US embassy cable - 05DHAKA3074

UNCLAS DHAKA 003074 
 
SIPDIS 
 
TIMOTHY C. FINTON, EB/CIP; JONATHAN MCHALE, USTR; 
PAUL NEUREITER, USTR. 
 
E.O. 12958: N/A 
TAGS: ECPS, ETRD, ECON, EU, BG 
SUBJECT: LICENSING CONDITIONS IN THE TELECOMMUNICATIONS 
SECTOR IN BANGLADESH 
 
REF: STATE 114687 
 
1. In Bangladesh, landline licenses are granted by division, 
a geographic unit approximately equivalent to a state or 
province.  Licenses cost the same in all divisions and for 
all companies, at 20 million Tk (about 312,500 USD). 
Bangladesh Telecommunications Regulatory Commission (BTRC) 
told EconOff that this fee is charged to cover administrative 
costs and to generate revenue for the government.  Licenses 
must be renewed yearly, at a cost of 3 million Tk (about 
46,875 USD). 
 
2. BTRC does have a capitalization requirement for license 
applicants.  This is done to ensure the financial soundness 
of the applying company.  The capitalization required for 
each division is the same except for Dhaka division, home to 
Dhaka city, which has a higher requirement.  The rights to 
Dhaka Division's land line license are being contested by a 
company that was offered exclusive privilege to it under the 
previous, opposing party, government through a contract that 
the current government does not want to honor. 
 
3. According to local industry contacts, the BDG does not 
require build-out investments. 
 
THOMAS