The state-owned Bangladesh Submarine Cable Company Ltd (BSCCL) mulls over cutting down its internet bandwidth price significantly.
The company wants to do so to remain in race, as private sector service providers are gradually grabbing the major share of the business, sector insiders said.
They said BSCCL's bandwidth price is almost double than those of the private operators. As a result, customers are shifting from BSCCL to those operators.
International Terrestrial Cable (ITC) operators are selling per Mbps bandwidth at around Tk 2,000, while BSCCL rate is more than Tk 4,000. The government has set Tk 8,000 as the highest ceiling for BSCCL for the same bandwidth.
BSCCL's biggest client - Bangladesh Telecommunications Company Ltd (BTCL) - sells per Mbps bandwidth at Tk 4,800 at retail level.
According to the telecom regulator, the country's total bandwidth consumption is around 58 Gbps for both voice and internet. Of the volume, BSCCL sells around 25 Gbps, while the six ITC operators sell 33 Gbps.
The ITC operators are Novocom, Asis-AHL JV, Summit Communications, Mango Teleservices, Fiber@Home and BD Link Communication.
Both BSCCL and the ITC operators sell bandwidth to IIG (International Internet Gateway) operators that sell bandwidth to Internet Service Providers (ISPs), mobile phone operators and WiMAX operators.
Officials informed the FE that the ISPs are buying bandwidth from BSCCL mainly for voice service because of its high quality. However, they are buying internet bandwidth from the ITC operators without considering quality due to lower price.
BSCCL managing director Monwar Hossain said, "We have no alternative but to cut price. But the country's bandwidth market is so unstable at present. We have to wait for some days until it becomes stable."
"Unlike the private operators, we cannot take decision regarding price reduction instantly, as we have some obligations," he added.
Suman Ahmed Sabir, chief technology officer of Fiber@Home, said bandwidth price is a major factor where the market is so competitive. So, the ISPs are going to the ITC operators.
There are some differences between bandwidth quality of BSCCL and the ITC operators. But taking bandwidth from the ITC companies does not create problem in providing internet service. There is no chance of compromise regarding quality of voice service, he added.
Currently, some of the IIG operators - BTCL, Mango Teleservices, bdHUB, Level 3 Carrier, Fiber@Home, Summit Communication, Aamra Technologies, BD Link Communications, Cyber Gate, Novo Com and Equitel Communication - are receiving around 13 Gbps internet bandwidth from BSCCL.
BSCCL has nearly 200 Gbps bandwidth capacity under SEA-ME-WE 4 submarine cable. Ninety per cent of the company's total bandwidth capacity has remained unused. Besides, BSCCL is being connected with another high capacity submarine cable by next two years.
On the other hand, six ITC operators' bandwidth capacity is around 50 Gbps, and they are making the maximum use of their capacity.
BSCCL had monopoly in internet bandwidth business just several months ago, when there was no competitor in the market.
But the scenario changed when six ITC operators started importing bandwidth by taking licence from the telecom regulator last year, sector insiders added.
© 2024 - All Rights with The Financial Express
