Telenor’s Bangladesh subsidiary fined $24.5m

It has been established that GrameenPhone did not comply with laws requiring private operators to use the state-owned Bangladesh Telegraph and Telephone Board land phone network for international calls by its subscribers.

GrameenPhone used VoIP to receive calls from abroad. Acknowledging that this has caused the government loss of revenue, GrameenPhone has accepted to pay this compensation to the government.

The country's telecom regulator, the Bangladesh Telecommunication Regulatory Commission, and law enforcers jointly launched a crackdown on the illegal practice after the emergency government took over in January 2007.

GrameenPhone is the largest private enterprise in Bangladesh. Its net profit in 2006 grew by 55% to $136m on turnover of $656m. Bangladesh is one of the world's poorest countries with nearly half of its 144 million population surviving on less than a dollar day.

The booming mobile phone industry in Bangladesh has emerged as a key driver of the nation's economy, creating nearly 240,000 jobs and adding $650m annually to gross domestic product.