Mobile call rates

GP costliest among all operators

Grameenphone takes full advantage of backdated telecom policy, say experts

Grameenphone (GP), the country’s biggest mobile operator, is charging the highest voice call rates in its off-net and on-net call tariff structures, taking full advantage of the government’s backdated telecom policy, sources said. They pointed out that this was making the sector vulnerable.

To ensure a level playing field among the competitors in the telecom sector, the Bangladesh Telecommuni-cation Regulatory Commission (BTRC) has decided to minimise this gap, as the major operators are taking full advantage of it.

The terms ‘on-net’ and ‘off-net’ are used to describe types of calls or messages. ‘On-net' is used when one’s call or message originates on one’s home operator's network and terminates to another mobile number that resides with one’s operator. ‘Off-net’ applies when the call or message is made on a different network, e.g. whilst one is roaming, or if one is using one’s home network and makes a call or sends a message to a number that resides with a different network provider.

“We have evidence that a big operator charges the highest call rate among the operators though they have the biggest customer base, which they can utilise to make the call charges low. We are again sending a proposal to restructure off-net and on-net charges to ensure a level playing field in the market,” Dr Shahjahan Mahmood, the chairman of the regulator, recently told The Independent.

“As a commission, we should construct the market for all and make it competitive. Keeping this in mind, we will take decisions in this respect,” he promised.

The post and telecommunications ministry recently sent back a BTRC proposal that recommended an increase in off-net call prices and a decrease in off-net call prices, instructing it to analyse it further before taking any decision. The commission is working on the issue right now.    

BTRC sources said the average off-net (GP to other operators) call price is Tk. 1.30 per minute. The GP-to-GP on-net call charge is Tk. 0.45 per minute. The state-owned company TeleTalk charges the lowest price for its customers—Tk. 0.80 for each minute of off-net calls—and for on-net calls, it charges Tk. 0.35. The second largest operator—Robi Axiata—charges Tk. 0.90 for each off-net call and Tk. 0.39 for each on-net call, while Banglalink (BL) takes Tk. 0.90 per minute as off-net call charge and Tk. 0.39 as on-net call charge. AirTel, which recently merged with Robi, used to take Tk. 0.80 to Tk. 0.90 per minute for each off-net call charge and

Tk. 0.35 for each on-net call. Marufa Khanam, a teacher of Dhaka City College, told The Independent: “I have been using a GP SIM for the past few years as its network is good, compared to others. That does not mean GP should impose the highest charges. I see that they sometimes charge even Tk. 2 for an off-net call. I think the call charges of GP should be reasonable.”

Akbar Hossain, who resides in Hatirpul area and uses a Robi SIM, said the call charges should be clear and transparent. “We sometimes get the offer of some package or the other, but when we use it, we don’t derive the benefits mentioned.”

In his reply, GP spokesperson Talat Kamal said: “GP’s call rate remains within the tariff circuit stipulated by the BTRC. Average prices can vary, depending on the bundle offer selected by the customer.”

Industry insiders said GP gets 75 per cent from each on-net and only 25 per cent from each off-net call, while Robi gets 60 per cent from each on-net and 40 per cent from each off-net call. Banglalink gets 55 per cent from each on-net call and 45 per cent from each off-net call, while TeleTalk gets only 20 per cent from each on-net call and 80 per cent from each off-net call generated by their customers. GP accounts for 45 per cent of the market share whilst all the other operators have a 55 per cent market share. This makes it costly for other operators to make off-net calls. As a result, the customers of the major operators are increasing, but those of the other operators are not rising.

According to the BTRC website, as on June 2017, the country had 135.982 million mobile subscribers. Among them, GP alone had 61.579 million, Robi Axiata Limited 39.570 million, Banglalink 31.572 million and TeleTalk 3.260 million subscribers.

A TeleTalk official said: “If you compare this with April 2017, the state-owned operator had 3.831 million customers, which came down to 3.260 million in June 2017. In April 2017, GP had 60.406 million customers, and Robi and AirTel had 37.529 million customers. By June 2017, GP’s customers had risen to 61.579 million and Robi’s to 36.570 million. It is clear, therefore, that TeleTalk is not only losing customers, but also losing revenue. On the other hand, the cost of each call of TeleTalk is the highest among the mobile operators.”

In the 2016–17 fiscal year, TeleTalk’s revenue shrank to Tk. 710 crore compare to the 2015–16 financial year, when it was Tk. 986 crore. In the past one year, the state-owned company had to block 100,00 SIMs as these were being used for illegal call terminations.

A Banglalink official claimed that it was a victim of the big operators’ monopoly. “If you see the figures, on 30 June 2017, the company was able to slightly increase its customer base to 31.572 million from 31.349 million, as on 30 April 2017. But the costs of operation increased tremendously,” he added.

The website of VEON, the parent company of Banglalink, showed that the operator earned Tk. 1,195 crore in April–June 2017.

“We see that only one or two are making huge amounts of money while the rest are showing huge negatives in revenue,” the Banglalink official complained.

