VEON subsidiary Banglalink successfully acquires 9.4MHz in spectrum auction

Rhea-AI Summary

VEON Ltd. announced that its subsidiary, Banglalink, has successfully acquired 4.4MHz in the 1800MHz band and 5MHz in the 2100MHz band, raising its total spectrum holding from 30.6MHz to 40MHz. This acquisition, made at an auction held on March 8, 2021, is valued at approximately BDT1,000 crore (around USD115 million), marking one of the largest investments in Bangladesh’s telecommunications sector in recent years. The additional spectrum is expected to enhance Banglalink’s network capabilities and support its expansion of nationwide 4G services.

Positive

• Banglalink increases its total spectrum from 30.6MHz to 40MHz, enhancing its competitive position in Bangladesh.
• Investment of approximately USD115 million signifies confidence in Banglalink's growth and market position.
• Acquisition expected to boost network capabilities and support nationwide 4G expansion.

Negative

• None.

AMSTERDAM, March 10, 2021 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON) (Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, announces that its operating company in Bangladesh, Banglalink, has acquired 4.4MHz spectrum in the 1800MHz band and 5MHz spectrum in 2100MHz band following successful bids at an auction held by the Bangladesh Telecommunication Regulatory Commission on 8 March 2021. The newly acquired spectrum will see Banglalink increase its total spectrum holding from 30.6MHz to 40MHz, enabling it to retain the leading position among all private operators in Bangladesh in terms of spectrum provided per subscriber. Banglalink will invest approximately BDT1,000 crore (USD115m¹) to purchase the spectrum, which is one of the largest investments made by an operator in the country in recent times. The increased spectrum holding is expected to enable Banglalink to maintain network superiority and bolster its efforts for nationwide 4G expansion.

Erik Aas, Banglalink's Chief Executive Officer, said: "Banglalink's acquisition of this additional spectrum is yet another landmark in our endeavour to serve our customers as a digital service provider. With the Ookla® certified fastest mobile network in the country for the year 2020, we continue to be focused on performance and have made significant improvements in key indicators such as market share, data revenue and data customer base. The spectrum we are acquiring today will help us capitalize on this success and we expect it to further increase customer satisfaction."

¹Based on 84.94 USD/BDT

Disclaimer

This release contains "forward-looking statements", as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, expectations regarding the benefits of our ongoing investment in spectrum in Bangladesh. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.

About VEON

VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and internet services.  For more information visit: www.veon.com.

Contact Information
VEON
Investor Relations
Nik Kershaw
ir@veon.com
+31 20 79 77 200

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SOURCE VEON Ltd

FAQ

What spectrum did VEON's subsidiary Banglalink acquire?

Banglalink acquired 4.4MHz in the 1800MHz band and 5MHz in the 2100MHz band.

How much was the investment for the spectrum acquisition by VEON's Banglalink?

The total investment for the spectrum acquisition was approximately USD115 million.

When was the spectrum auction held for Banglalink?

The spectrum auction was held on March 8, 2021.

What will the new spectrum allow Banglalink to do?

The new spectrum will enhance Banglalink's network capabilities and help in expanding 4G services nationwide.

What is the strategic importance of this spectrum acquisition for VEON?

The acquisition strengthens Banglalink's market position and supports its plans for network expansion in Bangladesh.