The two Russian telecom partners - Bangladesh Internet Exchange Ltd (BIEL) and New Generation Graphics Limited (NGGL) - are now trying to merge their spectrum, which is not allowed under the law.
BIEL and NGGL operate under a common brand name “Ollo.”
They jointly wrote to the telecom regulator asking for a no objection certificate (NoC) for the merger.
The regulator immediately sent the proposal to the government for approval. It’s under the government’s scrutiny now.
“To become a strong competitor in the country’s wireless internet market and build a wider network making available the latest technology to people, we have sought merger of spectrum,” said a joint statement of the two ISP providers.
“BIEL-NGGL issue is very sensitive for us. That’s why we do not make any comment on their merger and have sent it to the government for approval,” a BTRC commissioner said requesting anonymity.
BTRC said according to its legal consultancy firm the merger could be done.
“Now the ball is in the government’s court. They have to decide about it.”
BIEL managing director Yulua Akstyutina is currently not in the country while none from the company wanted to make any comment.
According to the Telecom Act, a licence issued or the right of allotted frequency or of usage under the section4 of article 55 is not transferable.
In a meeting, BTRC cited the section and the proposal was sent to their legal firm Lex Council for opinion.
Lex Council recommended the proposal to be approved.
A senior official of the regulator said: “BTRC has taken a policy. When there will be a matter which could be against the law, the regulator straightly forward its legal firm and seek opinion.”
Barrister Aneek R Haque, a former legal consultant of BTRC, told the Dhaka Tribune that if BTRC allows a company to merge spectrum with another one, it would not be lawful and could be challenged in court.
“You can’t do everything with the power of your muscles,” he said.
Both of the Russian firms came to Bangladesh in early 2010 and bought two different internet service providers (ISP) BIEL and NGGL with seven megahertz spectrum each on 3.5 band.
Soon after the purchase, the two entities BIEL and NGGL jointly launched Wi-Max service in the country under the brand name “Ollo” without taking licences.
It was challenged in the court.
BIEL recently took Wi-Max licence for Tk246.71 crore with 20 megahertz spectrum with FDD support, though the market price would be not less than Tk3,200 crore.
FDD-supported spectrum is the most valuable spectrum which can also deliver quality voice with data service.
Earlier in 2011, the NGGL also received 20 megahertz spectrum from 800 bands without any charge.
With the huge spectrum taken at different times, the two firms have become now what the market insiders say the “spectrum mughol” of the country.
Mobile phone operators bought the spectrum at Tk150 crore per megahertz in 2011.
The operators also received spectrum from 2,100 bands for 3G service at a cost of $21mper megahertz.
