Robi-Airtel merger would cost new entity over Tk 700cr in fees

The merger of Robi and Airtel could cost the new operator more than Tk 700 crore in spectrum charges and merger fees.

The new entity will have to pay over Tk 500 crore in fees for using Airtel's existing spectrum in the 1800 band, according to the proposal of Bangladesh Telecommunication Regulatory Commission sent to the telecom ministry yesterday.

Besides, it will have to pay Tk 200 crore in merger and other fees, said an official of the commission, adding that the proposal was made as per the telecom laws of the country.

However, the new entity might choose not to retain the entire spectrum, the official said. The proposals are seeking additional payments to adjust the spectrum prices with those in 2011.

Airtel bought 15 MHz spectrum in the 1800 band for 15 years in 2005 at Tk 340 crore, which means it paid Tk 1.51 crore per MHz per year.

However, Robi and other operators paid Tk 150 crore for 15 years for their spectrum in 2011, which means on average Tk 10 crore per MHz per year.

Robi and Airtel opened talks on a possible merger at the end of August last year, and on January 28, the operators' parent companies signed a deal to that effect. If merged, the entity will be the second largest operator in Bangladesh.

As of March, Robi has 2.75 crore active SIMs, while Airtel has 1.02 crore. Market leader Grameenphone has 5.62 crore active users and Banglalink 3.19 crore.