Citycell runs risk of losing licence
The telecom regulator on Wednesday sought reasons from Pacific Bangladesh Telecom that owns Citycell for not cancelling its licence although the operator failed to pay Tk 477.63 crore in dues.
Citycell will have to reply within 30 days, according to the letter signed by SM Golam Sorwar, a senior assistant director of Bangladesh Telecommunication Regulatory Commission's legal and licensing division.
Senior Citycell executives acknowledged the receipt of the notice and said they will discuss the matter with the operator's lawyers.
The government on Tuesday set in motion the process to revoke Citycell's licence after the operator failed to pay its dues.
Subsequently, the telecom division requested the subscribers of Citycell, the country's oldest operator, to switch to another network by August 23.
Citycell did not pay the second and third instalments -- amounting to Tk 229 crore -- of its spectrum renewal fee, which were due in 2012. The operator renewed its licence for another 15 years in 2011.
Besides, it owes annual spectrum fees totalling Tk 27.14 crore from 2013 through to 2016; revenue sharing proceeds of Tk 27.84 crore from 2014 to 2016; social obligatory fund contributions of Tk 8.92 crore from 2011 to 2016; value-added taxes of Tk 39.92 crore; and Tk 135 crore in penalty.
Contacted, Tarana Halim, state minister for telecom, yesterday said the other formalities for the termination of Citycell's licence will start in a day or two.
The recommendation for cancellation of licence will soon be forwarded to Prime Minister Sheikh Hasina, who also serves as the telecom minister.
Citycell began its operations in 1993, though its licence was awarded in 1989.
Singapore's SingTel owns 44.54 percent shares in Citycell, Pacific Motors 37.95 percent and Far East Telecom 17.51 percent.
Meanwhile, Citycell sought time until December 31 to clear its outstanding charges with the telecom regulator.
Tarana said Citycell's letter has been received and if the arguments put in it are worth considering the government will do so.
On August 16, Md Matiul Islam, chairman of the Industrial and Infrastructure Development Finance Company Ltd or IIDFC, wrote to Hasina and requested her to give Citycell a six-month extension to find a foreign or local buyer.
Citycell borrowed Tk 1,500 crore from 23 banks and six non-bank financial institutions, including IIDFC, according to Islam, also a former secretary.
The operator's revenue was Tk 139.77 crore in fiscal 2014-15, while its investment was zero, according to the BTRC's annual report.
Its revenue was Tk 230.52 crore in fiscal 2013-14 and Tk 267.64 crore in fiscal 2012-13.
Citycell's subscription reached a peak of 19 lakh in 2011, but it has been a minor player in the market for at least 10 years now. Currently, it has about 1.5 lakh active connections.
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