The telecom regulator is seeking to raise the spectrum renewal bill for Grameenphone, Robi and Banglalink to around Tk 21,250 crore under a revised plan to extend their licence period to 20 years.
The move comes as the operators’ existing licences are due to expire on November 10.
The revised bill, sent to the Posts and Telecommunications Division for approval last month, is 62 percent higher than the amount recommended in an earlier proposal for a licence period of 12 years and four months. The Daily Star has obtained copies of the proposals.
In its earlier proposal made on October 15, the regulator had recommended cutting spectrum prices by 10-30 percent, bringing the total renewal cost to around Tk 13,100 crore.
The latest proposal extends the tenure while retaining the earlier proposed annual rates, raising the overall bill. The extension follows operators’ calls for longer licence periods, arguing that greater regulatory certainty would support long-term investment and network expansion.
The proposal covers 79.2 megahertz (MHz) of spectrum in the 900MHz, 1800MHz and 2100MHz bands held by the three operators.
Mobile operators use spectrum to carry calls and internet data between mobile phones and their networks. Spectrum is allocated in different frequency bands.
Lower-frequency bands, such as 900MHz, generally provide wider coverage and better indoor connectivity, while higher-frequency bands, such as 2100MHz, can support greater data capacity in areas with heavy network traffic.
Under the latest proposal, the renewal price for the 900MHz band is Tk 316 crore per MHz for 20 years, compared with Tk 195 crore for the previous period of 12 years and four months.
For the 1800MHz band, the price would rise to Tk 264 crore per MHz from Tk 162.8 crore, while the rate for the 2100MHz band would increase to Tk 229 crore from Tk 141.4 crore.
The increase largely reflects the longer tenure, as the annual rate per MHz remains unchanged. The previously proposed 10-30 percent discounts against the allocation prices have been retained.
The BTRC has proposed payment in 12 instalments, compared with eight under the earlier plan. The first would be payable within 30 days of the renewal notice and the second within the following 180 days, with the rest paid annually.
Operators would also continue paying the annual spectrum charge throughout the extended period. A late fee of 15 percent a year would apply to overdue instalments.
BTRC’S RATIONALE
In a letter to the Posts and Telecommunications Division last month, the BTRC said efficient use of spectrum over a longer period was important to meet growing demand for mobile services.
It said Bangladesh had high mobile traffic density and might need around 1,623MHz of spectrum by 2035. Spectrum renewal and fresh allocation would also be required almost every year over the next six and a half years, beginning with spectrum for 5G services in 2027.
OPERATORS WANT FURTHER PRICE CUTS
The Association of Mobile Telecom Operators of Bangladesh (AMTOB) welcomed the longer tenure but challenged the pricing methodology.
In a letter to the BTRC chairman on October 25, it said the revised prices appeared to have been calculated by proportionately extending the earlier rates rather than reassessing the cost for a longer licence period.
The association sought further cuts in base prices, 20 equal annual instalments and withdrawal of the annual spectrum charge.
Shahed Alam, chief corporate and regulatory officer of Robi, said determining the pricing through straightforward linear pro-rata scaling has no economic basis and is inconsistent with international practice. “The multiplier applied is arbitrary and departs from the findings of the consultant appointed by BTRC itself.”
Maj Gen (retd) Md Emdad Ul Bari, chairman of BTRC, has defended the pricing as study-based. He said the regulator aims to sell at least 80 percent of the spectrum available for renewal, as excessive prices could leave some spectrum unsold and reduce revenue.
Source: https://www.thedailystar.net/business/economy/news/btrc-seeks-tk-21250cr-spectrum-renewal-4313996
