The telecom regulator has allowed Edotco Bangladesh, a tower business company, to gain independence from its parent company Robi by buying back majority shares of the company.
Bangladesh Telecommunication Regulatory Commission officials said they allowed Edotco to buy back 31 per cent shares of the company which make Edotco’s total holding in Bangladesh operation to 80 per cent.
Earlier, Robi held 51 per cent share in the company and Edotco held 49 per cent, both the companies being owned by Axiata Group of Malaysia.
‘We took the decision following Edotco’s application as the company wanted to comply with draft tower company guideline,’
said BTRC chairman Shahjahan Mahmood on Wednesday.
BTRC officials said Edotco applied to buy the stakes from Robi in April as the draft tower guidelines did not allow any company to have any affiliation with any mobile phone company.
The draft also said that any foreign tower company must have local partners to run its business in the country.
According to a recent estimation of Edotco, the company owned over 8,000 towers and was sharing those with six mobile companies operating in the country.
Robi in 2014 had applied to the BTRC to transfer 80 per cent of its shares to Edotco but the commission rejected the application.
‘EDOTCO welcomes the Commission’s decision to approve the transfer of 31 per cent shares in Edotco Bangladesh Co. Ltd from Robi Axiata Ltd to Edotco Investments (Labuan) Ltd and regards it as a clear demonstration of the Commission’s commitment to the growth and development of telecoms infrastructure in Bangladesh,’ said Darryll Sinnappa, managing director of Edotco Bangladesh.
‘We look forward to the finalisation of the tower licensing guidelines and pledge our continued support to the government’s nation building efforts,’ he added.
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