CAAB eyes revenue sharing from mobile operators

New Trend at Airports: Wi-Fi nodes The Daily Star (2009) Date: 2009 The Daily Star: The meeting was held yesterday between the mobile phone companies and the Civil Aviation Authority of Bangladesh, sources said. The introduction of the new cell tower Guidelines would be extended to all airports and satellite towns in Dhaka where the mobile companies installed the towers.” Open source two. CAAB had informed the authorities that it was keen to engage a third party for setting up and running telecom infrastructure in its area. This shift could have a major impact on how mobile services are deployed in these areas.

The development comes at a time of increasing pressure on the authorities for having better coverage and network support in the airports, especially in the case of international gateways like Hazrat Shahjalal International Airport in Dhaka, Shah Amanat International Airport in Chattogram and Osmani International Airport in Sylhet.

Third-Party Kit: Change of Tack

Instead of giving direct access to mobile operators to build their infrastructure at airports, CAAB is said to be considering a solution whereby an independent third-party infrastructure provider constructs the required network facilities. Operators would then rent capacity from this provider to meet the needs of passengers, staff, and other stakeholders at these major transportation centres.

Experts said, this model could ensure an approach to infrastructure deployment with a more coordinated approach and thus a tighter regulatory oversight within these highly securitised zones.

“This is a global best practice, especially for sensitive and high-Density areas,” a senior executive with one of the country’s mobile operators said. “How this succeeds will be down to how transparent they are on the third-party provider and precisely what this is going to cost the operators.”

Revenue Sharing Emerges as Key Contention

CAAB has raised the question of revenue sharing from the Mobile Operators side by side managing the infrastructure. While exact details were unclear at the meeting, it suggests CAAB is interested in a cut of the revenues generated by telcos at the airport, potentially via way of leases, licences, or usage-based payments.

Operators have yet to publicly respond to the suggestion, though sources warn that such demands would need to be weighed against commitments to the Bangladesh Telecommunication Regulatory Commission (BTRC), not to mention the desire to ensure rates and quality of service comparative to, and competitive with, other players in the market.

A Way Forward: The Balance of Regulation and Service

In the continuing discussions, there have been demands for inclusive and extensive resolution of these challenges. Actions have been proposed at a meeting which can be seen below which advises CABB to consult with BTRC to reduce unnecessary regulatory doubling up and keep the original end game in focus, seamless, quality mobile coverage for travellers and those who work at the airport.

“The aviation and telecom industries are equally important from security and nation interest standpoint,” said an industry expert. “Finding a solution that puts passengers first, respects regulatory limits and creates a fair revenue share will be essential.”

The plan is in the initial stages, and more meetings are over the next several months to keep refining the plan and determine rules and financial terms. For now, the industry is watching carefully as CAAB makes its first forays into reshaping digital connectivity in the satellite hubs of Bangladesh.

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