Spectrum Shift Strategy: Teletalk Set to Secure 700 MHz Band Allocation
Following Grameenphone, the state-owned mobile operator is now set to receive an allocation of 10 megahertz (MHz) spectrum from the valuable 700 MHz band. After the Bangladesh Telecommunication Regulatory Commission (BTRC) made this decision public, it brought renewed attention to the operator’s outstanding dues—amounting to approximately Tk 5,500 crore including spectrum fees—as well as its significant volume of unused or underutilized spectrum holdings.
Earlier in January, when Grameenphone participated in the auction for spectrum in the 700 MHz band, the telecom regulator had also decided to reserve 10 MHz in the same band for Teletalk.
According to sources, ahead of the national election on 8 February, the Ministry of Posts and Telecommunications sent a letter to BTRC instructing it to allocate 10 MHz spectrum to Teletalk. The following day, Teletalk submitted a formal application. On 16 February, the ministry stated that Teletalk had proposed converting its outstanding license and spectrum fees into government equity, which is currently under review by the Finance Division. Subsequently, on 24 April, the ministry directed BTRC to proceed with the allocation process, noting that the move is necessary to reduce customer suffering in line with the government’s electoral commitments.
Notably, the 700 MHz band is considered a high-value spectrum globally due to its wide network coverage, strong indoor signal penetration, lower deployment costs, and suitability for 5G services. In Bangladesh, a total of 45 MHz in this band is allocated for mobile services, of which 20 MHz remains unused due to legal complications.
The price of spectrum has been set at Tk 237 crore per MHz, the same rate at which Grameenphone—being the sole participant—purchased 10 MHz in the January auction.
As a result of this decision, the government may forgo at least Tk 2,000 crore in short-term revenue, as only 5 MHz will remain available in the 700 MHz band for operators Robi and Banglalink, both of which have large subscriber bases but did not participate in the most recent auction due to high pricing.
Currently, Teletalk holds a total of 55.2 MHz spectrum across the 900, 1800, 2100, and 2300 MHz bands. With approximately 6.8 million subscribers, it has about 0.81 MHz spectrum per one lakh users.
In comparison, Grameenphone serves 8.44 crore subscribers with 137.4 MHz (0.16 MHz per lakh), Robi has 5.74 crore subscribers with 124 MHz (0.22 MHz per lakh), and Banglalink serves 3.74 crore subscribers with 80 MHz (0.21 MHz per lakh).
BTRC quality tests have consistently shown that Teletalk’s voice and data service quality remains weaker than its competitors. Over the past five years, the operator has added only around 100,000 new subscribers.
Additionally, Teletalk has faced allegations of violating spectrum usage conditions, as it has yet to utilize 30 MHz of spectrum in the 2300 MHz band acquired during the 2022 auction.
Of Teletalk’s total outstanding dues, Tk 120 crore is in license fees, Tk 102 crore in revenue sharing, Tk 5,506 crore in spectrum fees, and approximately Tk 62 crore in other liabilities.
On the issue, Khandaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), told the media that while private operators are required to comply with strict regulations, state-owned entities often do not face the same obligations, creating imbalances in the market.
However, BTRC Chairman Md. Emdad Ul Bari stated that the allocation has been approved on the condition that spectrum fees will be converted into government equity. According to him, this will not result in revenue loss, as the funds will effectively be transferred from one government entity to another as equity investment.
DBTech/FA/EK/OR
