700 MHz spectrum going up for auction, how much will service quality improve?

Customer dissatisfaction with the quality of the country’s mobile network and internet services is nothing new. More than 1,500 complaints were submitted at last month’s public hearing held by the Bangladesh Telecommunication Regulatory Commission (BTRC).

Customers highlighted various issues, including operator misconduct, excessive charges, and persistent network problems.

Amid these concerns over service quality, the BTRC has decided to auction spectrum in the 700 MHz band, known in the telecommunications sector as “golden spectrum.” The auction will take place on 14 January.

Faiz Ahmad Taiyeb, special assistant to the chief adviser on posts, telecommunications and ICT, described the move as “good news.” In a Facebook post, he wrote, “The 700 MHz band is a highly strategic national asset.”

“Due to long-standing complications and obstacles, this frequency resource, worth at least Tk 110 billion (Tk 11,000 crore), had remained unused. The BTRC, the Posts and Telecommunications Division, and the Ministry of Finance have worked together to remove these barriers,” he added.

Faiz Ahmad Taiyeb further wrote that in a densely populated country like Bangladesh, this band will play a key role in expanding 4G and 5G coverage, extending networks in both urban and rural areas, and improving indoor connectivity. As this low-frequency band can deliver high-speed internet across vast areas with fewer towers.

According to global mobile operators’ organisation, GSMA, spectrum refers to the various sections of electromagnetic waves used for mobile voice calls, internet services, and other wireless connections. Each frequency band has distinct characteristics.

The 700 MHz band is widely used globally to provide strong coverage over large areas. Telecom experts say its key advantage lies in its ability to penetrate walls and deliver strong indoor signals. It also allows operators to cover vast rural and areas close to the highway using fewer towers.

According to GSMA website, the 700 MHz band, due to its lower frequency, can cover a much larger area under a single cell site. It is essential for expanding services to rural and remote regions. Compared to higher-frequency bands, it requires fewer base stations, reducing deployment costs and enabling affordable broadband access for customers.

Telecom expert Sumon Ahmed Sabir told Prothom Alo, “One of the greatest advantages of low-frequency bands is building penetration, they can travel through walls and reach deep indoors. In densely populated cities such as Dhaka, it will greatly enhance indoor coverage, voice calls, and internet experience.”

Calling it a “game changer” for rural connectivity, Sumon Ahmed added that the 700 MHz band can cover an area of five to ten kilometres. That means a single BTS can provide five to ten times the coverage compared to higher-frequency bands. It is the most cost-effective option for connecting villages, chars (island), hill districts, and border regions.

According to BTRC sources, the regulatory commission initially did not fully realise the value of this band. In 2007, the spectrum, highly essential for mobile operators, was allocated to an internet service provider (ISP) named AlwaysOn Network Bangladesh Ltd (AONB).

However, the allocation letter had a condition that the licence would be cancelled if the band became strategically important.

Once BTRC understood the significance, it revoked the allocation. The ISP then went to court, leading to prolonged legal complications that stalled the auction process. On 23 November, the BTRC finally announced that the auction would be held on 14 January next year.

BTRC officials say that out of 45 MHz available, 20 MHz remains under legal dispute. Therefore, 25 MHz will be auctioned for now. If the court resolves the pending issue before the auction, action will be taken to offer the entire 45 MHz.

According to BTRC documents, the base price for the 700 MHz band has been set at Tk 2.37 billion (Tk 237 crore) per MHz, with a licence tenure of 15 years. To participate, operators must pay a non-refundable application fee of Tk 1.5 million (Tk 15 lakh) and a bid deposit of Tk 1 million (Tk 10 crore). The 25 MHz will be auctioned in five blocks.

However, the country’s three private mobile operators, Grameenphone, Robi, and Banglalink, are dissatisfied with the price. They argue that the base price is higher than international benchmarks. Such a high rate, they say, will increase financial pressure, and some have even expressed reluctance to participate.

Last month, the three operators jointly wrote to the BTRC requesting a price reduction. They stated that the evaluation of the 700 MHz band has been equated with the 900 MHz and 1800 MHz bands, even though their commercial conditions are vastly different. Returns on investment in the 700 MHz band are significantly lower.

The operators further said that deploying infrastructure for the 700 MHz band will require fresh investments and higher setup costs. This would make it difficult to convince their investors to support participation in the auction. In that letter, they urged BTRC and the government to reconsider the pricing to ensure fair and adequate allocation among all licensed operators.

When contacted, chief corporate affairs officer at Grameenphone Tanvir Mohammad said, “We have received the guidelines and are reviewing them.”

Banglalink’s chief corporate affairs officer Taimur Rahman said, “Globally, the 700 MHz band is considered the key ‘digital dividend’ band for nationwide coverage. To maximise its benefit in Bangladesh, the pricing needs to be more reasonable and allocation must be fair for all operators.”

Despite operators’ concerns, BTRC has no immediate plan to revise the price. BTRC officials say that the spectrum pricing was indeed finalised with government approval.