BTRC lowers cap for spectrum acquisition

The Bangladesh Telecommunication Regulatory Commission (BTRC) has revised its rules for the upcoming 700-megahertz (MHz) band auction, reducing the maximum spectrum a single operator can acquire from 15MHz to 10MHz.

The change comes less than two weeks after the regulator amended the auction guidelines to allow one operator to acquire up to 15MHz. The original auction guidelines did not set a clear maximum acquisition limit.

"We suspect that only one operator might participate in the auction. If there is a single bidder, that operator could acquire a significant amount of spectrum without competition," said Md Emdad Ul Bari, chairman of the BTRC.

"To protect the interests of smaller operators and ensure fair competition, we have introduced this change," he added.

Earlier, the country's largest mobile operator, Grameenphone, and the second-largest, Robi Axiata, applied to take part in the auction scheduled for January 14. However, Robi has requested a one-month extension of the timeline. Banglalink, the third-largest operator, and state-owned Teletalk have not yet applied.

"We welcome the regulator's decision to reduce the spectrum acquisition limit, as it will prevent any operator from hoarding spectrum," said Shahed Alam, chief corporate and regulatory affairs officer of Robi Axiata.

The auction faces another complication as 20MHz of the 700MHz band remains tied up in a long-running legal dispute.

In 2007, the BTRC allocated 12MHz of the band to broadband service provider Always On Network Bangladesh Ltd before the frequency was approved for mobile services, leaving a significant portion currently unavailable for auction.

Meanwhile, the government has approved a 10 percent reduction in the base price of the 700MHz band. The base price is now set at Tk 237 crore per MHz for a 15-year licence period, down from Tk 263 crore per MHz. Despite the cut, mobile operators say the spectrum remains expensive and above global benchmark rates.