The leading operator in Bangladesh, Grameenphone, has secured 10 megahertz of spectrum in the 700MHz band, marking the first-ever allocation of the low-band frequency to a mobile operator in Bangladesh. It was, apparently, the sole buyer.
The spectrum was assigned at the base price, meaning the government will earn BDT23.7 billion (about US$193.8 million) from the deal, at a rate of BDT2.37 billion (US$19.38 million) per megahertz. The allocation will run for 15 years, with payments spread over 10 instalments.
As local news resource the Daily Star points out, 700MHz offers wide coverage and strong indoor reach. So why the limited interest? Rival operator Robi Axiata apparently withdrew from the auction, citing a ‘mismatch’ between the auction timing and its network priorities. Banglalink and state-owned Teletalk took no part in the sale.
Despite the thin turnout, the regulator, the Bangladesh Telecommunication Regulatory Commission (BTRC), went ahead, saying that preparations had been underway since 2024. It also said Robi had shown interest in spectrum from another band, which could be taken up later.
It seems, however, that BTRC has expected only one bidder for while. Earlier this month it cut the maximum spectrum cap for a single operator to 10 megahertz from 15, out of a total 25 MHz on offer, apparently to protect competition and keep room for other operators in the future.
But this may not be the end of the matter. The Financial Express newspaper says that final regulatory approval has not yet been granted and will require endorsement at BRTC's next meeting. It also questions how the regulator has justified the partial release of the band with so much still being disputed in court – notably the 20MHz of spectrum apparently still unavailable due to a long-running legal dispute between BTRC and broadband service provider AlwaysOn Network. There was also, reportedly, operator unhappiness with the proposed base price.
The paper even claims that the High Court has issued a rule questioning the legality and constitutionality of proceeding with the 700MHz auction when only one operator remains in contention, albeit allowing the auction process to continue for now.
It also suggests that Robi Axiata has criticised the introduction of a provision allowing spectrum to be assigned at the base price if there is no competitive bidding.
Robi and other operators had apparently urged BTRC to auction all available low-band spectrum together, in line with international best practice. Instead, BTRC proceeded with a standalone 700MHz auction that has benefited one operator.
Amid this uncertainty, Grameenphone seems happy with what it has. The Daily Star quotes Tanveer Mohammad, chief corporate affairs officer of the company, as saying that the operator holds a limited amount of low-band spectrum relative to its subscriber base and that securing the 700MHz band was essential to meet growing data demand.
