Fixed line connection fees slashed by up to 50%

25 Jul 2006

Government-run telco Bangladesh Telegraph and Telephone Board (BTTB) has announced reductions to fixed line connection fees by 40% in Dhaka and Chittagong, and by 50% in other parts of the country, with effect from 1 August 2006. The move was prompted by increasing competition in the wireline market: ‘Some private land phone companies are now operating across the country, apart from Dhaka zone, and BTTB service is facing serious competition from them… Moves are on to allow private operators in Dhaka zone,’ explained a BTTB official. The Bangladesh Telecommunication Regulatory Commission has so far allocated 35 licences to 19 PSTN operators in four zones – northeast, southeast, northwest and southwest. The central zone accounts for around 60% of the total demand for fixed phones in the country. Currently, only 5.33% of the Dhaka population, estimated at 15 million, has a landline phone and pending demand with the state-run BTTB is estimated at up to a million. The private sector is expected to roll out at least two million fixed telephone lines in the next three to four years, according to an estimate of state-run research body Infrastructure Investment Facilitation Centre.

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