Auction full ‘golden spectrum’, lower prices

• GSMA urges auction of full spectrum
• Limiting supply risks slowing rural coverage
• Industry body calls for lower pricing
• Operators seek clarity on 2026 renewals

Global System for Mobile Communications Association (GSMA), the international mobile industry body, has called on the local telecom regulator to lower spectrum prices and auction the full 45 MHz in the 700 MHz band in the next auction.

Known as the "golden spectrum" for its strong coverage, the 700 MHz band is crucial for expanding affordable 4G and 5G networks, especially in rural and remote parts of the country.

According to GSMA, limiting the upcoming auction, slated for January next year, to only 25 MHz could affect the country's digital expansion and slow rural network coverage.

Local operators have raised similar concerns since the auction plan by the Bangladesh Telecommunication Regulatory Commission (BTRC) was revealed.

BTRC said it will offer 25 MHz in January if the remaining 20 MHz, currently tied up in a legal dispute, is still unavailable. The case, pending with the Supreme Court, prevents BTRC from releasing the full band until the appeal is resolved.

According to the national spectrum roadmap 2024, 2×45 MHz of the 700 MHz band is earmarked for mobile broadband use.

In a letter to BTRC Chairman Maj Gen (retd) Md Emdad Ul Bari, GSMA urged the regulator to release the entire 2×45 MHz at once to prevent "artificial scarcity" and ensure a fair, competitive and investment-friendly outcome.

"Limiting the auction to only 2×25 MHz as against the total 2×45 MHz will create artificial scarcity, pushing prices higher," the GSMA said. "Spectrum policy should promote efficient assignments and investment, not revenue maximisation through constrained supply."

The association recommended that each operator be allowed to acquire at least 10 to 15 MHz to ensure service quality and efficient use, aligning Bangladesh's approach with global best practice.

Alongside availability, GSMA raised concerns about pricing. It said the reserve price, set by the regulator as the minimum bid, should reflect market realities rather than short-term revenue goals.

"Spectrum pricing should prioritise long-term socio-economic benefits over immediate fiscal returns," GSMA said. "The reserve price must be affordable for all operators, encouraging participation and allowing the market to determine true value."

Citing its Global Spectrum Pricing Report 2025, GSMA noted that countries with high reserve prices for low-frequency bands such as 700 MHz often face unsold spectrum, delayed rollouts and higher consumer prices.

Globally, average prices for low-band spectrum have fallen by about 75 percent over the past decade, showing a shift toward policies that promote affordability and inclusion, the letter said.

It also cautioned against using previous 900 MHz auctions as a benchmark, noting that market conditions, operator revenues and average revenue per user (ARPU) have changed significantly.

"Pricing should align with market readiness, device ecosystem, licence scope and the broader economic context," the letter said, urging BTRC to adopt a "pragmatic and realistic" valuation model.

GSMA added that Bangladeshi operators are already under financial strain from past and upcoming commitments, including those made in 2021 and 2022 and renewals due in 2026.

"The 700 MHz auction cannot be viewed in isolation," it said. "Operators must balance new investments with existing financial obligations and the need to sustain affordable services in a price-sensitive market."

To help long-term planning, GSMA asked BTRC to clarify the terms of the 2026 renewal process.

"Predictability will help operators plan strategically for future investments, including the 700 MHz band," it said.