Bangladesh's 700-MHz Spectrum Auction Faces Uncertainty Due to Legal Dispute

What's Happening?

The Bangladesh Telecommunication Regulatory Commission (BTRC) plans to auction 700-MHz spectrum in January 2026, aiming to enhance 4G network capacity and expand 5G coverage. However, the availability of the full 45 MHz spectrum is uncertain due to a legal dispute with AlwaysOn Network Bangladesh Ltd, which holds 12 MHz of the spectrum. The case is currently before the Appellate Division, with a hearing date pending. The BTRC has applied to proceed with the auction, intending to offer at least 25 MHz, but the outcome of the legal case will determine if the full spectrum can be auctioned.

Why It's Important?

The auction is crucial for Bangladesh's telecom operators, including Grameenphone, Robi Axiata, and Banglalink, as they seek to expand their network capabilities. The legal dispute could impact the operators' ability to acquire the necessary spectrum to meet growing data demands. The auction's outcome may influence the country's digital infrastructure development and affect consumer access to advanced mobile services. Additionally, the high base price for the spectrum could slow network expansion plans, affecting digital inclusion and rural coverage.

What's Next?

The resolution of the legal dispute will be pivotal in determining the auction's scope. If AlwaysOn loses its appeal, the BTRC may proceed with offering the full 45 MHz spectrum. Operators are advocating for lower spectrum prices to accelerate digital adoption, which could influence the BTRC's pricing strategy. The auction, if successful, will be the first major spectrum auction in Bangladesh since 2022, potentially setting a precedent for future auctions.

Beyond the Headlines

The case highlights the complexities of spectrum allocation and the legal challenges that can arise. It underscores the need for clear regulatory frameworks to manage spectrum resources effectively. The situation also raises questions about the balance between government and private sector interests in advancing digital infrastructure.