[🇧🇩] Telecommunication Industry in Bangladesh

[Saif]

Mobile phone raw material import concessions extended to 2026

The current notification on concessionary import facilities for mobile phone manufacturing raw materials has been extended to 30 June 2026 from its original validity till 30 June 2024.

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Mobile phone raw material import concessions extended to 2026

The current notification on concessionary import facilities for mobile phone manufacturing raw materials has been extended to 30 June 2026 from its original validity till 30 June 2024.

At the budget speech of fiscal year (FY) 2024-25, Finance Minister AH Mahmood Ali said, "There are a good number of mobile phone or cellular phone manufacturing/ assembling companies in the country. The components used in mobile phones are constantly changing due to technological advancements. As a result, for the sake of adding new features to phones, companies need to import new types of components. In order to meet this requirement, I propose adding some newly invented components to the existing notification and to amend the description of some existing items".

The minister also proposed to amend the existing notification to solve the complications in the assessment of customs duty.​

 

[Saif]

Green telecom network for sustainable future

BUILDING a sustainable future is not optional but, rather, a deliberate choice we have to make for a safe future. To reach these decarbonisation goals, telecom operators are trying to have a leadership position in sustainability and the use of renewable energy sources. The Green Telecom Network...

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Green telecom network for sustainable future
Rifaque Ahmed 07 July, 2024, 00:00

| CXO Today

BUILDING a sustainable future is not optional but, rather, a deliberate choice we have to make for a safe future. To reach these decarbonisation goals, telecom operators are trying to have a leadership position in sustainability and the use of renewable energy sources. The Green Telecom Network is now explored as a potential application of green solutions as the globe looks for better energy sources.

Using energy-efficient technology, smart network design, renewable energy use and environmentally-acceptable consumables are all necessary for a telecom network to be implemented. In places where they do not have a network, operators might think of sharing a nearby existing tower instead of establishing their own. The telecom industry's overall energy consumption will drop because of such an agreement that is called a corporate power purchase.

These days, the global energy consumption for telecom operators is about 2–3 per cent, making them some of the most energy-intensive businesses in respective regions. Operators' carbon footprint increases along with their energy use, harming not only the environment but also their reputation and position.

After an unprecedented consumer demand for digital communications and the rising demand for fast speed in digital communication during the Covid pandemic, telecom infrastructures are using more energy than ever. The information and communications technology industry and telecom providers have a large impact on both CO2 emissions and waste since worldwide data traffic is anticipated to expand by a significant number annually.

So, it is necessary for telecom providers to control network capacity along with aggressively adopting green ways of conducting large-scale operations. Otherwise, the energy sector will continue to contribute to climate change through emissions from electronics and waste production. They can also contaminate the soil or other ecosystems in the vicinity of production or disposal sites.

Telecom companies are exploring ways to improve the energy efficiency and sustainability of their data centre operations. This includes implementing energy-efficient technologies and practices, such as server virtualisation, data centre consolidation and an increased use of renewable energy sources like solar and wind power. Many telecom companies are also investing in advanced power management tools and technologies. Investment in artificial intelligence and machine learning is also introduced to optimise power consumption and reduce energy waste.

Eco-friendly networks are the ones that are built with low power consumption and energy efficiency in mind. The primary goal of green networks is to reduce energy consumption while increasing efficiency and optimisation. Although implementing green networks has unquestionably become morally necessary, the cost of energy now represents mostly telecom operating expenses. The need to reduce these expenses through the implementation of green mobile networks is both a social and a financial necessity.

Renewable energy-powered networks minimise the amount of carbon that is emitted during their daily operation. Typically, a tower is run on a grid and battery combination and when both sources are unavailable, diesel generators are switched on to ensure network availability. The industry's endeavour should be to make this generator redundant and run the network on green energy sources like solar, wind, hydrogen fuel cells, or enhanced battery capacities (lithium ion, lithium phosphate) for extra backup in the network building, supply and manufacturing processes. Networks should be considered for their complete supply chain.

Some of the telecom towers in Bangladesh have successfully started deploying diesel-free sites and a better grid power availability is on the rise to adhere to the quality standards laid down by the government. Energy consumption, renewable energy sources and a CO2 reduction strategy are the three vital elements that must work in tandem for a network to be considered green.

