Beginning from January, the Rapid Action Battalion (Rab) has busted several dozen illegal VoIP operations and some of these surprisingly lead directly or indirectly to GrameenPhone (GP), Aktel and Banglalink. Further investigations are going on against other phone companies.

The government has already filed cases against the GP, Aktel and Banglalink for illegal VoIP operation.

These operations have deprived the national exchequer of an estimated annual overseas call revenue and tax amounting to over Tk 6,000 crore. Sources in mobile phone companies however said not that payment of all this money was evaded as they paid taxes for all the calls.

Sources in the companies also blame Bangladesh Telecom Regulatory Commission (BTRC) for its deliberate delay in issuing VoIP licences and Bangladesh Telegraph and Telephone Board (BTTB) for not installing adequate International Trunk Exchange (ITX) to handle growing foreign calls over the years.

They point out that while phone companies were indeed involved in the illegal operation, the fact is there had been huge unmet overseas call demand that needed to be addressed on the one hand, and on the other, the authorities' suspicious dilly-dallying with VoIP licensing or ITX facilities pushed the companies to the illegal business.

According to Rab sources, the case against the GP was filed on February 12 after the authorities had busted an indoor base station of the GP and special SIM cards at Moghbazar in the capital. The GP authorities have denied responsibility for running any illegal VoIP through this system but the Rab has filed a case saying that evidence of GP's involvement in this operation is overwhelming.

A Rab team last month met Banglalink authorities and showed them the evidence it gathered on the company's illegal VoIP operation. Banglalink authorities admitted that illegal VoIP operators used their equipment for such operations in the past but stopped it in January. They claimed that the company never directly ran any VoIP operation. The Rab filed a case soon afterwards.

Aktel's massive illegal VoIP operation was busted late last month in a Rab raid at its office in Gulshan. The Rab recovered huge equipment along with financial records which indicate that Aktel was earning between Tk 100 crore and Tk 180 crore a year from this operation. A case was filed against Aktel.

PENALTIES
A Rab source said investigators were now filing a report along with a set of suggestions on what the government should do about the mobile phone companies involved in the illegal operation.

An official of the telecoms ministry said, "The government should at first calculate how much tax has been evaded and how much the BTTB was deprived of its revenue from illegal VoIP operations. Mobile phone companies would accordingly pay these money to the national exchequer."

He added, "Then the phone companies should be penalised in some ways for being involved in illegal activities... They may be additionally warned of cancellation of licences if they are found engaged in illegal activities in future."

Sources in phone companies pointed out that the present situation could have been easily avoided had the authorities acted in the interest of the people. They say it is important that the government do whatever benefits phone subscribers the most.

HOW IT GREW
Insiders said the country's first illegal VoIP operation was introduced in 1996 by film actor Helal Khan, whose massive establishment was busted in late January. A section of unscrupulous BTTB staffs helped him in this illegal business.

In 1998, a mobile phone company, having strong political clout, started VoIP operation in full swing and concentrated fully on this operation till recent times.

Banglalink's package aimed at VoIP operation was introduced in late 2004. Sources said the company used to rent out E1 switches and set Base-station Transceiver (BTS) to help operators run VoIP.

Sources however could not say exactly when the GP's packages were being used for VoIP operation. But they claim that the GP had run its own operation and also rented VoIP related equipment according to its convenience. The GP authorities however denied this allegation.

Aktel started such operation in October 2005 as it saw that "all mobile companies were involved in it," said one source, adding the company ran its own operation.

Initial illegal VoIP set-ups were made in connivance with a section of unscrupulous BTTB employees and officials. "They used to provide the operators with BTTB's E1 circuits for call termination. Many such BTTB E1 circuits in the capital's Gulshan area are still in operation," the source said.

"BTTB's unscrupulous staffs rented out huge E1 circuits under Gazipur exchange in 2003. There are many set-ups there," he pointed out.

Rab investigators also admitted this.

Since illegal VoIP operation involved thousands of crores of taka, bribery and illegal influence on officials and policymakers were almost an open secret.

"Bribery ranged from cash to foreign trips or even Malaysian second home immigration schemes, and illegal VoIP operators offered all this to officials and policymakers to delay VoIP licensing or facilitate their illegal operation," said an insider.

"There are about 1,50,000 people involved in illegal VoIP operation outside mobile phone companies. About 5,000 of them made huge money which remains black ... for instance, I know a 35-year old man who has more than Tk 30 crore in his accounts."

Another source pointed out that though money laundering is part of this illegal business, Bangladesh did not lose anything in this business as incoming overseas calls dominate the situation. "About 90 percent of monetary transactions were made in favour of Bangladesh for the incoming calls."

This money came into Bangladesh mostly through unofficial channels. The operators also used legal means to bring in a part of the money. "About 80 percent of the foreign exchange earned through software export is simply VoIP earning," he added.