Telcos seek free spectrum

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Telcos seek free spectrum
Cellular phone operators have asked the telecom regulator to allocate some spectrum for free for the moment, reasoning that their network had become busier for a surge in data use amid the novel coronavirus-induced ongoing lockdown.

The carriers also requested Bangladesh Telecommunication Regulatory Commission (BTRC) to exempt them from sharing revenue with the federal government at least for a couple of months so that they are able to tackle the fallout of the coronavirus.

Mobile carriers share 6.5 per cent of their gross revenue with the government.

The telecom sector is experiencing challenges similar from what all other regions of the economy 're going through as a result of coronavirus pandemic, according to the Association of Mobile Telecom Operators of Bangladesh (AMTOB).

Mobile carriers already are observing trends in utilization patterns that may leave a dent on the overall revenue, it said.

The other day carriers slashed data pack tariffs by up to 50 % following a request from the telecom regulator, which has resulted in data usage growth of around 20 %.

Although data usage is growing rapidly, data monetisation is still low for carriers, said SM Farhad, secretary-general of the association.

Over the last few days, voice calls have dropped by up to 20 %. That is particularly worrying, Farhad said.

"Mobile operators have discussed the matter with the commission but we've said that the BTRC doesn't have the authority to come up with a decision like it," said Md Jahurul Haque, chairman of the regulatory body, about the demand on earnings sharing waiver request.

"Their expectations aren't unrealistic," he told The Daily Star.

Haque suggested that the carriers discuss the matter with policymakers. "In my personal view, only the prime minister can provide a decision about it."

The BTRC, according to Haque, can do a couple of things -- give some time to the operators to talk about the revenue and allow the income to be paid in installments.

Operators have sought 5 megahertz of spectrum from the 2100 band as customers are consuming at least 20 % more data recently.

The commission gets the authority to allocate spectrum on credit however the operators must pay the price in line with the rate that is dependant on auction, the BTRC chief said.

"It is true that spectrum price is higher in Bangladesh but we've nothing in connection with it. Only the government gets the authority to revise it or give it to someone free of charge," Haque added.

The total number of mobile phone top-ups through retail channels has declined by around 20 % due to people limiting their movements, Farhad said.

Although telecom has been declared a crisis service in this crisis period, law enforcement agencies are imposing restrictions on top-up shops in some places within the nationwide lockdown and this is maybe because of the ignorance about the government directives, he said.

"These obstacles are hampering our retail operations, especially the top-up or recharge services."

The operators urged regulations enforcers to increase their cooperation for the smooth functioning of the top-up stores and other recharge outlets.

Mobile operators are encouraging customers to avail top-ups through other options such as for example mobile financial services, electronic money transfers and mobile applications.
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