Three private companies assigned to handle international calls are ready to go into operation by this week, indicating a breakthrough for callers who will not further depend on government's monopoly services.
The three new players, which will handle international incoming and outgoing calls, are Bangla Trac Communications, Mir Telecom and Novotel.
Bangladesh Telecommunications Company Limited, the formerly BTTB, has so far been the sole company in the field, handling overseas calls of 20 million minutes a day.
The entry of the new companies will widen the $2 billion market three times, industry insiders predicted.
During the last one year, the international call termination through the legal channel increased from nine million minutes a day to 20 million, after the telecom regulator launched a massive drive against illegal calls. The ratio of calls in and out of Bangladesh is 5:1.
The new operators along with BTCL will terminate international calls through the country's sole undersea cable. As per the international gateway (IGW) policy, the operators will share 51.75 percent revenue with the government.
"We are ready to introduce our services," said Mir Nasir Hossain, business partner of Mir Telecom, one of the IGW licensees.
Hopeful of having good days in business saying, Hossain said: "International call termination business mostly depends on telecom density, which has seen 30 percent growth on average in the last few years."
According to Bangladesh Telecommunication Regulatory Commission (BTRC), the country's tele-penetration rate is 29 percent thanks to robust growth of mobile telephony.
Along with IGWs, the BTRC in February also awarded licences to two other local companies -- M&H Telecom and Getco Telecommunications Ltd for interconnection exchange (ICX) services.
From the technical side, overseas incoming calls to be received by the IGW operators will reach users by mobile or landline phone.
According to the IGW policy, 80 percent of calls to Bangladesh will be terminated at each of the four IGW operators, which will compete for the remaining 20 percent.
Although private IGW operators will have to share majority revenue with the government, the business will boom in future as the number of outbound workers increased in the last two years, said Tarique Haque, chief executive officer of Bangla Trac Communications.
The main customers of international calls are Bangladeshi expatriates. According to a government estimate, about 60 lakh Bangladeshi workers work in different countries. The growth of manpower export witnessed 100 percent growth in 2007-08.
The 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 nine lakh in 2009.
Along with the illegal channel, Haque said, every day 50 million minutes calls have gone in and out of Bangladesh. "Definitely it will increase, when customers get better services."
The new IGW operators started their marketing to get international carriers. Rezaul Kabir, chief commercial officer of Novotel, said they have already six international carriers.
According to the related policy, he said, the market will open in future. "So marketing for having a bilateral deal with international phone operators will be a crucial factor."
The BTCL's revenue will drop significantly as it will have to compete with private operators.
"As per our estimate, in entrance year of private IGW operators, BTCL's revenue from this segment will come down by at least 30 percent," said Iqbal Mahmud, BTCL chairman. "This is the service, which mostly depends on quality and BTCL failed to show its capacity.
However, he said although BTCL's revenue will erode, the government will earn a lot from private operators.
According to BTCL's annual report, last year BTCL's earnings from international call termination reached Tk 1,200 crore.
The three new players, which will handle international incoming and outgoing calls, are Bangla Trac Communications, Mir Telecom and Novotel.
Bangladesh Telecommunications Company Limited, the formerly BTTB, has so far been the sole company in the field, handling overseas calls of 20 million minutes a day.
The entry of the new companies will widen the $2 billion market three times, industry insiders predicted.
During the last one year, the international call termination through the legal channel increased from nine million minutes a day to 20 million, after the telecom regulator launched a massive drive against illegal calls. The ratio of calls in and out of Bangladesh is 5:1.
The new operators along with BTCL will terminate international calls through the country's sole undersea cable. As per the international gateway (IGW) policy, the operators will share 51.75 percent revenue with the government.
"We are ready to introduce our services," said Mir Nasir Hossain, business partner of Mir Telecom, one of the IGW licensees.
Hopeful of having good days in business saying, Hossain said: "International call termination business mostly depends on telecom density, which has seen 30 percent growth on average in the last few years."
According to Bangladesh Telecommunication Regulatory Commission (BTRC), the country's tele-penetration rate is 29 percent thanks to robust growth of mobile telephony.
Along with IGWs, the BTRC in February also awarded licences to two other local companies -- M&H Telecom and Getco Telecommunications Ltd for interconnection exchange (ICX) services.
From the technical side, overseas incoming calls to be received by the IGW operators will reach users by mobile or landline phone.
According to the IGW policy, 80 percent of calls to Bangladesh will be terminated at each of the four IGW operators, which will compete for the remaining 20 percent.
Although private IGW operators will have to share majority revenue with the government, the business will boom in future as the number of outbound workers increased in the last two years, said Tarique Haque, chief executive officer of Bangla Trac Communications.
The main customers of international calls are Bangladeshi expatriates. According to a government estimate, about 60 lakh Bangladeshi workers work in different countries. The growth of manpower export witnessed 100 percent growth in 2007-08.
The 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 nine lakh in 2009.
Along with the illegal channel, Haque said, every day 50 million minutes calls have gone in and out of Bangladesh. "Definitely it will increase, when customers get better services."
The new IGW operators started their marketing to get international carriers. Rezaul Kabir, chief commercial officer of Novotel, said they have already six international carriers.
According to the related policy, he said, the market will open in future. "So marketing for having a bilateral deal with international phone operators will be a crucial factor."
The BTCL's revenue will drop significantly as it will have to compete with private operators.
"As per our estimate, in entrance year of private IGW operators, BTCL's revenue from this segment will come down by at least 30 percent," said Iqbal Mahmud, BTCL chairman. "This is the service, which mostly depends on quality and BTCL failed to show its capacity.
However, he said although BTCL's revenue will erode, the government will earn a lot from private operators.
According to BTCL's annual report, last year BTCL's earnings from international call termination reached Tk 1,200 crore.
Source:
http://www.thedailystar.net/pf_story.php?nid=50968
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