700MHz auction: One operator can get up to 60% of total spectrum

The Bangladesh Telecommunication Regulatory Commission (BTRC) has recently amended its rules for the upcoming auction of the 700-megahertz (MHz) band, allowing a single mobile operator to acquire up to 60 percent of the spectrum available in the auction.

Under the revised guidelines, if only one operator participates, it may be awarded up to 15MHz out of the total 25MHz on offer.

Currently, the country's largest mobile operator, Grameenphone (GP), and the second-largest, Robi Axiata, have applied to take part in the auction scheduled for January 14. However, Robi has requested a one-month extension. Banglalink, the third-largest operator, and state-owned Teletalk have not applied.

"We have submitted our application as per the instructions. We are now waiting for BTRC's response," said Tanveer Mohammad, chief corporate affairs officer of Grameenphone.

Currently, Grameenphone and Robi Axiata have applied to take part in the auction scheduled for January 14. However, Robi has requested a one-month extension

Spectrum is a range of electromagnetic frequencies that telecom operators use to transmit mobile calls, internet data, and other wireless services. These frequencies are divided into bands, each with different technical characteristics that affect coverage, speed, and signal quality.

The 700MHz band is widely regarded as a high-value or "golden" spectrum because it offers wide coverage, strong indoor penetration, and lower network deployment costs compared to higher-frequency bands.

These features make it suitable for both rural and urban areas and for improving the quality and reach of 4G and future 5G services.

OBJECTIONS OVER AUCTION FRAMEWORK, PRICING

Robi has complained that the current approach to auctioning the spectrum does not reflect market reality and is not inclusive.

"The proposed spectrum auction overlooks two critical issues – market competition and customer affordability," said Shahed Alam, chief corporate and regulatory officer, Robi Axiata PLC.

"We believe spectrum, as a national resource, should not remain unsold. At the same time, customers of operators not participating in this auction must not be deprived of spectrum access later, which is essential for quality service nationwide," he added.

Alam also said that the current pricing assumes all operators will participate, which may not reflect market conditions and could discourage competition.

He urged the regulator to adopt a more inclusive and sustainable approach that ensures competition, affordability, and optimal spectrum use, suggesting the auction should be rescheduled until the remaining spectrum is made available.

The government has approved a 10 percent reduction in the base price of the 700MHz band. Even after the cut, operators say the spectrum is still expensive. The base price is now Tk 237 crore per MHz for a 15-year licence, down from Tk 263 crore per MHz.

Faiz Ahmad Taiyeb, special assistant to the chief adviser for telecom and ICT, earlier said the government had directed the BTRC to revise the price after receiving requests from telecom investors.

He also noted that under the existing telecom policy, operators may qualify for an additional 20 percent discount if they meet network rollout targets within the first two years of allocation.

Banglalink, however, said its decision not to participate was driven by concerns over the auction framework as well as broader industry challenges.

"We decided not to participate due to the high spectrum price and an auction framework that limits fair competition," said Taimur Rahman, chief corporate and regulatory affairs officer of Banglalink.

"This decision also reflects broader challenges in the country's telecom sector, including one of the highest taxation rates globally, where taxes account for nearly 55 percent of industry revenue, and an unpredictable regulatory environment that discourages investment and diversification," he added.

Rahman also said the 700MHz band typically requires at least 10MHz per operator to deliver meaningful performance improvements, and that the proposed 25MHz structure effectively limits participation to two operators.

He added that alternative low-frequency bands, such as the 900MHz EGSM band, could provide a more cost-effective option for expanding coverage and improving service quality.

Another issue affecting the auction is that 20MHz of the 700MHz band remains tied up in a long-running legal dispute.

In 2007, the BTRC allocated 12MHz of the band to broadband provider Always On Network Bangladesh Ltd, before it was approved for mobile services, limiting the amount of spectrum currently available.

Meanwhile, BTRC Chairman Major General (retd) Md Emdad ul Bari said safeguards are in place to ensure fair competition.

"We have ensured a level playing field for everyone. No operator can become overly dominant through financial power alone, as safeguards are in place to protect smaller players," he said.