Strategies for Developing Bangladesh Information Infrastructure
Aziz Ahmad, Director, R&D and Service Provider solutions, ThruPoint, auahmad@aol.com
Access to the Internet is creating a new distinction in society. Those who
have access to the Internet have access to all kinds of information. It puts
them in an advantageous position in society, vis-à-vis others who do not have
such access. Internet access is built upon the basic telecom network. While the
telecom infrastructure in advanced countries is well developed, allowing them to
move rapidly towards universal telecom and Internet access, the infrastructure
in Bangladesh is very poor and inadequate. Like other developing countries,
Bangladesh is facing the question of how best to develop its telecommunications
and information infrastructure to provide access to "advanced"
telecommunications and information services in order to remain competitive in
the world of information technology.
There is a tremendous amount of potential for growth in areas like fixed
wireless networks, optical fiber networks, cable networks, Internet telephony,
etc. (to name a few) in Bangladesh. This paper addresses the concerns and
prospects of growth in telecommunication infrastructure in Bangladesh. We will
also discuss strategy options for developing Bangladesh’s information
infrastructure.
An in-depth analysis of telecommunication infrastructure development
possibilities, financing methods and risk assessment is beyond the scope of this
paper. My modest goal includes, but is not limited to, providing an overview of
present status of telecommunication infrastructure in Bangladesh, future targets
and methods of attracting finance.
I. Present Status Of Telecommunication Infrastructure In Bangladesh
- Telephone Lines: There were three telephone main lines per 1,000
people, with $634 revenue per line, costing customers about 4 cents for 3
minutes in 1997. The average subscriber spends 81 outgoing minutes, with
undetermined price per minute in 1997. In 1999, there were over 4 million
telephone subscribers (120+ million populations).
- Mobile Phones: According to the World Fact Book, there were 0
mobile phones, fax machines, and personal computers per 1,000 people in
1997. That was the dawn of the cellular age in Bangladesh.
- Cable and Satellite Links: A small Honolulu-based telecom and
international satellite Internet services provider (SISP) called USAT is
offering high speed satellite Internet services, marketed as SkyTiger.net,
to businesses throughout Asia. The company is now uplinking high speed
SkyTiger.net IP data services to all the Asian countries. They are currently
operating links in Bangladesh. Where permitted, USAT is deploying 2-way
asymmetric, very small aperture terminals (VSAT) called Satellite Network
Access Points or SNAPs. There are no cables going into Bangladesh, but there
are three satellites.
- Wide Area Networking: Telecom networks in Bangladesh are being
modernized. Data Networks (LAN, MAN, WAN - Local, Metropolitan, Wide Area
Network) are emerging. Digital switches capable of services such as ISDN are
being installed all over the country. Various public/private organizations
have or are in the process of installing LAN in their branches. When private
providers’ modern infrastructure becomes completely functional,
organizations will be able to interconnect their sites. Various private
organizations are in need of such interconnectivity.
II. Major Market Players In Telecommunication Sectors In Bangladesh
Bangladesh Telephone and Telegraph Board (BTTB) telecommunications
company is now offering internet connectivity at lower rates than that being
offered by independent ISPs. BTTB however, is also the regulator and the
provider of telecom services.
Telekom Malaysia provides telecommunications services to 4.2 million
subscribers in the country. The company's operations include TelCo, its core
telecommunications business, and Telekom Multimedia, which develops
Internet-related new media businesses. As a partner in Malaysia's Industrial
Master Plan, Telekom Malaysia is a prime mover for the growth of the country's
information superhighway, and its extensive R&D infrastructure will continue
to secure Malaysia's standing as a provider of Bangladesh's telecommunications
need.
GrameenPhone is one of the largest cellular providers, with over
50,000 mobile telephone subscribers as of the last week of September 1999.
GrameenPhone has active roaming agreements with network operators in the
following countries: Denmark, Hong Kong, India, Norway, Singapore, Sweden,
Switzerland, Taiwan, and the United Kingdom.
TM Int'l (Bangladesh) Ltd started offering cellular service in August
1997 using GSM900 protocol.
Sheba Telecom (PVT) Ltd — Mobile 2000 started to offer its cellular
service from September 1998 with GSM900 protocol.
