Grameenphone Grapples with Governance Grievance

Grameenphone, Bangladesh’s mobile operator designated as a Significant Market Player (SMP), is facing allegations of abusing its market dominance by selling SIM cards at unusually low prices to capture market share. The complaints were formally lodged with the Bangladesh Competition Commission (BCC), prompting Grameenphone to appeal against the claims.

In response, the BCC held a hearing on Wednesday, September 17, at Borak Tower in Dhaka. Representing Grameenphone, Barrister Sharif Ahmed argued that the complaint falls under the jurisdiction of the telecom regulator rather than the Competition Commission.

However, Robi Axiata PLC’s legal counsel, Barrister Samir Sattar, countered the argument, citing the 2012 Competition Act. He stated that under Section 42, the Competition Commission’s provisions take precedence over the Telecommunications Act of 2001, and Section 3 of the Competition Act encompasses all enterprises engaging in commercial buying and selling, except for government institutions exempt under Section 4.

The hearing was presided over by BCC Chairperson A.H.M. Ahsan, alongside members Dr. Aktaruzzaman Talukdar, Wahid Hasan Shah, and Afroza Bilkis. A ruling is scheduled for Monday, September 22, which could influence the SMP operator’s future market strategies.

According to the complaint, Grameenphone has allegedly employed aggressive strategies, including artificially lowering SIM prices, imposing discriminatory conditions, and controlling retail distributors, thereby violating Sections 15 and 16 of the Competition Act 2012. Such practices are said to restrict competitor access, create monopolistic conditions, and reduce long-term consumer welfare.

In response, Grameenphone stated, “Grameenphone operates its business in compliance with Bangladesh’s prevailing competition law. Today, at the Competition Commission hearing, we clarified our position. Grameenphone is not involved in anti-competitive practices. We categorically deny all allegations related to pricing, marketing, and distribution. Our telecom sector is strictly regulated by the Bangladesh Telecommunication Regulatory Commission (BTRC), which ensures fair competition, an open market, and consumer rights. As an SMP operator, we operate fully under regulatory directives, including MNP lock-ins, campaign approvals, and interconnection charges. The allegations against us are baseless and reflect negative competitive intent.”

Robi Axiata PLC’s Chief Corporate and Regulatory Officer, Sahed Alam, responded, “We have filed complaints against Grameenphone with clear evidence before the Competition Commission. Grameenphone’s challenge to the Commission’s authority is unfounded. We firmly believe that, under the Competition Act, the Commission has the legal mandate to investigate and take appropriate action regarding persistent market competition violations.”