Mobile Cos’ Syndication
Foreign firm unlikely to take part in 3G auction
Bangladesh Telecommunication Regulatory Commission chairman Sunil Kanti Bose has said they are yet to get any assurance from the new firms for 3G auction, although three foreign companies showed interest.
‘It seems to us that no foreign operator would take part in the forthcoming 3G auction,’ Sunil told the news agency on Saturday. Earlier, one renowned operator from Asia and two from Europe communicated with the regulator after publishing 3G guideline and showed interest to participate in the process.
A fresh move for foreign investment in the country’s telecommunication sector has been foiled due to a syndicated-hindrance posed by the mobile phone operators, said BTRC officials.
They said the operators made the move to avert any kind of competition from new foreign firms in upcoming auction for 3G spectrum assignment.
The officials said the regulator, in the 3G guideline, at first offered 2G licence to the new entrant, as the interested firms said that they needed the licence to compete with exiting operators, but the operators opposed the move and forced to cancel it.
A Japanese company — NTT DOCOMO — was in race as the last foreign firm, but dropped out recently following hindrance from the local operators, the officials added.
They informed regulator imposed 70 per cent charges on the 2G licence for the new entrants following syndicated pressure from operators.
‘The NTT DOCOMO, even after paying the 70 per cent charges, was ready to invest both in 2G and 3G services, but the existing operators apprehending it risky managed to change the rule again, and so the new entrant has to pay full amount for 2G,’ added the officials.
‘Finally, the NTT DOMOCO gave up its move that made the country loser form getting huge amount of foreign investment.’
Now, the operators have started lobbying again for changing the auction process and make the unsold block free for all.
Meanwhile, Banglalink, Robi and Grameenphone threatened that they would not take part in the auction if the process was not changed.
In the wake of their threat, the regulator has shifted the auction date to September 8 from September 2. The deadline of application submission has also been extended to August 12, which was scheduled to end on August 1.
According to BTRC auction process, participants who bid for 10 MHz spectrum will be allowed for bidding for the unsold spectrum. The participant who bids for 5MHz will not be eligible for bidding the unsold block, it said.
The operators have stood against the auction procedure, as it would put an end to any possible syndication.
‘The operators are in a syndication to manipulate the 3G auction which will not be possible if the present auction procedure method prevails,’ the officials added.
The BTRC decided to award three licences to three out of five mobile phone companies operating in the country and one to a foreign firm. Another local operator, the state-run Teletalk, has already got the 3G licence by default.
A total of 40 MHz of spectrum will be auctioned for eight blocks where a single bidder can bid for maximum two blocks.
The minimum allocation for a spectrum block is 5 MHz with base price of $20 million for each MHz.
-With BSS/New Age input
