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Ranjan Kumar Das (071503056)


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Ranjan Kumar Das (071503056)

  1. 1. 1 ______________ ETE 605 IP Telephony TERM PAPER How can IP telephony help the BTRC for revenue generation? Prepared For Dr. Mashiur Rahman Assistant Professor, North South University Date: Sunday, April 15, 2008 ___________________________________________________________________________ Ranjan Kumar Das ID # 071 503 056 Section: 02 North South University
  2. 2. 2 ABSTRUCT Telecom is a fast changing dynamic sector. Continuous change in technologies and opportunities created by such change and consequent impact on the customer/user necessitates changes and adaptation of policies in the sector. Countries which respond timely and appropriately to such change grow successfully whereas others who fail, lag behind, remaining trapped in the vicious circle of poverty and under-development. Bangladesh being a developing country is fast trying to catch up with the developed world, and adapt its policies, in response to changing needs, opportunities and requirements in different sectors, including the telecom sector. Nowadays, IP (Internet Protocol) telephony is the most attractive part of the telecom sector. BTRC (Bangladesh Telecommunication Regulatory Commission) regulates all of the parts of the telecommunication sectors in Bangladesh. At present this commission generates one of the biggest parts of revenue in Bangladesh.
  3. 3. 3 1 Introduction IP telephony – the implementation of voice over an IP-based network – is fast becoming an attractive and viable opportunity for businesses. Today the market for IP telephony is rapidly maturing (Figure 1). There has been widespread deployment and acceptance of IP telephony solutions in a broad range of market sectors, such as government, education, healthcare, finance, and manufacturing where competitive advantages depend on the ability to enhance productivity and increase mobility. Opportunities are not limited to these markets; in fact, new organizations have deployed IP Telephony solutions have reported a range of benefits that include cost savings, increased revenues, and new opportunities to drive business innovation. Even companies that had not been favorably disposed toward IP telephony now realize the advantages of introducing this technology into their own enterprises. Figure 1. Enterprise Packet Voice Market Almost every corporation in Bangladesh, whether it is large or small, wants to use IP telephony and Voice over IP solutions to facilitate their communication. This method brings down the expenses for the companies - particularly the infrastructural investment in their communication processes.
  4. 4. 4 2 Why IP Telephony? Over the years, enterprise companies have invested worldwide heavily in multiple communication infrastructures to operate separate voice and data networks. Because these systems are often not compatible, converging them can be difficult and expensive to maintain. What is more, completely ripping out an existing infrastructure all together by bringing in an end-to-end offering from a large data provider can be costly and a waste of resources (Figure 2). Figure 2. Challenges of IP Telephony Deployments IP telephony allows organizations to simplify and streamline their communication systems. It is commonly used to support business environments where employees and customers are demanding access to advanced applications and new ways of collaborating across their business. IP telephony presents exciting opportunities for adding more value- added services and applications throughout the organization. In a “Greenfield” location (a facility with no existing telecommunications equipment), a company can install IP Telephony solution that supports integrated communication capabilities. Companies that already have an existing telecommunications system in place can
  5. 5. 5 continue to use the existing infrastructure and migrate to IP telephony over time at a pace that makes sense for them based on their specific business needs, blending new and legacy equipment. The past few years have seen only modest investment in telecommunications infrastructure, but companies have shown an increasing desire to invest in IP telephony solutions. It’s been estimated that seven million voice over Internet protocol (VOIP) phones will be in circulation by 2007 (Figure 3). Figure 3. Total Enterprise IP Telephony Market: Revenue (World), 2002-2007 3 Examples of Implementations Government Municipalities and other governmental entities tend to have multiple departments and locations running on disparate – and often incompatible – technology infrastructures. This can, and often does, pose significant maintenance and support challenges.
  6. 6. 6 The adoption of IP telephony creates a single virtual telephony environment for various departments spread throughout the city – or country. By unifying voice and data technology infrastructures, maintenance and support are greatly simplified. Furthermore, a single network can provide virtually every city employee with traditional telephone services as caller ID, call forwarding, voice mail, and advanced directory service – plus advanced IP telephone capabilities such as auto attendant, “follow me” messaging, message forwarding to off-system users, and centralized directory integration. Figure 4. Benefits of deploying an IP Telephony solution Education Traditionally paper-based, school districts are turning to enhanced IP telephony systems to replace tedious handwritten tasks. Attendance, hall passes, scheduling, and some security features are integrated into applications that help save time and money while simplifying the administrative process.
