Flash Report /
Bangladesh

Grameenphone: Regulator withdraws bandwidth restriction

    Tanay Kumar Roy
    Tanay Kumar Roy

    Research Analyst

    IDLC Securities
    18 July 2019
    Published by

    Press reports suggested that the telecom regulator Bangladesh Telecommunication Regulatory Commission (BTRC) withdrew the bandwidth restriction imposed on Grameenphone (GP) after thirteen days. The restriction was imposed on 4 July to collect a BDT125bn contingent liability claim.

    The BTRC, however, is likely to explore other avenues, which include non-issuance of no objection certificates (NOC). GP requires NOCs – among other reasons – to set up new sites, launch new packages and import machinery or equipment. Therefore, the non-issuance of NOCs poses potential operational risks for GP.

    We maintain our Buy recommendation with a TP of BDT438.8 pending further information.