Top Bangladesh telco posts 10 pct growth in Q3

DHAKA, Oct 29 (Reuters) - Bangladesh's top mobile phone operator, Grameenphone, 62 percent owned by Norway's Telenor (TEL.OL), said on Thursday it posted a 10 percent rise in its third-quarter revenue to $239 million and added almost 1 million new subscribers.

Shares from its initial public offering of $70 million, the impoverished country's biggest ever, are likely to make their stock exchange debut in November, which is subject to approval from regulators.

The growth was attributed to a higher number of subscribers, higher average prices and increased interconnectivity revenues due to the introduction of an international gateway from the fourth quarter of 2008, which were partly offset by reduced fees on local interconnect calls.

Average revenue per user (ARPU) increased by 6 percent compared to same period of last year, mainly because of a raised tariff floor.

"A rising ARPU is a good indicator for both the industry and a sign of slow economic recovery," said Grameenphone Chief Executive Oddvar Hesjedal.

"However, reduction or removal of the 800 taka ($11.5) SIM tax will help the economy recover sooner because Internet and telecommunication penetration generates faster economic activity and community development," he told a news conference.

The firm, which has a market share of 44 percent, will enjoy a tax cut of 10 percentage points introduced by the government for cellphone operators that list on the stock exchange.

The shares will be quoted on both of the country's stock exchanges in Dhaka and Chittagong, and the listing is expected to play a significant role in adding depth to the market, analysts said.

Bangladesh's mobile sector has grown rapidly, with subscriber numbers reaching more than 50 million in September from 200,000 in 2001, helped by competitive tariffs, cheap handsets and steady economic growth.

At end-September Grameenphone had 21.98 million subscribers -- well ahead of Egyptian Orascom Telecom's (ORTE.CA) Banglalink and Telecom Malaysia's (TLMM.KL) Aktel.

Although nearly half of Bangladesh's population is still below the poverty line, the country has been one of Asia's fastest growing cellular markets. ($1 = 69.15 taka)