Mere conversion of BTTB into PLCs will hardly serve any purpose
Thursday, 19 June 2008
Quamrul Alam and Mohammad Abu Yusuf
The Bangladesh Telegraph & Telephone Board (BTTB) has been the monopoly telecom service-provider before private sector telecom operators entered the telecom market. As the main service provider, the BTTB could not meet up the demand for telecom services. Moreover, subscribers were dissatisfied with poor service quality, delay in getting main-line connection, and inaccurate billing. After the launching of mobile and private land-phone by private operators, the scenario has been drastically changed. Instead of on-the-wait list for a number of years, which, in one instance, extended to 27 years (In 2005, a Dhaka-based newspaper published a story of a sixty-year-old man who just received a fixed phone connection after a twenty-seven-year wait) anyone willing to install a land phone at his/her residence or business place can now have it in a day (from private land phone company) and start using it under pre-paid or post-paid arrangements. In the case of mobile phone, any one can buy the SIM card, handset and use it in a couple of hours. The quick, hassle free and relatively cheap service by private operators threw the BTTB in the face of a great challenge.
The BTTB has been, for quite some time, experiencing the pressure of competition. It had to reduce its monthly line rental and tariff for a number of times but failed to prevent its subscribers' switch to mobile and other private land-line operators. The main reason for the BTTB's inability and poor performance is delay in decision-making due to bureaucratic style of management, inadequate investment to modernise the sector, rent-seeking mentality and hassles of a section of its employees. Although the BTTB earns more than Tk. 15 million (1500 crore) for the government, it has not been able to secure sufficient capital to modernise and expand its telecommunications infrastructure.
In this backdrop, the government has recently transformed the state-owned telecom giant into two public limited companies (PLCs) -- Bangladesh Telecom Company Limited (BTCL) and Bangladesh Sub-Marine Company Limited (BSCL).
At this moment, it is important to note that mere transforming the BTTB into PLCs and appointing Boards for the new companies will not help much to ensure service quality, and make them competitive vis-
The Bangladesh Telegraph & Telephone Board (BTTB) has been the monopoly telecom service-provider before private sector telecom operators entered the telecom market. As the main service provider, the BTTB could not meet up the demand for telecom services. Moreover, subscribers were dissatisfied with poor service quality, delay in getting main-line connection, and inaccurate billing. After the launching of mobile and private land-phone by private operators, the scenario has been drastically changed. Instead of on-the-wait list for a number of years, which, in one instance, extended to 27 years (In 2005, a Dhaka-based newspaper published a story of a sixty-year-old man who just received a fixed phone connection after a twenty-seven-year wait) anyone willing to install a land phone at his/her residence or business place can now have it in a day (from private land phone company) and start using it under pre-paid or post-paid arrangements. In the case of mobile phone, any one can buy the SIM card, handset and use it in a couple of hours. The quick, hassle free and relatively cheap service by private operators threw the BTTB in the face of a great challenge.
The BTTB has been, for quite some time, experiencing the pressure of competition. It had to reduce its monthly line rental and tariff for a number of times but failed to prevent its subscribers' switch to mobile and other private land-line operators. The main reason for the BTTB's inability and poor performance is delay in decision-making due to bureaucratic style of management, inadequate investment to modernise the sector, rent-seeking mentality and hassles of a section of its employees. Although the BTTB earns more than Tk. 15 million (1500 crore) for the government, it has not been able to secure sufficient capital to modernise and expand its telecommunications infrastructure.
In this backdrop, the government has recently transformed the state-owned telecom giant into two public limited companies (PLCs) -- Bangladesh Telecom Company Limited (BTCL) and Bangladesh Sub-Marine Company Limited (BSCL).
At this moment, it is important to note that mere transforming the BTTB into PLCs and appointing Boards for the new companies will not help much to ensure service quality, and make them competitive vis-