BSS
  31 Dec 2024, 18:51

Effective SMP guidelines execution stressed for new investments in telecom sector

DHAKA, Dec 31, 2024 (BSS) – Speakers at a roundtable discussion today underscored the need for effective implementation of Significant Market Power (SMP) guidelines to establish stability and fair competition in the country’s telecom industry.
 
They also highlighted that the SMP framework, if properly enforced, could save smaller operators and attract foreign direct investment (FDI) in the sector, said a press release.

Telecom and Technology Reporters’ Network, Bangladesh (TRNB) organized the roundtable where BTRC chairman Maj Gen Md Emdad Ul Bari (retd) joined as chief guest.

Executive Director and CEO of Foreign Chamber of Commerce and Industry TIM Nurul Kabir, Former Director of Competition Commission Md. Khaled Abu Naser, AMTOB Secretary General Lt Col Mohammad Zulfikar (Retd), Teletalk Managing Director Nurul Mabud Chowdhury, Head of Corporate Affairs of Banglalink Taimur Rahman, Company secretary at Banglalink Jahrat Adib Chowdhury, Head of Corporate Affairs of Robi Shahed Alam and Supreme Court lawyer Barrister Rashna Imam took part at the roundtable as discussants.

TIM Nurul Kabir said political advantage should not be given to anyone anymore rather he suggested to follow a unified licensing model.

He opined that BTRC should establish a Research and Development Wing to ensure the development of this sector alongside ensuring consistency in the regulations and policies, which he believed is very important to lure more investments.      

Mohammad Zulfikar said telecommunications is a very important sector and a competitive environment must be created to attract more investments.

“To solve various problems existing in the industry, the entire sector must be regulated under specific regulation,” he added.

Taimur Rahman stressed the need of implementing the existing regulations. “As advanced technologies like AI are emerging, we need to focus on how to further increase competition in the market,” he said.

Jahrat Adib Chowdhury said mobile operators are playing a very good role, contributing to reducing the digital divide. But, due to various challenges, operators are not being able to invest more, he said.

He added, “To improve this situation, it is necessary to implement sector-friendly laws and regulations, especially SMP guidelines, without giving advantages to any specific operator.”

Shahed Alam mentioned that competition is a fundamental driver of economic growth, but the fact is competition that does not really exist in the telecom sector.

He observed that “One of our operators is making huge profit every year. It is because the telecom regulations are somehow benefitting the large operators while hampering the growth of the smaller operators.” He sought intervention of the Competition Commission to make this sector more effective overcoming the barriers.   

Nurul Mabud Chowdhury noted that the situation of unfair competition is so severe that it is not even worth talking about.

He said that there is definitely unhealthy competition in the market and Teletalk is struggling to survive amidst this competition.

Stressing the need of establishing healthy competition in the telecommunications sector, Barrister Rashna Imam said “We need to talk about competition law to ensure consumer rights and retain existing investments.”

“There are 20 clauses in the SMP guidelines, but only three have been implemented, which has not played a significant role in promoting fair competition in the market,” he said.

She, however, noticed that BTRC is empowered by law, but in many cases that power is not being used effectively.

At the roundtable it was highlighted that the SMP operator still has more than 90 percent of profit market share, nearly 50 percent revenue market share also controls 50 percent of the shareable infrastructure which they are not eager to share.

Competition Commission’s former director Md. Khaled Abu Naser put emphasis on making the Commission more effective, saying the Competition Commission has been ineffective since 15 October but it has no liaison with the BTRC.

As a result, investment is in a precarious situation and an oligopoly (monopoly) market has been created, he added.

BTRC Chairman Maj Gen Md Emdad Ul Bari (retd) underscored the need for industry collaboration at the roundtable.

Regarding the SMP, he said some restrictions have already been put on the SMP player. “Now, all of you (industry players) have to work together as industry collaboration is a must.”

The chairman said telecom sector is an enabling sector, and the focus should be on enabling the subscribers.

He said the regulator would support business for the sake of services. “Let us all work together for national progress.”
 
TRNB President Samir Kumar Dey chaired the roundtable, while Organizing Secretary Al Amin Dewan made a keynote presentation.