The telecom regulator has declined to allocate any spectrum to Grameenphone in the 850 MHz band as the competitors opposed the plan citing their risk of signal interferences and deterioration of service quality.
Mobile operators verbally learned about the regulatory decision earlier this week in a meeting with the Bangladesh Telecommunication Regulatory Commission (BTRC), according to officials familiar with the matter.
BTRC decided for an auction to allocate a new spectrum in the 700 MHz band by the middle of this year, its chairman Major General (Rtd) Md Emdad Ul Bari said on Tuesday (21 January).
“We appreciate the fair decision by the telecom regulator as it could have hurt every other operator due to the technical issues,” Robi Axiata Chief Corporate and Regulatory Officer Mohammed Shahedul Alam said in a reaction to the regulator’s decision.
“The 850 MHz band spectrum interferes with the other operators’ radio signals using the existing 900 MHz band spectrum, resulting in poorer services,” Shahedul said citing industry trials.
Spectrum is the radio frequency for transmitting telecommunication data.
According to Shahedul, the $200 million spectrum of some 10 MHz in the 850 MHz band sought by the top operator could have cost the other operators around $100 million for adding filters on thousands of their towers to get rid of the interference.
Also, the filters could reduce the usual coverage area of the operators, he said.
In several meetings with the BTRC over the past few months, telecom operators Robi and Banglalink were requesting for no allocation of the spectrum in 850 MHz band as the industry has already invested in 900 MHz band spectrum as a low-band alternative.
Currently, Robi has the highest 9 MHz 900 MHz band spectrum, followed by Grameenphone’s 7.4 MHz, Banglalink’s 5 MHz and Teletalk’s 5.2 MHz, according to BTRC data.
Grameenphone needs the 850 MHz band the most as it has less spectrum in low bands against its largest user base.
Grameenphone officials, however, argue that the 850 MHZ band can be utilised for superior coverage.
“The low-band spectrum at 850 MHz is a national resource that can be utilised for superior coverage and quality of services across the country,” said Grameenphone Chief Corporate Affairs Officer Tanveer Mohammad.
According to Tanveer, a more low-band spectrum could “help companies strengthen services in densely populated areas” like the southern part of Dhaka as well as the rural areas.
Tanveer also rejected Rejecting Robi’s claim on the filtering cost for the 850 Mhz band.
He said the cost would “actually be a fraction” of what his competitors are saying.
“In more than 50 countries, both 850 MHz and 900 MHz bands are being simultaneously used and Bangladesh can do the same,” he said.
He noted that more than 95% of the 4G handsets in Bangladesh support 850 MHz, while for 700 MHz it is less than 45%.
All other operators, meanwhile, urged the regulator to wait to allocate the 850 MHz band spectrum until all the operators can opt for it at a time with harmony in preparation.