Bangladesh’s mobile operators are facing large spectrum renewal payments at a time when they are also under pressure to expand network capacity and improve services.
Industry representatives argue that high spectrum costs leave less capital available for network investment, while the government views spectrum as a valuable public resource and an important source of non-tax revenue.
Regional comparisons suggest Bangladesh’s spectrum prices are high, although differences in frequency bands, auction systems and payment terms make direct comparisons difficult.
Bangladesh priced 2.3GHz and 2.6GHz spectrum at around $6 million per MHz in its 2022 auction.
In comparison, India priced its 3.3GHz spectrum at around $1.8-2.1 million per MHz, while Pakistan priced 2.3GHz and 2.6GHz spectrum at around $1-1.25 million per MHz.
Indonesia and Sri Lanka have also reported lower prices for selected bands.
The difference becomes more significant when spectrum costs are measured against operators’ revenues rather than the price per MHz alone.
According to GSMA Intelligence, spectrum fees account for around 16% of operators’ recurring revenue in Bangladesh, compared with 10% in Asia-Pacific and 8% globally.
Including other taxes and levies, the broader fiscal burden on Bangladesh’s mobile market reaches about 55% of market revenue.
An industry valuation benchmark also found that local spectrum prices are four to six times higher than those in Nordic markets after adjustments for market size and structure.
The GSMA has previously linked rising spectrum cost-to-revenue ratios with weaker network outcomes.
Its analysis found that across Asia-Pacific, the ratio increased from 3% in 2014 to 9% in 2023, while a 10-percentage-point increase was associated with a 6-percentage-point decline in coverage and an 8-percentage-point drop in network speeds.
The analysis does not establish causation, but highlights the investment implications of spectrum pricing.
Direct comparisons remain difficult because spectrum bands, licence periods, auction structures and payment arrangements differ between countries.
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