Is the wait for better mobile service getting longer?

Lower-frequency spectrum is important for improving mobile network service quality in rural and remote areas.

To this end, the Bangladesh Telecommunication Regulatory Commission (BTRC) has taken an initiative to allocate spectrum in the ‘E-GSM’ band.

Although the BTRC decided to auction the spectrum following applications from mobile operators Robi and Banglalink, Banglalink has now changed its position.

The operator has requested that the auction be postponed until the telecommunications policy is finalised. Robi, on the other hand, says the auction should be held now to improve service quality.

Mobile phone signals travel through radio waves. They can be compared to the light from a torch. Just as the light from some torches travels farther while the light from others spreads only over a shorter distance, the same principle applies to mobile networks.

The frequencies currently used by operators are capable of providing high-speed internet, but they cannot easily penetrate walls, roofs and other obstacles. As a result, signals can become weak inside buildings even when a tower is nearby.

According to telecommunications experts, the advantage of lower-band frequencies is that they can travel relatively farther and penetrate buildings more effectively. This is why many countries around the world give such frequencies particular importance for improving rural coverage.

Following applications from Robi and Banglalink, a technical committee of the BTRC recommended the E-GSM band. In June, the commission decided to allocate extra lower-band spectrum to mobile operators. The ‘Extended GSM’, or E-GSM, band in the 880 to 888.4 megahertz and 925 to 933.4 megahertz ranges was selected for this purpose.

At the time, BTRC Chairman Major General (retd) Md Emdad Ul Bari told Prothom Alo that the commission was waiting for the government’s decision on the price of the spectrum. Once a decision was received, the auction could be held within one to one and a half months, he said.

However, Banglalink has now requested that the auction be postponed. In a letter sent to the BTRC on 21 September, Banglalink said the government was currently working to finalise the telecommunications policy.

The new policy would set out long-term directions for connectivity, digital inclusion, spectrum management, investment and the telecommunications sector. Therefore, taking major decisions on spectrum allocation, renewal, pricing and tenure before the policy is finalised could create inconsistencies with the future policy, it said.

Asked about the matter, Banglalink Chief Corporate and Regulatory Affairs Officer Taimur Rahman told Prothom Alo that Banglalink supports the effective use of E-GSM spectrum to improve coverage and customer experience.

However, spectrum renewal is due in November, while the telecommunications policy is in the process of being finalised. It may include various important issues, including spectrum sharing and mobile virtual network operators (MVNOs). In this context, he said, it would be more logical to make any decision on allocating new spectrum in line with the final policy.

Following Banglalink, Robi also sent a letter to the BTRC on 24 September. In the letter, it said E-GSM spectrum needed to be made available and allocated quickly to ensure high-quality mobile services and meet growing customer demand.

Robi’s letter also said there was no direct requirement for the allocation of E-GSM spectrum to be tied to the finalisation of the telecommunications policy.

Robi Chief Corporate and Regulatory Officer Shahed Alam told Prothom Alo that demand for spectrum may vary from one operator to another. If an operator does not want to acquire spectrum, that is its choice. However, Robi needs spectrum to improve service quality for its customers. “That is why we have requested the BTRC to allocate it,” he said.

According to BTRC figures, Bangladesh has more than 190 million mobile phone subscribers. Four operators, including state-owned Teletalk, provide mobile services. Grameenphone has the largest number of subscribers, at 87.2 million. Robi is in second place with around 60 million subscribers, while Banglalink has more than 37.9 million subscribers.

Grameenphone launched spectrum in the 700MHz band in June to improve service quality in remote areas. Robi and Banglalink had sought E-GSM spectrum from the BTRC at the time.

Last Thursday, the BTRC sent a letter to the Posts and Telecommunications Division seeking approval to finalise the base prices for spectrum in the E-GSM band. The BTRC said in the letter that the base price for 3.4MHz of spectrum with lower interference had been set at Tk 2.14 billion per megahertz, while the base price for 5MHz with higher interference had been set at Tk 1.78 billion per megahertz. These prices will apply for 15 years.

Earlier, the BTRC had also written to the Telecommunications Division seeking final approval of the base prices for E-GSM spectrum. However, at the time, the division did not give any clear opinion or decision on the spectrum prices. As a result, the regulator has once again sent the matter to the Telecommunications Division for approval, this time specifying the prices.

Asked about the matter, BTRC Chairman Major General (retd) Md Emdad Ul Bari told Prothom Alo that there was no connection between the telecommunications policy and the spectrum auction. The BTRC has sought the ministry’s approval for the base prices of the spectrum. Once approval is received, the spectrum auction will be organised, he said.