Loading...

Audit dispute with regulator

GP network likely to face major setback

Company's new CEO hopeful about reaching agreement through negotiations


| Updated: February 05, 2020 13:06:57


GP network likely to face major setback

The Grameenphone (GP), country's largest cellphone operator, will not be able to provide new connections after two weeks due to restrictions imposed by the telecom regulator, its top executive said on Monday.

"GP's network might also face a major setback within four to six weeks if it fails to settle audit dispute with the telecom regulator," GP Chief Executive Officer Yasir Azman told a press conference held at GP House in city.

He said the stock of new SIMs of the operator will be exhausted within two weeks and the service quality may also face major problem if the regulator does not give approval for network expansion within four weeks.

Stating that the time is crucial for GP, he said, "A huge number of customers and businesses depend on our network in so many ways. If we face any big trouble, they will suffer."

Due to the restrictions imposed by the Bangladesh Telecommunication Regulatory Commission (BTRC) on import of network equipment and network expansion since July last year, he said, GP's customers had been facing problems.

"Our plan was to build around 2,000 towers last year but we couldn't do that. Even we need some more towers in Dhaka, but everything is halted. If the situation continues for more 3-4 weeks, then there could be major problem with our service," he explained.

The Appellate Division of the Supreme Court has ordered GP to pay Tk 20 billion by February 24 as instalment of Tk 125 billion audit claim of the BTRC.

If the GP fails to do so, the BTRC could take measures, including appointment of administrators, against Grameenphone.

The GP, however, filed a review petition with the Appellate Division last month, saying that it could afford to pay Tk 5.75 billion within the stipulated time.

Mr. Yasir Azman has expressed the hope that things will be sorted out through discussion. "We want to get things back to the negotiating table. I have reached out to the government high-ups and their response was positive."

He, however, said as the matter is pending with the court, the government will wait for the final verdict. "The GP will also have full faith in the judicial system of the country."

The GP had started its journey with 017 prefix, but that has been exhausted. In October 2018, it was allocated 0130 and 0131 number series, each with 10 million slots.

The operator is close to using up recently-assigned number series and the BTRC is refusing to give it any further number series.

A BTRC official said the commission suspects that lots of numbers are still vacant on GP's existing number series.

Mr. Yasir said almost three million numbers could be renewed from the existing number series, but the regulator is not allowing that also.

"The government is planning to launch 5G within next two years. To this end, we are also taking preparations. But in such a situation, it is difficult to focus on 5G as we need much more better network expansion for 4G."

"Our plan is to set up 4,000 towers by the end of this year with 90 per cent 4G-coverage," he added.

However, BTRC Chairman Jahurul Haque on Monday said it is not possible to receive Tk 5.0 billion out of Tk 22 billion-the amount that the government want the GP to pay

The chairman also set February 24 as deadline, saying that an administrator will be appointed to the telecom company if it fails to pay the total amount within the stipulated time.

"We can't accept Tk 5.0 billion. We will accept, only if court orders us to accept the amount," he said.

Earlier on January 26, the telecom operator filed a review petition with the Appellate Division, requesting the court to cut the amount it had been asked to pay.

The leading mobile operator of the country wants to pay Tk 5.75 billion in 12 instalments.

Earlier, the Appellate Division asked Robi to pay Tk 1.38 billion to the telecom regulator in five instalments.

On January 13, Robi paid the BTRC Tk 276 million as its first instalment following the High Court order.

The second-largest operator will have to pay its second instalment by February 29.

Questioning the telecom regulator's audit process, earlier, Grameenphone refused to pay the money it had been asked to pay.

The BTRC chairman said if court reduces the amount for GP, Robi also deserves a reduction in payments.

"Whatever the verdict comes from the Appellate Division, we will comply with it," he added.

On July 17, 2019, the BTRC decided to restrict permission for various services, imports, and infrastructure development by mobile phone operators -- Grameenphone and Robi for non-payment of their dues.

The mobile operators have to obtain NOCs from the BTRC before launching any package for users, importing radio equipment, and building new towers.

After auditing the two companies, the regulator in 2016 claimed Tk 125.79 billion from the market leader GP and Tk 8.67 billion from the Robi in taxes, and interest accumulated on dues over the years.

[email protected]

Share if you like

Filter By Topic