Bhutan’s telecoms regulator is preparing to begin the auction process for the country’s second national cellular operator, but there are fears that the sale could mean more than just the beginning of competition for current monopolist B-Mobile. Under the auction rules B-Mobile must match the winning bid in order to renew its own licence, which expires next July. The firm, which is wholly owned by state-owned fixed line operator Bhutan Telecom, has so far been leasing wireless spectrum and has not had to pay for its concession, and there are worries that it may struggle to meet the financial demands.

Local news portal Kuensel reports that four companies are interested in operating the new cellco Tashi Group, Singye Group, Druktel and Bhutan Steel. These four will enter sealed bids, the highest of which will become the minimum price for the second round, and this will be conducted as an open auction. In order to try to limit the price of the new 15-year licence, the regulator Bhutan Infocomm Media Authority (BIMA) is requiring bidders to pay at least 51% of the licence fee from their own funds; the remainder can be paid with the help of financial backers. B-Mobile launched in 2003 and, according to TeleGeography’s GlobalComms database, had around 70,000 subscribers at the end of September, giving the country a wireless penetration of around 8%.

Source-  telegeography  Wireless Mobile Telecom