Telcos welcome Robi-Airtel merger
Four telecom operators yesterday welcomed the proposed merger between Robi and Airtel, but two of them expressed concern over spectrum use at the same time.
The two top operators – Grameenphone and Banglalink – raised concerns over spectrum holding, technology neutrality for spectrum and the numbering schemes of the merged entity, while state-run Teletalk and Citycell unconditionally welcomed the initiative.
Bangladesh Telecommunication Regulatory Commission took the opinions of the competitors at a meeting yesterday. BTRC will organise a public hearing on February 17, said Md Sarwar Alam, the regulator's spokesman.
Grameenphone and Banglalink stressed ensuring a level-playing field and an opportunity to acquire more spectrums, according to officials present at the meeting.
One of Banglalink's top executives said they are supportive of the merger, but a level-playing field needs to be ensured in spectrum acquisition, according to an official who was present at the meeting.
“GP stressed the spectrum-user ratio. As the merged entity will be serving a lower number of subscribers with a huge amount of spectrum, a considerable portion of spectrum could remain unused,” said the official requesting anonymity.
Grameenphone currently has 5.67 crore subscribers with 32MHz of spectrum in the 1,800, 2,100 and 900 bands.
The joint entity of Robi and Airtel will have around four crore subscribers with a combined spectrum of 39.8MHz in the three bands.
Grameenphone said if the regulator cannot ensure 'fairness' in spectrum use, the subscribers will suffer in the long run, the official added.
Grameenphone also raised the issue of the government's planed spectrum auction of 10.6 MHz in the 1,800 band and 15 MHz in the 2,100 band before the expected merger.
In response, BTRC Chairman Shahjahan Mahmood said the two are independent processes; both will go ahead as parallels.
The two separate numbering schemes of a single operator, as both Airtel and Robi numbers will be running after the merger, are a matter of concern, according to Banglalink.
Grameenphone demanded that technology neutrality and spectrum auction should be considered along with the merger, as those are “inseparable in the present context”, said the official.
Banglalink raised the issue of Significant Market Power regulation, beside the spectrum issues.
Banglalink said the merger could result in market monopoly in some zones. In Chittagong, for example, Robi has a stronghold and when Airtel and Robi merge, the other operators could be zoned out.
Banglalink also raised questions on how the merged entity will obtain spectrum.
However, Teletalk and Citycell see the matter as an opportunity.
At the meeting, Mahmood of BTRC said they will form a high-powered committee and compile all the points after completing the public hearing.
Earlier, the regulator also appointed two professors to conduct a market study.
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