Telecom operator Robi Axiata has withdrawn its name from the upcoming auction of the 700-megahertz (MHz) spectrum, leaving market leader Grameenphone as the only participating operator.
Robi confirmed the decision in a statement to The Daily Star following queries about its intentions regarding the auction.
"Following a comprehensive technical and strategic review, we have decided to withdraw our application to participate in the current 700 MHz spectrum auction," said Shahed Alam, chief corporate and regulatory affairs officer at Robi.
"The 700 MHz band remains a strategically important asset for the future evolution of our network. However, based on our current network priorities, deployment roadmap, and market conditions, the timing of this auction does not align with our immediate operational requirements," he said.
Major General (Retd) Md Emdad ul Bari, chairman of Bangladesh Telecommunication Regulatory Commission (BTRC), confirmed the development.
He said the BTRC will go ahead with the plan, as preparations for the auction have been ongoing since 2024.
He added that Robi requested spectrum from a separate band, and the BTRC may consider it.
Earlier, the country's largest mobile operator, Grameenphone, and the second-largest, Robi Axiata, applied to participate in the auction scheduled for January 21.
However, Robi requested a one-month extension of the auction timeline.
Banglalink, the third-largest operator, and state-owned Teletalk have not applied to take part in the auction.
Sensing that only one operator could take part in the auction, the BTRC revised its rules, reducing the maximum spectrum acquisition limit for a single operator to 10 MHz from 15 MHz.
"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," the BTRC chairman told The Daily Star on January 6.
"To preserve the interests of smaller operators and ensure fair competition, we have introduced this change," he added.
The complications surrounding the 700 MHz band are not limited to participation or pricing, as 20 MHz of the spectrum remains tied up in a long-running legal dispute.
In 2007, the BTRC allocated 12 MHz 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 700 MHz 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.
Tanveer Mohammad, chief corporate affairs officer of Grameenphone, said, "GP is committed to delivering the best possible experience to its customers. Low-band spectrum plays a vital role in improving network quality and coverage, which leads to overall customer satisfaction."
However, GP currently holds a limited amount of low-band spectrum considering its large subscriber base, he added.
"As our customers increasingly embrace a digital lifestyle, the necessity for more low-band spectrum becomes imperative. To meet their evolving needs and enhance their overall experience, we must prioritise securing additional low-band spectrum."
To address this challenge, GP explored options in the 850 MHz band in 2023 and completed a Proof of Concept in 2024. Unfortunately, external factors prevented further progress, Mohammad said.
"Subsequently, BTRC initiated the process of awarding spectrum in the 700 MHz band through an auction. Although the spectrum price remains high, GP has decided to secure spectrum in the 700 MHz band through this process, as delivering a better customer experience is our top priority."
Source: https://www.thedailystar.net/business/news/robi-wont-take-part-spectrum-auction-4075811
