BTRC revenue collections plunge by 64pc in FY15

The revenue collections of the telecom regulator declined by 64 per cent in the just concluded fiscal year 2014-2015 compared with the previous FY as it failed to meet the spectrum auction deadline and reduced the international call termination charges.
Bangladesh Telecommunication Regulatory Commission officials said the regulator managed to collect Tk 3,600 crore by the end of June whereas it collected a record Tk 10,016 crore in the previous fiscal year because of successful 3G auction.
The initial target of BTRC’s revenue collection was set at Tk 13,829 crore in 2014-15 fiscal year but the target was lowered to Tk 6,902 crore in the revised budget as the scheduled spectrum auction did not take place.
The BTRC mainly collects revenues from revenue sharing from the operators, annual spectrum fees and annual licence fees along with other fees, said the officials.
‘Compared with last year, the revenue was lower but it is not at all worrying,’ a senior BTRC official told New Age.
‘The revenue target estimation was based on a plan to auction some spectrum within this fiscal year which we could not manage to do. But the spectrum does not perish and when we sell it we will get the money,’ he said.
‘So, this decline in revenue is not necessarily a loss,’ he said.
He also said another Tk 400 crore would be adjusted with the already collected amount.
The BTRC initially set an auction date on April 30 but rescheduled the auction date twice to May 20 and May 27 as the mobile operators did not apply in the stipulated time, demanding resolution of the issue of Tk 3,100 crore SIM replacement tax.
Currently, the BTRC is awaiting government approval to amendments to the auction guideline for 1800 and 2100 band spectrum auction which will allow other operators to take part in the auction along with mobile phone operators.
Another BTRC official, however, said the reduced international incoming call charge and government revenue share cut also affected the BTRC revenue in the FY15.
‘There is no estimation of the exact amount of loss because of this, but the amount will not be negligible,’ he said.
He said the call charges were lowered to 1.5 cents from 3 cents and the government revenue share was cut to 40 per cent from previous 51.75 per cent. ‘Although the call volume increased but it does not compensate the rate cuts,’ he said.
According to an initial projection of BTRC in July 2013, through the rate cut and lower revenue sharing the government is to lose Tk 1,074 crore annually.
The call charges and revenue sharing rates were lowered mainly to give benefits to the 25 IGWs which got licences in 2012 because of their strong connections with the ruling Awami League, said the officials.
Data shows that the BTRC collected Tk 5,404 crore from the market in the FY13. It also collected Tk 6,957 crore in the FY12, Tk 3,047 crore in the FY11, Tk 2,370 crore in the FY10 and Tk 3,195 crore in the FY09.

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