BTRC gives nod to Robi-Airtel merger

The landmark merger of Robi and Airtel is inching closer to fruition after the telecom regulator gave it the green light on Wednesday.

The merger proposal, which will make the combined entity the second largest mobile operator in Bangladesh, will be forwarded to the telecom division next week for final approval.

According to a court order, the telecom watchdog has to send in its recommendation on the merger proposal to the government by March 22, and the government will have to make its decision by April 10.

The approval from the Bangladesh Telecommunication Regulatory Commi-ssion comes with several conditions. Foremost among them is the issue of amalgamation of the two operators' spectrums.

Currently, Airtel has 20 MHz of spectrum and Robi 19.8 MHz. The two operators can merge their spectrums but Airtel cannot withdraw from the country before the expiry of its spectrum licences.

The tenure of Airtel's 2G licence will end in 2020 and 3G in 2028.

In the merged entity, Axiata, the parent company of Robi, will hold a controlling stake of 68.7 percent, Bharti Airtel 25 percent and NTT Docomo of Japan 6.3 percent.

The BTRC condition means Bharti Airtel cannot sell off its 25 percent stake and withdraw from Bangladesh before 2028, when its 3G licence expires.

Another condition is that the '016' prefix currently allocated to Airtel has to be retired within one year of the merger, Shahjahan Mahmood, chairman of the BTRC, said yesterday.

The existing Airtel subscribers will be given Robi's current prefix of 018. As of February, there are 1.04 crore active numbers under the '016' series.

Robi, however, wants to continue the use of '016' prefix for longer, as it will be able to issue more SIMs with two number series.

As of February, Robi's total active connections stood at 2.76 crore.

The BTRC has also forbidden the merged entity from cutting any jobs, but it will be able to offer voluntary retirement. At present, Airtel has about 800 employees, 470 of whom are permanent staff.

The new company will also not be allowed to cut any retailer or distributor of the individual companies after the merger.

The parent companies of Robi and Airtel signed the merger deal on January 28.

A senior executive officer of Robi said they are waiting for the commission's decision eagerly, as the merger will bring new investment into the telecom market.