The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to issue a final directive to Banglalink Digital Communications Ltd, asking the mobile operator to deposit 5.5 percent of the total value of its tower sales, along with all applicable VAT and late fees, to Summit Towers Limited within ten working days.

This decision was made at the latest commission meeting after a prolonged dispute and the regulator's negligence over the operator's obligation to pay regulatory fees stemming from mobile tower sales.

In December 2023, Banglalink sold 2,012 towers to Summit Towers, a subsidiary of Summit Communications, for Tk 1,066 crore ($106.63 million).

 As per the rules, Banglalink was supposed to pay the telecom regulator Tk 69 crore, including 15 percent VAT, for the transaction. However, the amount will now increase as Banglalink has to pay late fees.

The state coffer has been deprived of the amount due to the BTRC's failure to collect 5.5 percent of the sales price.

 After the fall of the Awami League government, Banglalink was instructed in a letter by the BTRC to deposit the applicable charges in September last year.

However, Banglalink contested the demand, arguing that the fee did not apply to their transaction, and sent a letter of refusal in late September 2024.

The BTRC reaffirmed its directive following legal consultations on October 17, 2024. Banglalink maintained its position through another letter on October 31, 2024.

Subsequent meetings between BTRC officials and Banglalink representatives in December 2024 and April 2025 aimed to resolve the disagreement.

 According to the BTRC documents, both parties agreed on two key points: that tower infrastructure constitutes telecom equipment and that all relevant laws, regulations, and guidelines, including the Tower Sharing Guidelines, must be followed in such transactions.

 Upon extensive internal discussion and review of existing regulatory documents—including the original SLA vetting and the January 2021 circular—the BTRC concluded that Banglalink is legally bound to pay the 5.5 percent charge.

 The BTRC also decided to warn that failure to comply within the stipulated ten working days could result in further enforcement actions.

 Md Emdad ul Bari, chairman of the BTRC, confirmed the BTRC's decision on directing Banglalink to pay regulatory fees stemming from mobile tower sales to Summit Towers.

 In a statement, Banglalink said it has not yet received any official communication from the BTRC.

 "As a compliant operator, Banglalink remains committed to adhering to all regulatory directives. We have consistently expressed our intent to resolve these issues through constructive dialogue," the statement said.

 "We are confident that the BTRC will take a pragmatic approach toward achieving an amicable and mutually acceptable solution," it added.

Current regulations mandate collection, but policy reforms are overdue

 While the regulator's move aligns with existing regulations, the imposition of such revenue-sharing fees on asset sales has sparked renewed debate about the need for policy reform in Bangladesh's telecom sector.

 Industry experts and operators argue that while the 5.5 percent fee is valid under the current legal framework, it represents an outdated and counterproductive burden on telecom companies, particularly when the sector is trying to attract new investment amid fierce competition and declining average revenue per user.

 Telecom experts urged the regulator to revoke such unnecessary fees that would discourage foreign investment in Bangladesh's telecom sector, which over the years has seen the exodus of global names like Japan's NTT DoCoMo, Orascom Telecom Holding, SingTel, and Dhabi Group (Warid Telecom).

 In 2016, India's Bharti Airtel merged with Robi since its operation in Bangladesh as a separate company had become unviable.

 Banglalink, the country's third-largest mobile operator, is owned by the Dutch-domiciled telecommunications service provider VEON.

 Abu Nazam M Tanveer Hossain, a telecom expert, said that for licensees, the imposition of such fees during the licence period can undermine business plans and invite challenges.

 A strategic, long-term policy approach from the BTRC is crucial for maintaining market attractiveness for both local and international investors as such abrupt changes can erode investor confidence and destabilise the market, he added.

 Asked whether the 5.5 percent charge on selling equipment is justified or suitable for business, BTRC Chairman Md Emdad ul Bari earlier told The Daily Star that there is no doubt that the government needs revenue. Similarly, taxes should be balanced with the profitability of businesses.

 "As telecom has become a vital artery for development, we should also assess its indirect benefits. If we quantify these, I believe the taxes can be made more rational," he added.