Jalalabad Telecom Limited has planned to provide fixed phone services to its subscribers with the latest technology

view with charts and images

Jalalabad Telecom Limited has planned to provide fixed phone services to its subscribers with the latest technology.


1.1 Birth of Jalalabad Telecom Limited

With a view to operate business in telecommunication services, Jalalabad Telecom Limited (JTL) was registered on November 2002 as a private limited company (C-47651 with the Registrar of Joint Stock Companies & Firms, Bangladesh under the ambit of the Companies Act, 1994),

1.2 License from BTRC

JTL was awarded PSTN (Fixed Phone) License on June 22, 2004 by Bangladesh Telecommunication Regulatory Commission (BTRC) for providing fixed phone services in 16 districts of North-East Zone of Bangladesh covering about one-fourth area of the country. These 16 districts are excluding district headquuarter of Dhaka, Narayanganj, and Gazipur.

  1. Sylhet,
  2. Sunamganj,
  3. Habiganj,
  4. Moulavibazar,
  5. Sheipur,
  6. Jamalpur,
  7. Netrakona,
  8. Mymensingh,
  9. Keshorganj,
  10. Tangail,
  11. Munshiganj,
  12. Manikganj,
  13. Narsingdi
  14. Dhaka
  15. Narangonj
  16. Gazipur

1.3 Management & Organogram

In order to ensure result oriented operation in various departments of JTL: Technical, – Marketing, Customer Service, Finance & Accounts, Revenue and Administration, appropriate management structure has been developed.

The figure 1-1 below demonstrates the organogram and management structure of JTL that depicts the chain of command among the officers.

GM (F & A)
DGM (Eng)
DGM (P & D)
Marketing Manager


2.1 Principle Activities of the Company

The principal activities of the company are to set up telecommunication system, install telephone exchange in Bangladesh and to carry out telecom operations with joint, local or foreign collaboration for the purpose of new connections and expansion of telecommunication network in the North Last Zone’s district area licensed by the regulatory authority – . ‘Bangladesh ‘telecommunication Regulatory Commission (BTRC). The Company commenced its commercial operation from 16 June 2005.

2.2 Contract signing with telecom equipment supplier

Contract for Switching & Fiber Optic Transmission System

The first contract was signed with Huawei Tech. Investment Co. Limited on 24″‘ October, 2004 for Design, Supply, Installation, Testing, Commissioning of Switch & Optical Transmission System at Sylhet city. Under this contract, Huawei supplied JTL digital switching system for 10,000 lines CLL network in Sylhet city. Capacity of the switch is expandable to 30,000 lines. Supplied fiber optic transmission system provides STM-4 transmission capacity (upgrade able up to STM-16) in the backbone ring carrier system in Sylhet city.

Contract for CDMA WLL Equipment

On February 02, 2005 second contract has been reached with Huawei Tech. Investment Co. Limited for design, supply, installation, testing & commissioning of Switch & CDMA WLL system, Under this contract Huawei is to supply equipments for development of CDMA WLL network in greater Sylhet, greater Dhaka (excluding metropolitan area), and greater Mymensingh region. JTL plans to install CDMA access network for 58,000 subscribers in first phase of its project implementation. Under this Contract, Huawei so far supplied I BSC, 6 BTSs, 1 set CNET (MSU expansion), 1 set PDSN equipment, 1 set OMM equipment, 1 set standard IN equipment, SMS equipment, and VMS equipment.

Contract for Microwave Transmission Equipment

JTL entered into agreement with Stratex Networks INC, USA on 10″‘ March, 2005 for Survey, Planning, Design, Supply, Installation, Testing & Commissioning of Microwave Transmission System. Under this contract Stratex supplied 19 Microwave links for establishing transmission network.

2.3 Out Side Plant (OSP)

Copper Cable Network

Outside Plant work for building of copper cable network includes plan for cable network, supply of primary cable, secondary, cable, cabinet, DP (distribution point) & other accessories and installation of copper cable, cabinet, DP & accessories. Actually, OSP for copper cable system has been started from September, 2004. Underground cable including overhead secondary cable, cabinet & DP etc. has been planned for the locations of Zindabazar, Amberkhana, Shibganj & Moulavibazar. OSP work in Zindabazar area was completed by March, 2005. Works at Shibganj & Amberkhana completed by June, 2005. Cable work at Moulavibazar will be completed within one month.

