Mobile operators have urged for deeper cuts in spectrum renewal prices, 20-year allocations and easier payment terms, arguing that high spectrum costs are limiting investment in network expansion and service quality.
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) made the demands in a 25 October letter to Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Md Emdad Ul Bari, seeking urgent talks before spectrum rights held by Grameenphone, Robi and Banglalink expire on 10 November.
BTRC has proposed cutting renewal prices by 10 to 30 per cent, setting rates at Tk237 crore per MHz for the 900 MHz band, Tk198 crore for 1800 MHz and Tk172 crore for 2100 MHz, excluding taxes and VAT.
The proposal was sent to the Posts and Telecommunications Division on 15 October for approval.
AMTOB says the reductions are insufficient. Its Secretary General Mohammad Zulfikar said Bangladeshi operators spend 15.7 per cent of revenue on spectrum, compared with the global average of 7.7 per cent and the Asia-Pacific average of 10.4 per cent.
“We appreciate the endeavour, but we believe the price can further be reconsidered,” he said, referring to BTRC’s valuation study.
He argued that lower prices would allow operators to invest more in coverage, network quality and digital services.
The disagreement also centres on licence duration and payment terms.
BTRC proposes renewing the spectrum until 10 March 2039, when the operators’ existing licences expire, leaving about 12 years and four months.
Although prices were assessed over 15 years, charges would be calculated proportionately for the shorter period.
AMTOB wants a 20-year renewal without proportionately increasing the price, payment in 20 equal annual instalments and withdrawal of the existing annual spectrum charge.
“When the industry requested consideration of a 20-year renewal term, our intention was not to suggest linear scaling of the proposed 15-year valuation,” the association said.
Under BTRC’s proposal, operators would pay in eight equal instalments, with the first due within 30 days of the renewal notice, the second within the following 180 days and the rest annually.
Taxes and VAT would apply separately, annual spectrum charges would continue and late payments would attract a 15 per cent annual penalty.
AMTOB warned that these costs could constrain spending on fourth-generation (4G) network expansion, fifth-generation (5G) readiness, fibre connectivity, rural coverage and digital services.
The association also questioned BTRC’s pricing calculations.
An expert consultant submitted a valuation study on 4 October, using income, engineering, international benchmarking and socioeconomic approaches. The proposal subsequently received approval from BTRC’s Spectrum Management Committee and the commission.
For the 1800 MHz band, the study produced estimates ranging from Tk170 crore to Tk210 crore per paired MHz over 15 years. Combined valuation methods indicated Tk185.8 crore to Tk191.6 crore, against BTRC’s proposed Tk198 crore.
BTRC used the 1800 MHz band as its benchmark, adjusting prices for the other bands according to coverage, equipment availability and technology support.
AMTOB said operators lacked access to the detailed assumptions behind the final rates and questioned why the proposal exceeded the lower and average valuation estimates.
It urged the regulator to account for discounted cash flow, inflation, market uncertainty, technological changes and investment risks. The association also cited UK regulator Ofcom’s use of updated market valuations when revising spectrum fees.
BTRC’s socioeconomic study highlighted the potential cost of discouraging network investment through high spectrum prices.
Citing international research, it estimated that a 10 per cent increase in broadband penetration could raise per capita income by 0.73 per cent.
Based on Bangladesh’s estimated $455 billion economy, the study calculated that a one-percentage-point increase in broadband penetration could generate Tk6,549 crore in annual economic benefits.
At Tk170 crore per MHz, assuming operators passed on 75 per cent of spectrum costs, the model projected an annual net economic gain of Tk1,674 crore, with an estimated net government revenue loss of Tk25 crore after accounting for taxes and additional economic activity.
The study cautioned that excessive prices could leave spectrum unused and limit connectivity benefits, while excessively low prices could deny the government appropriate returns on a scarce public resource.
The pricing dispute comes as spectrum demand is expected to rise.
BTRC’s roadmap projects Bangladesh will need about 1,623 MHz by 2035. An International Telecommunication Union and GSMA forecast cited in its documents suggests densely populated countries could require roughly 2,000 MHz by 2030.
The roadmap envisages allocating 20 MHz in the 700 MHz band and 300 MHz in the 3.5 GHz band for 5G in 2027, followed by 25 MHz in the 2100 MHz band in 2028 and 10 MHz in the 1800 MHz band for Robi in 2030.
With the 10 November deadline approaching, government approval remains pending. BTRC’s documents indicate that the Posts and Telecommunications Division may consult the Finance Division and the regulator before a decision.
