Thrust on business-friendly approach in governing telecom sector
Friday, 22 January 2010
FE Report
The existing laws and regulations governing the country's telecom industry should be liberalized to attract more foreign investment in the sector, Post and Telecommunications Minister Raziuddin Ahmed Raju said Thursday.
Terming certain provisions of the current set of telecom regulatory acts as an 'obstacle' to attract foreign direct investment (FDI), Raju has called for a more rational and business- friendly approach in governing the sector.
His views came while attending a seminar organized by GSMA on "Achieving 2021- a Digital Age for Bangladesh" in the city.
Drawing examples of the recent 70 per cent acquisition of Warid Telecom by the Indian giant Bharti Airtel, the minister said that such overseas investment helps to bring foreign funds to the country's shore for strengthening the local telecommunication infrastructure.
However, referring to Bharti-Warid deal, the telecom minister added that the government is looking to change the provisions within the telecom law, which requires 5.5 per cent of such deal amount to go to the telecom regulator.
"Provisions like that within the telecom acts is an obstacle to attract foreign direct investment as well as local investment in the sector", he said.
When asked about the regulator's position in claiming the said percentage of the deal amount, Chairman of Bangladesh Telecommunication Regulatory Commission (BTRC) Zia Ahmed said, "It's the duty of the stock exchange authority to claim the deal money and that is not within the authority of the BTRC".
"At the same time, a company can sell its shares to another entity at whatever amount it finds appropriate," the BTRC Chairman added further, while revealing that the 70 per cent share of Warid Telecom could be sold to Bharti Airtel at a price of US$ 100 thousand.
Earlier, the telecom regulators also informed that the license for 3G is likely to be issued through a 'beauty contest' to avoid unnecessary augmentation of license fee.
"What the WiMax experience shows is that the license fee gets unnecessarily augmented if the issuing of license goes through a open bidding process", Raju said.
State Minister for Science and ICT Yeafesh Osman, who also attended the seminar, said in his speech, "Only the collaboration between public and private sector can realize the dream of a 'Digital Bangladesh'.
Earlier, speakers at the seminar highlighted the roles and prospect of ICT and more specifically broadband Internet in generating economic growth of the country.
"Digital Bangladesh" is very much possible to achieve with the technologies already available with right regulatory conditions" said President and Country Manager of Ericsson Bangladesh Hakan Rusch, adding, "Introduction of Mobile Broadband will help achieve the government's target perhaps even ahead of time".
Public Policy Officer of GSMA Tom Phillips, Ola-Jo Tandre of Telenor-BCG and Chief Technical Officer of Grameenphone Frode Stodal also spoke on the occasion.
The existing laws and regulations governing the country's telecom industry should be liberalized to attract more foreign investment in the sector, Post and Telecommunications Minister Raziuddin Ahmed Raju said Thursday.
Terming certain provisions of the current set of telecom regulatory acts as an 'obstacle' to attract foreign direct investment (FDI), Raju has called for a more rational and business- friendly approach in governing the sector.
His views came while attending a seminar organized by GSMA on "Achieving 2021- a Digital Age for Bangladesh" in the city.
Drawing examples of the recent 70 per cent acquisition of Warid Telecom by the Indian giant Bharti Airtel, the minister said that such overseas investment helps to bring foreign funds to the country's shore for strengthening the local telecommunication infrastructure.
However, referring to Bharti-Warid deal, the telecom minister added that the government is looking to change the provisions within the telecom law, which requires 5.5 per cent of such deal amount to go to the telecom regulator.
"Provisions like that within the telecom acts is an obstacle to attract foreign direct investment as well as local investment in the sector", he said.
When asked about the regulator's position in claiming the said percentage of the deal amount, Chairman of Bangladesh Telecommunication Regulatory Commission (BTRC) Zia Ahmed said, "It's the duty of the stock exchange authority to claim the deal money and that is not within the authority of the BTRC".
"At the same time, a company can sell its shares to another entity at whatever amount it finds appropriate," the BTRC Chairman added further, while revealing that the 70 per cent share of Warid Telecom could be sold to Bharti Airtel at a price of US$ 100 thousand.
Earlier, the telecom regulators also informed that the license for 3G is likely to be issued through a 'beauty contest' to avoid unnecessary augmentation of license fee.
"What the WiMax experience shows is that the license fee gets unnecessarily augmented if the issuing of license goes through a open bidding process", Raju said.
State Minister for Science and ICT Yeafesh Osman, who also attended the seminar, said in his speech, "Only the collaboration between public and private sector can realize the dream of a 'Digital Bangladesh'.
Earlier, speakers at the seminar highlighted the roles and prospect of ICT and more specifically broadband Internet in generating economic growth of the country.
"Digital Bangladesh" is very much possible to achieve with the technologies already available with right regulatory conditions" said President and Country Manager of Ericsson Bangladesh Hakan Rusch, adding, "Introduction of Mobile Broadband will help achieve the government's target perhaps even ahead of time".
Public Policy Officer of GSMA Tom Phillips, Ola-Jo Tandre of Telenor-BCG and Chief Technical Officer of Grameenphone Frode Stodal also spoke on the occasion.