Bangladesh to Auction 700-MHz Spectrum in 2026 Amid Legal Dispute

The Bangladesh Telecommunication Regulatory Commission (BTRC) is gearing up for an auction of the 700-MHz spectrum, scheduled to take place in January 2026. This auction aims to enhance the country’s 4G network capacity and significantly expand 5G coverage. However, uncertainty looms over the auction process due to a legal dispute involving the BTRC and broadband provider AlwaysOn Network Bangladesh Ltd, which could impede the availability of the entire spectrum block.

Legal Battle Over Spectrum Allocation

The controversial 700-MHz spectrum has been at the center of a prolonged legal battle between the BTRC and AlwaysOn. Back in 2007, AlwaysOn was allocated 12 MHz of spectrum in this band, at a time when the 700-MHz range had not been globally harmonized for mobile telecommunications. The BTRC later rescinded the allocation, offering spectrum in the 5-GHz band as a replacement. Dissatisfied with this decision, AlwaysOn took legal action, and the case is now awaiting deliberation in the Appellate Division. With no court date set until the judiciary reconvenes later this month, a resolution could delay the release of the 12 MHz for auction.

Telcos Demand Entire Spectrum Block

Despite the legal uncertainty, the BTRC has proposed auctioning at least 25 MHz of 700-MHz spectrum in January 2026, pending the outcome of the case. Should AlwaysOn lose its appeal, the regulator plans to release the full 45 MHz up for bidding. This, however, aligns with the demands of leading telecom operators such as Grameenphone, Robi Axiata, and Banglalink, which have unanimously called for the entire 45 MHz to be auctioned in one block. Industry insiders believe selling smaller portions of spectrum would lead to fragmented bandwidths, slowing rural connectivity expansion and hampering digital inclusion efforts.

High Spectrum Base Price Sparks Concerns

Adding to the debate is the base price for the auction, currently set at BDT2.63 billion (approximately US$21.6 million) per MHz. Telecom operators have expressed dissatisfaction with the cost, arguing that such high prices could constrain network investment and slow the pace of digital development in Bangladesh. Taimur Rahman, the Chief Corporate and Regulatory Affairs Officer of Banglalink, highlighted findings from a GSMA study indicating that lower spectrum costs could drive faster digital adoption. In light of this, industry stakeholders are urging the BTRC to review its pricing strategy to encourage optimal participation and ensure a broader rollout of services.

A Critical Moment for Bangladesh’s Telecom Sector

This spectrum auction marks a significant milestone for the telecom industry in Bangladesh, being the first major spectrum sale since 2022, when operators invested BDT106.4 billion in frequencies at 2.3-GHz and 2.6-GHz. The outcome of the planned 700-MHz auction could shape the future of digital connectivity in the country, enabling operators to address growing demand for high-speed internet while bridging the digital divide in rural and underserved areas. As stakeholders anticipate resolution of the legal dispute, the auction carries the potential to catalyze advancements in the nation’s 5G infrastructure and accelerate its digital transformation journey.