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Brief Profile on Telecommunication in Bangladesh

BACKGROUND

After independence of The Peoples Republic of Bangladesh in 1971, Bangladesh Telegraph & Telephone (T&T) Department was created under the Ministry of Posts & Telecommunications with a view to run the telecommunication services on commercial basis. The Bangladesh T & T Department was converted into a corporate body in 1976. In pursuance of Ordinance No. XII promulgated by the President of the Peoples Republic of Bangladesh on 24^th February, 1979 The Bangladesh Telegraph & Telephone Board (BTTB) came into existence.

At this moment BTTB is providing basic telecommunication services through out the country and also providing carriers to communicate with the outside world. BTTB is also providing some value added services as Dial-Up and Leased Line Internet services, International Private Leased Circuit (IPLC) services, Digital Subscribers Line (DSL), Telex Services and Packet Switch Data Network (PSDN) services.

ORGANIZATIONAL STRUCTURE OF BTTB

Bangladesh T & T Board is a government establishment under the Ministry of Post and Telecommunication (MOPT). The Board is headed by the Chairman with 4(Four) full time members and 3(Three) part time members under him. The government of People’s Republic of Bangladesh gives their appointment.

REGULATORY FRAMEWORK

The Ministry of Posts & Telecommunications (MOPT) holds the responsibility of sector regulation. The Telegraph Act of 1985 is the primary law governing the sector and granted the government exclusive power to establish and provide all telecommunications services and products. The Wireless Telegraphy Act of 1933 governs the operation of one way Radio Communications, Paging and Radio services. The BTTB Ordinance of 1979 provided BTTB the monopoly rights and powers for issuing license for telecommunications and wireless services. In October, 1995 Government of Bangladesh (GOB) amended the BTTB Ordinance, 1979 and transferred the regulatory authority from BTTB to MOPT. Now MOPT is in process of forming a regulatory body naming Telecommunication Regulatory Board (TRB).

Presently MOPT is the principal telecommunications policy maker. Other institutions, such as Ministry of Finance and the Planning Commission are also involved in policy making process.

TELECOMMUNICATIONS IN BANGLADESH – GENERAL

Basic Fact on Bangladesh Telecommunication

Table I. Telecommunication Operators in Bangladesh

AVAILABLE TELECOMMUNICATIONS SERVICES

At present following services are being offered by BTTB:

BASIC TELEPHONY

At the end of 1998-99 fiscal year Bangladesh T & T Board had 631 Telephone Exchanges with a total capacity of 4,74,322 lines. BTTB started operating digital local exchanges after installation of six NEC-NEAX 61E exchanges in the Dhaka Telecom Region Network in 1990-91 fiscal year with initial total capacity of 26,000 lines. Upto 1998-99 financial year fifteen (six NEC-NEAX 61E exchanges, seven ALCATEL E-10 exchanges and two ITALTEL exchanges), twelve (nine ALCATEL E-10 exchanges and three ITALTEL exchanges), ten (four ALCATEL E-10 exchanges, three GDT exchanges and three ITALTEL exchanges) and seven (One ALCATEL E-10 exchange, two ITALTEL exchanges and four ZTE exchanges) local digital exchanges were installed in Dhaka, Chittagong, Khulna and Rajshahi Telecom Regions respectively. Exchange status of Analog and Digital telephone lines are given on Table II.

Table II. BTTB Telephone Exchange Status

(As of 30^th June, 1999)

Table III. BTTB Network Switching

PUBLIC TELEPHONE SERVICES

Years ago Coin Boxes were used in the urban areas and land line wireless Public Call Offices (PCOs) in the rural areas to provide public telephone services. Card Telephones were introduced to wipe off the degraded service quality of Coin Boxes and PCOs. By November 2000 about 1400 Card phone booths were installed in different parts of the country. While all card phones have NWD facilities where as around 750 of them have got ISD facility. Due to higher accessibility and better technology these Card phones have been widely accepted by public throughout the country. Almost all the thanas have been covered by the Card phone service. Programs are under consideration to extend this service to village level.

