Non-operating revenue from FDRs, which stood at Tk168 crore in FY23 and Tk170 crore in FY22, continues to be the crutch supporting the organisation’s backside line
Infograph: TBS
“>
Infograph: TBS
Abstract:
- TCL’s internet revenue surged to Tk67 crore in FY24.
- Revenue primarily pushed by Tk2,200 crore in mounted deposits.
- Working lack of Tk132 crore because of excessive bills.
- Administrative prices hit Tk400 crore, together with Tk299 crore in salaries.
- IGW and phone service revenues dropped by 12% and 13%.
The state-owned Bangladesh Telecommunication Firm Restricted (BTCL) reported a internet revenue of Tk67 crore in fiscal 2023-24 – practically 5 instances greater than the earlier yr and over 11 instances that in FY22. Nevertheless, this outstanding development owes little to operational effectivity or service income and is primarily attributed to revenue generated from mounted deposits in banks.
Consultants even recommend that the BTCL would have seen a staggering revenue of over Tk200 crore if it had completely ceased its operations.
How does this paradox come up? The monetary report reveals that BTCL’s whole income for FY24 stood at Tk774.69 crore, a modest 4% enhance from the earlier yr. However this was overshadowed by an awesome expenditure of Tk907 crore, leading to an working lack of Tk132 crore.
A more in-depth take a look at the bills paints a worrying image. Administrative prices alone accounted for practically Tk400 crore, with Tk299 crore allotted for salaries, allowances, and advantages for its workers, and Tk105 crore for basic administrative bills. One other Tk280 crore was spent on service provision, highlighting the inefficiencies of the organisation.
Regardless of this, the BTCL managed to report a revenue, primarily because of its non-operating revenue, which totalled Tk206 crore, pushed by Tk2,200 crore mounted deposit receipts (FDRs). This marks a 362% enhance in internet revenue in comparison with the earlier yr, benefiting from greater rates of interest provided by banks amid a liquidity crunch and hovering inflation that prompted the central financial institution to lift the coverage fee to 10%.
Officers now say to remain aggressive, the corporate has undertaken initiatives resembling enhancing web providers alongside phone providers, leasing capability, and buying bulk web from Bangladesh Submarine Cables to promote on to prospects
In the meantime, BTCL’s core enterprise operations stay deeply flawed. Income from key segments – worldwide gateway (IGW), phone providers, and value-added providers – has continued to say no. IGW income dropped by 12% to Tk216 crore, and income from phone providers plummeted by 13% to Tk94 crore. On the brighter facet, capability leasing income soared by 81% to Tk160 crore, and web and knowledge service income noticed an 8% development to Tk245 crore.
At the same time as working losses declined barely from Tk146 crore in FY23 to Tk132 crore in FY24, the general image means that BTCL’s enterprise mannequin stays unsustainable. Non-operating revenue from FDRs, which stood at Tk168 crore in FY23 and Tk170 crore in FY22, continues to be the crutch supporting the organisation’s backside line.
“Troubling actuality”
Trade insiders and specialists say BTCL’s reliance on monetary devices relatively than core operations underscores a troubling actuality. It has but to adapt to a quickly altering telecom panorama, the place non-public gamers have seized the market with superior providers and aggressive pricing.
Mustafa Mahmud Hussain, a telecom coverage analyst, instructed the Enterprise Commonplace, “For income development, BTCL must increase broadband providers, monetise its infrastructure, goal enterprises, and launch digital providers resembling IoT (Web of Issues) and cloud options.”
He emphasised the necessity for strategic value optimisation, which incorporates sharing infrastructure, streamlining the workforce, automating operations, and restructuring debt whereas optimising taxes.
He additionally really helpful a number of strategic initiatives, resembling pushing for regulatory reduction, accelerating the rollout of 5G, and forming international partnerships.
Hussain highlighted that BTCL has sources that no different main cellular operator possesses. “If these sources are utilised successfully, BTCL may turn into worthwhile,” he famous.
He identified that BTCL has launched GPON– high-speed broadband entry to properties and companies – at a value of hundreds of thousands of taka, which holds the potential for sturdy income era. Nevertheless, regardless of this, non-public corporations have discovered success, whereas BTCL has struggled.
Moreover, he recommended that BTCL’s in depth infrastructure, together with towers used for phone and web providers, might be shared with non-public corporations or overseas establishments to generate substantial earnings. This, he believes, may present a key avenue for development, tapping into underutilised belongings.
Officers say till 2008, the BTCL loved regular earnings working a monopoly enterprise for landline telephones and worldwide voice name providers. Its fortunes have since declined as folks more and more turned to smartphones and cellular web over the previous twenty years.
Through the time, many private-sector telecom and web service suppliers within the nation have flourished, whereas the BTCL, regardless of having the required infrastructure and coverage assist, has continued to undergo from persistent losses.
