ASIA-PACIFIC TELECOMMUNITY Document: SATRC Workshop on Spectrum Management SAPVII-WSSPEC/ INP-21 18 – 20 December 2019, Goa, India 18 December 2019 Bangladesh Telecommunication Regulatory Commission Spectrum licensing and pricing practices in Bangladesh Contact: Lt. Col. Mohammod Faisol Email: dirsm@btrc.gov.bd Director, Spectrum Division, BTRC
Bangladesh Telecommunication Regulatory Commission Spectrum Licensing and Pricing Practices in Bangladesh Lt Col Mohammod Faisol Director Spectrum Division Bangladesh Telecommunication Regulatory Commission (BTRC) 1
Bangladesh Telecommunication Regulatory Commission Aim To provide a comprehensive idea on spectrum licensing and pricing practices in Bangladesh 2
Bangladesh Telecommunication Regulatory Commission Sequence Telecommunication in Bangladesh : At a Glance History of Spectrum Assignment Existing Spectrum Licensing and Pricing Practices Few Milestones in Spectrum Assignment 5G in Bangladesh 3
Bangladesh Telecommunication Regulatory Commission Telecommunication in Bangladesh: At a Glance 4
Bangladesh Telecommunication Regulatory Commission Telecommunication in Bangladesh: At a Glance Telecommunication sector in Bangladesh have been developed rapidly in terms of coverage, variety and quality. The telecommunication services are growing continuously. People are using technologies for their business and personal communications even in the deep rural areas. The socio-economic impacts of communication services are evident. 5 Cont…
Bangladesh Telecommunication Regulatory Commission Telecommunication in Bangladesh: At a Glance The Government is quite sensitive to peoples’ aspiration and adopts a customer sensitive policy of providing quality services at affordable prices. Bangladesh has successfully brought the appropriate technologies to it’s people at reasonable prices. 6
Bangladesh Telecommunication Regulatory Commission Cellular Mobile Services 1993-1997 2000 2002 2004 At present 64 Districts 3 Districts 30 Districts 50 Districts 61 Districts 7
Bangladesh Telecommunication Regulatory Commission Telecommunication Indicators 160 Million 98 Million 10th Largest Active Mobile Internet Mobile Market Subscriber Subscriber 57th Country 8.13% GDP 73 Million to Launch Own Growth in Mobile Satellite 2018-2019 Banking User 6.2% GDP 2nd Largest 5G Trial Contribution Supplier of Conducted in by Telecom Online 2018 Sector Workers 8
Bangladesh Telecommunication Regulatory Commission History of Spectrum Assignment 9
Bangladesh Telecommunication Regulatory Commission Spectrum Assignment Milestones 2018 ( 10.6 MHz from 1800 MHz and 5 MHz from 2100 MHz Band ) 2013 ( 25 MHz for 3G ) 2008 (12 MHz spectrum to 2011 (2G License GP, ROBI and BL) Renewed) 2003-2004 2005 (15 MHz, GSM Bands to (Additional 24.8 MHz, GSM ) Warid Telecom Ltd (Airtel)) 1993-1G (PBTL) 1996 -2G (GP, AKTEL, SHEBA) CDMA GSM 10
Bangladesh Telecommunication Regulatory Commission Existing Spectrum Licensing and Pricing Practices 11
Bangladesh Telecommunication Regulatory Commission Methodology of Charging for Access to Spectrum A ‘Rate List’ is available for most services outlining Radio Frequency Charges, with four main components covering frequency, power output, station/terminal charge and a license fee A ‘Formula’ based approach for calculating spectrum access fee for cellular mobile, broadband wireless access and PSTN operators In some cases there are other one-off charges associated with the issue of new licenses Applicants must pay a fee for the Application Form currently 500 Taka (USD 6 approx) and Application Processing Fee of 5000 Taka (USD 60 approx) is also payable at the time of submission of application 12
Bangladesh Telecommunication Regulatory Commission Rate List Frequency Charge: Depends upon the amount of frequency used, the band and the nature of the service Power Output Charge: Is a separate charge based on the power of transmitters (varies according to the band as well) Radio Station/ Terminal Charge: For certain types of equipment, in addition to or instead of the above charges License Fee: Amount of 100 Taka = USD 1.2 approx Cont… 13