TELEX SERVICES

The first digital Telex exchange in Bangladesh was established in May 1981. In December 1999, there were three fully digital Storage Program Controlled (SPC) telex exchanges working in Dhaka. They were

• NEDIX (510 AS) having capacity of 960 line supplied by NEC, Japan
• NEDIX (510A) with a capacity of 1,500 lines supplied by NEC, Japan
• ELTEX-II with a capacity of 6,048 lines obtained from Saudi Arabia

By applying Time Division Multiplexing technique six districts namely Narayangonj, Chittagong, Sylhet, Khulna, Jessore and Bogra had been brought under the switching control of this Gate Way Exchange by installing Tele-Printer Exchanges (TPXs) in the said districts. This NEDIX (510A) exchange was working as a tandem exchange as well as an international telex exchange.

In January, 2000 BTTB in a joint venture with British Telecom introduced Global Telecom Service (GTS), in which the Telex Exchange will be located at Birmingham England with a Multiplexer at Dhaka and other places outside Dhaka where BTTB is providing Telex Services. By doing so, maintenance cost has been drastically reduced. This system also has the added advantage that it requires only two international circuit whereas earlier on, it required around 280 international circuit to provide the international telex gateway.

TELEGRAPH (GENTEX)

GENTEX Service was introduced in 1989. The number of offices providing GENTEX services are at present 135. Through this service the telegraph offices are inter connected.

NATIONWIDE DIALING

By providing an integrated nationwide telecommunications facility all the major cities, towns and growth centers are interconnected. This inter-connectivity is achieved through 8 Trunk Automatic Exchanges (TAXs) and a number of Microwave (MW), Ultra High Frequency (UHF) and Very High Frequency (VHF) links.

TRANSMISSION LINKS

Because of the nature of the terrain, transmission links of Bangladesh consist of Microwave and UHF/VHF systems. At present there are six major Microwave links in Bangladesh. The Thana to District headquarters links are almost 100% digital, comprising of 2-Mbps system that form the backbone of rural telecommunication.

Table-IV. Description of Major Transmission Links

A new Optical Fiber transmission route (STM-16) between Dhaka and Chittagong is under installation, which is due to be completed within February 2001.

TRUNK AUTOMATIC EXCHANGE (TAX)

There are 8 Trunk Automatic Exchanges (TAXs) at different locations of the country. The total equipped capacity is 31,884 circuits. The detail of these Exchanges are as described in Table V.

Table V. Present Status of TAXs

OVERSEAS COMMUNICATION SERVICES

There are four satellite earth stations with three international Gate Way Exchanges through which international telecommunication service is provided in Bangladesh.

INTERNATIONAL TRUNK EXCHANGE (ITX)

An automatic digital ITX, with working capacity (as on 05.07.99) of 1,049 trunk circuits of which 301 are International & 748 Domestic Circuits, installed in Dhaka in 1983. The second & third ITX were commissioned in 1995 in Dhaka. At present, the working capacity of the second ITX is 3,047 out of which 1,337 are international & 1,710 domestic circuits and that of third one is 840 out of which 420 are international & 420 domestic circuits. So the total number of working international circuit is 3,936. Operator assisted overseas trunk calls are provided by these exchanges. International direct dialing is also provided to the subscribers through digital exchanges, installed in different places of Bangladesh. There are also remote operator assisted terminals at four other locations in the country.

SATELLITE COMMUNICATION FACILITIES IN BANGLADESH

Bangladesh has four satellite earth station. One standard 'A' type station is situated at South-Eastern part of the country, one 'B' type earth station is situated 33 miles away from capital city Dhaka. The third one, a digital standard 'A' station has been set up at Mohakhali in Dhaka, the fourth earth station has been installed at Sylhet by British Telecom.

Table VI. Description of Satellite Earth Stations

SOME CURRENT & ON GOING PROJECTS OF BTTB

Some up coming projects BTTB has taken .Under these projects analog telephone exchanges will also be replaced gradually.

Projects recently completed or near completion:

Total 467,450 lines will be installed under these ongoing projects.

In addition BTTB has prepared few PPs/PCPs for the following projects which additional telephone exchanges will be installed.

Transmission

Present ongoing projects for Trunk Automatic Exchanges

BTTB has taken two projects for installation of TAX/Local exchanges. Under the project titled "Installed of 3 Tax cum local exchange" through GOB finance BTTB has installed three TAXl at Barisal, Comilla and Kushtia. Eight TAX/Sub-TAXs will be installed at Mymensing, Rangamati, Noakhali, Faridpur, Jessore, Dinajpur, Rangpur and Pabna against a separate project titled "Installation of telephone exchange at different district headquarters" under supplier's credit from PR China.

