Operators reluctant to participate

Uncertainty looms over BTRC's upcoming 1800 & 2100 MHz bands spectrum auction as the country's top mobile operators are unwilling to participate in the auction unless various issues, including SIM replacement tax dispute, are resolved.

The auction date was finally scheduled for June 10 after having deferred for three times.

Sources at the BTRC (Bangladesh Telecommunication Regulatory Commission) said in February they fixed April 30 for holding an auction to sell the 1800 & 2100 MHz band but no mobile operator submitted application for joining the auction.

Sources at the mobile operators said a meeting was held between the Chief Executive Officers (CEOs) of the four mobile operators and the BRTC chairman on March 18 in this regard.

Later, the phone companies --Telenor Group for Grameenphone, VimpelCom for banglalink, Axiata Group for Robi and chief executive of Indian Airtel for the Airtel -- sent separate letters to finance minister for deferring the date and resolving the unsettled issues.

The National Board of Revenue (NBR) had been demanding Tk 3,100 crore from the four mobile operators as SIM replacement tax since 2012, BRTC sources said.

According to NBR sources, the four companies sold a huge number of old SIMs to new clients as part of SIM replacement from 2007 to 2011 and they must pay tax for those sold SIMs.

But the mobile operators claim that they do not sell old SIMs to new clients, rather they just replace the SIMs if any client loses it.

Secretary to the Association of Mobile Telecom Operators of Bangladesh (AMTO) TIM Nurul Kabir said they have held several meetings with the finance minister, the NBR and the BRTC authorities for solving various issues, including SIM replacement tax and VAT on airwave.

He said, “We pay tax to the government after the client first buy a SIM card from us. But if the client lost the SIM and replaces it, why shall we pay tax again for the replaced SIM. We will decide to take part in the auction after the government resolves the pending issues.”

The BRTC fixed US$ 3 crore as the price of per megahertz spectrum of 1800 MHZ band Web, and US$ 2.20 crore per megahertz spectrum of 2100 MHZ band for the auction bid.

BRTC Secretary Sarwar Alam said they sent a letter to the post and telecommunications ministry to make some changes in the spectrum auction to ensure participation of all mobile operators.