BTRC moves to clip GP’s wings on competitors’ urging
The telecom regulator has once more moved to impose restrictions on Grameenphone consistent 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 called the marketplace leader to a gathering tomorrow to fix the original conditions.
In February this past year, the commission had declared Grameenphone as the SMP operator but didn't follow through with the associated restrictions.
"I've asked our respective divisions to go the issue forward because it was already delayed," Md Jahurul Haque, chairman of the commission, told The Daily Star yesterday.
The telecom watchdog came up with four restrictions twice however the conditions and the processes were challenged by the carrier.
The High Court on December 15 last year though cleared just how for the telecom regulator.
"Five months have passed since however the issues haven't moved forward, which is very unfortunate," Haque said.
The problem of the SMP surfaced after a recently available rift between Grameenphone and three other operators.
On April 12, Robi, Banglalink and Teletalk asked free of charge spectrum for three months to serve their customers through the pandemic to take care of 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 at least one 1 crore customers and monthly 30GB data to 25,000 doctors registered with the Directorate General of Health Services with a token Tk 1 monthly for the next half a year.
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 aid its customers and the government during the ongoing crisis.
"However, the SMP operator should be considered differently even in this situation as such a crisis always impacts small players and the less profitable companies hard and fast," the letter said.
The SMP operator should not be permitted 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 marketplace and the sustainability of smaller operators will be on the line."
The trio requested the regulator to re-impose the restriction on the SMP immediately.
"Anyone can write to the BTRC, but the regulator's duty is to go forward in line with the Act and the guidelines," 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 next 30 days.
Following the notice is issued, Grameenphone would get 15 days to clarify its position and the regulator will need its final decision based on the reply of the operator.
Grameenphone was called an SMP as its earnings share stood at a lot more than 50 % and customer share about 47 per cent.
In May this past year, four restrictions were imposed on the operator.
Once the restrictions become effective, the floor price of Grameenphone's call rate would rise by 5 paisa to Tk 0.50 one 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 one minute. Its average call rate is now Tk 0.73 a minute, according to its financial statement.
As per the second restriction, the marketplace 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 really wants to switch to some other network, they will have to stay with the brand new carrier for at least 3 months. But such subscribers can abandon Grameenphone after thirty days.
The ultimate 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 to keep Grameenphone's aggressive marketing in balance and would also be ideal for other players," Haque said.
