BTRC (Bangladesh Telecommunication Regulatory Commission) has already invited proposals from local and overseas companies to establish a new GSM (Global System for Mobile Communications) mobile phone company in Bangladesh, which has now around 70 lakh cellphone subscribers.

BTRC, the telecoms watchdog, said the main objectives of the new licence are to encourage orderly development of new services; ensure reasonably priced, reliable and modern GSM services; and progressively ensure a market-based environment to maximise the tele-density at affordable prices.

According to BTRC invitation of proposal, only one company either local or foreign with 100 percent own investment or a join venture with Bangladeshi partners having experience in telecommunication for GSM technology will receive the licence.

BTRC sources said the telecoms watchdog is issuing only one licence because of shortage of adequate frequencies. The licence will be issued for an initial period of fifteen years covering the whole Bangladesh, the sources added.

The BTRC invitation of proposal said the existing GSM and CDMA (Code Division Multiple Access) cellular mobile licensees or their shareholders in Bangladesh, either in own name or in association with any other operator, will not be eligible to apply for the new GSM licence.

At present, four private, three GSM and one CDMA, and one state-run operators are offering mobile telecommunication services.

Mobile phone industry insiders said UAE-based Dhabi group will be one of the strong contenders for the licence.

Seeking anonymity, officials of private companies said if the BTRC allows licences one after another, the mobile phone market of Bangladesh will not sustain.

They also said existing operators are facing frequency problems as BTRC has failed to disburse sufficient spectrum among the operators.

Citing an example of Malaysian telecom sector, they said a couple of years ago, five more cellphone companies were given operating licences. But the new companies failed to sustain.