Reasonable Spectrum Prices Would Raise Investment and Improve Service Quality: VEON CEO Kaan Terzioglu in Dhaka
If spectrum prices are affordable and reasonable, investment in the telecom sector will increase; this will improve the quality of mobile internet service on the one hand and add momentum to the country's overall economy on the other. Top officials of global digital operator VEON therefore called for spectrum to be considered a driver of economic growth rather than a source of government revenue.
They made the remarks at the VEON Board Press Meet held at a hotel in the capital on Tuesday. VEON held its board meeting in Bangladesh for the first time; on the occasion, its Bangladeshi arm Banglalink organised the press conference. After the board meeting, a discussion and question-and-answer session was held with journalists.
At the press conference, VEON Group Chief Executive Officer (CEO) and board member Kaan Terzioglu said countries advanced in digitalisation such as South Korea, Japan, China, Kazakhstan and Russia charge very little for spectrum use; in some cases they even allow it free of charge. This is because the government is ultimately a major beneficiary of the economic value created through spectrum use; if the telecom sector's income rises, the government also receives more revenue.
Kaan Terzioglu said, 'The goal should be to ensure an abundance of spectrum. If enough spectrum is put to use, service quality will rise, the pace of economic activity will increase and digitalisation will accelerate.'
In Bangladesh, the renewal process is under way for the 900, 1,800 and 2,100 megahertz band spectrum currently held by Grameenphone, Robi and Banglalink. The existing licences to use this spectrum expire on November 10.
On the renewal, Banglalink CEO Johan Buse said spectrum should be considered one of the drivers of raising GDP, or gross domestic product, so its price needs to be affordable. The benefits of investment in this sector are not limited to telecom alone; it also has a positive impact on other sectors of the economy.
Citing Pakistan as an example, Johan Buse said the country has provided opportunities to use adequate spectrum and set a fair price for it; as a result, investment in its telecom sector has increased. Such investment raises government revenue while also creating opportunities for customers to get better service and use new technology.
VEON founder and board chairman Augie K. Fabela also spoke at the event. The programme was conducted by Banglalink's Chief Corporate and Regulatory Affairs Officer Taimur Rahman. VEON board members Andrei Gusev, Sir Brandon Lewis, Duncan Perry and Michelle Soeting were also present.
New features of Banglalink's recent and existing digital services were also highlighted at the press conference. These include the Starlink-powered direct-to-cell service, digital payment platform 'Mukto Pay', entertainment platform 'Toffee', AI-based lifestyle brand 'Rise' and device brand 'Techvan'. Banglalink said it has launched the Starlink-powered direct-to-cell service as the first operator in South Asia. Toffee's monthly active users now number 7 million, and 'Rise' has been brought targeting young people.
