Bangladesh Telecommunication Regulatory Commission
(BTRC)
Cost & Tariff in Bangladesh
--------------Md. Yakub Ali Bhuiyan.
Deputy Director
BTRC, Bangladesh.
Email: yakub.ali@btrc.gov.bd
Bangladesh
Telecommunication Sector
&
the activities of BTRC
2
Bangladesh
Population: 146.6 M
Area: 144000 sq. KM
(Census 2011)
Per Capita
Income: USD 772
GDP Growth Rate: 6.32%
(2010-11)
3
Telecommunication Market
BANGLADESH
Competition : Intense
Call charges : Declining
Customer service : Improving
Geographic coverage : Expanding
New value-added services : Improving
All these indications suggest a healthy &
robust Telecommunication industry
with promising growth in the area
of technology, services and
consumers’ choices
6
Wireless Network Coverage
1997
3 /64 Districts
2000
30 /64 Districts
2002
50 /64 Districts
2004
61 /64 Districts
At present
64 /64 Districts
5
Telecom & ICT Applications
E Commerce Services
Basic Voice Service
E-Education
Telecom & ICT
Enablers
Telemedicine Services
Voice Mail
Emergency Services
E-mail
Internet Access
Community Radio
Gateway Operators
Data Communications
Fax
Video Conferencing
Chat Services
FNOs
E-Governance Services
ISPs
ICT
Drivers
SMS
MNOs
IP VPN
Software Developers
Directory Services PC/Tablet
Manufacturers/Reselle
Phone/PDA
rs
Manufacturers/Reselle
Training Centre
rs
CD & CP
Research Services
Electronic Media
Tele-centre services
6
Telecom Indicators
ICT Indicators
(as of May‘12)
• Tele-density is more than
62%
62%
• Internet Penetration is more
27%
• Over 90 M Telecom
27%
than
Subscribers
40 M
• More than
Internet users.
Tele-Penetration
Internet Penetration
7
Growth of the Industry
100000000
90 million
Voice Subscriber
90000000
80000000
70000000
60000000
50000000
40000000
30000000
20000000
BTRC Starts
10000000
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Data Subscriber
35000000
2012
40 million
45000000
40000000
2011
30000000
25000000
20000000
15000000
10000000
5000000
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
8
Tariff: Affordability for the Subscribers
1 USD=BDT 82.00
11.37
SMS Charge MAX (BDT/SMS)
2
0.5
2009
2010
Voice Tariff Reduction Trend
4.31
3.55
2.43
Dec-01
Jan-04
2.09
Oct-05 Dec-06 Jan-07
Average Tariff (BDT)/min
1.7
Jul-07
0.97
0.88
0.92
Dec-07 May-08 Jun-09
0.83
Dec-11
Expon. (Average Tariff (BDT)/min)
9
Internet BW Price
Affordability for the Subscribers
Internet BW Price Reduction Trend Internet Price is now
more affordable.
75,000
2006
36,000
36,000
27,000
18,000
10,000
2007
2008
2009
2010
2011
BW Price
Expon. (BW Price)
Interconnect Termination Rate(BDT/Min)
0.9
2004
0.66
2007
0.4
2008
Termination rate
reduced to make the offnet voice service more
affordable
0.18
2009
10
Brief History about Cost Modeling project for Interconnection in Bangladesh:
March 28, 2010 Start of ITU funded project on cost modeling, interconnection
framework and tariff policy.
March 30, 2010 Start of phase-1 of the project with a multi-party (all
stakeholders) Project-Workshop run by the Commission.
Dec 9, 2010
Completion of phase-1 (non-disclosure agreement, data
collection, administrative works with project-consultant) of
the project.
Dec 13, 2010
Start of phase-2 of the project with a individual-party (every
kind of licensee/operators singly) project-workshop run by
project-consultant (Mr. Jim Holmes).
October 29, 2011 Submission of mobile network cost model data sheet.
End of Dec 2011 Completion of project.
LRIC: Bottom Up Model for Interconnection in Bangladesh:
* Basically we considered Bottom Up Model for Fixed, Mobile and ISP
Networks.
