The number of private land phone users more than doubled in 2007, while state owned BTTB saw its number of subscribers drop, being unable to compete with the better service and cheaper connection of its private rivals.

According to telecom regulator statistics, the country's total PSTN (Public Switched Telephone Network) subscribers reached 11.86 lakh at the end of December 2007.

Of this number, the12 private PSTN operators accounted for 3.15lakh customers by the end of December 2007 - up 122 percent from the same date a year earlier. In contrast, BTTB actually lost subscribers down from 8.77 lakh to 8.72 lakh during the same period.

While mobile subscriptions continue to soar, some customers have been reluctant to give up the idea of a fixed home or business phone. The private PTSN networks offer many of the services of the mobile operators such as text messaging, caller identification and internet services. At the same time they claim to have better voice quality.

So far BTTB has been unable to capitalise on this market as it is burdened by a reputation for bureaucracy, delays and hidden charges.

Among the private PSTN operators RanksTel is the largest with 1.13 lakh customers by the end of 2007, up 148 percent in the year. RanksTel started commercial operation in April 2005 and invested around Tk 300 crore to expand its services.

“From the beginning, we have followed a strategy of bringing the telephony services to the customers' door,” said Masrur Nawaz Waiz, head of operation and coordination for Rankstel.

“It is very easy to have a telephone within an hour if anyone wants it now, this is a real contrast with the past when it was so tough to get phone. This change helps us to attract customers,” Waiz said.

“In the case of BTTB, its bad reputation for not providing services in time to the customers is the main reason for them loosing customers,” said a high official of Telecom Ministry, adding that BTTB will lose more customers in the coming years even after restructuring.

The private PSTN operators providing connection with wireless set ranging from Tk 2500 to Tk 3500. On the other hand, BTTB's connection costs Tk 6000 in Dhaka and Tk 4000 outside.

All the private PSTN operators had growth in the year 2007, except Chittagong based Westec Ltd that became embroiled in the VoIP call termination scandal.

Dhaka Telephone Company Ltd, National Telecom Ltd, RanksTel, Square Informatrix Ltd and Tele Barta Ltd are operating at national level, while others are restricted to certain parts of the country.