As Bangladesh moves towards a digitally connected economy, debate is growing over whether the country’s spectrum pricing framework is supporting that ambition or holding it back.
At the centre of the issue is the cost mobile operators pay for radio spectrum — the invisible backbone of mobile voice, internet and future 5G services.
Industry studies and telecom operators say Bangladesh’s spectrum costs are disproportionately high compared with international benchmarks, raising concerns over long-term investment sustainability and the pace of digital infrastructure development.
The issue has gained urgency ahead of a major spectrum renewal in 2026, when operators must renew 2×79.2 MHz of spectrum in the 900 MHz, 1800 MHz and 2100 MHz bands, which underpin most of the country’s mobile connectivity.
In an April joint letter to the Bangladesh Telecommunication Regulatory Commission (BTRC), Grameenphone, Robi Axiata and Banglalink proposed overhauling spectrum pricing, licence terms and regulatory charges ahead of the renewal cycle, warning that the current cost structure could weaken investment capacity and slow future network expansion.
According to GSMA’s September 2025 report, The Impact of Spectrum Pricing in Bangladesh, spectrum fees account for about 16 per cent of mobile operators’ revenues in Bangladesh, compared with roughly 10 per cent in Asia-Pacific and around 8 per cent globally.
The report warned that this could rise to 23 per cent by 2027 if the existing pricing mechanism remains unchanged, while industry estimates put the operators’ total burden — including revenue-sharing obligations, taxes, regulatory charges and spectrum payments — at about 55 per cent of revenue, among the highest globally and more than double many comparable markets.
Bangladesh’s telecom sector has already made significant investments in recent years, including purchases of spectrum in the 2300 MHz, 2600 MHz and 700 MHz bands, alongside continuing payments for those acquisitions. However, sector revenue growth has remained largely flat over the past two years, widening the gap between investment needs and earning capacity.
The upcoming renewal is expected to be one of the largest financial obligations in the sector’s history. Industry estimates put the cost of renewing the 2×79.2 MHz spectrum at around Tk 16,850 crore, before VAT, under current valuation assumptions.
While the final financial impact will depend on pricing and payment terms yet to be announced by the BTRC, operators say current market conditions justify a major revision of the framework.
Banglalink Chief Corporate and Regulatory Affairs Officer Taimur Rahman said the financial impact of the 2026 spectrum renewal would depend on the base price and payment terms yet to be announced by the BTRC, but current market conditions strongly justified a substantial cut in renewal fees.
He said legacy bands such as 900 MHz, 1800 MHz and 2100 MHz remain priced well above international benchmarks despite declining global valuations, making a more realistic pricing framework essential to sustain investment in digital infrastructure and services.
Robi Axiata’s Chief Corporate and Regulatory Officer Shahed Alam said operators were still in the planning stage ahead of the renewal.
Pressure on the sector is expected to intensify further over the coming decade.
The BTRC’s spectrum roadmap includes future allocations in the 600 MHz, 700 MHz, 1400 MHz and 3.5 GHz bands, all critical for advanced mobile broadband and 5G, while further renewal cycles in 2028, 2030, 2033 and 2034 will create a long-term pipeline of spectrum-related financial commitments.
This raises a key policy question: should spectrum remain mainly a source of state revenue, or be treated as a strategic asset to accelerate digital connectivity through lower pricing and higher investment?
International practice increasingly favours the latter. Pakistan has cut prices for 1800 MHz and 2100 MHz spectrum by more than 50 per cent, India’s TRAI has recommended major reserve-price reductions, France has waived renewal fees for 4G coverage commitments, and Germany has linked renewals to investment obligations. Vietnam, after reducing spectrum costs to below 6 per cent of operator revenue, recorded sharp improvements in mobile internet speeds in subsequent years.
Research cited by industry stakeholders suggests network investment tends to decline when spectrum costs exceed 8–10 per cent of operator revenue, while countries keeping costs below 5 per cent typically see faster network expansion and better service quality.
Citing these findings, operators have proposed a 75 per cent cut in future spectrum assignment and renewal prices, arguing that fees should no longer be tied rigidly to historical acquisition prices as global valuations have declined due to technological advances and greater spectrum availability.
They also want licence durations extended to at least 20 years, with instalment-based payments over 15 years, including an initial five-year grace period.
Operators also want the annual spectrum fee reviewed, saying it has become outdated since acquisition fees were introduced in 2008 and now amounts to double payment. They also oppose 15 per cent VAT on spectrum fees, arguing that spectrum is a national resource, not a commercial service.
Despite the intensifying debate, operators acknowledge that key decisions on pricing and renewal terms are yet to be finalised.
As Bangladesh approaches the 2026 renewal cycle, decisions taken by policymakers are expected to have long-term implications for the telecom sector.
The outcome will determine not only how much operators pay for spectrum, but also how quickly millions of users gain access to faster and more reliable mobile services.
