BTCL to bank on 4G for survival

The state-run telecom operator BTCL is shifting its focus from landlines to wireless data service for survival, officials have said.

To this effect, the company has applied to the telecom regulator seeking allocation of spectrum before setting up a network for long-term evolution (LTE), which is known as fourth generation (4G) technology and very efficient for wireless data service.

"Our proposal for setting up of the LTE has already been approved by the Executive Committee of the National Economic Council (ECNEC) recently. The proposal has been sent to the ministry for issuance of GO (government order)," Managing Director of BTCL Mahfuz Uddin Ahmed told the FE Tuesday.

"Though main objective of the state-owned entity is not only doing business, we are hopeful that once the network is set up, the BTCL will be able to overcome its present situation," he added.

He also said the Bangladesh Telecommunications Company Ltd (BTCL) in the meantime signed a deal with Korea's Economic Development Cooperation Fund for the financing of Tk 6.12 billion for the project out of the total project cost of Tk 9.56 billion.

However, according to sources at the BTCL, the company has the capacity to provide around 50,000 broadband lines but it could connect only 14,000 subscribers so far mainly due to its poor maintenance.

The operator is also losing its fixed-phone customers too; it had 935,760 subscribers in June 2012. The figure came down to 903,299 in July-June period of last financial year. It has the capacity to provide 1.42 million connections.

Telecom Secretary Abubakar Siddique said the LTE network would be developed in the capital and 488 upazilas and even also in areas where other operators were not providing services.

According to him, the project has been designed to be completed by the year 2017.

The BTCL is the oldest telecom operator in the country with more than 50 years of experience in various services including landline, internet, backhaul and international gateway or call handling.

But after the emergence of private telecom operators providing mobile, WiMax and international gateway or transmission services, customers have been losing interest in the BTCL. As a result, the revenue of the company fell drastically.

The company incurred a loss of more than Tk 5 billion in the fiscal 2012-2013.

A BTCL official preferring anonymity said the company would not survive with income from landlines or international gateway business only. "The data business through the LTE could be a solution," he added.

The BTCL will be the fourth LTE service provider, while the other licensees are Banglalion, Qubee and Bangladesh Internet Exchange Ltd.