Most ICX operators struggling for survival in saturated mkt

Most of the operators doing Interconnection Exchange (ICX) business in the country are struggling for survival in the competitive and saturated telecom market, sources said.
Currently, too many companies are engaged in the limited ICX business in Bangladesh, they said adding that unequal call distribution had put the business of a good number of the companies in dire straits.
At present, some 26 operators are providing ICX services. The operators work as the mediator for call distribution of the mobile phone operators, landline operators and international incoming calls.
Sources said three old operators along with a few new companies that are politically potential are in good position in the ICX business while the rest of the operators are getting a poor number of calls from the respective channels which is insufficient for survival in the market.
Chief Executive Officer (CEO) and one of the share holders of Summit Communications Limited (SCL) Arif Al Islam told the FE: "Most of the ICX operators' business is not viable because of the number of operators being greater compared to the market size."
"If the players had been 3 to 6 in number, then it would have been sustainable for them," he mentioned. Mr Arif has also an ICX operation under the name 'Vertex Communications Ltd'.
He said, "We are talking with the regulator to ensure equal call distribution, but there is need for a common platform of the 26 operators in this connection."
Bangladesh Telecommunication Regulatory Commission (BTRC) had issued 23 new licences in the ICX category in April 2012 which was only three in 2008. The old three licensees are Bangladesh Telecommunications Company Limited (BTCL), Getco Telecommunications Limited and M & H Telecom.
Following the existing conditions, the ICX operators applied for reduction of their annual fees to get some relief from the hardship.
In response to the ICX operators, the telecom regulator reduced the annual fees by 50 per cent for them through amendment to the existing guideline and licensing conditions.
Following the change in the guideline and licence, the operators will pay Tk 12.5 million as annual fee instead of Tk 25 million, which will be effective from 2014, according to recent directive of the BTRC.  
The directive says: "The amendment will be applicable for the annual licence fee for 2014 and subsequent years. So, you are requested to comply with the amended provisions mentioned above."
The provisions 16.02 (3) and 16.03 (c) of the guideline and 8.01 (1) and 8.02 (a) of the licence have been amended.
As a result of the changes, the revenue of the government from this sector will come down to 320 million (32 crore) from 650 million.
A BTRC official said the commission took the decision for reducing hardship of the ICX operators.
Talking about the BTRC initiative, SCL CEO Mr Arif said the BTRC step would help reduce financial burden of the ICX operators to some extent.