Fiber Optic cable Network

As per plan to build fiber optic ring transmission network for communicating traffic between RSUs & BTSs (installed at Shibganj, Amberkhana at Sylhet ) with MSU & BSC (installed at Zindabazar, Sylhet), fiber optic cable has been supplied from Huawei. Local contractor completed installation of fiber optic cable running through the PDB poles by April, 2005. The total running length of the fiber cable is about 18 kin. Later, two spur fiber optic links — one from JTL MSU, Zindabazar connecting to BTTB TAX, Taltala, Sylhet, another one from Amberkhana to Akhali for connecting the BTS & RIM installed therewith MSU, Zindabazar have been extended.

2.4 Installation, Testing Commissioning of Main Switching Unit (MSU)

Switching equipment has been supplied from Huawei in November, 2004. The MSU cum local switch was installed at Zindabazar, Sylhet site. This is the first project implementation of JTL for establishing landline telephone system in Sylhet city. Under this project, MSU for initial capacity of 10,000 lines has been installed by Huawei at Zindabazar in Decemaber, 2004. Remote switching units (RSU) each having capacity of 2500 lines have also been installed in Shibganj, Amberkhana of Sylliet city. MSU controls and manages RSUs. MSU itself has local connectivity capacity with 2500 lines.

Later another RSU of same 2500 lines has been installed in Moulavibazar.

2.5 Commercial operation for Fixed Phone service

JTL has launched the commercial operation of its Fixed Phone Services with the brand name BIJOY PHONE on June 16, 2005 in Sylhet city. Its services were later expanded to Tajpur, Sreemongal and Moulavibazar town. CLL network has been developed to provide fixed phone services in the densely populated cities / towns while WLL network has been established for meeting telephone demands for population living in remote areas (sub-urban & rural areas).

Line connections are being given to subscribers in Sylhet city and Moulavibazar district. Few other thanas of Sylhet district are in the process of coming into the CDMA WLL network coverage under proposed BTS in those areas.

The existing network and customers are in Greater Sylhet region. All the technical, customer care, marketing/sales and revenue services to them are being run in Sylhet city under the regional office at Zindabazar, Sylhet. The company’s Finance, Billing and Operations activities are kept directly under the corporate office in Dhaka.

2.6 Installation, testing and commissioning of CDMA WLL System

In order to expand JTL’s PSTN network by providing CDMA wireless services, CDMA WLL network equipments have been supplied from Huawei in June 2005.

Core CDMA network equipments – BSC, OMM, and PDSN have been installed in Zindabazar site. 3 BTSs have been installed at Shibganj (3000 lines), Amberkhana (2500 lines) & Akhali (3000 lines). These 3 BTSs provide a total capacity of 8,500 connections in Sylhet city. Installation, testing and commissioning of these CDMA equipments have been completed by August, 2005.

Commercial operation on CDMA WLL services commenced from September, 2005.

As a next step of network development, 3 other locations in Moulavibazar district have been brought under CDMA WLL network service by installing 3 BTSs at Moulavibazar (2500 lines), Sreemongal (2000 lines) & Tajpur (3000 lines). These 3 BTSs added CDMA service of a total of 7500 subscribers in the network. Installation, testing & commissioning of these BTSs in Moulavibazar district have been completed in December, 2005.

Commercial operation on CDMA services in Moulavibazar region started on January 01, 2006.

Existing CDMA network covering Sylhet city and Moulavibazar district has capacity of 16,000 WLL connections.

2.7 Distribution of commissioned lines by location

As aforesaid, fixed phone services provided in the network of JTL are of two types: CLL & WLL. Installed and commissioned to subscribers line facilities cover Sylhet city and greater Moulavibazar district. As depicted in the following graphical charts, in summary it could be stated that a total of 10,608 CLL lines have been installed and commissioned while 16,000 lines commissioned include to CDMA WLL network. About 60% lines of total commissioned 26,608 lines are of CDMA WLL and 40% lines are of CLL.

2.8 Tower Construction

Rooftop self-supported towers have been selected for BTS & microwave transmission system. First two rooftop towers (20 meter) have been erected at the roofs of the building sites of Shibganj & Amberkhana for BTS. This work has been completed in early 2005. In the next stage, towers have been erected at the sites, Al-Hamrah, Sylhet (20 meter), Akhali, Sylhet (12 meter), Tajpur (25 meter), Moulavibazar (20 meter) & Sreemongal (20 meter). It should be noted that Al-Hamrah site has been acquired for setting up main microwave station.

