3G auction Sunday

Auction for the allocation of licenses for the third generation (3G) mobile phone service spectrum will be held at 11am on Sunday at Ruposhi Bangla Hotel. Four mobile phone operators will take part in the auction.

Staff Correspondentbdnews24.com
Published : 7 Sept 2013, 05:44 PM
Updated : 8 Sept 2013, 05:37 AM

Vice Chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC) Giasuddin Ahmed told bdnews24.com on Saturday night that all preparations have been completed for the auction. Even a mock auction was conducted on Saturday by BRTC to check its preparedness.

As no new operator has applied for the license, according to the policy the existing four eligible private operators participating in the auctions will get the license.

These operators are Grameenphone, Robi, Banglalink and Airtel.

The spectrum fees per MHz has been fixed at $20 million. 40 MHz spectrum of 2100 band has been allotted for auction. BTRC is hoping that government will earn more than TK 60 billion, if it could auction 40MHz spectrum.

The BTRC will start the auction with a price of $21 million per MHz. If more than one operator agrees to the price, then it will give a fresh call.

In every call, the prices per MHz will go up by $1million.

The highest bidder in the auction could opt for as much spectrum as it likes. Others will be allowed to purchase up to 10 MHz. This way, if the four bidders among them procure the entire 40 MHz spectrum, the auction process will end there.

Otherwise, there will be second round of auction for a block of 5 MHz. If some spectrum is left unsold even after then second round of auction, then any operators could bid for it, but in that case also preferences will be given to the highest bidders that is those who have procured 10 MHz.

Four local private mobile operators deposited earnest money on Aug 29 to take part in the bidding.

State-owned Teletalk is currently providing 3G services on an experimental basis.

It will not have to take part in the auction, but will have to obtain the licence by paying the same amount the private operators would pay to get 3G spectrum.

The licence will be valid for 15 years.