BTRC warns Robi of manager nod cancellation over dues

The Bangladesh Telecommunication Regulatory Commission has warned mobile operator Robi that the commission’s approval for the company’s merger with Airtel could be cancelled over non-payment of Tk 109 crore in merger-related dues.

The commission on March 15 issued a show-cause notice to Robi asking the operator to deposit the dues or reply in 30 days why the commission would not take against it one of three steps including cancellation of the merger approval.

The two other steps include issuance of an enforcement order by the commission on Robi to pay the dues and taking necessary legal steps against the company.

The BTRC notice mentioned that Robi had so far paid the commission Tk 318 crore out of the total Tk 427.35 crore (including VAT) laid out by the BTRC as a condition for merger with another mobile operator Airtel.

Airtel, which was then the fourth largest operator in the country, merged with Robi (then third largest operator) in November last year, creating second largest operator Robi as the commission gave approval for merger on fulfilment of several terms and conditions including payment of the merger fees and VAT.

The BTRC notice said that Robi had ‘violated’ and continued to violate telecommunication act and a number of licensing conditions by not paying the dues.

Earlier in February 12, the regulator accused Robi of non-compliance of a number of conditions including non-payment of the dues.

Robi in reply in mid-February, however, had denied to have committed any wrongdoing saying that the issue of VAT had remained pending with the Appellate Division.

The latest BTRC letter also rejected the bank guarantee submission proposal of Robi against the dues stating that there was no such provision for submitting bank guarantee among the merger conditions.

Contacted on Monday, Robi, however, declined to make any comment on the issue.