At present, as a part of expansion of CDMA WLL network, tower & site work are on going at Syedpur in Jagannatpur. It is planned that one BTS will be installed there.

2.9 Installation, Testing, Commissioning of Microwave Transmission link

Microwave transmission equipments have been supplied from Stratex Networks for establishing transmission network. After making necessary site survey, Line of Sight Survey (LOS), LOS link budgeting, the following; transmission links have so far been installed, tested and commissioned in Sylhet region.

Name of Link Hop Distance Purpose
Amberkhana — Gas Bhabau,

Sylhet2 kmInterconnection between the networks of JTL

and AKTEL.Al-llamrah-Tajpur27 kmAccess link for BTS & RIMTajpur — Moulavibazar22 kmAccess link for BTS & RSUMoulavibazar – Sreemongal20 kmAccess link for BTS ‘Al-Hamrah At-Falah

Marketing Complex, Sylhet2 kmInterconnection between the networks of JTI_

and CityCell.

One link from Tajpur to Syedpur, Jagarnnathpur will be installed soon. Survey & planning works are going on to install 6 other links in Dhaka periphery locations for establishment of access transmission links for CDMA WLL network there. Space at T.K. Bhaban, Kawranbazar, Dhaka has been acquired as central site for installation of transmission equipments and other core network equipments required for CDMA WLL project in Dhaka periphery.


3.1 Overview of Technical System

JTL has planned to provide fixed phone services to its subscribers with the latest technology. Code Division Multiple Access (CDMA) is one of the latest technologies being used world wide in wireless access communication system. JTL selected CDMA technology to extend telephone connections to scattered and low densely populated remote areas. The company has also planned to continue the existing cable line telephone system in the densely populated urban areas.

CDMA 2000 1X has been opted for wireless telephone system that is easily convertible to 3G (third generation) system.

Digital switching system has been chosen for cable line phone system. Copper cable and fiber optic cable have been selected for use in the access network. Digital microwave transmission system of 7 GHz is for long distance link and microwave transmission system of 15 GHz is for access link.

Standard 1N (Intelligent network) system has been planned and procured for providing services: Pre-Paid service (PPS), Free-Phone service (FPH), Virtual Private Network (VPN), and other value added services

3.2 Core Network

Digital switching based Main Switching Unit (MSU) / Host Switch has been selected. MSU has been planned to provide Cable Line Loop (CLL) and CDMA Wireless Local Loop (WLL) telephone services. MSU is also for building interconnecting links with networks of other operators. Huawei’s digital switching system C&C08 has been procured along with RSU, RIM, BSC & BTS.

Remote Switching Unit (RSU) & Remote Integrated Module (RIM) are access switches for connecting remote subscribers. RSU & RIM are connected with MSU for switching, control and administration. Call details records available in the MSU could be taken to billing center for bill processing. Core switching network along with all interconnecting links are demonstrated in the Diagram 2-1.

3.3 Services Created and Provided by the PSTN Network of JTL

JTL’s CLL & CDMA WLL network can support the following supplementary & value added services for its customers.

  • Call forwarding of all types
  • Call waiting
  • Call barring of all types
  • Conference call
  • Centrex
  • Virtual call center
  • Caller 1D Presentation (CLIP)
  • Caller ID Restriction (CLLR)
  • Alarm Call
  • Malicious call tracing
  • Abbreviated dialing
  • Hotline
  • Do not disturb
  • Absent subscriber service
  • Emergency calling
  • SMS (only WLL)
  • VMS
  • Dial up & Packet data internet
  • Telephone address catalogue up to 100 nos. (WLL case)
  • VOIP


a) Basic Accounting

These financial statements have been prepared on Generally Accepted Accounting Principles (GAAP) under the historical cost convention and in accordance with Bangladesh Accounting Standards, Companies Act, 1994 and other applicable laws and regulations.

b) Tangible fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation. Cost includes expenditure directly attributable to the acquisition and installation of the assets. Any repairs and maintenance expenses are charged to the income statement during the period when these are incurred. Depreciation on fixed assets has been charged on straight-line method considering the economic and technical lives. Full year’s depreciation have been charged at the year of acquisition of the assets and no depreciation is charged during the year of disposal. As the Company has gone into operation as on 16 June 2005, depreciation on assets for these financial statements has been charged from that date.

