Bangladesh Telecommunication Regulatory Commission (BTRC) on Thursday shut the spectrum of country’s oldest mobile phone operator Citycell as it failed to pay dues.
“We have suspended the spectrum of CityCell as the mobile phone operator in line with the Telecommunication Act for failing to pay government dues after getting the court order,” State Minister for Post and Telecommunications Tarana Halim told the journalists at an emergency press briefing at BTRC office in the city yesterday.
She said now the CityCell mobile phone operator does not have any scope to return back for operation.
“We are going for the next steps in order to cancel its license,” Tarana Halim said.
BTRC Chairman Shahjahan Mahmood said CityCell must have to pay the Outstanding bills.
“There is no alternative but to pay the dues,” he said.
Earlier a team of BTRC officials accompanied by RAB and police went to the Citycell office in Mohakhali and cordoned off the head office of the mobile operator since 4:30pm yesterday. Later, they shut down the operation of Citycell.
They also entered the office at Pacific Centre and shut down some equipment used to provide voice, text and internet services to the customers, sources said.
Under government directive BTRC had decided to shutdown the operator’s service at 12 midnight of August 23 for failure to pay outstanding bills of Tk 477.51 crore.
On August 30, the Appellate Division of the Supreme Court granted mobile phone operator Citycell two months more time to payback all of its dues to Bangladesh Telecommunication Regulatory Commission (BTRC).
Citycell’s subscriber base shrunk to 700,000 in June, which is less than 1 percent of the total number of mobile-phone users.
After the biometric registration of SIM cards, the operator now has 100,000 to 150,000 customers only, BTRC.
On August 17, the BTRC issued a notice to Citycell asking to explain by 30 days why its licence for the operation would not be cancelled for its failure to pay dues.
In 1989, a licence to operate telecom services was issued to Bangladesh Telecom Ltd (BTL). Investments from Hong Kong-based Hutchison Telecommunication Ltd came the next year, which was then re-christened as Hutchison Bangladesh Telecom Ltd (HBTL).
In 1993, the then foreign minister M Morshed Khan-owned Pacific Motors, SingTel and Far East Telecom brought HBTL’s shares.
The company was renamed as Pacific Bangladesh Telecom Ltd, with the brand name of Citycell.
In 2012, when the regulators renewed its licence, the company was allowed to switch from CDMA to GSM for only a Tk 2 billion fee.
The company also qualified to bid for 3G services, but did not take part as it failed to come up with the $20 million earnest money.
But on August 22, the High Court extended the deadline, revising a government directive ordering its closure.
In line with court’s order, the country’s first mobile phone operator was scheduled to pay two-thirds of its total dues by September and rest of the money within another 30 days.
Earlier on July 31, BTRC served notice on Citycell to explain why it should not face legal action for not paying the dues and asked its subscribers to switch to other phones by August 16.
Later, the posts and telecommunications division (PTD) gave another seven days allowing the subscribers to manage alternative connections by August 23.
Citycell which had been offering service using Code division multiple accesses (CDMA) has now 1.50 lakh to 2 lakh subscribers after completion of ownership verification through biometric method.
According to BTRC, the Citycell didn’t pay the second and third installments of Tk 229 crore for 8.82 megahertz spectrum since spectrum renewal in 2012, which has breached the licensing terms.
Besides, it has owed annual spectrum fees (from the year 2013 to 2016) Tk 27.14 crore, revenue sharing (2014 to 2016) Tk 27.84 crore, social obligatory fund (2011 to 2016) Tk 8.92 crore, VAT Tk 39.92 crore and late fee of Tk 135 crore.
Pacific Bangladesh Telecom Limited under the brand name “Citycell” obtained license in 1989 where SingTel Asia Pacific Investment Limited has 45 per cent share while Far East Telecom Limited owns 23.57 per cent share and remaining 31.43 per cent share hold by Pacific Motor Limited.
