‘3G auction after issues resolved’

The telecoms regulator says it will iron out issues with the mobile phone operators before auctioning the 3G licence to get their assistance.

BTRC will hold the auction on June 24 to award 3G mobile-phone service spectrum. Carriers will apply by May 12 and those eligible for the pre-qualification bidding would be named on May 20 after scrutiny.

Selected operators will deposit $20 million each as earnest money by May 30 to attend the auction and the list of the companies eligible for the final public sale will be out in June 5. The licence will be valid for 15 years.

BTRC Chairman Sunil Kanti Bose told bdnews24.com they will resolve problems of the operators and create a ‘win-win’ situation before the auction.

The operators have been demanding authorities solve the VAT issue involving the 2G licence and reduce VAT on 3G. The 3G licensing guideline has also come under question.

After nine months of complexities, the BTRC renewed 2G licences of Grameenphone, Banglalink, Robi, and Citycell in August last year.

The operators have filed a total eight lawsuits against the telecoms regulators over issues mainly concerning VAT rebate. However, the National Board of Revenue (NBR) has been saying there is no option for rebate.

As the tug of war continued, Finance Minister AMA Muhith held a meeting with representatives of the operators, the BTRC and the NBR on July 26 last year. He said the government and the operators had reached consensus on three issues.

One of the issues agreed upon was that the operators would get 15 percent concession from the NBR each year while renewing their licences and that both parties would accept the court’s decision.

However, the cases are still pending with court although the licences had been renewed.

Asked about the cases, BTRC chief Bose said, “Both sides will have to accept the verdict but the BTRC will take steps so that the operators benefit in the long run.”

The regulator’s lawyer Khandker Reza-e-Rakib said lawsuits filed by the Grameenphone, Banglalink and Robi are being heard at the Appellate Division and added that initiatives had been taken to resolve them.

A top BTRC official, who preferred anonymity, told bdnews24.com a proposal had already been sent to the finance ministry to halve VAT on 3G licence to 7.5 percent from proposed 15 percent.

State-owned operator Teletalk began trialling the 3G services on Oct 14 last year. It will enjoy the 3G spectrum outside of the auction and will get the licence by paying the lowest bidding money.

Teletalk’s launch has opened up a new horizon in Bangladesh's telecom sector.

3G or Third Generation services come after GPRS and EDGE. The advantages of 3G services include faster connectivity, which gives uninterrupted video streaming on phones, enables video calls and is conducive for data-intensive applications.