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Bangladesh entered the third generation (3G) era with the holding of the country's biggest auction to roll out advanced mobile services enabling fast spread of mobile internet.
Four telecom operators acquired 25 megahertz spectrum at a cost of $525 million or Tk 40.81 billion through auction process for 3G mobile phone service operation in the country.
Of the 40 megahertz (MHz) spectrum of 2100 band, Grameenphone vied for 10 MHz spectrum, while Robi, Airtel and Banglalink for 5 MHz spectrum each. The rest 15 MHz spectrum has remained unsold. The base price of per MHz spectrum was $20 million and every incremental bid call was set at $1.0 million.
The auction was held in 'electronic bidding system' at the Ruposhi Bangla Hotel at around 11:15am on
Sunday which was open to the media. There were three phases in the auction -- first phase for two-block (10MHz) spectrum, second for one block (5MHz) and third for unsold blocks.
Consultant at the Bangladesh Telecommunication Regulatory Commission (BTRC) Abdullah Ferdous, assigned for the 3G auction, conducted the bidding event in the presence of the telecom minister and some other government high ups.
In the auction, leading telecom player Grameenphone picked 10 MHz spectrum at a price of $21 million per MHz spectrum by participating in the first phase of auction. However, the remaining three operators did not respond in this phase.
Mobile operator Robi responded first at the second phase of the auction for one block, then Airtel and then Banglalink knocked the bid with the same price of $21 million per MHz spectrum. In total, each of the three operators will have to pay $105 million for 5 MHz spectrum.
In the third phase, no operators, not even the Grameenphone that had an option for choosing spectrum, responded for acquiring unsold blocks, leaving 15 MHz spectrum unsold in the hands of the BTRC.
Later, the authority called the bid winners to choose spectrum in chronological order from the eight blocks. In this process, Grameenphone chose block 4 and 5 (1935MHz-1940MHz and 1940MHz-1945MHz), while Robi chose block 7 (1950MHz-1955MHz), Airtel opted for block 6 (1945MHz-1950MHz) and Banglalink for block 8 (1955MHz-1960MHz).
In the auction, state-run telecom operator Teletalk was present as an observer. But the operator that earlier received permission for 3G service will have to pay $210 million for 10 MHz spectrum as an auction price.
According to the 3G guidelines, the operators will have to pay 60 per cent of the total price of spectrum assignment as the first installment within 30 days that is before October 8 and the remaining in the next 180 days.
BTRC chairman Sunil Kanti Bose said the government will take decision later about the unsold block of the spectrum. He expressed hope that the internet penetration will spread across the country rapidly like voice call.
Talking about the growth of the internet, Mr Bose said all predictions will be surpassed after launching 3G mobile phone service. He mentioned that the operators will get 3G licence within a week.
Telecommunication minister Shahara Khatun, secretary Md Abubakar Siddique, BTRC vice-chairman Md Giashuddin Ahmed, BTRC commissioners ATM Monirul Alam, Md Abdus Samad and other officials from the regulatory body were present at the auction.
Chief executive officer (CEO) of Grameenphone Vivek Sood and Banglalink CEO Ziad Shatara expressed their happiness over the auction and hoped that they will launch 3G service soon.
Grameenphone sources said it will commercially launch 3G services in the capital city in October this year. GP will announce its 3G network rollout plan at a press conference today (Monday).
Bangladesh enters 3G era :: Financial Express :: Financial Newspaper of Bangladesh
Four telecom operators acquired 25 megahertz spectrum at a cost of $525 million or Tk 40.81 billion through auction process for 3G mobile phone service operation in the country.
Of the 40 megahertz (MHz) spectrum of 2100 band, Grameenphone vied for 10 MHz spectrum, while Robi, Airtel and Banglalink for 5 MHz spectrum each. The rest 15 MHz spectrum has remained unsold. The base price of per MHz spectrum was $20 million and every incremental bid call was set at $1.0 million.
The auction was held in 'electronic bidding system' at the Ruposhi Bangla Hotel at around 11:15am on
Sunday which was open to the media. There were three phases in the auction -- first phase for two-block (10MHz) spectrum, second for one block (5MHz) and third for unsold blocks.
Consultant at the Bangladesh Telecommunication Regulatory Commission (BTRC) Abdullah Ferdous, assigned for the 3G auction, conducted the bidding event in the presence of the telecom minister and some other government high ups.
In the auction, leading telecom player Grameenphone picked 10 MHz spectrum at a price of $21 million per MHz spectrum by participating in the first phase of auction. However, the remaining three operators did not respond in this phase.
Mobile operator Robi responded first at the second phase of the auction for one block, then Airtel and then Banglalink knocked the bid with the same price of $21 million per MHz spectrum. In total, each of the three operators will have to pay $105 million for 5 MHz spectrum.
In the third phase, no operators, not even the Grameenphone that had an option for choosing spectrum, responded for acquiring unsold blocks, leaving 15 MHz spectrum unsold in the hands of the BTRC.
Later, the authority called the bid winners to choose spectrum in chronological order from the eight blocks. In this process, Grameenphone chose block 4 and 5 (1935MHz-1940MHz and 1940MHz-1945MHz), while Robi chose block 7 (1950MHz-1955MHz), Airtel opted for block 6 (1945MHz-1950MHz) and Banglalink for block 8 (1955MHz-1960MHz).
In the auction, state-run telecom operator Teletalk was present as an observer. But the operator that earlier received permission for 3G service will have to pay $210 million for 10 MHz spectrum as an auction price.
According to the 3G guidelines, the operators will have to pay 60 per cent of the total price of spectrum assignment as the first installment within 30 days that is before October 8 and the remaining in the next 180 days.
BTRC chairman Sunil Kanti Bose said the government will take decision later about the unsold block of the spectrum. He expressed hope that the internet penetration will spread across the country rapidly like voice call.
Talking about the growth of the internet, Mr Bose said all predictions will be surpassed after launching 3G mobile phone service. He mentioned that the operators will get 3G licence within a week.
Telecommunication minister Shahara Khatun, secretary Md Abubakar Siddique, BTRC vice-chairman Md Giashuddin Ahmed, BTRC commissioners ATM Monirul Alam, Md Abdus Samad and other officials from the regulatory body were present at the auction.
Chief executive officer (CEO) of Grameenphone Vivek Sood and Banglalink CEO Ziad Shatara expressed their happiness over the auction and hoped that they will launch 3G service soon.
Grameenphone sources said it will commercially launch 3G services in the capital city in October this year. GP will announce its 3G network rollout plan at a press conference today (Monday).
Bangladesh enters 3G era :: Financial Express :: Financial Newspaper of Bangladesh
