BTRC moves to clip GP’s wings on competitors’ urging

The telecom regulator has once again moved to impose restrictions on Grameenphone in line with its earlier declaration of significant market power (SMP) following complaints from the other operators that found the Telenor subsidiary's recent offers and packages predatory.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has now called the market leader to a meeting tomorrow to fix the initial conditions.

In February last year, the commission had declared Grameenphone as the SMP operator but did not follow through with the associated restrictions.

"I have asked our respective divisions to move the issue forward since it has already been delayed," Md Jahurul Haque, chairman of the commission, told The Daily Star yesterday.

The telecom watchdog came up with four restrictions twice but the conditions and the processes were challenged by the carrier.

The High Court on December 15 last year though cleared the way for the telecom regulator.

"Five months have passed since but the issues haven't moved forward, which is very unfortunate," Haque said.

The issue of the SMP surfaced after a recent rift between Grameenphone and three other operators.

On April 12, Robi, Banglalink and Teletalk asked for free spectrum for three months to serve their customers during the pandemic to handle the surge in data use. But the market leader opposed the free allocation.

The rift widened after Grameenphone on Friday offered 10 crore free minutes to 1 crore customers and monthly 30GB data to 25,000 doctors registered with the Directorate General of Health Services with a token Tk 1 per month for the next six months.

In a joint letter to the BTRC on May 11, the trio sought the regulator's attention to the SMP issue. "Our sustainability is under question," they said.

Every carrier is trying to support its customers and the government during the ongoing crisis.

"However, the SMP operator should be considered differently even during this situation as such a crisis always impacts the smaller players and the less profitable companies hard and fast," the letter said.

The SMP operator should not be allowed to provide product and services that exhibit predatory pricing and cross-subsidising.

"Any special commercial preference to the SMP operator that contradicts the present regulations and directive such as providing free voice call minutes to its customers will imbalance the market and the sustainability of smaller operators will be at stake."

The trio requested the regulator to re-impose the restriction on the SMP as soon as possible.

"Anyone can write to the BTRC, but the regulator's duty is to move forward in line with the Act and the rules," Haque said.

In December, the HC directed the BTRC to amend the wording of the conditions and asked the regulator to issue a notice to the carrier within the next 30 days.

After the notice is issued, Grameenphone would get 15 days to clarify its position and the regulator will take its final decision based on the reply of the operator.

Grameenphone was called an SMP as its revenue share stood at more than 50 per cent and customer share about 47 per cent.

In May last year, four restrictions were imposed on the operator.

Once the restrictions become effective, the floor price of Grameenphone's call rate would go up by 5 paisa to Tk 0.50 a minute.

Currently, the minimum call rate is Tk 0.45 for all carriers, and after adding the value-added tax and other tariffs, the minimum rate goes up to Tk 0.54 to any operator.

But for Grameenphone, it will be Tk 0.61 a minute. Its average call rate is now Tk 0.73 a minute, according to its financial statement.

As per the second restriction, the market leader will have to pay 5 paisa more to other operators for the calls its subscribers make to other networks.

The third restriction has made it easier for a user to leave Grameenphone under the mobile number portability facility.

Currently, if a subscriber wants to switch to another network, they will have to stay with the new carrier for at least 90 days. But such subscribers can abandon Grameenphone after 30 days.

The final restriction stipulates prior approval from the telecom regulator before Grameenphone rolls out any package. Currently, operators can roll out packages just by informing the telecom regulator.

"The restrictions would help keep Grameenphone's aggressive marketing in check and would also be helpful for other players," Haque said.