The New Nation - Internet Edition

International phone calls: Novotel, Bangla Trac, Mir Telecom receive licences

ECONOMIC REPORTER

Three local telecom companies have won international call service licences breaking the decades-old monopoly by the state-run BTTB, officials said.

Novotel Ltd, Bangla Trac Communications Ltd and Mir Telecom won the licences offering 51.75 per cent of their call tariffs to the Bangladesh Telecommunication Regulatory Commission (BTRC) after a 26-hour long auction at Radisson Water Garden Hotel Dhaka on Tuesday, BTRC spokesman Abbas Faruq said.

"All three will be given licences in ten days after they complete formalities. Their arrival ushers in a new era in the country's telecom sector. It also breaks the decades-long monopoly of the BTTB," he said.

Faruq said these three companies would be given international gateway licences for 15 years under the International Long Distance Telecommunications Policy 2007. The licences are renewable.

This is the first time in the country's history telecom licences were auctioned off in front of an open house. BTRC chairman Maj Gen (Retd) Manzurul Alam said it was done to ensure 'complete transparency.' The BTRC chairman said that the government would get revenues worth TK 1,000 crore a year from the sector. The existing revenue earning is around Tk500 crore a year.

The three companies have to deposit Tk 15 crore in licence fees each in 10 workdays from the day of bidding. Every year each firm will have to deposit Tk 7.5 crore for renewal of licence.

Though 31 companies took part in the auction that ran a non-stop 26-hour before the three companies were declared winners after they offered the highest tariff.

The three are the newcomers in the country's growing telecom sector, with Mir Telecom being the only one owned by a well-known group.

Former head of the country's top chamber FBCCI Mir Nasir Hossain owns the Mir Telecom. Novotel is owned by lesser known textile company, Tusuka Fashions, and Bangla Trac, an importer of generator and heavy equipment, is led by Tarique-e-Haque.

Mir Nasir hailed the auction, saying their offer 'makes sense'.

"International call is a growing market. We think our offer will be viable and we will be able to make some profit," Nasir, who also leads the Mir Group, said.

"We also thank the BTRC for conducting the country's most transparent bidding in history," he said.

His company would now invest nearly Tk 1.00 billion to start operation within the next six months. "We have already started negotiations with equipment makers."

The auction brings an end to the long-held monopoly by the state-owned fixed phone operator Bangladesh Telegraph and Telephone Board (BTTB).

Protected by the government's telecom laws, the BTTB was the sole carrier and router of international phone calls since the country's independence in 1971.

But lack of government policing meant private mobile and fixed-phone operators illegally grabbed a huge share of the market, by using Voice over Internet Protocol (VoIP) technology since it became popular in 2001. The BTRC has already fined four top mobile phone operators including the country's largest Grameenphone some Tk 6.15 billion for illegally transferring international calls in the country.

The regulator said the entry of the three new private operators would ensure a sizable tariff for the government.

"The government will now have a good slice of the ever-growing pie," Faruq said, adding the three companies will have to pay Tk 150 million each as licensing fees.

The country's international call market is about 25 million minutes a day, with 80 percent traffic home bound, a BTTB official said, adding more than 50 per cent of the market is being illegally grabbed by VoIP operators .

"The market is worth Tk 30 billion and it is growing rapidly because of the huge exodus of Bangladeshi workers," he said.

More than five million Bangladeshis now work and live abroad and officials have projected another one million to leave the country this year.

An expert said the 51.75 per cent revenue sharing is a 'very good business deal' should the government completely stop illegal VoIP use.

"The companies made an excellent deal. It looks very much viable to me," said the expert, who is associated with the international call services for years.

"But the government should clampdown on illegal call transfer business by some of the leading mobile and land phone operators. These illegal operators are eating up the bigger slice of the pie," he added.

Mir Nasir, however, said privatisation of the international long distance call service would lead to a price war among the legal carriers, drying up the source of revenues for the illegal VoIP operators.

