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“There are some sectors the govt can’t totally come out from”

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March 1, 2001 

  

Dhaka-- – Industries Minister Tofail Ahmed yesterday said government agency BTTB is going to introduce mobile phones as private operators have failed to come in a bigger way to live up to public expectations.


“People will get mobile phones at much cheaper price if BTTB puts those in the market. Why will people go for a service that charges much higher price… there should not be monopoly anymore,” he told the monthly luncheon meeting of Foreign Investors’ Chamber of Commerce and Industry (FICCI) at Hotel Sheraton.


Tofail’s remarks came in response to FICCI president Wali Bhuiyan’s criticism of the BTTB’s move to enter the cell phone market, which he described as an anti-private sector initiative of the government.


The minister said the government on many occasions declared that it would not go for business, but the private sector failed in some areas to meet the expectation of the people.


For instance, he said, the government awarded World Tel to install 300,000 telephone lines, but the company could not arrange fund yet.


Giving rationale for BTTB’s move to introduce cell phone, he said private sector initiative in fertilizer production for domestic market would not be viable as the government sells fertilizer at a subsidized rate of Tk 4,800 per ton.


Production cost of fertilizer is Tk 5,500 per ton while the import cost is Tk 8,000.


At the same time, he said, government ensures gas supply at a subsidised rate after buying it at a higher rate from the international gas companies, which is not possible for a private entrepreneur.


“There are some sectors the government can’t totally come out,” he told the meeting that virtually turned into an amiable debate on the mobile phone issue.


Wali Bhuiyan said it is not clear what the government is going to do. The government is extremely inefficient in doing business, he remarked. “Let the private and public sectors compete each other, but there should be a level playing field.”


The FICCI President said BTTB’s entry into the mobile phone business without having to undertake obligations like payment of license fee, radio frequency fee, call termination charges and revenue sharing applicable to the private operators will take away the level playing field.


A representative from Grameen Phone told the meeting that private operators have to pay Tk one crore to BTTB for a 30-channel interconnection.


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