Telcos’ parent firms unhappy over draft tower co guidelines

The parent companies of country’s three largest mobile phone operators have raised concern about the draft tower company guidelines saying that the clauses in the guidelines might affect the mobile operators.
They said mobile phone companies appreciate government’s effort to increase competition in the tower industry. But, ‘it should be done in a manner that ensures predictability and investors’ confidence,’ said a joint letter sent to BTRC chairman Shahjahan Mahmood in early this month by Grameenphone’s parent company Telenor, Robi’s Axiata Berhad and Banglaink’s parent company Vimplecom.
Telenor chief corporate affairs officer Wenche Agerup, Axiata Berhad chief corporate officer Idham Nawawi and Vimplecom chief regulatory and corporate officer Stephen Collins signed the letter.
The letter said that the mobile phone companies made their investment on rights that they would be able to build, operate and maintain network infrastructure.
Under the tower sharing draft guidelines the mobile phone companies will have to sell their towers to two tower business licensees.
‘We urge to preserve the rights of the mobile phone operators under their licences and align the forthcoming regulatory regime to successful examples from other markets,’ said the letter.
The letter also said that restricting the number of tower companies to two might limit competition and increase inefficiency.
‘New tower companies should co-exist with the existing mobile operators and the market should be allowed to compete on commercial basis,’ said the letter.
The mobile phone operators also said that limiting the share of foreign partner in a tower company to 49 per cent as per the draft guidelines is critical.
‘We are supportive of inclusion of local companies but foreign investors’ participation is critical in capital intensive business. We urge to remove the restriction on foreign investment,’ said the letter.
Bangladesh Telecommunication Regulatory Commission in last year prepared the draft guidelines to issue two tower company licences in a bid to separate tower business from mobile phone companies.
The draft said no entity having any relations with any mobile phone company or any WiMAX company can apply for such licence.
The guidelines also said foreign investors cannot hold more than 49 per cent share in a tower company.
Currently, Robi’s subsidiary edotco Bangladesh is the only tower company operating in the country with a no objection certificate.
In a bid to comply with the draft tower company guidelines, edotco in April applied to the BTRC to buy back its 51 per cent share from Robi.
Recently, Robi agreed to lower its stake in edocto Bangladesh to 20 per cent from the existing 51 per cent.
BTRC officials said that the share transfer plea made by Robi and edotco Bangladesh would be sent for the commission’s approval soon.

News Courtesy: www.newagebd.net