Bangladesh Submarine Cable Company Ltd (BSCCL) has witnessed 67% fall in profit last fiscal year.
The revenue also dropped by 35%, according to the company.
The state-owned company has decided to reduce Internet bandwidth price to prevent revenue fall. The government is expected to approve the decision today.
The revenue declined to Tk94 crore from Tk144 crore in the previous fiscal while profit after tax came to TK37 crore from Tk111.
Because of profit fall, the board of directors recommended reduced cash dividend of 10% for the year ended on June 30, 2014.
It was 20% cash and 15% stock dividends in FY2012-13.
The company informed about it to the Dhaka Stock Exchange yesterday.
The company said its earning per share was Tk2.42 in FY2013-14, reducing from Tk6.69 in previous fiscal.
“We are trying to gear-up the company and compete with the private sector,” Md Monwar Hossain, managing director and chief executive officer of the submarine cable company, told Dhaka Tribune.
He said they have decided to slash bandwidth price with IP Transit price, which is currently under government consideration.
The company can now sell 25 GB out of total capacity of 200 GB Internet bandwidth. It reached 42 GB in October 2013.
As imported bandwidth is much cheaper than that of Bangladesh submarine company, the users are choosing the imported one coming from India.
“We hope the government will approve our new proposed tariff proposal which is around 30% less compared to the existing one. It will increase our bandwidth uses,” said Monwar Hossain.
He also said they will soon start exporting bandwidth to Indian “seven sisters” states, which will also increase their revenue and profit.
Submarine cable company calculated that it could earn around Tk50-60 crore annually from bandwidth export as an MoU was signed few months ago.
In FY2011-12, the company earned Tk126 crore revenue and Tk83.87 crore profit from Tk83.79 crore and Tk30.51 crore respectively in FY2010-11.