Spectrum auction fetches $885m for govt

Three mobile phone operators – Grameenphone, Robi and Banglalink – yesterday bought 27.4 megahertz of spectrum for $885.35 million as they look to lessen the pressures on their overstretched network and improve services following the rise in subscribers.

The Bangladesh Telecommu-nication Regulatory Commission (BTRC) arranged an auction for 7.4 megahertz of spectrum in 1800 band and 20 MHz in 2100 band at the Intercontinental Hotel in Dhaka. 

The base price for 1800 band was $31 million per megahertz, and for 2100 band, it was $27 million. The spectrum was given for 15 years.

Market leader Grameenphone bought 0.4 MHz in 1800 band and 10 MHz in 2100 band at a combined price of $378.75 million. 

Robi, the second-largest operator, acquired 2.6 MHz in 1800 band and 5 MHz in 2100 band. It has to pay $225.6 million. Banglalink took 4.4 MHz in 1,800 band and 5 MHZ in 2100 band for $281 million.

State-run Teletalk took part in the auction for 2100 band but withdrew its bid at one point. It did not participate in the auction for the 1800 band at all.

Alongside the spectrum fees, Grameenphone, Robi and Banglalink will have to pay 15 per cent VAT as well.

The operators will have to deposit 25 per cent of the spectrum price by March 23 this year. The rest will be paid in instalments at 15 per cent per year over a five-year period.

The new acquisition took Grameenphone's total spectrum to 47.4 MHz. Robi will now have 44 MHz and Banglalink 40 MHz. Teletalk's spectrum remains unchanged at 25.2 MHz.

During an auction in 2013, 1800 band was dedicated for 3G service and 900 band for 2G service. In 2018, 2100 band was allowed to provide 4G service.

Later, the commission introduced technology neutrality, allowing the operators to offer 2G, 3G and 4G services from any band they see fit. The move is helping them reduce operational costs and improve service quality.

As of February, Grameenphone has 8.04 crore subscribers, Robi Axiata 5.15 crore subscribers, Banglalink 3.59 crore, and Teletalk 55.32 lakh, according to the BTRC. Robi CEO Mahtab Uddin Ahmed, Banglalink CEO Erik Aas, and Grameenphone Chief Financial Officer Jens Becker led their respective 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.