TRC spectrum allocation questioned
The Regulator of Telecommunication Industry of Sri Lanka just attracts trouble. For a second consecutive time, a mobile operator is preparing to file action against the Telecommunications Regulatory Commission (TRC) against propagating unfair practices in giving out certain spectrums to competitors.
This time the TRC has plans to allocate a much sought after spectrum telecommunication frequency – 5 megahertz (MHz) – to Airtel without open competitive bidding.
The operator, who declined to be named, is saying that granting this 5 MHz spectrum which is a part of a really costly 900 MHz (where signals travel more than 8 km) and ‘based’ on an administrative decision isn’t correct and that an opportunity to make a competitive bid was not given.
This 5 MHz was available when Hutchison merged with Etisalat recently. Hutchison and Etisalat each had 7.5 MHz. of the 15 MHz they owned upon merging, Hutch agreed to give away 5 MHz “That was the agreement they had with the TRC,” a source told the Business Times.
TRC in its capacity of being the custodian of valuable and scarce state resources isn’t being ethical as they plan to sell this at a mere Rs. 400 million, a telecom source added. He said this noting that an 18, 000 MHz spectrum (which sends signals 2 km) was auctioned by TRC for Rs. 3.2 billion. “So why wasn’t this auctioned?”
He added that many wanted to know why a competitive bidding process in line with the commitments to “Good Governance” of the Government of Sri Lanka wasn’t followed. “This is a scarce resource and what the TRC plans to do isn’t fair.”
Recently Dialog Axiata PLC filed action against the TRC alleging that a 1,800 4G band used mainly for broadband services to provide Internet which is a much sought after spectrum telecommunication frequency was being allocated to Mobitel.