BTRC 'oversight' locks up golden spectrum for 17 years
According to the regulator’s estimates, the country has already forfeited approximately Tk12,700 crore in potential auction revenues and stunted service expansion due to the frequency remaining blocked
A seventeen-year-old "administrative oversight" by the Bangladesh Telecommunication Regulatory Commission (BTRC) has escalated into a legal deadlock, locking up the country's most valuable mobile spectrum and costing the nation billions in lost revenue and delayed 4G/5G expansion.
At the core of the dispute is the coveted 700 MHz mobile spectrum—known globally as the "golden spectrum" for its superior coverage—which the BTRC mistakenly allocated to a small internet service provider (ISP), Always on Network Bangladesh Ltd (AONB), back in 2007.
The allocation was granted for free under a nominal Tk9 crore licence, with officials at the time apparently unaware of the frequency's future strategic importance for mobile broadband.
The costly oversight
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When the BTRC attempted to reclaim the 12 MHz of spectrum—part of a 45 MHz block now designated for modern mobile services—the situation turned into a protracted legal battle. The ISP is now claiming up to Tk1,800 crore in compensation for losses incurred when its allocation was cancelled.
According to the regulator's estimates, the country has already forfeited approximately Tk12,700 crore in potential auction revenues and stunted service expansion due to the frequency remaining blocked.
The conflict has directly impeded nationwide 4G and 5G network expansion. The 700 MHz band is critical for building a broad coverage layer, enabling affordable mobile internet access, particularly in rural and remote regions where current networks struggle to reach. Telecom operators have stated that no one is willing to bid on a partial allocation, meaning the entire 45 MHz block remains unusable until the dispute is resolved.
A legal deadlock
Chief Adviser's Special Assistant on Posts, Telecommunications, and IT, Faiz Ahmad Taiyeb, confirmed the costly error to The Business Standard (TBS).
"The invaluable frequency was allotted to the ISP [AONB] for free by mistake in 2007 under a Tk9 crore licence. The company was not even eligible to receive the allocation."
The BTRC cancelled the spectrum allotment in December 2014, following international recommendations by the International Telecommunication Union (ITU), which began identifying the band for International Mobile Telecommunication (IMT) around 2010.
However, the ISP challenged the decision in the High Court in March 2015. The court ruled in AONB's favour in 2023, deeming the BTRC's cancellation unlawful.
Taiyeb attributed the High Court loss to "poor arguments by its lawyers," adding that the case is now pending in the Appellate Division following a leave-to-appeal order on 31 August 2025.
The company's defence
Managing Director of AONB, Riaz Shahid, defended the company's position, stating they had made significant investments before the BTRC ordered a sudden suspension of services.
"When BTRC allocated the frequency, there were no ITU regulations for the 700 MHz band... However, the same regulation provides protection for companies that had already been allocated spectrum—either to continue the allocation or provide compensation. But BTRC did neither, so we went to court," he told TBS.
The initial compensation claim of Tk800 crore, made in a 2020 letter, has since surged to Tk1,800 crore following the 2023 High Court ruling. Shahid declined to comment on the compensation amount, citing that the matter is sub judice.
The ITU began identifying the 700 MHz band for International Mobile Telecommunication (IMT) around 2010, recommended it in 2012, and finalised a harmonised global framework for the 694–790 MHz band in 2015 to support mobile broadband.
BTRC's allotment letter to AONB shows that the spectrum was handed out for free. However, the letter contained a safeguard allowing cancellation if the band became strategically important.
From oversight to courtroom
In 2007, under a basic ISP license and without any auction fee, the BTRC assigned AONB 12 MHz on both sides within this band. According to BTRC, it had little understanding of the spectrum's potential importance at the time. By 2010, it realised that the allocation was a "mistake" and sought to reclaim it.
In 2010, when BTRC sought to move AONB to another spectrum class, the company refused. Four years later, in December 2014, BTRC cancelled the allocation. AONB challenged the decision in the High Court in March 2015.
The court ruled in the company's favour in 2023, saying the BTRC's cancellation of the spectrum was unlawful. BTRC then appealed to the Appellate Division, and the final verdict remains pending while the spectrum allocation remains blocked due to the dispute.
In an October 2020 letter to the BTRC chairman, AONB MD Riaz Shahid claimed the cancellation caused significant losses to the company and its foreign partners, demanding Tk800 crore in compensation.
The 2023 HC ruling revived the claim, which BTRC says has since surged to Tk1,800 crore.
Declining to comment on the compensation amount, Shahid said that the matter is sub judice.
A global outlier
A BTRC investigation report in 2015 also said, "AONB never built a meaningful network or deployed infrastructure capable of utilising the band. Equipment imported nearly two decades ago is now obsolete."
When asked about the findings, AONB MD Shahid again declined to comment, citing that the matter is sub judice.
Experts said no country in the world allows an ordinary ISP to occupy the 700 MHz band. The ITU limits this band to LTE, NB-IoT and 5G systems. Bangladesh is now an outlier, trapped in a deadlock of its own making.
Abu Bakkar Siddique, a Bangladeshi telecommunication engineer now working in Malaysia, told The Business Standard, "The 700 MHz band is designated for telecom operators. An ISP has no use for this frequency."
The spectrum dispute is now before the Appellate Division, following a leave-to-appeal order on 31 August 2025. Officials and industry experts say the government must act to protect a critical national asset.
Why 700 MHz matters
In global telecom planning, 700 MHz is the backbone layer for 4G and 5G. It travels further, penetrates walls, and connects rural areas and highways with far fewer towers than mid-band frequencies.
Bangladesh's networks today rely on 1800, 2100 and 2300 MHz. These bands carry capacity but fall short on coverage. Without low-band spectrum, operators face higher investment burdens and uneven rural reach. The 800 and 900 MHz bands remain locked into 2G, which still generates nearly half of sector revenues.
Mid-band alone can't close coverage gaps. To match the reach of 700 MHz, operators would need roughly double the number of towers, pushing investment toward cities and leaving rural areas behind.
