Attempts to hike mobile data tariff unexpected

Of course, building, operating and providing services in the mobile network industry involve large investments and expenditures. But on what criteria the sale price of the service is being determined against the cost of goods, it is unknown and unclear to the common customer. That applies to both voice calls and mobile internet, in both areas. In the case of voice calls, the maximum and minimum prices are fixed on the basis of a standard, but in the case of mobile internet packages, it is still unknown whether there is any standard other than the maximum profit figure of the operators. The telecom sector regulator BTRC has tried several times for setting up a 'cost modeling' in the case of mobile internet, but it has not been successful in the end. It is not clear why this initiative was not successful.

Due to the absence of 'cost modeling,' mobile operators have taken advantage of a kind of anarchy in determining mobile internet packages. Particularly for short-term, small packages have been designated in a manner that ensures the operators' revenue regardless of whether customers receive the desired service or not. A few days ago, when BTRC released three and 15-day data packages, the officials of several mobile operators claimed that almost 70 percent of their total internet customers were using three-day packages. Let's mention one thing here, every month BTRC reveals the number of subscribers of mobile operators in the country. Similarly, it also reveals the number of mobile and broadband internet subscribers in the country.

But the number of internet or data package subscribers of mobile operators is not disclosed there. Mobile operators also surpass the statistics of data customers in their financial statements for every three months. The reason behind this avoiding is to hide the issue of higher profits in less time due to anarchy in pricing of data packages.

Anyway, let's analyze a calculation based on the published statistics of BTRC: Why such an outcry from mobile operators when the three-day package business is discontinued? According to the latest statistics of BTRC, the total number of mobile internet subscribers in the country till last September was 11 crore 97 lakh 70 thousand. Since there is no breakdown of how many data package subscribers each operator has, we are presenting this calculation here as a general estimate of total mobile internet customers.

Let's assume, in the case of mobile internet, if the price of a 1 GB package for three days is Tk 20. According to the demands of the officials of the mobile operators, among the total of 11 crore 97 lakh 70 thousand customers, 8 crore 38 lakh 39 thousand customers choose the three-day package. To make the calculation easy to understand, let's consider an even smaller number of customers. Suppose 5 crore customers choose the 1 GB package for Tk 20 Taka with a three-day validity. In this scenario, every three-day, 5 crore customers collectively spend or contribute Tk 100 crore to the mobile operators for mobile internet services. Calculating the monthly income at Tk 100 crore for 10 times, mobile operators are assured of a definite revenue of Tk 1000 per month. This revenue is generated solely from the three-day packages. And for buying the three-day package 10 times, customers spent Tk 200 for the 10 GB package per month. Instead of a three-day period, even if a package of Tk 200 was given for 10 GB data for a period of 30 days, the income of the mobile operators would have been Tk 1000 crore in simple numbers. But, the figures are not straightforward; there are complexities involved.

n the case of the three-day package, mobile operators can secure at least 100 crore Taka in their accounts within three days. With a three-day validity, whether the customer uses 1 GB of data or not, there is no claim or demand from the customer. In the case of a three-day package, most of the customers take the package without thinking because the price is apparently lower. But if the package price is Tk 200 per month, many customers will consider taking it. This is because managing monthly expenses is the most intricate aspect of household finances. For example, you don't think too much about paying a bill of Tk 10,000 together to eat a meal in a good quality restaurant with your family, but spending Tk 5000 together in the kitchen market for monthly groceries can feel much more burdensome!

Mobile operators have grasped this mindset very well. Anyone who feels the need can quickly buy a three-day package due to the low amount of money. But, when it comes to monthly packages, customers are less likely to make hasty decisions. Even with a moment's reflection, they might choose to get more data or opt for a smaller data package. Because of this, the mobile operators also have to be in some uncertainty with the revenue income of Tk 1000 crore per month instead of the guaranteed business of Tk 100 crore in three days.

Therefore, you can understand why there is so much uproar among mobile operators over the discontinuation of the three-day package! Another advantage is the three-day package. The customer has no complaints about returning the unused data of the Tk 20 package. But the customer must be aware of the return of unused data of Tk 200 per month package, creating an additional pressure for the operators.

Although "some packages of special offers come forward when a customer's internet expires, and the condition for each of them is that unused data will not be added. Seeing 'special offer' written on anything, the mind feels as if it knows the undisclosed condition. Without looking at the terms, we buy it in haste. Again, for adding unused data to the regular package, separate conditions are written in the letter 'temporary'. So you forget about the terms and conditions and give importance to the "Special Offer".

By discontinuing the 3-day and 15-day packages and reducing the number of packages from 95 to 40, BTRC has taken a truly customer-friendly decision. Now if customers want to retain they have to pay logical package for one month period. For those who want a shorter duration, they can opt for a seven-day duration package.

Unfortunately, due to the closure of the business of the three-day package, other operators in the country, aside from the state-owned company Teletalk, have taken unethical steps such as artificially increasing the prices of mobile internet. They have increased the price by adjusting the day count in determining the data amount of the three-day package for a period of seven days. This has been done only to anger the ordinary customers, so that BTRC will be forced to re-introduce the three-day package under customer pressure. In reality, ordinary customers are pleased with the BTRC's stance on this matter, while dissatisfaction has grown towards the mobile operators because most of the customers of the three-day package are young. It surprises me why the smart officials of the operators misunderstand the height of 'smartness' this generation has achieved so far.

We know and must acknowledge the utmost contributions of mobile operators in the progress of Digital Bangladesh. The government has prepared the field in various ways. Digital networks across the country have been built by mobile operators Utilizing those fields.  However, there have been challenges in some cases like higher price of Spectrum, unpredictable taxation policy and regulation. Despite these complexities, three mobile operators, managed with foreign investments, have not lagged behind in establishing nationwide networks. Standing on the foundation of mobile networks, financial transactions through mobile phones in the country have reached the grassroots like a revolutionary digital service. Various types of government services have reached people's homes. Skilled manpower has also been created in information technology under the support of mobile operators. That's why mobile operators should be appreciated. Even earlier many government decisions have been unfavorable for the business of mobile operators. At that time, they also argued for a reversal of that decision. Experts, analysts also stand for their argument. Acceptable solutions to the problems have been found.

However, it is unfortunate that this time, in an attempt to bring back the three-day package, the three mobile operators have increased the price of the seven-day package arbitrarily, potentially causing dissatisfaction among customers.

One thing thing must be remembered, there is no substitute for rational 'cost modelling' for mobile internet. This 'cost modelling' is the responsibility of the regulatory body. If the price of 1 GB data or unlimited data for one day is fixed without fixing any period, the mobile operators will not have any opportunity for such exploits. If a commitment to price discipline can be established for broadband internet services provided by Internet Service Providers (ISPs), why not in the case of mobile Internet packages?

Rased Mehedi:Journalist,  Telecom and ICT  sector analyst