Page 107 - SAMENA Trends - May 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

A SNAPSHOT OF REGULATORY ACTIVITIES

IN SAMENA REGION

Algeria

Algeria’s Authority for Regulation of Post & Electronic Commu- monitored provinces, while Mobilis – a subsidiary of state-owned
nications (Autorite de Regulation de la Poste et des Communi- Algerie Telecom – displayed the worst level of non-compliance
cations Electroniques, ARPCE) has issued warnings to all three in the QoS (voice, SMS, web browsing, FTP file transfer, video
of the country’s mobile operators, Mobilis, Djezzy and Ooredoo, streaming) categories. TeleGeography’s GlobalComms Database
for non-compliance with their 4G network coverage and quality says that Mobilis and Ooredoo Algeria each have a commercial
of service (QoS) obligations. The ARPCE issued the cellcos with 4G LTE network presence in all 48 Algerian wilayas, while Djezzy
the compliance notice based on the results of network monitoring currently offers LTE in 37 wilayas. All three cellcos launched 4G in
carried out in February-March this year in the provinces (wilayas) selected provinces assigned to them under license conditions in
of Blida, Djelfa, Tlemcen, Adrar and Constantine. Regarding quality October 2016 and were permitted to expand their LTE networks to
of network coverage criteria, VEON group-backed Djezzy scored additional wilayas in batches conditional on meeting QoS stan-
the lowest, complying with requirements in only one out of five dards. (May 5, 2020) Agence Ecofin

Bangladesh

Md. Jahurul Haque, the Chairman of the Bangladesh Telecom- eliminate double taxation. Mobile operators are currently paying
munication Regulatory Commission (BTRC), has revealed that Tk 200 tax per SIM, which they say is a major barrier to taking
GrameenPhone (GP) will pay the outstanding BDT10 billion telecom services to low-income people, according to an AMTOB
(USD115.4 million) claimed by the BTRC as unpaid dues in its statement issued. "If the SIM tax is waived, mobile phone coverage
2019 audit of the telecoms firm. The company paid the first in- will widen in the rural areas and it will bring greater benefit to the
stalment of BDT10 billion in February 2020, following the Supreme national economy," it said. The AMTOB called for bringing down
Court’s order to pay BDT20 billion to the regulator by 23 February; their corporate tax from 45 per cent to 30 per cent, a rate currently
a GP petition filed that month resulted in the Appellate Division applicable to other companies in Bangladesh. The corporate tax
upholding the Supreme Court’s order and giving the company un- rate for mobile phone operators is 22 per cent in India, 30 per cent
til 31 May to cover the remaining dues. (May 19, 2020) commsupdate.com in Pakistan and Nepal, 28 per cent in Sri Lanka and 20 per cent in
Afghanistan. The minimum threshold of the turnover tax creates
Mobile phone operators in their budget proposals for the upcom- a huge pressure on small carriers, which pay 2 per cent of their
ing fiscal year have called upon the government to streamline the revenue regardless of whether they incur a loss or make a profit,
telecom tax regime, saying the existing policies encumber them the AMTOB said, adding that three lossmaking operators are pay-
and stand in their way to contributing more to the economy. The ing this tax from the equity injected by shareholders. "Bringing
operators' contribution to the country's economy is 7 per cent down the turnover and corporate taxes is a prerequisite for the
now, but if proper tax reforms can be brought on board, the rate sustainability of the industry." The operators share 5.5 per cent of
will rise further, the Association of Mobile Telecom Operators of their gross revenue with the government, while contributing an-
Bangladesh (AMTOB) said in the proposals emailed to the Nation- other 1 per cent to a "social obligation fund" of the regulator, the
al Board of Revenue. "Since the sector is already going through AMTOB said, stressing the need for eliminating double taxation.
multiple issues regarding taxation, it's time to find solutions to It also urged the NBR to clarify the Value Added Tax and Supple-
them," said AMTOB President Mahtab Uddin Ahmed. As the whole mentary Duty Act, 2012, which they say does not provide specific
country is facing unprecedented challenges due to the COVID-19 guidelines with regards to VAT exemption for regulatory agen-
outbreak, the telecom sector has become the backbone of all cies. "The government agencies and regulators are not follow-
sorts of communication, business and entertainment, he add- ing the VAT regulations as they are demanding or collecting VAT
ed. In the proposals, the operators requested the government to without registration and are not issuing any VAT challan, which
abolish SIM tax, bring down the corporate tax, lift turnover tax and goes against the principle of the VAT law," the AMTOB said. It is

107 MAY 2020