Bangladesh Regulator Proposes Cutting Spectrum Renewal Prices by Up to 30%

· 2 min read

What happened

The Bangladesh Telecommunication Regulatory Commission (BTRC) has proposed cutting spectrum prices by between 10% and 30% for renewing airwaves held by the country's three mobile operators. The Daily Star reported on 20 October that the BTRC sent the proposal to the Posts and Telecommunications Division for approval on 15 October.

The spectrum involved

The proposal covers 79.2 MHz in the 900 MHz, 1800 MHz and 2100 MHz bands:

  • Grameenphone: 32.4 MHz
  • Banglalink: 24.4 MHz
  • Robi: 22.4 MHz

The operators' current spectrum licences expire on 10 November. The renewed allocation would run until 10 March 2039, when their operating licences end.

The numbers

At the proposed rates, renewal would cost about Tk 13,100.5 crore, compared with Tk 16,845.2 crore at current rates. Taxes, VAT and other fees would be charged on top. The 900 MHz price would match the Tk 237 crore per MHz paid for 700 MHz spectrum at an auction in January 2026.

How the prices were set

The BTRC said the prices came from a study by a consultant development economist. The study used four methods: an income-based cash-flow model, an engineering model of tower costs avoided, international benchmarks, and a socio-economic model. It warned that overpricing could leave spectrum unsold. BTRC chairman Md Emdad Ul Bari said the regulator aims to sell at least 80% of the spectrum up for renewal.

Operator reaction

Robi Axiata's Shahed Alam told the paper that, judging by media reports, the pricing basis appeared "arbitrary and discriminatory". Grameenphone's Tanveer Mohammad said spectrum prices in Bangladesh were much higher than in other countries, but that he expected the final terms to be customer-friendly.

The proposal is awaiting government approval.

Why it matters financially

According to The Daily Star, the cuts would reduce potential government revenue by Tk 3,744.7 crore over 12 years and four months. The renewal bill would fall from about Tk 16,845.2 crore to about Tk 13,100.5 crore before taxes. This is one of the largest near-term costs for all three operators, and the decision is due before the licences expire on 10 November.

Sources

  1. BTRC proposes spectrum price cuts of up to 30% (The Daily Star)
  2. BTRC proposes spectrum price cuts of up to 30 percent (Industry Insider BD)

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