Mobile operators divided over inter-connection charges
Mobile phone operators stand divided over inter-connection charges, with two of them seeking absolute removal of the fees, and three others opposing it.
Airtel requested the telecom regulator to completely remove the inter-connection charges, and Citycell supported the proposal. However, Grameenphone, Banglalink and Robi want a decision on the matter after a market study.
The debate on inter-connection fees, which are charged to transfer calls between two operators, arose at a meeting of Bangladesh Telecommu-nication Regulatory Commission (BTRC) with the six mobile phone operators at the office of the regulator in Dhaka yesterday.
The BTRC asked the operators to come up with written proposals, not only on suitable inter-connection charges, but also on voice and data pricing.
"The commission asked the operators to submit their written proposals by August 31," said Md Sarwar Alam, BTRC spokesperson. "On the basis of their proposals, the commission will take a decision on the matter."
A cut in inter-connection charges may also reduce the overall price of voice calls, said industry insiders.
Presently, the inter-connection charge is Tk 0.22 a minute, of which Tk 0.04 goes to interconnection exchanges. The rates were set after a study by the World Bank in 2008.
After the study, the BTRC fixed the call rate at between Tk 0.25 and Tk 2 a minute, and inter-operator call rate at Tk 0.6 a minute.
At yesterday's meeting, Airtel argued that it is the number four operator in the country and hence, has to pay higher amounts to other leading operators, as the inter-connection charge is high.
Robi, however, proposed to increase the minimum price of voice calls to Tk 0.4 from Tk 0.25 a minute in case of intra-operator.
The top two operators said that they are operating with the lowest tariff in the world and any further reduction in call charges may hamper service quality.
"We are operating in a highly competitive market with the lowest rate in the world. If the price has been cut again, it will be very challenging for us," said Mahmud Hossain, chief corporate affairs officer of Grameenphone, after the meeting.
"However, if there is a need for price revision, it should be based on a globally accepted cost modeling method."
A senior official of BTRC also disagreed with Airtel's proposal of withdrawing the inter-connection charge. It may inspire the operators to offer even free voice call services. Such services were available in the country before 2008 and had a negative impact, especially on the youth and students, he said.