c) Intangible asset and amortization

Intangible asset are stated at cost less amortization. This will be amortized over a period of five years starting from 16 June 2005.

d) Inventories

Inventories include Wireless Local Loop (WLL) telephone sets and Drop Wire cables and are measured at the lower of cost and net realizable value- Cost is determined using the weighted average method. Net realizable value is the estimated selling price in the ordinary course of business less variable selling expenses.

e) Preliminary expenses

Preliminary expenses represent expenses incurred for formation of the company and are being amortized over a period of five years starting from the year 2005. During the year, proportionate amount has been charged in these financial statements.

f) Pre-operating expenses

All revenue expenditures before the commencement of commercial operation as on 16 June 2005 were recorded as “Pre-operating expenses” and are being amortized over a period of ten years starting from the year 2005. During the year, proportionate amount has been charged in these financial statements,

g) Amortization of license and application fee

The first tenure of the License from BTRC is 20 years for which Tk. 20,600,000 has been paid on account of License and Application fees: This amount will be amortized over a period of 15 years. Accordingly, proportionate amount has been charged in these financial statements.

h) Tax holiday

The company enjoys tax holiday benefit from 1 June 2005 to 31 May 2012 for seven years, under section 46 A (1) (b) of Income Tax Ordinance 1984.

i) General

i) Figures appearing in these financial statements have been rounded off to the nearest Taka.

ii) Figures relating to previous year have been rearranged wherever necessary to conform to the current year’s presentation.

iii) The Company commenced it’s commercial operation as on 16 June 2005, as such no comparative information for profit and loss account have been shown in these financial statements.


5.1. Subcriber Base by Geagraphical Area
Zone Subscribers
Sylhet 2200
Mouluvibazar 700
Sremongol 900
Tajpur 500
Total 4300
5.2. Sales Trend base by subcriber
Year Subscribers
2005 2500
2006 5300
2007 4200
5.3. Sales In Amount
Year Amount
2005 800,000
2006 2,000,000
2007 1,500,000


After three years of operation company fall into acute competitors pressure and BTRC rules and regulation. At that stage JTL has taken initiatives to do feasibility study for next five years based on some assumption which discuss elaborately below

