Mobile internet operators making big profit

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Anisul Islam Noor :
The mobile phone operators in the country are making a big profit in internet gigabyte (GB) data selling to their customers.
According BTRC, the cellular operators have spent an average of Tk0.26 (26 paisa) on every GB internet data purchase. However, they are selling the same amount of data to their customers at a price of more than Tk 200.
Although bandwidth price was reduced in different times, the operators keep their selling rate almost similar. And, the customers are not getting any benefiting from it, sources at the telecommunications regulatory body said. However, the cellular operators claimed that the bandwidth cost taken from the customers is not more than 1-3 percent of the total cost of their data-based services.
It was learnt that the operators buy every megabyte per second (MBPS) bandwidth at a cost of Tk 390 to 550 from the International Internet Gateway (IIG). But at the end of the month, the maximum amount of data usage is 2,592 GB in one MBPS speed connection.
As a result, operators spend 15-21 paisa for purchasing every GB data. However, a 30 percent waste is adjusted in other sectors, including disconnection. The usage stands at 1,814 GB.
In this, the operators spend a minimum of 22 paisa to 30 paisa to buy every GB data, while the average of the two stands at 26 paisa.
According to the data-based service of the operators, currently Grameenphone’s 1 GB data does not have any direct package, but Flexiplan has access to the same data. Grameenphone’s subscriber costs Tk 277.28 for purchasing 1 GB data within 30 days of Flexiplane. Banglalink customers have to pay the same amount of Tk 209 while Robi and Airtel’s 1 GB data package is priced at Tk. 213 and Tk. 209 respectively. However, the expiration date is 28 days.
The state-owned mobile phone operator Teletalk’s 1 GB data package is relatively lower than others. The company’s 30-day period 1 GB data package is priced at Tk 180. The average selling price of per GB data for these five operators stands at 217. In the last few years, the government has brought bandwidth prices down for the expansion of internet service in the country. Besides, wireless high speed internet services like WiMAX and 3G have been launched.
The vast majority of internet subscribers are now using cellular phone operators’ internet services. 3G technology is allowing the operators to expand their data-based services. But the operators are not interested to bring down prices of internet bandwidth depriving the customers.
Sumon Ahmed Sabir, Chairman of the Board of Trustees of Bangladesh Network Operator Group (BIDDG), said, “The price of internet bandwidth in the country has decreased much earlier. “It’s one of the cheapest prices in the world, there is no doubt about it.”
There is a chance to consider how much the internet prices can be decreased at the customer level. The price of mobile internet has not diminished in the way of internet services, Operators’ internet package price has not changed much in comparison with the previous year, he said.
But customers have increased in couple of years. So, the price of mobile internet packages in the country should be more tolerable at the customer level. The internet users also agreed not to accept more money from the customers.
The operators said the cost of bandwidth is only 1-3 percent of the money taken from the customers for data-based internet services. Most of the money is related to the company’s capital and management expenses. These expenditures include network infrastructure construction, wave allocation, annual wave allocation fees, license fees, salary and other expenses. According to Robi Axiata Vice President (Communication and Corporate Responsibility) Ikram Kabir, in Cast Modeling through organization experts, the bandwidth expenditure is less than 1 percent of the related capital and management cost. As a result, the bandwidth costs little compared to the cost of providing this service at customer level. He said, “Presently the retail price of every MG data is less than our expenditure.”

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