Govt to update nat'l telecom policy

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Jamal Uddin The government has moved to update the country's 'national telecom policy (NTP)' aiming to attract more foreign and local investment in the sector. The government has also targeted to achieve higher economic growth through further expansion of telecom connectivity at grassroots levels. "The revised policy will be a roadmap for transforming the sector through the adoption of appropriate policy settings and much more reliance on market forces to deliver better investment, development and service outcomes," said posts and telecommunications ministry secretary Abubakar Siddique. The first telecom policy was introduced in 1998 and now it has being updated after the NTP-2012 for the next generation to extend existing service coverage beyond the cities. The International Telecommunication Union (ITU) expert Jim Holmes recently prepared a draft NTP-2012 policy for Bangladesh, the official said, adding that the telecom ministry has already posted the draft on its website for public opinion. Mr Siddique told the FE Wednesday that a series of stages would be followed before finalising the proposed policy to make it effective and time-bound. Among the stages, the authorities will consult with different stakeholders including policy makers, network operators, service providers and ministries concerned, he mentioned. He expressed the hope that it would take at least four to five months to give the proposed NTP-2012 a final shape. In its draft policy, the ITU suggested the new policy needs to be evidence-based and to be realistic about the capacity of the Bangladesh economy to sustain rapid transformation in the telecommunications sector. ITU observed there are many aspects to the investment challenge and they include removing sub-sector restrictions to foreign direct investment (FDI). The licence types including Interconnection Exchange (ICX), International Gateway (IGW) and Nationwide Telecommunication Transmission Network (NTTN) that have no value chain for the industry except avoidable cost needs to be addressed quickly. To become a middle income country within a generation, the country will be relying heavily on the direct foreign investment, the ITU-made draft policy mentioned. In the action plan, ITU expert Jim Holmes said the regulatory administration underscored the need for public consultation on all major decisions other than individual licence enforcement. Though there is legislative provision for the establishment of a social obligation fund (SoF) but it has not yet been implemented in the country, he observed. The main features of the draft policy are: major and continuing investment required for new platform to provide 4G mobile service and fixed and mobile broadband services; rent seeking licences including ICX, IGW and NTTN are incompatible with an efficient industry; affordable access to telecommunication services will extend to all individuals, household and business in Bangladesh wherever they reside or locate; changes in policy, legislation and regulation after public consultation process; telecom to be considered in boarder context not a short term taxation opportunity.