Remedy for PSTN operators

Teledensity in Bangladesh has grown tremendously, thanks to competitive participation of mobile operators. Call charges have substantially been reduced and the mobile phone is now affordable.Photo: STAR

A decade ago, teledensity in Bangladesh was the lowest, compared to other parts of the world. There was a great demand for telephones, which the then Bangladesh Telegraph and Telephone Board (now Bangladesh Telecommunications Company Ltd), the state owned enterprise, was miserably failing to meet. This situation necessitated liberalisation of the telecom sector for private participation.
Public switched telephone network (PSTN) is the basic telephone service, which is the backbone of the telephone system of a country. To consolidate the telecom system in Bangladesh on a sound foundation, the first commission granted licences to the PSTN operators on certain criteria as per provisions of the Bangladesh Tele-communication Act, 2001.
Within a decade, teledensity in Bangladesh has grown tremendously through competitive participation. Call charges were substantially reduced and the telephone became affordable. In a country of 160 million, the demand for telephones grew, which attracted both domestic and foreign investors.
In March, Bangladesh Telecom Regulatory Commission (BTRC) shutdown the networks of five PSTN operators, on allegations of undertaking illegal VOIP and international call termination, which allegedly caused huge revenue loss to the government in terms of a disproportionate use of call minutes.
BTRC called for explanations, to which, all operators replied in due time. BTRC, all of a sudden, cancelled the licences of the PSTN operators. A huge number of subscribers are deprived of telephone service and the operators' investment is being ruined.
I am told that the PSTN operators were not allocated any bandwidth, without which, there was no scope for them to do the VOIP business. I would not like to enter into this controversy, but it seems there might have been some misgivings, which should have been sorted through appropriate investigation based on specific evidence before going to such an extreme as canceling their licences.
There are instances where mobile phone operators, who are all foreign investors, were found engaged in the unauthorised VOIP business. In their cases, BTRC realised the lost revenue of the government through penalties.
No doubt BTRC has the absolute power to cancel licences on justified grounds, in the due process of law.
In the instant cases, BTRC, without ascertaining the amount of revenue loss caused by individual operators and based on specific evidence, perhaps cancelled the licences in haste. This created concerns over consumers' interest, operators' investment, asset disposal and network equipment. These will eventually bog BTRC down with a huge exercise of efforts. Ultimately, the telecom sector in Bangladesh has been pushed back by 20 years, to recover from the wounds.
In the Bangladesh Telecommunication Act 2001, the commission is given power to take corrective measures, impose fines, suspend, revoke and cancel licences, on the grounds of a violation of terms.
On the other hand, establishing a telecom network and providing services without a licence shall be punishable with imprisonment for 10 years and/or a fine of Tk 10 lakh.
BTRC also lodged criminal cases against the operators for the same allegations, which are pending. The cardinal principle of law is that until proven guilty, the accused shall be presumed innocent.
In the cases of the ill-fated operators, this fundamental principle has not been followed.
This situation, in my view, necessitates the search for a quick and effective remedy. BTRC may review the cases, ascertain exactly the extent of their fault in causing the loss and the amount, through extensive scrutiny and take steps to realise the amounts from them. It may also rescind the order of cancellation and revive the licences in exercise of power.
It is learnt that some of the operators instituted writ petitions in the High Court Division, challenging the propriety of the cancellation order, wherein the court issued rules. As a result this, the dispute became subjudice. Every moment counts. If the crisis is not resolved soon, the wounds will deepen, costing much to the nation.
Court proceedings are time consuming and for that, the alternative forum for disposal of commercial dispute is always preferred. The alternative dispute resolution through negotiated settlement by mediation may be considered useful, which, in my view, may solve the stalemate.

The writer is the former additional secretary of the law, justice and parliamentary affairs ministry and the ex-commissioner of BTRC. He is currently the chief editor of Mainstream Law Reports.