Sunday, December 12, 2010

Guidlines for IGW-International Gateway in Bangladesh-2

The Licenses will be awarded through an open competitive bidding/auction process. The Commission, after evaluating the applications submitted, will send out invitation to pre-qualified bidders to participate in the Bid/auction. The process to be followed is annexed as APPENDIX – I.

The duration of the Licenses, shall initially be for a term of 15 (fifteen) years. Upon expiry of the initial term, the License may be renewed for subsequent terms, each of 5 (five) years in duration, subject to the approval from the Commission and to such conditions, including the payment of any fees, as may be specified herein and/or by the Commission under the Act.

7.01 The Commission shall impose upon the Licensee different fees and charges. Some of the charges or part thereof shall be in proportion to the Licensee’s annual audited gross turnover.

7.02 Fees and Charges
Following fees and charges will be applicable to the Licensee
1. Application Fee Tk. 50,000.00 (Taka fifty thousand) only
2. License acquisition fee Tk. 15,00,00,000.00 (Taka fifteen crore) only
3. Annual License Fee (payable every year) Tk. 7,50,00,000.00 (Taka seven crore fifty lac) only
4. Gross Revenue Sharing with BTRC. (Gross Revenue = Earning by the Licensee from
incoming calls + share of earnings after settlement from outgoing calls) Will be fixed through competitive biding/auction
5. Revenue Sharing with ICXs and ANS

i) For International incoming calls:
* No International incoming call can be terminated for less than US$ 0.06. This rate may be reviewed by the Commission. After deducting VAT (if applicable)
a) 15% (fifteen percent) of prevailing call rates (call rates to be determined by the Commission from time to time) to be paid to ICX.
b) 20% (twenty percent) of prevailing call rates (call rates to be determined by the Commission from time to time) to be paid to ANS.

ii) For International outgoing calls (both to PSTN and mobile network) :
*For International Outgoing calls to mobile network, the revenue of Tk. 16.50 (Taka
sixteen paisa fifty) only is fixed by the Commission. For OUTGOING calls to mobile
network, a specific settlement amount would be paid to overseas networks. For
International Outgoing Calls to PSTN network, the revenue of Tk. 6.00 (Taka six) only is
fixed by the Commission. For Outgoing calls to PSTN network, a specific settlement
amount would be paid to overseas networks. These rates will be reviewed time to time
by the Commission. The revenue distribution/ sharing is based on the balance amount
only. ANS operators will pay 15% (fifteen percent) of the balance amount to the
Licensee, and the specific settlement amount to be paid to the foreign network through
the Licensee. The specific settlement amount will be approved by the Commission upon
the Licensees’ proposal. The revenue is calculated deducting VAT.
a) Balance amount (Z) = Call rate (X) - specific settlement amount payable to foreign carriers (Y) 
b) ANS operators will be paying Y+ 15% (fifteen percent) of Z to the IGW licensee.
The above revenue sharing will be applicable for clear channel too. The call rate for clear channel shall be as per Schedule-2(A).
6. Security Deposit in the form of Bank Guarantee Tk. 15,00,00,000.00 (Taka fifteen crore) only
7.03 The Licensee shall pay all the required fees within the stipulated time frame given hereinafter. All fees, charges etc. paid by the Licensee are non-refundable and are payable in favour of BangladeshTelecommunication Regulatory Commission in the form of bank draft or pay order from any scheduled bank of Bangladesh.

a. License acquisition fee: The Licensee shall pay the Licence Acquisition fee of Taka. 15,00,00,000.00 (Taka fifteen crore) only which will be payable within 10 (ten) working days of the auction.
b. Annual License fee: The Licensee shall pay an annual Licence fee of 7,50,00,000.00 (Taka seven crore and fifty lac) only every year on or before the date the license was issued.
c. Revenue sharing with the Commission: The Licensee in addition to the above, shall pay to BTRC on a quarterly basis on account of revenue sharing a percentage of the annual audited gross revenue within the first 10 (ten) days at the end of each quarter. The percentage of the revenue to be shared will be fixed through competitive bidding/Auction. The total revenue sharing shall be reconciled on an annual basis based on the Licensee’s audited accounts for that year and if there has been any underpayment the balance must be paid within 60 (sixty) days at the end of the financial year (July to June). In the event of any overpayment by the Licensee, the Licensee may adjust any excess amount against quarterly payments in the next year.
d. Revenue sharing with ICXs and ANSs: The Licensee in addition to the above shall share revenue with the ICXs and ANS operators as per the table above in Clause 7.02. 
e. The Licensee shall pay other fees and charges as may be levied by the Commission from time to time.
f. If Licensee fails to pay the fees, charges, etc. in time, it shall be liable to pay a late fee of 15% (fifteen percent) per annum at compound rate on the outstanding amount. If the amount along with late fee is not paid in full within 60 (sixty) days as stipulated, such failure may result in cancellation of the License.

7.04 Radio Equipment and Spectrum Charges: The rights granted to the Licensee do not include any rights to use any radio frequency until such frequencies are allocated by the Commission. If any frequency is allocated, the Licensee will be obliged to pay all required fees and charges related to such frequencies as fixed by the Commission. If the amount along with late fee is not paid in full within 60 (sixty) days as stipulated, such failure may result in cancellation of allocated frequency.

The Licensee shall furnish Bank Guarantee of Tk. 15,00,00,000.00 (Taka fifteen crore) only in favour of Bangladesh Telecommunication Regulatory Commission as “Security Deposit” within 10 (ten) working days from the date of issuance of License in a prescribed form (Schedule-3) issued by a scheduled bank.

The Licensee shall implement such accounting practices that allow for the identification of the costs and charges on a prevailing cost accounting basis for its accounting purpose.

10.01 The applicant shall submit Application for IGW Services License to the Commission in the prescribed Form duly filled in, signed and sealed, together with all the necessary documents and information indicated in the Application Information Instructions at SCHEDULE - 4. The prescribed Application Form is appended with these Guidelines at SCHEDULE -5.

10.02 The Guidelines prescribing application Form; generic License form and application information instructions will be available in the office of the Commission.

Each Licensee shall comply with the provisions of the Act, the terms and conditions of its License, and any regulations or guidelines issued by the Commission. The Commission has the right in its sole discretion to change, amend, vary or revoke any of the terms and conditions of the License upon the provision of notice to the Licensee informing the Licensee of the reasons for the proposed change. A generic form of IGW Service License is attached for reference as Appendix-2. This is provided for information only as an indication of the format and types of provisions that may be included in the License. The final terms of the License are matters solely for the Commission to determine and shall contain in the License issued by the Commission to the relevant applicant.

12.01 The information contained in this document is intended to assist interested parties in applying for the relevant Licenses. It does not bind the Commission to any particular course of action in relation to the handling of any application, or to the terms of any License to be granted, or to grant any License to any party. 12.02 The Commission reserves the right to change its policies and/or to amend this document without prior notice.
For further details about IGW license in Bangladesh:

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