Operators eye bank loans for 4G service

Mobile phone operators are eyeing loans from local banks to pay for licenses and spectrum for Fourth Generation (4G) service, depriving the country of  a sizable amount of foreign investment in the telecom sector. The telcos have mentioned their plans in the applications submitted to Bangladesh Telecommu-nication Regulatory Commission (BTRC) for 4G licenses and spectrum auction.

According to sources, the operators have presented irresponsible details in their applications. So far, there has been no definitive information, including documents related to total investment, network expansion, service related plans, original company's approval letter, number of local and foreign workers.

None of the operators has submitted documents to authenticate their claims on the total investment they have made so far in Bangladesh although the 4G guideline instructed the applicants to do so. BTRC officials said the operators did no pay much importance in processing the applications. They  have just maintained formalities for getting 4G license and taking part in the spectrum auction.

"No new operators were interested in the 4G service. Local or foreign entrepreneur did not come forward to do business here in Bangladesh. For this reason, the present service provider mobile phone operators have realized that there is no other way to the commission without declaring them eligible for the network service," said experts. Therefore, BTRC on Tuesday decided to declare all the five applicants eligible for the 4G licenses despite various inconsistencies in the  #applications, they added.

A committee of the commission has already submitted their final evaluation report to the BTRC. A senior BTRC official said, "Even after final submission of the application, the commission had to asked operators to provide relevant documents again during the scrutiny of the applications. However, a meeting of the commission decided that all the operators should be declared eligible though they provided insufficient information."

He said the operators also did not clearly present their 4G rollout plans to the commission as they mentioned that they would take bank loans to finance their 4G projects. He said, "The commission has provided such exemption as there's no new operator interested in the 4G service."

In the first policy passed by the government, it was clearly mentioned that foreign companies will have to use foreign currency in the share ratio to invest in 4G. However, in the revised policy this section was omitted in response to operators' claims.

Sources say Grameenphone will invest from its current income and bank loans. The other two big operators are planning to collect money from local banks.  Another official concerned with the investigation said the operators were asked to bring a letter of acceptance of investment from the parent company. But none gave it. Rather, they have submitted the letter of the local board. They have also asked for network expansions and service plans, but none has given it correctly.

The government is promised to launch 4G service within a short time and operators have taken it as an opportunity. As a result, the operators are being able to take the issues in favor of their demand, said experts.  However, BTRC will declare its spectrum auction procedure on January 29 and a mock auction will take place on February 12. All operators except Teletalk will take part in the spectrum auction scheduled for February 13. The very next day the commission will declare the name of the bid winners.

-Fakhruddin Mehedi, AA