The Association of Mobile Telecom Operators of Bangladesh (AMTOB) has urged the telecom regulator to reduce spectrum prices, warning that high costs could threaten mobile operators’ future investment and business sustainability.
At a press conference at its office on Wednesday, AMTOB called on the Bangladesh Telecommunication Regulatory Commission (BTRC) to hold further discussions rather than rush the pricing process.
The BTRC has recommended prices of Tk316 crore for the 900 MHz band, Tk264 crore for the 1,800 MHz band and Tk229 crore for the 2,100 MHz band to the government. It has also proposed extending spectrum tenure from 15 to 20 years and allowing payment in 12 instalments instead of eight.
Robi Axiata Chief Corporate and Regulatory Officer Shahed Alam opened the press conference with a presentation calling for lower spectrum prices. He said declining operator revenues, high spectrum costs and renewal requirements every two years made affordable pricing essential. While operators previously needed 5 or 10 MHz, they now required 100 MHz, he said, adding that although the BTRC considered the proposed rates low compared with those set 15 years ago, current requirements warranted further reductions.
“If the government keeps prices affordable, operators will buy more spectrum, which will ultimately benefit the BTRC,” he said, citing Vietnam and Pakistan as examples of countries that had reduced initially high spectrum prices. Lower prices would increase network capacity, he added.
He warned that high prices could leave spectrum in the planned 3,500 MHz and 700 MHz auctions unsold, forcing operators to return spectrum and causing financial losses for the commission.
Recalling the introduction of 3G services, Shahed said operators had purchased spectrum for 15 years, but the business became obsolete within 11 years. “If investors cannot recover the money they invest, it will create uncertainty about future investments,” he said.
He added that operators paid Tk60 in taxes for every Tk100 in revenue and earned only Tk6 in profit after other expenses, making it difficult to sustain their businesses if they bought spectrum at the proposed renewal prices.
Banglalink Chief Corporate and Regulatory Affairs Officer Taimur Rahman said reasonable spectrum prices would encourage each operator to buy 100 MHz rather than limit purchases to 5 or 10 MHz, potentially expanding 5G coverage to 99 per cent. He said Bangladesh’s heavy reliance on mobile phones placed considerable pressure on networks and increased spectrum needs, while other countries had stronger broadband infrastructure. Mobile subscribers in Bangladesh used an average of 7.7 GB of data a month, compared with 35 GB in Thailand and more than 20 GB in India, he added.
Grameenphone Chief Corporate Affairs Officer Tanveer Mohammad said mobile tower distances in Bangladesh had once been around three kilometres, compared with 500 metres in Dhaka. Reducing the distance below 500 metres would not be scientifically justified, he said, arguing that operators should instead buy more spectrum to improve network quality. Bangladesh’s average revenue per user (ARPU) was $1.20, against $2.15 in India, he said, warning that high spectrum prices could put future investment at risk given operators’ low revenue per subscriber.
AMTOB Secretary General Mohammad Zulfikar said spectrum prices in Bangladesh were, on average, 15.7 per cent higher than the regional average of 10.4 per cent in the Asia-Pacific region.
“Even if the commission sets prices in line with the regional average, we would be able to accept them,” he said.
