BTRC puts Tk 500 emergency balance proposal on hold

The Bangladesh Telecommunication Regulatory Commission (BTRC) is considering a proposal to raise the maximum Emergency Balance (EB) limit for mobile subscribers from Tk 200 to Tk 500, but has put the proposal on hold for now to scrutinise the conditions attached to the service and ensure that customers are not adversely affected.

“We want to increase the Emergency Balance limit, but we need to study the conditions first. Different conditions are attached to different services, so we need to evaluate them carefully to ensure that customers do not suffer,” Md Emdad ul Bari, chairman of the BTRC, told The Daily Star.

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“After the evaluation, we will consider increasing the limit at the next commission meeting,” he added.

The decision to conduct further scrutiny was taken at a recent commission meeting after reviewing proposals from mobile operators and the Association of Mobile Telecom Operators of Bangladesh (AMTOB) to increase the Emergency Balance limit.

Emergency Balance allows subscribers with insufficient account balances to continue using voice calls, SMS and data services, with the amount recovered after they recharge.

BTRC introduced regulatory guidelines on the facility following customer complaints. In February 2019, the commission directed operators to provide at least Tk 10 as Emergency Balance without charge.

Later that year, the regulator decided that Emergency Balance of up to Tk 10 would be provided free, while higher amounts could be offered subject to charges.

Currently, mobile subscribers can receive up to Tk 200 in Emergency Balance, with a service fee of Tk 2.78 in applicable cases. Teletalk’s maximum limit is Tk 50, while its applicable service fee can go up to Tk 6.95.

The issue of raising the limit came up after Grameenphone sought regulatory approval in March this year to offer Emergency Balance ranging from Tk 10 to Tk 2,000, with a maximum service fee of Tk 20.

The country’s largest mobile operator cited changing customer usage patterns, rising prices of larger service packages, increasing digital adoption and the need to ensure uninterrupted services during emergencies, according to documents.

Other operators, however, raised concerns that a higher limit could create an uneven competitive environment and increase bad debt.

At a meeting between BTRC and all mobile operators in June, the commission asked AMTOB to submit a common proposal covering the maximum credit limit, slab-wise service fees, customer eligibility criteria and service categories.

The operators subsequently failed to reach a consensus, with Grameenphone telling BTRC that the provision of Emergency Balance and associated financial risks varied according to each operator’s commercial considerations. It therefore requested that its original application be considered separately and submitted a slab-based proposal.

Meanwhile, AMTOB proposed in July that the maximum Emergency Balance be increased from Tk 200 to Tk 500.

Under its initial proposal, Emergency Balance of Tk 1-Tk 10 would carry no service fee, while the existing Tk 2 fee would remain applicable for amounts between Tk 10 and Tk 200. A maximum service fee of Tk 15 was proposed for the Tk 200-Tk 500 range.

Following a subsequent BTRC-AMTOB meeting in August, the commission asked AMTOB to consult operators on reducing the proposed maximum service fee for the Tk 200-Tk 500 slab to Tk 10.

AMTOB later informed the commission that Grameenphone, Robi and Teletalk had agreed to a maximum Tk 10 service fee for the Tk 200-Tk 500 range while retaining the existing fee structure for lower slabs.

Banglalink, however, proposed a progressive slab-based fee structure instead of a uniform fee.

The operators also proposed that eligibility and credit limits should be determined based on customers’ usage patterns, recharge and payment behaviour, network tenure, revenue contribution, risk profile and other business criteria.

The BTRC’s System and Services Division noted that Emergency Balance is a long-standing customer-support facility and that there is broad agreement among operators on retaining the existing fee structure up to Tk 200.

However, differences remain over the fee structure for the Tk 200-Tk 500 range and the extent of operators’ discretion in determining eligibility and credit limits.