A Comparative study on sBangladesh Telecommunication

Regulatory Commission (BTRC) tools and techniques.

The Bangladesh Telecommunication Regulatory Commission (BTRC) is an

independent commission founded under the Bangladesh Telecommunication Act,
2001 (Act # 18 of 2001). The BTRC is responsible for regulating all matters related
to telecommunications (wire, cellular, satellite and cable) of Bangladesh.

The BTRC started operating from 31 January 2002 with a vision of facilitating
affordable telecommunication services and increasing the teledensity to at least
10 telephones per 100 inhabitants by 2010.

The telecom sector in Bangladesh is rapidly emerging. Bangladesh

Telecommunication Regulatory Commission (BTRC) is the regulatory authority
for this sector, overseeing licensing, policy, etc.

The calling code of Bangladesh is +880. There are also several SubCodes.
Structure

Bangladesh Telecom Network Topology

As defined in the National Telecommunications Policy 1998 and International

Long Distance Telecommunications Services (ILDTS) Policy 2007, all mobile
operators is to interconnect through Interconnection Exchange (ICX) and all
international calls to be handled by International Gateway (IGW) which is to be
connected to the mobile and fixed operators through the ICXs.

The Interconnection Exchange (ICX) will receive all calls from the mobile and
fixed operators whenever the call is made to other network and will pass it to the
destination network if the call is local, and will pass to the IGWs if the call is
international. ICX will also deliver calls received from IGWs where the call is
destined.

Below illustrate the structure of interconnection between different interfaces.

BTCL was the catalyst in making mobile telephony an affordable option for
consumers in Bangladesh. The initial success of Banglalink was based on a
simple mission: Bringing mobile telephony to the masses, which was the
cornerstone of BTCL s strategy.

Fueled with the strong core values of Customer-obsessed, Entrepreneurial,

Innovative, Collaborative & Truthful, Banglalink is now working relentlessly to
bring digital world to each and every customer to build a true digital Bangladesh,
moving away from the traditional mobile operator to a tech company.

With customer experience being BTCLs core focus, digitalization has become a
necessity to update the way customers engage, communicate, operate (Internally
& Externally) and offer services from traditional way of business to Digital/Online.
BTCLs aims to enable its customers to get the best out of the digital future and
create a true digital ecosystem through providing products that suits the
demands of customers.

T he growth of BTCL over the years have been fueled with innovative products
and services targeting different market segments, aggressive improvement of
network quality and dedicated customer care, creating an extensive distribution
reach across the country and establishing a strong brand that emotionally
connected customers with other telecom operator.

Prior to divestiture, the Bell System was the largest commercial company in the
United States even though it could not be found on the Fortune 500 listing of the
largest companies. It had the biggest fleet of vehicles, the most employees, and
the greatest income. Every retiree with any sense held the safe and dependable
Bell stock. In 1982, Western Electric Co., the Bell System manufacturing arm, was
number seven on the Fortune 500. However, if one checked the Fortune 100
Utilities, the Bell System was up on the top. Transferring this information to the
Fortune 500, again put Bell System as the leader on the list. We know
telecommunication is big business; but what is it? Websters (Ref. 1) calls it
communications at a distance. The IEEE dictionary (Ref. 2) defines
telecommunications as the transmission of signals over long distance, such as
by telegraph, radio or television. Another term we often hear is electrical
communication.

This is a descriptive term, but of somewhat broader scope. Some take the view
that telecommunication deals only with voice telephony, and the typical provider
of this service is the local telephone company. We hold with a wider
interpretation. Telecommunication encompasses the electrical communication at
a distance of voice, data, and image information (e.g., TV and facsimile).

These media, therefore, will be major topics of this book. The word media
(medium, singular) also is used to describe what is transporting
telecommunication signals. This is termed transmission media. There are four
basic types of medium: (1) wire-pair, (2) coaxial cable, (3) fiber optics, and (4)
radio.

TELECOMMUNICATION TOUCH of BTCL

In industrialized nations, the telephone is accepted as a way of life. The telephone

is connected to the public switched telecommunications network (PSTN) for
local, national and international voice communications. These same telephone
connections may also carry data and image information (e.g., television).