* We need considerable data from Licensed Operator to do this.
Project Outcome: Voice Call Tariff
(1 USD= BDT 82.00)
Tariff for Internet Protocol Telephony Service Provider (IPTSP)
SL
Description
1 Tariff Range
Existing IPTSP Tariff
(Excluding VAT)
Maximum BDT
2.00/min
Maximum BDT
0.20/min
New/Revised (approved by BTRC)
for IPTSP Tariff (Excluding VAT)
Maximum BDT 2.00/min
Maximum BDT 0.10/min
2 IPTSP (On-net) & IPTSP to
IPTSP
(within the same network &
other IPTSP network)
Maximum BDT
Maximum BDT 0.30/min
3 IPTSP (Off net)
0.40/min
(Termination in the other
network)
4 IPTSP to International
Rate to be approved by
Rate to be approved by BTRC
outgoing
BTRC
BDT 0.40/min (Originating
5 Interconnection charges
BDT 0.40/min
operator 45%, Termination
(Originating operator
operator 45% & ICX operator 10%)
0.18, Termination
operator 0.18 & ICX
operator 0.04/min
Project Outcome Voice Call Tariff
(1 USD= BDT 82.00)
Public Switch Telephone Network (PSTN Tariff):
SL
Description
Existing PSTN Tariff (Excluding
VAT)
New/Revised (approved
by BTRC) for IPTSP Tariff
(Excluding VAT)
1
Tariff Range
BDT 0.25 to 2.00/min
Maximum BDT 2.00/min
2
BDT 0.25 to 2.00/min
Maximum BDT 0.10/min
Minimum BDT 0.65/min
Maximum BDT 0.40/min
4
PSTN (On-net)
(within the same network)
PSTN (Off net)
(Termination in the other
network)
PSTN to International outgoing
Rate to be approved by BTRC
Rate to be approved by
BTRC
5
Interconnection charges
3
BDT 0.40/min (Originating BDT 0.40/min (Originating
operator 45%,
operator 0.18, Termination
operator 0.18 & ICX operator Termination operator 45%
& ICX operator 10%)
0.04/min
Project Outcome: Voice Call Tariff
(1 USD= BDT 82.00)
Mobile Tariff:
SL
Description
1 Tariff Range
2 Mobile (On-net)
(Within the same network)
3 Mobile (Off net)
(Terminating in other
network)
4 Mobile to International
outgoing
5 Interconnection charges
BDT 0.25 to 2.00/min
BDT 0.25 to 2.00/min
New/Revised (approved by
BTRC) for IPTSP Tariff (Excluding
VAT)
Maximum BDT 2.00/min
Maximum BDT 0.25/min
Minimum BDT 0.65/min
Maximum BDT 0.60/min
Rate to be approved by
BTRC
BDT 0.40/min
(Originating operator
0.18, Termination
operator 0.18 & ICX
operator 0.04/min
Rate to be approved by BTRC
Existing Mobile Tariff
(Excluding VAT)
BDT 0.40/min (Originating
operator 45%, Termination
operator 45% & ICX operator
10%
Project Outcome-Voice call Tariff
SMS Tariff for IPTSP, PSTN & Mobile Operator
(1 USD= BDT 82.00)
SMS Tariff:
SL
Description
1 Subscriber to Subscribers
SMS
2 Subscriber to International
outgoing
3 Other VAS SMS
4 Interconnection charges
BDT 0.25 to 2.00/min
New/Revised (approved by
BTRC) for IPTSP Tariff
(Excluding VAT)
Maximum BDT 0.50/min
BDT 0.25 to 2.00/min
Maximum BDT 2.50/min
Existing PSTN Tariff (Excluding
VAT)
Rate to be approved by BTRC Rate to be approved by BTRC
BDT 0.10/SMS (Originating
BDT 0.40/min (Originating
operator 45%, Termination
operator 0.18, Termination
operator 0.18 & ICX operator operator 45% & ICX operator
10%)
0.04/min
Thanking Your Patience
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