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Further Delay to Bangladesh's 3G License Auction

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Bangladesh's long delayed 3G auction could face further delays as the networks wrangle with the government over taxation issues.

At the heart of the dispute is the issue of VAT being added to the license fee, and the ongoing calls for taxes on SIM Card sales to be reduced.

The regulator is now proposing to delay the June auction until at least July, a BTRC official told the Daily Star newspaper.

The government is reportedly considering reducing VAT from 15% to 7.5% on the 3G license fees, although that hasn't been confirmed yet. The mobile networks are also calling for the Tk 600 per SIM Card tax to be lowered, and applied no per card, but per account. Currently customers have to pay the tax again if their SIM Card is faulty or lost.

The government yesterday approved measures to offer 8 blocks of 5Mhz instead of four blocks of 10Mhz to encourage the smaller networks to participate in the auction, and open up the possibility of more than one new entrant into the market.

On the web: Daily Star

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Tags: 3g license  btrc  Bangladesh