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Spectrum fees, licences under one umbrella soon

Single formula for mobile operators
Hasan Arif
30 Jan 2022 00:00:00 | Update: 30 Jan 2022 04:02:10
Spectrum fees, licences under one umbrella soon

The telecom regulator will bring uniformity to annual spectrum fees for mobile operators and consolidate the licences of all mobile technology generations.

Currently, the existing 2-G, 3-G and 4-G mobile services have separate licences, each with different formulas for paying annual spectrum fees.

“This is causing additional difficulties. Therefore, a single formula is being made for a unified generation by consolidating the licences of all mobile technologies,” according to Posts, Telecommunications and Information Technology Minister Mustafa Jabbar.

“The new move aims to bring all technology generations under one umbrella, curb hassles of mobile operators, and stave off separate annual spectrum fees.”

According to Bangladesh Telecommunications Regulatory Commission, the integrated system that will combine the three existing separate formulas will not reduce the annual charges currently paid by the mobile operators.

On the contrary, along with the spectrum allocation and its subscriptions, annual charge will go up, leading to the rise of the government revenue.

Quizzed, Mustafa Jabbar told The Business Post now there are three different formulas. 5-G technology will make way within a few days. For this a different formula has to be made again.

“So without making repetitive formulas for all technologies, a uniform policy in this regard is being made. It will leave no impact on revenue. Moreover, if 5-G technology is introduced, there will be no 3-G and 4-G technology,” said Jabbar.

“However, 2-G technology will remain. This technology will never end.”

Spectrum allocated for mobile operators are technically neutral. The technological neutrality helps calculate annual spectrum charges for 2G, 3G and 4G licences and subscriptions by the consumers separately.

The proposed integrated formula for all mobile operators is subject to government approval. At the same time it will be added to the proposed integrated cellular mobile phone service licences as well.

In this regard, Mustafa Jabbar said, “It has not been decided yet what the annual charge or fee of the spectrum will be. The decision will come after a consolidated formula has been made.”

Telecom and Spectrum expert Mushfiqur Rahman, also director of Bangladesh Association of Software and Information Services, told The Business Post that the integration of spectrum fees and licences would be an advantage for the government while it won’t be so for the mobile operators that might run into some troubles.

“Since the mobile network of all technology generations is not available in all parts of the country evenly, operators use their cell phone technology based on which generation of customers use which network more,” he added.

“But if integrated, all players have to use the same technology in all areas which will shoot up their cost.”

The expert, however, thinks that it will not leave any impact on the subscribers as there are multiple operators struggling to retain their customers.

According to sources, the finance ministry’s approval has been sought for the formulation of a unified policy. The commission’s proposal will be effective only after the approval of the finance department.

The government approved the renewal of 2-G cellular mobile licence in 2011, 3-G in 2013 and 4-G cellular mobile phone service licences in 2018.

These guidelines include formulas related to spectrum charges separately.

The licences for 2G, 3G and 4G cellular mobile phone services have been issued for mobile operators as per the approved guidelines.

 

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