Rajeev Sethi assumed the role of Managing Director and Chief Executive Officer of Robi Axiata in October 2022. Prior to this, he was associated with the mobile operator Ooredoo in Myanmar. He also served as the Chief Commercial Officer of Airtel Africa. His professional journey includes leadership roles in renowned companies like Vodafone, HP, Hutchison Telecom, and Asian Paints. An MBA specializing in marketing, finance, and operations, Sethi’s familiarity with Bangladesh is not recent. He has previously held the position of CEO at GrameenPhone. In an exclusive interview with UNB, Sethi talked about Robi’s growth, his experience in the telecom sector in Bangladesh and more.
UNB: Robi recorded a 16 percent leap in its revenue in FY 2023. Profits also went up by 74 percent. Can you elaborate on that?
Rajeev Sethi: Setting records isn’t necessarily crucial. It’s common for expanding businesses to break their own revenue records annually. However, what stands out is Robi’s impressive rate of business expansion in 2023. The company saw its highest revenue and profit growth in its 27-year history that year. Furthermore, Robi’s 2023 growth outpaced all other telecom companies in Bangladesh. Based on the data available for mobile operators in the Asia and Pacific region, Robi’s growth was unmatched.
UNB: What do you believe contributed to this success?
Rajeev Sethi: It’s the outcome of persistent endeavours. We’ve significantly enhanced our network. I can confidently state that Robi currently has the superior network for both voice calls and internet usage. This is a key factor in our success.
We’ve simplified our internet and minute packages to be user-friendly. We’ve strived to provide packages that cater to our subscribers’ preferences. Our branding efforts have also been successful. We’ve launched a new branding campaign called “Parbe tumio”.
The positive business results are the culmination of all these efforts.
UNB: Why hasn’t Robi, despite being operational since 1997, been able to generate profits at the same level as its competitors?
Rajeev Sethi: There are multiple factors at play. The game is all about numbers and reach. The higher the subscriber count, the greater the revenue and profit. More subscribers translate to reduced operational costs per subscriber. Given the current state of the telecom sector, it’s challenging for smaller operators to boost their profits.
Globally, various steps are taken to safeguard these smaller entities. This issue was also brought up in Bangladesh a few years back, but no effective measures were implemented. It’s not just about the profit or loss of any single operator. If a monopoly exists in the market, the subscribers are the ones who stand to lose.
UNB: Having had experience in the telecom sector of Bangladesh, what is your evaluation of the sector’s regulations, policies, and other rules?
Rajeev Sethi: This question can be approached in several ways. One perspective is that the telecom sector in this country is an attractive investment opportunity due to the high population density, which is beneficial for establishing telecom infrastructure. A significant part of the population is young and eager for new experiences. Many homes without broadband connections present further opportunities for the telecom sector. However, the sector is burdened with extremely high taxes. For every 100 taka earned, 56 goes to the government – a rate that is double compared to neighbouring countries. The absence of a unified license to offer telecom services at various levels means that a company cannot independently provide all services and must rely on the tower company. This dependency not only increases costs but also impacts the quality of service.
UNB: As an Indian living in Bangladesh, how would you compare the network quality of the two countries?
Rajeev Sethi: It really hinges on the standard of comparison. However, I can affirm that the network quality I experience in Dhaka surpasses that in Delhi.
UNB: There are complaints from consumers in Bangladesh about the service quality. Specific issues include lack of network coverage at home and call drops. What’s your perspective on this?
Rajeev Sethi: It’s common for people to voice their complaints on social media when they’re dissatisfied with a service, rather than when they’re content. Given the millions of calls made daily, a few call drops are inevitable due to the imperfect nature of radio waves. It’s important to assess whether the call drop rates exceed both local and international standards. For instance, Robi’s call drop rate is 0.3, the lowest in the country. However, we continuously strive to enhance our service. We’re attempting to establish towers in certain challenging locations like Ukhia in Cox’s Bazar, but acquiring the necessary land for tower setup presents its own set of difficulties.
UNB: Isn’t there also a need to augment the number of towers in Dhaka?
Rajeev Sethi: Definitely. We have the equipment to establish approximately 600 towers, but they’re currently unused in our warehouse due to space constraints. We’re in talks with regulatory bodies and tower companies. The idea of sharing towers seems promising, and we’re exploring that possibility.
UNB: What strategies can be employed to boost internet usage in Bangladesh?
Rajeev Sethi: The majority of individuals in Bangladesh access the internet via their smartphones. To boost internet usage, it’s crucial to make smartphones more affordable; they are currently quite expensive in this country. Local firms have begun producing smartphones, and it’s worth exploring how to reduce their prices.
UNB: The government is discussing the implementation of high-speed 5G internet service. Are the service providers prepared, and is there a market demand for 5G?
Rajeev Sethi: In terms of service providers, we are indeed prepared for 5G. However, the market readiness is a separate issue. For the average user, 5G won’t significantly alter their experience, as it will be similar to their current internet movie-watching experience. The real need for 5G lies in the industrial and service sectors. The extent of automation in these sectors needs to be evaluated.
UNB: Why did Robi recently establish two subsidiary firms, Axentec and r-ventures?
Rajeev Sethi: The primary purpose of these subsidiaries is to cater to business entities. Currently, the revenue from this sector is minimal, but it’s expected to grow as services expand in the future. With a forward-looking approach, a new company has been established and a new CEO has been appointed. It’s noteworthy that similar businesses have seen a significant increase in revenue in neighbouring countries.
UNB: Is Robi considering issuing additional shares in the capital market?
Rajeev Sethi: This falls under the purview of the board of directors. However, to the best of my knowledge, it’s not currently being considered.
UNB: What would you highlight as the challenges and opportunities of investing in Bangladesh?
Rajeev Sethi: Investors prefer a stable policy environment as it facilitates strategic planning. Abrupt alterations in government policies related to investment can cause concern among investors. The presence of a third-party dispute resolution mechanism is crucial in business, a role typically fulfilled by the court. An unbiased judicial system is a fundamental requirement for investment. If one were to select a country for investment in the telecom sector, Bangladesh would be a prime choice. The country offers numerous advantages for investment.
UNB: What is your perception of Bangladeshis after working here for an extended period of time?
Rajeev Sethi: I have a deep affection for Bangladesh. People here are incredibly amicable and possess a keen interest in gaining knowledge and learning. Their passion for cricket is evident. This country is brimming with untapped talent that the world is yet to discover. We conducted a talent hunt in the digital sector and were astounded by the exceptional young talents we found. Unlike me, who is in the 40 to 50 age bracket, these are young individuals aged around 25 to 30. They require an appropriate platform to showcase their abilities.
Robi’s Financial Facts for 2023
Robi reported a revenue of approximately Tk 99.42 billion and a post-tax profit of Tk 3.21 billion. The total investment since the company’s inception is Tk 380 billion. The company boasts a subscriber base of 55.7 million. It was listed on the stock market on December 24, 2020, with a share market value of Tk 31.20 and offers a cash dividend of 10%.
Brief overview of Robi
The Axiata Group Berhad, based in Malaysia, holds a 61.82% stake in Robi. Bharti Airtel from India owns 28.18% of the shares, while the remaining 10% is held by general shareholders in Bangladesh. The company was jointly launched in 1997 by Telecom Malaysia and AK Khan and Company of Bangladesh under the brand name Aktel. In 2008, AK Khan and Company sold their shares. The company underwent a rebranding in 2010, changing its name from Aktel to Robi.