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Telcom watchdog denied 'financial freedom'

BTRC still smarting from ministry rejection, hopes for govt nod

Md Hasan
The Ministry of Finance has rejected the proposal of 'financial autonomy' for Bangladesh Telecommunication Regulatory Commission (BTRC) saying such independence conflicts with the Constitution.
The BTRC had earlier proposed to amend the Telecommunication Act-2001 and sought to keep 5 percent of the total annual earnings for its expenditure.
The telecom watchdog also proposed that if it failed to spend the 5 percent earnings, it would keep the rest for its welfare and research.
The commission intends to amend the Act so that it can increase its salary structure and spend money as per its own plans.
Mentionable. BTRC's revenue shot up by three times in the last fiscal year from Tk 500 crore to Tk 1,500 crore thanks to operators' licence fees and administra-
tive fines.
Officials of the ministry say they rejected the BTRC proposal as no organisations in the country' require such financial freedom. Besides, a regulator's job is to monitor whether any unlawful activities are occurring in the industry, it should not work as a revenue collector, they add.
The finance ministry says there is no means of spending surplus money for development of any government entity, each of which should be limited within its budgetary allocation.
The ministry sources say some other organisations such as the central bank had also sought such independence long ago. "But due to constitutional obligations that did not happen,” comments a high official of the ministry.
The official adds the finance ministry rejected the proposal also because if one gets it, other regulators might seek such independence.
Besides financial autonomy, BTRC
also proposes to amend some other clauses ofthe Act including strengthening its judicial power.
The commission's final amendment proposal now awaits the cabinet nod. Sources say the proposal might be placed before any cabinet meeting for approval.
Telecom industry insiders fear if the amended Act empowers BTRC excess judiciary activities, it might appear as a 'revenue collector' rather than a regulator.
The telecom operators also criticise the BTRC proposal to build Bangladesh Universal Service Obligation Fund (BUSOF).
Usually, a regulator raises such fund taking money from telecom operators to execute mandatory' network rollout of telecorn services to the untapped areas, especially rural or geographically unfeasible areas, where operators are reluctant to go.
The telecom operators claim maximum mobile operators already own nationwide network coverage approved by the government.
"In Bangladeshi context, such a fund is not necessary," says an official of a telecom operator.
The proposed amendment also includes some provision through which BTRC could impose administrative fines to telecom operators from Tk 20 crore to maximum Tk 500 crore if they violate telecom rules and regulations.
Earlier, the maximum fine wasTk 10 lakh.
A recent inter-ministerial meeting observed that the proposed amount of fines for different offences looks "abnormally high".
The market insiders say operators should be punished for doing offences or violating laws. But telecom is a technology, which is interconnected with so many technical service providers.
"Therefore, it might be difficult to detect who is the real culprit," the official notes.
Citing an example, he asks: "If someone uses other operator's services for doing illegal VoIP, who will be charged?"
Talking to The Daily Star, BTRC Chairman Manzurul Alam said: "The proposal is waiting for getting the final nod from the government. It's difficult to say what would actually be changed."
"We just tried to upgrade the laws which don't match with the present market scenario." he added.