operation/licensed to develop and operate telecom services. Out of them, one is in public sector – BTTB, the largest one having basic telecom services , transmission and international network; others are private operators licensed to provide to basic telephone services in rural areas and value added services all over the country .

 

Through the co-operation of the operators under the guidelines set by the Government the telecom infrastructure of the country is to be built up. For that short, mid and long term services and service areas are defined:

Short Term : In the short term perspective the operators will continue to consolidate & develop up to the year 2000 in their respective fields for which they have licenses. BTTB will upgrade its trunking and transmission networds/links (both inland and overseas) to meet the increasing interconnection demands of its own & private operators. Besides, it will continue its expansion programmes in its areas to meet the growing and unmet demands for telephone lines. Furthermore , the Government reserves the right to license additional operators if appropriate and if needed, take measure to open basic telecommunication services to the private sector operating entities.

Mid - Term: On the basis of the performance of the private operators in the short term period, more service areas are to be opened up for private participation in basic telephone and long distance networks after the year 2000 or earlier.

Long - Term: As a long term strategy, development of telecom infrastructure and services in all the fields are to be opened up for private participation after the year 2010 and if needed , this can be opened up earlier than the year 2010.

The above time frame and targets, however, are to be reviewed by the Government at the end of year 2000.

4.1.3 Information Infrastructure: An integrated and reliable transmission network that covers the entire country and is capable of providing voice, video, data and imaging services will be ensured. The network may include fiber optic, radio and also satellite systems. The aim is to create the National Information Infrastructure (NII) and integrate it through the Information Super Highway to the Global Information Infrastructure ( GII ) thereby creating the potential to enter the global market for information processing.

4.1.4 International Network: Continuous efforts will be made to expand the network for international traffic through terrestrial radio, submarine cables and satellite systems. Reliance on more than one network and system will be encouraged to ensure fall-back alternative facilities in times of need. More active and expanded participation in programmes/activities organized or sponsored by the regional and international telecommunications agencies and bodies is to be pursued to uphold the interest of the country in the international fora.

4.1.5 New Services: New services¹ that are already developed or will be developed in future shall continue to be introduced in the country on the basis on the basis of market surveys and users’ needs and satisfaction.

4.1.6 Master Plan: A Master Plan will be prepared for expansion and development of telecommunication services in the country so that Bangladesh can reap full benefits of information technology revolution.

 

4.2 THE REGULATORY FRAMEWORK:

4.2.1 Commission by Act: A seperate autonomous Regulatory Commission under the Ministry of Post & Telecommunications will be established by an Act of Parliament and it may consist of a Chairman and a number of Members² to be appointed by the Government No members of the Commission will be from among the serving employees or directors of any telecommunication operator. Part time members may also be appointed as and when deemed necessary.

4.2.2 Features of the Commission:

Independence: The Regulatory Commission will be an autonomous commission which will retain its independence. The head of the Commission as well as the Members will be appointed for a fixed period of time.

Transparency: The Commission will be transparent in all its activities to the operators, interested parties engaged in telecommunications, Government agencies and the people in general. It will ensure equity & fair -play by providing a level playing field for all operators.

 

a number of value -added new services like GSM.gmpcs. Video Conferencing . GMDSS Telecommunication are already in service or in the process of being introduced.

the members of the Regulatory Commission may be appointed from amongst persons in and out- side the Government service including retired officers with the back-ground of telecommunications , finance, law and management .

Adaptability : Telecommunication technology is fast advancing and continuously changing. The Commission will have the ability and obligation to adapt to the changing environment in the sector .

Objectivity : The activities of the Commission will be objective in nature. In the formulation of regulations, guidelines etc the objective should be compatible to the role as a catalyst making the country a member of the global telecommunication family .

4.2.3 Functions of Commission : The Primary Functions of the Regulatory Commission are (i) issue operator licenses, (ii) regulation of tariffs, (iii) setting of technical standards, (iv) monitoring of service quality and adherence to rules and regulations by the operators, (v) management of radio frequency spectrum, (vi) preparation of national numbering scheme, (vii) assistance in preparing routing, charging and transmission plans, (viii) guidance for interconnection between the operators and revenue sharing for inter-operator traffic, (ix) stimulation for investment to facilitate introduction of new services, (x) representation of the country in the international telecommunication bodies¹, (xi) setting standards & qualifications for different categories of personnel of all operators based on their services and (xii) any other functions and activities as may be considered necessary by the Government .

