While phone companies around the world are enjoying a steep business rise, the BTTB's annual earning from foreign calls dropped by Tk 135 crore in fiscal 2005-06 from that in 2001-02.

All the while, the business of more than 100 illegal Voice over Internet Protocol (VoIP) expanded beyond control. Industry insiders say various political beneficiaries are running this business in connivance with a section of employees of leading mobile phone operators and of the BTTB).

Over 70 ISP licence holders, who are paying annual licence fees to Bangladesh Telecom Regulatory Commission (BTRC) without having any valid business or tax records, are also running this operation. The BTRC's dealing with this matter also raises questions about its role in this business.

While illegal VoIP operation has made foreign calls cheaper than ever much to the delight of the consumers, VoIP operators were involved in laundering hundreds of crores of taka every month, draining away the lifeblood of the national economy, sources said.

This loss is visible in the records of the BTTB.

The BTTB's revenue earning of Tk 1,583 crore in 2001-02 dropped to Tk 1,316 crore in 2005-06, official data shows. This drop was gradual.

Again, the BTTB's earning from overseas calls drastically dropped to Tk 244 crore in 2005-06 from Tk 379 crore in 2001-02.

At the same time, revenue expenditure of the BTTB shot up to Tk 826 crore in 05-06 from 463 crore in 2001-02. Part of this sum was spent to procure equipment which were illegally and secretly sold out to illegal VoIP operators, industry insiders say.

"These operators practically grew at the cost of government money," noted an industry insider.

But now, as the Rapid Action Battalion (Rab) has launched the first ever drive against this illegal business, things have already started to change.

A market operator said on the international call exchange market, the call rate per minute that was US 2.25 cents a week ago has shot up to four cents. This rate will spiral up further, and in case the Rab drive continues, the BTTB will regain full control of the international call market.

Without specifying the numbers, a BTTB official also said its international call frequency has increased overnight.

The Rab busted over a dozen illegal VoIP establishments in the last two weeks but it could not arrest any kingpins.

According to Rab sources, in all the cases they have recovered telecom devices of the leading mobile phone operators, especially that of City Cell and Banglalink.

These devices include special SIM cards, each of which cost Tk 25,000 or more. "However, these equipment can be purchased by anyone. So, we cannot say City Cell or Banglalink are involved in this racket," said a Rab official involved in the drive.

He claimed that all Internet Service Providers (ISPs) have been involved in this racket. But the ISP operators say that out of 225 ISPs, 75 just maintain their licensing status by paying annual fees.

"Of these 75 (ISPs), 65 have special telephone numbers (0101) and the rest have broadband. A few of them may be owned by some rich men who want to do something in future. They can afford the luxury of paying annual licence fees. But what about the rest? Why do they keep on paying fees if they don't have a visible business? Why does the BTRC allow them to keep their licences?," said an official of Bangladesh ISP Association.

The BTRC late in 2003 announced legalisation of VoIP and said it will issue licences in early 2004. But it sat on the matter mysteriously till mid last year and issued more than 51 licences. Again, a deprived applicant sued the BTRC for being arbitrary in its decision, and the High Court stayed this licensing process.