Bangladesh’s oldest cellco set to lose license
In this article (5)
Bangladesh’s oldest mobile operator Citycell is on track to losing its license after failing to pay its required license and related fees.
The CDMA-based Citycell had its spectrum revoked last week, and now the Bangladesh Telecommunication Regulatory Commission (BTRC) is seeking permission from the government to revoke the operator’s license.
Citycell owes dues of 4.77 billion taka ($60.8 million), which include unpaid spectrum renewal fees, license fees, late fees and value-added tax.
The Supreme Court had ordered Citycell to pay two thirds of the amount owed by October 19, but the operator only managed to pay 1.3 billion taka, and its spectrum was accordingly revoked the next day.
The BTRC has been advising Citycell customers since the end of July to switch to another operator in preparation for the shutdown.
Citycell commenced operations in 1993, but found itself relegated to a niche player as GSM outmatched CDMA by popularity. At its peak in 2011 the operator had around 1.9 million customers.
Singtel is the largest shareholder in Citycell with a 44.54% share, while Far East Telecom has 17.51% of the company. These shareholders have been attempting to sell Citycell’s license for several years but have not found any buyers.
Questions & Answers
Q.What were the primary reasons for Citycell's inability to retain its operating license?
What were the primary reasons for Citycell's inability to retain its operating license?
Citycell is losing its license due to unpaid license and related fees. These include overdue spectrum renewal fees, license fees, late charges, and value-added tax, totalling 4.77 billion taka. They failed to meet a Supreme Court payment deadline.
Q.How much money did Citycell owe in total, and how much of this did they manage to pay?
How much money did Citycell owe in total, and how much of this did they manage to pay?
Citycell owed 4.77 billion taka ($60.8 million) in total. The Supreme Court ordered them to pay two-thirds of this amount by October 19, but Citycell only paid 1.3 billion taka, leading to their spectrum revocation.
Q.What advice has the Bangladesh Telecommunication Regulatory Commission been giving to Citycell's existing customers?
What advice has the Bangladesh Telecommunication Regulatory Commission been giving to Citycell's existing customers?
Since the end of July, the BTRC has been advising Citycell's customers to switch to another mobile operator. This recommendation was given in preparation for the eventual shutdown of Citycell's services, anticipating the loss of its license.
Reader pulse
Citycell's license revoked: Inevitable or preventable?
18,708 votes so far