Low-powered rectifiers, Li-ion/LFP batteries and advanced solar power controllers should be deployed to address grid power interruption and fluctuation. Upcycling the setups with the implementation of energy-efficient solutions can be a great opportunity to drive change in the carbon-free emission agenda.

Network infrastructure energy efficiency is a priority for operators as the base stations represent most of the energy consumption. With a significant increase in the amount of data traffic since the launch of 5G, it presents a unique challenge of supplying reliable and clean energy to telcos and tower cos. Stabilisation of power-on-demand is critical for handling the transition from 4G to 5G, edge computing and IoT, and further related technologies.​

 

[Saif]

BTRC show-causes Robi, Banglalink for failing to improve service quality

This comes after the regulator sent a notice to GP on June 30 for “not using the allocated spectrum”, which affected the operator’s quality of service.

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BTRC show-causes Robi, Banglalink for failing to improve service quality

The Bangladesh Telecommunication Regulatory Commission (BTRC) today issued show-cause notices to Robi Axiata and Banglalink for "failing to achieve the target to improve the quality of service" to the benchmark set by the regulator.

This comes after the regulator sent a notice to GP on June 30 for "not using the allocated spectrum", which affected the operator's quality of service.

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, said: "Banglalink has always tried to ensure best quality of service and has actually been able to provide the fastest mobile internet in the country continuously for the last four years through heavy investment in network expansion and procurement of spectrum.

"We always take feedback from our customers and regulators positively and will strive to continue to provide best service for our customers."

Shahed Alam, Robi's chief corporate and regulatory officer, said: "We would humbly like to state that according to the rigorous test carried out by BTRC and our own technology team, Robi has been found to be offering better quality of service than what is expected as per the QoS regulation.

"The show-cause notice thus comes as a surprise for us. The critical point here is that the show-cause notice is made in reference to the unreasonably stringent interim QoS directive issued by the regulator.

"We believe that the existence of such an interim directive on QoS while we have a clearly defined QoS regulation for the same only creates confusion and inconsistency in the regulatory framework for ensuring QoS for our customers.

"Robi is consistently delivering on QoS requirements and shall respond to the regulator clarifying our position on the matter in due course."​

 

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Mobile phone operators join race to capture broadband market

The country’s three private mobile network operators are racing to grab a share of the rapidly expanding broadband market by offering fixed wireless access (FWA) services, which give users Wi-Fi connections without cables.

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Mobile phone operators join race to capture broadband market

The country's three private mobile network operators are racing to grab a share of the rapidly expanding broadband market by offering fixed wireless access (FWA) services, which give users Wi-Fi connections without cables.

After the Bangladesh Telecommunication Regulatory Commission (BTRC) allowed mobile phone operators to launch FWA services in its cellular mobile services guidelines earlier this year, Grameenphone became the first to soft-launch such products.

It rolled out a service called "gpfi unlimited" yesterday.

Banglalink introduced FWA services last week in partnership with a third-party router supplier. Robi plans to roll out a similar service later this month.

The moves are expected to spark fierce competition in the Tk 8,000 crore broadband internet market in Bangladesh.

Competition will intensify not only among operators but also between network carriers and broadband internet operators.

In Bangladesh, telecom operators provide mobile internet while internet service providers (ISPs) offer broadband services.

Generally, mobile operators deliver services through cellular networks, utilising technologies such as 3G, 4G, and 5G, which enable wireless data transmission to smartphones and tablets, offering flexibility and mobility. On the other hand, broadband companies provide internet via fixed-line connections through cables or fibre optics.

In recent years, the broadband internet market in Bangladesh has expanded rapidly, with 1.34 crore subscriptions as of May, leading to the flourishing of a large number of service providers.

Now, mobile network operators will be able to offer similar services. In order to obtain the service, customers will need just an indoor modem or router and a subscription plan.

However, according to industry insiders, ensuring stable and high-speed connectivity with greater bandwidth and reliability compared to wired broadband will be difficult for operators.

Mohammad Sarwar Alam, assistant professor at the University of Chittagong, has been using 'gpfi' for over six months.

He identified the pros and cons of the service.

