Robi Axiata is currently under scrutiny for alleged anti-competitive practices by two major telecom operators in Bangladesh, Grameenphone (GP) and Banglalink. The complaints revolve around Robi’s persistent use of the Airtel brand post its merger with Airtel in 2016, which the operators claim breaches the merger conditions.
GP raised concerns in a letter to the regulator last September, asserting that Robi’s utilization of the Airtel brand leads to customer confusion, brand ambiguity, and gives Robi an unfair advantage from Airtel’s global reputation. The letter, signed by CEO Yasir Azman, urged the Bangladesh Telecommunication Regulatory Commission (BTRC) to intervene to ensure fair competition and safeguard consumer trust.
Additionally, GP referenced a news report from December 2022 where the regulator’s Legal and Licensing Division warned about potential regulatory action if Robi continued to contravene the merger terms by using Airtel branding.
Shortly after, Banglalink echoed similar sentiments in a complaint submitted in October through a letter signed by Chief Corporate and Regulatory Affairs Officer Taimur Rahman. Banglalink raised broader issues in the public interest, citing violations such as the breach of specific conditions outlined in the BTRC’s 2016 merger approval.
Banglalink highlighted two key conditions from the merger approval: Condition 20, which mandates all marketing activities to be conducted under the “Robi” name, and Condition 10, which restricts Robi from using Airtel’s “016” number series beyond a designated period without prior written approval from the BTRC.
Contrary to these directives, Banglalink’s complaint pointed out that Robi continues to distribute SIM connections under the 016 number code and conducts substantial brand promotion and customer interactions under the ‘Airtel’ name without any apparent extension approval from the BTRC.
Both complaints emphasized the BTRC’s duty under the Bangladesh Telecommunication Regulatory Act, 2001, to uphold fair competition in the telecom industry. The operators are calling for a formal investigation, with Banglalink specifically urging the commission to instruct Robi to cease using the 016 number series and Airtel branding and to disclose publicly any permissions granted for their continued use.
In response to the allegations, Robi refuted the claims. Shahed Alam, chief corporate and regulatory officer, asserted that the company possesses governmental and regulatory consent to operate under the Airtel brand. He clarified that both the telecom ministry and the BTRC have officially sanctioned the usage of the Airtel brand and emphasized that there are no restrictions, either from the court or the merger agreement, on marketing or operating under the Airtel brand.
Moreover, Alam highlighted the distinction between a company and a brand, stating that a single company can legitimately manage multiple brands without creating separate legal entities. He warned against conflating the two concepts, as it could lead to confusion among consumers and industry stakeholders.
Maj Gen (retd) Md Emdad ul Bari, chairman of the BTRC, indicated that the regulator will handle the matter in accordance with the law. The telecom sector has witnessed a surge in anti-competitive allegations, with Robi previously lodging a complaint against GP with the Bangladesh Competition Commission, citing unfair market practices.