The personal computer (PC) is beginning to take on a similar role as the

telephone, that of being ubiquitous. Of course, as we know, the two are becoming
married. In most situations, the PC uses telephone connectivity to obtain internet
and e-mail services. Radio adjuncts to the telephone, typically cellular and PCS,
are beginning to offer similar services such as data communications (including
internet) and facsimile (fax), as well as voice. The popular press calls these
adjuncts wireless. Can we consider wireless in opposition to being wired? Count
the number of devices one has at home that carry out some kind of controlling or
alerting function.
They also carry out a personal communication service. Among these devices are
television remote controls, garage-door openers, VCR and remote radio and CD
player controllers, certain types of home security systems, pagers, and cordless
telephones. We even take cellular radios for granted. In some countries, a
potential subscriber has to wait months or years for a telephone. Cellular radio, in
many cases, provides a way around the problem, where equivalent telephone
service can be established in an hourjust enough time to buy a cellular radio in
the local store and sign a contract for service. The PSTN has ever-increasing data
communications traffic, where the network is used as a conduit for data. PSTN
circuits may be leased or used in a dial-up mode for data connections. Of course,
the Internet has given added stimulus to data circuit usage of the PSTN. The
PSTN sees facsimile as just another data circuit, usually in the dial-up mode.
Conference television traffic adds still another flavor to PSTN traffic and is also a
major growth segment. There is a growing trend for users to bypass the PSTN
partially or completely. The use of satellite links in certain situations is one
method for PSTN bypass. Another is to lease capacity from some other provider.
Other provider could be a power company with excess capacity on its microwave
or fiber optic system. There are other examples, such as a railroad with extensive
rights-of-way that are used by a fiber-optic network. Another possibility is to build
a private network using any one or a combination of fiber optics, line-of-sight-
microwave, and satellite communications. Some private networks take on the
appearance of a mini-PSTN.

INTRODUCTORY IN TELECOMMUNICATIONS of BTCL

An overall telecommunications network (i.e., the PSTN) consists of local

networks interconnected by a long-distance network. The concept is illustrated in
the BTCL this is the PSTN, which is open to public correspondence. It is usually
regulated by a government authority or may be a government monopoly, although
there is a notable trend toward privatization. In the Bangladesh the PSTN has
been a commercial enterprise since its inception.

End-users, as the term tells us, provide the inputs to the network and are
recipients of network outputs. The end-user employs what is called an I/O,
standing for input/ output (device). An I/O may be a PC, computer, telephone
instrument, cellular/ PCS telephone or combined device, facsimile, or conference
TV equipment. It may also be some type of machine that provides a stimulus to a
coder or receives stimulus from a decoder in, say, some sort of SCADA system.

Figure: BTRC PSTN consists of local networks interconnected by a long-distance

network.

End-users usually connect to nodes. We will call a node a point or junction in a

transmission system where lines and trunks meet. A node usually carries out a
switching function. In the case of the local area network (LAN), we are stretching
the definition. In this case a network interface unit is used, through which one or
more end-users may be connected. A connectivity connects an end-user to a
node, and from there possibly through other nodes to some final end-user
destination with which the initiating end-user wants to communicate.

When the call is completed, the telephones at each end are returned to their
cradles, breaking the circuit of each subscriber loop. This, of course, is
analogous to turning off a light; the current stops flowing. Phase 3 of the
telephone call begins. It terminates the call, and the connecting circuit in the
switch is taken down and freed-up for another user. Both subscriber loops are
now idle. If a third user tries to call either subscriber during stages 2 and 3, she/
he is returned a busy-back by the exchange (serving switch). This is the familiar
busy signal, a tone with a particular cadence. The return of the busy-back is a
form of signaling called call-progress signaling.

A transmission path between BTRC exchanges or central offices. The word

transmission in the IEEE definition refers to one (or several) transmission media.
The medium might be wire-pair cable, fiber optic cable, microwave radio and,
stretching the imagination, satellite communications.

In the conventional telephone plant, coaxial cable has fallen out of favor as a
transmission medium for this application. Of course, in the long-distance plant,
satellite communication is fairly widely employed, particularly for international
service. Our preceding reference was for local service.
BTCL Subscriber loops connect telephone subscribers to their local serving
exchange; trunks interconnect exchanges (switches).

Telephone Numbering and Routing Every subscriber in the world is identified by a

number, which is geographically tied to a physical location.5 This is the
telephone number. The telephone number, as we used it here, is seven digits
long. For example: 234 ` 5678 The last four digits identify the subscriber line; the
first three digits (i.e., 234) identify the serving switch (or exchange). For a
moment, lets consider theoretical numbering capacity. The subscriber number,
those last four digits, has a theoretical numbering capacity of 10,000.

