Bangladesh modifies 3G licence regime in order to offer additional licences

The Bangladesh regulator has decided to revamp the planned 3G spectrum allocations in a move that could see more than one foreign company able to secure a licence.

The current draft guidelines would allow one new foreign entrant into the market, but the regulator has decided to split the 50MHz of spectrum into 10 blocks of 5MHz instead of the planned five blocks of 10MHz.

The plan had been to award four licences to incumbent operators, and reserve one for a new entrant. The new plans would allow more new entrants into the market, but also could allow all six existing operators to secure a 3G licence.

Abubakar Siddique, secretary in charge of post and telecommunication said that "the new slot of spectrum would not only help the small operators commercially, but it also paves the way for more foreign operators who are keen to invest here."

He confirmed that the incumbent 2G network operators had consented to the changes.

State owned Teletalk is already offering 3G services, but will be required to pay for its existing licence based on the eventual outcome of the 3G auction.

The auction is due to be held in March.