logo

BTRC locks horns with IIG cos over Tk 976.35m dues

ISMAIL HOSSAIN | Monday, 24 June 2024


The Bangladesh Telecommunication Regulatory Commission (BTRC) is at loggerheads with the International Internet Gateway (IIG) companies over recovery of outstanding dues amounting to Tk976.35 million from 32 IIG companies.
BTRC sent letters late last month to the IIGs to pay this amount of "Unspecified Downstream Bandwidth" and for not paying late fees in time.
In its 283rd meeting, the Commission estimated the dues based on revenue-sharing calculation for undisclosed downstream bandwidth in several quarters from 2016 to 2023.


However, this week the IIG association sent a letter to the regulator to hold a meeting to discuss the issue for resolution.
"International Internet Gateway Association of Bangladesh (IIGAB) is writing this letter representing the licensed IIG operators of Bangladesh to acknowledge the receipt of your email and letters provided to our esteemed members regarding the payment of revenue dues, including VAT and late fees against "Unspecified Downstream Bandwidth," read the letter.
Recognising the significance of the matter, the letter said IIGAB has taken immediate necessary action for a proper resolution in this regard. "Upon careful examination of the revenue sharing outstanding statement provided to IIG operators, we have encountered difficulty in understanding the interpretation/definition of "Unspecified Downstream Bandwidth," said the letter.
It further said despite thorough scrutiny of the IIG guidelines and related directives, no reference or mention of this term was found.
Also, the outstanding statement lacks comprehensive breakdown of quarter-wise "Unspecified Downstream Bandwidth" amount, as well as detailed calculation of the due revenue sharing," the letter said.
To accurately realise outstanding amount owed to BTRC, IIG operators said it requires a more detailed statement from BTRC.
"Given the current circumstances, it is our humble request to your esteemed Authority for a meeting with the Engineering & Operations Division and Finance, Accounts and Revenue Division of BTRC to get enlightened on the issues discussed above," the letter pleaded. The BTRC said it was decided in the Commission's meeting that a technical audit through audit would be conducted firms to determine the revenue share up to December of 2015.
The primary revenue for the period from 2016 to 2023 amounts to Tk625.57 million.
Value-added tax and late fees raised the total dues to Tk976.35 million.
BTRC began sending letters to the companies on May 22, directing them to pay the outstanding amounts by June 13 or face regulatory action.
IIG association has decided to discuss this so they can send letter to BTRC before the deadline.
However, no response has yet come from the regulator.
IIGAB Secretary General Ahmed Junayed said what the BTRC claimed based on the mismatch of upstream and downstream bandwidth was not fair.
He said the mismatch between upstream and downstream bandwidth arose from overlapping of data of one month with another month. He said they would continue dialogue to resolve the issue.
Mr Junayed urged BTRC to review the calculation and the amount claimed.
He said the amount would be significantly cut if a thorough review was done considering the overlapping of bandwidth.
However, a BTRC official said as a government organisation, BTRC was collecting dues as per regulations.
"Letters have been issued accordingly, and further action will be taken as per the law if payments are not made on time," he said.However, he refused to comment on the said meeting.
Earlier last year, the state-run Bangladesh Submarine Cables PLC (BSCPLC), which connects Bangladesh to the world through an undersea cable for the internet, blocked bandwidth supply by around 25 per cent to IIGs from November 23.
The BSCPLC stopped the supply of over 500Gbps to a number of IIG operators as they had not paid around Tk 3.60 billion, its managing director Mirza Kamal Ahmed told the FE at that time. In Bangladesh, internet connectivity is delivered to customers through a complex network. Initially, bandwidth is provided to Bangladesh via submarine cables or international terrestrial cable (ITC) operators.
Subsequently, it is distributed to mobile operators and broadband service providers through the Nationwide Telecommunication Transmission Network operators. Finally, mobile and broadband operators deliver the internet to the consumers.
Total bandwidth usage now stands at about 5,000 Gbps and more than half of it -- about 2,700 Gbps -- comes through the ITC service providers that import bandwidth from India across land borders. The rest -- about 2,300 Gbps -- is supplied by the BSCPLC, which connects the country with two submarine cables.
[email protected]