GoB Addresses Investor Concerns Over 700 MHz Spectrum Auction
The Government of Bangladesh (GoB) has officially responded to investor concerns regarding the upcoming 700 MHz spectrum auction. In a statement issued today (March 25) by Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser, the government acknowledged the contributions of long-term investors in the country’s telecommunications infrastructure and assured that their concerns are being carefully considered.
Regarding spectrum pricing, the government noted that the value of the Bangladeshi Taka has depreciated by approximately 40% against the US dollar over the past three years. Taking this currency devaluation into account, the current spectrum price has been deemed consistent with international market standards. Since foreign investors play a significant role in the country’s telecommunications sector and their profits are repatriated in US dollars, the government justified pricing the spectrum in USD as a rational decision.
The government further clarified that, out of the total 2x45 MHz available in the 700 MHz band, only 2x25 MHz has been released for auction at this stage. However, steps are being taken to release the remaining portion soon to ensure both technological capacity and commercial stability.
Additionally, to enhance device compatibility with the 700 MHz band, the Bangladesh Telecommunication Regulatory Commission (BTRC) has decided that, in the future, no newly launched mobile devices—whether domestically manufactured or imported—will be allowed if they do not support the 700 MHz band. Currently, around 50% of 4G devices support this band, and this initiative is expected to significantly increase that percentage in the coming quarters.
According to the government’s report, mobile network operators (MNOs) in Bangladesh utilize spectrum across different frequency bands at varying levels. While the utilization rate of lower frequency bands stands at 84%-98%, higher frequency bands remain underutilized, ranging from 7% to 18%. The primary reason cited for this inefficiency is the lack of adequate Baseband Units (BBU) and Radio Resource Units (RRU). This has led to deteriorating network quality (QoS/QoE), resulting in slow internet speeds, call drops, and other service disruptions for consumers.
The government also addressed public criticism regarding high internet prices and limited data validity periods. It stated that mobile operators are deliberately restricting internet usage while maintaining high prices, which is hindering the expansion of digital services.
To ensure the efficient use of spectrum, reduce internet costs, and improve network services, the government expressed its willingness to engage in discussions with mobile operators. If operators commit to network development and delivering high-quality services at competitive prices, the government may consider offering a 5%-10% discount on spectrum prices.
