Professional Documents
Culture Documents
Legal Report Final S
Legal Report Final S
Legal Report Final S
Submitted by
Ahmed Sayed Jamal (0421035)
Md. Sultan Mahmud (0925021)
Md. Shawkat Hossain (0925044)
Submitted to
Dr. Tanvir A. Khan
School of Business
First and foremost, I would like to express my gratitude to Mr. Dr. Tanvir A.
Khan for his support for the preparation of this report. His eagerness helps
me in every step of the way and encouraged me to propel myself higher.
We need to take proper steps to remove illegal VOIP in the country and
make it more valuable for the users and country.
Hypothesis of the research
“Government and Private Sectors are equally responsible for the VOIP
corruption“
Methodology
Sampling Plan:
The purpose of using Non probabilistic sampling in this research is, it’s very
difficult to get the list of all employees which is required in Probabilistic
sampling. Also contact with all respondents during the research period is
also not easy because of limited time and the respondent’s busy schedule.
That’s why Non Probabilistic Sampling method is used in this research.
Primary Data:
Primary data may be collected by the following two tools.
Primary data have been collected by informal interview with the officers.
Some information regarding my report objects has been collected through
discussion with different executives of the Grameen phone.
Secondary Data:
The secondary data have been collected from some journals. Also some
important information is collected form Internet for the analysis.
Survey period
The survey is being conducted from January 25th to February 10th 2009.
Scope
The scope of the report is limited to the opinions of the Officials of Grameen
Phone in Gulshan Branch only.
Limitations:
What is VOIP?
VOIP, which stands for Voice over Internet Protocol, is a technology that
allows voice conversations to be carried over the internet. Even though it is
highlighted for voice communication, it is a protocol which serves various
other technologies like video, fax etc. VOIP sends voice information in
digital form, in discrete packets rather than by using the traditional circuit-
committed protocols of the Public Switched Telephone Network (PSTN),
Bangladesh's BTTB version. VOIP has become popular largely because of
the cost advantages to consumers over traditional telephone networks.
On the contrary, in a packet switched network the link that make a route
from one node to another can be shared by other nodes. This scenario
depicts, packet switching allows several calls to occupy the same amount of
resources that is occupied by only one in a circuit switched network. As a
result traditional telephony providers charge more than VOIP providers.
Furthermore, new software solutions will integrate real time voice system
more and more into their system. Thus VOIP infrastructure may help
country like Bangladesh which is looking for a good share from the global
software outsourcing.
An Example
Calling cards (using VOIP) are available for 850 minutes conversation from
UK to Bangladesh at the rate of only 5 pounds (about 700 Taka). In spite of
the recent devaluation of US Dollar the VOIP rates are dropping like
anything. According to Carrier Exchange Bangladesh mobile rate is very low
which was almost double a few months earlier when most of the grey
operators remain closed.
The use of VOIP technology in Bangladesh’s telecom Sector was not new.
BTTB has been using VOIP since 2003 through its 012 access code. BTRC
has been allowing the BTTB to use VOIP calls without any license.
However because of cheap setup costs and simple technology hundreds of
private VOIP operators sprung up tapping a huge market.
All the developed nations are embracing VOIP and its growth is
exponentially high. Vonage, one of the largest VOIP providers from USA
has earned 261.939 million US dollar according to the 2005 calendar with
total user of 2 million subscribers. However, VOIP provider such as Vonage
earns not only from mere telephony but also from other sources of services
that can be provided with VOIP with more ease. As VOIP protocols can be
affable with all other existing internet protocols, VOIP provider can come
out with more and more lucrative services from the internet to the telephony.
The VOIP technology paves the way for the cheapest, efficient and perhaps
the best global telephonic communication system for the developing country
like ours. The VOIP communications dramatically reduces the cost in
telecommunication and this cost effective communication has tremendous
impact on overall development of business and the growth of GDP. The
VOIP has also opened up new avenue for employment by initiating call
centers.
It is true that due to use of VOIP, worldwide the revenue earned from
telecommunications has declined abruptly. The same scenario has been
found
In the developed countries like the UK, USA and Canada. Still at the policy
level the developed world have not adopted any policy that hampers the
establishment of the VOIP communications as it facilitates the alternative
sources of revenue generation, new job opportunities, and above all quality
and economical telecommunication services for the people which should be
prime concern of the good governance.
