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Telecom operators seek lower taxes, relaxed licencing

Khairul Islam | April 11, 2015 00:00:00


Telecom operators have made a set of proposals for inclusion in the proposed National Telecom Policy (NTP)-2015, sources said.

The proposals include ones that suggest reduction of taxes, relaxation of licencing and fix a few regulatory issues.

The operators have demanded equal business opportunities for all the mobile operators, unified licensing, technology and services neutrality and convergence of other related policies.    

The Association of Mobile Telecom Operators of Bangladesh (AMTOB) made their proposals to the ICT Division of the Ministry of Posts, Telecommunications and Information Technology recently.

"Taxation regime should be rationalised in such a way that it will facilitate investment, innovation and increased penetration of broadband and ICT services," the letter said.

In the proposal, the operators said considering the convergence of telecom and ICT, the government should harmonise telecom taxation with the ICT (information and communication technology) sector.

According to the operators, Bangladesh's telecom sector is one of the world's highest taxpayers as 55 per cent of their revenue earnings goes to the national exchequer.

The 18-page proposals of the association said a clear roadmap of regulations should be prepared and followed to encourage and maintain investors' interests, confidence and predictability.

"The government should address with due diligence any ongoing issues in the sector and take appropriate steps to resolve those that may have an impact on investment decision relating to the telecom sector," the letter added.

Telephony firms also suggested the government to withdraw the existing barriers like condition of local ownership and restriction of foreign investment in the sector.

"Make the licenses open to all and remove entry barriers," the operators suggested adding that a fair competition among the interconnection exchanges (ICXs) and international gateways (IGWs) should be ensured.

Regarding the spectrum management, the telecom operators said the government must make the spectrum available for mobile broadband in time and adopt a standard process and a clear and standard roadmap for spectrum allocation.

"Spectrum roadmap outlining bands for different technologies and services, and their availability in future would greatly benefit the industry for future planning," the letter said.

The operators also suggested integrating a provision of market exit of the companies in case of their business failure.

"Unsuccessful or unsustainable licensees should be given the full freedom to sell their assets in the secondary market and recoup their investment," the letter said.

"The government shouldn't unnecessarily hold back any mergers and acquisitions as long as these moves aren't anti-competitive and attempted with a malicious intention," they said. The government should not take any liability in case of business loss of any party involved in the process, they added.

AMTOB Secretary General TIM Nurul Kabir told the FE that they had submitted the proposals to make the national telecom policy effective and timely. He said the policy also should include a clear roadmap for the telecom industry.

The industry leader called upon the government to devise the policy immediately to tap opportunities in the sector.

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