BTRC set to apply SMP rules to curb monopoly in telecom sector

Grameenphone's (GP) dominance as the overwhelming market leader is set to come under increased regulatory scrutiny, as BTRC has finally come up with Significant Market Power (SMP) Regulations for the country's telecom sector.

The new regulations will be aimed at thwarting any act of monopoly or oligopoly in the country's telecom market, said the officials concerned.

"As per the new regulations, any mobile operator will be considered as a SMP operator, if it has a market share of 40 percent or more," said a high official of Bangladesh Telecommunication Regulatory Commission (BTRC).

According to him, GP, with a market share of 45.3 percent as per BTRC data, is on course to be designated as a SMP operator.

"Special tariff and tax system will be applicable for that mobile operator with a view to enhance the capabilities of other entities in the market to establish a level-playing field," he also said.

BTRC issued a gazette notification regarding the regulations last week.

"We will formally take a decision in this regard during the next commission meeting," he added.

SMP is a regulatory process through which pure competitive condition is maintained in the market. Following its implementation, the large operators do not get chance for doing monopoly business.

On the other hand, the new and small operators get opportunities for providing services to their customers in a friendly atmosphere.

Insiders often observed that Bangladesh's telecom market, which has long been dominated by one single operator - GP - needs SMP regulations to ensure a level-playing field for other operators.

In this context, the telecom regulator prepared a SMP guideline in 2011. However, the process took seven more years due to incessant bureaucratic entanglement between BTRC and Ministry of Posts and Telecommunications.

"The new regulations will help us to ensure healthy competition in the country's telecom market," said Acting Chairman of BTRC Md. Jahurul Haque.

Under the new regulations, the telecom regulator can impose penalty on any operator, if it is found engaged in activities that may hamper competition in the market.

At the same time, the operator has to take permission from BTRC, if any of its particular initiatives has the potentials of reducing competition in the market.

Talking to the FE, top mobile operators of the country, however, have expressed mixed reactions over the new regulations.

GP was apparently concerned about the possible implications of the new provisions.

"We are concerned that the government appears to deviate from the international best practices as indicated in some of the reporting," said a statement from GP.

"We, therefore, urge the government to conduct industry consultation before finalising such complex regulations with far-reaching implications for the entire ecosystem," it added.

Some other operators, however, said such SMP regulations are quite necessary for the country's telecom market.

"Such regulations were long due," said a high official of a top telecom regulator, who prefers not to be named.

"This is unfortunate that it has taken seven years for the regulator to come up with this."

"There would not have been such imbalance in the telecom market, if the regulations were applied years ago," he added.

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