He said the internet speed is satisfactory, adding that he can take the router anywhere and use it wherever Grameenphone's network is available.

"However, if the user is present in a room while the router is kept in another room with the door closed, the internet speed starts to fluctuate."

Furthermore, the amount of available spectrum directly affects the capacity and speed of FWA services, posing a challenge for operators. This is because the deployment rate of higher frequency bands such as 2300 MHz and 2600 MHz, used for 4G LTE (long-term evolution), and potentially 5G technology, is low in Bangladesh.

Although the auction for these spectrum bands was held over two years ago, operators have deployed less than 20 percent of the frequencies they have purchased. These bands are crucial for FWA services as they support faster data rates and greater capacity, according to industry experts.

Grameenphone offers two types of routers: one priced at Tk 4,000, which can connect 10 devices, and another priced at Tk 7,500, which can support 32 devices.

Currently, there are three subscription plans: Tk 1,000 per month for 25 Mbps, Tk 1,300 per month for 30 Mbps, and Tk 1,900 per month for 40 Mbps.

As such, prices may be another barrier to mass usage as consumers can buy cheaper broadband packages from traditional ISPs.

Md Emdadul Hoque, president of the Internet Service Providers Association of Bangladesh, stressed that mobile operators should not be allowed to provide any such services through cables.

Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink, said: "Over the past 24 months, we have invested heavily in doubling our nationwide network coverage and enhancing our customers' digital experience by acquiring additional spectrum.

It now offers fixed wireless services through routers, including the Banglalink MiFi routers and fixed routers. Recently, the company partnered with TP-Link to provide high-quality speed with bundled offers.

"We believe in offering seamless, uninterrupted connectivity by combining mobile telephony and fixed wireless services, allowing customers to enjoy optimal internet speeds anytime, anywhere," Rahman said.

"We can do this, or this can be done through partnership models."

Shahed Alam, chief corporate and regulatory officer of Robi Axiata Limited, said WFA has been launched in various countries around the world to cater to the growing demands for uninterrupted high-speed internet service.

Robi had completed preparations to provide wireless broadband services using advanced technology by combining 4G and 5G technology.

"The service will be launched on a wide scale soon," he said. "We believe that this service will open a new option for customers in terms of availing high-speed internet services."

He said competition in the internet service sector will increase through this initiative, providing quality internet service for consumers.

"However, to ensure customer satisfaction, we are conducting thorough market research and gathering overall experience on service delivery variables in this regard."​

 

[Saif]

Telcos’ service falls short of BTRC standard

Mobile operators performed poorly in the telecom regulator’s latest drive test to assess service quality, reinforcing users’ claims of experiencing substandard service.

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Telcos’ service falls short of BTRC standard
Shows drive test result with state-of-art system

Mobile operators performed poorly in the telecom regulator's latest drive test to assess service quality, reinforcing users' claims of experiencing substandard service.

The drive tests were conducted between February 14 and June 5 across Dhaka city corporations, Narayanganj, Keraniganj and Savar upazilas with the Bangladesh Telecommunication Regulatory Commission's newly acquired system from Germany that was purchased for 1.5 million euros.

Maintaining the quality of service (QoS) is a fundamental requirement enshrined in telecommunications licences, said Abu Nazam M Tanveer Hossain, a telecom sector expert.

"Since 2011, licensees have negotiated these standards through consultation and negotiation and the recent report, if accurate, highlights a significant failure to uphold the commitments made upon accepting these licences," he said.

Robi, which has 5.8 crore customers as of August, performed the best, failing in only five key performance indicators (KPIs) out of 40 across four areas.

Market leader Grameenphone, which has 8.5 crore subscribers, failed in six KPIs, Banglalink in 14 and Teletalk in a staggering 26, shows the test results.

For internet services, only the state-owned Teletalk failed to meet the BTRC's benchmarks, with Robi faring the best.

In Dhaka city, Banglalink, which has 4.2 crore customers, fared the worst among the three private carriers: it failed to meet five of the 10 KPIs. For instance, the operator's call drop rate was above the BTRC's ceiling of 2 percent in Dhaka city: it was 2.59 percent.

