New spectrum auction on March 31
Bangladesh Telecommunications Regulatory Authority (BTRC) is going to auction spectrum on March 31 to activate the fifth generation mobile network services. However, this auction will be much more useful for improving the quality of telecom services than 5G activation. Telecommunications Minister Mostafa Jabbar believes that the spectrum crisis that the operators are in will be cut off a lot through this auction.
The minister informed that, the spectrum price and the base price have already been determined. Some flexibility has been given in the auction. The spectrum we are actually auctioning now has a tremendous advantage. Given the tech neutrality, it has to be used in both 4G and 5G. I am giving such flexibility plus six months roll out time. 9 installments instead of one. It has been given a lot more benefits than before. We are targeting 5G. But it's not just for 5G alone. It can be used both for 5G and 4G.
This time the government is not deliberately auctioning 5G spectrum in the name of 'Radio Frequency Auction-2022', the minister said. He hopes the auction will strengthen the 2G, 3G or even 4G operations.
The minister said that if they do not ensure quality of service, it will not be possible to retain customers. We're not just going to the 5G block. I did not intentionally go to Dedicated 5G. It will take a while for 5G customers to be created or applications to be created. With that time in mind, we set this time. So that they can provide existing quality service. If you want, you can give importance to 5G as well.
The floor price or the base price per MHz spectrum in the auction has been determined as 6 million dollars, which is a little more than 519 million Taka. It has given 6 months spectrum rollout obligation to launch 5G service for spectrum buyers. This time will be counted from the day of auction.
A total of 18 blocks will be auctioned spectrum. Of these, there are 6 blocks at 2.3 GHz or 2300-2400 MHz and 12 blocks at 2.6 GHz or 2500-2690 MHz. Spectrum will be auctioned at 10 MHz per block at 2300-2400 MHz. Even at 2500-2690 MHz, the spectrum will rise to 10 MHz per block.
Bid Ernest Money has been kept at Tk 10 crore in the auction. Which the operators have to submit by March 23. In addition, 10 percent of the spectrum purchase price must be paid to the buyer within 60 days from the date of announcement of the final result of the auction. The remaining 90 percent of the money can be paid in 9 years in equal installments. A preparatory meeting with the operators will be held on March 10.
Asked about the objections of the operators about the auction, Mostafa Jabbar said that preparations have been made for the auction through talks. "We have not taken any unilateral decision," he said. We not only considered the issues they had, but also made sure that they did not cause any inconvenience later. We spoke with Robi Axiata CEO, Telenor's top executives. When we explained the whole thing to them; They would rather thank us for the guideline. I don't think they have anything to object to.
The BTRC informed that the applications for the auction must be submitted by March 14 and the list of eligible participants will be released on March 16. Discussion on auction method and rules will be held on 21st March.
