Grameenphone ‘Go Broadband’ illegal

POST TIME: 31 May, 2016 00:00 00 AM / LAST MODIFIED: 31 May, 2016 12:21:07 PM

Observes telecoms regulator BTRC

TAREQUE MORETAZA

Grameenphone ‘Go Broadband’ illegal

Grameenphone (GP), the largest telecom operator of the country, has violated telecom rules by running ‘Go Broadband’ services, Bangladesh Telecom Regulatory Commission (BTRC) has observed. Grameenphone, in alliance with ADN Telecom and Agni Systems, offers ‘Go Broadband’ services that provide fibre-optic connections ‘by violating BTRC’s Wi-Max policy guidelines’, the telecoms watchdog said.
After a series of scrutiny over the GP explanations regarding the services, the Engineering and Operations Department of the BTRC came up with the observation last week.
In a note, a copy of which has been obtained by The Independent, the BTRC’s Engineering and Operations Department has also recommended that GP should be slapped with a monetary fine for this ‘severe violation’ of the articles 4.7 and 4.8 of the BTRC guidelines on telecom infrastructures.
“The operator cannot share or lease its infrastructure without permission from the regulator. Grameenphone, as a mobile phone operator, cannot provide wire-connectivity. The operator is also providing fibre connectivity, which can only be done by NTTN operators,” a BTRC senior official told The Independent while explaining the nature of the violations by mobile operator Grameenphone.
“It is providing wire technology connectivity to 551 branches of Sonali Bank without obtaining permission from the BTRC. It is also providing modem services what wi-max service providers Qubee and Banglalion do despite obtaining no Wi-Max licence,” he continued.
In the latest, GP has clinched a deal with Sonali Bank, the country’s largest state-owned commercial bank, to provide them with the Go Broadband services.
The BTRC, in its observation, said that by providing services to 551 branches without involving any NTTN operator and by concealing the information to the BTRC, GP has done a severe blunder of violation of rules.
It has been doing the ISP business without obtaining any license for doing this business, BTRC observes.
When asked, Brig Gen Iqbal Ahmed, BTRC director general, told The Independent that they sought the operator’s explanations regarding their findings. “Necessary steps will be taken after getting their reply,” Ahmed added.
After receiving a complaint, the BTRC, in a letter issued on March 30, pointed out six allegations of irregularities and asked Grameenphone, ADN Telecom and Agni Systems to present their explanations by April 13.
Earlier, on February 28, Internet Service Providers Association Bangladesh (ISPAB) submitted the complaint against Grameenphone and its two partners.
When contacted, Sayed Talat Kamal, head of External Communications of GP, said, “Agni Systems Ltd and ADN Telecom Ltd, in partnership with Grameenphone, have been offering Go Broadband services with specific approval from the regulator.”
Past records of GP
GP was fined on two occasions in 2007 and 2008 for offering illegal VoIP services, compelling the company to pay Tk 418 crore to the telecoms regulator. Following the VoIP scam, GP top management had to go through a major reshuffle to retain its licence to operate in Bangladesh.
More allegations pending against GP
(1) According to a 2010 audit report initiated by the BTRC, GP has also not paid Tk 3,034 crore in taxes, and concealed certain information, including the number of its subscribers, to evade tax. The report was contested by the telecoms operator that led to litigation with the High Court. As per observation of the final verdict of the case, the BTRC will now appoint a new audit firm to reassess tax evasion by GP.
(2) According to a report of the Comptroller and Auditor General (CAG) submitted in parliament on September 8 last year, the government has incurred a loss of Tk 19.20 crore over three fiscal years by realising licence fees at a lower rate, instead of the fixed rate, while leasing out Bangladesh Railway (BR) lands to GP. Under the Land Management Policy 2006, licence fees were fixed at Tk 335 and Tk 223 per sft of land respectively in divisional towns, and in district and other town areas. However, BR realised the licence fee from GP at Tk 16, Tk 8 and Tk 6 per sft of railway land in Pakshi area in the western region in the fiscal years 2007–08, 2008–09 and 2009–10. According to the audit report, this caused huge revenue losses — to the tune of Tk 19,20,46,139. Again the GP authorities have filed a writ petition with the High Court, challenging the new enhanced rates of licence fees. The issue is now pending. GP ownership structure GP is a joint venture between Telenor (55.8%), the largest telecommunications service provider in Norway having mobile phone operations in 12 other countries, and Grameen Telecom Corporation (34.2%), a non-profit organisation of Bangladesh. The other 10 per cent shares belong to retail and institutional investors.