Trade
5 years ago

Grameenphone terms bandwidth cut inappropriate, illegal

The telecom operator seeks 'constructive arbitration' to resolve payment issues; BTRC remains firm on its stance

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Grameenphone has described the telecom regulator’s move to reduce its internet bandwidth capacity as 'inappropriate' and 'illegal'.

The largest telecom operator of the country also called for a 'constructive arbitration' to resolve payment issues, reports bdnews24.com.

The Bangladesh Telecommunication Regulatory Commission (BTRC), however, has remained firm on its stance, saying there is no scope to settle this issue through arbitration.

The BTRC will continue bandwidth restrictions until Grameenphone pays about Tk 125.8 billion in dues found in audit as mentioned in July 4 notices to international internet gateway or IIG operators, asking them to limit internet data allocated for the largest mobile telecom operator.

Robi, the second largest operator of the country in terms of subscriber base, also has over Tk 8.67 billion in unpaid bills, according to the BTRC.     

Grameenphone is suffering a 30 per cent cut in its bandwidth capacity and Robi 15 per cent in a reprisal for their failure to pay “dues” found in audit despite reminders, according to a BTRC official.

The Bangladesh business unit of Norway’s Telenor Group said in a statement on Sunday that it will drag the regulator to court over the internet bandwidth cut while it will be pursuing arbitration to resolve disputed audit claims.

“The BTRC directive adds burden to customers, local business community, investors and IIG operators,” it said.

“While the directive is not addressed to Grameenphone, BTRC has publicly stated that the bandwidth capacity will remain blocked until Grameenphone pays a disputed audit demand,” the telecom operator said.

The BTRC directive is designed to put pressure on the operator by negatively impacting customer experience on the operator’s network, according to Grameenphone.

The directive would have a negative consequence for local business communities and for the affected IIGs as they would lose potential revenue and business opportunities for a situation totally outside their control, the operator said.

Michael Foley, chief executive officer of Grameenphone, also addressed a press conference on Sunday.

 “The directive adds a burden to Bangladeshi people and businesses," Michael Foley said in his address at the press conference

"We request BTRC to withdraw the referenced directives and cooperate in resolving the disputed audit demand through a constructive arbitration process under the Arbitration Act 2001,” Michael Foley added.

He also said the regulator did not respond to the company’s notice sent on June 23 seeking arbitration.

The operator was reviewing the loss due to the bandwidth cut by BTRC, Acting Chief Marketing Officer Mohammad Sajjad Hasib said.

“But the subscribers will suffer the most,” he added. 

“We don’t want to drag the issue further,” Grameenphone Head of Regulatory Affairs Hossain Sadat said.

Asked how much Grameenphone would have to pay if a settlement is reached through arbitration, he said the amount would not be as much as demanded by the BTRC.

“But there is no scope to turn back once an arbitration starts,” he added. 

There is actually no scope of arbitration in line with BTRC law, but the path for discussion is open, according to BTRC Chairman Jahurul Haque.

“The operators must pay the dues,” he told reporters.

The BTRC chief, however, admitted there should have been a scope for arbitration in the law.

“We have written to the post and telecommunication ministry to amend the BTRC law to include the issue of arbitration," the BTRC chief said.

The amendment of the law would take a long time, he said in response to a reporter’s question.

Jahurul alleged Grameenphone wants to keep the issue hanging on the pretext of settlement through arbitration.

BTRC Commissioner Rezaul Quader has apologised as users may face inconvenience due to the bandwidth cut.

Asked how far the BTRC will go to collect the money, its chief said the law has provisions with cancellation of licence and other punitive measures.

"It depends on the government. We will discuss the next move later,” he said.

BTRC has also ordered the state-owned Bangladesh Telecommunications Company Limited to limit bandwidth capacity of Grameenphone and Robi.

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