Govt likely to incur big loss for early 4G auction: Experts

Telecommunication and ICT experts suggested the government to abstain from 4G auction in near future keeping the remaining 3G airwave unsold, as it would pave way of incurring huge revenue loss for the country.  They opined the cellular phone operators would be reluctant to buy spectrum in 2100 MHz further, which is now using for 3G services, if auction of the more suitable 700 MHz is taken place immediately. Telecommunication experts Sumon Ahmed Sabir opined that the government should put concentration on the expansion of 3G service in every nook and cranny of Bangladesh so that people living in rural and remote areas could avail it. “Cellular phone operators would not deploy LTE/4G network immediately even they are given the airwave or permission for it now . . . so the government should put its effort on the expansion of 3G coverage before go for LTE/4G,” he said.
Bangladesh held 3G auction in September 2013 where four private cellular phone operators bought 25 MHz airwave at $21 million each from the 50 MHz in 1800 band while state-owned Teletalk was allotted 10 MHz airwave. Now, 15 MHz spectrum, divided into three blocks, is remained unsold.
On the other hand, if the government allows technology neutrality after fulfilling roll-out obligations by the operator, there would no need of 700 MHz. Moreover, if the operators start using 2G frequencies for 4G, huge number of people will have to change mobile handsets due to technological changes, but majority people will not be able to buy new handsets.
Meanwhile, the government has issued LTE/4G license to three BWA operators, as the WiMAX technology what they are used become obsolete in globally. So, now the question is raised that why the auction of 700-band is being limited to only cellular phone operators where as the regulator had kept scope for acquiring license and frequencies for newcomer in 3G auction.
Sumon Ahmed Sabir, who is working as chief strategic officer at fiber@home, said there would be no loss if the government goes slow for LTE/4G. “Government should adopt ad-hoc and long-term policy in a holistic manner to meet the actual need of the country rather for thinking any segment of the total industry,” he added.     
Sumon urged the government to allow the BWA operators more time to cope-up with the new situation. Few officials of the telecom regulator wishing anonymity said the 2100 MHz spectrum which is commonly referred as 3G band is also one of the popular 4G bands in the world. So, the right move would be to sell out all 2100 MHz to operators, and then move ahead with other bands, they added. Besides, the 700 MHz spectrum, the officials said, is not fully available for the auction as it is needed re-farming process to make the airwave full prepared.
Opposing the proposed move of 4G auction, the BWA operators said the cellular phone operators already have significant amount of frequencies and the attempt to have additional frequencies before buying the remaining 3G airwave would be attempt to prevent newcomers from entering the market.  Mustafa Jabber, one of the pioneers of country’s ICT sector, said the government should formulate a policy first prioritizing rural connectivity so that young generation living in rural area could use broadband internet staying at home.
 “No organization or individual should be given any favor ignoring country’s benefit,” he clearly indicated.  Jabber urged the government to create level playing field for all the operators so the people of the country avail the bliss of technology.

 

Govt likely to incur big loss for early 4G auction: Experts

Telecommunication and ICT experts suggested the government to abstain from 4G auction in near future keeping the remaining 3G airwave unsold, as it would pave way of incurring huge revenue loss for the country. They opined the cellular phone operators would be reluctant to buy spectrum in 2100 MHz further, which is now using for 3G services, if auction of the more suitable 700 MHz is taken place immediately. Telecommunication experts Sumon Ahmed Sabir opined that the government should put concentration on the expansion of 3G service in every nook and cranny of Bangladesh so that people living in rural and remote areas could avail it. Cellular phone operators would not deploy LTE/4G network immediately even they are given the airwave or permission for it now . . . so the government should put its effort on the expansion of 3G coverage before go for LTE/4G, he said. Bangladesh held 3G auction in September 2013 where four private cellular phone operators bought 25 MHz airwave at $21 million each from the 50 MHz in 1800 band while state-owned Teletalk was allotted 10 MHz airwave. Now, 15 MHz spectrum, divided into three blocks, is remained unsold. On the other hand, if the government allows technology neutrality after fulfilling roll-out obligations by the operator, there would no need of 700 MHz. Moreover, if the operators start using 2G frequencies for 4G, huge number of people will have to change mobile handsets due to technological changes, but majority people will not be able to buy new handsets. Meanwhile, the government has issued LTE/4G license to three BWA operators, as the WiMAX technology what they are used become obsolete in globally. So, now the question is raised that why the auction of 700-band is being limited to only cellular phone operators where as the regulator had kept scope for acquiring license and frequencies for newcomer in 3G auction. Sumon Ahmed Sabir, who is working as chief strategic officer at fiber@home, said there would be no loss if the government goes slow for LTE/4G. Government should adopt ad-hoc and long-term policy in a holistic manner to meet the actual need of the country rather for thinking any segment of the total industry, he added. Sumon urged the government to allow the BWA operators more time to cope-up with the new situation. Few officials of the telecom regulator wishing anonymity said the 2100 MHz spectrum which is commonly referred as 3G band is also one of the popular 4G bands in the world. So, the right move would be to sell out all 2100 MHz to operators, and then move ahead with other bands, they added. Besides, the 700 MHz spectrum, the officials said, is not fully available for the auction as it is needed re-farming process to make the airwave full prepared. Opposing the proposed move of 4G auction, the BWA operators said the cellular phone operators already have significant amount of frequencies and the attempt to have additional frequencies before buying the remaining 3G airwave would be attempt to prevent newcomers from entering the market. Mustafa Jabber, one of the pioneers of countrys ICT sector, said the government should formulate a policy first prioritizing rural connectivity so that young generation living in rural area could use broadband internet staying at home. No organization or individual should be given any favor ignoring countrys benefit, he clearly indicated. Jabber urged the government to create level playing field for all the operators so the people of the country avail the bliss of technology.