Tashi Group - Second mobile license in Bhutan

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In November 2006, Bhutan Infocomm and Media Authority (BICMA) awarded the second nationwide cellular service license to Bhutan’s Tashi Group. The license allowed Tashi Group to build, own and operate a cellular network in Bhutan for 15 years. This new license was expected to create a competitive telecommunications market in Bhutan by ending the monopoly of state owned Bhutan Telecom (B-mobile). Tashi Group won the license with the highest bid (US $ 17.15 million or Ngultrum 777 million) in an international competitive tender conducted by BICMA. Tashi Group was required to pay 25% of its bid (US$ 4.3 million) up front, with the remainder to be paid throughout their operating tenure. There were three other bidders competing for the license, namely – (1) a joint venture (JV) of Bhutan’s Singye Group and India’s Reliance Group (2) JV of Bhutan’s Druktel and India’s Bharti Group and (3) JV of Bhutan Steel and Shin Satellite Public Corporation Limited of Thailand. Foreign companies were eligible to participate in the tender only through joint ventures with local companies and with the additional requirement that the Bhutanese partner of any joint venture must hold an equity share of at least 51 per cent. Tashi Group was required to finish the paperwork and make the up front payment (25 % of the bid for the license) by December 15, 2006. Operations were launched in April 2008.