Telcos urge regulator to alter licence guideline
Four mobile phone operators urged the telecom regulator yesterday to reconsider the VAT, employment and loan regulations of the final 2G licence renewal guideline.
The chief executive officers and some other high officials of Grameenphone, Banglalink, Robi and Citycell met Zia Ahmed, chairman of Bangladesh Telecommunication Regulatory Commission (BTRC) yesterday.
The officials say these issues have not been reflected in BTRC's guideline posted on its website on Sunday.
However, a high official of BTRC said the regulator's chairman has clarified the issues to the telecom officials saying that the licensing guideline has been finalised.
The Daily Star's calls to Zia Ahmed's mobile phone were unanswered.
M Rafiqul Islam, additional secretary of the telecom ministry, the licensing authority, said the ministry has communicated with BTRC about the issues.
The disputed issues will be addressed as confusion has surfaced over the guideline, he said.
Mehboob Chowdhury, CEO of Citycell, said operators sought a meeting with the BTRC chairman to express their concerns over the guideline.
The operators' foremost reservation is about the VAT (valued added tax) as the final guideline says the mobile operators will have to pay all fees, including Tk 7,563 crore in spectrum charges, plus 15 percent VAT.
Currently, the operators deposit the fees to BTRC, which does not include 15 percent VAT. As much as 85 percent of the payable money of the total cash goes to the telecom regulator, while the rest 15 percent goes to the National Board of Revenue.
According to the guideline, the licencees should take permission from the commission for taking loans and provide loan-related information to the commission.
Operators will have to obtain written approval from the telecom watchdog before introducing any service, offer or package. Telecom officials say the rule is not business-friendly.
In the meeting at the telecom ministry, it was decided that the number of foreigners employed at the top two rungs at the mobile operators will not exceed 50 percent of the total recruits.
But the regulator has brought in change to the guideline that stipulates that the number of foreign officials will not exceed 50 percent in each tier.
Another important issue, the officials pointed out, is that the operators will have to pay their annual spectrum charges in US dollars. They claim that the issue was also settled and it was decided that they would pay money in local currency as the greenback's value fluctuates every day.
The operators will have to pay 49 percent of their spectrum charges by November when the licences will be renewed, and the rest would be paid in three installments in May 2012, November 2012 and May 2013.
The telco officials also requested for deadline extension of the first installment payment date due to time constraint.
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