Yesterday, there was a significant announcement in Bangladesh: Robi and Airtel announced they were discussing a merger that could result in the creation of two more or less equal sized competitors to the market leader, Grameenphone. Here is my full response: This is what I said in response to a question about the number of operators in a market four years back. The market should determine the number of suppliers in a market, not government officials. This requires two things: (1) an orderly policy on market exit, whereby, for example, suppliers have clear rules on what can be done about the assigned spectrum, existing customers, and so on; and (2) transparent license and renewal procedures that allow for as many licenses to be issued as possible within the constraints of spectrum. These principles are as valid today as they were then.
Adrenaline didn’t flow in Bangladesh 3G auction today. It could be anything but auction when four bidders show up for four licenses. Bangladesh government has priced US$20 million per Megahertz for 40 MHz of spectrum in 2100 MHz band. It is in addition to 10 MHz spectrum being assigned to state-owned Teletalk. Theoretically, Grameenphone (Telenor), Banglalink (Vimpelcom), Robi (Axiata) and Airtel (Bharti Airtel) could have had at least 10 MHz each.