Dhaka:Mobile network operators in Bangladesh have appealed to the government to further rationalize spectrum renewal costs and associated charges, emphasizing that exorbitant prices could hinder investment in network expansion, service quality, and nationwide connectivity.
According to United News of Bangladesh, at a press meet held at the Association of Mobile Telecom Operators of Bangladesh (AMTOB) office in Banani, industry leaders highlighted that the proposed spectrum valuation is significantly higher than international and Asia-Pacific market norms when assessed against sector revenues and market realities.
During the event, moderated by Lt Col Mohammad Zulfikar (retd), speakers including Taimur Rahman from Banglalink, Tanveer Mohammad from Grameenphone, and Shahed Alam from Robi Axiata PLC expressed that spectrum policy should align with broader national goals such as digital inclusion, network expansion, innovation, and affordable connectivity, while balancing government revenue and the telecom sector's long-term sustainability.
They pointed out that spectrum-related costs in Bangladesh make up a larger share of operators' revenues compared to Asia-Pacific and global averages, creating pressure on an industry facing stagnant revenues, low average revenue per user (ARPU) growth, rising operating costs, and ongoing investment needs. The operators have already invested heavily in spectrum acquisition and network expansion and will need to continue investing to meet increasing data consumption and future technology needs.
Excessive spectrum costs could restrict their ability to expand coverage, improve service quality, and enhance network resilience and customer experience, the speakers added. They also emphasized that future spectrum requirements would increasingly hinge on data traffic growth and network capacity rather than merely the spectrum amount assigned, suggesting valuation frameworks that consider capacity needs, network efficiency, digital demand, and socio-economic benefits.
The proposed extension of spectrum license tenure was deemed a positive step towards ensuring certainty for long-term investment planning, with its benefits dependent on an investment-friendly commercial framework aligned with international best practices.
Taimur Rahman highlighted that spectrum is crucial for ensuring service quality, network capacity, and national coverage, amid rapidly growing demand as Bangladesh transitions from voice to data services. He urged the government to adopt a comprehensive view of spectrum pricing, acknowledging its role in digital transformation, economic growth, and long-term national development.
Tanveer Mohammad expressed gratitude towards BTRC for adopting a structured renewal process and engaging constructively with operators. However, he criticized the proposed fees for a 20-year spectrum license, arguing against proportionate scaling based on a 15-year license, citing that the economic value of additional years diminishes due to technological changes, market shifts, and investment risks. He advocated for a rational renewal price using an appropriate valuation methodology and flexible payment terms.
Shahed Alam called for assessing spectrum affordability considering industry revenues, investment capacity, and the need for continued network expansion. He emphasized that a balanced and investment-friendly framework would aid operators in improving service quality, expanding connectivity, and accelerating digital inclusion as the digital economy grows.
The speakers concluded that a pragmatic approach to spectrum pricing and license tenure would benefit consumers, the government, and the telecom industry by supporting connectivity, innovation, and the country's digital economy goals.