Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 847 Thu. October 12, 2006  
   
Front Page


BTRC in a hurry to grant VoIP licences
Powerful illegal operators to get licences in absence of common platform


After sitting idle for nearly three years on licensing internet telephony, Bangladesh Telecom Regulatory Commission (BTRC) is now hurrying award of Voice over Internet Protocol (VoIP) licences without ensuring first a common platform for VoIP operators.

The BTRC received 51 applications for VoIP licences on October 8. Applicants include 31 Internet Service Providers (ISPs), 14 Public Switched Telephone Networks (PSTNs) and six mobile phone companies.

But without a common platform, powerful illegal VoIP operators who are among these applicants will now easily get BTRC licences, and will not only eat up the market of Bangladesh Telegraph and Telephone Board (BTTB) but also deprive the government of international telecom revenue.

The BTTB's international telephony generates around Tk 400 crore revenue annually. This will drastically slide down to around Tk 150 crore, officials say.

"Moreover, without a common platform, nobody will know how much the VoIP operators are earning. It is ridiculous to expect that they will give genuine revenue reports to the government and pay taxes," said an industry insider.

"If the BTRC finds it okay to award VoIP licenses now without a common platform, why did it not award the licences three years ago as it had committed earlier? What made it so different for the BTRC to award the licenses now?" asked an official.

The BTTB in a letter to the telecoms ministry said it believes that the BTRC move is against the earlier decision of the government. The very purpose of legalising VoIP will now be at stake, the BTTB says.

It says that once the operators are allowed to execute internet telephony without a common platform, it will be almost impossible to bring them to such a platform afterwards.

In January 2004, the BTRC announced legalising VoIP and awarding of licenses within two months. Illegal VoIP operation is eating up several hundred crores of taka and is playing a leading role in money laundering since 2000. But the BTRC mysteriously remained silent.

Top illegal VoIP operators include young political top notches while an unscrupulous section of BTTB officials and a couple of mobile phone companies assist in this operation.

Now, as the tenure of the alliance government is due to expire this month, the BTRC invited applications for VoIP licenses on September 21 with the last date being October 8. Sources said a good number of applications have been filed with the BTRC, which plans to award the licenses as soon as possible. But a common platform through which international calls will be channelised is yet to be set up.

Meanwhile, vested interest groups using their political influence slowed down the BTTB's move to set up a common platform. The BTTB has floated tender twice and is now going for a third tender for this job.

As per the BTTB recommendation, the Prime Minister's Office (PMO) approved setting up of a common platform in May last year to ensure a controlled internet telephony. In two rounds of tender floating, the BTTB received good offers but each time vested interest groups forced it to pick up flawed bids.

The first tender was floated last year and the second earlier this year. In the second tender, the BTTB picked up a bid of Chinese company Huawei, represented by the youngest son of a very powerful minister.

Following a formal complaint from a bidder, the planning ministry in March categorically recommended blacklisting Huawei for corrupt practices to win the contract. Such blacklisting should be done as per "Regulation 15" of the Public Procurement Regulations (PPR), the ministry said.

Instead of taking decision as per the planning ministry recommendation, the telecoms ministry sat on it, and in August approved Huawei's $ 3.5 million bid to set up the platform in Dhaka, Chittagong, Sylhet and Bogra through which internet phone calls will be channelised.

But following reports on this in The Daily Star, the PMO cancelled the Huawei bid and directed the BTTB to re-tender the scheme. BTTB sources said preparations for re-tender is now at a final stage.