Cap on bandwidth price demanded

Cap on the bandwidth prices in bulk-level has been demanded as the International Internet Gateway (IIG) operators are reducing price randomly in an unhealthy manner, mainly to continue uninterrupted license, reports BSS.
The IIG operators urged the telecom regulator to intervene in the market to set a benchmark price for different types of bandwidth to ensure discipline in the business.
Considering the aspects, the regulator - - Bangladesh Telecommunication Regulatory Commission (BTRC) -- has initiated a move regarding the issue as the end users are not getting any benefit due to the ill business competition of the IIGs rather it is creating instability in distributor level.
Sector’s people said taking the advantages of not having any guideline, the IIGs have involved with unhealthy competition of price cut to run their business. Due to the non-availability of minimum price, many companies
could not survive. Now per mega bit bandwidth in wholesale level is being sold at Tk 250.
Talking to the news agency, Sumon Ahmed Sabir, chief strategic officer of Fiber@Home, an IIG operator, said many operators are selling bandwidth at low price to capture market that is depriving customers from getting quality service. Fearing a longstanding negative impact in the sector, he said: “the IIGs have submitted a proposal to the regulator to set a minimum price for bandwidth”.
Sumon opined the pricing should be fixed on the basis of cost modeling.
Sources said seven IIGs earlier applied to the BTRC to stop unhealthy business in bandwidth market by setting a minimum price. The IIGs are One Asia Alliance Communication, Novocom, Level Three Career, Fiber@Home, BD Hub, Newtex Pacific and Global Fare Communication.
Later, in the last week, 22 IIG operators in a meeting reached a consensus and urged the regulator to set a minimum price.
They also requested the BTRC to formulate a guideline regarding pricing of bandwidth in IIG level, as the existing situation is affecting the Internet Service providers and internet users.
About the issue, Internet Service Providers Association of Bangladesh (ISPAB) M A Hakim also laid emphasis on fixation of a minimum price on the basis of cost modeling.
He, however, opined that if the pricing for Internet service providers and NTTN operators are not fixed, the problems would not be solved rather there would also be possibility of imbalance in the market.
The IIGs made proposal to set highest Taka 2,850 for 1-621 mbps bandwidth while Taka 1,336 for per mbps for over 10gbps bandwidth.
Now, 37 companies have IIG license, of which state-owned BTCL and Mango awarded license in 2008 and another 34 firms got license in 2012. But, many new license holders are yet to start their operations.

Cap on bandwidth price demanded

Cap on the bandwidth prices in bulk-level has been demanded as the International Internet Gateway (IIG) operators are reducing price randomly in an unhealthy manner, mainly to continue uninterrupted license, reports BSS. The IIG operators urged the telecom regulator to intervene in the market to set a benchmark price for different types of bandwidth to ensure discipline in the business. Considering the aspects, the regulator - - Bangladesh Telecommunication Regulatory Commission (BTRC) -- has initiated a move regarding the issue as the end users are not getting any benefit due to the ill business competition of the IIGs rather it is creating instability in distributor level. Sectors people said taking the advantages of not having any guideline, the IIGs have involved with unhealthy competition of price cut to run their business. Due to the non-availability of minimum price, many companies could not survive. Now per mega bit bandwidth in wholesale level is being sold at Tk 250. Talking to the news agency, Sumon Ahmed Sabir, chief strategic officer of Fiber@Home, an IIG operator, said many operators are selling bandwidth at low price to capture market that is depriving customers from getting quality service. Fearing a longstanding negative impact in the sector, he said: the IIGs have submitted a proposal to the regulator to set a minimum price for bandwidth. Sumon opined the pricing should be fixed on the basis of cost modeling. Sources said seven IIGs earlier applied to the BTRC to stop unhealthy business in bandwidth market by setting a minimum price. The IIGs are One Asia Alliance Communication, Novocom, Level Three Career, Fiber@Home, BD Hub, Newtex Pacific and Global Fare Communication. Later, in the last week, 22 IIG operators in a meeting reached a consensus and urged the regulator to set a minimum price. They also requested the BTRC to formulate a guideline regarding pricing of bandwidth in IIG level, as the existing situation is affecting the Internet Service providers and internet users. About the issue, Internet Service Providers Association of Bangladesh (ISPAB) M A Hakim also laid emphasis on fixation of a minimum price on the basis of cost modeling. He, however, opined that if the pricing for Internet service providers and NTTN operators are not fixed, the problems would not be solved rather there would also be possibility of imbalance in the market. The IIGs made proposal to set highest Taka 2,850 for 1-621 mbps bandwidth while Taka 1,336 for per mbps for over 10gbps bandwidth. Now, 37 companies have IIG license, of which state-owned BTCL and Mango awarded license in 2008 and another 34 firms got license in 2012. But, many new license holders are yet to start their operations.