Robi, Banglalink, Teletalk call for fair competition
Robi, Banglalink, and Teletalk, as well as experts, have called for the effective implementation of the Significant Market Power (SMP) guidelines to ensure fair competition, stability, and continued investments.
Out of the 20 restrictions imposed on the SMP operator Grameenphone (GP) in 2019, the regulator has implemented only three to date, limiting the effectiveness of the guidelines in promoting fair competition, legal expert Barrister Rashna Imam said during a roundtable in the capital on Tuesday.
"BTRC is empowered by law, but in many cases, that power is not being used effectively," she said, stressing the need for healthy competition to save smaller operators and attract foreign direct investments.
Keep updated, follow The Business Standard's Google news channel
BTRC Chairman Maj Gen (retd) Emdad ul Bari expressed his willingness to implement reforms and highlighted the investment potential of the country's telecommunication sector at the roundtable titled "Telecommunications Sector: Stalled Investments and Unequal Competition," hosted by the Telecom Reporters Network Bangladesh.
Shahedul Alam, head of corporate and regulatory affairs at Robi Axiata, said GP gained access to railway fibre optic cables and penetrated the market when call rates were high. When other operators increased their investments, the call rate dropped significantly, as did the average revenue per user.
Despite significant investments, they are struggling amid insufficient competition, he said, adding that before the delayed implementation of the SMP guidelines, the largest telecom operator GP had years to gain significant market power, leaving smaller operators struggling to compete.
Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, said the government collects over Tk300 against each SIM card sale. Small operators cannot sustain subsidised SIM sales, which GP can afford through cross-subsidy as it earns nearly half of the industry revenue and 91% of net profits.
He also called for active equipment sharing among industry players to ensure efficient operations.
Nurul Mabud Chowdhury, managing director of Teletalk, said, "The situation of unfair competition is severe."
No Grameenphone representative was present at the event. However, its Chief Corporate Affairs Officer Tanveer Mohammad, in a late November interview with The Business Standard, said SMP and other regulatory restrictions "clipped its wings" and claimed GP is not engaged in predatory pricing. Instead, it leads the market despite premium pricing, he added.
"The entire telecom sector needs an overhaul to promote fair competition," said Md Khaled Abu Naser, a former director of the Competition Commission.
TIM Nurul Kabir, executive director of Foreign Chamber of Commerce and Industry, said if smaller operators get a level playing field, state-owned Teletalk could attract foreign investors.
BTRC Chairman Emdad ul Bari underscored the need for industry collaboration alongside the regulator's independence as it is bound to seek government approval before any regulatory decision.
"Some restrictions have already been put on the SMP player. Now, all of you have to work together to create more value for customers," he said, encouraging industry collaboration.
Telecom Reporters Network President Samir Kumar Dey moderated the session, where its Organising Secretary Al Amin Dewan presented a keynote on the competition scenario in the telecom sector.