The first telephone number issued could be 0000, the second number, if it were
assigned in sequence, would be 0001, the third, 0002, and so on. At the point
where the numbers ran out, the last number issued would be 9999. The first three
digits of the preceding example contain the exchange code (or central office
code). These three digits identify the exchange or switch.

The theoretical maximum capacity is 1000. If again we assign numbers in

sequence, the first exchange would have 001, the next 002, then 003, and finally
999. However, particularly in the case of the exchange code, there are blocked
numbers. Numbers starting with 0 may not be desirable in North America because
0 is used to dial the operator. The numbering system for North America (United
States, Canada, and Caribbean islands) is governed by the NANP or North
American Numbering Plan. It states that central office codes (exchange codes)
are in the form NXX where N can be any number from 2 through 9 and X can be
any number from 0 through 9. Numbers starting with 0 or 1 are blocked numbers.

This cuts the total exchange code capacity to 800 numbers. Inside these 800
numbers there are five blocked numbers such as 555 for directory assistance and
958/ 959 for local plant test. When long-distance service becomes involved, we
must turn to using still an additional three digits.

Colloquially we call these area codes. In the official North American terminology
used in the NANP is NPA for numbering plan area, and we call these area codes
NPA codes. We try to assure that both exchange codes and NPA codes do not
cross political/ administrative boundaries. What is meant here are state, city, and
county boundaries.

We have seen exceptions to the county/ city rule, but not to the state. For
example, the exchange code 443 (in the 508 area code, middle Massachusetts) is
exclusively for the use of the town of Sudbury, Massachusetts. Bordering towns,
such as Framingham, will not use that number. Of course, that exchange code
number is meant for Sudburys singular central office (local serving switch).

Figure: Example BTRC connectivity subscriber-to-subscriber through two adjacent exchanges.

One-Way and Two-Way Circuits:

BTRC trunks can be configured for either one-way or two-way operation.8 A third
option is a hybrid, where one-way circuits predominate and a number of two-way
circuits are provided for overflow situations.

BTRC shows two-way trunk operation. In this case any trunk can be selected for
operation in either direction. The insightful reader will observe that there is some
fair probability that the same trunk can be selected from either side of the circuit.

This is called double seizure. It is highly undesirable. One way to reduce this
probability is to use normal trunk numbering (from top down) on one side of the
circuit (at exchange A in the figure) and to reverse trunk numbering (from the
bottom up) at the opposite side of the circuit (exchange B). Figure 1.8b shows
one-way trunk operation.

The upper trunk group is assigned for the direction from A to B and the lower
trunk group for the opposite direction, from exchange B to exchange A. Here
there is no possibility of double seizure.

Illustrates a typical hybrid arrangement. The upper trunk group carries traffic
from exchange A to exchange B exclusively.

The lowest trunk group carries traf- fic in the opposite direction. The small,
middle trunk group contains two-way circuits. Switches are programmed to select
from the one-way circuits first, until all these circuits become busy, then they may
assign from the two-way circuit pool.
Figure: BTRC Two-way and one-way circuits: two-way operation.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has initiated

steps to buy radiation measurement tools, including vehicles, to measure the
risks to public health caused by radiation emitted by mobile phone towers.

BTRC chairman Dr Shahjahan Mahmood told The Independent that the telecom
regulator has decided to form a technical subcommittee in this respect.
Representatives of the Atomic Energy Commission and the Bangabandhu Sheikh
Mujib Medical Universitys technical subcommittee will be included in the BTRC
technical subcommittee. The commissions engineering and operations (E&O)
department is supervising all the activities.

According to the minutes of the 204th meeting of the commission, tools used in
the telecommunications sector, especially in mobile phone towers, and
instruments used in high- frequency work, can generate electromagnetic fields. It
is imperative to investigate whether these frequencies adversely affect humans
and the environment.

In 2012, Human Rights and Peace for Bangladesh had filed a writ petition before
the HC with respect to the radiation levels of mobile phone towers. Five years
after the petition was filed, the HC bench issued the directive during a hearing on
the writ petition.

On March 28 this year, the HC directed the government to obtain expert opinion
from three international organisationsthe World Health Organisation (WHO),
International Atomic Energy Agency (IAEA) and International Commission on
Non-Ionising Radiation Protection (ICNIRP)regarding the public health risk
caused by radiation from mobile phone towers.

