Are you satisfied enough about the whole 3G spectrum auction process?
Bose: So far I am happy with the process on how the auction will be held. I can clear you about my satisfaction level after the auction is over.
We see only four operators are bidding against same number of licenses. Do you expect bids will be competitive?
Bose: As we found only four operators, it gives a general impression that there is no competition left. But it will be a miss conception as we have lots of arrangement for creating competition between the operators. We have lots of tools and measures in our hand. I can’t disclose it with you now for the sake of the auction.
Do you think there will be no attempt to syndicate the auction?
Bose: I have already told you that we have lots of tools to create competition here. Unfortunately, it is certain we are dealing such an auction where only four players will fight for same number of licences. It means every applicant will be awarded with licence, but the spectrum allocation left and that will also be decided in the auction.
We have 40 MHz spectrum in 8 blocks to be placed for auction at best. Anyone can take three blocks and it will create competition. At the same time, spectrum allocation will bring enough competition here. So operators would get no chance for syndication.
If anyone takes one block, no doubt that operator will get licence. But I can assure that the company will lose competition while providing services. And when we will launch quality of services code fully, they will fall in trouble definitely.
Though the operators have a chance to launch LTE on 1800 and 900 bands, before that they will have to take permission from us and then the government will take into account the company attitude. The government has the authority to take decision about certain operator.
Can you assure it will be a world standard auction?
Bose: If I tell you anything about it, it would be hypothetical at this moment. We can measure the standard only after the auction.
Now what I can say is that we are ready for the auction with all logistics and we are also trying to maintain our highest standards. It is not necessary to endorse everywhere the global standard. We will do our best with having the limitations.
What would be your objective from the auction?
Bose: From the very beginning, our main objective is to award four licenses to four private operators. We found none in the new operator category. The auction could have been more competitive had there been any new operator.
The first objective is going to be fulfilled – four licenses to four private operators.
And there was a negative point for new operator. If a new operator gets licence, they have to rollout the network and it might be time consuming. Existing operators are ready and they can deploy the 3G easily.
If a new operator takes part, the national exchequer would have got much higher benefit. What do you say?
Bose: It has another side. High price is not always positive. BTRC sold Wi-max spectrum at high price, but after five years we found dissatisfactory network.
Auction price should be like that what is good for the business and operators could rollout their network easily. If the spectrum is sold at much higher price, subscribers will have every chance to be deprived.
In 1997, the government had allocated free spectrum to the operators – the only reason which facilitated Bangladesh to become a strong telecommunication country in the globe.
What are the main challenges you noticed so far the 3G services would face?
Bose: Handsets and contents might be a challenge for 3G. We had talks with different world renowned mobile handsets manufacturing companies and they informed me that lots of quality handsets are already in the market at less than Tk6,000.
We had talks with the operators about the content. The government has also plan for developing more quality contents.
Do you have any plan for controlling 3G packages in terms of speed?
Bose: Operators must ensure internet speed and we will clearly notify them that the internet package must allow a minimum of 1 Mbps speed. Already we declared broadband speed of 1 Mbps. In 3G, everybody should maintain it and we will define the speed of both voice and data.
BTRC sketched a roadmap for 3G and announced to hold the auction in 2009. But it is in fact taking place in 2013. Is it late enough?
Bose: I think, we are on perfect time for 3G and we are also permitting the operators to go for 4G/LTE. If BTRC made the auction in 2008 or 2009, my assumption is that it would have been much earlier as compared to our market. Our market was not ready then. In last two years, we found increased number of internet users. And the success of 3G mostly depends on the internet users and the speed, not in video calls.
Do you have any plan to support the operators from SoF fund for network rollout?
Bose: The Social Obligation Fund is the operators’ contribution and we have already collected Tk2.8bn. If operators’ urge the commission, we can consider. There is a problem to help them from this fund in deploying their networks in the rural areas.