Some policy options for new telecom companies
Mohammad Abu Yusuf | Sunday, 6 July 2008
The Bangladesh Telegraph and 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 connections, and inaccurate billing. After the launching of mobile and private land phone by private operators, the scenario has been drastically changed. Instead of being on the wait list for a number of years, which in one instances 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, hands set 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-over to mobile and other private land line operators. The main reason for the BTTB's inability and its 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 annually more than Tk. 15 billion (1500 crore) for the government, it has not been able to secure sufficient capital to modernise and expand its telecommunications infrastructure.
In the backdrop of this scenario, the government has recently transformed the state owned telecom giant it into two public limited companies (PLCs) -- Bangladesh Telecom Company Limited (BTCL) and Bangladesh Sub-Marine Cable Company Limited (BSCCL).
At this moment it is important to note that mere transforming the BTTB into companies and appointing Boards for the new companies will not help much to ensure service quality, and make the public limited company (PLC) a competitive one vis-
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-over to mobile and other private land line operators. The main reason for the BTTB's inability and its 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 annually more than Tk. 15 billion (1500 crore) for the government, it has not been able to secure sufficient capital to modernise and expand its telecommunications infrastructure.
In the backdrop of this scenario, the government has recently transformed the state owned telecom giant it into two public limited companies (PLCs) -- Bangladesh Telecom Company Limited (BTCL) and Bangladesh Sub-Marine Cable Company Limited (BSCCL).
At this moment it is important to note that mere transforming the BTTB into companies and appointing Boards for the new companies will not help much to ensure service quality, and make the public limited company (PLC) a competitive one vis-