In such a context, the BTRC has decided to buy radiation measurement tools.
With two machines, it is possible to monitor a couple of operator towers for the
time being.

According to the minutes of the meeting, the commission will be able to measure
a single tower of a single mobile phone operator by using each radiation
measurement tool at a time. It will take at least one-and-a-half to two hours to
measure a single tower.
The commission has decided to buy two radiation measurement tools, given the
number of towers of mobile operators.

The first commercial cellular radio system:

BTRC made commercial cellular radio operational for the first time by employing
frequency reuse in a small zone system. BTRC could make telephone calls while
moving at more than 160 kilometers per hour. Six channels in the 450 MHz band
were used again and again in nine zones along the 225 mile route.

3G System Implementation:

Country's six cellular phone operators - Grameenphone, Banglalink, Robi, Airtel,

Citycell and state-owned Teletalk -- on August 12 applied for participating in the
3G bidding scheduled for September 8.

The panel of experts of the regulator has already completed the evaluation of the
applications, the officials added.

"All the operators are getting the opportunity to participate in country's first ever
spectrum auction for third generation or 3G cellular phone service, as they
(operators) have applied complying with the rules," said an official of legal and
licensing division of Bangladesh Telecommunication Regulatory Commission
(BTRC).

"We will announce the operators' names officially tomorrow so they (operators)
could deposit bid earnest money on August 26," he added.

According to the final 3G/4G/LTE licensing guideline, each eligible operator has to
deposit US$ 20 million as bid earnest money to participate in the bidding.

Taking to BSS, BTRC officials and industry people said they are apprehending
that country's oldest cellular phone operator Citycell may face trouble in the
bidding due to financial crisis, as the operator is yet to make the payment of last
installment for 2G license renewal fee.
The Commission will issue five "Cellular Mobile Phone Services (3G/4G/LTE)
Operator License" including assignment of Spectrum through open auction.
Among the five, one license had been kept for new entrant, but no new operator
applied for the licence.

Besides, another four licenses would be issued among the existing six operators,
of which state-own Teletalk would be given the license without its participation in
the auction. So, five private operators will run for rest three licenses. Teletalk is
now offering 3G service on trial basis.

Officials said, as any new operator didn't apply in new entrant category, the
license would be awarded to the existing operators, which means one operator
among the six would not get change for 3G operation.

Earlier, the regulator has deferred the auction date for the 3G for third time. The
3G auction was originally set for June 24, but it was refixed on July 31 before
being rescheduled for September 2.

Other deadlines for the auction procedure have also been rescheduled. As per the
new time, the list of qualified applicants for the auction would be published on
August 18 while the consultation on auction procedure on August 19, submission
of Bid Earnest Money on August 26, the letter of acceptance or rejection on
September 1 and notification of winning applicants on September 8.

On Feb 12, the Ministry of Post and Telecommunication finalised the licensing
policy for the 3G services by fixing the value of spectrum US$ 20 million per MHz.

4G System Implementation:

Bangladesh Telecommunication Regulatory Commission (BTRC) will formulate

the licensing guidelines next month in order to allocate spectrum to the mobile
operators for introducing 4G services.

Bangladesh will use the 700 megahertz spectrum for LTE technology to enable
the operators to offer 4G services.

We will complete the 4G licensing guideline that will help determine the
eligibility for getting 4G licences, BTRC chairman Dr Shahjahan Mahmood told
daily sun.

He said the regulator is discussing with the telecom operators in this regard.
BTRC is planning to invite bids for the 4G spectrum auction by June, another
official informed.

The regulator is likely to set the spectrum neutrality charges between $5 million
and $7 million.

However, the countrys largest telecom operator Grameenphone is reluctant to

participate in a 4G auction that comes without spectrum neutrality.
Besides, the market is not ready yet for 4G/LTE, said the telecom operator.

We are not participating the 4G/LTE auction if the government introduces the 700
megahertz spectrum without technology neutrality, said Mahmud Hossain, chief
corporate affairs officer at Grameenphone.

Only four percent handsets are 4G-enabled in the local market. Besides, the
quality of services would be hampered if 4G/LTE is launched without technology
neutrality, he said.

Mahmud Hossain said Grameenphone will participate in the 4G auction if

technology neutrality and the 4G auction come together.

Then GP would be able to introduce limited 4G services, he said.