GP—which enjoys the maximum revenue among mobile phone subscribers—posted the highest profits of Tk. 1,448.16 crore in the period from January to June 2017. For the same period in 2016, the profit was Tk. 1,088.15 crore.

Under the government’s rules, the minimum on-net floor price is Tk. 0.35 and the off-net price is Tk. 0.60, meaning that there is a considerable gap. The major operator takes full advantage of this. If the gap was within Tk. 0.10, however, the call charges would be reduced, as the off-net cost will be lower.

Related News:

Grameenphone reluctant to provide MNP services to subscribers (12-06-2015)

DRU accuses GP of ‘cheating’ (23-06-2015)

GP seeks until Tuesday to fix problem (05-07-2015)

VIPs’ SIM cards cloned (17-09-2015)

BTRC to start auditing GP on October 20 (07-10-2015)

GP under renewed fire from telecoms minister (20-10-2015)

GP deprives railways of Tk 81cr a year: CAG (05-01-2016)

BTRC seeks explanation from GP, ADN, Agni (04-04-2016)

Five GP staff among 11 arrested over SIM cloning (20-04-2016)

GP denies, CID remains firm (21-04-2016)

Grameenphone ‘Go Broadband’ illegal (31-05-16)

BTRC cancels GP-Sonali deal (24-06-16)

BTRC brings allegation against audit firm (28-07-16)

GP’s illegal business (18-06-2015)

GP ghost bills (28-06-2015)

NBR seeks bank statements of Grammeenphone (04-08-2015)

Telcos ride on fake ID cards (20-09-2015)

Ministers vent spleen on GP service  (15-10-2015)

GP under ACC probe (27-11-2015)

BTRC orders GP not to hinder audit process (11-02-2016)

GP clarification (05-04-2016)

GP, ADN, Agni submit explanation (20-04-2016)

BTRC seeks explanation from GP, ADN, Agni again (30-04-2016)

GP, Airtel to be fine (10-06-16)

BTRC issues show cause notice on GP (14-07-16)

BTRC fines GP TK 30cr (31-10-16)

GP sponsorships breach rules: Telenor (15-12-16)

GP has to pay Tk 30cr fine, says BTRC chief (27-12-17)

GP gains, others lose revenue (24-01-17)

BTRC rejects GP plea for revising Tk 30cr fine (26-01-17)

BTRC directs GP to deposit fine TK 30cr in next 10 days (30-01-17)

GP fined Tk 2.5 lakh for false ad (14-02-17)

Auditing of GP BTRC extends deadline for third time (21-03-17)

22 GP officials sued over fraud in Ctg (30-03-17)

BTRC fails to inform lawyer about steps taken (19-04-17)

Data push GP revenue up (24-04-17)

 

