Top court clears way for 4G spectrum auction


FE Online Desk | Published: January 15, 2018 15:16:10 | Updated: January 15, 2018 15:36:32


Path to 4G now clear

The telecoms regulator is going to auction fourth generation (4G) spectrum as scheduled, as the top court has cleared the way for this.

Five mobile phone operators already applied for 4G/LTE license to Bangladesh Telecommunications Regulatory Commission (BTRC) while four other operators only opted for taking part in the auction.

With a High Court bench order putting restrictions on the auction on Thursday, it was uncertain for hours unless an apex court chamber judge issued a stay order on this the same day.

The Appellate Division of the Supreme Court (SC) virtually cleared the way for auctioning of 4G spectrum, extending the stay on Sunday.

"Now there is no legal bar in holding the auction for allotting spectrum to mobile phone operators for 4G services," Attorney General Mahbubey Alam told reporters after the apex court passed the order.

Bangladesh Telecommunication Regulatory Commission (BTRC) earlier floated a bidding process inviting applications for taking part in spectrum auction for 4G mobile phone service, reports BSS.

Wireless internet provider Banglalion Communications Limited filed a writ petition, claiming the circular contrary to the broadband guideline, 200, which in fact triggers restrictions on the 4G way ahead.

BTRC is scheduled to issue 4G license on February 14 after holding of spectrum auction for three different bands on February 13.

The mobile phone operators which seek the 4G/LTE license are Teletalk, Grameenphone, Banglalink, Robi and Citycell.

Apart from the state-owned Teletalk the four other operators have submitted applications for taking part in spectrum auction.

However, the lone CDMA-based mobile operator Citycell has stopped providing service since October. As Citycell does not have 3G license, it has to collect license first and purchase spectrum then for 4G/LTE.

On December 4 last year, BTRC announced the roadmap for 4G/LTE license and spectrum auction. BTRC will hold auction in 2100 MHz, 1800 MHz and 900 MHz bands.

Through the auction, the telecom regulator will also provide technology neutrality which the MNOs have been demanding for a long time.

After the evaluation, BTRC chairman said, they will send recommendation with the list of qualified MNOs to the ministry of Posts, Telecommunications and Information Technology for issuing 4G/LTE license.

"We hope the MNOs will offer 4G/LTE service by the end of February or middle of March," expected Dr Shahjahan Mahmood.

According to the roadmap, BTRC will publish the list of qualified applicants for the auction on January 25 while consultation on auction procedure will take place on January 29, date for submission of bid

earnest money is on February 5, letter of acceptance/rejection to participate in the bidding is on February 7 and mock auction will be held on February 13.

Besides, the telecom regulator will announce the name of winning operators on February 14.

BTRC Director General (Legal and Licensing) A K M Shahiduzzaman said the wining MNOs will get 30 days to pay the fees for license and spectrum.

"During the timeframe, MNOs paying 60 percent of the total money can start 4G/LTE operation."

Replying to a query regarding Citycell, he said, they have paid outstanding dues partially, and the remaining would be paid later after ending the case now under judgment in the high court.

About the new entrant, BTRC Chairman said two foreign firms had showed interests earlier, but they didn't apply for license and spectrum.

"But, door is always open for new entrants in Bangladesh, as foreign entity does not make any investment over night."

According to the roadmap, the bid earnest money for 2100 MHz, 1800 MHz and 900 MHz has fixed at Taka 1,500 million.

Besides, the base price for auction of 2100 MHz is $ 27 million, 1800 MHz is $ 30 million and 900 MHz is $ 30 million.

On the other hand for the technology neutrality, the conversion in one go, the charge will be $ 4 million for each 900 MHz and 1,800 MHz, while it will be $ 7.5 million for converting partly.

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