Auction for 700 MHz spectrum turns into single-player contest as Robi pulls out

The planned auction for the 700-megahertz (MHz) spectrum has been reduced to a single-player contest following Robi Axiata's formal withdrawal, leaving Grameenphone as the only remaining operator in the field.

The move has left the telecom regulator with little option other than a direct allocation if the auction proceeds.

Robi confirmed its withdrawal to The FE, citing a detailed technical and strategic review as the basis for its decision.

Shahed Alam, chief corporate and regulatory affairs officer of Robi Axiata, explained that while the 700 MHz band is important for the operator's long-term network evolution, the timing of the auction did not align with Robi's immediate rollout plans or market conditions.

Current network priorities, deployment schedules and overall market realities prompted the company to step back from the auction, he added.

The Bangladesh Telecommunication Regulatory Commission (BTRC) has also acknowledged Robi's withdrawal.

According to the regulator, Robi has instead sought spectrum in the 800 MHz or 900 MHz bands, which the operator deems more critical for its present network requirements.

Initially, both Grameenphone, the country's largest mobile operator, and Robi, the second-largest, had applied to participate in the auction scheduled for January 21.

However, Robi later requested a one-month extension of the timeline before ultimately pulling out of the process.

Banglalink and state-owned Teletalk did not apply, leaving Grameenphone as the sole remaining bidder for the spectrum.

Anticipating the prospect of a single-participant auction, the BTRC earlier revised its auction rules, reducing the maximum spectrum acquisition cap for one operator from 15 MHz to 10 MHz in the 700 MHz band. Even with this adjustment, the absence of competition has cast doubt about the viability of holding an auction in the conventional sense.

The 700 MHz band itself has long been mired in complications. About 20 MHz of the spectrum remains tied up in a protracted legal dispute, dating back to a 2007 allocation of 12 MHz to broadband service provider Always On Network Bangladesh Ltd. The allocation was made before the band was formally designated for mobile services. This has left a substantial portion of the spectrum unavailable.

In a further bid to attract operators, the government recently approved a 10 per cent reduction in the base price of the band.

The revised price has been set at Tk 2.37 billion per MHz for a 15-year licence, down from Tk 2.63 billion.

Despite the cut, mobile operators maintain that the 700 MHz spectrum remains expensive and well above international benchmark rates, reinforcing concerns over whether the band can be allocated through a competitive process under the current conditions.

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