"Illegal VoIP operators thrived because of the protection enjoyed by BTTB. But as soon as the private companies start operation, it will be impossible for these illegal operators to stay afloat," he said.

Best Air to spread wings to Bangkok, KL in March

ECONOMIC REPORTER

Best Air will fly to Kuala Lumpur and Bangkok by mid-March and April respectively.

Besides, Best Air will be flying to Chennai, Kolkata and Kunming in China from April.

Haider Uzzaman, Chairman of Best Aviation Ltd, the parent company of Best Air, said the airline is expecting final approval from the Civil Aviation Authority of Bangladesh, to operate international flights to Thailand and Malaysia by the middle of next month.

"We have already received permission from the Thai aviation authority to operate daily flights on the Dhaka-Bangkok route. We expect to operate flights on the route by mid-March," he said.

Haider said air traffic growth on the Dhaka-Bangkok route is about five per cent a year.

Biman Bangladesh Airlines, GMG Airlines, Thai Airways and Druk Air are operating flights on the Dhaka-Bangkok route.

Besides, Haider Uzzaman said Best Air will operate seven flights a week to Kuala Lumpur from early March and expect a 80 to 90 per cent load factor. Our 737-200 Boeing aircraft and crew are all ready for the first flight to Kuala Lumpur.

There are an estimated 300,000 Bangladeshi workers in Malaysia while about 40,000 Bangladeshi tourists visit Malaysia a year, making it a lucrative sector for Best Air that has plans to complement Malaysia Airlines' (MAS) service to Bangladesh.

"We can help the Malaysian government build up tourism, transport and manpower, and there are also about 2,000 Bangladeshis under the second home programme in Malaysia.

"In addition, we can help MAS in terms of long haul flights, because we can carry traffic to Kuala Lumpur and beyond as we have an interline agreement," said Haider Uzzaman.

Best Air's right to fly to Kuala Lumpur will be a bilateral arrangement as, in return, Malaysia's long haul low cost carrier AirAsia X will fly to Dhaka soon.

Besides the Dhaka-KL route, Best Air will also be flying to Bangkok, Chennai, Kolkata and Kunming in China from April.

Best Air will be the latest domestic carrier to fly any international route after Biman Bangladesh Airlines and GMG Airlines. However, the number of domestic airlines now in operation in Bangladesh is five.

Entry of Best Air, which began operation in 1999 as a helicopter operator, is expected to raise competition in the Bangladesh aviation market that grows by 8 percent on an average a year.

This private airline launched its passenger flight in mid-January with a 118-seater Boeing 737-200 on the domestic route. The carrier is also expected to increase its fleet through adding another Boeing 737 this month.

Haider Uzzaman also indicated that the Best Air has plans to expand its business to India and China.

Pubali Bank Branch shifted to new premises

Pubali Bank Limited, B. B. Avenue Corporate Branch, Dhaka has been shifted to new premises with a view to providing best & modern banking services. Chairman, Board of Directors of Pubali Bank Ltd. Hafiz Ahmed Majumder inaugurated the new premises as a chief guest on 20 February, 2008 while Managing Director Helal Ahmed Chowdhury presided over the inauguration function.

Directors' of PBL Moniruddin Ahmed, Ahmed Shafi Chowdhury & Mustofa Ahmed were also attended at the ceremony.

In his speech Hafiz Ahmed Majumder said that Pubali Bank is committed to providing the best & innovative banking services needs of the market in fastest possible time. As a part for providing better services & client's increasing demand Pubali Bank has shifted its B. B. Avenue Corporate Branch. He said Pubali Bank recently launched a new credit product titled "Non-Resident Credit Scheme" for foreign going job-seekers. He also said one can take financial help through this scheme who goes abroad for employment. He expressed his hope that Pubali Bank would surely serve its customers with utmost satisfaction by applying modern technology through this branch.

