September 28 2009

The nascent call handlers are worried about losing business, as the telecom regulator has announced to issue eight more licences in a bid to set up both local and international call handling exchanges soon.

The existing call handlers said the new operators will not be a problem for them if the guidelines for the new licences remain the same.

They said there remains a chance of manipulating the licence awarding process.

According to International Long Distance Telecommunication Services Policy, there is an obligation not to award more than three IGW licences. However BTRC officials said the policy is under review and the clause may be amended.

The last caretaker government issued three International Gateways (IGWs), two Interconnection Exchange (ICXs) and one International Internet Gateway (IIG) licences to local private sector to provide national and international data and voice services.

Bangladesh Telecommunication Regulatory Commission (BTRC) has set guidelines to award additional phone call and internet data handling licences recently for public consultation.

According to IGWs and ICXs operators, on an average calls worth 21 million minutes enter Bangladesh every day through legal channel, which sometimes come down to 15 million minutes due to illegal call handlers' operation.

Industry insiders said illegal VoIP (voice over internet protocol) operators were offering less than 2 cents when the government fixed the rate at 3 cents. Such illegal business also keeps the call handlers far beyond the expected revenue earnings.

According to legal call handlers' business model, call volume should be raised by more than 40 percent if they want to keep their revenue at the earlier level when they charged 4 cents. But it does not happen as yet.

"So the move to issue new licences will create panic in the market," said a call handler.

However the BTRC officials said the market will be more competitive if new operators come.

"There is no other alternatives to make the market competitive," said a BTRC high official.

"It's a new threat to the novice telecom call handlers," said Mir Nasir Hossain, president of Telecommunication Infrastructure Operators of Bangladesh.

"We have just invested in the sector, and expected returns are yet to come. We don't understand why the government is planning to allow new players at this stage," he said.

Besides local callers, the main customers of international call handlers are Bangladeshi expatriates. According to a government estimate, around 60 lakh Bangladeshis work abroad. Manpower export witnessed a 100 percent growth in 2007-08.

Government data shows the number of outbound workers was only four lakh in 2007, which increased to eight lakh in 2008. The government expects the number of migrant workers to go up to nine lakh in 2009.

The increased number of outbound workers has intensified local businessmen to go for big investment in the sector. Bangladesh has 48 million telecom customers and the most are mobile phone users.

Source: the Dailystar