Four major mobile operators yesterday urged the government to rationalise their licence renewal fees to help the sector grow.
They also demanded a flat rate of fees for spectrum acquisition.
Grameenphone, Banglalink, Robi and Citycell that control 92 percent of the country’s mobile market, however, did not specify how much concession they expect from the authorities.
The government should modify the draft licence renewal guidelines in line with its Digital Bangladesh vision and the best practices at home and abroad, they said at a press conference at Sonargaon Hotel in the city.
The draft guidelines of Bangladesh Telecommunication Regulatory Commission (BTRC) proposed a payment of Tk 12,050 crore as spectrum acquisition fee and raising annual revenue sharing to 7 percent, evoking sharp criticism from the operators and experts.
The licences of these operators have to be renewed before November 11 this year.
Grameenphone Chief Executive Officer Oddvar Hesjedal said the sector is now at a critical juncture faced with the requirements incorporated in the guidelines.
“This comes at a time when we are focusing more on data services rather than voice only. We need a sustainable regulatory framework for the future development.”
He said the operators would still be able to pay the fees if the government sticks to its decision. “In that case, we will have to borrow from the financial sector. But Bangladesh’s financial sector does not have that ability to lend. As a result, we have to borrow from outside.”
“To pay back to investors, we will need to charge the customers higher tariffs.”
The chief executive of the top mobile operator also urged the government to organise a dialogue, which will ensure open and transparent discussion and argumentation. He also requested the authorities to take time to reach a win-win decision and not to hurry to reach any conclusion.
Banglalink CEO Ahmed Abou Doma said the four operators find the guidelines disagreeable. “There are some questions unanswered. We sent BTRC some queries, but received no response.”
He said no operator, apart from Grameenphone, has been able to break even although they have been investing for years.
“We are still waiting to make profit for our shareholders,” he said, urging the government to create an investment-friendly environment, as the country receives the highest foreign direct investment in the sector.
He said the end-users would be the ultimate victims of high licence renewal fees. “We do not want that, but there will be no choice left.”
Robi CEO Michael Kuehner said, “We are now at a crossroads, and dark clouds are on the horizon.”
Mahfuzur Rahman, acting CEO of Citycell, Mahmud Hossain, head of GP corporate affairs, and Zakiul Islam, president of Association of Mobile Telecom Operators in Bangladesh, also spoke.
