New licensing policy may increase capital flight by foreign-owned companies

Domestic investors in the telecommunications sector have expressed concern that the newly adopted licensing policy will create major opportunities for foreign-owned companies to siphon funds abroad.

After reviewing the new policy, they warned that if implemented, it would wipe out domestic entrepreneurs’ companies in the telecommunications and information technology sectors, while consolidating control under three mobile operators. As a result, prices of mobile internet and other services for consumers would also rise.

The observation was made at a views-exchange meeting organised by entrepreneurs of ISP, IIG, IGW, and ICX companies in the domestic sector at a convention hall in the capital on Sunday (September 14).

At the meeting, organised by the Telecom and Technology Reporters’ Network Bangladesh (TRNB), three separate papers were presented on behalf of the associations of internet service providers (ISPAB), ICX, IGW, and IIG operators.

ISPAB President Aminul Hakim said the policy is considered risky for domestic entrepreneurs in the telecom sector. Observations on the matter have already been conveyed to the relevant authorities of the government, he added. “We will also take the issue to the Chief Adviser soon. If no solution is reached, legal measures will be pursued to protect domestic entrepreneurs,” he said.

Asif Rabbani, President of the IGW Operators Forum, said, “It is very unfortunate that domestic entrepreneurs are being labelled as middlemen from responsible quarters. In reality, IGW operators shared 40 to 50 percent of their revenues with the government. Under strict monitoring by BTRC, Bangladesh Bank, and other state agencies, domestic entrepreneurs brought in international calls and accounted for every penny. But the new licensing policy gives mobile operators exclusive opportunities across all levels of the telecom sector. This will increase the risk of foreign-owned companies siphoning funds abroad, as their accountability and regulatory oversight will diminish through this.”

Mushfiq Manzur, Chief Operating Officer of the IGW Operators Forum, said the entire licensing policy process was opaque and questionable. “Initially, the expert panel formed included a Pakistani citizen, who had previously held a senior position at Grameenphone. Other panel members had also been associated with mobile operators in one way or another. Later, when BTRC organised a workshop after two to three months with a draft proposal, the names and identities of the panel experts were disclosed only after repeated queries. Even then, the suggestions provided by domestic entrepreneurs were not accepted. The entire policymaking process was closely influenced by mobile operators, and the resulting policy ultimately protected only their interests—pushing domestic entrepreneurs, who built their businesses painstakingly, into an existential crisis,” he said.

Former TRNB President and Editor of Views Bangladesh, Rased Mehedi, said the policy has not only exacerbated the question of survival for domestic entrepreneurs but has already caused a steep rise in mobile internet prices. “Previously, a 30-day package cost Tk 300, but now no package is available below Tk 500. Under the guise of numerous packages, opportunities for consumer deception have been created. If monopolistic control is ensured through the policy, there remains a grave risk of telecom and internet service prices rising abnormally again, as was the case prior to 2008,” he remarked.

The meeting was presided over by TRNB President Samir Kumar Dey, with a welcome speech delivered by TRNB General Secretary Masuduzzaman Robin.

Other speakers included AIoB President Brigadier General (Retd.) Mustafizur Rahman, IIGB General Secretary Ahmed Junaed, ISPAB Senior Vice-President Saiful Islam Siddique, General Secretary Nazmul Karim Bhuiyan, and AIoB Executive Member Ahmed Ur Rahman Romel.