High Spectrum Costs Hinder Network Investment: Banglalink

The high cost of acquiring spectrum is putting significant financial pressure on the overall operations and investment capacity of telecom operators, said Banglalink Chief Executive Officer (CEO) Johan Buse. He said reasonable and affordable spectrum pricing would allow operators to invest more in network infrastructure, 4G/5G expansion and service quality.

He made the remarks at a roundtable organised by the Telecom and Technology Reporters Network Bangladesh (TRNB). TRNB President S M Masuduzzaman Robin chaired the session, while its General Secretary Faruk Hossain moderated it. Prime Minister’s ICT and Telecom Adviser Rehan Asif Asad attended as the chief guest, with BTRC Chairman Md. Emdad Ul Bari as the special guest.

Johan Buse said telecom operators generally have to invest around 10–20 percent of their annual revenue in capital expenditure (CapEx) for telecom infrastructure. Excessive spending on spectrum, therefore, reduces their capacity to invest in network infrastructure and improve service quality.

He said reasonable spectrum pricing would reduce the financial burden on operators, enabling them to expand networks and improve the quality of 4G and 5G services. If operators could allocate more funds to network infrastructure instead of spending excessively on spectrum, foreign investors would also be encouraged to make larger investments in the telecom sector.

Banglalink Chief Corporate Affairs Officer Taimur Rahman said more than 40 percent of the country’s network areas are still outside 4G coverage. Against this backdrop, the company has prioritised achieving nationwide 4G coverage before rushing into a nationwide 5G rollout. At the same time, it plans to introduce spot-based 5G services in selected business and industrial areas.

He also said initiatives were underway to launch satellite internet services. Referring to the fact that not all previous generations of mobile technology, including 1G and 3G, achieved sustained market success, he said Bangladesh should adopt a realistic and sustainable approach to 5G rather than blindly following global trends.

According to Taimur Rahman, 5G and future 6G technologies require seamless coverage and high network capacity, making adequate spectrum availability essential.

Highlighting the gap between high spectrum costs and low average revenue per user (ARPU), he said Bangladeshi operators have to purchase technology equipment from vendors at prices comparable to international markets, while the country’s ARPU remains among the lowest in the world.

He said around 18 percent of operators’ total revenue in Bangladesh currently goes toward spectrum acquisition and renewal, which is considerably higher than in emerging and developing markets.

Citing Pakistan as a regional example, Taimur Rahman said the country had reduced spectrum prices by more than 50 percent in its recent auction. The price was set at $6 million per MHz for the 1800 MHz band and $10 million per MHz for the 2300 MHz band. As a result, operators purchased 480 MHz of spectrum, which he said could significantly transform 4G speeds and 5G rollout in the near future.

Addressing the government, he said the objective of increasing immediate government revenue through spectrum sales was understandable. However, if high spectrum prices prevent operators from acquiring necessary spectrum or expanding their networks, the country’s long-term GDP growth and digitalisation goals could be adversely affected.

He further said that faster allocation of spectrum at affordable prices would strengthen operators’ investment capacity and accelerate digitalisation, ultimately contributing positively to Bangladesh’s economy and GDP growth.

The roundtable was organised by TRNB with S M Masuduzzaman Robin in the chair and Faruk Hossain moderating. Prime Minister’s ICT and Telecom Adviser Rehan Asif Asad was the chief guest, while BTRC Chairman Md. Emdad Ul Bari attended as the special guest.

//DigiBanglaTech/ IH/ MIS//