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Download PDF Dhaka is looking to cut bilateral telecom tariffs by 25 to 30 percent with Saarc countries, despite existing mechanisms allowing for tariffs to be cut as high as 50 percent.
The proposal for bilateral telecom tariff cuts is a departure from Dhaka’s earlier push to lower telecom costs on a regional basis through the Saarc secretariat.
Chief Adviser Fakhruddin Ahmed had earlier proposed reduction of regional telecom tariff rates to improve ‘connectivity’ and better facilitate trade across borders. The proposal made at the inaugural session of the 14th Saarc summit in New Delhi in April this year was welcomed by the seven other member states, diplomatic sources noted.
But after examining the proposal closely, Dhaka has concluded that an all-in-one cut in regional rates is not tenable at this stage due to an uneven negotiating position of Bangladesh’s state-run telecom company and private carriers in other Saarc countries, according to government sources.
Foreign ministry and post and telecommunications ministry sources said an internal report has cited operational differences exist as the state-owned Bangladesh Telegraph and Telephone Board (BTTB) operates as international call carrier, as opposed to private carriers in other Saarc countries.
The government however feels the chief adviser’s proposal can still be realised by reducing telecom tariffs among Saarc countries by 25 to 30 percent, to be determined on a country-to-country basis.
But BTTB sources told The Daily Star that under the package switching dial system (using the number 012), it is possible to cut down rates to Tk 7 per minute from Tk 24 if all Saarc countries agree.
Diplomatic sources pointed out that all other countries had already agreed to look into cutting telephony tariffs in the region, with India offering Bangladesh its vast and sophisticated networks if Dhaka lays out a fibre optic network to Kolkata from the nearest border point.
Sources in the post and telecommunications ministry say the regional telecom infrastructure is adequate for pushing greater tele-connectivity as it meets the criteria set by the International Telecommunication Union.
A BTTB official said it will not resist reduction of call tariff with Saarc countries. “Per minute cost is based on payments made in international exchanges and also to telephone companies at the receiving end. If the Saarc governments agree, and internal rates are cut, we see no problem in cutting tariff.”
Currently, the BTTB has direct circuits with India, Pakistan, Sri Lanka and Nepal, that allow calls through bilateral agreements with four Indian private carriers — VSNL, BSNL, Reliance, and Bharti — and one private carrier each from Pakistan, Sri Lanka and Nepal.
There are no direct circuits to make telephone calls to Afghanistan, the Maldives and Bhutan, which are directed through a transit of carriers operating in other countries.
Except for Afghanistan, per minute rate of call to other Saarc countries –India, Pakistan, Sri Lanka, Nepal, Bhutan and the Maldives– is Tk 18 per minute during peak hours and Tk 15 during off-peak hours.
Presently, rates of telephone call to Saarc countries are much higher than those with 55 other countries.
For Afghanistan, the rate is as high as Tk 24 and Tk 18 per minute during peak and off-peak hours.
BTTB offers a package switching dial system (using 012) to 55 countries with per-minute phone call rate of Tk 7 on land phone. This facility is not available for the Saarc countries.
“We could have a similar deal with the Saarc countries. If the parties concerned agree on the facility and the rate of package switching, it is possible to slash rates of call to Saarc countries down to Tk 7 per minute,” said the BTTB official.
The package switching system highly compresses voice data, compared to conventional international voice transfers, and thus compromises the quality of phone conversation.
The BTTB official mentioned that telecommunication link with the Saarc countries was not as good as with most other countries. “For instance, the link with Afghanistan goes through London telephone exchange. That is why call charge is very high,” he pointed out.
September 26th, 2007 at 2:46 am
[...] Dhaka may go for 30pc bilateral tariff-cut telephone calls to Afghanistan, the Maldives and Bhutan, which are directed through a transit… countries India, Pakistan, Sri Lanka, Nepal, Bhutan and the Maldives is Tk 18 per minute during peak [...]
November 11th, 2007 at 11:27 pm
[...] unknown wrote an interesting post today onHere’s a quick excerptDhaka is looking to cut bilateral telecom tariffs by 25 to 30 percent with Saarc countries, despite existing mechanisms allowing for tariffs to be cut as high as 50 percent. The proposal for bilateral telecom tariff cuts is a departure … [...]