Over in Keraniganj upazila, all operators' call drop rate was above the BTRC's ceiling of 2 percent for 2G voice calls, with Banglalink faring the worst (4.25 percent).

However, for 4G voice calls in the upazila, only Banglalink passed the test, with Robi faring the worst (3.98 percent).

All four operators failed to meet the BTRC's ceiling for call setup time of 7 seconds in Savar for 2G voice calls.

Banglalink and Teletalk also failed in Keraniganj, while Teletalk missed the mark in Dhaka and Narayanganj.

For call setup success ratio, which should not be less than 97 percent, all operators except Grameenphone failed in Keraniganj.

For 2G voice calls, only Robi met the call setup success ratio in Dhaka and Narayanganj.

The unsatisfactory performance comes as the operators are not fully utilising the spectrum from the higher bands assigned to them in March 2022. Conversely, the operators are relying on the lower band, which offers wider coverage with fewer base stations.

The higher band have a shorter range but more bandwidth, meaning better transmission capacity but with a higher concentration of base stations.

Banglalink, which purchased 40 MHz in the 2,300 band, has deployed the spectrum only to 7.07 percent of its sites, according to a BTRC presentation in June.

Grameenphone and Robi, both of whom bought 60 MHz in the 2,600 band, have deployed the spectrum to 11.92 percent and 17.76 percent of the sites respectively.

If the operators offload data service pressure to a higher band, the lower band spectrum is freed up to offer better 2G voice services.

However, the lack of proper spectrum usage is causing customers to experience poor signal, frequent call drops and mute calls.

Over the past decade, the BTRC has implemented measures such as infrastructure sharing and unified licensing to optimise operational costs.

Yet, the mobile operators' QoS is falling short of customer expectations.

The drive test result is a setback for operators, who often claim compliance with the BTRC benchmarks despite deteriorating service quality.

It also raises questions about their ambitions to become digital operators offering services such as payments and OTT platforms while struggling to provide core telecom services.

"The BTRC as the regulatory body should ensure satisfactory services and tariffs for the users," said Ghulam Rahman, president of the Consumers Association of Bangladesh.

Contacted, Emdad Ul Bari, who was appointed the chairman of the BTRC on September 10, said he has not seen the result of the drive test yet.

However, Bari said he sat with the chief executive officers of the telecom operators on Tuesday regarding QoS.

"We have urged them to find the way to ensure QoS, including when inside buildings," he said, adding that the BTRC will hold an industry consultation on the matter on October 10.

Robi and Banglalink said the drive test result conducted by the BTRC's newly procured tool differed from the ones derived from their own tests in several parameters.

The operators have expressed their concerns and feedback about the drive test results through the Association of Mobile Telecom Operators of Bangladesh.

The results do not depict the correct picture, said Shahed Alam, chief corporate and regulatory officer of Robi.

"We are hopeful in reaching an acceptable conclusion regarding the drive test results," Alam said, adding that Robi plans to roll out the 2,600 MHz band in 35 percent of the sites this year and will continue to deploy in more sites as per requirement and traffic forecast.

The BTRC's results do not reflect the network's performance and could cause confusion, said Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink, adding that the operator is "fully utilising the 2,300 MHz band" at present.

The AMTOB, the BTRC and drive test vendors are working together on a unified methodology for calculating the KPIs as significant differences have been observed between the drive test results of the operators and the telecom regulator's, Grameenphone said in a statement.

About the low deployment of the spectrum from the 2,600 MHz band, Grameenphone said the 60 MHz of spectrum in the band was acquired to enhance capacity based on traffic and QoS demands.

The demands are determined by various ecosystem factors such as user behaviour, usage profiles, user concentration and handset penetration.

Grameenphone monitors traffic demand almost in real-time and initiates capacity expansion or new spectrum deployment as needed, the statement added.

Teletalk could not be reached for comment.​

 

[Saif]

Telecom reforms for a smarter future

The shift from “Digital Bangladesh” to “Smart Bangladesh” was like trying to drive a car without an engine — all talk, little substance. While we have made big claims on paper, the reality was far from impressive. While waving the “Digital Bangladesh” flag, we ranked 105 out of 132 in Global...

