The telecom regulator is determined to arrange the auction for spectrum, an expensive airwave frequency, as per schedule, though the major mobile operators are reluctant to participate in the bidding.
“We are firm to arrange the slated spectrum auction on April 30,” a top official of Bangladesh Telecommunication Regulatory Commission (BTRC) told the FE.
Preferring anonymity, the senior official said they hope that everything will be all right before the schedule. “We have completed necessary groundwork including publication of the guidelines for the auction,” the official noted.
Meanwhile, the major parent bodies of the local telephony firms in a recent letter expressed their ‘inability’ to recommend their local mobile operators for participating in the upcoming auction unless the government settles a number of regulatory affairs.
“We would draw your attention to investors’ ‘inability’ to recommend participation in the coming auction to our operating companies,” they said in the letter signed by president and CEO of the Axiata Group Berhad, President and CEO of Telenor Group Jon Fredrik Baksaas, CEO of Vimpelcom Limited Jo Lunder and Chairman of Bharti Airtel Limited Sunil Mittal.
They demanded improvement of the existing investment framework, positive revision of the telecommunication policy and settlement of the SIM tax disputes before the coming auction.
The organisations also blamed the government for its failure to keep the pledge of previous conditions which were made during the last 3G auction held in 2013.
“As you will recall, operator participation in 2100MHz auction in 2013 was on the basis of certain tax disputes, including SIM replacement and VAT on spectrum and improvement of investment framework and development of spectrum roadmap,” the letter said.
“We regret that we have yet to see resolution of the outstanding taxation issues, a positive revision of the telecommunication policy and improvements in the investment framework to the benefit of consumers,” the letter noted.
The head offices of the local operators also demanded ensuring more predictable regulatory environment for the operators.
“We hope the government will take necessary action to ensure more predictable regulatory environment which is necessary to sustain investor confidence,” the letter said adding the companies expect that immediate concentrated steps will be taken to address the concerns.
“This is required to support our operators in making individual decision on participation in the auction,” it said.
The firms also reiterated their interest to discuss these matters. “Let us again reiterate our commitment to realising Digital Bangladesh, and our readiness to discuss these matters to achieve our common objectives,” they said.
Relating to the letter, the regulator said; “The letter is nothing but to bargain with the government which is usually done by the operators”.
BTRC has already completed groundwork to hold the mega auction for 15MHz and 10.6MHz in the respective slot of 2100MHz and 1800 MHz.
According to the guidelines, the government has fixed US$ 30 million as the base price for per mega hertz in 1800 band and $ 22 million for per mega hertz in 2100 band.
Source: Financial Express
