Strengthening the telecommunication sector
Bangladesh’s telecommunications sector experienced phenomenal growth over the last five years. Teledensity or number of telephones per 100 persons has grown to around 33% from around 2% in 2001.
The World Bank funded ‘Telecommunications Technical Assistance Project (TTAP)’ is supporting the Government to improve the performance of the telecommunications sector. TTAP, which commenced implementation in 2003 with a financing commitment of US$ 10.5 million, is helping to improve the telecommunication sector’s performance through strengthening of the institutional, policy and regulatory frameworks in the sector.
The July 2008 restructuring of the Bangladesh Telephone and Telegraph Board (BTTB) into two public limited companies, the Bangladesh Telecommunications Company Limited (BTCL) and the Bangladesh Submarine Cable Company Limited (BSCCL) was also supported under TTAP and is a major milestone in achieving competitiveness and reform in the sector. However, it is important that BTCL management is strengthened, in order to enable BTCL to compete with other private operators. Next steps for BTCL, include implementing a comprehensive strategic transformation across its functional areas.
The TTAP is supporting the implementation of the National Spectrum Management and Monitoring System. The Automated Spectrum Management System and fixed monitoring station in Dhaka are now fully installed. Two mobile monitoring vehicles have also been made operational. This will enable BTRC to better monitor the radio spectrum, and resolve spectrum interference issues. The entire National Spectrum Management and Monitoring System is expected to be commissioned by first quarter 2009.
Market liberalization over the last two years, across all the segments in the sector has promoted competition and efficiency, leading to falling end user tariffs, especially for mobile and international long distance calls and internet access.
In order to further improve sector performance, it is important to amend the Telecommunications Act so that the sector regulator, Bangladesh Telecommunications Regulatory Commission (BTRC) has adequate financial and organizational autonomy to promote and regulate a fast changing sector.
November, 2008
Contact: Mehrin Ahmed Mahbub, Phone: (880-2) 8159001 – 28, E-mail: mmahbub@worldbank.org
To know more about the Telecommunications Technical Assistance Project (TTAP), please visit: http://www.worldbank.org.bd/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=295760&menuPK=295791&Projectid=P081849
for more information on the World Bank in Bangladesh, please visit: http://www.worldbank.org/bd
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