BTRC Extends Spectrum Renewal Deadline

The Bangladesh Telecommunication Regulatory Commission (BTRC) has granted three private mobile phone operators an additional month to renew a combined 79.2 megahertz of spectrum, as pricing decisions and delays in arranging the auction prevented the process from being completed before the expiry deadline. The extension gives Grameenphone, Robi and Banglalink more time while the regulator and the government work towards finalising the spectrum prices and renewal arrangements.

The spectrum was due to expire on Wednesday, November 11. However, on Tuesday, November 10, the BTRC sent letters to the three operators granting each a one-month extension.

BTRC Chairman Major General (retd) Md Emdad Ul Bari said the operators would have to pay the fee for the extended period at the price determined later.

According to relevant sources, the BTRC has proposed reserve prices for auctioning spectrum in different bands for a new 20-year allocation period. The proposed price is Tk 316 crore per megahertz for the 900 MHz band, Tk 264 crore for the 1,800 MHz band and Tk 229 crore for the 2,100 MHz band.

Under the proposed rates, mobile operators could collectively have to spend around Tk 13,000 crore to acquire the spectrum.

On November 1, the Ministry of Posts, Telecommunications and Information Technology sent the proposed prices to the Ministry of Finance for approval. However, sources indicate that the government is considering the possibility of reducing spectrum prices.

Earlier, Association of Mobile Telecom Operators of Bangladesh (AMTOB) Secretary General Mohammad Zulfikar said demand for spectrum in the 700 MHz and 1,800 MHz bands had declined significantly. He warned that high prices could lead operators to rely on technological solutions to provide services using less spectrum.

Sources familiar with the matter said Prime Minister’s Adviser Rehan Asif Asad was working on measures to address the operators’ concerns. These include reducing the reserve and instalment prices of spectrum and increasing the number of instalments available for payment.

The three operators must renew spectrum previously allocated through an auction around 15 years ago: 32.4 MHz for Grameenphone, 29.4 MHz for Robi and 21 MHz for Banglalink.

Taking future demand, including the expansion of artificial intelligence (AI), into account, the operators have sought either 20 years of usage rights at prices comparable to the previous 15-year rates or a larger spectrum allocation at a lower cost.

At a press conference on November 5, Robi Axiata Chief Corporate and Regulatory Officer Shahed Alam said the proposed spectrum prices were significantly higher than international benchmarks. He claimed that the government collected Tk 56 in taxes for every Tk 100 earned by the telecommunications sector.

Grameenphone Chief Corporate Affairs Officer Tanvir Mohammad said mobile operators in Bangladesh already paid more than 50 per cent of their total revenue to the government in taxes. He warned that higher spectrum prices could force operators to compromise on the quality of customer services.

Banglalink Chief Corporate Affairs Officer Taimur Rahman said that although spectrum prices in India were somewhat higher, taxes and value-added tax there were considerably lower than in Bangladesh. He also noted that average revenue per user in India was twice that of Bangladesh.

Citing Sri Lanka as an example, he suggested that Bangladesh consider allocating spectrum at nominal prices to encourage more affordable internet access.

Currently, Grameenphone holds 137.4 MHz of spectrum, Robi 124 MHz, Banglalink 80 MHz and state-owned Teletalk 65.2 MHz.

//DBTech/IH/SMP/MIS//