Directors' Moniruddin Ahmed, Ahmed Shafi Chowdhury & Mustofa Ahmed also delivered speech at the function. They urged all to take banking services through the Pubali Bank. In his speech Helal Ahmed Chowdhury said that Pubali Bank has been providing better services for its customer since 1959 with a promise to keep up its original tradition. He also said, PBL give priority to provide opportunity and advantage to the customers through application of modern technologies. With a view to expanding the scope of services, the bank has shifted its B. B. Avenue Corporate Branch. He also said all Branches are computerised and SWIFT-banking system is inforce in all important branches. He urged all the local people for extending co-operation to the bank.

Renowned businessmen and local elite were also attended at the function. General Managers of PBL Head office & Other Executives were also present at the inauguration ceremony.

Kamal Uddin passes away

Kamal Uddin Ahmed, former Deputy Governor of Bangladesh Bank passed away due to old age complications at his residence in Dhaka on Tuesday at the age of 70 (Inn a lillahe t.rajeun).

He joined in the then State Bank of Pakistan in 1961 and retired in 1996 as Deputy Governor of Bangladesh Bank. He was born in Rajanagar village of Munshiganj district in a respectable Muslim family. His Namaj-e-Janaza was held at Ahmed Nagar, Mirpur, Dhaka and he was buried at Mirpur Budddhijibi Gorosthan on 19/2/08.

He left behind his wife, three sons, two daughters and a host of admires to mourn his death.

The Qulkhawni of late Kamal Uddin Ahmed will be held at his residence (304/3, Ahmed Nagar, Mirpur, Dhaka) on 22/2/08 after Asr prayers. Relatives, friends and admires have been requested to attend the Qulkhawni and pray for the salvation of the departed soul.

Krishi Bank board meeting held

The 452nd Board Meeting of the Board of Directors of Bangladesh Krishi Bank was held in the Board Room of the Bank on 19 February. Khondkar Ibrahim Khaled , the new Chairman of the Board of Directors of the Bank chaired the meeting. At the meeting the outgoing Chairman S A Chowdhury and the new Chairman Khondkar Ibrahim Khaled were greeted with floral wreaths. The Directors of the Board of Directors, Managing Director, Deputy Managing Directors, all the General Managers of Head Office, the Secretary of the Board of Directors and concerned Deputy General Managers were present on the occasion.

In the meeting the new Chairman in his speech reiterated that BKB should come forward with modern customer-oriented banking service. He called upon the top officials to give emphasis on various modern banking products, especially Foreign Exchange business, in order to survive in the competitive banking arena. Some important decisions on the various affairs of the Bank were also taken at the meeting.

Grey Dhaka puts Bangladesh on global map

Grey Dhaka, one of the largest communications agencies of Bangladesh, has been nominated for the Effie - one of the most coveted advertising industry awards. Each year, the Effie is awarded via the Global Effie, The Euro Effie, Effie Asia Pacific, and more than 35 national Effie programmes. As a finalist under the Effie Asia Pacific programme, Grey Dhaka was pitted against other industry professionals from across the Asia Pacific region. They have been nominated for the campaign Grey Dhaka created for Nokia Bangladesh. While typical advertising industry awards recognise 'creative' excellence, the Effie rewards the effectiveness of the advertising itself. It is not enough to tackle a marketplace challenge with a 'big' idea - the Effie looks at ideas that work: how the message has been effectively communicated to the consumer and has demonstrated measurable results.

Grey Worldwide Bangladesh is part of Grey Worldwide South Asia which ranks among the largest communications companies in South Asia. Grey operates branded independent business units in many communications disciplines including general advertising, public relations/public affairs, direct marketing, internet communications, healthcare marketing, brand strategy and design, and online and offline media services. Grey Worldwide Bangladesh boasts of clients like British American Tobacco, P&G, Horlicks (GSK), Ascent Group, and Emirates Airlines among others.

The Effie was first launched in 1968 and this is the first time any agency from Bangladesh has won it. The Effie Asia Pacific award ceremony is to take place in Singapore on February 28. We look forward to seeing Bangladesh represented by this prestigious global platform.