BTRC imposes two limitations on GP
The telecom regulator has imposed two new limitations on Grameenphone. The approach comes 16 months after it declared the country's leading mobile phone operator a substantial market power (SMP).
Based on the restrictions, Grameenphone must secure prior acceptance via the Bangladesh Telecommunication Regulatory Commission (BTRC) before rolling out any packages or offers.
The operator may also have to have most of its existing packages and will be offering validated by August 31. However, for new gives and packages, the directive will become effective on July 1.
The carrier would not be able to change or amend the conditions of approved packages or offers without consent from the commission.
The regulator in addition has managed to get easier for a members to leave Grameenphone beneath the mobile phone number portability (MNP) facility.
Presently, if a user really wants to switch to some other network, they have to stay with the brand new carrier for at least 90 days. But subscribers can now abandon Grameenphone after only 60 days.
The operator received the letter from the BTRC yesterday.
In February last year, the commission declared Grameenphone an SMP operator but did not continue with the associated restrictions.
The telecom watchdog came up with four restrictions twice but Grameenphone challenged the conditions and processes at the High Court.
However, on December 15 last year, the High Court cleared the way for the telecom regulator.
The prior directive from the BTRC had contained four tough conditions but considering the ongoing Covid-19 pandemic, the regulator has chosen to go soft.
Among the four restrictions was first to repair the minimum floor selling price on call charge in Grameenphone at Tk 0.50 each and every minute, which is currently Tk 0.45 for all operators.
The BTRC had also made a decision to raise the interconnection charge to Tk 0.15 each and every minute for Grameenphone. The fee happens to be Tk 0.10.
Market insiders say the two restrictions which have not been implemented yet would boost the cost of services for end-users.
However the commission is unwilling to improve the cost of telecom products and services amid the coronavirus pandemic, said a high BTRC official.
"Truly, amid the Covid-19 outbreak, we've not any intention to impose restrictions as all operators are serving customers at reduced charges following our request," said Md Jahurul Haque, chairman of the commission.
"It has been an extended pending issue and we were getting pressure on that matter from other parties."
Perhaps this is actually the first SMP process in Bangladesh and that's the reason the BTRC moved gradually to observe the problem, he said.
The SMP issue surfaced following the recent emergence of a rift between Grameenphone and the three other operators.
On April 12, Robi, Banglalink and Teletalk asked for free spectrum for 90 days to serve their buyers during the pandemic to handle the surge in info use. However the market innovator opposed the no cost allocation.
The rift widened after Grameenphone in the first week of May well offered 10 crore no cost minutes to at least one 1 crore customers and monthly 30GB data to 25,000 doctors registered with the Directorate Standard of Health Providers with a token Tk 1 monthly for the next six months.
"The Bangladesh cellular telecom industry is competitive and Grameenphone has grown through timely purchase, innovations and operational efficiency," said Hossain Sadat, director for public and regulatory affairs at Grameenphone.
"The latest impositions deviate from the targets of the SMP regulations and so are not based on proof market failing," he stated in a statement.
"These asymmetric impositions happen to be anti-competitive in character, which we believe are not in the fascination of consumers and can have adverse effect on the countrywide exchequer and the expense climate," Sadat added.
Grameenphone holds 45.64 per cent share of the subscriber base and more than 50 per cent earnings share.
In line with the SMP guideline, the regulator may declare a carrier when an SMP operator in the event it controls a lot more than 40 % share in virtually any parameter.
The quantity of active subscribers at Grameenphone stood at 7.65 crore, earning the carrier Tk 14,366 crore by the finish of 2019. It logged an archive Tk 3,452 crore profit last year, the best to date.
The telecom regulator has been focusing on the SMP issue since 2011. The BTRC produced a committee to devise an activity to implement it.
The committee, in a guideline, recommended increasing the SMP operator's tariffs on both voice calls and info and imposing quality control parameters.
The regulation states that if an operator is available to possess wage anti-industry activities, the BTRC can part of to break the monopoly or oligopoly.
Any competitor can file a complaint against the SMP and the regulator will need to look into it.
The restrictions on Grameenphone are anticipated to provide Robi a leg up on the market while Banglalink and, to a particular extent, Teletalk may possibly also benefit.
Robi controls 29.98 % of the full total subscriber base accompanied by Banglalink at 21.41 % and Teletalk at 2.97 %.
Declaring the dominant operator while an SMP is a prevalent practice in the designed world and such restrictions are also set up in India, Thailand, Singapore and Malaysia.
