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BTRC likely to backtrack on telcos' bandwidth cut decision

  • Published at 10:18 pm July 16th, 2019
BTRC logo
Logo of Bangladesh Telecommunication Regulatory Commission

The BTRC on July 4 cut 30% internet capacity of Grameenphone and 15% of Robi Axiata Ltd

Bangladesh Telecommunication Regulatory Commission  (BTRC) is likely to backtrack on its earlier decision which reduced bandwidth capacity of two largest mobile phone operators after the companies had failed to pay dues.

The BTRC on July 4 cut 30% internet capacity of Grameenphone and 15% of Robi Axiata Ltd.

"The commission would find out alternative ways to collect the dues without affecting the service of the subscribers," a senior official at BTRC told Dhaka Tribune.

After auditing the two companies, the BTRC in 2016 claimed Tk12,579.95 crore from market leader GP and Tk867.23 crore from Robi in taxes, and late fees that accumulated over the years.

In another development, the commission is likely to get the VAT registration in a bid to resolve the ongoing dispute over revenue sharing and other payment of mobile phone operators.

The BTRC last week refused to take payment, amounting to around Tk1,000 crore, from the mobile phone operators for April-June quarter as the operator wanted to pay excluding VAT.

The mobile phone companies said as the BTRC did not have any VAT registration, the operators were not allowed to pay the VAT amount to the telecom regulator.

According to the Value-Added Tax and Supplementary Duty Act, 2012, all service suppliers must have VAT registration, which includes the BTRC. The VAT rate is 15%.