Mobile call rates

GP costliest among all operators

Grameenphone takes full advantage of backdated telecom policy, say experts

Grameenphone (GP), the countrys biggest mobile operator, is charging the highest voice call rates in its off-net and on-net call tariff structures, taking full advantage of the governments backdated telecom policy, sources said. They pointed out that this was making the sector vulnerable. To ensure a level playing field among the competitors in the telecom sector, the Bangladesh Telecommuni-cation Regulatory Commission (BTRC) has decided to minimise this gap, as the major operators are taking full advantage of it. The terms on-net and off-net are used to describe types of calls or messages. On-net is used when ones call or message originates on ones home operators network and terminates to another mobile number that resides with ones operator. Off-net applies when the call or message is made on a different network, e.g. whilst one is roaming, or if one is using ones home network and makes a call or sends a message to a number that resides with a different network provider. We have evidence that a big operator charges the highest call rate among the operators though they have the biggest customer base, which they can utilise to make the call charges low. We are again sending a proposal to restructure off-net and on-net charges to ensure a level playing field in the market, Dr Shahjahan Mahmood, the chairman of the regulator, recently told The Independent. As a commission, we should construct the market for all and make it competitive. Keeping this in mind, we will take decisions in this respect, he promised. The post and telecommunications ministry recently sent back a BTRC proposal that recommended an increase in off-net call prices and a decrease in off-net call prices, instructing it to analyse it further before taking any decision. The commission is working on the issue right now. BTRC sources said the average off-net (GP to other operators) call price is Tk. 1.30 per minute. The GP-to-GP on-net call charge is Tk. 0.45 per minute. The state-owned company TeleTalk charges the lowest price for its customersTk. 0.80 for each minute of off-net callsand for on-net calls, it charges Tk. 0.35. The second largest operatorRobi Axiatacharges Tk. 0.90 for each off-net call and Tk. 0.39 for each on-net call, while Banglalink (BL) takes Tk. 0.90 per minute as off-net call charge and Tk. 0.39 as on-net call charge. AirTel, which recently merged with Robi, used to take Tk. 0.80 to Tk. 0.90 per minute for each off-net call charge and Tk. 0.35 for each on-net call. Marufa Khanam, a teacher of Dhaka City College, told The Independent: I have been using a GP SIM for the past few years as its network is good, compared to others. That does not mean GP should impose the highest charges. I see that they sometimes charge even Tk. 2 for an off-net call. I think the call charges of GP should be reasonable. Akbar Hossain, who resides in Hatirpul area and uses a Robi SIM, said the call charges should be clear and transparent. We sometimes get the offer of some package or the other, but when we use it, we dont derive the benefits mentioned. In his reply, GP spokesperson Talat Kamal said: GPs call rate remains within the tariff circuit stipulated by the BTRC. Average prices can vary, depending on the bundle offer selected by the customer. Industry insiders said GP gets 75 per cent from each on-net and only 25 per cent from each off-net call, while Robi gets 60 per cent from each on-net and 40 per cent from each off-net call. Banglalink gets 55 per cent from each on-net call and 45 per cent from each off-net call, while TeleTalk gets only 20 per cent from each on-net call and 80 per cent from each off-net call generated by their customers. GP accounts for 45 per cent of the market share whilst all the other operators have a 55 per cent market share. This makes it costly for other operators to make off-net calls. As a result, the customers of the major operators are increasing, but those of the other operators are not rising. According to the BTRC website, as on June 2017, the country had 135.982 million mobile subscribers. Among them, GP alone had 61.579 million, Robi Axiata Limited 39.570 million, Banglalink 31.572 million and TeleTalk 3.260 million subscribers. A TeleTalk official said: If you compare this with April 2017, the state-owned operator had 3.831 million customers, which came down to 3.260 million in June 2017. In April 2017, GP had 60.406 million customers, and Robi and AirTel had 37.529 million customers. By June 2017, GPs customers had risen to 61.579 million and Robis to 36.570 million. It is clear, therefore, that TeleTalk is not only losing customers, but also losing revenue. On the other hand, the cost of each call of TeleTalk is the highest among the mobile operators. In the 201617 fiscal year, TeleTalks revenue shrank to Tk. 710 crore compare to the 201516 financial year, when it was Tk. 986 crore. In the past one year, the state-owned company had to block 100,00 SIMs as these were being used for illegal call terminations. A Banglalink official claimed that it was a victim of the big operators monopoly. If you see the figures, on 30 June 2017, the company was able to slightly increase its customer base to 31.572 million from 31.349 million, as on 30 April 2017. But the costs of operation increased tremendously, he added. The website of VEON, the parent company of Banglalink, showed that the operator earned Tk. 1,195 crore in AprilJune 2017. We see that only one or two are making huge amounts of money while the rest are showing huge negatives in revenue, the Banglalink official complained. GPwhich enjoys the maximum revenue among mobile phone subscribersposted the highest profits of Tk. 1,448.16 crore in the period from January to June 2017. For the same period in 2016, the profit was Tk. 1,088.15 crore. Under the governments rules, the minimum on-net floor price is Tk. 0.35 and the off-net price is Tk. 0.60, meaning that there is a considerable gap. The major operator takes full advantage of this. If the gap was within Tk. 0.10, however, the call charges would be reduced, as the off-net cost will be lower. Related News: Grameenphone reluctant to provide MNP services to subscribers(12-06-2015) DRU accuses GP of cheating(23-06-2015) GP seeks until Tuesday to fix problem(05-07-2015) VIPs SIM cards cloned(17-09-2015) BTRC to start auditing GP on October 20(07-10-2015) GP under renewed fire from telecoms minister(20-10-2015) GP deprives railways of Tk 81cr a year: CAG(05-01-2016) BTRC seeks explanation from GP, ADN, Agni(04-04-2016) Five GP staff among 11 arrested over SIM cloning(20-04-2016) GP denies, CID remains firm(21-04-2016) Grameenphone Go Broadband illegal(31-05-16) BTRC cancels GP-Sonali deal(24-06-16) BTRC brings allegation against audit firm(28-07-16) GPs illegal business(18-06-2015) GP ghost bills(28-06-2015) NBR seeks bank statements of Grammeenphone(04-08-2015) Telcos ride on fake ID cards(20-09-2015) Ministers vent spleen on GP service(15-10-2015) GP under ACC probe(27-11-2015) BTRC orders GP not to hinder audit process(11-02-2016) GP clarification(05-04-2016) GP, ADN, Agni submit explanation(20-04-2016) BTRC seeks explanation from GP, ADN, Agni again(30-04-2016) GP, Airtel to be fine(10-06-16) BTRC issues show cause notice on GP(14-07-16) BTRC fines GP TK 30cr(31-10-16) GP sponsorships breach rules: Telenor(15-12-16) GP has to pay Tk 30cr fine, says BTRC chief(27-12-17) GP gains, others lose revenue(24-01-17) BTRC rejects GP plea for revising Tk 30cr fine(26-01-17) BTRC directs GP to deposit fine TK 30cr in next 10 days(30-01-17) GP fined Tk 2.5 lakh for false ad(14-02-17) Auditing of GP BTRC extends deadline for third time(21-03-17) 22 GP officials sued over fraud in Ctg(30-03-17) BTRC fails to inform lawyer about steps taken(19-04-17) Data push GP revenue up(24-04-17)