Most importantly, we would like to see the technology neutrality is introduced to

help ensure the quality of services and enhanced customer experience, Mahmud
Hossain said, adding that the benefits of technology neutrality are manifolds-
more efficient use of spectrum, better quality, speed and lower prices.

Mobile internet services do not levy any additional charge for introducing
technology neutrality. Most EU governments, USA, Canada, Thailand, Pakistan,
Malaysia and many other markets are experiencing tech neutrality.
Most of the frequencies 900 MHz and 1800 MHz held by mobile operators are
currently limited to be used for 2G.

Only 2100 MHz bands has been made technology neutral and is currently being
used for 3G services.

Asif Ahmed, head of corporate communications of Banglalink, said, 4G is an

integral part of our digital transformation promises.

The telecom regulator recently rejected a proposal from some mobile phone
operators to allocate the 4G spectrum into the existing 3G network without any
auction.
Some operators have sought 4G spectrum without tender. But its impossible,
BTRC Chairman Dr Shahjahan Mahmood told daily sun.

A top-level delegation of VimpelCom, the majority shareholder of Banglalink,

raised the demand during a meeting with the high officials of Bangladesh
Telecommunication Regulatory Commission (BTRC) on February 7. VimpelCom
CEO Jean-Yves Charlier led the delegation.

At a meeting with the government counterparts on January 19, Grameenphone

and other telecom operators also sought to allow 4G into the existing 900mhz
(2G) and 1800mhz (3G) bands.

At a regular meeting in the secretariat, GP Chief Executive Officer Petter-B.

Furberg said, Its gradually becoming complex to construct BTS/Node-B for
network upgrading. So, the use of 4G technology into 2G/3G would be helpful for
GP.

Then Robi CEO Mahtab Uddin Ahmed requested to declare the spectrum release
roadmap for future investment.

The BTRC chairman said they would ensure technology neutrality though the 4G
spectrum auction, for which the telecom regulator has already started the
preparatory work.

According to the 3G spectrum policy, the mobile operators can integrate 4G

technologies into the 3G spectrum, but they have to pay for it, another official
said.

The government will be deprived of huge revenue if it allows converting 3G

spectrum into 4G without payment and licenses transfer fees.

We welcome 4G with spectrum neutrality. However, for that to happen, we have

requested the regulator to first ensure that the spectrum is made available.

Another request we have made to the regulator is to enable us to sell our towers
which will help us further invest for spectrum and network expansion in
Bangladesh.

BTRC has initiated the process to launch the 4G service in the country by this
year to ensure the fastest data service for mobile phone subscribers.

To this end, Bangladesh Telecommunication Regulatory Commission (BTRC) is

likely to provide licences for service to the country's mobile phone operators
within one week.

"The mobile phone companies will be provided with the 4G licences in a week.
Work is on to finalise a policy which will fix fees for the licences," BTRC
Chairman Dr Shahjahan Mahmood told UNB.

He said the mobile phone operators will buy spectrum after receiving the licences
for the service.
"The 4G service will be introduced by this year and we'll reach service to villages
as per the directives of the Prime Minister."

The telecom regulator has 15 Megahertz of unsold spectrum in the 2100 band and
10.6 Megahertz in the 1800 band and some spectrum in 900 band.

The BTRC chief said the government had taken an initiative to launch the 4G
service in the country by 2016 after neighbouring India and Nepal embraced the
technology. "But, it hadn't been possible to materialise the move."

Now, the initiative came after Prime Minister's ICT adviser Sajeeb Wazed Joy at a
meeting with State Minister for Posts and Communications Tarana Halim and the
BTRC Chairman directed for introducing the 4G service in the country as soon as
possible, said sources at the Posts and Telecommunications Division.

He asked the BTRC to allow technological neutrality to enhance the overall

quality of services.
Following the directives, the division asked all mobile operators to take
preparations for launching the 4G service. It will disclose details about the 4G
service introduction soon, the sources said.

State Minister for Post and Telecommunications Tarana Halim told UNB that her
division has taken the initiative to launch the 4G service in the country soon and
asked the BTRC to issue licences to the mobile operators by March.

People are interested to avail themselves of the 4G service. We don't want to lag
behind in the field of technology. So, we've initiated the process to launch the
service. We'll be able to launch the 4G service by this year (2017) on completion
of all necessary procedures.

BTRC sources said the number of mobile subscribers in the country were 12.82
crore till January last. Of them, 6.63 crore are mobile internet users with 3.29
crore having the 3G service.

