700 MHz spectrum auction: Leading mobile operators push for revision of terms

The country's three leading mobile operators -- Grameenphone, Robi Axiata and Banglalink -- have jointly urged the telecom regulator to revise the terms of the forthcoming 700 MHz spectrum auction, warning that the current framework could discourage investment and impede efforts to expand mobile coverage in rural and underserved areas.

In a joint letter submitted to the Bangladesh Telecommunication Regulatory Commission (BTRC) recently, the operators said the 700 MHz band is globally recognised as a critical low-frequency spectrum for wide-area coverage and indoor penetration, but the proposed auction design and pricing make it commercially unviable.

They noted that although the National Spectrum Roadmap 2024 allocates 2×45 MHz for International Mobile Telecommunications (IMT) use, the BTRC's current plan offers only 2×25 MHz, which they described as "creating artificial scarcity and driving up prices unnecessarily".

The letter, signed by Taimur Rahman of Banglalink, Tanveer Mohammad of Grameenphone, and Shahed Alam of Robi, also argues that the base price of Tk 2.84 billion (284 crore) per MHz (including VAT) -- benchmarked against the 900 MHz and 1800 MHz bands -- is "not aligned with global precedent" and "difficult to justify", given lower device compatibility and weaker business cases for 700 MHz.

"There is no global precedent for benchmarking the cost of the 700 MHz band against the 900 MHz or 1800 MHz bands," the operators wrote. "Only around 35 per cent of handsets in the market are compatible with 700 MHz, significantly reducing return on investment."

They added that deploying the 700 MHz band would require substantial fresh capital expenditure on radio equipment, antennas, hardware, software, and increased energy consumption -- at a time when industry revenues are already under pressure.

Talking to The Financial Express, a top executive of one operators of the three has hinted that if BTRC goes ahead with the auction despite request of reviews, they might boycott it.

However, Bangladesh Telecommunication Regulatory Commission (BTRC) said the authority of lowering the price lay with the government.

In a formal reply to the FE, BTRC said it submitted the 700 MHz Spectrum Auction Guidelines, including the proposed base price for allocating spectrum (per MHz for a 15-year term), to the Posts and Telecommunications Division (PTD) for government approval.

"As outlined in the guidelines, any decision to reduce the spectrum price rests solely on the authority of the government," BTRC told FE.

The BTRC has slated the 700 MHz band -- specifically the 703-748 MHz / 758-803 MHz range -- for mobile broadband use, marking the first release of low-band spectrum in Bangladesh's telecom market.

The government aims to conduct the auction by mid-2025 as part of its push to expand 4G and 5G services nationwide. However, industry sources say a portion of the band -- about 12 MHz previously held by Always On Network Bangladesh Ltd. -- remains tied up in a legal dispute, preventing the regulator from releasing the full 2×45 MHz block.

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