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Tk 4.4 billion social fund by cellphone cos lying idle

Badrul Ahsan | June 16, 2014 00:00:00


More than Tk 4.4 billion contributed by the telecom operators as social obligation fund (SOF) has been lying idle with the government for long mainly for lack of rules for utilisation of the money, competent sources said.

They said though the Ministry of Posts and Telecommunications (MoPT) initiated formulating rules last year, it was yet to see any significant progress thanks to foot-dragging bureaucracy.

The government has been collecting the SOF fund from the telecom operators since 2011with a view to extending telecom coverage to those places of the country where the operators do not develop their networks for a lack of business prospects.

Besides, the fund will also be used during crisis periods, if any area faces telecom network problem for natural disasters or any other rational reasons.  

But, as the rules for utilisation of the fund have not yet been framed, the government or Bangladesh Telecommunications Regulatory Commission (BTRC) under the MoPT could not spend the funds till the filing of the report.

BTRC made contribution to SOF mandatory for the operators during their 2G licence renewal. The operators are contributing 1 percent of their gross revenue to the fund every quarter.

Md. Abu Bakar Siddique, Secretary of the Ministry of Posts and Telecommunications and Communication Technology, said they had submitted the draft rules to the law ministry for vetting, but, following their objection over some of its clauses, they submitted the corrected copy again to the law ministry three months back.

"Following objections from the law ministry officials on some clauses of the draft rules, we have made changes and submitted again. Now they have again raised objection on some other issues. We will again correct the copy after receiving it from the law ministry," he added.

"After vetting in the law ministry, we hope to finalise the rules at the earliest," the secretary informed.

However, mobile-phone operators, contributors to the fund, have alleged that they were not involved in the process of preparing the draft rules.

Association of Mobile Telecom Operators of Bangladesh (AMTOB) wrote to the MoPT on December 23, expressing their concern over the SOF governance and its rules.

In the letter, addressed to the telecom secretary, the mobile companies urged the government to invite them immediately for consultation regarding formulation of the SOF rules and regulatory framework.

"It has been observed that in many markets, lack of proper regulatory framework, including the rules, has resulted in poor management and utilisation of the fund, consequently defeating the country's very purpose," secretary-general of AMTOB TIM Nurul Kabir told the FE.

"Being contributor to the fund, it is logical that the operators can expect their participation in the formation process of the rules," he added.

A high official of a leading mobile phone operator has his say on this matter. "Participation of the operators will help the rules be realistic," he said, preferring anonymity.

Meanwhile, the telecom secretary said there is no need for consultation with the mobile- phone operators in the rule-preparing process.

"We have consulted them at the beginning of draft making. It is not necessary to involve them with the whole process."

However, according to the telecommunications law, the fund is supposed to be created with contributions from government, or local, foreign and international organisations, and telecom operators.

The government has so far collected Tk 4.4 billion from the mobile operators alone.

Until March 2014, four operators - Grameenphone, Banglalink, Robi and Airtel - had deposited the aggregate amount for the SOF.


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