Mobile operators seek lower spectrum renewal costs

Mobile network operators in Bangladesh have urged the government to further rationalise spectrum renewal fees and related charges, warning that high prices could hamper investment in network expansion, service quality and nationwide connectivity. 

Speaking at a press meet at the Association of Mobile Telecom Operators of Bangladesh (AMTOB) office in Dhaka on Wednesday, industry leaders said the proposed spectrum valuation remains significantly above international and Asia-Pacific benchmarks when measured against sector revenues and market realities.

The operators appreciated the Bangladesh Telecommunication Regulatory Commission (BTRC) for its stakeholder engagement during the renewal process. They also stressed that the current proposed valuation should not set the prevailing benchmark for spectrum renewal. 

Banglalink Chief Corporate and Regulatory Affairs Officer Taimur Rahman, Grameenphone Chief Corporate Affairs Officer Tanveer Mohammad and Robi Axiata PLC Chief Corporate and Regulatory Officer Shahed Alam spoke at the event moderated by Lt Col Mohammad Zulfikar (retd).

The speakers noted that spectrum costs in Bangladesh consume a much larger share of operator revenues than global and Asia-Pacific averages. 

Although operators have already invested heavily in spectrum and networks, they must invest further to meet rising data consumption and future technology needs. They also warned that excessive costs could curb coverage expansion, service quality, network resilience and customer experience.

As future spectrum needs will increasingly depend on data traffic growth, the operators called for valuation frameworks reflecting capacity needs, network efficiency, digital demand and socio-economic benefits. 

They also welcomed the proposed extension of spectrum licence tenure, provided it is backed by an investment-friendly commercial framework aligned with global best practices.

Noting that spectrum demand is rising rapidly, Taimur Rahman said pricing must reflect current realities with significantly lower unit prices. This will help to sustain investments in spectrum acquisition, network expansion and service quality. 

He urged the government to look beyond immediate revenue and take a holistic view. And urged to recognise spectrum's role in digital transformation, economic growth and long-term national development.

Source: UNB