Operators Seek Rational Spectrum Pricing

Bangladesh’s four mobile operators have reported a decline in revenue despite growth in the global mobile telecommunications industry, according to the Association of Mobile Telecom Operators of Bangladesh (AMTOB). The association said global mobile operators recorded 4% growth in 2025, while the combined revenue of Bangladesh’s four operators declined by 0.8% over the same period. It has called for more investment-friendly spectrum pricing, warning that high costs could constrain network expansion and service improvements.

The concerns were raised at a press conference held at AMTOB’s office in Banani, Dhaka, on Wednesday, 4 November. Representatives of Grameenphone, Robi, Banglalink and Teletalk discussed spectrum pricing, allocation terms, investment capacity, network quality and the future of customer services.

AMTOB claimed that the four operators collectively paid Tk 43,500 crore to the government in the last fiscal year as revenue-related payments, equivalent to around 60% of their total revenue. The association also said mobile service prices at the customer level had declined by approximately 60% over the past 15 years. However, it argued that operators’ revenues were not growing in line with rising data demand and the need for network investment.

Spectrum costs exceed global and regional benchmarks

According to AMTOB, spectrum-related costs account for 15.7% of mobile operators’ revenue in Bangladesh. The corresponding global average is 7.7%, while the Asia-Pacific average is 10.4%.

A 2025 study by GSMA Intelligence also reported Bangladesh’s spectrum-cost-to-revenue ratio at 15.7%, compared with a global median of 7.7% and an Asia-Pacific median of 10.4%.

Operators warned that high spectrum prices could discourage them from acquiring additional frequencies and, in some cases, lead them to surrender spectrum rather than purchase new allocations. This could affect network capacity, investment in new technologies and the quality of services offered to customers.

Focus shifting from coverage to capacity

Shahed Alam, Chief Corporate Affairs Officer of Robi, said operators were increasingly focusing on network capacity rather than simply expanding coverage. He said the industry did not want to remain confined to 3G and 4G and needed an investment-friendly environment to deliver better services.

He argued that extending spectrum allocation terms from 15 to 20 years could help reduce long-term costs and improve operators’ ability to plan investments in network development and new technologies.

On spectrum valuation, Alam acknowledged that the Bangladesh Telecommunication Regulatory Commission (BTRC) had determined current prices based on its research and assessment. However, he said pricing should also take into account the government’s digital transformation objectives, service quality, future investment requirements and operators’ financial sustainability—not merely the price per megahertz.

He said bringing spectrum costs closer to regional benchmarks would improve operators’ investment capacity. Otherwise, demand for additional spectrum in bands such as 3.5GHz and 700MHz could weaken, leaving some available frequencies unsold. He also noted that satellite-based communication services could create additional demand for spectrum allocation in the future.

Rising data demand puts pressure on investment

Taimur Rahman, Chief Corporate Affairs Officer of Banglalink, said data consumption had increased substantially. Citing figures presented at the event, he said average revenue per user (ARPU) in Bangladesh was around US$1.20, compared with US$2.15 in India.

He argued that spectrum policy should consider its overall economic value and the quality of services delivered to customers, rather than focusing only on the price per megahertz.

Rahman said people across the country were becoming increasingly dependent on wireless networks. Lower spectrum prices, he argued, would give operators more capacity to invest in equipment and technology imports for network expansion. This could also improve the efficiency of foreign currency spending and create opportunities for higher government revenue over the longer term.

He urged the regulator and operators to hold further discussions rather than rush decisions on spectrum pricing. Lower prices per megahertz could enable operators to acquire more spectrum, increase network capacity and improve data services.

Regional gap in average data consumption

Tanvir Mohammad, Chief Corporate Affairs Officer of Grameenphone, said a significant number of people in Bangladesh were still not connected to mobile internet. Among those who use the service, average data consumption was around 7.7GB per user, according to figures he presented. He compared this with 20GB in India and 35GB in Thailand.

He said demand for connectivity would increase as education, healthcare and other services moved further onto digital platforms. Operators therefore needed sufficient investment capacity and stronger networks to meet future demand.

Mohammad said mobile service prices in Bangladesh were comparatively low by international standards, but there was still room to improve the customer experience. If customers received more useful services and benefits for an expenditure of Tk 200, he argued, the value they received for their money would increase.

He also noted that smartphones were not yet available to all mobile subscribers. According to his estimate, more than 40% of subscribers did not have smartphones. The industry therefore needed to continue the transition from voice-centric to data-centric services while improving networks in rural, remote and densely populated urban areas.

He explained that the 900MHz band had historically been used mainly for voice services. As demand for data increased, operators began reallocating part of that spectrum for data. Lower-frequency bands can provide better indoor and remote-area coverage, making an appropriate mix of spectrum important for areas such as Old Dhaka, densely built urban neighbourhoods and rural communities.

Operators call for long-term spectrum planning

The press conference was moderated by AMTOB Secretary General Mohammad Zulfikar. He said spectrum had a time-based economic value and that operators would need to acquire larger amounts of spectrum as data demand and network capacity requirements increased.

He called for a broader assessment of spectrum allocation that considers overall network capacity and service quality, rather than focusing solely on the price per megahertz.

Zulfikar also urged policymakers to consider long-term investment, data demand and the expansion of 5G when planning spectrum allocation. He said decisions should be based on a longer-term outlook rather than calculations limited to one or two years.

BTRC proposal on spectrum renewal

Amid operators’ concerns over spectrum pricing, BTRC has also proposed reviewing renewal terms and allocation periods. Its proposal includes extending the allocation period for three frequency bands to 20 years, alongside discussions on pricing and payment structures. The proposal is still subject to government consideration and approval.

Operators argue that spectrum policy should not focus solely on immediate government revenue, as excessive costs could undermine long-term network investment and service quality. They believe more rational pricing would encourage spectrum acquisition, network modernisation and better services for customers.
//DBTech/IH/SMP/MIST//