Present on going projects for national long distance transmission links

BTTB is currently implementing some transmission links on optical fibre with latest SDH digital multiplexing and other transmission links on digital radio with SDH and PDH multiplexing.

Optical Fiber Transmission

Optical fibre transmission links are under implementation through three projects viz. "Dhaka-Chittagong Optical fibre project" under French protocol. "Installation of 200 KL telephone lines in Bangladesh" under telecom bond/GOB ( Govt of Bangladesh ) finance and "Installation of digital telephone exchanges at different district towns" under suppliers credit from PR China and number of links in those projects are 8, 4 and 16 respectively. With the completion of above projects Dhaka and Chittagong, Dhaka and Bogra will be connected through high capacity optical fibre links resulting in improved telecom services between different parts of the country.

Microwave

Digital microwave long distance transmission links will be implemented through three projects namely "Installation of digital telephone exchanges at different district towns" under suppliers credit from PR China, "Installation of 200KL telephone lines in Bangladesh" under telecom bond/GOB(( Govt of Bangladesh ) finance and "Dhaka-Chittagong optical fibre project" under French protocol and the number of microwave hops under those projects are 1920 and 3 respectively.

Most of the district town will be under digital transmission after completion of the first phase of above projects .

BTTB’s Voice traffic ( Minutes):

BTTB’s tumbling international call traffic has drastically deteriorated the financial health of the country’s one of the largest contributor to the exchequer.

BTTB’s 97 per cent revenue is generated from telephony. More than 70 per cent of telephone revenue comes from the international calls. Incoming has always been higher than the outgoing international traffic in BTTB’s network (See the Table :Chart 1 A ).

Therefore, BTTB has been consistently earning foreign exchange from the overseas carriers through the difference of higher volume incoming international call traffic.

Table VII: BTTB’s International Voice Traffic Data (Minutes)

                     Source: BTTB Annual Report of 1998-99

Fall of nearly 11 million minutes during 1998-99 than 1997-98 had dried up BTTB’s cash flow. Such reduction in international traffic has occurred despite BTTB adding 240 satellite circuits in 1999.

This setback is reflected on the negligible 0.72 per cent annual growth in BTTB’s total earning during 1998-99. BTTB’s annual revenue growth rate had been 16 per cent during the pervious two fiscal years (1996-97 and 1997-98).

Experts believe that the state-owned telecom monopoly has been evidently loosing its lucrative overseas calls to the growing popularity of Internet telephony.

International Telecommunications Union (ITU) has forecast that making phone calls using Internet will dominate 25 to 40 per cent of all international voice traffic by 2004.

The ITU Secretary General’s draft report on Internet telephony confirms that the volume of global call traffic over Internet has already far exceeded the voice traffic that travels over the traditional telephone network.

This report also refers to the potentials of Internet telephony, as projected by various operators and analysts.

Deltathree.com says that Internet telephony would generate 16 billion minutes of international traffic in 2000 and will account for some 35 per cent of the total by 2005.

Tarifica estimates that more than 40 per cent of all international calls will be Internet telephony by 2004.

International Data Corporation (IDC) estimates that the Internet telephony market generated 2.7 billion minutes of traffic in 1999 and will expand to around 135 billion minutes, with revenues of 19 billion US dollars, by 2004.

IDC further projected that the Internet telephony market in the Asia Pacific region would grow to some 3000 per cent to 6.9 billion dollars by the year 2005, from about 213 million dollars today.

China and India are the highly potential markets for Internet telephony, while it is already thriving in the big markets like Australia, South Korea and Singapore.

In China, the Ministry of Information Industry has estimated that the Internet telephony business will be worth some 12 billion dollars by 2004.

The Indian government decided recognising the convergence between Internet and telephony. The proposed Convergence Act will replace the existing regulation, which differentiates between voice and data.

State-run Pakistan Telephone Company Ltd. (PTCL) has initiated a pilot project on Internet telephony. Last October, the PTCL finalised selecting a private company in this regard.

