High spectrum fees threaten Bangladesh's digital future, GSMA warns

Bangladesh's ambition of becoming a trillion-dollar digital economy could be at risk due to one of the world's highest spectrum and tax burdens, according to a new GSMA study released in Dhaka today (10 September).

The report, The Impact of Spectrum Pricing in Bangladesh, finds that excessively high spectrum costs are discouraging investment, holding back internet speeds, and slowing the nationwide rollout of 5G, reads a press release.

It estimates that reducing spectrum prices could unlock up to $45 billion in additional economic growth by 2035.

The findings were unveiled in the presence of senior government and regulatory officials, including Chief Adviser's Special Assistant on Posts, Telecommunications, and Information Technology Faiz Ahmad Taiyeb, Posts and Telecommunications Division Secretary Abdun Naser Khan, Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Maj Gen Md Emdad Ul Bari, Posts and Telecommunications Division Additional Secretary (Telecom) Md Jahirul Islam, BTRC Commissioner (Spectrum) Mahmud Hossain and GSMA Asia Pacific Head Julian Gorman.

Bangladesh has made important progress in mobile connectivity, with 4G networks now covering 99% of the population and data prices ranking among the most affordable in Asia Pacific.

Yet only 46% of citizens use mobile internet, and average monthly usage stands at just 5 GB per person, far below regional peers. As smartphone adoption accelerates and demand for data grows, operators face increasing pressure to expand networks, read the release.

However, the study finds that extremely high regulatory costs are limiting the ability of operators to invest. Spectrum fees alone account for around 16% of operators' recurring revenue, compared with 10% in Asia Pacific and 8% globally.

When combined with revenue-share levies, universal service obligations, and high consumer taxes, the total fiscal burden rises to an unprecedented 55% of operators' revenue.

The GSMA warns that if current spectrum pricing policies are maintained, upcoming renewals in 2026 and new band releases could push spectrum costs to 21% of revenue by 2035.

At such levels, operators may be forced to return spectrum or forgo new bands, leading to slower speeds, weaker service quality and delayed 5G adoption. To illustrate the potential economic impact, the study modelled different pricing scenarios. Under the status quo, network investment would be constrained and 5G expansion slowed. Aligning spectrum prices with the Asia-Pacific median — around a 50% reduction — would boost download speeds by 17% and enable 5G to reach 99% of citizens by 2035, adding an estimated $34 billion to GDP.

A deeper reduction of around 75%, bringing costs closer to the global median, could increase 4G speeds by 22% and generate up to $45 billion in additional economic value over the next decade, the release added.

Importantly, the report noted that reducing spectrum costs would not necessarily harm government finances. Greater digital connectivity would stimulate wider economic activity, which could in turn increase tax revenues in other areas and offset any decline in direct spectrum fee collections.

The GSMA urges policymakers to view spectrum pricing as a tool for efficient allocation rather than revenue maximisation, arguing that the broader benefits of digital growth far outweigh short-term fiscal gains.

"Mobile connectivity is the oxygen of Bangladesh's digital ambition," said Julian Gorman.

"Yet operators here face one of the highest burdens globally on spectrum and sector-specific taxes. Affordable, predictable pricing and modernised licence terms are essential to expand affordable coverage and power the trillion-dollar economic vision. We stand ready to work with government and industry partners to ensure spectrum policy becomes a catalyst rather than a constraint for inclusive growth," he added.

The report also outlines a number of reforms that could help achieve this, including resetting spectrum prices based on current market fundamentals, awarding the 700 MHz and 3.5 GHz bands in a timely manner, streamlining taxes and device duties to encourage smartphone adoption, and guaranteeing long-term licences with flexible, local-currency payment terms to reduce risks for operators.

With timely reforms, the GSMA argues, Bangladesh could accelerate 5G rollout, boost connectivity and capture the economic and social benefits needed to meet its vision of becoming an upper-middle-income country by 2031 and a trillion-dollar digital economy in the years ahead.