Page 115 - SAMENA Trends - October 2019

REGULATORY & POLICY UPDATES SAMENA TRENDS

BTRC Seeks Ministry Nod for Telcos Single Licensing System

The Bangladesh Telecommunication has to maintain one generic license for other compatible services as approved by
Regulatory Commission (BTRC) last operating as a mobile phone entity, two the commission will also be allowed under
week sought the approval from the Posts licenses for running 2G services, two for the planned system. Annual license fee for
and Telecommunication Ministry The 3G services and two other licenses for the single license in the draft guidelines
telecom regulator has sought government rendering 4G services. The single licensing has been proposed at Tk10 crore along
approval to scrap the current multiple will come into effect from the date of with 5.5% revenue sharing and 1%
licensing regime for mobile operators, license issuance and remain valid till contribution to social obligation fund. The
and introduce single licensing system February 18, 2033, subject to the renewal Association of Mobile Telecom Operators
to reduce operational complexity. of spectrum, says the draft guideline. Bangladesh welcomed the BTRC’s
The Bangladesh Telecommunication Under the proposed licensing guidelines, move. “We welcome BTRC’s initiative of
Regulatory Commission (BTRC) last week mobile phone operators will be allowed to combining the licensing guidelines and
sought the approval from the Posts and provide nine types of services including 2G, have submitted our observations earlier to
Telecommunication Ministry. “We have 3G, and 4G cellular mobile phone services. the regulator. But, we are not sure which
already sought ministry approval for single Besides, intra-operator domestic voice points are taken and which are not,” said
licensing system for mobile operators,” and video calls, inter-operator domestic Brig Gen SM Farhad (Retd), secretary
BTRC Chairman Jahirul Haque told Dhaka voice and video calls, international long- general of AMTOB. In June last year, BTRC
Tribune. He said introduction of single distance voice and video calls, international initiated the move for unified licensing for
licensing system would reduce hassle for roaming services, SMS/EMS/VMS/MMS, the mobile phone companies and prepared
all related parties. BTRC officials have said mobile internet, value-added services the draft guideline in August this year.
that currently a mobile phone operator (VAS) as per TVAS guidelines and any

Bangladesh Telcos Pay 3rd Highest Spectrum Fee in South and Southeast
Asia

Among South and Southeast Asian in August 2019, the Indian government as dividend from the South Asian telecom
countries, Bangladesh’s mobile phone termed out the spectrum payments to 16 operators. ‘The high prices that telcos in
operators have been paying the third years from the earlier agreed 10 years after this region pay during spectrum auctions
highest spectrum charge in last 10 years, considering the constraints on the Indian regularly make headlines, but the recurring
said a sector in-depth report of global telecom companies following a period dividends that they do pay to governments
rating agency Moody’s Investment of unprecedented intense competition.’ tend to get less attention,’ said Nidhi
Service. In Bangladesh, telecom operators On the other hand, telecom operators in Dhruv, Moody’s vice-president and senior
have paid 7 per cent of their aggregated Singapore, Malaysia and Indonesia make analyst. ‘Yet, our analysis finds that in
revenue for spectrum charge. Indian spectrum payments upfront, with small some countries dividends account for a
mobile phone operators have paid the annual licensing fees. As percentage of greater share of revenue,’ it said. While
highest (7.6 per cent) of their aggregated revenue, spectrum payments in Singapore spectrum payments in government-run
revenue as spectrum charge. The second and Malaysia were lower than in the other auctions were higher in absolute terms,
highest spectrum charge was paid by five countries covered in the analysis. on a relative basis dividends account for
the telecom operators in Thailand — 7.3 Moody’s analyzed financial data from a larger percentage of aggregate revenue
per cent of their revenue. However, the 2009 to 2018 of 20 telcos in seven South for telcos in several countries, he said.
spectrum payment terms are operator- and Southeast Asian countries — the ‘Government-owned incumbent telcos in
friendly, said the Moody’s report, adding leading three telcos by subscribers in Singapore, Malaysia and Indonesia pay
that the telecommunication companies Bangladesh, India, Indonesia, Malaysia, the highest dividends to their respective
in Thailand, India and Bangladesh pay Singapore and Thailand, and the leading governments, while privately owned telcos
between 25 per cent and 50 per cent of two telcos by subscribers in Pakistan. The in India, Thailand and Bangladesh pay
the total amount upfront, with the option report also revealed that the country where more in spectrum auctions,’ said Dhruv.
to pay the rest over three to 10 years. In telecom operators made high spectrum About the regulatory framework, the
the three countries, the governments charge, usually paid lower dividend to Mood’s report said that the regulations in
also typically allow a moratorium period their shareholders. In the countries, the Thailand, India, Bangladesh and Pakistan
before the annual spectrum payment shareholders other than the government were less predictable and often politicized.
instalments kick in, the report said. In received $52 billion as dividend during the Government-owned telcos pay high
exceptional circumstances, governments period. On the other hand, the government dividends but also benefit from regulatory
could provide more payment buffers, received $37 billion as spectrum charge, support, it said.
the report said, adding, ‘For instance, $24 billion as taxes and another $28 billion
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