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Telecom reforms for a smarter future

Voice floor price should be eliminated to support the shift from voice-based to data-driven communication, says an expert. Photo: Star/ File

The shift from "Digital Bangladesh" to "Smart Bangladesh" was like trying to drive a car without an engine — all talk, little substance. While we have made big claims on paper, the reality was far from impressive. While waving the "Digital Bangladesh" flag, we ranked 105 out of 132 in Global Innovation Index 2023 (Source: World Intellectual Property Organization).

For over a decade, our telecom policy had been mainly benefiting a few powerful business groups, favouring political allies over real progress. As president of the Association of Mobile Telecom Operators of Bangladesh, I had grave reservations against critical resources of mobile operators being given away to political allies by regulators. Instead of making policies to advance digital growth, the focus was more on facilitating a selected few. Many of these policies were as corrupt as the regime itself, prioritising personal profits over the country's digital future.

According to ICT Development Index (IDI) of International Telecommunication Union of the United Nations, Bangladesh ranks 62 out of 100. The average IDI score for the 170 economies is 74.8. For 91 economies, the score is above 80. That puts Bangladesh among the bottom 38 economies. Worse still, Bangladesh ranks 111 on the E-Government Development Index (United Nations Educational, Scientific and Cultural Organization), and 75 on "E-Participation Rank". Bangladesh scores below 60 percent in "Mobile Internet Subscribers" and 6.1 percent in "Fixed Internet Subscribers".

The wish of the interim government's chief adviser to reduce data prices is certainly achievable by modifying policies and eliminating political beneficiaries. It is crucial not to compromise on key principles, viz 1) no loss of government revenue, 2) attract foreign direct investment (FDI), 3) remove the influence of past beneficiaries to share that benefit with the government and other stakeholders, and 4) reset policies to regain lost momentum. Given the industry's crucial role in revenue, FDI, socio-economic progress, and transparency, any approach that reduces government revenue or FDI is unsustainable.

Unified licensing for a better future: a three-tier model

A new three-tier licensing model is proposed to address the evolving needs of the telecom industry and ensure better service delivery. This model aims to streamline services, improve quality, and align with regional best practices, and thereby potentially transforming the telecommunications landscape. The three licensing layers are as follows:

1. Access network service: This layer provides end-users access to telecom networks to meet their communication needs, including voice and data. Licensed operators such as mobile network operators (MNOs) and internet service providers (ISPs) would serve customers directly under this licence. Even mobile virtual network operators (MVNO) should be considered here.

2. Infrastructure service: This layer (nationwide telecommunication transmission network (NTTN), tower, submarine cable) would offer transmission services to MNOs, MVNOs and ISPs, ensuring the seamless flow of voice and data among customers. More will be discussed in Part 2 of this article.

3. Services and content: This layer would provide digital services beyond traditional voice and data offerings. It would encompass content providers, focusing on delivering enriched digital experiences to customers.

The above should facilitate optimising and licensing 2900+ licences in 29 categories. Licensees may be allowed to acquire multiple licences following regional best practices. Significant Market Power (SMP) should be implemented in each category for balanced growth.

Immediate reforms and long-term strategy

A swift reform could involve removing International Gateway Operators Forum (a forum of internet gateway licensees) within a month, eliminating discriminatory revenue-sharing and enabling call terminations at actual rates, benefiting all stakeholders. A more comprehensive reform, like restructuring licensing layers, would require cancelling or non-renewing licences, a complex process owing to existing conditions. Finalising the revised policy now would enable a smooth transition by 2027, fostering a more efficient and competitive telecom environment that enhances digital connectivity and consumer benefits. All these are only possible if the regulator is empowered and independent.

Scrap voice floor price

The voice floor price in Bangladesh should be eliminated to support the shift from voice-based to data-driven communication. While initially intended to help the MNOs, the floor price now hinders affordability and digital adoption. Most countries no longer charge for voice and SMS. With voice still making up 50-60 percent of the MNO revenue due to such support, the voice floor should be removed, and the MNOs should be given the same freedom as smartphone manufacturers and importers to drive data adoption.

