BTRC proposes spectrum price cuts of up to 30%

The telecom regulator has proposed cutting spectrum prices by 10 percent to 30 percent for the renewal of airwaves held by the country’s three mobile operators, reducing the government’s potential revenue by Tk 3,744.7 crore over 12 years and four months.

The Bangladesh Telecommunication Regulatory Commission (BTRC) sent the proposal to the Posts and Telecommunications Division on October 15 for approval.

The proposal covers 79.2 megahertz (MHz) of spectrum held by Grameenphone (32.4MHz), Banglalink (24.4MHz) and Robi (22.4MHz) across three bands used for voice calls and internet services.

The 900MHz band provides wider coverage and better indoor connectivity, the 1800MHz band balances coverage and capacity, while the 2100MHz band supports higher data traffic.

The operators’ current spectrum licences expire on November 10. Renewal is essential to maintain existing services, meet growing data demand and improve network quality.

The proposed prices would fall by 10 percent to 30 percent across the three bands. The 900MHz rate would match the price paid for 700MHz spectrum at an auction in January 2026.

At the proposed rates, spectrum renewal would cost around Tk 13,100.5 crore, compared with Tk 16,845.2 crore at current rates. The final cost would depend on the approved prices and calculation period, with taxes, VAT and other fees charged separately.

The allocation would run until March 10, 2039, covering 12 years and four months, when the operators’ licences expire.

STUDY ASSESSES PRICES, ECONOMIC BENEFITS

According to its proposal, the BTRC based the new prices on a dedicated study approved by the ministry. Following a recommendation from a research steering committee, it appointed a development economist as a special consultant under public procurement rules.

The consultant used four methods to assess spectrum prices. An income-based model projected future cash flows, excluded earnings from other assets and ran thousands of simulations to account for uncertainty. An engineering model estimated the tower-building costs operators could avoid by holding more spectrum, treating this as the maximum they would rationally pay.

A third method compared international spectrum prices after adjusting for purchasing power, income levels and licence duration. The fourth, a socio-economic model, assessed wider economic benefits beyond government revenue, including better service quality and economic growth enabled by faster mobile data.

The consultant recommended a price range rather than a single figure because the risks were unequal. Overpricing could leave spectrum unsold and waste its economic potential, while slightly lower prices could still generate government revenue through taxes on increased economic activity.

Prices for other bands were calculated using 1800MHz as the base, with multipliers reflecting coverage, the equipment ecosystem and cost.

The study warned that high spectrum prices could discourage operators from buying airwaves, reducing government revenue and investment in network expansion.

Citing international research that a 10 percent increase in broadband penetration raises per capita income by 0.73 percent, the study estimated that a 1 percent increase would generate Tk 6,549 crore in annual economic benefits, based on Bangladesh’s $455 billion GDP.

At Tk 170 crore per MHz, assuming operators pass on 75 percent of the cost, the annual net economic gain would be Tk 1,674 crore. After accounting for corporate tax and revenue from increased economic activity, the government’s net loss would be around Tk 25 crore.

The proposal was endorsed at the Spectrum Management Committee’s 110th meeting and the commission’s 312th meeting.

The renewal is part of the BTRC’s spectrum roadmap through 2035, which includes allocating more frequencies for 5G and renewing other bands. The regulator says efficient spectrum management is essential to meeting rising data demand, improving service quality and encouraging network investment. The proposal is awaiting final government approval.

WHAT OPERATORS AND BTRC SAY

Mobile operators have questioned the proposed renewal prices, warning that arbitrary pricing and high costs could weaken competition and discourage investment.

Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata, said the company had not received official information about the proposed rates but was concerned by media reports.

“What we have learned from media reports raises serious concerns that the pricing basis is arbitrary and discriminatory, undermining transparency and equal treatment,” he said.

Shahed said the decision would determine whether the market remained competitive or moved towards a single-player market.

“We urge the government and regulator to adopt a fair, transparent and non-discriminatory pricing framework that ensures a level playing field, protects consumer choice, sustains competition and encourages long-term investment,” he said.

Tanveer Mohammad, chief corporate affairs officer at Grameenphone, also said the company had received no official information from the BTRC. He added that spectrum prices in Bangladesh were much higher than in other countries.

He said the regulator had held several constructive discussions with Grameenphone and other operators on the issue.

“We believe the prices and terms set by the BTRC will be customer-friendly and supportive of the country’s digital progress,” he said.

BTRC Chairman Md Emdad Ul Bari said the proposed renewal prices were the first to be based on a study using specific methods.

“We have set the price suggested by a study that used certain methods,” he said.

Addressing concerns that lower prices would reduce government revenue, he said the regulator aimed to sell at least 80 percent of the spectrum available for renewal. If prices were too high, some spectrum could remain unsold, further reducing revenue.

Responding to operators’ criticism that the proposed rates were high and arbitrary, he said, “If you reduce the fee, they will not be satisfied either.”

Asked why 900MHz spectrum was priced at Tk 237 crore per MHz, matching the price of 700MHz spectrum, Bari said lower-band frequencies such as 900MHz were highly valuable and had been priced accordingly.