCIAL PERFORMANCE2009 was a turnaround year forRobi, seeing further improvements inmarket share with five consecutivequarters of growth. Robi sawconsistent performance, 14consecutive months of YoY andeight consecutive months of MoMrevenue growth, with the support ofstrong improvement in its revenuegenerating base (RGB). Despite theregulatory challenges facing themarket, Robi recorded significantEBITDA margin improvement to33.6% in FY09, as compared to29.0% in FY08, as a result of highrevenue growth and continuous costmanagement efforts such as lowernetwork and direct costs.Profitability showed the greatestturnaround, recording a profit ofBDT857 million in 2009 from a lossof BDT1.18 billion a year ago.REGULATORY OVERVIEWAs part of ongoing reforms inthe telecommunications sector, theBangladesh TelecommunicationRegulatory Commission (BTRC)conducted a number of publicconsultations during the year tosolicit feedback on various strategicissues. This included SignificantMarket Power (SMP) and CompetitionRegulation in July 2009, theimplementation of Unified LicensingRegime (ULR) in October 2009 aswell as Draft Regulatory and LicensingGuidelines for InterconnectionExchange service (ICX), InternationalGateway services (IGW) and InternetInternational Gateway service (IIG) inOctober 2009.Despite efforts to reform the sector,the Bangladesh telecommunicationssector continues to be challenged bya fragmented licensing regime, itscurrent regulatory frameworks and ah i g h t a x a t i o n r e g i m e . M o b i l eoperators continue to be preventedfrom participating in certain newlicence opportunities.Additionally, the National Budget forfiscal year 2009-2010 was passed,retaining the supplementary duty fortelecommunications equipment at20% and SIM tax at BDT800 each, inorder to support Bangladesh’s budgetdeficit. Corporate tax for non-listedentities such as Robi is fixed at 45%.Robi, together with Association ofMobile Telecom Operators inBangladesh (AMTOB), the industryassociation, continues to engagewith primary stakeholders to appealfor a reduction of such entrybarriers.During the year, BTRC also continuedto monitor illegal VoIP in the country.The company, in collaboration withBTRC, implemented a self-regulatoryprocess in curbing illegal calltermination based on a monthlyreporting process to the regulator.Moving forward, we expect morefavourable regulatory reforms to beintroduced in the sector, particularlyin the area of licence renewal,competition safeguards, cost-basedinterconnection as well as consumerprotection.Axiata Group Berhad • 126