Although the Internet telephony is still prohibited, the Nepalese government has been closely working with the ITU on Internet telephony. According to ITU, the Sri Lanka and Bhutan has no restriction over this fast growing popular technology.

The standpoint of Bangladesh on Internet telephony remains unclear. The National Telecom Policy of 1998 has not prohibited it whereas the government is yet to recognise Internet telephony as a telecom solution.

The market has, however, been showing no respect to the government’s indecision. Internet Service Providers (ISPs) offer cheaper international calls through Internet (Source: Financial Express)

Table-VIII describes the growth of International Voice Circuit.

Table-VIII. Growth of International Voice Circuit

Table-IX expresses the growth of international traffic in number of paid-minutes.

Table-IX. Paid Minutes in International Circuits

OVERSEAS COMMUNICATION THROUGH MICROWAVE

There are two microwave links, one is Dhaka - Calcutta the other is Dhaka - Nepal, for overseas communication. Dhaka - Calcutta link has 59 voice circuit and one VFT channel. On the other hand Dhaka - Nepal Microwave link has 12 voice channels.

DATA COMMUNICATION SERVICE

PACKET SWITCH DATA NETWORK (PSDN)

Bangladesh T & T Board has installed an X.25 Packet Switched Data Network at Dhaka & 5 other cities namely Chittagong, Rajshahi, Bogra, Khulna, and Sylhet. This network caters services for three types of subscribers. These are X.25 leased line, X.28 leased and X.28 dial up subscriber.

Inter-city connectivity has been provided through Microwave (existing analog and digital) and international gateway connectivity has been obtained through Mohakhali Satellite Earth Station taking one 64 kbps circuit with VSNL (Videsh Sanchar Nigam Limited), New Delhi. At present the number of subscribers for different type of services are as in Table X.

Table X. List of PSDN Subscribers

INTERNET SERVICES

BTTB is also providing Dial-Up and Leased Line Internet services at Dhaka and four other major cities namely Chittagong, Bogra, Khulna and Sylhet. The Internet access is established via Mohakhali Satellite Earth Station using a backbone capacity of 512 Kbps with Teleglobe, Canada. Process is under way to take another 2 Mbps backbone with C & W, UK. The target is to increase internet backbone speed to 8 Mbps within June, 2001.

The inter-city connectivity is established through 128 Kbps Digital Data Network Link. Only Chittagong is connected with Analog Link. But as soon as the Dhaka-Chittagong Optical Fiber Link is finished Chittagong too will be connected using Digital Data Network.

BTTB has 108 dial-up telephones in Dhaka and 8 telephone lines each at all other places outside Dhaka. At present total number of subscribers is about 3500 of which 3200 are in Dhaka, 100 at Bogra and 200 at Khulna. Commercial services at Chittagong and Sylhet are yet to be offered. But, subscribers of Dhaka can enjoy services from all other places using the same account.

DIGITAL SUBSCRIBER LINE (DSL) SERVICES

Very recently BTTB has installed DSL nodes at 5 exchanges in Dhaka and 4 other places namely Chittagong, Sylhet, Khulna and Bogra. Through this network BTTB is providing high speed point to point data line (64 Kbps to 2048 Kbps) using voice grade copper cables. Already some of the Banks and Corporate Offices have taken this line. The performance of this network is very much satisfactory.

INTERNATIONAL PRIVATE LEASED CIRCUIT (IPLC)

BTTB is also providing high-speed international point to point data circuit for corporate networking through out the.

PLANNING AND DEVELOPMENT OF TELECOMMUNICATIONS SERVICES

GROWTH OF TELEPHONE IN BANGLADESH

The growth of telephone exchange capacity in Bangladesh in the last five years was on average only 40,000 lines per year. The recorded pending demand of telephone has been increasing at a faster rate than the telephone expansion rate. Table-IX shows the trend of telephone growth in Bangladesh from 1994-95 to 1999-00 financial years. Moreover, the pending demand noted here in the table is the expressed demand. But, there is no doubt that many people do not express their demand because of known hardship of getting a telephone number. Therefore, the actual demand is really much more than the numbers expressed here.

