BTRC delays 2G licence renewal

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FE Report Telecom regulator did not renew the 2nd Generation (2G) licence of four mobile phone operators Thursday -- the 15-year tenure of the licences of the operators -- Grameenphone, Banglalink, Robi and Citycell expired on the day -- as the VAT, MCF and renewal related matters are pending before the appellate division of the Supreme Court. But the authority through a letter on Thursday informed the operators that the operation of the telcom companies would not be hampered since the matter will be settled by the court. Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Zia Ahmed said, "Mobile company Grameenphone put up the licence renewal issue before the court. So we will wait for court verdict". He said when the decision on Value Added Tax (VAT), Market Competition Factor (MCF) and 2G renewal comes from the court then BTRC will renew licences. "Until the issues are settled, the activities of the operators will continue," he added. BTRC chairman said they have already informed the operators about the decision. But two operators -- Robi and Citycell -- have expressed resentment over non-issuance of their licences since they are not anyway involved in court proceedings. A mobile company official said the authority could offer them licence subject to payment of the dues after court verdict. He expressed the fear that the company might face problem in share market if it operated without its licence renewed. BTRC chairman said after court order, the commission will offer licences to four operators at a time, he mentioned. Earlier, Grameenphone and Banglalink filed writ petitions against the BTRC as it demanded Tk 3.84 billion extra from the operators for spectrum fee of 2008. GP filed another writ petition for settling VAT complication as the amount will have to be paid either to BTRC or NBR (National Board of Revenue). Following the petition, each of the four operators paid licence renewal fee of Tk 85 million after deducting VAT and an amount of Tk 31.84 billion as spectrum charge. According to the final guideline on licence renewal, the four mobile operators will pay almost Tk 39.69 billion (49 per cent) out of a total of Tk 75.63 billion as first installment by this time. Besides, remaining 51 per cent (almost Tk 38.58 billion) will have to be paid by next three years as per the BTRC guideline.