III. Future Needs And Challenges
The Bangladesh government should assign a few major roles for itself in
developing the National telecom infrastructure. These roles should include:
- Promote private sector investment, through tax and regulatory policies
that encourage innovation and promote long-term investment, as well as wise
procurement of services.
- Ensure that information resources are available to as many citizens as
possible at affordable prices.
- Act as a catalyst to promote technological innovation and new
applications. Commit important government research programs and grants to
help the private sector develop and demonstrate technologies needed for the
national information infrastructure.
- Provide access to government information and improve government
procurement.
IV. Market Drivers For Advanced Telecom Infrastructure In Bangladesh
Building telecom infrastructure should be our national priority because of
the following major drivers:
- Explosive growth of Internet services: Internet services saw an
exponential growth in the advanced world in recent years. In
"business-friendly" metropolises of third world like Kualalampur,
Jakarta, Bangkok, and Bombay, there is tremendous growth in internet
services. This trend is also likely to dominate the IT scene in Bangladesh
as common people all over the world are increasingly becoming aware about
the value of information that can help them in career choices, business
decisions, personal accomplishments, etc.
- E-commerce: The western world is experiencing a tremendous growth
in electronic commerce services. In the third world countries too,
e-commerce is taking its place. Therefore, this must be identified as
potential growth area and we need supporting telecommunication
infrastructure to promote this.
Distance learning: Distance learning is considered to be extremely helpful
for the people who are interested in obtaining university training and/or
professional training while doing some other full-time job. As a career
choice, the young people of third world countries are becoming increasingly
diversified. They understand the need to stay updated and therefore distance
learning can be an efficient tool to promote their goals.
- Telemedicine: Telemedicine is a method of health care delivery
where a health-related case is analyzed, negotiated and service is delivered
over the internet. In Bangalore, medical graduates are becoming long
distance secretaries for American doctors. It has become a good way for
young medical professionals to gain initial exposure to their field while
earning a good, respectable salary.
- Offshore Software Development: Too many companies in the US and
Europe are interested in outsourcing some of their software development
activities in regions of the world where they can enjoy a cheaper production
cost. Infosys and Satyam Computers, two Indian IT firms (both recently
listed in NASDAQ), have done many consulting jobs for multiple western
companies.
- Need for Global IT (Information Technology) Talents: Many western
companies are looking for talented IT professionals who are always in short
supply in western countries because of the very high cost of education in
western countries. The IT professionals from the third world have already
made a good reputation in West. Therefore this is a window of opportunity
for third world countries to educate their children in IT related fields
like computer science and engineering, electrical and electronics
engineering, and management so that they can take advantage of the global
market and earn the much needed foreign currency for Bangladesh.
V. General Philosophy For Infrastructure Development
- Promote competition and investment by private firms.
- Ensure access to advanced services in rural and high-cost areas.
- Ensure access to advanced services for schools and libraries.
- Provide and promote education of what telecommunications and information
services can do and how to use them.
VI. An Example Of Next Generation Bangladesh Telecom Infrastructure
Figure: Next Generation Telecom Architecture
The characteristics of the Bangladesh telecom’s proposed architecture
consist of the following model:
- Access Networks: Access provides connectivity from the customer
premises to BTTB core network. Access may be provided through Packet
switches, fixed wireless, Cable facilities and switched access scenarios.
- Core Networks: Core/Backbone technology provides SONET/WDM/ DWDM/ATM/IP
based, highly reliable, highly available, low cost, high capacity and
scalable long haul connectivity between edge network. The backbone network
will be shared for voice and data. The core network will not provide
features/services to end customers, nor will it interface with intelligence
network.
- Edge Networks: Edge networks will interface with customers via the
access technology and with other networks via core technology. Edge devices
will target specific traffic (such as, IP, ATM, Frame Relay and Wireless)
allowing fast time to market for targeted customers.
- Telephony Call Control: Telephony services will be supported across
a packet based Multiservice network using several options for establishing
the voice path including IP, SVCs or VP PVCs. The packet based architecture
for telephony services may be based on the MGCP/H.323/SIP architecture.
VII. Attracting Private Funding In Infrastructure Projects In Advanced World
- Allowance to Increase Price: In the American states of Tennessee,
Texas and Vermont, where private companies did help build telecommunication
infrastructure, regulated earnings or depreciation expenses are allowed to
rise or remain high in exchange for specific network improvements. In
Vermont, the telephone companies had to request rate increases to compensate
for the increased investment. The main problem with this approach is that
investments in infrastructure are not directly linked to increases in demand
for new services. The result may be, and in some cases have been, increases
in costs to the public that do not yet need the services.
