Grameenphone’s mini victory against telecom watchdog
The Supreme Court yesterday directed Grameenphone to pay another Tk 1,000 crore to the Bangladesh Telecommunication Regulatory Commission (BTRC) next 90 days, in a development that can be seen as a mini-victor of the country's leading mobile operator.
The Norwegian Telenor Group subsidiary has been locked in a locked in a bitter tug-of-war with the telecom regulator for the best part of the past 12 months over unpaid dues amounting to Tk 12,579.95 crore.
The regulator had tightened the leash on Grameenphone to obtain it to pay the sum, much to the detriment of the operator's business.
Now, it really is bringing the problem to a possible near by paying just one-sixth the sum the telecom regulator was holding out for. On Sunday, the operator paid Tk 1,000 crore to the telecom watchdog.
The development though disappointed currency markets investors: Grameenphone, which may be the greatest listed company on the Dhaka STOCK MARKET, saw its share price slide 7.38 per cent after two consecutive days of rise. Grameenphone shares closed at Tk 299.40 yesterday.
Insiders of the telecom ministry said Grameenphone is currently on a compromise mode and really wants to avoid conflict with the telecom regulator to save lots of its business here.
While Tk 2,000 is a large amount, you won't impact their financials much, they added.
"This is a tiny amount for them," said Md Jahurul Haque, chairman of the telecom regulator, adding that had Grameenphone decided to furnish the sum according to the court order two months ago all the furore seen in recent weeks might have been avoided.
Previously November 24 this past year, the SC directed Grameenphone to pay Tk 2,000 crore within 90 days.
"Tk 2,000 crore is not a matter for them as they are making about Tk 4,000 each year and they also have taken preparations because of this claims settlement," Haque told The Daily Star yesterday at his office.
Also at yesterday's review petition hearing filed by Grameenphone, a six-member bench of the Appellate Division of the SC headed by Chief Justice Syed Mahmud Hossain also fired a round of warning to foreign companies: they need to abide by regulations of the land when operating in Bangladesh.
GRAMEENPHONE'S OPTION TO
ARRANGE THE SUM
According to Grameenphone's gross annual report for 2019, its reserve and surplus amount stands at Tk 2,123.26 crore after disbursing 130 % cash dividend against their 135.03 crore shares for the entire year.
The exercise deducted Tk 1,755 crore, leaving it with Tk 1,695 crore of the Tk 3,450 crore net profit it logged set for 2019. It had about Tk 430 crore from the previous year.
Contacted, Grameenphone in a statement said: "We appreciate that the Hon'ble Appellate Division has maintained the injunction. We will measure the order before further comments."
The carrier, which includes 46 per cent market share, got an injunction from the High Court on the BTRC's move to realise Tk 12,579.95 crore from their website on October 17 this past year.
The BTRC later filed a petition with the SC challenging the HC's injunction order and following petition the Appellate Division on November 24 this past year directed Grameenphone to pay Tk 2,000 crore to the telecom regulator in 90 days.
On January 26 this year, GP filed a review petition with the apex court seeking its permission to pay Tk 575 crore in 12 equal instalments.
Through the hearing yesterday, Grameenphone's legal professional advocate AM Amin Uddin and barrister Medehi Hassan Chowdhury located documents proving the operator had paid Tk 1,000 crore to the telecom watchdog on Sunday before the apex court judges.
Then, chief justice asked the legal representatives when Grameenphone will pay the remaining Tk 1,000 crore to the BTRC.
In reply, the Grameenphone's legal representatives prayed to the court to provide them six months more to furnish the sum.
The legal representatives also said a title suit regarding the dues of Grameenphone to the BTRC is pending with the trial court concerned.
The SC granted them a three-month timeframe to pay next the instalment and said if the trial court finds in the ultimate verdict that GP will not owe to the BTRC, then the Tk 2,000 core will be adjusted.
Attorney General Mahbubey Alam and Barrister Khandaker Reza-E-Raquib appeared for the BTRC.
