he government has moved to amend the telecommunication law to punish telecom operators for wrongdoings without giving them scope for challenging the regulator's decision.
Bangladesh Telecommunication (Amendment) Act 2010, already approved by the cabinet, will be placed in parliament today to have a stringent legal framework for telecom operators.
The bill proposes provisions of a fine up to Tk 300 crore for an offence, unilateral changes in clauses in an operator's licence by the regulator and arrest of telecom stakeholders without any warrant.
It also has a few clauses outlining the way to bring VoIP (voice over internet protocol) business under a legal framework.
If the bill gets through, telecom operators will not have a chance to appeal against the telecom regulator's decision, legal experts said.
All offences would be considered cognisable and the regulator or police could file a case even on suspicion, and arrest any telecom operator official without a warrant.
They said the constitution guarantees legal protection for all but the proposed amendment does not take notice of this.
The last caretaker government had brought a similar amendment to the act through promulgation of an ordinance on December 22, 2008. But the ordinance ceased to have effect as it was not ratified in parliament within a stipulated timeframe.
European Union, International Telecommunication Union (ITU) and investors in telecom sector in Bangladesh had sought the prime minister's intervention to have a law that will help increase telecom penetration in the country.
No official of telecom ministry or Bangladesh Telecommunication Regulatory Commission (BTRC) agreed to comment on the issue.
Telecom and ICT stakeholders in several meetings with government high-ups urged them to drop the provisions of harsh punishment that they deemed unconstitutional.
Oddvar Hesjedal, chief executive officer of Grameenphone, said, "Under the law, there is a possibility that the regulator may claim that the operator is involved in any wrongdoing."
He said the BTRC would be the single body to play the key role in the whole affair.
"We cannot go for appeal against any decision taken by BTRC. This seems unconstitutional."
Hesjedal said many operators are hesitating to go for 3G (third generation mobile technology) because of the proposed amendment.
"We have to pay for licences and rollout. Under these circumstances, the law could be a fear factor for future investments."
Hasanul Haq Inu, chairman of the parliamentary standing committee on post and telecommunications ministry, said the committee would stand against the proposed amendment.
"I don't believe parliament will pass the bill without making it suitable for the industry," he said.
He hoped that if anything unconstitutional remains in it, the House would consider it.
In Bangladesh, a telecom licence is issued for 15 years. The conditions laid down in the licence might need to be altered to keep pace with the rapid change in technology.
The bill proposed that the regulator could change the conditions in the licence without any consultation with the operators.
Hesjedal said operators pay for their licences. "So if changes are needed, it should be done in consultation with the operators."
On the proposed amendment, Ahmed Abou Doma, chief executive officer of Banglalink said, "The new telecom act is actually unconstitutional as it doesn't give the operators the right to appeal."
"You are actually threatening the existing investments in the country. That includes even arresting and putting officials of companies in custody and not having the right to appeal."
Commenting on the proposal for fine, Doma said the maximum fine of Tk 300 crore is impractical as some operators do not have a paid-up capital of more than Tk 10 crore.
"This means they are not being penalised, they are being put off business and moreover arrested. What kind of investment climate is this?"
The maximum fine for such offences is $2.5 million in Asian countries, he said.
Mahbub Zaman, president of Bangladesh Association of Software and Information Services, said such a law would send a wrong message to the tech savvy generation.
It would discourage prospective investors from putting money in Bangladesh's telecom and ICT sector, he said.
Telecommunication penetration is only 34 percent in Bangladesh. More than 56 million people now use mobile service while only 1 million people have access to the internet.
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