So, it is evident that the many of the developed and developing countries as
well have given priorities for rapid expansion of VOIP services. Rather than
focusing on direct revenue earned from the telecommunication these
countries have given concentration on indirect increase of huge revenues
from VOIP based services. Besides, due to widespread use of VOIP, citizens
of those countries are also enjoying quality telecommunications services at
low cost.
BTRC fined Grameen phone Tk168crore for its involvement in illegal VOIP.
The BTRC also fined City Cell Tk150 crore, AKTEL Tk 145 crore, and
Banglalink Tk 125 crore for illegal VOIP trade.
BTTB's income in the year 2005-06 was 13,300 million Bangladeshi taka
with only 1.07 million users. This revenue figure is the lowest compared to
last few years. This drop is caused by excellent cellular network of
Bangladesh and illegal VOIP businesses.
However, if BTTB had 22 million VOIP users they could earn much higher
with monthly low fixed charge. 22 million is the current number of users in
cellular world of Bangladesh. That clearly indicates there is a high demand
for telephony in Bangladesh.
With such rapid growth of users BTTB should not have any concern
regarding their income target and return on investment in VOIP
infrastructure.
VOIP licenses and dirty games in Bangladesh:
These illegal VOIP operators were so powerful that they could successfully
influence the BTRC in chalking out very high licensing fees for this business
to minimize the number of competitors and to monopolize this business. For
providing license, the BTRC has categorized VOIP into three groups
namely, Category A: Cellular Mobile operator VOIP License, Category B:
PSTN operator VOIP License and (iii) Category C: Nationwide ISP VOIP
License. For the inquisitive readers, the following table shows the required
licensing fees set by BTRC for these three categories VOIP operators.
Presumably this sort of very high license fees will bar many real IT enabled
and genuine business professionals to acquire license from the BTRC.
Unstructured planning
The unusual delay in taking decision for issuing licenses is a technical one.
Bangladesh Telephone and Telegraph Board (BTTB) has pointed out that for
the security of the country as well as for ensuring the inflow of revenues to
the government from the private VOIP service providers , a strong
monitoring system must be implemented. At the policy level, initially, there
was some dilemma regarding infrastructure of Information exchange, for
instance, whether the management of all the traffic be made through a
gateway or, in this context, set up an Internet Exchange.
The original proposal of BRTC suggested that the international phone traffic
would be managed through existing very small aperture terminals (VSATs)
but later on it was modified and decided that management of all Internet
traffic, including that of the ISPs, would be done by a single gateway or
exchange managed by the BTTB. The rationale of such a common platform
is that without a common platform, nobody will know how much the VOIP
operators are earning. It is ridiculous to expect that the VOIP operators will
give genuine revenue reports to the government and pay taxes. In line of this
argument, subsequently, it has been decided that the license for VOIP would
be given after setting up a common
Platform in four areas of the country under BTTB through which Internet
phone calls will be channelized . The four areas are Dhaka, Chittagong,
Sylhet and Bogra. Such a common platform has to be connected to the
submarine cable with a view to connecting our VOIP systems to global
Information High Way.
Whereas big telecom operators remain easy catch for BTRC and probably
they are scapegoats for those who were cashing in a lot of profit. There is a
huge amount of money playing here and they are not thinking about the
implications of harassing such big players.
network will never be able to allow cheaper rate compared to VOIP network.
Rather the government itself can go for VOIP businesses in different form.
Moreover, recently it is found by the GSM Association (GSMA) that the
Bangladesh government protects the BTTB's monopoly over international
phone call business. Thus foreign investors are least interested to inject fund
in the country's telecom sector.
In Bangladesh, though the VOIP is legalized at least at the policy level but
the process of providing licenses has yet to be executed. It has been already
discussed that on the issue of providing license for VOIP some dirty games
have been played by the immediate past political government undermining
the public interest. Drive against illegal VOIP operators should not be
considered a positive step unless the procedure for issuance of license begins
immediately. In this regard some pragmatic steps that government may
follow are given below:
BTTB’s role in VOIP should be reexamined
BTTB wants to regulate the VOIP with a view to enhancing its revenues
earned from overseas telecommunications. But increase of direct revenues
from overseas telecommunications should not be considered as the overall
economic growth of the country. Rather it has been observed that the
reduction of telecommunication rate has the greater impact on the GDP of
the country.
Till to date, the telephonic call charge in Bangladesh is the lowest in the
world. But still BTTB has failed to contribute much to the net revenues
earnings of the country. The BTTB if at all wants to increase the revenue
then it should consider initiating other value added services for VOIP and
other modes of telecommunications using the facility of the submarine
cables.
Conclusion
3. www.VOIPforums.com