The telecom regulator has started forming two separate guidelines for selling unused spectrum bands – 1,800MHz and 2,100MHz, which will be allocated through an auction to existing mobile phone operators by March next year.
Around 4,000 crore is expected to be earned by the government from the spectrum sale.
The regulator has in selling list 10.6 unused or unsold bandwidth in 1,800MHz which will be used for 2G services and 15 in 2,100MHz for fastest 3G data services, sources said.
“We have decided to allocate this spectrum bands, consulting with the cellphone operators and they are very much interested about it,” ATM Monirul Alam, commissioner (spectrum) of BTRC, told the Dhaka Tribune recently.
He said before going for an auction, formulation of two separate guidelines is underway considering the 3G spectrum auction and 2G renewal guidelines as the base.
“Before taking final decision, we need government approval of the guidelines and the auction’s floor price and also its procedure,” the commissioner added.
The regulator had earlier planned to release 700MHz band next year for 4G technology, but later backtracked as the environment was not yet ready for 4G.
For a long term evaluation service, spectrum band, 700MHz, is a faster data transfer technology than 3G.
Monirul said the operators are not interested about the 700band now since equipment for 4G are not cost-effective.
Recently in a meeting, top management of the mobile operators asked the regulator not to go for the release of 4G spectrum within next two years.
The management also asked for technological neutrality for 900, 1,800 and 2,100 bands, which will help the mobile phone companies to offer cost-effective service with less investment.
The commissioner also said they will divide 10.6MHz into two slots and only two cellphone operators can have it through an auction.
It will help the operators deliver better voice services, added Monirul.
In 2011, the government renewed the 2G licences and reallocated the spectrums of the four private mobile operators – Grameenphone, Banglalink, Robi and Citycell – for 15 years; and at that time spectrum prices were fixed for Tk150 crore per MHz in terms of market factor.
Earlier in 2008, the regulator allocated additional spectrum to three mobile operators, Grameenphone, Banglalink and Robi, through an administrative process; the price for each MHz bandwidth for 18 years was Tk80 crore per MHz.
The regulator had then offered 17.5 MHz spectrum in the 1,800 band, but the three operators purchased 12MHz.
Last year, the government raised Tk4,081 crore ($525 million) with 5% vat by selling 25MHz (each MHz sold at $21 million) of the 40MHz spectrums in the 2,100MHz band through an auction.
Grameenphone purchased 10MHz while three other private operators Banglalink, Robi and Airtel 5MHz each for 15 years.
State-owned Teletalk purchased 10MHz bandwidth, but it is yet to pay.
This time BTRC is going to allocate the rest or the 15MHz to the three blocks, each with 5MHz.
The telecom watchdog in its revenue-earning plan for 2014-15 fiscal fixed Tk9,300 crore from spectrum sale.
Since BTRC shifts its plan for 700 band, major earning of the regulator depends on 25.6MHz in 1,800 and 2,100 bands.
About this, the BTRC commissioner said auction floor price may start form the allocated prices of the last sale.
