Telecom ministry yet to approve guideline

No progress in implementing SMP

Even though two years have passed, the Posts and Telecommunications Division is yet to approve the significant market power (SMP) guideline.

Recently, the Bangladesh Telecommunication Regulatory Commission (BTRC) decided to forward a letter to the Telecom Ministry stating the significance of the SMP guideline as tangible progress in SMP is yet to be observed. According to the regulatory body, the telecom regulator wants the policy to bring healthy competition to the telecom market.  

In a statement to The Independent, the BTRC Chairman Dr Shahjahan Mahmood said: “The main objective of BTRC is to ensure the benefit of the subscribers. And to this effect, we are talking about the issues. The subscribers will be benefited if the SMP guideline is approved.”

In 2009, the BTRC appointed a specialist from the International Telecommunication Union (ITU) to prepare a report on significant market power (SMP).  According to the report, an organisation should be considered as an SMP if its market share is at least 45 per cent. The special tariff and tax system will be applicable for the organisation that is incorporated into SMP, with a view to enhance the capability of other organisations in the market to establish a level playing field.

In 2011, the BTRC planned to launch SMP and prepared the SMP guideline to this end. The telecom regulator, on  21 August 2011, had sent the guideline to the then Posts and Telecommunications Ministry for approval.

In 2012, the Posts and Telecommunications Division requested the BTRC to scrutinise the guidelines under the Competitiveness Act of 2012. After scrutinising the guideline under the Competitiveness Act, the BTRC sent the guideline to the Division in the same year.

In 2015, the BTRC requested the Telecom Division to provide its approval for the guideline. Subsequently, the Posts and Telecommunications Division sent a letter to the BTRC in April, asking the regulator to review the guideline and to consider the opinions of the Investment Board, the Industries Ministry, and the Finance Ministry once again.

In the same year, the BTRC forwarded the letters to the Investment Board, the Industries Ministry, and the Finance Ministry, seeking its opinion on the SMP. The regulator also held a meeting with mobile phone operators to review their outlooks and recommendations. Then, the BTRC brought about some changes in the SMP guideline on the basis of the advice of the Investment Board and the telecom operator, and sent it to the ministry.

Although two years have already elapsed, there has been no progress in this matter and the Telecom Ministry is yet to approve the guideline. Though any tangible progress is yet to be seen, the BTRC decided to forward a letter to the Telecom Ministry that states the significance of the SMP guideline.

According to the International Telecommuni-cation Union (ITU), the creation of an enabling environment for efficient market competition is particularly important in protecting consumers, expanding the set of products and services available, and encouraging innovation.

“This has been a key aim for a majority of regulatory authorities and governments around the world.  As reported in the ITU Telecommuni-cation/ICT Regulatory Survey, most ITU Member States have legal definitions of the concept of dominance or significant market power (SMP). Consequently, they have adopted some form of ex-ante regulation. The identification of SMP issues often follows the European Union’s 2002 Common Regulatory Framework for Electronic Communications Services. However, each country has its own interpretation and implementation of SMP measures, observes an ITU study on Competition Policy and Significant Market Power.

According to a report published by Telenor, in 2016, Grameenphone acquired 54 per cent of the service revenue market share; Banglalink received 24 per cent, and Robi received 23 per cent. In terms of average revenue per user, mobile phone operators get 63 per cent more revenue from smart phones than feature phones. The report did not include Teletalk’s service revenue market share.

 

Telecom ministry yet to approve guideline

No progress in implementing SMP

Even though two years have passed, the Posts and Telecommunications Division is yet to approve the significant market power (SMP) guideline. Recently, the Bangladesh Telecommunication Regulatory Commission (BTRC) decided to forward a letter to the Telecom Ministry stating the significance of the SMP guideline as tangible progress in SMP is yet to be observed. According to the regulatory body, the telecom regulator wants the policy to bring healthy competition to the telecom market. In a statement to The Independent, the BTRC Chairman Dr Shahjahan Mahmood said: The main objective of BTRC is to ensure the benefit of the subscribers. And to this effect, we are talking about the issues. The subscribers will be benefited if the SMP guideline is approved. In 2009, the BTRC appointed a specialist from the International Telecommunication Union (ITU) to prepare a report on significant market power (SMP). According to the report, an organisation should be considered as an SMP if its market share is at least 45 per cent. The special tariff and tax system will be applicable for the organisation that is incorporated into SMP, with a view to enhance the capability of other organisations in the market to establish a level playing field. In 2011, the BTRC planned to launch SMP and prepared the SMP guideline to this end. The telecom regulator, on 21 August 2011, had sent the guideline to the then Posts and Telecommunications Ministry for approval. In 2012, the Posts and Telecommunications Division requested the BTRC to scrutinise the guidelines under the Competitiveness Act of 2012. After scrutinising the guideline under the Competitiveness Act, the BTRC sent the guideline to the Division in the same year. In 2015, the BTRC requested the Telecom Division to provide its approval for the guideline. Subsequently, the Posts and Telecommunications Division sent a letter to the BTRC in April, asking the regulator to review the guideline and to consider the opinions of the Investment Board, the Industries Ministry, and the Finance Ministry once again. In the same year, the BTRC forwarded the letters to the Investment Board, the Industries Ministry, and the Finance Ministry, seeking its opinion on the SMP. The regulator also held a meeting with mobile phone operators to review their outlooks and recommendations. Then, the BTRC brought about some changes in the SMP guideline on the basis of the advice of the Investment Board and the telecom operator, and sent it to the ministry. Although two years have already elapsed, there has been no progress in this matter and the Telecom Ministry is yet to approve the guideline. Though any tangible progress is yet to be seen, the BTRC decided to forward a letter to the Telecom Ministry that states the significance of the SMP guideline. According to the International Telecommuni-cation Union (ITU), the creation of an enabling environment for efficient market competition is particularly important in protecting consumers, expanding the set of products and services available, and encouraging innovation. This has been a key aim for a majority of regulatory authorities and governments around the world. As reported in the ITU Telecommuni-cation/ICT Regulatory Survey, most ITU Member States have legal definitions of the concept of dominance or significant market power (SMP). Consequently, they have adopted some form of ex-ante regulation. The identification of SMP issues often follows the European Unions 2002 Common Regulatory Framework for Electronic Communications Services. However, each country has its own interpretation and implementation of SMP measures, observes an ITU study on Competition Policy and Significant Market Power. According to a report published by Telenor, in 2016, Grameenphone acquired 54 per cent of the service revenue market share; Banglalink received 24 per cent, and Robi received 23 per cent. In terms of average revenue per user, mobile phone operators get 63 per cent more revenue from smart phones than feature phones. The report did not include Teletalks service revenue market share.