Teletalk receives new spectrum despite Tk 55b in outstanding dues

State-owned mobile operator Teletalk Bangladesh Limited owes more than Tk 55 billion (5500 crore) to the Bangladesh Telecommunication Regulatory Commission (BTRC) in spectrum charges, licence fees and other dues.

Despite failing to clear those liabilities for years, the operator is now set to receive an additional 10 MHz of spectrum.

At its latest commission meeting, the BTRC decided to allocate the spectrum from the 700 MHz band to Teletalk.

By contrast, private operators Robi Axiata Limited and Banglalink withdrew from the same spectrum auction after alleging that the prices were excessively high.

Industry insiders say regulators apply rules differently in Teletalk’s case. The operator has reportedly failed to pay for spectrum acquired through auctions, left licence fees unpaid, and ignored revenue-sharing obligations despite existing regulations. As if BTRC is an indulgent kin of Teletalk. The allocation of the valuable 700 MHz band spectrum now adds to that perception.

According to decisions taken at the BTRC’s latest commission meeting, regulators fixed the price of each megahertz of spectrum at Tk 2.37 billion (237 crore) for a 15-year term.

As a result, the total value of the 10 MHz spectrum amounts to Tk 23.7 billion (2370 crore).

However, Teletalk will not need to pay the amount directly. Instead, the government will treat the value as an “equity investment”.

In other words, authorities will convert the outstanding dues into a government ownership stake rather than treating them as repayable debt.

In addition, the government will also treat 10 per cent of the first instalment of the total charges — a prerequisite for spectrum allocation — as an “equity investment”.

The spectrum allocation will remain valid until the expiry of Teletalk’s existing cellular mobile service operator licence in 2039.

BTRC Chairman Emdad ul Bari told Prothom Alo, “The government has committed to converting Teletalk’s outstanding dues into equity investment. On that basis, we are allocating new spectrum to Teletalk.”

Operators use spectrum from the 700 MHz band to provide broader network coverage across large areas. Telecommunications experts say the band is also highly effective at penetrating walls and delivering signals indoors.

Because operators can expand 5G services in rural and highway-adjacent areas with fewer towers, demand for this spectrum band remains high.

According to BTRC data, Bangladesh has a total of 45 MHz of spectrum in the 700 MHz band available for mobile services.

Of that amount, 20 MHz remains tied up in legal complications. The BTRC auctioned the remaining 25 MHz in January this year.

Regulators fixed the price at Tk 2.37 billion (237 crore) per megahertz. Robi and Banglalink declined to participate in the auction because of the high cost.

As the sole bidder, Grameenphone secured 10 MHz of spectrum. Following the latest allocation of another 10 MHz to Teletalk, only 5 MHz now remains available for the other two operators.

Experts said that the move could disrupt competitive balance in the telecommunications market.

BM Mainul Hossain, director of the Institute of Information Technology at the University of Dhaka, told Prothom Alo, “Maintaining competitive balance in the market is important. If sufficient spectrum does not remain available for other operators in future, a monopoly situation could emerge in the market. Ordinary consumers would ultimately suffer as a result.”

He added, “As a state-owned institution, Teletalk may require government support. However, authorities should first have evaluated how effectively the company utilised previously allocated spectrum and what improvements resulted from it before making a new decision. Allocating additional spectrum without ensuring the effectiveness of earlier allocations raises questions about the justification for the move.”

Technology policy consultant Abu Nazam Md Tanveer Hossain also expressed similar concerns.

He said Teletalk already holds a significantly larger amount of spectrum relative to its subscriber base compared with private operators.

Therefore, he argued that authorities must ensure transparent planning and accountability before granting further allocations; otherwise, the telecommunications sector could face long-term harm.

Teletalk Bangladesh Limited began operations in 2005. At the time, private mobile operators charged high call rates, which led to long queues of customers seeking to purchase Teletalk SIM cards.

However, over time, the state-owned operator fell behind in market competition.

According to data from the Bangladesh Telecommunication Regulatory Commission (BTRC), Teletalk currently holds a total of 55.2 MHz of spectrum across the 900 MHz, 1800 MHz, 2100 MHz and 2300 MHz bands.

Although the operator purchased 30 MHz of spectrum in the 2300 MHz band in 2022, it has yet to begin using that spectrum.

The BTRC states that Teletalk currently has just over 6.8 million (68 lakh) subscribers. Based on that figure, the operator holds approximately 0.81 MHz of spectrum for every 100,000 subscribers.

By comparison, the corresponding ratio stands at 0.16 for Grameenphone, 0.22 for Robi Axiata Limited and 0.21 for Banglalink.

In other words, relative to its subscriber base, Teletalk possesses several times more spectrum than the other operators.

Industry insiders say that, despite this advantage, Teletalk remains far behind private operators in network coverage, subscriber numbers and revenue generation.

Among the country’s mobile operators, Grameenphone and Robi consistently generate profits. Banglalink does not publicly disclose its financial statements. Teletalk, however, has continued to incur losses year after year.

In its published board report for the 2023–24 financial year, the operator stated that it incurred losses amounting to Tk 1.8 billion (180 crore) during that period.

Responding in writing to a question from Prothom Alo, Teletalk official Md Golam Morshed said, “The new spectrum should not be viewed solely as a commercial asset. It is being considered a strategic and competitive investment for the development of the country’s state telecommunications infrastructure.”

Golam Morshed further stated, “The government’s treatment of the new spectrum as an ‘equity investment’ may be regarded as a long-term initiative to strengthen the national telecommunications infrastructure.”