The New Nation - Internet Edition

ECONOMIC REPORTER

GCM Resources PLC said it has agreed to invest 2 million pound sterling in cash for an equity interest in Bangladesh's PSTN operator, Peoples Telecommunication & Information Services Ltd.

Following this investment, GCM stake in Peoples Telecommunication enlarged capital raises to 37 per cent from 26.5 per cent earlier, it added.

For the year ended September 30, 2007 Peoples Telecommunication reported a loss of about 1 million sterling and had net assets of about 7 mln stg.

Peoples Telecommunication & Information Services Ltd. (PeoplesTel) is the successor company of Bangladesh Rural Telecom Authority (BRTA) Pvt Ltd.

BRTA started its operation in 1989 with the responsibility to provide digital communication in 203 rural thanas throughout north, north-east and north-west regions of the country with the agreement with Bangladesh government, represented by Bangladesh Telegraph & Telephone Board (BTTB), the government owned telephone company. Later this agreement was revised in 1993 and BRTA was given the responsibility for 199 thanas. BRTA is the first private PSTN operator in Bangladesh. In fact it has paved the way for telecom privatisation in Bangladesh.

On 15th December 2003, BRTA was bifurcated into two new companies with a mutual agreement among the Directors.

That is how PeoplesTel came into being and incorporated in February 2004 with the responsibility for 99 Thanas. It has now over 30,000 customers and have a very strong infrastructure and more than 200 experienced manpower.

Back in 2003 Bangladesh Telecommunication regulatory Commission (BTRC), the newly formed telecom regulatory body, invited application for PSTN licenses for 4 zones. Bangladesh is divided into 5 zones (North-West, North-East, South-West, South-East and Central). Dhaka City, Tongi, Zingira, Savar, Gazipur & Narayanganj District Headquarters are within the Central zone. PeoplesTel is now operating in four Zones.

On 25th June 2007, BTRC decided to issue license to PeoplesTel to provide fixed and wireless phone services in Dhaka (Central Zone). PeoplesTel is one of the eligible companies to get this license and very soon will be operating in Dhaka after BTRC formalities are executed. With a mission aiming to provide reliable, widespread, convenient and cost-effective telephone services to the people in Bangladesh irrespective of where they live currently PeoplesTel is operational nationwide.