Removing the voice floor price can drive competition, reduce communication costs, and make digital services accessible for all. Moreover, it will push everyone to focus on data consumption and penetration. The monthly data consumption in Bangladesh (5.5 GB) is one of the lowest in the region. India's Jio model proves that data & device inclusive packages can uplift both urban and rural communities without relying on voice revenue.

The government could consider introducing differentiated taxes on data and voice revenues to support this transition without losing revenue. The MNOs may strongly oppose this move, arguing that it would negatively impact low-income users. However, the reality is, such a policy threatens to leave the underprivileged trapped in the analog era, while the wealthy continue to enjoy the benefits of the digital age.

Hence, while the promises of telecom transformation sound fantastic, much of the groundwork is yet to be laid. It is time to trade the fancy slogans for real reforms, ensuring our progress is not just on paper. After all, it is always harder to glide into the future when we are held back by the past.

The author is the founder and managing director of BuildCon Consultancies Ltd​

 

[Saif]

Telecom leaders plead for independent BTRC

Industry leaders in the telecom sector have called for a truly independent Bangladesh Telecommunication Regulatory Commission (BTRC), urging that reforms should be free from political bias and favouritism. They underscored the need to curb autocratic practices in the use of technology, ensure bala

thefinancialexpress.com.bd

Telecom leaders plead for independent BTRC
Reforms crucial to rectify past missteps
FE REPORT
Published :
Oct 18, 2024 09:14
Updated :
Oct 18, 2024 09:14

Industry leaders in the telecom sector have called for a truly independent Bangladesh Telecommunication Regulatory Commission (BTRC), urging that reforms should be free from political bias and favouritism.

They underscored the need to curb autocratic practices in the use of technology, ensure balanced licensing and promote equal opportunities for all.

The demand was raised at a stakeholder meeting on the ecosystem review of the sector at the telecom regulator's headquarters at Agargaon on Thursday.

Md Roknuzzaman, an electrical and computer engineering professor at North South University, delivered a keynote speech, highlighting the need to dismantle the existing market monopoly.

BTRC chairman Maj Gen (retd) Emdad Ul Bari presided over the meeting with industry leaders and representatives of various telecom organisations in attendance.

Mr Bari acknowledged that mobile services in Bangladesh were originally launched with the goal of enhancing connectivity, rather than mobility, and that the infrastructure was primarily designed for voice-call networks.

However, introduction of data services and growing concern over VoIP usage have complicated the sector's growth, with the industry struggling to adapt.

He acknowledged the global shift towards data-driven services, describing data as the "lifeline" of modern telecom infrastructure.

"Clinging to outdated network topologies is no longer feasible," remarked Mr Bari, stressing the urgency of reform.

While state monopolies have been diminished, he noted that private monopolies have emerged, requiring regulatory interventions.

"BTRC must act as an independent commission free from political interference, especially in licensing matters," Mr Bari said, adding that reforms were needed to rectify past missteps and align the ecosystem with industry demands.

He also pointed out that many licences would expire by 2027, urging swift action to create customer-friendly infrastructure and eliminate middlemen.

Industry figures like technology expert Suman Ahmed Sabir, Robi CEO Rajib Shetty, former AMTOB president Mahtab Uddin Ahmed and Mango Telecom CEO Mannan Khan offered their perspectives.

Internet Service Providers Association of Bangladesh (ISPAB) president Emdadul Haque stated that a level-playing field was yet to be established, with fixed pricing for ISPs and IIGs but not for mobile operators.

He also pointed out obstacles in deploying CDNs in the last mile along with tax and VAT issues that prevent the reduction of internet costs at grass-roots level.

Responding to media queries after the meeting, the BTRC chief acknowledged that licences were previously granted based on favouritism, often resulting in suboptimal service.

He emphasised the need for clear and dependable regulations, stating that BTRC's transformation from a telecommunications regulator into a digital service provider was underway.

Global tech giants like Google and Facebook will invest in Bangladesh once trust in the regulatory framework is restored, according to Mr Bari, hinting at imminent reforms involving industry, academia and regulatory experts.

Meanwhile, ex-Robi CEO Mahtab emphasised BTRC's reform, pointing out that telecom department and relevant ministries should not be involved in BTRC's decision-making processes.

"The BTRC must be empowered to make autonomous decisions without interference from other government bodies," he observed.

