BTRC to auction 700MHz spectrum in January 2026; base price set at Tk237cr per MHz

Bangladesh is set for its first-ever auction of the 700MHz band, a move expected to significantly strengthen nationwide mobile coverage and accelerate future 5G expansion.

The Bangladesh Telecommunication Regulatory Commission (BTRC) today (27 November) published the Instructions for Radio Frequency Auction 2026, confirming that 25MHz of spectrum will be auctioned on 14 January 2026. 

The 700MHz band, valued globally for its long-range coverage and strong indoor penetration, has long been considered essential for boosting 4G quality and preparing for widespread 5G adoption.

According to BTRC, the auction will offer five blocks of 5MHz each through an open-outcry process. Another 20MHz could be added if demand warrants. Each 5MHz block carries a reserve price of Tk1,185 crore for a 15-year tenure, though operators will ultimately pay a prorated amount for about 13 years, as all mobile licences expire in March 2039.

Participation will be restricted to the country's four existing operators — Grameenphone, Robi, Banglalink, and Teletalk. In the first round, no operator may buy more than two blocks. Any unsold spectrum will then be offered in a second round, where operators may acquire one additional block. Bidding will increase in increments of Tk2.5 crore per MHz.

Winning bidders must pay 10% of the total amount within 30 days, with the remainder spread over nine annual instalments. Each participant must deposit Tk100 crore in earnest money and pay a non-refundable application fee of Tk15 lakh.

The auction timeline is tight. Queries must be submitted by 10 December, followed by a pre-bid meeting on 11 December. Applications are due on 21 December, the list of qualified bidders will be published on 24 December, earnest money must be deposited by 8 January, and the auction will take place on 14 January.

Two decades of delays and disputes

The move comes after nearly 20 years of controversy surrounding the 700MHz band. In 2007, BTRC mistakenly allocated 12MHz of this highly valuable spectrum—at a nominal fee—to small ISP Always On Network Bangladesh Ltd (AONB), at a time when the band's global importance was not yet fully recognised.

As mobile broadband evolved, international bodies — including the ITU — reclassified the 700MHz band for LTE and 5G use. By 2015, the 694–790MHz range had become part of a harmonised global IMT band plan.

Recognising the strategic value, BTRC revoked AONB's allocation in 2014. A lengthy court battle ensued, and in 2023 the High Court ruled the cancellation unlawful. AONB has since sought compensation of up to Tk1,800 crore. The BTRC has appealed, and the matter now awaits a final verdict in the Appellate Division. As a result, around 20MHz of the band remains tied up in litigation and cannot be auctioned at present.

'A turning point' for telecom sector

Faiz Ahmad Taiyeb, special assistant to the chief adviser on posts, telecom and ICT, told The Business Standard that the decision marks a long-awaited breakthrough. 

He noted that the new base price, Tk237 crore per MHz, values the full band at more than Tk11,000 crore.

"For years, international organisations including the GSMA have accused Bangladesh of having the highest spectrum prices in the world," he said. 

Taiyeb further said, "We reduced prices by about 30% this time to address that concern. The hope is that operators will reinvest the savings in equipment and network expansion."

He added that Bangladesh is aligning with the global shift away from revenue-maximizing auctions and toward service-driven models.

He went on to say that the regulator is now focusing on freeing and utilising other unused bands to improve both coverage and capacity in the telecom sector.

High stakes for operators

Often called the "digital dividend," the 700MHz band can cover areas roughly four times larger than 1,800MHz using the same number of towers, making it critical for improving service quality in underserved regions. Operators have repeatedly warned that shortages of sub-1 GHz spectrum are a major constraint on network performance.

Industry experts anticipate strong bidding, particularly from Grameenphone and Robi. If all 25MHz sells at the reserve price, the government stands to earn about Tk5,925 crore, with potential for much more if bidding intensifies.

Unsold blocks may later be assigned administratively at the discovered market price or reauctioned within a year.

With the auction guidelines now public, operators have a clear window to shape their bidding strategies. The coming weeks will determine whether this long-delayed auction finally unlocks the promise of nationwide, affordable high-quality mobile broadband.