The BTRC said the 3G network is available with five mobile phone operators--
Grameenphone, Robi, Banglalink, Airtel and Teletalk.

Ariful Haque, a resident of the district town of Kishoreganj who uses

Grameenphone data pack, told UNB that it is hard to enjoy the 3G service all the
time as sometimes 2G network is available instead of 3G.

Ruhul Amin, who lives in the capital, echoed Ariful saying his device gets 2G
coverage instead of 3G network most of the time.

Grameenphone is currently using 32 Megahertz spectrum-- 7.8 Megahertz in the

900 band, 14.632 Megahertz in the 1800 band and 10.32 Megahertz in the 2100
band while Banglalink 20 Megahertz - 5 Megahertz in the 900 band, 10 Megahertz
in the 1800 band and 5 Megahertz in the 2100 band and Teletalk has 25.20
Megahertz - 5.2 Megahertz in the 900 band, 10 Megahertz in the 1800 band and 10
Megahertz in the 2100 band.
Mobile phone companies use 2100 band for 3G service and 900 and 1800 bands
for the 2G service.

The 4G service is supposed to be provided using spectrum of the 700 band.

However, it will be possible to provide any service with any of the bands if the
technological neutrality is allowed.
INTERNET Communication Development:

The executive committee of the government's Digital Bangladesh Taskforce has

asked the telecom regulator to run a separate cost model analysis to formulate
the data pricing guideline within a month.

The committee took the decision in a recent meeting presided over by Kamal
Abdul Naser Chowdhury, principal secretary to the Prime Minister's Office.

The Digital Bangladesh Taskforce, which consists of senior ministers and

different top experts from the sector, is the highest policymaking body on
digitisation headed by the prime minister.

Its executive committee assists the taskforce and supervises implementation of

the taskforce's decisions.

We have been working on it for the last few months and we hope to complete it
soon, said Shahjahan Mahmood, chairman of Bangladesh Telecommunication
Regulatory Commission, who attended the meeting.

The regulator plans to fix the upper and lower price limit for mobile operators'
data packages, added Mahmood, who is also a member of the committee.

For regular voice calls, there is a Tk 2 ceiling and a floor price of Tk 0.25 for each
minute, which the regulator fixed in 2008 after a cost modelling analysis
supported by International Telecommunication Union. The ITU gave the service
for free for Bangladesh's least developed.
country status. After a few years, the BTRC set the ceiling for short message
services (SMS) at Tk 0.50 for each local SMS and Tk 2 for international SMS.
There is no lower price limit in this segment, said an official of the regulator.

However, value added services in SMS and voice could be priced differently, with
prior approval from the regulator.

A senior consultant of the ITU will soon join the BTRC to do the cost modelling
analysis, he added.

At present, data service prices are set by the operators, with the regulator having
no benchmark to check the rationality of the pricing. That's why different
operators are charging as they wish.

The government reduced the internet bandwidth price to as low as Tk 625 a

megabyte last year, which was Tk 72,000 eight years back.

However, there are allegations that data prices did not fall in line with the
deduction in bandwidth prices.

We understand that bandwidth is one of the components of the total cost, but it
is a pricey one and there should be some impact at the end user level when we
reduce it. But the telecom companies seem

to disagree. So we decided to do a cost modelling for that, said Mahmood.

In the meantime, the regulator also organised its first public hearing in November
last year on mobile operators' service quality, where users also raised the issue
of both data and voice costs.

The regulator also plans to reset the ceiling and floor price for voice services.
Since the BTRC has a cost modelling method for the voice segment, they can
change some of the benchmarks and revise the charges from time to time as per
demand, said Mahmood.

The meeting also discussed reducing or withdrawing the VAT from internet use,
which the regulator will finalise after a meeting with the National Board of
Revenue, said a committee member.

Currently, there are 6.67 crore internet users in the country, and of the number, 94
percent are using internet through their mobile phones, according to the BTRC.
The Success of Communication by BTRC:

The telecom regulator is set to issue a pricing guideline for operators, especially
mobile carriers, for providing internet services.

The move comes as the price of internet is not declining at the user level despite
significant cuts in bandwidth prices.

At the inaugural public hearing held last week, mobile users complained about
the higher price of mobile data services. So, to get a clear picture and to set a
pricing benchmark we decided to do a cost modelling of data service of
operators, said Shahjahan Mahmood, chairman of Bangladesh
Telecommunication Regulatory Commission.

