Bhutan calls bids for first private mobile operator

By Biswajyoti Das

GUWAHATI - Bhutan has invited global bids to offer cellular services in the
tiny Himalayan kingdom, throwing open the sector to private participation, a
senior official said.

The landlocked country, which started mobile services in November 2003, has
about 50,000 cellular subscribers now -- more than the 40,000 fixed-line
customers. State-owned Bhutan Telecom Limited is the sole operator.

"We want to create a liberalised and competitive telecommunication
market in Bhutan," Wangay Dorji, a senior official at the Ministry of
Information and Communication told Reuters by phone from Thimphu, the kingdom's
capital.

"We think this is the right time to start a second mobile service
provider."

Foreign bidders can get details about the process from the ministry on June
21. Initial bids have to be submitted by July 5 and final bidding will be on
July 14.

"We understand local companies may not be financially strong to raise
funds for the project so we have decided to allow foreign companies in the joint
venture," Dorji said.

The ministry plans to grant a license to the successful bidder by July 21 for
a period of 15 years.

The private operator can use Bhutan Telecom's infrastructure for a fee until
it builds its own facilities to cover the entire mountainous country.

Presently, half of the mobile subscribers come from Thimphu.

Bhutan, has remained untouched by most modern influences, with a limited
number of foreign visitors allowed each year. Television arrived in 1999 and the
Internet a year later.