GP and Robi Move Toward Arbitration to Settle Dispute
To get rid of the complexity of the case, the country’s two top mobile operators Grameenphone (GP) and Robi Axiata are seeking a compromise on the outstanding audit objections. In the middle of this year, both operators applied to the Bangladesh Telecommunication Regulatory Commission (BTRC) calling for the settlement of the matter through arbitration. BTRC is also now considering resolving the matter through compromise.
10 years ago, the telecom sector regulatory body BTRC conducted an audit of Grameenphone and Robi. From 1996 to 2014, Grameenphone and Robi were audited on various issues including taxes, VAT, handset royalty, payment of spectrum price, license fee. After that audit, Grameenphone and Robi were demanded to pay Tk 12,580 crore and Robi Tk 8,672.3 lakh.
Against this claim of BTRC, Grameenphone has paid more than Tk 2,000 crore and Robi has paid Tk 138 crore. Although both operators had been objecting to this audit claim from the beginning. The two operators even filed a case in court against BTRC’s claim for dues. Later, they demanded that the dues be settled through arbitration. Although BTRC has been saying from the beginning that there is no scope for arbitration in their laws.
In this situation, after the political change in the country, Grameenphone and Robi have recently written to BTRC requesting to settle the outstanding dues through arbitration. In a letter to BTRC on July 29, Grameenphone said that the case regarding the audit claim money has been going on for a long time. Considering the long time, process and technical complexity, they now want to settle the matter through arbitration. Robi also wrote to BTRC on June 1 this year to mediate the matter.
Grameenphone said in the letter that the case has been pending for six years. Due to the backlog of cases in the civil court and the slow pace of settlement, it is not possible to get a final verdict in the near future. In this situation, resolving the dispute through arbitration is in the best interest of all parties concerned. Grameenphone has also requested that the BTRC initiate discussions on this issue through an arbitration agreement.
When asked, Grameenphone’s Chief Corporate Affairs Officer Tanvir Mohammad told Prothom Alo, “Grameenphone has always been a responsible and law-abiding company. We have challenged the audit claim from the beginning. Because, there are content, method and procedural flaws in this audit. In this situation, a fair, transparent and timely solution needs to be reached in the interest of everyone. The arbitration process is an established and effective legal method for resolving such issues. Grameenphone is ready to work sincerely with the BTRC, so that the matter can be resolved through this process.”
Meanwhile, Robi says that it is possible to resolve this dispute constructively without a long legal process through mediation. It will save time, resources and mutual interests. Therefore, the company has requested the BTRC to initiate the mediation process.
Robi’s Chief Corporate and Regulatory Officer Shahed Alam told Prothom Alo that Robi is always ready to resolve the issue. The process has been prolonged as BTRC has not responded for six years after seeking a solution through the court. Audit disputes have hindered investment and innovation in the telecom sector. If the problem is resolved fairly, investor confidence will return.
Although BTRC once did not want to enter into any kind of discussion on dispute resolution, it is currently examining whether this issue can be resolved through arbitration.
When asked, the chairman of the commission, Major General (Retd.) Md. Emdad ul Bari, told Prothom Alo, “We have received letters from the two operators. The BTRC will take the next steps in this regard after consulting the legal advisory firm.”
