Bangladesh: Same spectrum; different prices

Posted on August 15, 2011  /  0 Comments

When I wrote the op ed that was published in Daily Star yesterday, I did not know the anti-competitive “Market Competition Factor” had been decided. Today’s Daily Star gives the numbers. Looks unusually good for Citycell that not only pays 1/5th the price per MHz that Grameenphone pays but can also make do with less frequencies because it is a CDMA operator.

According to the definition of the MCF prescribed by the telecom ministry, if an operator has more than 20 percent market share, it will have to pay additionally, while an operator with less than 20 percent share will pay at a reduced rate.

The MCF for Grameenphone now stands at 1.48, Banglalink 1.06, Robi 0.99 and Citycell 0.30.

These numbers will be multiplied by the per megahertz price of Tk 150 crore and the total amount of spectrum used by each operator.

So Grameenphone, which is using 14.6 Mhz, will pay Tk 3,241 crore.

Thus Banglalink (with 12.4 Mhz) will pay Tk 1,971 crore, Robi (with 12.8 Mhz) Tk 1,900 crore, and Citycell (with 10 Mhz) Tk 450 crore.

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