June 3, 2009

BTRC Guidelines: Internet Protocol Telephony Service Provider License

Recently BTRC has published Guidelines, intended to provide an overview of the licensing and regulatory framework for Applicant(s) seeking to obtain a License to provide and operate Internet Protocol Telephony Service in Bangladesh. These Guidelines have been prepared to facilitate the introduction of Internet Protocol Telephony (IP Telephony) in Bangladesh. The objectives are to provide easy and affordable telecommunication services to the common people of the country by introducing and promoting IP Telephony. Also to sustain already grown young entrepreneurs and to grow more such entrepreneurs in the rural areas thereby solving unemployment problem to a great extent.

“IP Telephony” allows voice traffic as well as different types of data services to travel over data networks. The voice traffic can go over the Internet, Managed Network or Privately Owned Data Network.

License will be issued only to the ISP License holders except PSTN / PLMN operators having ISP License. This License will be termed as Internet Protocol Telephony Service Provider (IPTSP) License.


IPTSP Licensee will provide international and domestic voice calls over IP based Internet and/or managed IP based network(s). IPTSP Licensee will provide PC to Phone, Phone to PC, Phone to Phone or any other usages based on IP Telephony voice service to subscribers. They will also provide Internet Services as per the condition of ISP License and shall be responsible for installation, testing and commissioning of all the equipment to provide the service. The Licensee shall start providing the service to its subscribers within 6 (six) months of issuance of the License and shall inform the Commission, in writing, the proposed date of commissioning the service at least 15 (fifteen) days ahead.


There will be Nationwide IPTSP License and Zonal IPTSP License. Nationwide IPTSP Licensee will provide IP Telephony connections to the subscribers throughout the country. Zonal IPTSP Licensee will provide IP Telephony connections to the subscribers in the respective zone only. The Licensing procedure for IP Telephony Services will be an open Licensing procedure. Depending on the requirement, eligibility, terms and conditions of the guidelines the Commission will issue IPTSP License to the Applicants.


The IPTSP License shall remain valid for 15 (fifteen) years. Upon expiry of the initial term (15 years from the date of issuance of License), the License may be renewed for subsequent terms, each of 5 (five) years in duration, subject to the approval from the Commission and to such conditions, including the terms and conditions of the License and the payment


IPTSP operators will ensure inter-operability and associate inter-networking compatibility with the PSTN operators, Mobile operators and other voice service providers in that of addressing, in particular for calling an IP Telephone from a PSTN Telephone, Mobile Phone, other voice service providers, PC and vice-versa. IP Telephony services must be interoperable with the existing and NGN technologies and equipment. The Licensee shall design and maintain its IP Telephony network(s) in accordance with directions issued by the Commission and shall comply with interoperability and other technical standards prescribed by the Commission. The
Licensee shall not connect to the systems, any equipment or system(s) that does not comply with the national standards for telecommunication apparatus set by the Commission.


1. Application Fee Tk. 5000.00 [Five Thousand]
2. License Acquisition Fee
Nationwide: Tk. 10,00,000.00 [Ten Lac]
Central Zone: Tk. 8,00,000.00 [Eight Lac]
Other Zone: Tk. 2,00,000.00 [Two Lac]
3. Annual License Fee
(From 2nd year)
Nationwide: Tk. 5,00,000.00 [Five Lac]
Central Zone: Tk. 4,00,000.00 [Four Lac]
Other Zone: Tk. 1,00,000.00 [One Lac]
4. Revenue Sharing
(From 3rd year)
2% of Annual Gross Revenue (AGR)
5. Performance Bank Guarantee
Nationwide: Tk. 10,00,000.00 [Ten Lac]
Central Zone: Tk. 8,00,000.00 [Eight Lac]
Other Zone: Tk. 2,00,000.00 [Two Lac]

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