Bangladesh proposes 20-year radio spectrum allocation
New adjustments to the payment methods for mobile radio frequencies used for data and calls are being weighed by Bangladeshi authorities. A proposal from the Bangladesh Telecommunication Regulatory Commission (BTRC) suggests increasing the typical spectrum allocation period from 15 to 20 years. Additionally, the agency recommended updated pricing for three frequency bands and expanding the payment window to 12 installments from the existing 10.
How the Pricing Structure Would Change
On 1 November, the finance ministry received a letter from the telecommunications ministry requesting its views on the strategy. One high-ranking finance official, who remained anonymous, pointed out that spectrum sales generate significant income for the state. This official informed The Business Standard that the proposal would be examined prior to the ministry issuing an opinion. When making a decision, the government will weigh its financial gains against the affordability and quality of mobile services.
For Grameenphone, Banglalink, and Robi, the suggested per-megahertz rates (not counting VAT or income tax) are Tk316 crore for the 900MHz band, Tk264 crore for the 1800MHz band, and Tk229 crore for the 2100MHz band. At present, the 1800MHz and 900MHz bands are priced at Tk263 crore per MHz, whereas the 2100MHz band is currently Tk245.9 crore per MHz.
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According to the letter, extending the allocation period would result in a higher total cost. To reduce the impact on the cash flow of operators, the plan suggests raising the installment count to 12 from 10. The initial payment would be due 30 days after the renewal notice is issued, with the second payment following within 180 days. The final 10 payments would be made every year, and any late payments would incur a 15% annual penalty.
Mobile network operations rely on spectrum, which comprises the radio frequencies that allow towers to send messages, data, and voice calls to mobile devices. Managed by the BTRC, this spectrum is state-owned. To offer 5G, 4G, 3G, and 2G services throughout the nation, mobile companies pay for the use of specific frequency bands.
Upcoming Renewals and Official Response
On 10 November, a total of 79.2MHz of spectrum must be renewed by Banglalink (24.4MHz), Robi (22.4MHz), and Grameenphone (32.4MHz). The licenses they currently hold end on 10 March 2039. While BTRC representatives anticipate that operators will renew upon expiration, they noted that any spectrum allocation lasting longer than the license period would need additional scrutiny.
