January 15 :  The new band frequency fixed for the 4G service will be distributed on the basis of multi-round auction.

Nepal Telecommunication Authority (NTA)  which  fixed the base price  in band frequency of 700 and  2,600 band a few weeks ago has prepared necessary modality for three phase auction for its distribution.

NTA has fixed Rs. 13.5 million per megahertz in the 700 band and Rs 5.5 million as base price in the 2600 MHz.  “The authority has already sent to the Ministry of Information and Communications (MoIC) for approval by preparing a comprehensive modality on frequency auction,” said Bijaya Kumar Roy, Deputy Director of NTA.

NTA has prepared to move ahead the distribution process on the basis of auction of the new band once the Radio Frequency Policy Fixation Committee chaired by the Minister for Information and Communications approves the modality.

The modality has proposed for appointing a separate administrator team for the auction of frequency.  It has an open provision to appoint in the administrative team for the time being from among the authority or from outside. There will be three packages of 15 MHz each in the 700 band.

Likewise, in the 2600 band, there will be two of 25 MHz each, one of 20 MHz and three packages of 15 MHz (unpaired) by allocating the guard band in the same band. 

There will be competition between service provider with licenses of the existing mobile and the basic telephone service for the  auction in  each of the  packages of both the bands.  The auction starting in the fixed base price will be completed in the third round. The base price of another round will be fixed on the basis of the maximum price of one round for the tender. The modality has a provision that the base price should be more than 5 percent while bidding in each round.  “The company which bids the highest in the final round will receive the fixed frequency in both the bands,” informed Roy.

This will be the first frequency auction in Nepal’s telecommunication history. The state-owned Nepal Telecom will receive one package of frequency from both bands by paying the fixed price determined by the auction. In other packages, all the telecommunications services providers who have not taken any license will also be competing in the second round of the auction.

Although the Nepal Telecom has started the LTE and 4G services in operation which is of the fourth generation in the 1800 band with the permission of NTA, other service providers have also been doing necessary homework for the same. 

Although the service has started, the frequency of the band is not sufficient for extending it and maintaining high quality.  There is no alternative to using the new 700 and 2600 bands for enough frequency of the 4G service.