The telecom regulator aims to auction spectrum in the 700 MHz band this year to support the expansion of 4G and roll out 5G networks in the country.

To ensure a smooth process, the Bangladesh Telecommunication Regulatory Commission (BTRC) has formed a committee to draft auction guidelines, set the base price for the spectrum, and engage with mobile operators.

The 700 MHz band (703-748/758-803 MHz) is crucial for mobile broadband expansion, especially in rural areas.

Many large and densely populated countries have already allocated this band for mobile services, and most nations are now adopting it.

Given the growing demand for mobile connectivity, Bangladesh needs to allocate this spectrum to improve network coverage and service quality.

Once the guidelines are approved, the BTRC will hold discussions with mobile operators and move forward with the auction.

The BTRC aims to complete the auction in 2025, allowing mobile operators to enhance network coverage and service quality.

This initiative aligns Bangladesh with global trends in spectrum allocation, ensuring better mobile for users across the country, according to BTRC's documents.

Although the 700 MHz band has 45 MHz of allocable spectrum, 12 MHz (6+6 MHz) was previously assigned to an ISP named Alwayson Network Bangladesh Internet.

However, the allocation was later revoked. This led to a legal dispute, with the case still pending in court.

As such, 20 MHz of the spectrum cannot be auctioned until the case is resolved.

However, the remaining 25 MHz can be allocated without any legal restrictions, according to the BTRC's documents.

The telecom regulator has set the price at Tk 263 crore per MHz, but mobile operators are unhappy with that decision so further negotiations are anticipated in this regard.

To conduct the auction, BTRC has formed a committee comprising key officials from the commission and the telecom division.

"Ideally, mobile operators should be consulted during the process of setting the base price and drafting the auction guidelines, rather than after everything has been finalised," said a spectrum policy expert, wishing to remain anonymous.

"Otherwise, the consultation becomes a mere formality, with little room for meaningful input."

On January 30, GSMA, a global organisation representing mobile network operators, sent a letter to the BTRC about the 700 MHz auction.

In the letter, GSMA said, as per the spectrum roadmap released by the BTRC in October last year, 2x45 MHz in this band is planned to be available in 2025.

"However, we understand BTRC's current plan is to auction only 2x25 MHz. This raises concerns about artificial scarcity," it said.

"This limited supply of spectrum for auction is likely to drive spectrum prices higher and restrict operators' ability to acquire sufficient spectrum."

With only 2x25 MHz, the assignments are likely to be fragmented and sub-optimal (e.g., 10 MHz or 5 MHz) for achieving the desired productivity and efficiency for 4G or 5G, it said.

Considering that there are three operators in Bangladesh, the investment in this band may not deliver the anticipated benefits, without at least 10-15 MHz per operator for optimal network performance, it added.