Pacific Bangladesh Telecom, the first mobile phone operator in the country, seeks to relaunch Citycell.

The company has recently applied to the Bangladesh Telecommunication Regulatory Commission (BTRC) to reclaim its licence and spectrum.

In 2016, the BTRC shut down Citycell’s operations on the grounds of a decline in subscribers and failure to pay outstanding dues. Later, in October 2023, the regulatory body officially cancelled Citycell’s licence and spectrum. At the time of its closure, Citycell, the country’s only CDMA (Code Division Multiple Access) technology operator, had around 15,000 subscribers.

However, in its recent review application letter, Pacific Bangladesh Telecom stated that BTRC’s order to cancel Citycell’s licence was illegal.

Pacific Bangladesh Telecom in the application, signed by its head of regulatory and corporate affairs Nishat Ali Khan, argued that Citycell was excluded from various technological upgrades, including spectrum allocation, due to political decisions by the then government.

Despite paying all fees, new claims of outstanding dues were raised unjustifiably, it said. Ultimately, the operation was shut down citing a decrease in subscribers, even though Citycell had an annual turnover of over Tk200 crore before the closure, said the company.

Nishat told the news reporter that they plan to return to court, deeming BTRC’s cancellation of Citycell’s licence illegal while the case concerning outstanding dues is still ongoing in court.

“We have applied to the BTRC to get the licence back, and we will also appeal to the court in the future,” he said.

In the letter, Pacific Bangladesh Telecom stated that at the time of Citycell’s shutdown, the company held 8.82 GB of spectrum and had 850 towers. The closure left 1,000 employees unemployed overnight.

It also claimed to have fully paid all types of fees, including VAT and taxes. As a result of the shutdown, the company said it incurred debts amounting to Tk4,000 crore. If Citycell had remained operational, it could have generated at least Tk2,000 crore in revenue during the period until now.

The letter mentioned that BTRC’s claim of Tk218 crore in outstanding dues, which led to the cancellation of Citycell’s licence, was incorrect. The company argued that although the BTRC demanded the amount for 10 GB of spectrum, Citycell was actually allocated 8.5 GB of spectrum. Therefore, the claim lacked justification, it said, adding that the matter of outstanding dues was already being contested in court.

When asked why it did not approach the court at the time against BTRC’s decision, Nishat said, “The cancellation of Citycell’s licence was a political decision by the government. The court would not have ruled against the government’s decision. That’s why we did not file a petition in court back then.”

When asked whether it would be possible to relaunch Citycell with its significant debt if BTRC reinstated the licence, Nishat responded that despite the shutdown, the company has not defaulted on any bank loans.

Citycell eyes transition to GSM technology

He further said that if the licence is restored, the owners are prepared to transition Citycell from CDMA to GSM technology to resume operations.

Asked by the news reporter, Aminul Haque, acting chairman of the BTRC, declined to comment on the receipt of the letter or the matter of returning the licence.

On 9 September 2022, all spectrum allocated to Citycell and the Radio Communication Equipment Licence was cancelled on 7 August of the same year. Subsequently, on 15 September 2023, the BTRC cancelled Citycell’s 2G service licence.

According to officials concerned, during the tenure of President Hussain Muhammad Ershad, Citycell was granted a licence in 1989. The service was launched jointly by Hong Kong-based Hutchison and Bangladesh Telecom Limited. They used analogue mobile technology. The mobile service was highly expensive and not accessible to the general public.

When the BNP came to power, in 1993, the domestic industrial group Pacific Motors and Far East Telecom acquired a 55% stake in Citycell. Of the stake, Pacific Motors held 37.95% and Far East Telecom held 17.51%. The remaining 44.54% of the shares were owned by Singtel, a Singapore-based telecommunications provider. The head of Pacific Motors is former foreign minister and BNP leader M Morshed Khan.

Before Grameenphone acquired its licence in November 1996, Citycell was the sole mobile operator in the country.

Bangladesh has taken a significant step towards enhancing its digital financial services as NAGAD Limited and Huawei Technologies signed a landmark agreement. The deal aims to revolutionize the country’s digital transaction experience by integrating world-class smart transaction technologies through NAGAD’s digital banking and mobile financial services.

The agreement, signed on Tuesday (July 9) at Beijing’s Shangri-La Hotel in the presence of Prime Minister Sheikh Hasina, marks a pivotal moment for Bangladesh’s digital economy. It underscores the commitment to bolstering digital banking capabilities, ensuring that customers of NAGAD can enjoy seamless international transactions anytime, anywhere.

Representing NAGAD, the agreement was endorsed by its founder and CEO, Tanvir A. Mishuk. Among the dignitaries present were Finance Minister Abul Hassan Mahmood Ali, Foreign Minister Dr. A.K. Abdul Momen, Adviser to the Prime Minister on Industry and Investment Affairs Salman F Rahman, State Minister for Posts, Telecommunications, and Information Technology Junaid Ahmed Palak, and NAGAD’s Chairman Farid Khan.

Huawei’s South Asia Region President and CEO Pan Yunfei signed the agreement on behalf of Huawei. Several senior officials from the Chinese government were also in attendance, highlighting China’s support for Bangladesh’s economic growth and digital inclusion efforts.

Chairman of NAGAD Digital Bank, Farid Khan, commented on the significance of the agreement, stating that over the past five years, Bangladesh has seen a profound transformation in its financial landscape. Now, with global collaboration on the horizon, NAGAD and Huawei aim to propel Bangladesh towards a smarter future. NAGAD’s digital banking initiative will play a pivotal role in achieving a Smart Bangladesh, fostering significant advancements in the country’s economic framework.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has issued a show cause notice to Grameenphone due to an excessive number of call drops. The telecom operator could face a fine of up to Tk 300 crore if it fails to provide a satisfactory explanation.

The notice was issued on July 1.

Junaid Ahmed Palak, the State Minister for Posts, Telecommunications and Information Technology, informed journalists of this development after inaugurating the GPT platform ‘G-Brain’ at the ICT Tower in Agargaon, Dhaka, on Wednesday afternoon.

“We have issued an initial show cause notice to Grameenphone. Further analysis is underway. If they can provide a valid explanation, they may be pardoned as they were last time. However, if they fail to justify their actions properly, BTRC can impose fines ranging from Tk 100 crore to Tk 300 crore,” stated Palak.

He added, “We had asked for explanations from four mobile network operators (MNOs) regarding our test drive on July 30.”

The BTRC conducts ‘Quality of Service (QoS) Drive Tests’ to verify the service quality of mobile phone operators, checking voice calls, data, and network coverage.

Engineer Md. Mahiuddin Ahmed, Chairman of BTRC, mentioned that voice and data services on Grameenphone’s network did not meet the expected standards in the drive test. The BTRC is investigating the reasons behind this shortfall.

“If any operator fails to maintain the expected service quality, BTRC will take action. Customers should not suffer any inconvenience,” emphasized the BTRC Chairman.

According to the Quality of Service (QoS) guidelines, there is a provision for up to 2% call drops for voice calls. For call setups, BTRC has set a specific time limit of seven seconds. Additionally, a minimum download speed of 7 Mbps is required for 4G technology.