BTRC Advances Revised Spectrum Renewal Plan Worth Tk 21,250 Crore for Major Mobile Operators

The revised plan covers 79.2MHz across three bands, with operators welcoming longer licence terms but seeking lower prices and more flexible payments.

TO GO WITH Lifestyle-Bangladesh-telecom-language-media-BBC by Shafiq Alam In a picture taken on December 9, 2009 Bangladeshi pedestrians speak on their cellular telephones as they walk through a commercial district in Dhaka. Hundreds of thousands of young men have "swamped" the novel English teaching service since it was launched last month by a charity arm of the BBC. The aim is to teach the language to six million people by 2011. It is also easily accessible via all six of Bangladesh's mobile phone operators whose networks cover almost the entire population. Called Janala (window), the teaching programme allows students to take a lesson in conversation, pronunciation and basic English and involves them dialing in five days a week for 18 months. AFP PHOTO/Munir uz ZAMAN Photo credit should read MUNIR UZ ZAMAN/AFP via Getty Images

Bangladesh's telecommunications regulator has moved forward with a substantially revised proposal for renewing spectrum rights held by the country's three leading private mobile operators. The Bangladesh Telecommunication Regulatory Commission (BTRC) is seeking government approval for a package estimated at around Tk 21,250 crore, tied to new 20-year licence periods. The plan covers spectrum currently used by Grameenphone, Robi and Banglalink, whose existing authorisations are scheduled to lapse in early November.

The spectrum in question totals 79.2 megahertz across three important frequency bands—900 MHz, 1800 MHz and 2100 MHz. These bands form the backbone of voice and mobile data services for tens of millions of subscribers. Lower-frequency airwaves help operators reach wider areas and improve indoor signal strength, while higher bands support heavier data traffic in cities. Under the latest recommendation, the combined renewal cost is notably higher than an earlier version that had placed the figure near Tk 13,100 crore for a shorter remaining term of roughly twelve years and four months. Regulators say the jump mainly reflects the longer duration rather than a sharp increase in the underlying annual rate per megahertz. Previously suggested discounts of 10 to 30 percent relative to older pricing benchmarks have largely been retained.

Payment terms have also been adjusted. The commission has proposed allowing operators to clear the amount in twelve instalments instead of the eight suggested before. The first payment would fall due within thirty days of any formal renewal notice, with the second following within the next six months and the remainder spread annually. Operators would still face the regular annual spectrum charge throughout the extended period, and delayed instalments would attract a late-payment fee.

Industry representatives have responded with mixed views. Through their association, the operators have described the move to 20-year terms as a positive step that gives greater certainty for long-term network planning and investment. At the same time, they have asked for deeper reductions in base prices. They argue that simply extending earlier rates over a longer period does not adequately reflect the commercial realities of a two-decade commitment. They have also requested the option of twenty equal annual instalments and the withdrawal of the recurring annual spectrum charge. Industry figures point out that spectrum already accounts for a high share of operator revenue in Bangladesh compared with many other markets, which can constrain spending on towers, fibre and quality upgrades.

BTRC officials maintain that the proposed rates rest on independent consultant analysis that examined projected cash flows, engineering costs, international benchmarks and wider economic effects. The regulator has indicated a desire to see the bulk of available spectrum taken up, warning that prices set too high could leave frequencies unsold and reduce both operator investment and public revenue. Officials note that mobile traffic density is already high and that the country is expected to need substantially more spectrum by the middle of the next decade, including additional allocations linked to 5G services.

The outcome of the current proposal will influence several practical areas. Longer, more predictable licences can encourage operators to commit capital to network expansion, particularly in areas where coverage or capacity remains uneven. At the same time, the size of the renewal bill will affect operators' ability to invest while also determining the government's direct income from spectrum over the coming years. With data usage continuing to rise and policymakers aiming for broader high-speed connectivity, the balance struck between revenue and investment incentives will shape the pace of service improvements for consumers.

The revised plan is now with the relevant ministry for consideration. Final approval, any further adjustments, and the exact payment schedule will determine how quickly the three operators can lock in their spectrum holdings and proceed with the next phase of network development. As the November expiry date approaches, both the industry and the regulator face pressure to reach a workable agreement that supports continued growth in mobile services without creating undue financial strain.