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2G Licence

Dispute over

Muhith says renewal within next month

Staff Correspondent
Finance Minister AMA Muhith yesterday said both the government and mobile operators will withdraw their cases regarding the disputes over 2G mobile licence renewal payment to resolve the problem in the sector.
Talking to journalists after an inter-ministerial meeting at his ministry, Muhith said the licence renewal dispute would be solved within August, as all the parties concerned including the telecom regulator, tax administrator and mobile companies agreed to withdraw their cases.
He said the operators informed him that they could not make fresh investments as licences were not in their hand.
Licences of four mobile companies including Grameenphone, Banglalink, Robi and Citycell were supposed to be renewed for the next 15 years on April 10 last year. But that did not happen due to tax and payment disputes between the operators, Bangladesh Telecommunication Regulatory Commission (BTRC) FROM PAGE 20
and the National Board ol Revenue (NBR).
The companies are now operating by taking an executive order from the BTRC.
The operators had filed a number of cases with court, which are yet to be disposed of.
The finance minister said it was decided at yesterday's meeting dial mobile operators will have to pay a total of 115 percent of their licence renewal and spectrum charge to the BTRC, of which 15 percent will be given to the NBR. Later, the NBR will adjust the amount (15 percent) with the operators along with other VAT payment.
About the Market Competition Factor (imposed on the operators when Grameenphone, Banglalink and Robi purchased some spectrum in 1,800 Megahertz band), Muhith said, MCF will not be imposed on spectrum allocated in 2008.
The operators also went to court against the regulator when it asked for extra amount of money for the spectrum that was sold in 2008 for 18 years.
BTRC and NBR appealed to the higher courts against judgement in operators' cases.
However, the four mobile operators have already deposited their payment to the regulator, except 15 percent ol the renewal and spectrum charge.
BTRC Chairman Zia Ahmed told this correspondent, "If the operators pay all their outstanding amount of money, there is no problem to give them the licences.”
He said the operators will have to pay their second instalment of renewal fees on August 1, which is 29 percent of the total amount. Earlier, they had deposited 49 percent of the amount.
The four operators will have to pay a total of Tk 8,000 crore for their licence renewal and spectrum fee, and another 15 percent as VAT. BTRC will deposit the VAT to the NBR, Zia said.
Mahmud Hossain, chief corporate officer of Grameenphone, who was also present at the meeting, said, “Operators are happy with the outcome of the meeting. It was a productive and fruitful meeting.”
“We will withdraw cases if we need not to pay 15 percent VAT,” he said when contacted.