Historical prices no longer valid for spectrum valuation: Ziad Shatara

The historical prices of spectrum should no longer be used as a benchmark for spectrum valuation as the telecom industry’s business models and technologies have changed significantly over time, said Ziad Shatara, President of the Association of Mobile Telecom Operators Bangladesh (AMTOB) and Chief Executive Officer of Robi Axiata Limited.

He made the remarks at a roundtable organised by the Telecom and Technology Reporters Network Bangladesh (TRNB). The event was chaired by TRNB President S M Masuduzzaman Robin and moderated by Secretary General Faruk Hossain.

Prime Minister’s ICT and Telecom Adviser Rehan Asif Asad attended the event as the chief guest, while BTRC Chairman Md Emdad Ul Bari was present as the special guest.

Ziad Shatara said the spectrum used during the earlier generations of mobile technology is fundamentally different from the spectrum requirements of current technologies.

During the 2G era, a 200-kilohertz channel was primarily used for voice calls. However, operators now require channels as wide as 100 MHz to deliver gigabit-speed services in line with global technological developments. Therefore, historical prices calculated on a per-megahertz basis cannot reasonably be applied to spectrum under current technologies, he said.

Highlighting regional disparities, the Robi CEO said international and regional benchmarks show that spectrum prices in Bangladesh for the 1800 MHz and 2100 MHz bands are around three times higher than those in neighbouring countries.

He said telecom operators, as foreign investors, also want to see Bangladesh reduce its budget deficit and achieve sustainable economic growth because businesses cannot thrive in a weak economy.

Ziad questioned whether raising spectrum prices to address the government’s short-term budget deficit would ultimately strengthen the digital economy in the long run.

He expressed hope that the BTRC and the government would take into account the current technological and economic realities and introduce long-term, stakeholder-oriented reforms to the spectrum policy to accelerate Bangladesh’s overall economic growth.

Earlier, Robi Chief Corporate Affairs Officer Shahed Alam called for a reasonable spectrum floor price and a sustainable investment framework.

He said the cost of acquiring spectrum puts significant financial pressure on the telecom sector’s overall operations and investment capacity.

According to him, telecom operators generally need to invest around 10 to 20 percent of their total annual revenue in capital expenditure for telecom infrastructure. Excessive spending on spectrum, therefore, can become a major barrier to network infrastructure development and improvements in service quality.

Shahed Alam said reasonable and affordable spectrum prices would reduce the financial burden on operators, enabling greater investment in network expansion and improving the quality of 4G and 5G services.

He added that if operators could allocate more resources to network infrastructure instead of spending excessively on spectrum, foreign investors would be encouraged to make larger investments in Bangladesh’s telecom sector.

He said faster spectrum allocation at affordable prices would accelerate the country’s digitalisation process and could contribute positively to long-term economic and GDP growth.

Telecom experts said the government and regulator should view spectrum not merely as a means of maximising one-time revenue, but as a critical foundation for long-term national infrastructure development. Such an approach, they said, would benefit consumers, operators and the country as a whole.

//DBTech/ IH/ MIS//