Robi questions pre-election 700MHz spectrum auction

The planned auction of the 700MHz spectrum has prompted fresh debate in Bangladesh's telecom sector, with Robi Axiata questioning whether the process should go ahead before the national election.

Speaking to the media today (18 December), Robi CEO Ziad Shatara said the upcoming election, following a major political change, has created a transitional environment that is not ideal for major investment commitments.

He said the January auction date places operators in a position where they would need to make substantial financial decisions amid political uncertainty.

According to Shatara, investors generally seek clarity and stability before committing capital, and the current situation has encouraged many to take a cautious approach.

He said investment conditions would likely improve after the election if the process results in a stable and long-term government.

Shatara also said Robi invested Tk2,000 crore this year to ensure better services for its customers, underlining the operator's ongoing commitment to the market.

However, he said future investment depends on predictable and consistent regulatory policies.

Addressing regulatory concerns, Robi Axiata Chief Corporate Affairs Officer Sahed Alam said changes to telecom licensing rules were made without adequately reviewing the 2018 guidelines.

He said operators are required to allocate nearly one-third of their annual spending to technology development, creating operational pressure.

Sahed Alam said overlapping and frequently changing policies have created uncertainty for investors and slowed decision-making.

He added that the restriction allowing a maximum of 85% foreign ownership could further increase investment risk in the telecom sector.