  7. 7. 7 Universities can also leverage the flexibility of IP Telephony solutions to help drive revenue to offset additional infrastructure costs. By deploying IP phones into dormitory rooms throughout the campus, a university can derive advertising revenue from a host of locally supported student service businesses ranging from pizza delivery shops, bookstores, and more. Healthcare The healthcare industry depends on innovation to provide the best possible service to its ultimate customer, the patient. IP Telephony solution has helped create tools that give doctors, nurses, pharmacists, and medical staff access to scheduling, medical records, and lab results through IP phones or other mobile devices, such as PDAs or tablet PCs. A converged data and voice network allows healthcare providers to access, manipulate, and archive voice, text, and displayed information in ways that help cut costs and enhance productivity. For example, after a patient visit, doctors can link verbal dictation to patient records for immediate updates. Invoices can be submitted using voice technology, saving doctors and other hospital staff time and reducing administration expenses. Finance By combining multiple network infrastructures into a single IP-based network, financial institutions can consolidate disparate infrastructures and reduce communications costs. At the same time, those savings can be transferred back to customers in the form of more competitive products such as Internet banking and bill pay, and offering value-added services such as wealth management and online trading and trade monitoring. Using IP telephony solutions, banks can move all channels into the branch, reducing manual cash handling by tellers, and providing an additional delivery mechanism for enhanced customer service. The result: simpler operations, lower maintenance and support costs, and greater agility.
  8. 8. 8 Manufacturing The manufacturing industry is using IP telephony to speed up time to market and to balance supply and demand. The technology lowers the risk of unpredictable demand, uncertain availability, and fluctuating prices for direct materials by speeding up the communication process between distributors and suppliers. Industries like automotive, retail, pharmaceuticals, and high-tech are realizing dramatic improvements in inventory, service levels, supply and demand variability, and distribution channels through converged voice/data systems. Manufacturing organizations also realize savings in long-distance rates and can leverage multiple mobile communication and productivity solutions. Instead of expensive PBX equipment at every office site, centralized IP telephony solutions provide cost-effective central management and support. 4 Illegal IP Telephony through BTTB The ongoing drive against illegal VOIP operation has resulted in a record jump of overseas telephone calls through the Bangladesh Telegraph and Telephone Board (BTTB) system, statistics show. The BTTB is now handling more than 12 million minutes of overseas calls per day as against around four million minutes of calls per day last year. Such a jump however is mainly due to incoming calls. Overseas calls through the "legal" or BTTB channel started to mark a significant upward trend from January this year and rose to the highest number of around 14 million minutes of calls a day during the recent Eid vacation. This is considered significant because illegal VOIP (Voice Over Internet Protocol) operation had long been depriving the government of huge revenue, and the BTTB's overseas revenue earning was consistently nose-diving during the period. It is estimated that operators were bagging Tk 15,000 crore a year through illegal overseas telephony using VOIP technology while the BTTB's earning from overseas calls was just around Tk 200 crore last year. BTTB records show that it handled 22.8 crore minutes of incoming overseas calls and 2.9 crore minutes of outgoing calls in August last year. During the corresponding period year 2006, it
  9. 9. 9 handled 8.3 crore incoming and two crore outgoing calls. Again, only in eight months till August last year, the BTTB handled about 120 crore minutes of incoming calls and 19 crore minutes of outgoing calls. In contrast, it dealt with 90 crore minutes of incoming and 23 crore minutes of outgoing calls last year. Outgoing calls are not increasing significantly because call rates are generally perceived as very high. Besides, people in general prefer to receive overseas calls than make overseas calls, telecom experts say. Overseas calls have become a major business in Bangladesh since the late nineties mainly due to the VOIP technology that was being used without giving the government any tax or duty. Bangladesh Telecommunication Regulatory Commission (BTRC) had played a questionable role in this regard. Consequently, overseas calls in the gray markets became so cheap that Bangladesh became one of the fastest growing overseas call markets. 5 BTRC Actions According to the regulatory and licensing guidelines of international gateway license, the auction will be based on open bids and the bidders will bid for the percentage of the revenue to be shared with the BTRC. The bidding will start at sharing 25 per cent of the revenue with the BTRC, and each successive bid will have to be incrementally higher by 0.25 per cent. The BTRC has also fixed Tk 15 crore as acquisition fee for each international gateway license. The licensees will be given initially for a 15-year term with an option for renewal after every five year subject to the BTRC’s approval. All the three international gateways will be located in Dhaka and must be open to lawful interception by the intelligence agencies. The guidelines say that the license holders will set up the international gateway exchanges and launch services within four months from the issuance of the licensees.
  10. 10. 10 They will have the primary backbone connection with international networks through the SEA-ME-WE submarine cable and also other submarine cables whenever available. The license holders will also have the backup connectivity through the satellite earth station until an alternative submarine cable is available. 6 Conclusions According to the above discussions it can be clear that, using the IP Telephony, BTRC can earn a lot of money by licensing, tax, rules avoiding fine in telecommunication sector. Besides this, revenue of Bangladesh will be increased tremendously. Therefore it is the great opportunities to increase the government revenue of Bangladesh. 7. REFERENCES I. Why VoIP: it is the best, see http:// II. IP Telephony Solution White Paper, see III Bangladesh Telecommunication Regulatory Commission, IV. The Daily Star, Internet Edition