Dhaka: The GSM Association (GSMA), representing over 1000 mobile operators and related businesses globally, has called on the Bangladesh government to significantly reduce unit spectrum renewal prices by 50 to 75 percent. This proposed reduction is projected to generate between US$ 34 billion and US$ 45 billion in cumulative economic benefits for the nation by 2035.
According to Bangladesh Sangbad Sangstha, the recommendation was made in a letter by Jeanette Whyte, Head of Public Policy and External Affairs for the Asia-Pacific region at GSMA, addressed to Faqir Mahbub Anam, the Minister of Posts, Telecommunications and Information Technology. The proposed reductions are in anticipation of the spectrum renewal in the 900 MHz, 1800 MHz, and 2100 MHz bands, scheduled for November 2026.
The letter outlines that a 50 percent price reduction could yield approximately US$ 34 billion in benefits by 2035, consisting of US$ 20 billion from improved 4G quality and US$ 15 billion from an accelerated 5G rollout. A deeper cut of 75 percent could potentially raise the benefits to US$ 45 billion, with US$ 26 billion attributed to 4G advancements and US$ 19 billion to 5G acceleration.
The GSMA warns that maintaining current pricing levels could escalate spectrum costs to about 21 percent of operators' recurring revenues by 2035. An analysis from GSMA Intelligence in 2025 on spectrum pricing in Bangladesh reveals that the spectrum cost burden currently accounts for 15.7 percent of operators' recurring revenues, which is significantly higher than the Asia-Pacific median of 10.4 percent and the global median of 7.7 percent.
Furthermore, combined taxes and fees on the telecom sector in Bangladesh amount to 55 percent of operator revenue, more than double the Asia-Pacific average of 24 percent and the global average of 22 percent. The Mobile Average Revenue Per User (ARPU) in Bangladesh is amongst the lowest in the region, standing at approximately US$ 1.21 per connection as of June 2026.
The letter highlights a concerning trend between 2014 and 2023, where inflation-adjusted revenue per mobile connection in Bangladesh dropped by 38 percent, and revenue per MHz plummeted by 69 percent. It emphasizes the need for the renewal framework to reflect current market conditions rather than historical pricing, advocating for substantial price reductions to boost affordability and investment in coverage, quality, and new technologies.
Over the past five years, spectrum prices in Bangladesh have exceeded international benchmarks by significant margins: 41 percent higher in the 900 MHz band, 66 percent in the 1800 MHz band, and 61 percent in the 2100 MHz band. The weighted average premium across these bands surpasses benchmarks by over 55 percent.
The GSMA argues that spectrum renewal is distinct from assigning new spectrum, as the renewed spectrum is already in use, ensuring continuity of existing services rather than creating new economic value for operators. It describes spectrum payments as regulatory fees for access to a public resource rather than commercial service purchases.
For the November 2026 framework, GSMA recommends aligning unit renewal prices with regional and global medians by reducing them by 50 to 75 percent, extending license validity to at least 20 years for investment certainty, abolishing the 7.5 percent VAT on spectrum payments, rationalizing annual charges to reflect actual spectrum management costs, and maintaining local-currency pricing with flexible installment terms.
The letter acknowledges progress made since 2022, including the adoption of local-currency pricing and a shift toward installment payments. GSMA links its recommendations to the new Government's Vision 2030, emphasizing that high renewal fees hinder infrastructure expansion, 4G quality, and 5G deployment.
Citing regional examples, the letter notes that Vietnam significantly reduced reserve prices by nearly 80 percent after a failed 2023 auction, achieving about 90 percent 5G coverage by early 2026. Meanwhile, despite price cuts of 55-52 percent in Pakistan's 2026 auction, spectrum remained unsold. In contrast, Indonesia's cautious pricing strategy expanded spectrum supply by 60 percent, securing 50 percent 5G coverage within five years and providing 4G access to over 500 rural villages.