Among costliest globally, Bangladesh's spectrum renewal to put telco investment to test

Infograph: TBS

When 28-year-old ride-sharing driver Aminul Islam tops up his mobile phone with Tk150-200 a week, he does not think about spectrum renewal fees, VAT, or government revenue targets. He only knows that mobile data feels increasingly expensive and connections regularly stutter during peak hours, all while his daily earnings remain flat.

"Every month, the data packages seem to offer fewer gigabytes for the same price," Aminul said. "If the connection drops while I am navigating a customer, it directly hits my income. We hear about technology upgrades, but on the streets, speed and reliability still lag."

Aminul's frustration captures the human cost of a broader industry conflict. Three private mobile operators are due to renew a combined 79.2MHz of spectrum in November. While the renewal could generate thousands of crore taka for state coffers, it will force operators to commit vast sums merely to retain the frequencies they already use.

The timing could not be more critical. Mobile operators argue that Bangladesh's spectrum prices, among the highest regionally and globally, leave little room for network expansion and technology upgrades, with smaller firms hit hardest. The government, however, views spectrum as a scarce public asset and a reliable source of non-tax revenue.

Tanveer Mohammad, chief corporate affairs officer at Grameenphone, stressed that a balanced, transparent, and investment-friendly framework is essential. While the regulator acknowledges concerns raised by international bodies such as the GSM Association (GSMA) over elevated costs, it maintains that setting the right price requires careful calibration.

700MHz auction exposes pricing dilemma

The tension intensified after the January 2026 auction of 700MHz spectrum.

The BTRC had put 20MHz on the block. Grameenphone acquired 10MHz at the base price of Tk237 crore per MHz, paying Tk2,370 crore in total. Robi Axiata and Banglalink did not participate, citing concerns over the auction and overpricing.

The remaining 10MHz was subsequently allocated to state-owned Teletalk at the same Tk237 crore-per-MHz rate, despite the operator's outstanding spectrum and other liabilities. The move has raised questions among private operators about competitive neutrality.

Lieutenant Colonel (retd) Mohammad Zulfikar, secretary general of the Association of Mobile Telecom Operators of Bangladesh (AMTOB), said the upcoming round of spectrum renewal is much bigger, and that will be difficult for operators to absorb.

He urged BTRC to establish evidence-based global benchmarks to protect network viability.

Price tag versus network expansion

According to BTRC data, mobile operators currently utilise 463MHz of spectrum nationwide, including 406.6 MHz core bands, and 57.0 MHz specialised extensions.

Grameenphone currently holds 137.4MHz for 84.4 million users, Robi 124MHz for 57.4 million users, and Banglalink 80MHz for 37.4 million users. State-owned Teletalk holds 65.2MHz, serving approximately 6.8 million subscribers.

Of the 79.2MHz due for renewal in November, Grameenphone must renew 32.4MHz, Robi 22.4MHz and Banglalink 24.4MHz.

Operators argue that spectrum fees directly affect the amount of capital available for base transceiver station (BTS) expansion, network modernisation and fibreisation – which includes investing in network infrastructure as well as boosting capacity and speed providing the strong backhaul support needed for heavy data demands, 5G rollouts, and low-latency connections.

An industry valuation benchmark analysis indicates that local spectrum prices are four to six times higher than in Nordic markets when adjusted for market size and structure.

Shahed Alam, chief corporate and regulatory officer at Robi, added that they have managed surging data demand despite operating with tight spectrum limits over the past 15 years.

Bangladesh's spectrum costs stand out regionally

Bangladesh's headline spectrum prices are substantially higher than those in several South and Southeast Asian markets, although direct comparisons are complicated by differences in frequency bands, auction design, licence duration and payment terms.

Bangladesh priced 2.3GHz and 2.6GHz spectrum at around $6 million per MHz in its 2022 auction. By comparison, India's 3.3GHz band was priced at around $1.8-2.1 million per MHz, while Pakistan priced 2.3GHz and 2.6GHz spectrum at around $1-1.25 million. Indonesia and Sri Lanka have also reported lower prices for selected bands.

More importantly, spectrum costs are high relative to Bangladeshi operators' revenues.

According to GSMA Intelligence, spectrum fees account for around 16% of operators' recurring revenue in Bangladesh, versus 10% in Asia-Pacific and 8% globally. Including other levies and taxes, the broader fiscal burden rises to about 55% of market revenue.

The GSMA represents mobile operators and mobile ecosystem companies, while its research arm, GSMA Intelligence, analyses telecom markets, spectrum, investment and connectivity.

A separate GSMA analysis found spectrum cost-to-revenue ratios across Asia-Pacific rose from 3% in 2014 to 9% in 2023. A 10-percentage-point increase was associated with a 6-percentage-point decline in coverage, and an 8-percentage-point drop in network speeds.

While the relationship does not establish causation, the findings highlight why spectrum pricing has become an investment issue, not simply a source of government revenue.

Govt's revenue imperative

Tax and finance officials point out that non-tax revenues from spectrum auctions and renewals form part of the government's domestic resource mobilisation efforts.

Bangladesh is currently working under a medium-term target to raise its overall revenue-to-GDP ratio from less than 8% towards 10.7% by FY29.

"Spectrum is a finite national resource belonging to the public," said an NBR official from the National Board of Revenue (NBR), on condition of anonymity. 

"While we acknowledge the industry's need for capital, the government faces pressing demands to fund public infrastructure, health, and social protection programmes," he said.

The official added that spectrum fee payment structures in Bangladesh already offer deferred instalment options, mitigating upfront liquidity pressures for well-capitalised firms.

BTRC searches for the 'sweet spot'

BTRC Chairman Major General (retd) Md Emdad Ul Bari said the GSM Association has flagged high licensing costs, but determining the right price requires careful calibration.

"Yes, the price is high, but this is a matter of perception," he said. "While lower prices could boost investment and indirect tax, the government still needs predictable direct returns."

To bridge the gap, the BTRC has formed a committee to review spectrum pricing and renewal terms. "New empirical studies will guide future decisions rather than legacy auction rates."

Rehan Asif Asad, the prime minister's adviser on Post, Telecommunications and IT, said, "Our objective will be to ensure that operators can invest more and build better networks."

Taimur Rahman, chief corporate and regulatory affairs officer at Banglalink, welcomed the review of spectrum policies by independent consultants, expressing hope for an outcome grounded in regional benchmarks.

Risk of leaving spectrum unused

Analysts warn that pricing spectrum beyond the market's capacity to absorb it could leave valuable bands such as 1500MHz, 3500MHz and millimetre-wave frequencies unused.

Former interim ICT adviser Faiz Ahmed Taiyeb said allocation policies should prioritise service coverage over short-term revenue. "If bands with lower market demand remain unused for a long time, allocating them at a reasonable price can be more beneficial."

The GSMA's research similarly finds that spectrum pricing and assignment mechanisms can affect operators' ability to invest in network coverage and quality. 

Its Bangladesh study says aligning spectrum costs more closely with regional benchmarks could improve network investment viability and accelerate 5G deployment.