STAR BUSINESS REPORT

Telecom experts yesterday called on the government to phase out the country’s mandatory minimum voice call rate, known as voice floor price, arguing that the Tk 0.45-per-minute rate, unchanged since 2018, is hindering digital inclusion and placing an undue burden on low-income users.

The call came during a policy seminar, titled “Steps the New Government Should Take to Make Mobile Services Citizen-Friendly”, organised by the Telecom and ICT Policy Advocacy Platform (TIPAP) and the Voice of Reform, at BDBL Bhaban in Karwan Bazar.

Moderated by TIPAP co-convener Fahim Mashroor, the seminar featured a keynote presentation, titled “Removal of Voice Floor Price: Paving the Way for Digital Progress in Bangladesh” by Mahtab Uddin Ahmed, former managing director of Robi.

“When the floor was introduced in August 2018, 4G had just been launched, only 18 percent of the population used the internet, and smartphone household penetration was around 28 percent,” said Ahmed, a telecom consultant.

“Now 4G covers nearly 100 percent of the country, 5G trials are underway, and household smartphone ownership has risen to 72.8 percent. The rationale for maintaining the floor price has completely expired.”

He noted that Bangladesh remains one of the few countries globally still enforcing such a minimum rate, adding that it disproportionately affects rural and low-income users who cannot access free internet-based voice services like WhatsApp or other OTT platforms.

Ahmed presented data showing that the floor price adds roughly Tk 387 crore in monthly revenue to operators, largely at the expense of ordinary citizens.

“The bulk of this revenue has come from the lower-income population, who still rely heavily on traditional voice calls,” he said.

Using figures from the fiscal year 2023-24 (FY24), Mahtab pointed out that Grameenphone posted a 60 percent earnings before the deduction of interest, taxes, depreciation and amortisation (EBITDA), a financial metric used to evaluate a company’s core operating performance and cash flow margin.

Robi’s EBITDA was 51.1 percent, and Banglalink’s was around 43-44 percent.

“Operators are profiting; citizens are not,” he said.

Ahmed proposed a six-point reform roadmap, including a gradual reduction of the voice floor from Tk 0.45 to Tk 0.00 by the end of 2026, with quarterly reductions of Tk 0.15. Fahim Mashroor highlighted the broader implications of the minimum voice call rate for Bangladesh’s digital economy.

“Millions of citizens, particularly in rural areas, are paying above-market rates for basic voice calls. Gradual removal of the floor, with proper safeguards, is not a threat to the industry-- it is the most consequential regulatory reform we can make to expand digital inclusion, empower fintech, and enhance regional competitiveness,” he said.

Mohammad Farhan Alam, assistant director of the systems and services division of the Bangladesh Telecommunication Regulatory Commission (BTRC), supported the call for a careful, phased approach.

“A cost review has not been conducted since 2018,” he said.

“Gradual removal [of the voice floor price] will benefit consumers while giving operators time to adjust.”

Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata, suggested that a comprehensive cost study should be conducted before removing the voice floor price.