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Voice calling price floor removal demanded

Voice calling price floor removal demanded
Representational image: Collected
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Telecom policy experts on Sunday called for the immediate removal of Bangladesh’s outdated voice floor price, which has been set at Tk0.45 per minute since 2018.

Initially introduced to support telecom operators during the costly 4G transition, experts now argue that the price floor is hindering the country’s digital economy and restricting the expansion of mobile services, particularly in rural areas.

The Telecom and ICT Policy Advocacy Platform (TIPAP) and Voice for Reform co-hosted a seminar in Dhaka, presenting data that highlighted the price floor’s diminishing relevance.

According to experts, with 4G coverage now reaching nearly the entire population and smartphone ownership at 72.8 per cent, the price floor is no longer necessary. The policy prevents market prices from adjusting to competition.

Mahtab Uddin Ahmed, managing director of BuildCon Consultancies Ltd, who led the seminar, presented data showing that since 2018, mobile operators have earned an additional Tk37,152 crore from voice calls due to the price floor.

The bulk of this revenue, he explained, comes from low-income citizens who still rely on voice calls for communication, as they remain outside the reach of internet services.

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“The price floor is a relic of the past, preventing market-driven pricing and burdening the poorest citizens, particularly in rural areas,” Ahmed said.

“This policy, which was originally intended to protect operators, now prevents digital inclusion by making voice calls unnecessarily expensive.”

Mohammad Farhan Alam, Deputy Director of the System and Services Division at the Bangladesh Telecommunication Regulatory Commission (BTRC), acknowledged the importance of reviewing telecom policies but raised concerns about how removing the price floor might affect government revenue and operator pricing strategies.

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However, Mahtab Uddin Ahmed rebutted these concerns, stating that removing the price floor would encourage digital growth and increase government revenue through taxes on mobile data and digital services.

Experts also pointed out that Bangladesh’s telecom taxes are among the highest in the world, adding financial strain on consumers.

They argued that removing the price floor would allow for more competitive pricing, ultimately benefiting all consumers, especially those in underserved areas.

Bangladesh’s internet access remains significantly lower than regional peers, with only 44.5 per cent of the population online as of 2026, compared to 67 per cent in India.

India removed its voice floor price in 2016, and countries like Nigeria, Kenya, and Sri Lanka have demonstrated that removing such price floors boosts smartphone adoption, increases mobile data use, and strengthens digital economies without harming operators’ revenues.

Robi Axiata Chief Regulatory Affairs Officer Shahed Alam expressed reservations, suggesting that removing the price floor might lead to an increase in mobile internet prices.

However, the experts in the seminar stressed that reducing voice call rates could stimulate greater smartphone adoption and drive up demand for mobile data, which would ultimately result in more revenue for both the operators and the government.

Experts proposed a gradual reduction of the floor price, aiming for complete removal by the end of 2026. They also suggested implementing the Significant Market Power guidelines on Grameenphone to ensure fair competition.

Fahim Mashroor, TIPAP’s convener and a leading tech entrepreneur, expressed strong support for the reform, stating, “Bangladesh can’t hope to compete in the global digital economy while millions of its citizens, particularly in rural areas, are paying above-market rates for basic services.”

Hossain Sadat, President of the Institute of Chartered Secretaries of Bangladesh, also expressed support for the removal of the floor price, noting that it would unlock opportunities for digital services across various sectors and foster greater economic growth.

He emphasized the need for policies that align with the modern digital economy, which can empower all segments of society.

The seminar concluded by urging the BTRC and the Ministry of Posts, Telecommunications, and ICT to begin a public consultation process within the next 90 days to discuss the future of the voice floor price policy and implement necessary reforms.

 

 

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