VoIP service providers renting out licences to IGW operators for survival

Jamal Uddin | Published: April 21, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

Many local VoIP service providers are now renting out their operating licences to the International Gateway (IGW) operators for survival in the absence of required overseas calls from IGW companies, industry insiders said.
They said as per rules, the IGW operators are bound to terminate call through VoIP Service Providers (VSPs) and share a part of their revenue earnings with them. That is why, the operators are managing VSP licences on rental basis under third party arrangement.
General Secretary of Bangladesh Association of VoIP Service Provider (BAVSP) Engineer Khondoker Romel said, "The VSP operators have no future in the existing situation. Therefore, they are giving their licences on rental basis to ensure monthly income."Â Â
Monthly rent of most of the licences is Tk 40,000 each.
The government issued around 1000 VSP licences last year hoping to generate huge employment in the sector.
However, the government's move to help flourish the country's VoIPÂ (Voice over Internet Protocol) service providers like small and cottage industry has made little progress as majority of such companies still remains non functional.
The VSPs have no option to generate calls directly or from IGW operators. At this stage, the VSP operators are bound to lease out their licences to the IGW operators, sources said.
BAVSP secretary Mr Romel said, "His association is engaged in negotiation with the telecom regulator to create business opportunity for them. But the legal complexity and volatile situation in VoIP market pose challenge to their survival.
He said the IGW operators are doing monopoly business in the VoIP sector. Even, they are not terminating the VoIP call at the rate of $3.0 cents fixed by the government. As a result they are not interested in sending calls through VSP.
He blamed the regulator's policy in this regard which make them nonfunctional.
"We cannot see any prospect in future for doing good business by using the licence under the present situation," said Mr Romel. According to the telecom act, they have no legal authority to terminate calls directly by using E1, he added.
Industry sources said the number of legal VoIP call termination is fluctuating from 55 to 60 million per day which was earlier below 45 million.
They said only some VSP operators have knowledge in VoIP business who are using their licences to run illegal VoIP business.
The market of the VoIP call remains volatile and the IGW operators are struggling to survive due to large number of competitors. So, how thousands of VSP operators will survive, they ask.
At present 18 IGW operators out of 29 are terminating VoIP calls. Rest of the operators are bound to close their operation. Even many of them are doing illegal business to stay in the market, they added.Â Â Â Â
Chief Executive Officer (CEO) of RanksTel, AKM Shamsudddin said the maximum VSP operators have no minimum knowledge about VoIP business. Therefore, it would be tough job for them to survive in the competition.
He mentioned that at present one IGW operator is incorporating 45 VSP operators for VoIP call termination.
However, he admitted that the incorporation of VSP operators by the IGW operators is not taking place, in most cases, according to the BTRC's rule.Â Instead, they rent out the licence on monthly basis, sources said.