The finance ministry has again rejected a proposal of Bangladesh Telecommunication Regulatory Commission to lower the international call termination charge to 1.5 US cents from the existing 3 cents for the IGW operators. In a letter sent to BTRC on Tuesday, the ministry asked the telecom regulatory body to review the proposal terming it a piecemeal move.‘The BTRC should conduct a comprehensive baseline study to analyse the impact on the industry and risk factor of the stakeholders rather than suggesting piecemeal steps,’ said the finance ministry letter.
The BTRC in July last year proposed the telecom ministry should lower the incoming international call charge and reduce the government revenue sharing to 40 per cent from the existing 51.75 per cent.
The BTRC took the move apparently to give benefits to the new IGW operators who got licences on political backing.
The BTRC in the proposal admitted that the proposed plan would slash the government revenue to Tk 777 crore from Tk 1,851 crore – the government’s annual income from IGW and ICX operators in 2012 for an average of 35 million calls per day.
After the finance ministry rejected the proposal in March 2014, the BTRC sent a second proposal twisting the first proposal, said sources in the telecom ministry.
This time, the regulator said that the government revenue after the tariff cut would be Tk 1,778 crore considering total international
call at 80 million minutes per day instead of 35 million minute per day, they said.
‘We hope if the tariff cut comes into effect then it will stop illegal call termination and the average call per day will increase to 80 million minute,’ said the second proposal of BTRC.
BTRC’s projected calculation, however, would also cause a government loss of Tk 73 crore.
The BTRC second proposal also said the government should approve the proposal in a test basis for one year period.
The proposal also said the market turned dull because too many IGW licences had been issued and lowering the rates would make new IGWs sustainable.
Only four companies were given licences through an auction when IGW service was introduced in Bangladesh in 2008.
The Awami League-led government in 2012 awarded 25 more licences – mostly to people linked to the ruling party.
The regulator had proposed at best 10 more licences, but the government in last year awarded 25 IGW and 23 ICX licences.
The BTRC is already facing trouble to realise the revenue share form the IGW operators because of their strong political links.
The telecom regulator has also initiated legal proceedings to realise the dues from the IGW operators.
Finance minister Abul Maal Abdul Muhith while rejecting the
first proposal said that the
proposed action of the telecom regulator lacks clarity, vision and proper direction.
He also said that the government cannot afford to go for a reduction in charges without being
convinced that the action either benefits the government’s exchequer or the users.
-With New Age input
