Vimpelcom's Orascom wins 3G frequencies in Bangladesh
MOSCOW. Sept 9 (Interfax) - Orascom Telecom Holding S.A.E (OTH), which is controlled by Vimpelcom Ltd, has won at auction the license to 3G frequencies in a 5-MHz band in Bangladesh for $110.25 million, the company said in a statement.
The 15-year license will be issued to Banglalink, a wholly owned subsidiary. OTH must pay 60% of the purchase price within a month and the rest within a year.
The company could in future use those frequencies, as well as its existing 2G frequencies, in building LTE networks, given receipt of the relevant additional permits.
Three other operators won frequencies in the auction: Grameen Phone Ltd (two bands of 5 MHz each), Robi Axiata Ltd (5 MHz) and Airtel Bangladesh Ltd (5 MHz).
Receipt of the licenses opens the way to launch of 3G services in Bangladesh, OTH CEO Ahmed Abou Doma is cited in the statement as saying, adding that 3G's high transmission speeds will make it possible to offer innovative services to users.
Banglalink has previously only held license to GSM frequencies, which were extended for an additional 15 years in 2011.
Banglalink had 27.1 million subscribers as of June 2013, or 27.2% of the Bangladesh market. Average monthly revenue per user (ARPU) in the second quarter this year was $1.6, the lowest in Vimpelcom's Africa and Asia segment. Banglalink had $129 million in revenue in the three months. EBITDA was $48 million and the EBITDA margin was 36.8%.