Citycell licence cancellation awaits PM's nod

The licence cancelation issue of mobile phone operator Citycell has now been placed before the prime minister, after the telecom regulator sent its recommendation to the telecom division for approval.

Bangladesh Telecommuni-cation Regulatory Commission sought permission from the government to cancel Citycell's licence, as the company did not clear its dues worth Tk 477.69 crore.

Senior officials of the telecom division said they sent the file to the Prime Minister's Office and will ensure that Prime Minister Sheikh Hasina, who is also in charge of the telecom ministry, gives a decision as soon as possible.

"We are addressing the licence cancelation issue according to procedures, and taking the prime minister's approval is a part of that," said Md Faizur Rahman Chowdhury, the telecom secretary.

If the prime minister gives the nod, it will be the first time a mobile phone operator's licence will be scrapped in the country.

The move comes after the telecom regulator brought down the curtains on Citycell's operations on October 20 by suspending its spectrum.

The spectrum suspension is permanent and there is no scope to reverse it, Tarana Halim, state minister for telecom, said at a press meet recently.

Citycell's dues include spectrum renewal fee of Tk 229 crore, annual licence fee of Tk 10 crore, annual spectrum fee of Tk 27.14 crore, VAT Tk 39.92 crore and late fees of Tk 135 crore, according to the telecom regulator.

However, the operator calculated a different figure and it had requested the regulator to set a meeting before suspending the spectrum. But that meeting was not arranged.

On the nonpayment of dues, the regulator issued a notice on July 31 and asked the customers of the oldest mobile phone operator to switch to other operators by August 16.

After a legal battle, the Supreme Court ordered the operator to pay two-thirds of the due or Tk 318.42 crore by October 19.

However, Citycell paid Tk 130 crore to comply with the apex court's order.

But the regulator took a tough stance and suspended its spectrum on October 20.

Citycell began its operations in 1993, with its subscription reaching a peak of 19 lakh in 2011. For at least 10 years now, it has been a minor player in the market.

In fiscal 2014-15, its total revenue stood at Tk 139.77 crore, while its investment was zero, according to the regulator.

Singapore's SingTel owns 44.54 percent shares in Citycell, Pacific Motors 37.95 percent and Far East Telecom 17.51 percent.

Shareholders had been trying to sell the operator's licence for the last few years but could not find any interested party.