Page 82 - SAMENA Trends - January 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

been charging Rs1.50 per minute on voice Report, 2021 published by the International users in the country, 7.45 million users of
call inside its network and Rs2 per minute Telecommunication Union, over 90 percent fixed broadband (wired and wireless) and
while making calls to other networks in of households in Nepal have at least one 27.73 million mobile broadband users.
GSM prepaid tariff. It charges Rs1 on family member with a mobile phone. According to the Connectivity in the Least
SMS inside the Nepal Telecom network Moreover, 96 percent of the households Developed Countries Status Report 2021,
and Rs1.25 while sending messages in Nepal have a mobile telephone among a Nepali had to spend 2.6 percent of
to other operators. These charges are whom 97 percent are urban households their gross annual income to buy internet
exclusive of taxes. Ncell has been charging and 94 percent are rural households. As service in 2020, which puts Nepal behind
Rs1.99 while making voice calls within of mid-November, there were 41.55 million India, Sri Lanka and Pakistan in affordable
its network and other networks, and Rs1 voice telephone users in the country of digital access where the cost is less than 1
on SMS within its network and Rs1.27 which 40.73 million were mobile phone percent. Broadband services in developing
while sending messages to other telecom users, the management and information countries should not cost more than 2
networks. According to the Connectivity system report of the authority shows. percent of the gross national income per
in the Least Developed Countries Status There are a total 35.34 million broadband capita, as per the report.

BTRC Eases Submarine Guideline to Court Private Funds

the minister. The new guideline also removes the barrier of 100-
per cent foreign ownership to establish, maintain and operate
submarine cable systems and services here. "In case of foreign
investment," according to the amendments, "the entity shall
invest foreign currency directly according to its percentage of
ownership and shall not be allowed to take any loan from any
Bangladeshi lending firms." "After fulfilment of rollout obligation,
if loan is required for operational purpose/business expansion,
the entity can take maximum 20 per cent of its total loan from any
Bangladeshi banks." Earlier, the BTRC removed the clause that
allowed only two companies in the market. The previous clause
reads: "The Commission will issue maximum 02 (two) licenses
for Submarine Cable Systems and Services in Bangladesh under
State-owned Bangladesh Telecommunication Regulatory International Long-distance Telecommunication Policy-2010 and
Commission (BTRC) further amends the submarine cable guideline as per the terms and conditions of the guideline…" BTRC officials
to woo private as well as foreign investment. It eases the provision say the government wants to attract more local and foreign
of 'previous experience' with a submarine cable-operating investments in the sector in a bid to create an ecosystem for
license. The amended 'Regulatory and Licensing Guidelines competitive and high-quality internet in the 5G era. The country
for Invitation of Offers/Proposals for Issuing License to Build, might face bandwidth scarcity by 2024 when its demand would
Operate and Maintain Submarine Cable Systems and Services reach 6.0 terabyte per second (Tbps). Its appetite for bandwidth
in Bangladesh was issued on Monday. The BTRC stipulates that consumption has grown over the years and the outbreak of
any aspirant for a license need not have any previous experience coronavirus has enhanced the rate further, prompting the
in operating submarine cable. The amendment replaces "having government to go for alternative sources of bandwidth. According
considerable experience in submarine cable systems and services to BTRC data, the country's bandwidth usage jumped by 634 Gbps
for granting license" with "having considerable experience in to 1,826 Gbps in November 2020. Its demand was 1,192 Gbps in
telecommunication services for granting license to establish, December 2019. Of the bandwidth, the lone state-run Bangladesh
maintain and operate such system for use in Bangladesh". Post Submarine Cable Company Limited (BSCCL) is supplying around
and telecommunications minister Mustafa Jabbar told the FE that 85 per cent of the demand to users due to its cost efficiency and
the amendment was carried out to widen the area for prospective reliability. According to the amendment, the number of licenses
investments. "Setting up submarine cable company requires a lot will be decided by the government in order to ensure diversity,
of money, if we only keep focusing on experience, we may end fair competition, uninterrupted and efficient telecom services.
up finding nobody for new license." Mr. Jabbar says investors are Although there was a provision for two companies, the BSCCL is
not required to have all the experience; they can hire expertise. the core telecommunications service provider and international
Bangladesh is badly in need of private and foreign investment submarine cable operator of Bangladesh until now. It is also an IIG
in the sectors, including submarine cable operation, he adds. (International Internet Gateway). The BSCCL service represents
"We have only one state-owned company in submarine cable the long-haul communication between Bangladesh and the rest
systems and services, we need more in the 5G era," mentions of the world.

82 JANUARY 2022