- Subsidies: Offering subsidies and tax incentives for companies to
provide advanced services is a very effective idea for encouraging them to
build infrastructure in rural and high-cost areas.
- Offering Small Loans for Small Projects: In America, Rural
Utilities Service (formerly the Rural Electrification Administration) loan
program, which allows rural telephone companies to borrow money at favorable
rates to install technologies in rural areas, has become a success in many
communities. This is being used by East Ottertail Telephone Company to
install fiber optic cable to the home in areas with population densities of
less than two per square mile.
- Anchor Tenant: Infrastructure development plans of Nebraska and
North Carolina offered long-term leases to the telephone companies. This
is often called an "anchor-tenant" arrangement and it helped
assure telephone companies that it is in their best business interest to
cut a deal with the state. For example, because of a meeting with
several state telephone companies, Nebraska's Division of Communication
agreed to procure frame-relay (high data rate) services at a wholesale
price from the companies that are involved in infrastructure building
process.
- Long-Term Agreements Between Government And The Private Sectors
- The infrastructure that is upgraded is owned by the private companies,
and any capacity not committed to the government could be sold to other
customers. Thus, the government will be able to leverage their
infrastructure investment.
- The presence of an advanced telecommunications infrastructure can
serve as an economic development tool to help Bangladesh attract foreign
investments.
VIII. Conclusion
In this report, we have discussed the present status of telecommunication
industry in Bangladesh and the targeted architecture for the next generation
telecom infrastructure. We also thrashed out the technological and
infrastructure goals of Bangladesh. In addition, we discussed some strategies
for attracting finance for the expansion in this sector.
Some examples from advanced and developing countries are considered in order
to illustrate the innovative strategies that are being used for
telecommunication infrastructure expansion. An open investment environment,
market orientation, transparency in information, rule of law and democratic
competitive business environments are identified as the basic preconditions for
such growth. People are gradually becoming informed about the value of
information and are understanding the fact that timely access to the right
information slants the balance of market information in their favor. As
self-employment and market orientation is increasing among people, information
is playing an even greater and more important role in their day to day life.
Therefore, governments of developing countries in general, and Bangladesh in
particular, have to address this issue of increased basic telecommunication
connectivity to keep its population in the fast track of economy. We believe the
strategies and policies about financial planning of telecommunication
infrastructure projects, technological choice, and social, political, legal and
cultural agenda which are mentioned in this survey, might help achieve our
goals.
About the Author
Aziz Ahmad has more than 12 years of experience as a next generation telecom
technology expert and VOIP architect for the Service provider market. As
ThruPoint’s Director, R&D and Service Provider solutions, Mr. Ahmad is
responsible for service developments focus on Voice/Data convergence, and
broadband technologies. He manages a multimillion-dollar ThruPoint research lab
located in New York City, Washington DC and the United Kingdom. Mr. Ahmad is a
guest speaker in the telecom seminar, such as InterOp, ATM year and Next
Generation Networks (NGN) held in the US and throughout the world, currently, He
is a working member of International Softswitch Consortium where he contributes
in designing the packet based voice networks.
Mr. Ahmad’s prior experiences comprise working at AT&T local services
where he managed the development of network plans for using SONET/ATM/IP
technology in their Network and Services offerings. He has extensive experience
in developing and rolling out new services from concept to revenue generation
stage. Mr. Ahmad directed AT&T Local Services team to NGI (Next Generation
Internet) Consortium, consisting of MIT, AT&T Research, Ascend
Communications, JDS Fitel and Cabletron, to research, develop and demonstrate
the next generation broadband access Network based on IP, ATM and Multi
Wavelength technology.
Before joining AT&T local services, Mr. Ahmad was at Bankers Trust, where
he was responsible for designing the bank's Local and Wide Area Networks.
Mr. Ahmad has a B.S. and M.S. in electrical engineering from The City College
of New York of CUNY and is currently working on his doctoral degree at
Polytechnic University, New York. Mr. Ahmad is also an adjunct assistant
professor at Pace University where he teaches graduate courses in converging
technologies. For further information please contact Mr. Ahmad at auahmad@aol.com.
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