Mr Ahmed argued that data pricing should remain untouched, given that 60-70 per cent of telecom revenue comes from voice calls.

He sought a unified licensing system in sync with global practices and advocated that towers be managed by Towerco, with both active and passive infrastructure sharing among operators to curb market concentration.

Additionally, the telecom expert suggested utilising unused bandwidth from submarine cables and transferring control of domestic data centres from the ICT Division to the BTRC.

According to Mr Ahmed, the BTRC must prioritise long-term industry growth over merely acting as a revenue-collecting body.​

 

[Saif]

BTRC fines top three mobile operators Tk 15 lakh

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to impose a fine of Tk 15 lakh on Grameenphone, Robi and Banglalink for breaching industry regulations.

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BTRC fines top three mobile operators Tk 15 lakh

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to impose a fine of Tk 15 lakh on Grameenphone, Robi and Banglalink for breaching industry regulations.

Each operator will have to pay Tk 5 lakh for sending more than three promotional SMS per day to their customers, according to BTRC documents.

In a BTRC directive on data and related packages issued last year, mobile operators were instructed to not send more than three promotional SMSs daily.

The decision to penalise Grameenphone, Robi and Banglalink follows months of contention between the BTRC and operators regarding this issue.

The BTRC argued that sending more than three promotional SMSs daily would mentally harass the customers and that the operators' violation distorts the regulator's image.

However, the operators claim that sending more than three SMSs is necessary as the delivery rate of SMS to customers is less than 70 percent due to issues with handsets, inactive SIMs and other reasons.

They also said sending more than three promotional SMSs daily is vital for them as doing so enables direct communication with customers regarding new products, services and AI-driven personalised offers.

Besides, this approach enhances service diversification, assists in product selection and fosters customer engagement by addressing individual preferences and behaviour.

The BTRC first cautioned Grameenphone in late October last year and asked for an explanation in April this year as to why the company needs to send more than three SMSs per day to customers.

The SMS delivery rate per customer averages around 68 percent due to system limitations, customer handset issues, and other factors, Grameenphone explained in response.

For churned or inactive customers, the rate can drop to as low as 30 percent. Therefore, to ensure three SMSs are received by customers, more than three SMSs need to be sent, the operator said.

The BTRC also cautioned Banglalink last year and asked for an explanation in May this year.

In its response, the operator stated that despite technical challenges, it had taken steps to limit daily promotional SMS distribution.

However, it argued that the three-SMS restriction hinders the promotion of new services and products in response to evolving communication needs and increasing customer demand.

Most of Banglalink's customers are non-smartphone 2G device users with limited access to digital promotion channels, making them cost-conscious buyers.

Therefore, Banglalink relies heavily on SMS to communicate with this segment, considering it an effective way to reach marginalised, non-smartphone users.

Banglalink argued that enforcing the three-SMS limit is discriminatory and deprives customers of suitable product offers.

Robi was cautioned in late October last year and asked for an explanation in November that year for sending more than three SMSs per day to the customers.

Robi replied that sending promotional SMS is essential for service diversification, product selection and AI-based notifications. Robi also highlighted that its SMS platform operates separately from its data and voice platforms, making it technically infeasible to restrict the number of SMS sent.

Experts have raised questions about such micro-management by the commission, especially given the availability of the Do Not Disturb (DND) service.

The mobile operators introduced the option to block promotional SMS several years ago following BTRC instructions.

Customers can activate the DND service by dialling short codes: Grameenphone (1211101#), Banglalink (1218*6#), and Robi/Airtel (*7#).

Abu Nazam M Tanveer Hossain, a telecom expert, said while strict enforcement of laws and bylaws is essential for maintaining governance and the rule of law, it is equally important that these regulations are logical, practical and add value.

"While promotional SMSs can be disruptive, consumers have the option to opt out," he added.

Therefore, regulatory focus should prioritise crucial issues like rollout obligations, quality of service and fostering competitive behaviour rather than emphasising less critical concerns like promotional messaging, Hossain said.

"The BTRC is currently revisiting the current data directive. Imposing any fine based on the previous directive has ample space for revision," said Shahed Alam, chief corporate and regulatory officer of Robi Axiata PLC.​