Forcast:

Table XI. Projected Demand : Expected number of telephone to be in use in Bangladesh

Source : BTTB 1999

Table XII. BTTB -Performance during the period 1997-1999

Source BTTB 1999

Table XIII. Telephone Growth and Pending Demand in Bangladesh

It is observed from the Table that number of Analog Exchanges is decreasing year by year because of conversion of some of the Analog Exchanges into Digital Exchanges and the number of Manual Exchanges has come to a standstill. Though increase in number of Digital Exchanges is a positive sign, yet the increase is far from meeting the growing demand of the citizens.

PROGRAM FOR INSTALLATION OF DIGITAL TELEPHONE LINES UNDER BTTB

Because of resource and other constraints BTTB has taken some programs in phases to install new digital telephone exchanges both for expansion of exchange capacity and to replace some of the old analog exchanges. Table XIV shows some programs which are already undertaken by BTTB.

Table-XIV. Program for installation of Digital Telephone Exchanges by BTTB

The greatest positive sign for BTTB is that there will be no Analog Exchanges in place after 2001 in the district city level. All transmission links interconnecting the district headquarters will become digital at the end of 2001. Therefore, the quality of service will be very much satisfactory at the introduction of all Digital Technology.

EXPANSION OF TRANSMISSION SYSTEM BY BTTB

By the end of year 2001 all the districts will be interconnected through Digital Transmission Links. Most of the major districts will be interconnected through Optical Fiber Line where as others will be interconnected through Digital Microwave Transmission Line. This will increase the Quality of Service of the links and higher bandwidth of the link will boost up the transmission of Data as well as voice. This will definitely help the emerging IT industry to flourish at a higher rate than ever before.

Major backbone transmission links in Bangladesh are presently using star formation with Dhaka at the center of the network. Some of the proposed transmission routes will introduce mesh formation in some areas of backbone transmission network, which will increase the reliability of communication. Some of the old Plesynchronous Digital Hierarchy (PDH) links will be converted to Synchronous Digital Hierarchy (SDH) links.

EXPANSION OF INTERNET BACKBONE AND OPTICAL FIBER INTERCONNECTIVITY WITH THE OUTSIDE WORLD

Programs are under implementation to increase the Internet Backbone Capacity to 8 Mbps within June, 2001. A Memorandum of Understanding has already been signed with Singapore Telecommunication to interconnect Bangladesh with the outside world through Optical Fiber Link. The estimated project time is 1 year 9 months from the commissioning of the project. A Project Concept Paper (PCP) has already been submitted by Ministry of Post and Telecommunication to expand Internet Services and High-Speed Digital Subscriber Line (DSL) Services to all the 64 districts of Bangladesh. An ATM Network between the Divisional Headquarters has also been proposed in this PCP.

FINANCIAL STATEMENT OF BTTB

REVENUE INCOME FOR 1998-99

Actual revenue collection for the financial year 1998-99 was Tk. 12,542.48 million against the budgeted revenue of Tk. 13,800.00 million. There was a shortage of Tk. 1,257.52 million from the budgeted amount. This revenue was 0.72% more than the collected revenue of 1997-98 financial year.

A detail picture of Revenue Collection, Expenditure and Surplus for the period from 1994-95 to 1998-99 is shown in Table-XV.

Table-XV. Comparison of Revenue Collection, Expenditure and Surplus

REVENUE COLLECTION

The statement of billed amount, Revenue Collection and Receivable figures for the year 1997-98 and 1998-99 are shown in Table XVI.

Table XVI. Revenue Collection and Revenue Receivable

Table XVII shows the service wise revenue collection for the year 1997-98 and 1998-99.

Table XVII. Service Wise Revenue Collection in 1998-99 and 1999-00

Service wise distribution of actual revenue collection along with rate of yearly increase/decrease of such collections for the periods from 1994-95 to 1998-99 are shown in Table-XVIII

Table-XVIII. Service Wise Yearly Revenue Collection and their percentage increment/decrement

ANNUAL DEVELOPMENT PROGRAM (ADP) FOR CAPITAL INVESTMENT

Every year capital is invested through national Annual Development Program (ADP) of the government for the projects which accrue fixed assets. A statement of such total investment in BTTB for the year 1998-99 against 8 development projects is given in Table-XIX.

