BTRC fines Japanese KDDI-invested company

The Bangladesh Telecommunication Regulatory Commission (BTRC) has fined BracNet 5 million BDT for involvement in illegal VoIP business.

BRACnet, which began its journey in 1996 as BRAC’s IT and ISP division, entered into a joint venture in 2005 with gNet DEFTA, a US investment firm. Attracted by its pioneering social business model and the potential to replicate it globally, Japan`s second-largest cellular operator and wireless ISP, KDDI, partnered with BRACnet, acquiring a 50% stake in the company.

According to BTRC sources, under the name of MH IT, High Volume outgoing calls (totaling 3,792,841 minutes) were made through IPTSP connections. Despite showing a credit limit of Tk 50,000 at the time of connection, it was later increased to Tk 1.3 million without approval.

In an attempt to earn illegal additional income, the company was caught by BTRC and was punished by reducing its service capacity by 25% for three months, along with being fined a significant amount. When asked about the matter, BRACnet admitted to the issue.