Telcos' call volumes rise despite focus on data

Mobile call volumes rose 16.91 percent in 2014-15 from the previous fiscal year, despite a heavy marketing focus on data usage, BTRC data shows.

The volume of calls -- international and local -- was 26,416.84 crore minutes in 2014-15, rising from 22,596.18 crore minutes in 2013-14, according to Bangladesh Telecommunication Regulatory Commission.

However, the operators' earnings from the segment eroded despite growth in call volumes, according to industry insiders.

Market leader Grameenphone, in its third quarter report, said there was 10.6 percent year-on-year growth in the operator's outbound call minutes in the first nine months, but revenue from voice was down 3.1 percent. 

Rajeev Sethi, chief executive of Grameenphone, had earlier said that the company expects growth in voice call minutes in the next few years. 

“Even though the fastest data service was launched in Bangladesh about two years ago, it will still take some time to take lead over the voice-call segment, which will probably dominate the business for the next five years.”

Calls within Bangladesh increased 12.23 percent to 23,125.5 crore minutes in 2014-15, from 20,606.25 crore minutes in the previous year.

Intra-operator calls grew to 16,850.82 crore minutes last fiscal year, from 15,615.69 crore minutes in 2013-14. 

The number of mobile users is on the rise, which also led to growth in call minutes, as well as a fall in the price of calls.

“The voice call market still has huge untapped potential, and we are trying to grab it,” said PD Sarma, chief executive of Airtel.

That is why call volumes are increasing even today, along with a hike in internet usage, said Sarma. 

There was 65.5 percent growth in incoming international calls last fiscal year, the BTRC said.

In September 2013, the incoming international call termination rate was halved to $0.15, and call volumes immediately jumped, which led to an increase in total minutes; but the government's revenue declined.

In 2013-14, the incoming international call volume was 1,956.57 crore minutes, which increased to 3,293.34 crore minutes last fiscal year, according to the BTRC.

“The government can say that most international voice calls are now terminated legally due to the price cut, but this also diminished our revenue,” said a senior official of BTRC.

The outbound international call volume was nearly unchanged at 33.46 crore minutes in 2014-15.

Many people are now also using various mobile applications to communicate, which has significantly cut the call volume.