Nationwide internet service provider (ISP) Agni Systems Limited has decided to surrender its 5,380-5,440-megahertz frequency band, reflecting a shift in Bangladesh’s internet infrastructure as fibre-optic networks expand rapidly across the country.
Industry people say the decision shows how spectrum that once played a crucial role in connecting remote areas is steadily losing commercial relevance in the broadband internet industry.
The band, part of the 5-gigahertz microwave spectrum, was previously used for point-to-point and point-to-multipoint connectivity, particularly in areas where deploying fibre was impractical or economically unviable.
It also served as an interim solution for corporate connectivity and inter-ISP links before nationwide fibre rollout gathered pace.
That role has now largely diminished.
With underground and overhead cable networks extending fibre-optic coverage to over 90 per cent of the country, reliance on wireless spectrum has fallen sharply, Internet Service Providers Association of Bangladesh (ISPAB) President Mohammad Aminul Hakim told TIMES of Bangladesh.
As a result, Agni Systems said, “the justification for holding high-cost spectrum has weakened.”
“From a technical perspective, the band is not obsolete.”
However, the 5-gigahertz range carries a relatively higher risk of interference, and more efficient and cost-effective access technologies have become widely available in recent years, reducing demand for services based on this band.
For Agni Systems, this shift translated into an economic burden.
Annual spectrum fees and regulatory charges, alongside equipment procurement and maintenance costs, tower or site rentals and electricity expenses, continued to accrue even as utilisation declined, the company said.
It added that additional obligations such as interference management, network optimisation and regulatory reporting further increased costs.
“As usage fell, the cost per megabit per second delivered through this band rose sharply, making it significantly more expensive than fibre-based alternatives.”
It eroded the band’s commercial viability, as fibre-centric infrastructure offers greater scalability, higher capacity and lower long-term costs.
ISPAB says Agni Systems is not alone in reassessing the spectrum.
Aminul Hakim said the band had once been vital for remote connectivity and corporate links, but those use cases have diminished nationwide.
“At current prices, holding such spectrum is no longer commercially sustainable, and most ISPs no longer see a need for it,” he said.
Agni Systems’ Regulatory Affairs Department said the spectrum was primarily allocated to support enterprise services and inter-ISP connectivity and functioned as an interim wireless solution before fibre networks were fully developed.
Rapid fibre expansion and the availability of more efficient technologies have made the band less attractive both economically and strategically, it said.
The company said the decision to surrender the spectrum is a forward-looking move aimed at aligning assets with current and future business models, improving capital efficiency and strengthening investment in sustainable, high-performance and scalable infrastructure.
According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the 5380–5440 MHz band was temporarily assigned to Agni Systems in September last year.
BTRC later sought over Tk30 lakh from the company for 2025 as frequency charges, power output charges, station or terminal charges and licence fees.
Agni Systems applied to pay the amount in instalments, and the regulator granted time until 31 December.
The company said on Sunday that it has cleared all outstanding dues.
As the surrender process moves forward, the episode points to a broader transformation in Bangladesh’s internet sector, where wireless spectrum that once filled critical gaps is increasingly being relinquished in favour of fibre-centric infrastructure.
