Farruk Khosru :
The government has indicated that it may offer a conditional price reduction of up to 10 per cent for the upcoming 700MHz spectrum auction to stimulate investment and technological progress in the country’s telecommunications sector.
It has also defended the use of a dollar-based pricing benchmark, describing it as a practical and realistic approach.
In response to concerns from global investors regarding the auction criteria for the 700MHz band, the government has provided clarifications addressing key issues.
A letter outlining these points was sent on Tuesday by Faiz Ahmed Tayyab, Special Assistant to the Chief Adviser, who currently oversees the Ministry of Posts, Telecommunications, and Information Technology.
Earlier on 16 March, major investors from Grameenphone, Robi, and Banglalink sent a letter to Faiz Ahmed Tayyab expressing their concerns.
In reply, Tayyab acknowledged the slow adoption of devices supporting the 700 MHz band and indicated that the government is open to a reasonable price reduction of between 5 per cent and 10 per cent.
However, any reduction will be contingent on operators committing to infrastructure development, quality service delivery, and competitive pricing policies.
Addressing concerns over spectrum pricing, Faiz Ahmed Tayyab pointed out that the Bangladeshi Taka has depreciated by approximately 40 per cent against the US dollar in the past three years.
Considering this devaluation, he stressed that the current spectrum valuation remains consistent with market conditions.
“Bangladesh’s telecom sector has substantial foreign ownership, with investor companies typically remitting their profits in US dollars. A dollar-based spectrum valuation helps mitigate exchange rate risks and aligns with international standards,” said Tayyab.
The letter also addressed concerns regarding the limited availability of spectrum. Although only 25 (2×25) MHz of the 45 (2×45) MHz band is being offered in the auction, the government is considering releasing the remaining spectrum in a manner that is both technically and commercially feasible.
Describing the 700 MHz band as a premium frequency for 4G and 5G services, Faiz Ahmed Tayyab highlighted its wide coverage and low frequency, which make it ideal for expanding these networks. Currently, about 50 per cent of 4G-enabled devices support the 700 MHz band.
To accelerate the adoption of compatible devices, the Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to prohibit the sale of new mobile handsets unless they support the 700MHz band.
This policy is expected to significantly increase the availability of 700 MHz-compatible devices in the coming months, aiding the rollout of 5G services and improving digital connectivity.
The letter also pointed to disparities in spectrum utilisation across frequency bands. While low-frequency bands have a usage rate of 84 per cent to 98 per cent, high-frequency bands are only used at rates between 7 per cent and 18 per cent.
This imbalance suggests that expected capacity gains from high-frequency bands have yet to be realised due to gaps in the deployment of essential infrastructure, such as baseband and radio resource units.
As a result, service quality remains inconsistent, with users experiencing slow internet speeds, unstable connections, increased call drops, and poor overall performance. Furthermore, the high cost of internet packages continues to hinder broader internet adoption.
Tayyab also criticised the short validity period of national internet packages, which has faced widespread public criticism.
He suggested that this policy may represent a deliberate effort by operators to limit internet usage growth artificially.
Reaffirming the government’s commitment to maximising spectrum as a national resource, Faiz Ahmed Tayyab stated that efforts will focus on ensuring continuous capacity expansion through infrastructure development, reducing internet costs, and tackling digital inequality.
The government intends to collaborate with all stakeholders to implement the necessary measures.
The letter underscores the government’s strategic goal of fostering a robust digital ecosystem by improving spectrum management, enhancing service quality, and making digital connectivity more accessible to all citizens.
