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VoIP policy: Soft landing at long last!

Thursday, 23 August 2007


Shahiduzzaman Khan
At last, the government has approved the long awaited international long distance telecommunication services policy, much to the relief of the telephone users and the stakeholders.
It is expected that the policy will open up the Voice over Internet Protocol (VoIP) and bring discipline in this potential sector. Reports published in the media this week said that the government will auction three international gateway (IGW) and two inter-connection exchange (ICX) licences among private operators in October this year. But no foreign company or overseas joint venture will be allowed to apply for IGW or ICX licence. Even the non-resident Bangladeshis' business outfits are not eligible either. Only the companies fully owned by resident Bangladeshi citizens are qualified for these international telecom licences.
The regulatory authority -- Bangladesh Telecommunications Regulatory Commission (BTRC) -- is apparently trying to give an 'indigenous' look to the long distance telecom sector. Such a step is always good for the country's welfare. So far, illegal telecom operators made bumper businesses with voice over internet telephony in the absence of an effective telecom regulatory policy. Hundreds of illegal operators brought small aperture terminals from abroad clandestinely and launched VoIP exchanges mostly in the capital city and Chittagong. Illegal VoIP business operated with the active cooperation from a section of officials of the BTTB and the telecom ministry. After the caretaker government took over, crackdown began on this illegal business. VoIP equipment and exchange worth billions of taka were seized by the members of the Rapid Action Battalion (RAB). Most of the illegal businesses were closed down. But the sufferings of the international callers mounted with the termination of illegal exchanges. Still now, the international callers have to wait for hours together for their overseas calls getting through as the BTTB has only limited channels to cater to the huge demand.
Now, along with the state-owned BTTB, private operators will be coming to the scene to offer VoIP facilities to the beleaguered customers. The BTRC will invite applications from mid-September and organise meeting after two weeks, followed by holding the auction in October sometime after the Eid-ul Fitr. The private international phone services are expected to begin in mid-2008.
What will be the fate of V-SATs being used by some private and mobile operators when the government is going to discourages their use? To this question, the BTRC explains that the authorities will assess the justification of using V-SATs on a case-to-case basis and decide accordingly. In some respect, its use appears to be permanently banned. What will happen when there is a major disruption in international telecom service following shutdown of BTTB's submarine cable? This is a pertinent question as there will be no back-up of private V-SATs to come to the rescue.
Indeed, Bangladesh is linked to only one submarine cable while most of the countries have two or more optic fibre cable connections. When the first offer of joining the optic fibre cable came about one decade and a half ago, it was rejected by the then government on silly 'security ground'. What a 'wise' decision that was! The government had failed to understand what was submarine cable and what was its utility. When it was able to understand, much time had already elapsed. However, Bangladesh joined a consortium of submarine cable much later. In case of any major disaster, the country will have to wait until its repair, use backup link via satellite or wait for linkup to another undersea telecom cable.
The BTTB gets both IGW and ICX licences by default being incumbent international service provider. Experts are questioning the efficiency of the state-owned operators in using these licences. The BTTB is bedevilled with widespread irregularities. Such a big state-owned operator cannot handle the lone affairs of land phone business properly. Land phone charge is still one of the highest in South Asia. Trouble with ghost billing and phone shifting still haunts the customers. With availability of a little cheap mobile connections, many subscribers are shying away from the BTTB and getting mobile connections. Trade union leaders have allegedly been tightening their grip on the BTTB administration, in an effort to obstruct the BTTB from being converted into a holding company. When this has been the state of affairs inside the BTTB, how could it be an effective body in handling overseas calls?
The BTRC chief admitted a very hard reality. He said interconnection problem challenges the government's roadmap to privatise the international telecom services. He criticised the BTTB and a mobile operator for not fully complying with the interconnection law. Both are charging 'very high prices' for their nationwide transmission capacity. Henceforth, an effective interconnection regime has been stipulated in the new licences to ensure a level-playing field, he stated. What is important at this stage is that the inter-connection problem be addressed first for the smooth implementation of the long distance telecom policy.
The BTRC claimed that it had consulted many resource persons and academics while preparing this comprehensive long distance telecom policy. It is heartening to note that within a short time, the policy has been prepared and approved, much to the relief of the users and the stakeholders. Nevertheless, a policy may be good, but its effective implementation depends on seriousness and honesty of the people and agencies concerned. The BTTB is already a problem-ridden state entity. Private operators' dependence on calls routing to overseas destinations via BTTB's submarine cable might end in disaster. Besides, there is a need to strictly regulate international call tariffs, so that these do not become expensive. Users must get some relief from existing high call charges.