2008 2009 2010 2011 2012
No. of Subscribers
Prepaid 3,106 15,430 23,230 31,030 38,830
Postpaid 777 3,858 5,808 7,758 9,708
Total 3,883 19,288 29,038 38,788 48,538
Churn (Deactivated customers, %) 3%
Outgoing 70% 65% 62% 60% 58%
Incoming 30% 35% 38% 40% 42%
Minutes per day per subscriber 28.0 28.7 29.4 30.2 31.0
AMPU Growth 2.5% 2.5% 2.7% 2.7%
Total AMPU per month outgoing 588 560 547 544 540
Total Air time – outgoing 2,282,910 10,794,249 15,888,318 21,093,104 26,204,345
Prepaid 1,369,746 6,476,550 9,532,991 12,655,863 15,722,607
Postpaid 913,164 4,317,700 6,355,327 8,437,242 10,481,738
Prepaid AMPU
Peak Hour 309 294 287 286 283
Off Peak Hour 132 126 123 122 121
Total 441 420 410 408 405
Post Paid AMPU
Peak Hour 706 672 657 653 648
Off Peak Hour 470 448 438 435 432
Total 1,176 1,119 1,094 1,088 1,080
Revenue from Inter connection for incoming
Total AMPU per month incoming 252 301 335 363 391
Total Airtime – incoming per year 11,740,680 69,747,458 116,856,018 168,744,834 227,706,718
Interconnection Sharing Rate (Tk.)
Peak 0.40 0.40 0.40 0.40 0.40
Off Peak 0.40 0.40 0.40 0.40 0.40
Revenue from Interconnection
Peak revenue 3,287,390 19,529,288 32,719,685 47,248,554 63,757,881
Off peak revenue 1,408,882 8,369,695 14,022,722 20,249,380 27,324,806
total revene incoming 4,696,272 27,898,983 46,742,407 67,497,934 91,082,687
Average Revenue per Minute
Prepaid 0.56 0.53 0.51 0.48 0.46
Post paid 0.60 0.57 0.54 0.51 0.49
Revenue from Call Charge, Monthly
Prepaid 247 223 207 196 185
Post paid (excl. line rent) 706 638 593 560 528
ARPU, Monthly
Prepaid 247 223 207 196 185
Post paid (incl. line rent) 856 788 743 710 678
ARPU per minute
Product No. of Users Usage Usage
(as %) Total Peak Hour Off Peak Hour
Prepaid 80% 60% 70% 30%
Post paid 20% 40% 60% 40%
Inter-connection charge
Inter-connection charge (Peak Hour) 0.40 0.40 0.40 0.40 0.40
Inter-connection charge (Off Peak Hour) 0.40 0.40 0.40 0.40 0.40
Inter-connection Expense
Inter-connection expense (Peak Hour) 3,616,129 17,098,091 25,167,096 33,411,477 41,507,682
Inter-connection expense (Off Peak Hour) 1,862,855 8,808,107 12,964,868 17,211,973 21,382,745
Total Inter-connection expense 5,478,984 25,906,199 38,131,964 50,623,450 62,890,427
Subsidy/Acquisition Cost
Subsidy/Acquisition cost per customer
Royalty to BTRC 605,207 2,227,664 3,327,404 4,624,992 5,614,774
Interconnectivity Cost 5,478,984 25,906,199 38,131,964 50,623,450 62,890,427
Subsidy/Customer acquisition cost
Total Cost 6,084,191 28,133,863 41,459,368 55,248,442 68,505,201
Rate of Royalty to BTRC 2.00% 2.00% 2.00% 2.00% 2.00%
Operation & maintenance (O&M) 2008 2009 2010 2011 2012
Rent 1,200,000 1,320,000 1,452,000 1,597,200 1,756,920
Salaries and allowance 2,400,000 2,640,000 2,904,000 3,194,400 3,513,840
Printing and stationeries 50,000 55,000 60,500 66,550 73,205
Postage and telephone 40,000 44,000 48,400 53,240 58,564
Entertainment 20,000 22,000 24,200 26,620 29,282
Training and development
Books and periodicals 10,000 11,000 12,100 13,310 14,641
Consultancy fees
Car running and maintenance 12,000 13,200 14,520 15,972 17,569
Traveling and conveyance 20,000 22,000 24,200 26,620 29,282
Insurance premium 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100
Stores & spares 500,000 550,000 605,000 665,500 732,050
Fuel & lubricants 175,000 192,500 211,750 232,925 256,218
Repairs & maintenance 150,000 165,000 181,500 199,650 219,615
Electricity bills 4,000,000 4,400,000 4,840,000 5,324,000 5,856,400
Miscellaneous expense 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100
Total Cost Put into Process 10,577,000.00 11,634,700.00 12,798,170.00 14,077,987.00 15,485,785.70
General & Administrative Expense
Office rent 2,400,000 2,640,000 2,904,000 3,194,400 3,513,840
Salaries and remuneration 8,400,000 9,240,000 10,164,000 11,180,400 12,298,440
Printing & stationeries 250,000 275,000 302,500 332,750 366,025
Postage & telephone 200,000 220,000 242,000 266,200 292,820
Entertainment 50,000 55,000 60,500 66,550 73,205
Publicity and advertisement 2,500,000 2,750,000 3,025,000 3,327,500 3,660,250
Books and periodicals 10,000 11,000 12,100 13,310 14,641
Audit and legal fees 60,000 66,000 72,600 79,860 87,846
Car running and maintenance 120,000 132,000 145,200 159,720 175,692
Traveling and conveyance 50,000 55,000 60,500 66,550 73,205
Miscellaneous expense 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100
Total 15,040,000 16,544,000 18,198,400 20,018,240 22,020,064
Collection from Sales / Collection of receivables
Credit Term 60 days
Beg. A/R 1,016,325 3,781,074 5,933,758 8,561,743
Ending A/R 1,016,325 3,781,074 5,933,758 8,561,743 10,104,588
Collection from Sales (Cash) 29,244,043 108,618,460 164,217,512 228,621,614 279,195,869
Interconnection revenue receivables
Credit Term 60 days
Beg. A/R 771,990 4,586,134 7,683,683 11,095,551
Ending A/R 771,990 4,586,134 7,683,683 11,095,551 14,972,497
Payment of operating expenses
Credit Term 60 days
Operation & maintenance 10,577,000 11,634,700 12,798,170 14,077,987 15,485,786
General and administrative expense 15,040,000 16,544,000 18,198,400 20,018,240 22,020,064
Total 25,617,000 28,178,700 30,996,570


The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.