 

4.2.4 Spectrum Management and Monitoring : The frequency spectrum, considered to be a valuable resource will be managed in an orderly and equitable manner and will be used as the basis for creation of complete radio communication network systems. The Commission will resolve the problem of over- lapping frequency at shared borders of the operators . It will ensure the assignment of frequency bands with the neighbouring countries according to the Table of Frequency given by ITU . It will also set up Frequency Monitoring Cell and will impose penalty in case of infringement upon assigned frequencies or unauthorized use of frequencies.

4.2.5 Licensing Procedure: A comprehensive licensing system will be developed to ensure its orderly , efficient and effective application. The issuing of licenses to respondents who are qualified according to the set criteria will be carried out through a bidding or an open tender or any other procedure set by the Government .

1. these include among others the International Telecommunications Union (ITU) . Asia Pacific Telecommunity (APT) . Commonwealth Telecom Bureau (CTB). Telecommunications units of OIC and SAARC etc.

4.2.6 Budget: The budgetary resources for the Regulatory Commission itself will be generated

from the license fees including the fees for use of the frequency spectrum, duties, royalties etc. Other sources like charges for specific services, fees, contributions and parliamentary appropriations may supplement the financial resources.

4.2.7 Staff of Commission : The Regulatory Commission will be manned by

qualified and competent personnel. It will have full freedom in matters of staff requirement and salaries, subject to the provisions in the budget .

4.2.8 Annual Report: The Commission will present its Annual Report to the

Government, as may be specified in the Act.

4.2.9 Inter- connection and Revenue Sharing : Understanding that revenue

sharing agreements vary widely in different countries and are never easy to formulate the Government takes the position that revenue sharing agreements should be negotiated between carriers and that they will generally be cost based. However, in the event for a dispute between any parties which are unable to negotiate successfully, the Commission shall consider dispute through hearing and the decisions of the commission shall be final though they may be appealed to Government .

4.2.10 Representing the Country: The Commission may attend the meetings

of the regional and international telecommunications bodies, dealing with the questions of general sectoral policy and participate in framing of international regulations in this field.

4.2.11 Protection of Users’ Interest: The Commission will be responsible for

the supervision of the telecommunications services to ensure that the interests of the users are protected and balanced .It will also ensure that the interests of the nation are given priority over other interests. The Commission will define the mechanism in which the views of the operators and the users of the telecommunications services could be periodically obtained. The Commission may hold public hearings on important issues of public interest.

4.2.12 Enforcement Mechanism: The Regulatory Commission will be vested

with definite duties and power to implement the policy decisions and ensure compliance of set rules and procedures. The Commission will have legal authority to ensure and enforce regulatory measures, keeping in view the national security public order and defence of the country. It will monitor implementation of development programmes of and ensure operation of telecommunication services by the operators in accordance with the provisions of the concerned license. The Commission will have authority to take punitive actions ranging from imposing fine to closure of services against the defaulting operators.

 

4.2.13 Network Management : Under the Commission a network management

cell will be created to overview the harmonization and optimization of the networks available and to be developed in future. It will set network standards, numbering /code plans and prepare network master -plan etc. This is imperative in an inter- operator environment .

4.2.14 Service Standard : The Commission will set standards for different

services within the principles and standards set by various Regional and International Telecommunication bodies. In this connection, the commission will set standards, qualifications and number of personnel in each category for all operators based on their services. These standards will be binding on all operators. Failure to meet these standards will attract penal action by the Commission .

4.3 TARIFFS AND CHARGES:

4.3.1 Tariff Structure: The tariff structure will apply equally to public and

private operators and will be set by the Telecommunication Regulatory Commission with prior approval of Government . It will take into account the interests of various parties, benefit to the users and reasonable returns to the operators based on the principle of equity and the market factors and will set the maximum rates and tariffs for all the services on the principle of fair- play . Where data is available, the tariffs will , in principle, be cost-based, subject to revisions from time to time in relation to the changes in the cost of equipment, development in technology, increase in the use of services and socio-economic considerations such as affordibility of users, consumer price index, extent of rural service requirement and any other requirements for all telecommunications services as may be notified by the Government or the commission from time to time . The costs of the services are also to be reasonable and comparable with those charged in the neighbouring countries and international market. However, the operators may make submissions to the Commission who will notify the tariff revisions, if any, after obtaining approval of the Government . The Government may also de-regulate tariffs for any service to allow the operators to set tariffs by themselves.