A team of the International Telecommunication Union is due to start the cost

modelling next month, he said.

Earlier in 2009, the BTRC had done a similar cost modelling in association with
the ITU for voice calls and set a tariff for the service. At present, the data service
prices are set by the operators, with the regulator having no benchmark to check
the rationality of the pricing. We understand that the bandwidth is only one of
the components of the total cost but it is a pricey one and there should be some
impact at the end user level when we reduce it. But the telecom companies seem
to disagree, so we decided to do a cost modelling for that.

The government reduced the internet bandwidth price to as low as Tk 625 a

megabyte last year, which was Tk 72,000 eight years back.

In its cost modelling for the voice segment, the BTRC has fixed Tk 2 per minute
as the upper limit and Tk 0.25 as the lower limit. For SMS, the BTRC has set the
ceiling of Tk 0.50. Operators can play between the prices. Mahmood said since
they have a cost modelling method for voice segment, they can change some of
the benchmarks and amend the charges from time to time as per demand.

Country's telecom regulator has opened 2.4 and 5.7 GHz band for providing
internet service through Wi-Fi technology across the country.

The regulator took the initiative to make available internet to the people at a
cheaper rate in a bid to accelerate digitalisation activities across the country.

It will allow an individual or an institution like mobile phone operators, private,

corporate, public and national entity for establishing the Wi-Fi band in a short
range at low power consumption to provide high speed digital wireless service,
according to the regulator.

However, the BTRC restricted the mobile phone operators to give the service in
Dhaka and Chittagong city corporation areas.

The Wi-Fi service providers using the band do not need to pay licence or
spectrum fees.

The Bangladesh Telecommunication Regulatory Commission (BTRC) finally

opened the 2.4 and 5.7 GHz band for the WiFi based internet service on Sunday
last. In 2012, the regulator had made a guideline in this regard.
BTRC sources said it is a licence exempted band. There is no charge for licence
and no exclusive allocation of spectrum for the utilisation of the band.

This initiative will also materialise the government's vision of "Digital Bangladesh
2021" and to provide a more liberal regulatory regime for users, manufacturers,
operators, regulators, importers and suppliers in Bangladesh under 'unlicensed'
band which is also called 'Wi-Fi' band.

Discussion of Operators regarding 4G technologies:

According to the BTRC data, Wi-Fi operators need to pay only a fee of Tk 500 and
application processing fee of Tk 5,000.

BTRC declares 83.5 MHz and 150 MHz bands as Wi-Fi band. A total of 233.5MHz
bandwidth has been stored for Wi-Fi services, according to the guideline.

It may be noted that access to the spectrum will be on share basis. No exclusive
spectrum will be allocated to specific operator.

According to a BTRC official who is an expert on spectrum, internet through Wi-Fi

technology will reduce cost sharply, even its using cost will be half than that of
3G mobile services ensuring high speed. He said Wi-Fi hotspot will be allowed up
to 200 metre range.

Chief Corporate Affairs Officer at Grameenphone Mahmud Hossain said it would

be the cost effective service.
He told the FE Sunday that "People will enjoy real wireless experience through
Wi-Fi technology in an efficient manner at cheaper rate due to the opening of the
band."

He said this initiative will reduce load of BTS creating opportunity for the
customers to get quality internet service.

Vice-President, ISP Association of Bangladesh Suman Ahmed Sabir welcomed

the decision of the BTRC and said this initiative will make internet available at a
reduced cost.

Small operators will be benefitted in the two cities-Dhaka and Chittagong in the
absence of the mobile phone operators' service.

The telecommunications sector in Bangladesh has been characterized By a very

low level of penetration, limited capability to meet the growing demand, low level
of investment and old outdated systems and technologies necessitating reactive
remedial measures. In order to develop a national sound telecommunication
infrastructure to support the economy and welfare of the country by providing
telecommunication facilities on demand, assuring satisfactory quality of service
and ensuring value to the customers , a sound National Telecommunication
Policy is essential. This is also imperative to ensure the cost based pricing2 of
the present as well as the future services to satisfy the need of specialized
groups in particular and the public in general .

With this in view, this new policy will ensure the orderly development of the
telecommunications sector through the provision of services in all the areas of
the country, to satisfy the unserviced demand 3 for telecommunications and to
provide equitable opportunity and competition amongst the service providers.