While processing the licence for Warid to work as the sixth operator, Bangladesh Telecommunication Regulatory Commission (BTRC) has also compromised significant legal provisions, according to the documents obtained by The Daily Star.

BTRC performs two tasks: issuing licence to intending operator and allocating frequency before a company starts operating mobile phone service in Bangladesh.

It needs to be noted that unlike India the 100 percent foreign ownership is allowed in the telecoms sector of Bangladesh. Therefore, the wholly owned subsidiaries of foreign companies can run mobile phone business in the country.

The BTRC has, however, issued the "GSM mobile telecommunication services operator licence" to "Warid Telecom International LLC" on December 20, 2005. This company is located at "301, Dhabi Tower, Hamdan Street, Post Box 44222, Abu Dhabi, United Arab Emirates," according to the licence.

The Daily Star has obtained a copy of this licence and there is no mention of Warid having any entity in Bangladesh in the form of registered office or subsidiary.

The BTRC has made its second blunder on March 1, 2006 when it allocated radio frequency to Warid Telecom, which is located in Baridhara, Dhaka. Whereas, this company obtained its trade licence on May 30, 2005 where it is shown located at Banani, Dhaka. Interestingly, its income tax certificate obtained on May 31, 2006 shows the company's address in Gulshan, Dhaka.

The present situation is Warid of Abu Dhabi, which has no entity in Bangladesh, holds the sixth mobile phone operating licence while Warid of Dhaka, which has no licence and is shown located in different places, got the frequency. Above all, the Warid of Dhaka did not even officially exist when BTRC allocated the radio frequency on March 1, 2006.

Industry insiders question the basic competence of BTRC in handling the licence and frequency management issues. "Every multinational mobile phone operator opened a local office and obtained licence thereafter followed by getting necessary frequencies," said a BTRC officer requesting anonymity.

He said BTRC should have advised Warid to follow similar procedure before processing the sixth mobile phone operating licence. "Warid has paid $ 50 million licence fees which is the highest in our telecoms history but BTRC has utterly failed to process the licence and allocate frequencies with bare minimum prudence."

He cited the example of BTTB's mobile phone licence that was hastily transferred to Teletalk and legality of this reassignment was immediately challenged in the court. "This litigation is still pending and if BTRC repeats the mistake, Warid's multibillion dollars investment plan may get jeopardised," the regulatory official warned.

BTRC Chairman Muhammad Omar Farooq has allegedly forced his subordinates to ignore the law while processing Warid's GSM mobile licence. He has also allegedly mounted pressure on the regulatory executives to issue the frequency to a non-existent entity.

"He did all these to earn personal credit from the Prime Minster's Office (PMO) as well as from Warid's owners who belong to the UAE's royal family," said a BTRC insider requesting not to be quoted.

Omar Farooq, retired home secretary, reportedly aspires for the ruling party's nomination in the forthcoming parliamentary election. In mid April, he and his son visited Warid's head office in Abu Dhabi, raising questions of conflict of interest.

BTRC sources allege that Dhabi Group, the parent company of Warid Telecom International LLC, hosted this personal trip of Omar Farooq and paid all expenses.

On June 5, 2006, The Daily Star sent e-mail to Omar Farooq requesting for his comments on allegations but he did not reply. Again on June 18, 2006 The Daily Star sent that e-mail's hard copy with a cover letter to the BTRC chairman, which was stamped and received by his office. Omar Farooq has not replied to that letter either.

Meanwhile, Muneer Farooqui, Warid's CEO in Bangladesh recalled his company's "excellent relationship" with the government. "We have been receiving all-out cooperation from all concerns to timely launch our network," he told The Daily Star in an interview on May 24, 2006.

He said legal experts were consulted before and during the licensing process and Warid has been "in compliance with all legal prerequisites." The Warid's CEO admitted that he was waiting for BOI's permission to open an office in the country.

"BTRC has ignored the law and that might trigger litigation against the entire licensing process," commented a telecoms lawyer requesting anonymity. "Legal challenge might stall network deployment, which will ultimately affect Warid's timely service commencement and the consumers will be the worst victim," he said. Muneer Farooqi, however, believes that his network's deployment and service commencement will remain on course. He declined to confirm any official deadline.