CAAB seeks share in mobile operators’ airport revenue

Mobile phone operators are surprised by the Civil Aviation Authority of Bangladesh (CAAB)’s decision to install mobile networks at the newly built third terminal of Hazrat Shahjalal International Airport.

CAAB has asked mobile operators to participate in a tender. The operator offering the highest financial bid will be allowed to set up the network in the terminal. That operator will also be responsible for ensuring the network access of the other operators. The selected operator will have to pay a large security deposit, rent, and share revenue with CAAB.

In response to this unusual situation, the operators have sought help from the Bangladesh Telecommunication Regulatory Commission (BTRC).

Taimur Rahman, Chief Corporate and Regulatory Affairs Officer of Banglalink, said, "Despite several attempts, mobile operators have still not been able to establish telecom services at the third terminal. Even after submitting designs and proposals earlier, CAAB did not take any effective action."

He said, "Recently, CAAB has asked for competitive financial proposals from the operators to set up telecom services in the terminal—something never seen before in the country. Surprisingly, various conditions about technology and devices were imposed without any consultation with the concerned operators. Along with that came an unrealistically high security deposit and revenue-sharing conditions with CAAB."

He also said, "As per the law, mobile operators already pay a large amount to the government treasury based on revenue-sharing agreements. In this situation, such extra conditions imposed by another government agency have become a major barrier to ensuring telecom services at the third terminal on time."

"In this worrying situation, mobile operators have sought help from BTRC. Such actions, which are beyond legal boundaries, will not only delay telecom installation at the third terminal but may also create complications with other agencies in the future—which is concerning," he added.

Shahed Alam, Chief Corporate and Regulatory Officer at Robi Axiata Limited said, "We have never seen such a strange proposal. We are shocked. Robi has already informed the regulatory body BTRC about their concern."

Faiz Ahmed Taiyeb, Special Assistant to the Chief Adviser of the Ministry of Posts, Telecommunications and Information 
Technology, said, "CAAB cannot take revenue sharing from mobile operators. Reasonable guidance was given earlier involving BTRC and other stakeholders for installing mobile networks in the third terminal."

CAAB’s Conditions:
Under financial terms, the selected mobile operator must show proof of sufficient liquid assets. They must propose to pay CAAB increasing amounts each year during the agreement. The initial contract will be for five years and may be extended by another ten years based on satisfactory performance. The operator has to submit a detailed financial plan including in-building active Distributed Antenna System (DAS) coverage, new services, and other rental details. They must also deposit a security amount of BDT 30 million.

For DAS coverage across different airport areas, the operator must propose a monthly rent per square meter. The key areas are: 230,000 square meters for third terminal in-building coverage, 36,000 square meters for ECT coverage, 27,000 square meters for ICT coverage, and 54,000 square meters for multi-storey car parking.

The conditions say that income from allowing other operators to connect, from using terminal infrastructure for digital services, and from other sources, must be shared with CAAB.

Under technical terms, the operator must install and maintain the DAS system at its own cost and ensure uninterrupted and strong network coverage. The operator must have experience in building-based mobile network deployment. The proposed system must support multiple spectrum bands, various radio technologies, and massive MIMO (Multiple Input, Multiple Output). It must serve all mobile operators in the country and help provide continuous service to others. It should be ready for future 5G use, safe from cybersecurity threats, and safe for the environment, animals, and human health. There must be a joint monitoring and control system accessible to all operators.

The operator must obtain all necessary approvals and bear the costs. All customs duties and VAT on imported equipment, and expenses for civil, electrical, and mechanical work during setup, will be paid by the operator, for which CAAB’s permission will be needed. The operator will also be responsible for cable connections, power supply, and other required services.