Poor service high quality, billing points for inactive connections, and a scarcity of technological growth additionally contributed to the decline.
BTCL tries to return again
Officers now say to remain aggressive, the corporate has undertaken initiatives resembling enhancing web providers alongside phone providers, leasing capability, and buying bulk web from Bangladesh Submarine Cables to promote on to prospects.
“We now have launched a number of initiatives by product diversification, which we anticipate will yield constructive outcomes sooner or later and additional enhance the corporate’s income,” Ali Akkas, BTCL’s deputy basic supervisor, instructed TBS.
He mentioned, “The administration has taken a number of initiatives which have performed a key position in growing the corporate’s income. Moreover, with the rise in rates of interest, revenue from FDRs has elevated, permitting the corporate to attain good revenue total.”
Web market grows 4,000 instances
Based on latest reviews, Bangladesh’s web market has grown 4,000-fold over the previous two and a half a long time.
What was a Tk6 crore annual market in 1996 – working at a most velocity of 64 kbps – has now expanded to Tk24,000 crore, with a capability of two,400 Gbps.
Based on a report by Mordor Intelligence, a world market analysis agency, Bangladesh telecom market dimension is estimated at $5.08 billion in 2025, and is anticipated to achieve $6.27 billion by 2030, with a compound annual development fee (CAGR) of 4.31% in the course of the forecast interval (2024–2030).
Key gamers like Robi Axiata, Grameenphone and Banglalink presently dominate the nation’s telecom panorama. The trade has skilled vital development, pushed by rising cellular penetration, an increasing web consumer base, and elevated 4G protection.
Based on the Bangladesh Telecommunication Regulatory Fee (BTRC), as of November 2024, the nation had 18.88 crore cell phone customers and 13.28 crore web customers.
Following Bangladesh’s emergence as a sovereign nation in 1971, the Bangladesh Telegraph & Phone Board (BTTB) was based. On 1 July 2008, the BTTB turned a public restricted firm and was renamed as BTCL.
BTCL gives providers resembling telegraph, native phone networks, nationwide dialling (NWD), worldwide phone name services, worldwide circuit leasing, worldwide maritime satellite tv for pc communication, and web and knowledge providers.
Landline connections hit all-time low
Regardless of a latest surge in earnings, the core enterprise of BTCL – landline phone connections – has been steadily declining.
Based on BTCL knowledge, the variety of phone connections has been reducing constantly since FY11. Whereas the corporate had over 10 lakh connections earlier, the determine has now dropped to only over three lakhs.
As of June 2024, phone connections hit a report low of three.29 lakh, based on BTCL officers. In only one yr, the variety of connections dropped by 1.23 lakh, down from 4.52 lakh in FY23.
BTCL officers acknowledged that the decline in phone connections is as a result of ease of communication through cellphones and the growth of app-based communication methods.
Additionally they identified that the mounted value related to acquiring a phone connection has made many individuals much less keen on subscribing.
Md Anwar Hossain, managing director of BTCL, instructed TBS, “A number of measures have contributed to the rise within the firm’s income. The administration has additionally offered directives to additional enhance earnings.”
Nevertheless, he didn’t reply to the query concerning why the variety of connections has declined.
Sitting on belongings value Tk58,000 crore
Based on the annual report, the corporate holds belongings totalling round Tk70,000 crore. After accounting for depreciation of Tk12,195 crore, the overall belongings stand at Tk57,950 crore.
Amongst these, land holds the best worth, estimated at Tk50,000 crore.
The written-down worth of land is Tk28,058 crore, however its revaluation has elevated its worth by an extra Tk28,150 crore. In whole, the corporate’s land belongings are value practically Tk56,000 crore.
The worth of BTCL’s buildings is round Tk1,000 crore, whereas the belongings associated to change gear, transmission, and outdoors plant are valued at roughly Tk12,000 crore.
Going through technological adjustments
Based on its officers, BTCL has been considerably impacted by speedy technological adjustments, with the widespread use of cellphones and web entry posing a significant problem for the corporate.
To outlive within the enterprise, BTCL has diversified its operations by adopting technology-based providers. In an effort to make landline connections worthwhile, the corporate launched the Gigabit Passive Optical Community (GPON) service, which gives web and phone providers by optical fibre, enabling prospects to entry Triple Play (video, voice, and knowledge) providers.
As well as, BTCL launched its personal over-the-top (OTT) calling utility, “Alaap”, to compete with overseas OTTs like WhatsApp, IMO, and Viber.
As a part of its product diversification, BTCL expanded into knowledge and web providers. In FY18, income from knowledge and web providers was solely Tk99.23 crore. Nevertheless, after six years, revenue from this phase has grown to Tk245 crore in FY24.
