Govt trying to speed up spectrum auction
The government is trying to expedite the much-delayed spectrum auction, which will bring the state coffer around Tk 5,000 crore.
However, mobile operators are not showing interest in the auction, saying their demands have to be met first.
Prime Minister Sheikh Hasina, who is also in charge of the telecom ministry, already consented to the amended guideline for the spectrum auction; it is now with the finance ministry for further scrutiny and the guideline is expected to receive the green light soon, an official of the telecom division said.
After the approval, Bangladesh Telecommunication Regulatory Commission will take an initiative to arrange the auction for 15MHz of 3G spectrum in the 2,100 band and 10.6MHz of 2G spectrum in the 1,800 band.
“We have a few requirements and we need to go through the guideline first. But ensuring technology neutrality is a must before we take part in the auction,” said an official of a mobile phone operator.
The regulator currently does not allow operators to offer all services in a single band. But if operators get technology neutrality, they can use spectrum of any band for any service, which will reduce their costs.
“If technology neutrality is not offered, there is no need for any spectrum then,” the official said, asking not to be named.
But nothing on technology neutrality was mentioned in the amended guideline, the telecom division official said.
Last year, the BTRC had even declared a date for the spectrum auction but mobile operators attached three conditions to participating in the auction -- tech-neutrality was one of them.
The two other issues have already been addressed: updating the telecom policy and resolving the disputes with the National Board of Revenue on SIM replacement taxes.
The telecom policy is close to being finalised and the SIM replacement tax issue is now in court.
The prime minister approved the base price for the auction at $25 million for each megahertz of spectrum for 15 years, the telecom division official said.
Finance Minster AMA Muhith is also interested in holding the auction within this fiscal year and has instructed the revenue board to take steps to clear the barriers to the spectrum auction.
The NBR at a recent meeting requested the telecom regulator to organise the spectrum auction as early as possible.
Also, State Minister for Telecom Tarana Halim said they will hold the auction within this fiscal year. “We will try to break all barriers to holding the auction.”
Tarana had also said earlier that they will arrange the auction before the completion of the proposed merger between mobile operators Robi and Airtel.
At present, Robi and Airtel jointly have 39.8 MHz in three bands, which may combine once the merger is complete.
Market leader Grameenphone has 32 MHz spectrum, while Banglalink has 20 MHz in three different bands.
In the guideline, the government also makes a provision to allow a new operator to take part in the auction to make it competitive.
In the 2,100 band, 15MHz will be divided into three slots with 5 MHz spectrum each; in the 2G spectrum, every slot will be of 5.6 MHz, according to the guideline.
If any operator does not have any spectrum in the 2,100 band, it can buy all the three slots. And if any operator has 5 MHz, it can at best buy two slots. An operator having two slots can buy only one.
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