Bangladesh Telecommunication Regulatory Commission Rate List The system is a bit difficult to understand, particularly the liability for each type of category License Frequency Fee Charge Administrative Spectrum Fee Fee (as in ITU (as in ITU Terminology) Terminology) Station/ Power Terminal Output Charge Charge 14
Bangladesh Telecommunication Regulatory Commission Services Charged According to Rate List Service Name Exemption Television Broadcasting Frequency Charge, Power Output Charge Sound Broadcasting Frequency Charge, Power Output Charge (FM/AM) Aeronautical Frequency Charge, Power Output Charge LMR/PMR No Exemptions Maritime Frequency Charge, Power Output Charge Amateur Frequency Charge, Power Output Charge, Station Charge V-SAT Frequency Charge, Power Output Charge 15
Bangladesh Telecommunication Regulatory Commission Formula Based Approach Spectrum Charges in Taka = STU x CF x BW x AF x BF Where, STU is the Spectrum Tariff Unit, Currently set at 70 Taka (Less than a dollar) CF is the Contribution Factor, Varies With the subscriber base of the operator(the more the subscribers, the higher the CF) BW is the assigned Bandwidth in MHz AF is the Area Factor BF is the Band Factor, which varies according to the band of the service in question 16
Bangladesh Telecommunication Regulatory Commission Other Fees Category Charge Annual License Fixed Fees (e.g BDT 50 M for cellular mobile operators) Fees Revenue Applicable to mobile operators (5.5% of Annual Audited Sharing Gross Revenue) and BWA Operators (exempted for the 1 st Year, 2% of Annual Audited Gross Revenue in the 2 nd year, and 4% in each subsequent year). Social 3G Operators also required to pay 1% of Annual Audited Obligation Fund Gross Revenue to fund telecom infrastructure in underprivileged areas. 17
Bangladesh Telecommunication Regulatory Commission Few Landmarks in Spectrum Assignment 18
Bangladesh Telecommunication Regulatory Commission Auction, 2008 WiMax license was given to Baglalion and Qubee with the cost of BDT 215 Crore Taka. Banglalion was awarded with 35 MHz from 2.5 GHz Band. Qubee was awarded with 35 MHz from 2.3 GHz Band 19
Bangladesh Telecommunication Regulatory Commission Auction, 2013 The opening bid price was 20 million USD. A total of 8 blocks of 5 MHz (paired spectrum) each were put up for auction. Each bidder was eligible to purchase a maximum of 2 blocks. The license was awarded at the winning auction price of 21 million USD per/MHz. 5 blocks of spectrum were sold among four bidders (GP = 10 MHz, ROBI = 5 MHz, BL = 5 MHz, AIRTEL = 5 MHz). 20
Bangladesh Telecommunication Regulatory Commission Auction, 2018 The opening bid price was 30 million USD for 900 & 1800 MHz bands and 27 million USD for 2100 MHz band. A total of 46.4 MHz (paired spectrum) were put up for auction. Each bidder was eligible to purchase a maximum of 33.4 MHz. The license was awarded at the winning auction price of 31 million USD per/MHz for 1800 MHz and 28 million USD for 2100 MHz band. 10.6 MHz from 1800 MHz and 5 MHz from 2100 MHz were sold among two bidders (GP awarded 5 MHz & BL awarded 5.6 MHz from 1800 MHz band, and only BL awarded 5.00 from 2100 MHz 21 band).
Bangladesh Telecommunication Regulatory Commission 5G in Bangladesh 22
Bangladesh Telecommunication Regulatory Commission 5G Readiness Trial on 5G Network conducted on 25 July 2018 Committee is formed for drafting Policy, Guidelines and Directives Draft Roadmap of 5G is already prepared by BTRC 23
Bangladesh Telecommunication Regulatory Commission 5G Spectrum for Bangladesh Globally Harmonized by ITU 5G Candidate Bands: 2500-2690 MHz (190 MHz) 3300-3700 MHz (400 MHz) 26 GHz, 28 GHz, 32 GHz, 38 GHz, 40 GHz and 43 GHz Cont… 24
Bangladesh Telecommunication Regulatory Commission 5G Spectrum for Bangladesh Spectrum Release Plan Price of Spectrum Spectrum Awarding Procedure 25
Bangladesh Telecommunication Regulatory Commission 26
Bangladesh Telecommunication Regulatory Commission 27
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