Table-XIX. BTTB’s investment in 1998-99 through ADP

HUMAN RESOURCE DEVELOPMENT

NUMBER OF POSTS IN BTTB

There are 19,317 regular posts (working position) under different categories in BTTB which are classified into following four service classes:

Class I Service: 681 Posts

Class II Service: 30 Posts

Class III Service: 14,633 posts

Class IV Service: 3,973 Posts

Total: 19,317 Posts

Table XX describes functional department wise number of employees.

Table XX. Functional Department Wise Major Categories of Manpower

HRD ACTIVITIES IN BTTB

BTTB has a Telecommunication Staff College for training of engineers which is equipped with modern telecommunication training facilities. There are also three telecommunication-training centers to train the staffs. There are also five telecommunication-training sub-centers for training of technicians. The training institutions provide extensive training of engineers & staffs on job entry and also conduct refresher courses regularly. Newly recruited engineers are also required to participate in a foundation-training course conducted by Bangladesh Public Administration Training Center, which is compulsory to members of the Bangladesh Civil Service Cadres of all disciplines.

The Telecom Staff College (TSC) at Gazipur (near Dhaka), established in 1987 with ITU and UNDP assistance, has already put its marks as one of the leading institutes for telecom training in this region. It has all the infrastructural facilities and equipment including resource personnel to establish itself as the regional training center.

FOREIGN TRAINING

125 Officers of Bangladesh T & T Board received foreign training in different Telecom Courses during 1999-2000 in Canada, China, USA, France, Sweden, India, Japan, Malaysia, Philippines, South Korea, Thailand, Singapore and United Kingdom.

PARTICIPATION IN FACTORY TESTING, SEMINAR, WORKSHOP AND MEETING

60 Officers of Bangladesh T & T board participated in different types of Factory Testing, Seminar, Workshop and Meeting held abroad during 1999-2000.

PRIVATE SECTOR TELECOM IN BANGLADESH

Table XXI. Public & Private Telecom Operator ( Profile )

Table XXII. Private Sector Telecom (Network)

Table XXIII. Existing Licensing & tariff arrangement with Private sector

Mobile Market in Bangladesh

Mobile phone users in Bangladesh jumped 118 per cent to well above quarter a million last year. It gave the mobile market the one-third size of fixed telephone network of Bangladesh Telegraph & Telephone Board (BTTB). Technology-wise, CDMA grew 112 per cent and GSM grew 155 per cent in the year 2000.

Continuously widening "Access Divide" in the mobile market has, however, been diminishing this success story. Mobile subscribers capable of calling to BTTB’s network grew only 15 per cent while the subscribers without such access recorded 359 per cent growth.

Altogether 160,000 customers of GrameenPhone have been isolated from the 616,000 fixed telephone users of the BTTB. Remaining 19,000 "mobile only" users of PBTL, TMIB and Sheba can only receive calls from BTTB’s network. Therefore, 64 per cent of the country’s total mobile users are barred from calling the mainstream telecom network.

The mobile operators’ investment plan to expand BTTB’s infrastructure is yet to be approved by the government. The operators’ submission for reducing the region’s highest tariff (65 per cent) on importing handsets is long pending with the National Board of Revenue (NBR).

Ignoring such adversities, GrameenPhone has been consistently maintaining its dominance with 192,000 customers. Achieving 220 per cent growth by the year-end has outstripped GrameenPhone’s own prediction of 125 per cent growth in 2000. The operator prefers remaining conservative by sticking to 125 per cent growth projection in this year as well. ( Source – Financial Express )

Table XXIV. BANGLADESH MOBILE MARKET IN 2000

Source :www.emc-database.com

*Including 49,000 Prepaid ( 600 Percent Annual Growth )

Table XXV. Private Telecom Service Subscription & growth

Table XXVI. South Asia -Cellular Tariff in USD

Table XXVII. Waiting List for Fixed Line Telephone ( South Asia )

Table XXVIII. Start up cost of subscription for fixed line ( South Asia )

Table XXIX. Private Sector ( International ) participation in BTTB Telecom Projects

Legend – Abbreviations:

BOO refers to Build, Operate & Own. BLT refers to Build, Lease and Transfer while BOT refers to Build, Operate and Transfer.

Information Courtesy BTTB, Grameen Telecom 4, ITU : All above information are part of the - Government Of Bangladesh National Telecommunications facts

This Report is compiled by

Tanvir Chowdhury on Dec 1^st , 2000

Global Amitech ( NFB )

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