Mobile phone operators for settling 'rebate' issue before 3G auction
Friday, 28 December 2012
Jamal Uddin
Mobile phone operators have demanded of the government to settle the 'rebate' issue before the final move to introduce 3G (Third Generation) mobile phone service in the country.
The operators highlighted mainly three issues namely rebate on Value Added Tax (VAT), loan from foreign sources for investment in 3G service and unsettled cases as their core concerns in a recent letter issued by Association of Mobile Telecom Operators of Bangladesh (AMTOB) to the Ministry of Finance (MoF).
Four mobile phone operators who renewed their 2G licences four months ago are seeking the rebate opportunity on VAT. They even went to court relating to the issue.
On July 26, 2012, the MoF at a meeting with the operators took decision to resolve some issues through discussion, out of court. As an outcome of the meeting the operators got 2G licences renewed, but the issues of withdrawal of cases filed by the mobile operators and rebate on VAT were not resolved.
"We cannot go for 3G without settling the outstanding 2G issues," said Mahmudur Rahman, executive vice president of Robi. He mentioned that the rebate on VAT is the core concern for the telecom operators.
The senior Robi official told the FE that they paid Tk 1.5 billion for per MHz spectrum for 2G on the basis of dialogue with the finance ministry as it was supposed to show a way for getting the rebate opportunity.
He, however, observed that the limitation of investment from only foreign sources within two months of winning the 3G auction mentioned in the 3G guideline is 'unrealistic'.
Mr Rahman termed the situation a 'big challenge' for the industry. He thinks that the government should fix the spectrum price evaluating the reality of the Bangladesh market.
The file of the 3G is sent to the finance ministry for final nod where per MHz spectrum price is suggested to be US$ 20 million instead of $ 30 million proposed by the Bangladesh Telecommunication Regulatory Commission (BTRC).
In response of the AMTOB letter, the finance ministry has planned to sit with the operators towards the beginning of January next to determine the issues.
Finance Minister AMA Muhith Tuesday told the media that the process of 3G auction is getting delayed as some issues raised by the operators are yet to be settled. He expected that the government will be able to hold the auction by February next. In the meantime, they will ask the mobile operators to come to a reasonable solution to the issues.
Terming the recent approach of the government 'positive,' acting chief communication officer of Grameenphone (GP) Tahmid Azizul Huq told the FE that they expect a friendly environment for the investment in the 3G mobile phone service.
"We hope the government will create a level playing field to ensure secure investment and help flourish the service across the country," the GP official said.
For awarding 3G mobile phone service, BTRC has reserved 50 MHz spectrum of 2,100 brand aiming to provide 5 to 15 MHz to each expected bid winner including state-owned Teletalk.
The guideline -- 'Cellular Mobile Phone Service (3G/4G/LTE) Regulatory Licencing Guideline 2012' -- is made broadly so that the operators can adopt upcoming new technologies. Only five operators including Teletalk and one new foreign operator will be allowed for this service.
According the draft guideline, each licence holder has to spend Tk 1.5 billion for bank guarantee, Tk 100 million for licence fee and Tk 0.5 million for application fee.
Besides, an individual operator needs Tk 50 million for licence renewal fee with revenue sharing 5.5 per cent and social obligation fee one per cent.
Mobile phone operators have demanded of the government to settle the 'rebate' issue before the final move to introduce 3G (Third Generation) mobile phone service in the country.
The operators highlighted mainly three issues namely rebate on Value Added Tax (VAT), loan from foreign sources for investment in 3G service and unsettled cases as their core concerns in a recent letter issued by Association of Mobile Telecom Operators of Bangladesh (AMTOB) to the Ministry of Finance (MoF).
Four mobile phone operators who renewed their 2G licences four months ago are seeking the rebate opportunity on VAT. They even went to court relating to the issue.
On July 26, 2012, the MoF at a meeting with the operators took decision to resolve some issues through discussion, out of court. As an outcome of the meeting the operators got 2G licences renewed, but the issues of withdrawal of cases filed by the mobile operators and rebate on VAT were not resolved.
"We cannot go for 3G without settling the outstanding 2G issues," said Mahmudur Rahman, executive vice president of Robi. He mentioned that the rebate on VAT is the core concern for the telecom operators.
The senior Robi official told the FE that they paid Tk 1.5 billion for per MHz spectrum for 2G on the basis of dialogue with the finance ministry as it was supposed to show a way for getting the rebate opportunity.
He, however, observed that the limitation of investment from only foreign sources within two months of winning the 3G auction mentioned in the 3G guideline is 'unrealistic'.
Mr Rahman termed the situation a 'big challenge' for the industry. He thinks that the government should fix the spectrum price evaluating the reality of the Bangladesh market.
The file of the 3G is sent to the finance ministry for final nod where per MHz spectrum price is suggested to be US$ 20 million instead of $ 30 million proposed by the Bangladesh Telecommunication Regulatory Commission (BTRC).
In response of the AMTOB letter, the finance ministry has planned to sit with the operators towards the beginning of January next to determine the issues.
Finance Minister AMA Muhith Tuesday told the media that the process of 3G auction is getting delayed as some issues raised by the operators are yet to be settled. He expected that the government will be able to hold the auction by February next. In the meantime, they will ask the mobile operators to come to a reasonable solution to the issues.
Terming the recent approach of the government 'positive,' acting chief communication officer of Grameenphone (GP) Tahmid Azizul Huq told the FE that they expect a friendly environment for the investment in the 3G mobile phone service.
"We hope the government will create a level playing field to ensure secure investment and help flourish the service across the country," the GP official said.
For awarding 3G mobile phone service, BTRC has reserved 50 MHz spectrum of 2,100 brand aiming to provide 5 to 15 MHz to each expected bid winner including state-owned Teletalk.
The guideline -- 'Cellular Mobile Phone Service (3G/4G/LTE) Regulatory Licencing Guideline 2012' -- is made broadly so that the operators can adopt upcoming new technologies. Only five operators including Teletalk and one new foreign operator will be allowed for this service.
According the draft guideline, each licence holder has to spend Tk 1.5 billion for bank guarantee, Tk 100 million for licence fee and Tk 0.5 million for application fee.
Besides, an individual operator needs Tk 50 million for licence renewal fee with revenue sharing 5.5 per cent and social obligation fee one per cent.