Tk 3.50b SOF unutilised in absence of policy

Lack of policy has created a major roadblock to the utilisation of around Tk 3.50 billion special fund for expansion of telecom network infrastructure, mainly in rural areas.
The telecom regulator took the initiative in 2011 under Social Obligation Fund (SOF), but little progress has so far been made in this connection, sources said.
Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Sunil Kanti Bose informed the FE last week that his commission was working for making a policy on SOF.
The commission has already sent a draft guideline to the ministry of posts and telecommunication for its approval. But the draft was not made following consultation with the mobile phone operators who are the sole contributors to the fund, the sources said.
Meanwhile, Secretary General of Association of Mobile Telecom Operators of Bangladesh (AMTOB) TIM Nurul Kabir told the FE Sunday that BTRC should consult with the stakeholders before formulation of a policy on SOF.
He said, "Mobile phone operators are the sole contributors to the fund; so their involvement in the policymaking process is very important."
BTRC sources said the commission also gave some responses to the telecom ministry as per observations of the ministry of law.
Of the observations, making a separate project for SOF along with formulation of a committee to run the project is mentionable.
BTRC Vice Chairman Giashuddin Ahmed told the FE that the commission was waiting for the final nod of the telecom ministry. Soon after the approval, the regulator would move for implementation of the project, he added.
However, telecom operators want to be part of the project management of the SOF, because they are the contributors to the fund.
The mobile phone operators have been depositing money to the SOF at the rate of 1.0 per cent of their total revenue income as per the licensing conditions since November 2011.
BTRC made this mandatory for the operators during their 2G licence renewal.
Until September 2013, four operators -- Grameenphone, Banglalink, Robi and Airtel -- deposited some Tk 3.325 billion. However, the state-owned telecom operator, Teletalk, and private operator, Citycell, did not contribute to the fund.
Of the amount, the highest contribution of Tk 1.68 billion was realised from the leading telecom operator, Grameenphone, followed by Tk 0.73 billion from Banglalink, Tk 0.70 billion from Robi and Tk 0.215 billion from Airtel.
Around Tk 0.5 billion is being added to the fund of BTRC from the four operators after every three months, BTRC sources said.
According to the BTRC, the objective of the fund raising is to promote telecom infrastructure in some areas like hill tracts, the Sundarbans and some remote areas where mobile phone operators are reluctant to build up their networks for not having substantial business case or profit.
Talking about the issue, the BTRC chairman had earlier said his commission would provide subsidy from the SOF to reach telecom infrastructure to the hard-to-reach areas.
He said this development work could be implemented under the public-private partnership (PPP). So far any project is yet to be taken under the PPP in telecom sector, according to insiders.
However, this dream of the BTRC could not come true in absence of a policy guideline.