Spectrum auction fetches $885m for govt
Three cellular phone operators - Grameenphone, Robi and Banglalink - yesterday bought 27.4 megahertz of spectrum for $885.35 million because they turn to lessen the pressures on the overstretched network and boost services following rise in subscribers.
The Bangladesh Telecommunication Regulatory Commission (BTRC) arranged an auction for 7.4 megahertz of spectrum in 1800 band and 20 MHz in 2100 band at the Intercontinental Resort in Dhaka.
The base price for 1800 band was $31 million per megahertz, and for 2100 band, it had been $27 million. The spectrum was presented with for 15 years.
Market leader Grameenphone bought 0.4 MHz in 1800 band and 10 MHz in 2100 band at a merged value of $378.75 million.
Robi, the second-most significant operator, acquired 2.6 MHz in 1800 band and 5 MHz in 2100 band. It has to spend $225.6 million. Banglalink had taken 4.4 MHz in 1,800 band and 5 MHZ in 2100 band for $281 million.
State-run Teletalk took part on the auction for 2100 band but withdrew its bid at one point. It didn't take part in the auction for the 1800 band at all.
Alongside the spectrum service fees, Grameenphone, Robi and Banglalink will need to pay 15 per cent VAT as well.
The operators will have to deposit 25 % of the spectrum selling price by March 23 this year. The rest will be paid out in instalments at 15 per cent per year over a five-season period.
The brand new acquisition took Grameenphone's total spectrum to 47.4 MHz. Robi will will have 44 MHz and Banglalink 40 MHz. Teletalk's spectrum remains unchanged at 25.2 MHz.
During a great auction in 2013, 1800 band was dedicated designed for 3G service and 900 band for 2G company. In 2018, 2100 band was permitted to provide 4G service.
Soon after, the commission introduced technology neutrality, allowing the operators to provide 2G, 3G and 4G providers from any band they find fit. The move is helping them reduce operational costs and boost service quality.
By February, Grameenphone has 8.04 crore subscribers, Robi Axiata 5.15 crore subscribers, Banglalink 3.59 crore, and Teletalk 55.32 lakh, in line with the BTRC. Robi CEO Mahtab Uddin Ahmed, Banglalink CEO Erik Aas, and Grameenphone Chief Financial Officer Jens Becker led their particular teams during the auction.
Telecom Minister Mustafa Jabbar, Secretary Md Afzal Hossain, BTRC Chairman Shyam Sunder Sikder and Vice-chairman Subrata Roy Maitra were also present.
