BTRC’s curious U-turn on Summit Comms
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waived on semantics.
“It is evident that many of the actions and omissions by the BTRC and the telecom ministry were driven by political influences, leaving the regulator often powerless, compelled to follow directives from both visible and obscure sources,” said Abu Nazam M Tanveer Hossain, a telecom expert.
In late March, Summit Communications sought the regulator’s approval to issue new shares valued at Tk 170.5 crore to companies based in Abu Dhabi and Mauritius and its current managing director.
A total of 14.20 crore new shares will be issued for Tk 12 each, according to the application.
A month later, it decided to send a letter to the posts and telecommunications ministry for a pre-approval of the transaction. The government approval came next month.
Then on June 12, the BTRC allowed the company to do the share transfer without any charges.
Before doing so, the telecom regulator sought the legal opinion of the law firm, which said that since Summit was merely issuing new shares, the 5.5 percent fee on the selling price was not applicable.
Summit also said the fee was not applicable as the company was raising its paid-up capital by issuing new shares.
However, the BTRC’s legal and licensing division wanted to slap the charges from the onset as Summit was transferring and selling shares in the guise of issuing new shares, The Daily Star has learnt from officials involved with the proceedings.
It is because after issuing the shares, Farid’s holdings in the company came down from 95 percent to 25 percent as he transferred the shares to new entities and Summit also submitted the sales agreement with these companies.
Of the new shares, about 9.44 crore shares worth Tk 113.38 crore were issued to the UAE-based company Global Energies -- enough to secure 49 percent stakes in Summit Communications.
One of the shareholders of Global Energies is Adeeba Aziz Khan, the middle daughterof Farid’s older brother Muhammad Aziz Khan, also the chairman of Summit Group.
She nominated Farid’s daughter Fadiah Khan and Sanadina Khan, the daughter of her uncle Jafer Ummeed Khan, as directors of Summit Communications, according to BTRC documents that cited the Global Energies Holdings’ board resolution.
Another 4.04 crore shares worth Tk 48.59 crore were given to Mauritius-based Sequoia Infra Tech -- enough to secure 21 percent stakes in Summit Communications. Doorvesh Kumar Jugurnauth, who also serves as a director of Sequoia Infra Tech, will represent it on the board of Summit Communications.
The remaining 71.04 lakh shares were issued to Summit Communications MD Md Arif Al Islam, whose stake remains unchanged at 5 percent.
“So, the charge is justified for Summit -- we earlier charged Kirtonkhola Tower Bangladesh for the same process,” said a top official of the commission on the condition of anonymity to speak candidly on the issue.
But, BTRC’s immediate past president Md Mohiuddin Ahmed pursued to get legal opinion in this regard, according to the BTRC officials involved in the process.
Mohiuddin, who resigned as BTRC president on August 14, could not be reached for a comment despite repeated attempts.
After the fall of the Sheikh Hasina government on August 5, the BTRC wrote back to the law firm and said its legal opinion is only advisory and not binding.
On August 14, the BTRC sent a letter to Summit Communications directing it to pay 5.5 percent of the selling price of the share.
In its response to The Daily Star, Summit Communications said it has already furnished Tk 10.24 crore to the regulator after the BTRC letter.
“On the surface, you would see Summit has become a giant providing quality services and operating under law and rules. It’s true,” said a top official of a company that operates in the telecommunication industry.
But the government has provided all kinds of facilities enabling Summit to grow, issue directives and set policies directly in its favour, he said.
“In this context, we commend the recent decision to impose a revenue share on share transfers retrospectively, as it reflects a newfound autonomy,” said telecom expert Abu Nazam M Tanveer Hossain.
However, this move suggests that similar instances may have occurred in the past.
To address these potential gaps, an independent investigation should be launched to enable the regulator to recover any lost revenue on behalf of the state, he added.
Summit Communications maintains it has done nothing wrong.
The company along with its partners are deploying a private submarine cable by the first quarter of 2026, it said.
“And the investment needed to establish this project is approximately $40 million per member. Over the past five years, Bangladesh has faced economic challenges, including a shortage of dollars and a critical need for such funds.”
The partnership with Global Energies and Sequoia Infra Tech was “strategically developed to boost the company’s paid-up capital and infuse foreign currency -- resources that local banks were unable to provide”.
“This collaboration is essential for completing the submarine cable project, which is of significant national importance and necessity,” it added.