Telcos turn in 3G applications

The dark clouds of uncertainty over the 3G fate seem to have started clearing as all the five private mobile operators yesterday submitted applications to participate in the September 8 auction.
Senior officials of Grameenphone, Banglalink, Robi, Airtel and Citycell said they submitted the applications to the legal department of Bangladesh Telecommunication Regulatory Commission.
However, the officials asked for resolving the disputed issues, including the tax administrator's claim for more than Tk 3,000 crore from four operators as value added taxes for SIM replacement, before August 26, when they will have to deposit the bid's earnest money -- $20 million.
As no new entrants submitted applications to participate in the auction, the reserved licence for a new operator will now go to an incumbent operator, according to the 3G licensing guideline.
State-run Teletalk submitted its application on July 27 though it has been offering 3G services on a trial basis since last year. The operator will pay the licence price as per the auction.
The 3G auction date has so far been deferred twice. About the delay, BTRC Chairman Sunil Kanti Bose said the government had to revise the tax structures to meet the expectations of the operators.
"The previous tax regime was not business friendly for the operators. The regulatory environment has also improved now," he said.
Four licences will be given to the successful bidders among the five private operators, Bose said.
To clear the tax-related disputes, a committee has already been formed with the participation of the National Board of Revenue, BTRC and the mobile operators.
The government recently waived a 15 percent VAT on the revenue the mobile operators will share with the telecom regulator under 3G licences.
The government also reduced VAT to 5 percent from the present 7.5 percent on the spectrum charges for 3G licences.
Banglalink CEO Ziad Shatara said they hope all the disputed issues would be resolved before August 26 to "pave the way for Banglalink to submit the earnest money and confirm participation in the auction.”
Mahmud Hossain, chief corporate affairs officer of Grameenphone, and Mahmudur Rahman, executive vice president of Robi, also expected the same.
TIM Nurul Kabir, secretary general of Association of Mobile Telecom Operators of Bangladesh, said, “We are working hard to resolve the SIM replacement issues by August 26.”
The operators also said the auction process is yet to be finalised and they will sit with the BTRC on August 19 to discuss the issues.