Mobile operators in Bangladesh have called on the Bangladesh Telecommunication Regulatory Commission (BTRC) to further lower the proposed prices for spectrum licence renewals, citing concerns that current costs are significantly higher than international averages and may hinder investment in network infrastructure and service quality. The renewal affects a total of 79.2 MHz of spectrum held by Grameenphone, Robi Axiata, and Banglalink, with licences due to expire on November 10. The affected frequency bands include 900 MHz, 1800 MHz, and 2100 MHz.

The Association of Mobile Telecom Operators of Bangladesh (AMTOB), representing the country’s major mobile operators, has urged the regulator to reconsider the pricing methodology. In a letter sent to BTRC on October 25, AMTOB requested further price cuts beyond the regulator’s recent proposal to reduce renewal fees by 10-30%. The association highlighted that the spectrum costs in Bangladesh currently amount to approximately 15.7% of mobile operators’ revenue, more than double the global average of 7.7% and considerably higher than the 10.4% average in the Asia-Pacific region.

While the BTRC's proposed cuts could lower the total renewal cost from Tk16,845 crore to around Tk13,100 crore, AMTOB argued that the pricing approach does not fully account for long-term investment considerations. The commission has recommended extending licence terms to 20 years, but the association contended that this extension should not lead to a proportional increase in fees. AMTOB emphasized that pricing should incorporate factors such as discounted cash flow, inflation, market uncertainties, technological development, and investment risks, rather than relying on a simple arithmetic extension of existing prices.

AMTOB also proposed payment terms that include 20 equal annual installments without any price revision during the licence period and called for the withdrawal of annual spectrum charges altogether. The association said these measures would promote greater regulatory certainty and facilitate investment in network expansion, modernisation, and adoption of new technologies, ultimately improving connectivity and service quality for consumers.

The BTRC’s pricing proposal, based on a recent study examining projected income, engineering costs, international benchmarks, and broader economic impacts, has been submitted to the government for final approval. The study warned that excessively high spectrum fees could discourage operators from renewing or acquiring spectrum, potentially impacting network investment and government revenue. It noted that Bangladesh's recent spectrum auctions, such as the one for the 2.3 GHz and 2.6 GHz bands in 2022, were priced significantly higher than comparable auctions in neighboring countries like India and Pakistan.

Industry stakeholders have also pointed to the consequences of high spectrum costs on key sectors reliant on mobile connectivity, including mobile financial services, e-commerce, education, and healthcare, highlighting the broader economic implications of the pricing decisions currently under review. The final decision on spectrum renewal prices and terms is expected ahead of the November 10 licence expiration deadline.