`Caab’s network rollout model frustrates mobile operators

At airports and other critical infrastructure sites, mobile operators typically install network equipment with support from authorities who usually provide space free or at nominal rent, ensuring passengers enjoy reliable internet and telecommunication access.

But the Civil Aviation Authority of Bangladesh (Caab) has taken a different approach for Terminal 3 of Hazrat Shahjalal International Airport in Dhaka.

Caab has invited technical proposals that include profit-sharing for innovative digital services and rental fees for multiple spaces within the terminal, a model that has frustrated mobile operators. They fear it could delay the rollout of mobile networks, just as the terminal is due to become fully operational later this year.

On June 20, Caab called for bids from mobile operators to install network infrastructure inside Terminal 3. Under the proposed terms, seen by The Daily Star, the operator offering the highest financial bid will win the contract and will also be responsible for ensuring access to network services for all other operators.

The winning bidder will be required to pay a security deposit of Tk 3 crore and rent for four different terminal spaces. Additionally, they must share a percentage of profits earned from digital innovation services using the infrastructure with Caab. Revenue collected from other operators will also be shared with the authority.

Mobile operators have labelled this model unreasonable and contrary to passenger interests.

Banglalink, Grameenphone and Robi Axiata have recently sent a letter to Caab, proposing that the network be jointly deployed by all mobile operators without tender.

"One operator will lead and deploy the basic infrastructure like Distributed Antenna System (DAS) in applicable areas and other operators will install and integrate their equipment, systems and spectrum accordingly," reads the letter.

A DAS is a network of spatially separated antennas connected to a common source that distributes wireless signals to improve coverage and capacity within a specific area, such as a building or stadium.

"Through this site build modality, operators will ensure respective communication services seamlessly by maximum utilisation of national resources and logistics," it states.

The operators have agreed to pay space rents for Terminal 3 at rates comparable to those for Terminals 1 and 2. They also noted that security deposits are not standard practice for network deployments.

The mobile operators cited precedents of joint network solutions at critical government infrastructure, including Jatiya Sangsad Bhaban, Bangladesh Secretariat, National Board of Revenue, Bangladesh Telecommunication Regulatory Commission (BTRC), State Guest House Jamuna, and Jamuna Future Park. These collaborations comply with existing telecom regulations, with operators obtaining necessary no-objection certificates (NOCs) from the BTRC before installation.

Shahed Alam, chief corporate and regulatory officer at Robi Axiata Ltd, criticised Caab's proposal: "This is absolutely ridiculous. We pay taxes to the government and BTRC as per the law. There is no scope for sharing revenue or profit with any third party."

Tanveer Mohammad, chief corporate affairs officer, Grameenphone, said, "We are surprised to receive such proposals from the civil aviation authority, especially after repeatedly sharing our position along with the supporting rationale."

"The airport is the country's first impression to international visitors. Ensuring uninterrupted mobile service in terminals is not merely commercial but a national necessity. We hope Caab will adopt the same model used in the other terminals," he added.

The dispute between the Association of Mobile Telecom Operators of Bangladesh (Amtob) and Caab has been ongoing since 2022.

 Amtob Secretary General Lt Col (retd) Mohammad Zulfikar said, "Since 2022, we have been in talks with Caab to set up mobile networks inside and around Terminal 3. A trial solution was even tested successfully during the soft launch in 2022."

However, Caab later proposed alternative ideas that do not align with telecom regulations. "We remain hopeful that the civil aviation authority will understand and reckon the practical challenges, thereby work towards a sustainable solution."

Initially, Caab considered engaging a third party to install and operate mobile network infrastructure at the terminal, but Amtob and BTRC clarified that only licensed operators can do so under current law. Over the past three years, more than 18 letters have been exchanged among Amtob, BTRC, and Caab on this matter. Following legal clarifications, Caab abandoned its plan to use a third party.

More than 18 letters have been exchanged among Amtob, BTRC, and Caab over the past three years on this issue, according to officials concerned.  Following legal clarifications, Caab abandoned its plan to use a third party.

Construction of Terminal 3's physical infrastructure is complete, and the terminal is slated for full operation by the end of 2025.

Recognising urgency, Caab, Amtob, and BTRC held a meeting on May 7. Afterward, in a letter sent on May 29, Amtob warned Caab that launching the terminal without mobile connectivity would be disastrous. Operators estimate needing around five months to complete network deployment once permissions are granted.

BTRC Chairman Maj Gen (retd) Md Emdad ul Bari said charging rent for setting up indoor network infrastructure was acceptable.

However, he added that there should be no revenue-sharing arrangement, as such tender and bidding models for coverage could hinder network deployment in the future, not just at the airport, but at other locations as well.

Telecom policy analyst Abu Nazam M Tanveer Hossain criticised Caab's approach, saying it risks leaving Terminal 3 without reliable cellular coverage.

"While infrastructure sharing among operators aligns with global practice, Caab's demand for revenue-sharing is not the norm. Operators share revenue with regulators, not landlords," he said.

Moreover, he noted that the indoor infrastructure will only cover a fraction of the overall network required.

Instead of introducing "commercially unclear" terms, Caab could expedite the matter by following standard practices, he said.

The Daily Star emailed a set of written questions to Caab on July 30 seeking its response. But the authority has not replied as of yesterday evening.