Spectrum renewal fees finalised, factoring in market shares

30 Aug 2011

Following an announcement from the Prime Minister’s Office earlier this month, the Bangladeshi government has finalised the fees for renewing mobile licences for GrameenPhone (GP), Banglalink, Robi and CityCell, including extra charges based on the respective market shares of the cellcos. As per the earlier announcement, the four companies are liable for a base spectrum allocation fee of BDT1.5 billion (USD19.74 million) for each 1MHz of GSM 1800MHz/900MHz or CDMA 800MHz band wireless spectrum allocated to them via concessions due to expire on 15 November. However, operators with sub-20% market shares will pay a reduced total amount whilst those with a 20%-plus share of the country’s subscribers pay an increased rate for bandwidth. Market leader GP must pay BDT32.41 billion for 14.6MHz, Banglalink BDT19.71 billion for 12.4MHz, Robi BDT19.0 billion for 12.8MHz and the sole CDMA operator, CityCell, BDT4.50 billion for 10MHz. The licences are of 15-year duration and fees are payable in four instalments ending in May 2013. All licensees must also pay a BDT100 million renewal fee and must share 5.5% of revenues with the government, plus an additional 1% of revenues to a Social Obligation Fund designed to assist development of the ICT sector.

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