ICX Operators Stand Against Proposed Telecom Changes
The voice and SMS interconnection operators have voiced their opposition to a proposed telecommunications network and licensing structure designed to phase out their operations. They advocate for the continuation of the current voice-calling framework, emphasizing their crucial role in the progress of the nation’s telecommunications industry. The Association of ICX Operators of Bangladesh (AIOB) criticized the new proposal, stating it lacks innovation and risks reverting the sector to conditions that prevailed before the International Long Distance Telecommunication Services Policy of 2007.
Concerns Over Call Quality and Policy Implications
Interconnection exchange (ICX) operators, who facilitate connections for local and international voice calls, have pointed out that any issues with call quality stem from the shortcomings of mobile operators, rather than their own services. The proposed policy, they argue, disproportionately benefits mobile operators by diminishing the role of specialized firms that focus on specific telecommunications services. AIOB representatives contend that any alterations to the existing framework should be supported by clear justification, thorough research, and adequate preparation.
ICX Operators Defend Their Role in Telecommunications
AIOB leaders have criticized the portrayal of ICX operators as mere brokers, arguing that this narrative unfairly inflates costs for consumers. In reality, they serve as an oversight mechanism for regulatory bodies and the government, helping to monitor telecom operations and generate state revenue. For instance, an ICX earns only Tk0.04 for connecting calls between two local mobile operators, which are priced at Tk0.45 per minute. After the government takes a significant portion of this amount, the ICX operator is left with just Tk0.01 per call after covering all expenses.
Potential Revenue Losses from the New Policy
AIOB Treasurer Brig Gen Md Khurshid Alam expressed his worries that eliminating the Tk0.01 profit margin for ICX operators could lead to substantial revenue losses for the government, in addition to potentially diminishing service quality for consumers at higher costs. Mustafa Mahmud Hossain, CEO of Voicetel Ltd, warned that the proposed changes could empower the two largest mobile operators, creating a scenario similar to the internet industry during the Awami League administration.
Significant Contributions of the ICX Sector
Highlighting the ICX sector’s financial contributions, Ahmed Ur Rahman, head of ICX operations at Agni Systems, noted that the industry has contributed approximately Tk6,000 crore to the national treasury over the past 12 years. He urged regulators to investigate the issue of international machine-generated SMS, which are currently being routed through direct channels by telecom operators, resulting in an annual revenue loss of around Tk74 crore for the government.
Job Losses and Investment Risks
AIOB President (in charge) Brig Gen (retd) Mustafizur Rahman warned that phasing out ICX operations could result in a reduction of government revenue by Tk300 crore per year and the loss of nearly 700 skilled engineering jobs. Hasibur Rashid, director of Bangla ICX, along with M Nurul Alam, COO of Imam Network, called for the protection of recent investments exceeding Tk160 crore in new technology within the industry.
Government’s Plans for Policy Changes
The government is expected to announce the new network topology and licensing policy in June, aiming to simplify regulations and encourage investment. However, domestic owners of gateways, interconnections, and fiber infrastructure have expressed concerns that this policy may undermine the interests of local investors while further empowering mobile companies, primarily owned by foreign entities.
