India's neighbors prepare 3G auctions
Bangladesh and Pakistan to allow foreign bidders to participate in spectrum sales next year
Published: 28 November, 2011
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India's 3G dawn has been significant overshadowed by wireless telecoms scandals and new accusations that major cellcos are colluding to prevent customers taking their phone number elsewhere, despite the introduction of number portability. But while the disputes rumble on, the country's closest neighbors, Bangladesh and Pakistan, are both gearing up for their own 3G sales as demand for wireless internet access rises.
A 3G auction will be held in June 2012, said the Bangladesh Telecommunications Regulatory Commission (BTRC). Two consultancies - PriceWaterhouseCoopers and Nera Economic Consulting - have been selected for conducting the auction. Overseas bidders will be allowed to participate, and if a new entrant wins a 3G licence, the BTRC will also consider issuing it with an additional 2G concession.
Mirroring India's policy of giving struggling state-owned operators a headstart, Bangladesh's Teletalk will be allowed to start launching W-CDMA services in the 2.1GHz band from March 26 2012, with a six-month exclusivity period ending in September, but it will also be required to pay for commercial spectrum in the June auction. However, as with India's BSNL and MTNL, Teletalk will not need to compete, but will be guaranteed its spectrum allocation at a cost equivalent to the highest bid.
The state carrier is only fifth in the market, and all its four larger GSM rivals - GrameenPhone, Robi, Banglalink and Airtel - are expected to bid. There is also one CDMA operator, CityCell.
Meanwhile, Pakistan's prime minister has given approval in principle to the rules for the upcoming 3G auction, which will allow foreign bidders. Initially, the regulator will put up three 10MHz blocks of spectrum for sale, which is likely to be held in mid-2012, though any winners will not be able to start commercial services until after March 2013, when a moratorium on the issue of new telecoms licences lapses.
The government also plans to auction off the defunct licence once owned by Instaphone, whose franchise was revoked in 2008 for alleged failure to pay outstanding fees.
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