The finance division of the finance ministry has sought a business plan from Teletalk to consider funding the state-run mobile operator so it could pay the outstanding spectrum fees.
Teletalk is using the spectrum since the launch of its 3G services in October 2012.
The operator has also been asked to explain how it spent funds in the country’s social welfare along with a list of programmes undertaken so far.
The instructions were given at a meeting held recently at the finance division with finance secretary
Fazle Kabir in the chair. The meeting was held to find a way to refinance the Teletalk.
The meeting was attended, among others, by secretary of the telecom ministry Md Abu Bakar Siddique, managing director of Teletalk Md Mujibur Rahman and BTRC chairman Sunil Kani Bose.
According to sources, Teletalk sought 15% waiver from the late fees as it had earlier decided to pay Tk50 crore within a short time, and later it paid the amount accordingly to BTRC against the 3G services.
The business plan will be discussed again at a meeting scheduled for January 30 at the finance division. The meeting will discuss on how the government could finance Teletalk, according to the officials.
The finance division officials categorically said the income of the mobile operator is less than its expenditure. That’s why the state-run operator needs a business-friendly plan for the sake of its existence.
Attending the meeting, Bangladesh Bank representative said Teletalk would not be able to pay back the loans from commercial banks as it is not at all financially sound. Apart from that the company will have to pay 14% interest if the government decides to issue bonds for the recapitalisation.
Currently, Teletalk has 3,000 base transceiver stations (BTS) or towers for 3G and voice connectivity across the country, and installations of around 5,000 BTS completed by December last year, which would enable the operator to maintain 90 lakh connections at a time.
The operation of Teletalk has been expended so far in 18 districts across the country, including Chittagong Hill-Tracks and the Sundarbans areas.
The telecom regulator provided 3G licences to Grameenphone, Banglalink, Robi and Airtel last September and they have already launched the services on trial basis.
Grameenphone purchased 10 MHz while the three others private operators bought 5 MHz each. The oldest operator, Citycell, could not purchase 3G spectrum due to fund crisis.