Yearly loss from incoming international telephone calls generated by international gateway (IGW) companies that are beyond its control
The BTRC is in favour of accepting a yearly loss of Tk10.73bn from incoming international telephone calls generated by international gateway (IGW) companies that are beyond its control because of their “powerful political connections”.
In a set of recommendations sent to the post and telecommunication ministry last week, the Bangladesh Telecommunication Regulatory Commission (BTRC) has also suggested that the government reduce the call termination rate by 50% – from $.03 to $.015 per minute.
At the same time it proposed a change in the government’s revenue sharing structure, reducing the government’s share from existing 51.75% to 40%.
A number of sources at the telecom regulator told the Dhaka Tribune that the BTRC also claimed that at present 35 million minutes international calls were generated a day and it had estimated the loss of Tk10.73bn based on this count.
But they said at least 50 million minutes of international calls were generated now, considering which the government’s yearly losses would cross Tk15bn. They said incoming calls generally increased up to 90m minutes a day during Eid and other festivals.
“We cannot approve it. Who will take the responsibility of this huge loss?” a high official at the telecom ministry told the Dhaka Tribune on Sunday, requesting anonymity.
BTRC Chairman Sunil Kanti Bose could not be contacted for his comments after repeated attempts.
Every international call now generates $.03 per minute, which is shared by the IGWs, interconnection exchanges, the mobile or land operators and the government. The BTRC has recommended re-fixing the rate at $.015.
Currently the BTRC gets 51.75% of $.03, the ICXs get 15%, the ANS operators get 20% and the IGWs get 13.25%.
The commission has recommended only 40% as the government’s share, 17.50% for the ICX, 22.50% for the telephone operators and 20% for the IGWs.
The BTRC proposal recognises that lowering the call termination charge and the government’s share will result in a revenue shortfall of Tk10.73bn – from Tk18.51bn earned from the IGWs and ICXs last year to Tk7.77bn.
The BTRC also acknowledges that it cannot manage the situation and take the right steps to reduce illegal call termination.
Supreme Court lawyer barrister Aneek R Haque told the Dhaka Tribune:
“What the BTRC has recommended is totally unlawful. It cannot violate a public auction decision!”
Aneek, who had held the auction of IGWs in 2008, said by changing these decisions the BTRC had unsettled the whole sector.
The commission, however, said the shortfall could be managed if the move reduced illegal call termination.
In its recommendation, it observed that the market had turned dull because of issuing too many IGW licences and lowering the rates would help the new IGWs sustain.
In its letter to the telecom ministry, the BTRC also claimed that the call termination rates in the neighbouring countries were much lower than what was in Bangladesh, such as in India it was only $.01.
Requesting anonymity, an official of the ministry said as the BTRC was favouring the IGWs it only presented information that would help these companies.
“India generates a huge volume of calls. On the other hand, Pakistan’s call termination rate is $.06 while in Sri Lanka it is more than $.06 and in Maldives $.25. Even a lot of European countries have rates of at least $.10,” the official said.
Incoming international calls were like exporting products, the official said, adding that the government had to think about it carefully.
“If the government wants to lose foreign currency by exporting products, we have nothing to say. But it is clear that the BTRC is not working in favour of the country.”
A high official at the BTRC said: “The situation is deteriorating every day. If the policymakers do not take control of the situation, nobody else can help.”
He said if the government fixed the call termination rate at $.015, the BTRC would urge it to reduce it again after a few days.
The rate was $.06 before 2009. It was later re-fixed at $.04 and again at $.03 in May 2011.
Sources claimed that when the call termination rate was $.06 the number of legal incoming calls was around 40 million, but the calls had not increased even though the rate was half now. Fixing the rate at $.015 would not help improve the situation, they said.
The BTRC awarded 1,000 VoIP licences allegedly on “political consideration”, which many said would create anarchy in the industry.
Mir Nasir Hossain, president of the Telecommunication Infrastructure Operators of Bangladesh, praised the BTRC proposals for reducing the call termination rate and the government revenue sharing.
“As the market is overpopulated there is no discipline. I assume no IGW can survive in near future and we are very frustrated,” he said.
Source: Dhaka Tribune
Many knew that Bangladesh will become a ‘happy hunting ground’ for a section of ‘powerful’ people together with their off-boundary/off-shore collaborators one day. In spite of supporting the liberation war, they were apprehensive of such things to be happening in the future. The above news report only prove that apprehension true. It’s the foolish sentiment and tendency of our people to worship ‘personality cult’ that such ‘plundering’ has been going on unhindered. Who will stop that? It also appears that Bangladesh though being a country of 90% (?) Muslim population, no worthy or trustworthy and patriotic Muslim officer has been available to preserve the national interest. What a misfortune for us!