5G auction on March 31

The telecom regulator is set to hold the spectrum auction for fifth-generation (5G) connectivity on March 31 as the government looks to roll out the service by this year. 

Mobile phone operators will have to submit an application by March 14 to take part in the auction, according to the Instruction Radio Frequency Auction 2022 issued by the Bangladesh Telecommunication Regulatory Commission (BTRC).

The regulator will award 60 MHz spectrum in six blocks from 2.3 GHz (2300-2400 MHz) bands and 120 MHz spectrum in 12 blocks from 2.6 GHz (2500-2690 MHz) bands through the open auction.

The base price for per MHz is $6 million for both bands. An operator has to pay Tk 10 crore as bid earnest money and Tk 15 lakh as application processing fees.

According to the instruction, operators have to launch 5G services within six months from the date of the auction.

"After the auction, the private operators will launch 5G across the country," said Subrata Roy Maitra, vice chairman of the BTRC.

The rollout of 5G has been part of the current government's election manifesto in 2018. In December, it introduced the service through state-run Teletalk in six areas of the country.

However, operators don't seem to be happy with the decision of holding the auction on such short notice and the price set for the spectrum.

Shahed Alam, chief corporate and regulatory officer of Robi Axiata Ltd, says they are yet to receive the 5G guideline.

"In this backdrop, it is quite undesirable to expect that we will make such an important investment decision in almost no time and that too without even having a look at the 5G guideline. We, therefore, urge the commission to share the guideline and then allow sufficient time to prepare for the auction process."

With regards to the spectrum price, Alam says 5G auction should not be treated in the same manner as 2G, 3G or 4G spectrum.

"In order to launch viable 5G service, we need huge amount of spectrum. Given the proposed auction rate, it would be impossible to acquire the amount of spectrum we need to introduce 5G in an effective manner."

Ankit Sureka, head of corporate communications and sustainability at Banglalink, said: "We believe that the proposed auction date is not practical, as many preparatory activities are required to participate in a spectrum auction."

"We are getting fewer than 20 working days to take preparation. At least six months are needed to prepare for it."

The operator invested around Tk 1,000 crore to buy spectrum last year.

"We are investing heavily to roll out our network and expand our coverage to utilise that spectrum," said Sureka.

"We hope the BTRC will take these factors into account and will take acceptable measures based on the feasibility of the procedure."

Hossain Sadat, acting chief corporate affairs officer of Grameenphone, said they were in the process of reviewing the auction guideline.

"However, we would like to have consultations with the regulator to address certain concerns and find the best solutions to move forward."

Asked about the operators' dissatisfaction, Maitra said the government has taken the decision and it wants to roll out 5G now.

"Besides, it's not true that they have got very little time."