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Wednesday 10 February 2016

Dhaka Phone sues BTRC for Tk 4,000cr compensation

Dhaka Phone has filed a Tk 4,018.86 crore compensation suit against the telecom regulator for abruptly shutting down its service.
The land phone operator claimed that Bangladesh Telecommunication Regulatory Commission's move to shut down the services of the private company six years back was unlawful.
“My client has been compelled to take the step as it has big term loans and debts to settle with banks,” said Morsheda Begum, a lawyer for Dhaka Phone.
Dhaka Telephone Company-owned Dhaka Phone's shuttering was violation of articles 27, 31, 40 and 41 of the constitution, according to the details of the case filed by the operator with the joint district judge's court.
Dhaka Phone made several attempts to get back the licence and return to operation but the regulator did not respond to their requests, the lawyer said.
In the last couple of years, Dhaka Phone also urged the regulator to give them the scope to pay back 20 percent of Tk 2.2 crore that the operator owes to the BTRC in down-payment and clear the rest in instalments.
The regulator did not respond to the call as well. Subsequently, the operator on November 4 last year filed a case and in January this year, sent the notice to the BTRC.
The BTRC has received the notice about the money suit and it will fight the legal battle, said a senior official of the telecom watchdog requesting anonymity.
Dhaka Phone claimed about Tk 2,460 crore as losses to business opportunities and reputation, according to the petition. The operator, however, did not elaborate on the losses.
“We have all the calculation and we can submit it to the court,” Morsheda Begum said.
The company also said it lost equipment worth Tk 401.17 crore because of the closure. At the time of the shutdown, in March 2010, the operator had five main switch centres in Dhaka, Chittagong, Sylhet, Bogra and Khulna and around 400 employees, mostly telecom engineers.
Dhaka Phone also claimed Tk 240 crore for the price of their allocated frequency and Tk 136.39 crore for the loss of its tower and civil work. In 2010, the BTRC switched off the services of five operators claiming that they were involved in illegal international call termination through the voice over internet protocol technology.
Then, Dhaka Phone had 77,000 active connections.
In 2012, the regulator gave back some of the licences, but not Dhaka Phone's, with several conditions, including the operators' promise that they would never claim any compensation.
In the petition, the plaintiff said it had taken a syndicated term-loan from 11 banks for procurement of telecom equipment, installation and establishment of the company, and the dues are increasing by the day.
 After the shutdown, two mobile operators and two banks filed four cases against Dhaka Phone demanding dues of about Tk 133.39 crore.
In 2013, National Telecom and World Tel also filed similar money suits claiming Tk 960 crore and Tk 553.2 crore respectively against the regulator and the telecom ministry. The cases are still pending.