Govt Earns Tk 2,370 Crore as Grameenphone Wins Low-Band Frequency

Bangladesh’s telecommunications sector marked a significant milestone when the Bangladesh Telecommunication Regulatory Commission (BTRC) allocated 10 megahertz (MHz) of the 700 MHz spectrum band to Grameenphone. This strategic move, first of its kind in the nation for this low-band frequency, generated Tk 2,370 crore (equivalent at a base price of Tk 237 crore per MHz) for the government and premises to enhance mobile broadband coverage and quality across Bangladesh.

The 700 MHz frequency band, often referred to internationally as part of the “digital dividend,” has become one of the most sought-after spectrum assets globally for mobile broadband services including 4G and next-generation 5G deployments due to its excellent propagation characteristics.

What Is the 700 MHz Spectrum and Why It Matters

Spectrum refers to ranges of radio frequencies used by mobile operators to transmit data and voice signals. Lower frequency bands such as 700 MHz are particularly valuable because signals at this frequency travel farther and penetrate buildings more effectively than higher bands. This means fewer towers are required to cover wide regions, which can reduce infrastructure costs while significantly improving rural and indoor connectivity.

Across the world, regulators have prioritized low-band frequencies to bridge the digital divide, bringing high-speed internet to rural communities and enabling better service indoors where high-frequency bands struggle to penetrate walls and structures.

The Auction and Government Revenue

On January 21, 2026, BTRC’s Spectrum Auction Committee and Spectrum Management Committee approved the allocation of 10 MHz of 700 MHz spectrum to Grameenphone, Bangladesh’s largest mobile operator by subscriber count. The decision stemmed from the commission’s broader auction process under revised auction regulations.

• Allocation amount: 10 MHz
• Winning bidder: Grameenphone
• Government revenue: Tk 2,370 crore
• Price per MHz: Tk 237 crore
• Licence duration: Typically 15 years

This outcome represents the first formal commercial assignment of the 700 MHz band in Bangladesh and a milestone in the state’s efforts to modernize its mobile infrastructure.

Market Participation and Regulatory Adjustments

The spectrum auction process in Bangladesh faced unique challenges in terms of participation. Grameenphone was the only operator to participate in the auction, after its competitors opted not to bid.

Reportedly, Robi Axiata withdrew from the auction, citing misalignment between the timing of the auction and its network priorities, although it remains interested in acquiring spectrum in other bands. Meanwhile, Banglalink and state-owned Teletalk did not submit bids.

To account for potential bid concentration, the BTRC had previously revised its rules, reducing the maximum spectrum that a single operator could acquire from 15 MHz to 10 MHz in this band. This regulatory adjustment was intended to safeguard competition and ensure future availability of spectrum for other players.

Legal and Structural Challenges

Despite this landmark auction, around 20 MHz of the 700 MHz band remains tied up in a long-running legal dispute between the regulator and broadband service provider Always On Network. The ongoing case has delayed broader access to the spectrum and limited the amount offered in this round.

This situation is not unique to Bangladesh; many countries experience legal and administrative hurdles when reallocating spectrum originally assigned under older regulatory frameworks. However, it underscores the importance of clear policy, robust legal frameworks, and timely dispute resolution to unlock critical spectrum for public benefit.

Benefits for Connectivity and National Development

Securing access to the 700 MHz band is significant for both service providers and mobile users:

1. Enhanced Network Coverage

Low-band frequencies cover wider geographic areas with fewer base stations compared to higher bands, making them especially suited for rural and underconnected regions. This characteristic helps reduce the cost of infrastructure deployment and accelerates network expansion.

2. Improved Indoor Penetration

700 MHz signals can penetrate buildings and densely built urban environments more effectively, thus enhancing mobile data performance for end users inside homes, offices, and complexes.

3. Foundation for Future Technology

As mobile networks advance toward full 5G services, low-band spectrum such as 700 MHz will play a critical role in ensuring coverage continuity and capacity especially in areas where high-frequency mmWave or mid-band spectrum does not reach effectively.

4. Economic and Social Impact

Access to robust mobile broadband improves productivity, supports digital businesses, and enables technologies like IoT (Internet of Things) for smart services in agriculture, health, and education. Economists and global telecom bodies note that allocating such spectrum effectively can contribute to GDP growth and broaden socio-economic opportunity.

Spectrum Allocation Trends

Bangladesh’s decision to finally bring the 700 MHz band into commercial service mirrors broader global trends. Regulators worldwide have recognized the value of low-band spectrum in meeting the exponential growth in mobile data demand and supporting widespread broadband access. International frameworks like the Asia-Pacific Telecommunity (APT) band plan have helped harmonize frequency usage across countries, driving economies of scale and interoperability for devices and network equipment.

In many markets, the so-called “golden spectrum” has been critical to the rollout of 4G and early phases of 5G, with telecommunications companies investing in complementary bands for capacity and speed.

Competition, Pricing, and Policy

Even with this successful allocation, industry stakeholders have raised concerns about auction timing and pricing. Some analysts and telecom executives suggest that the high base price could deter broader competition, while others emphasize the need for strategic and phased rollouts to align with market readiness.

Regulators and policymakers now face the task of balancing spectrum pricing, competitive access, network investment, and consumer interests as Bangladesh advances its digital agenda.

Looking Ahead

The allocation of 700 MHz spectrum to Grameenphone marks a significant development in Bangladesh’s telecom landscape, unlocking low-band capacity that promises better coverage, faster connectivity, and enhanced service quality nationwide. The Tk 2,370 crore revenue generated underscores the commercial and fiscal importance of spectrum management in the digital economy.

As regulators continue to navigate legal, technical, and competitive complexities, the effective utilization of 700 MHz will be crucial not only for Bangladesh’s digital transformation but also as a case study for spectrum policy in emerging markets.