The Bangladesh Telecommunication Regulatory Commission (BTRC) has little control over most of the country’s telecommunication gateways, including in the collection of licence fees owed for placing international calls, its chairman has told the Dhaka Tribune.
Sunil Kanti Bose, chairman of BTRC, acknowledged challenges in monitoring international gateway (IGW) operators, in a recent interview. He expressed similar concerns at a seminar organised by the GSM Association (GSMA) on June 15 in Dhaka.
At the seminar, Bose said: “We cannot bring all the gateways under the structure. To speak frankly, the number of licences is a big problem.”
Bose denied facing any political pressure, and told the Dhaka Tribune: “As we do not have enough manpower, it is difficult maintaining all the files.”
In March last year, the country’s total incoming international calls stood at 1,245m minutes per month, via four IGW operators and one state-owned company BTCL. However, BTRC awarded 25 new IGW licences in June and the number of minutes registered fell to 907m in September that year, according to BTRC statistics.
Currently, there are 29 IGWs in total, and the average incoming international calls per month is estimated at between 1,254m-1,310m minutes, according to statistics available up to March this year.
Legal international incoming calls net the government $.03 per minute and out of this total amount 51.75%, comes to the government exchequer via BTRC.
The BTRC chairman said: “It is true that all the international calls were not made legally as we had hoped for. We expected the competition would increase, but it has not happened throughout the year.”
“Then again, it is better that ten people make profit rather than four,” he said.
In 2008, the BTRC awarded four IGW three ICX and two IIG licences. The regulator had proposed at best 10 more licences, but the government in 2012 awarded new 25 IGW, 23 ICX and 34 IIG licences, and now the total number of gateway licences stands at 91.
Sunil Kanti Bose said:“Increasing the number of gateway licences was a political decision. Maybe policymakers thought it was the appropriate number.” Bose himself was the telecommunication secretary at the time when the then telecommunication minister made the decision.
Many of the newly issued IGW licences were awarded to companies who have political affiliations, for example.
Roots Communication Ltd is the sister concern of a group owned by a mid-level minister.
First Communications Limited is owned by a Jatiya Party presidium member.
Vision Tel Limited is owned by an AL MP, who is also a member of the parliamentary standing committee on the ministry of post and telecommunications.
Ratul Telecom Limited is owned by the daughter of a influential state minister.
Digicon Telecommunication Limited is owned by a MP. Vision Tel Limited is another IGW run by an ex-minister and a state minister.
BTRC served show-cause letters to four of these companies for violating its regulations in March, but is yet to get any reply.
“As the government is passing their last few months, all the politically influenced licence holders are making returns on their investments. They will not pay any money, some operators have already said unofficially,” a BTRC high-ranking official told the Dhaka Tribune, requesting anonymity.
Although at a meeting on Monday, the BTRC decided to take a tougher stance on the gateways, it has also indicated it is not in favour of suddenly cancelling licences.
IGW’s owe Tk1.5b in annual licence fees
The BTRC did not receive Tk1.5bn annual licence fees from 20 IGW operators on time. The payments were due by June 10, 2013.
Only three exisiting companies Novotel, Mir Telecom and Banglatrac and two new operators BG Tel Ltd and HRC Technologies Ltd are reported to have renewed their licences, paying Tk750m each with 15% VAT, within the allocated time. Another four companies who received licences later on still have time to deposit the licence renewal fees.