4.3.2 Re-sale of Services: In the case of re-sale¹ of services by individuals , permission will be given to add service charges which will be required to be displayed to the users at the point of service. The Commission², however, will retain the right to fix the maximum limits to any such service charges to protect the interest of the users.

4.3.3 Commission’s Fees: The services rendered by the Commission shall be charged to the operators and other parties in accordance with the schedule published by the commission .

 

4.3.4 Charges for Frequency Spectrum: The use of frequency spectrum by the operators may be put to charges on initial and recurring basis except for frequency band (s) which are open for general use.

 

4.4 COMPETITIVE FRAMEWORK:

4.4.1 Liberalization : In accordance with the overall national policy, the liberalization of the telecommunications sector will continue. The approach is to encourage a sound and orderly competition between the private and public sector as well as among the various private sector operators themselves to achieve efficient and quality service concentrating initially on the value-added services. However, the Government retains the sole authority to determine the number of competitors that are economically viable for certain services. The strategy is to provide equal and rational opportunities to all competitors .

 

4.4.2 International Services: The international services will, however , be operated exclusively by the Government through Bangladesh. Telegraph and Telephone Board or its lawful successor unless other- wise decided by the Government .

1 this refers to the services provided by a person or a group of persons forming very small enterprise to extend telecommunications services like overseas telephone calls, telex, telefax services at a nominal additional service charges under license from the service provider .

2.this refers to the Regulatory Commission to set up by an Act of Parliament : details are explained in the previous paragraphs .

4.4.3 Service Obligation : Universal service ogligations for basic telephone service will be included in licenses of all network operators Inter–connections between networks, forming part of the public network, will be mandated in accordance with the guidelines to be issued by the commission .

4.5 RESTRUCTURING OF BTTB:

4.5.1 Role of BTTB : Bangladesh Telegraph and Telephone Board (BTTB) has , until recently the only entity having the sole authority to operate and regulate the public telecommunications services its regulatory functions have been taken over by the Ministry of post & Telecommunications as an interim measure and will ultimately be vested in the Telecommunications Regulatory Commission . BTTB will continue for the time being, to remain a Government owned telecommunications service provider.

4.5.2 Adequate Authority : In order to make BTTB function

effectively and commercially in competiton with other private sector operators in the liberalized environment, the requisite administrative and adequate financial & commercial authorities shall be delegated to BTTB . In this regard the BTTB ordinance of 1979 is to be amended and such other directives, as may from time to time be necessary within the purview of maximum autonomy, will be issued.

4.5.3 Non- core Functions: The non-core functions¹ within BTTB

will be gradually divested and could be contracted out to qualified private parties as relevant know-how and expertise have developed in recent years.

4.5.4 Corporate Restructuring : The Government anticipates a two phase restructuring of BTTB phase-1 would be a corporatization process in which it becomes a limited company (e.g. Bangladesh Telecommunication company Ltd. ) instead of being a Deptt. of the Government . In this mode it will have full responsibility for managing its assets and operations and being fully accountable for its own profitability . At this point Government will continue to own between 51% and 100% of the shares .Phase-2 would be the full privatization of BTTB at which point the Government will have sold all of its outstanding shares to the private sector. The possibility of engaging an internationally reputed foreign telephone company as strategic /management parterner of BTTB will also be explored.

1 traditionally since the inception of post .Telegraph and Telephone Department in the British –India period, a member of auxiliary functions like printing, building , construction, under-ground cable laving, billing directory, subscriber premises connection. manufacturing etc, related to telecommunications were performed by the BTTB itself as there were not much know -how or the required expertise on those functions outside.

4.5.5 Capital Mobilization: Throughout the corporate restructuring period, with the approval of the Government BTTB will be authorized to raise necessary capitals for the expansion of the existing and introduction of new services through bank loans, issue of telecommunication bonds, share flotation, suppliers, credits and BOO/BLT/BOT¹ schemes etc. It will be authorized to enter into joint venture contracts with any other entities with the approval of the Government .

4.5.6 Staff Standard: BTTB will plan and prepare the staff standard and administer its own staff structure. It will also adopt procedures and methods to run on full commercial terms and optimize the value for money.

4.5.7 Quality of Service: Maintenance and operation are to be such as to give adequate, efficient and satisfactory services in observance of the principles of economy and by maintaining standards set by the commission .

4.5 PRIVATE SECTOR OPERATORS: