Welcome entry of new fixed-line telephone services

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THE entry of some new private sector entities into the market for offering fixed-line telephone service in Dhaka and adjoining cities will, as we hope, lead to more competitive operation in the country's telecom sector. We welcome the government decision to facilitate this entry. The Bangladesh Telecommunication Regulatory Commission (BTRC) deserves appreciation for processing the cases of four companies for providing fixed-phone services or PSTN for Dhaka zone, an important area in terms of revenue generation in the sector. The regulator issued in 2004 nationwide PSTN licenses for operations outside the areas under Dhaka zone where the 'WorldTel' had got in August 2001 the controversial award to operate its service. But the 'WorldTel' was later enmeshed in disputes over ownership relating to its operations in Bangladesh. The company also blocked BTRC's move to allow the entry of other private entities into operations in Dhaka zone that is considered to be the most lucrative segment of the telecoms market in the country. The BTRC won the legal battle against 'non-functional' WorldTel in late 2006. This removed the barrier to new entities' entry into Dhaka zone. The BTRC has, thus, done a good job in clearing the cases of four companies for their market entry.
Now that the ground rules have been spelt-out for the companies to begin their operations upon full payment of licence fees, we will expect that there will be a new phase of competition in the market. This competition should lead to improved operational efficiency in basic telecom services, to the greater satisfaction of the customers. The four operators which have been issued the licence for the purpose will, according to reports in the media, also run internet services, besides providing basic telephony services. But no operator will, according to the same reports, be allowed to bundle the internet services and consumers will have the liberty to pick their provider to surf the web. This is welcome as it does leave the choice wide open for the customers. The BRTC has done it well.
However, it should make it clear at the earliest whether the fixed phone operators would be allowed to offer 'limited mobility' for Dhaka zone. Reportedly, the regulator has not yet clarified its position on this issue.
Rafiq Ahmed
Wari, Dhaka