Long-awaited 700 MHz spectrum auction on Jan 14

The government has fixed January 14 next year for the auction of the long-awaited 700 MHz spectrum, signalling a decisive move towards releasing a band that has been locked in legal and regulatory disputes for nearly two decades.

The date was formally announced in the Instructions for Radio Frequency Auction 2026, published by the Bangladesh Telecommunication Regulatory Commission (BTRC) on Thursday.

According to the auction timetable, the bidding will begin at 10:00am.

The regulator will offer 25 MHz of spectrum, split into five blocks of 5 MHz each, through an open outcry auction.

Although the 700 MHz band contains 45 MHz in total, only the uncontested 25 MHz can be offered at this stage because the remaining portion is tied up in a long-running court dispute stemming from a 2007 allocation to a small internet service provider.

The announcement brings clarity to a process that has been repeatedly postponed since the mid-2000s. The 700 MHz band is widely regarded as the most valuable low-frequency spectrum for mobile broadband due to its long range and excellent indoor penetration, making it essential for expanding 4G coverage and laying the foundation for nationwide 5G.

Yet, its release has been hampered by a series of setbacks, including disagreements over valuation and the unresolved litigation that froze nearly half the band.

In the newly issued guidelines, the BTRC has set the base price at Tk 2.37 billion per MHz, with each successive bid rising by Tk 25 million per MHz. Operators seeking to participate must submit applications by December 21.

The commission will publish the list of qualified bidders on December 24.

The bid earnest money of Tk 100 million must be deposited by January 8, and acceptance or rejection letters will follow on January 12.

The auction will take place in less than a month after the Finance Division endorsed the financial terms, clearing the final procedural hurdle.

Under the payment mechanism, winning bidders must deposit 10 per cent of the spectrum assignment fee within 30 days of the auction, while the remaining 90 per cent will be paid in nine equal annual instalments.

The assignment will be valid until March 2039, aligning with the existing mobile operator licence period.

The announcement has been met with cautious interest in the industry.

Operators have long argued that the proposed prices of the 700 MHz band sit far above the international benchmarks and could strain investment capacity at a time when the sector is already grappling with slowing revenues, increasing regulatory fees, and rising capital expenditure for network upgrades.

There is also a concern that with only 25 MHz available, the distribution of spectrum may not be optimal for efficient 5G deployment, particularly if operators end up with fragmented or narrow holdings.

Industry executives note that even if operators secure spectrum, significant investment will be needed to update network equipment and encourage the availability of compatible handsets in the local market.

Much of the current device ecosystem in Bangladesh does not support the 700 MHz band, and operators may therefore need to coordinate costly transitions to maximise the band's potential.

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