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Spectrum allocation to Teletalk irks private operators

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Private mobile operators have voiced concerns over the allocation of 700 MHz spectrum to state-owned Teletalk, warning that the move could distort competition and undermine investor confidence in Bangladesh's telecom sector.

Talking to The Financial Express separately, senior executives from Robi Axiata, Grameenphone and Banglalink stressed the need for a transparent, consistent and market-based approach to spectrum management.

Shahed Alam, Chief Corporate and Regulatory Officer of Robi, said the spectrum allocation requires a prudent regulatory judgment in order to maintain a level playing field.

He further said a transparent, consistent and evidence-based approach is essential to safeguard competition, encourage investment and ensure that consumers receive the full benefits of the resource.

Tanveer Mohammad, Chief Corporate Affairs Officer of Grameenphone, said spectrum is a national resource and any assignment should follow a uniform, market-based framework with consistent terms for all operators.

He expressed the hope that the regulatory authorities would adhere to a rules-based approach aligned with established spectrum management principles.

Towhid Ahmed, Head of Corporate Communications at Banglalink, said the company is concerned about allocating valuable 700 MHz spectrum to an operator with significant outstanding dues.

He also emphasised that spectrum, as a scarce public resource, should be guided by efficient utilisation, financial discipline and a level playing field.

Preferential allocation to an already spectrum-rich but 'underutilised operator', according to him, risks inefficiency and may limit access to low-band spectrum for operators serving larger customer bases.

He also warned that allocating such premium spectrum without a transparent and competitive process could create market imbalances and undermine investor confidence.

Their reactions come after the Bangladesh Telecommunication Regulatory Commission (BTRC) decided to allocate 10 MHz spectrum from the 700 MHz band to Teletalk at a price of Tk 2.37 billion per MHz-the same rate discovered in the latest auction.

The allocation follows a series of government directives.

On February 8, the telecom ministry instructed BTRC to allocate the spectrum to Teletalk, which applied the next day.

Later, the ministry informed the regulator that Teletalk had proposed converting its unpaid dues into government equity, according to sources concerned.

On April 24, the BTRC was directed to proceed with the allocation, citing the need to reduce customer inconvenience.

Teletalk, however, has substantial outstanding liabilities, it was learnt.

Its dues include nearly Tk 55.06 billion in spectrum fees, Tk 1.20 billion in licence fees, Tk 1.02 billion in revenue sharing and around Tk 620 million in other charges -- totalling more than Tk 57 billion, according to BTRC sources.

Despite holding 55.2 MHz spectrum across multiple bands, the operator serves around 6.8 million subscribers and has long faced criticism over service quality and slow subscriber growth.

Industry data also show that Teletalk has not utilised around 30 MHz of spectrum in the 2300 MHz band acquired in 2022, raising concerns about spectrum efficiency and compliance with rollout obligations.

The state-owned entity currently has only 3,323 out of the total 46,567 towers of different operators. It also has only 6.82 million subscribers, which account for about 3.67 per cent market share of total 185.84 million mobile subscribers.

The 700 MHz band is recognised as one of the most valuable spectrum bands globally due to its ability to provide wide coverage, strong indoor penetration and cost-efficient network rollout -- making it particularly important for rural connectivity and future 5G deployment.

In Bangladesh, 45 MHz of the band has been allocated for mobile use, although 20 MHz remains tied up in legal disputes. Following the latest decision, only 5 MHz of available spectrum will remain for private operators, as Banglalink and Robi did not participate in the most recent auction citing high prices.

Earlier, the three operators jointly wrote to BTRC, urging it to halt any direct allocation of the 700 MHz band to Teletalk. In the letter, they argued that assigning spectrum outside a competitive auction -- especially after Teletalk did not participate -- would deviate from established principles of transparency and fair competition.

They also highlighted that Teletalk holds unused spectrum and warned that allocating additional frequencies without ensuring utilisation contradicts global "use it or lose it" principles.

The operators further cautioned that such a move could distort market dynamics, reduce potential government revenue worth billions of taka, and trigger legal uncertainties in the sector.

bdsmile@gmail.com

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