Komashisha
Bangladesh Telecommunication Regulatory Commission (BTRC) is working on to give licenses to two new companies to build and manage passive network infrastructure of all Mobile Network Operators (MNO) as independent entities in order to check the spread of mobile towers.
The decision came after taking in consideration the inefficiency of the existing policy under which mobile operators build and maintain towers on their own. As mobile operators now set up and maintain towers separately, it takes a lot of land resources of the country to set up towers. And with the number of mobile subscribers increasing at a high rate, the number of towers is going up further taking up more resources. It is also putting a negative impact on the environment through a rise in radio-frequency radiation emitted by mobile tower antennas.
The telecom regulator believes that if only two companies manage towers of all mobile operators it will help MNOs reduce their expenditure, save resources and minimize environmental effect.
In order to make it happen, BTRC, in the draft guideline bars mobile network operators and WIMAX companies from applying for the license. The draft tower guideline is currently waiting for approval at the telecommunications ministry. Once the guideline is approved, BTRC will hold an auction to award license to two independent companies.
According to the draft guideline, any Mobile Network Operator (CDMA/GSM) or Broadband Wireless Access (BWA) Operators or any subsidized/owned/shareholder companies of MNOs and BWA or any person in the board of director of those companies shall not be eligible to apply for license.
The guideline also requires that Bangladeshi companies apply for license. Any local entity is eligible to apply for the license, and they may have NBR or foreign entity as partners. A partnership/consortium of NRB or a foreign entity without Bangladeshi partner is not eligible to apply for the license. The guideline also clearly states that in case of foreign entity applying together with Bangladeshi partner, the foreign entity is limited to maximum 49 % percent shares. The foreign partner shall invest in foreign currency directly without taking any loan or financial assistance from Bangladeshi bank, financial institution and leasing company.
This clauses aim to ensure the growth of local companies in this sector, and create a cost-effective and competitive platform of local entities as well as bring transparency and accountability.
As the government is patronizing local companies in other sectors, giving license to local entities will ensure that the government earns revenue and the money stays in Bangladesh.
At present there are around 29,400 mobile towers of all six operators: Grameenphone, Robi, Banglalink, Airtel, Teletalk and Citycell. In Dhaka alone, there are over 10,000 mobile towers, while the rest are spread across the country.
The bigger the number of the towers, the higher is electricity and land consumption that leads to increased investment and operational expenditure of the operators, and occupies more land adding to the existing land scarcity in Bangladesh.
In developed counties mobile operators share their towers rather than setting up separately. But in Bangladesh, despite BTRC’s efforts, the infrastructure-sharing agreements between operates could not bring optimum result. Hence comes the decision to give licenses to individual companies, which is a win-win situation for both government and mobile operators.
When the job of setting up and maintaining mobile towers will be done by a third party, operating under BTRC guideline, it will ease the operators extra efforts of construction and maintaining towers. It will also help them focus more on the quality of services.
Bangladesh has too many towers, and many new towers are popping out with the increase in the number of users. Once the guideline is approved as it is, it will result in optimum use of land, power, and human resources, as well save environment and arable lands as the new companies will do it efficiently making optimum use of resources. The government will also benefit from the licensing fees and tax the companies will pay.
