IGW cartel plunders whopping Tk 80b

A politically pampered powerful nexus of international gateway (IGW) operators looted over Tk 80 billion or Tk 8,000 crore from the ICT sector over the past nine years, ministry high-ups said Monday.

"At the core of the scandal lies the IGW Operators Forum (IOF), a cartel of seven IGW operators allegedly led by former prime ministerial adviser Salman F Rahman," said Fayez Ahmad Tayyab, Special Assistant to the Chief Adviser of the post-uprising government.

Formed in 2013, the IOF monopolised international call termination through a so-called "pilot phase" that suspiciously lasted over 12 years. During this period, mobile operators were barred from directly handling international calls, handing over control -- and profits -- to the Forum.

Although the IOF charged up to $0.03 per minute, they declared revenue of only $0.006. By 2024, the actual market rate had dropped to just $0.001, yet IOF continued to underreport income at $0.0004 per minute, as stated in the findings.

"According to BTRC estimates, this manipulation cost the government over Tk 8,000 crore in lost revenue -- money pocketed by the cartel," Mr Tayyab told a media briefing in Dhaka.

Similarly, Interconnection Exchange (ICX) and other toll-based operators, many of whom invested less than Tk 100 million, extracted billions with little or no contribution to telecom infrastructure. These entities acted as middlemen, adding layers of cost while providing minimal value.

As unveiled, ICX operators, for example, earned Tk 3.0-4.0 billion and Tk 6.31 billion was collected through Market Development Fees (MDF) under the IOF mechanism -- 95 per cent of which reportedly passed through Beximco Computers, further raising conflict-of-interest concerns, the Special Assistant told reporters.

Allegations run further that the roots of this systemic corruption trace back to the 2010 ILDTS (International Long-Distance Telecommunications Services) policy, crafted under the Awami League government.

This policy aggressively curtailed the role of mobile-network operators and instead granted licences to politically linked firms across 29 categories, including IGW, ICX, IOF, NIX, and IIG.

By 2024, BTRC had issued a staggering 3,573 licences-most of them to loyalists to the ruling regime.

"These companies operated as toll collectors, not service providers," a BTRC official told reporters.

"They added no value to customers but walked away with massive profits. This has created a warped, anti-competitive ecosystem."

Despite mounting pressure from international regulatory bodies such as the ITU and GSMA since 2015, the Awami League government had turned a blind eye to demands for simplifying and modernizing the telecom-licensing framework, ICT ministry officials said.

The Special Assistant to the Chief Adviser on telecoms affairs brushed aside the allegations of corruption raised against him and the ministry in a section of media.

Mr Tayyab stated that the project centering which the allegations were raised is being carried out with total transparency.

He said the project, undertaken by the state-owned Bangladesh Telecommunications Company Limited (BTCL) was launched to expand its capacity and network and an LC worth TK2900 million was already opened for equipment purchase.

For BTCL, he said, the network upgrading is crucial as its competitors are enhancing their capacities in a huge way to cater the future demand.

About his reported letter to the Anti-Corruption Commission he said. "I have written to the ACC Chairman that if the project is not implemented, the government would not only lose TK 6000 million, the BTCL will also be out of the market for its poor capacity and network."

He mentions that the equipment is being supplied by the lowest bidders and the specifications are being certified by BUET experts.

According to the Special Assistant, the telecoms syndicate which plundered the sector during the previous regime is spreading propaganda against him and the ministry in a bid to malign him.

"I condemn this ill effort and I want to make it clear that the present government has the moral strength to carry on the reform in this sector to dismantle the syndicate, which illegally plundered public money with the backing of the past fascist regime," he told the press.

He said the fall of the Awami League government in August 2024 paved the way for a wave of reforms under the interim administration. BTRC, in coordination with the Ministry of Posts and Telecommunications, is now in the final stages of introducing "Telecom Network and Licensing Reform Policy 2025".

The cleanup recipe aims to dismantle redundant layers such as ICX and IOF, simplify the licensing regime into a three-tier structure, promote SME-and ISP-friendly licensing with light-touch regulation, cap foreign ownership (49 per cent international, 55-60 per cent national), to liberalise fiber infrastructure and remove 'monopolies' and to reduce intermediaries from 6-7 to just 3 layers.

BTRC has also imposed stringent conditions on defaulting licence- holders. These include bans on share transfers, changes in ownership, company-name alterations, and licence renewals unless 50 per cent of outstanding dues are paid upfront, with the rest to be cleared within 6-12 months.

The regulator has already announced that ICX and IGW licences set to expire in 2027 will not be renewed, signalling the beginning of a new era in Bangladesh's telecoms sector, he said.

"Unsurprisingly, these reforms have met resistance. The beneficiaries of the old regime are actively trying to block reforms," said a telecom- policy analyst. "They've formed syndicates to protect their interests and prevent new entrants from entering the market."

He pointed out that critics of the reform -- "many unknowingly aligned with corrupt legacy operators" -- have questioned the government's aggressive moves. But BTRC remains firm that the licensing overhaul is essential for democratising the telecoms landscape.

"One of the most direct consequences of the syndicate-run telecom regime has been inflated costs for consumers. For example, ICX operators added an unnecessary 5 paisa per minute to domestic call charges-money that could have been saved or reinvested in infrastructure."

The upcoming policy intends to pass these savings on to end-users by reducing toll costs, promoting competition, and encouraging direct international connectivity by mobile operators, he added about the cleansing of the telecoms sector, widely considered a money-spinner.

The reform process will be anchored by three strategic pillars: a new Telecom Policy, a revised Telecom Act, and a comprehensive Quality of Service Framework.

The Bangladesh Telecommunications Regulatory Authority or BTRC has also launched public complaint channels such as the Telecom White Paper and the ICT White Paper Committee, where stakeholders can report irregularities in recruitment, licence transfers, and corruption, the Special Assistant stated.

mirmostafiz@yahoo.com