Bangladesh closing down oldest mobile-phone operator Citycell anytime

Bangladesh’s oldest mobile-phone operator Citycell is closing down after failing to pay the governments dues.

Telecom regulators BTRC Chairman Shahjahan Mahmood said the authorities will shut the company down anytime.
 
In that case, BTRC will notify the Citycell customers to switch to other operators within Aug 16, Mahmood said.

Bangladesh's lone CDMA operator, which has seen a massive exodus of its subscribers, owes the government over Tk 4.775 billion in dues.

According to the BTRC, the number of its customers was 700,000 in June, which is less than 1 percent of total mobile-phone users.

Mahmood told bdnews24.com on Sunday, “Citycell has not taken any step to pay the dues despite repeated reminders.   

“We can close Citycell anytime for not paying dues, in line with laws,” he said.

BTRC has the authority to take final decisions on legal steps like cancelling its spectrum and closing down operations anytime, according to Mahmood. 

Asked whether the operator is going to be closed soon, he said, “We can shut it anytime in line with law, but the subscribers should be given time.”

A top BTRC official told bdnews24.com that Citycell has not paid the second and third instalments of the renewal fees of Tk 2.29 billion for 8.82 megahertz spectrum in breach of the condition set for licensing after the spectrum renewal in 2012.

The other dues include Tk 100 million annual licence fees, Tk 271.4 million for annual spectrum fees from 2013 to 2016, Tk 278.4 million revenue sharing from 2014 to 2016, Tk 89.2 billion corporate social responsibility fund from 2011 to 2016, Tk 399.2 billion VAT and Tk 1.35 billion late fees.

The BTRC official said the operator had also been served a notice to explain why it should not face legal action for not paying up.

Citycell lost over 1.5 million subscribers in past five years. It had around 2.3 million customers in 2010.

According to the BTRC, the number of SIM cards with the mobile-phone users in the country was over 130 million in June. Citycell had only 700,000 customers then.

Its parent company Pacific Bangladesh Telecom Limited got licence for telecom services in 1989.

BNP leader and former foreign minister M Morshed Khan’s Pacific Motors has 37.95 percent stakes in Citycell.

Singapore-based SingTel Asia Pacific Investments Pte Limited holds a majority share of 45 percent.

Far East Telecom Limited owns a 17.51 percent stake.