Major international telecom investors expressed concerns about the proposed parameters for the upcoming 700MHz spectrum auction, citing technical, commercial, and economic challenges.

In a joint letter addressed to Faiz Ahmad Taiyeb, special assistant to the chief adviser with executive authority over the Ministry of Posts, Telecommunications, and ICT, the parent companies of Bangladesh's leading mobile network operators urged the government to reconsider the auction's timing and pricing structure.

Copies of the letter were also sent to the secretary of the Posts and Telecommunications Division, the Ministry of Finance, and the chairman of the BTRC.

Signed by senior executives of Axiata, Telenor, and Veon, the letter highlighted three key issues with the current plan: the limited amount of spectrum being released, the disproportionately high pricing, and the limited device compatibility with the 700MHz band.

The investors emphasised that proceeding with the auction under the current conditions could hinder the growth of Bangladesh's telecom sector and delay the delivery of tangible benefits to consumers.

The parent companies of Bangladesh's leading mobile network operators urged the government to reconsider the auction's timing and pricing structure

The 700MHz spectrum auction, planned for the coming months, proposes releasing 2x25MHz of spectrum at a price of Tk 263 crore per MHz.

Investors argued that this pricing is significantly higher than global benchmarks and could increase spectrum costs to 14 percent to 16 percent of revenues, up from the current 9 percent to 12 percent. This, they warned, is unsustainable for the Bangladeshi market.

The investors' concerns come at a critical time for Bangladesh's telecom sector, as the government is seeking to enhance digital connectivity and drive economic growth through improved mobile broadband services.

Additionally, investors pointed out that only 50 percent of 4G-capable devices in Bangladesh currently support the 700MHz band.

Even with new devices supporting the band, it would take approximately four years for the spectrum to achieve widespread compatibility, limiting its immediate impact on service quality.

The letter also noted that the 700MHz band consists of a full 2x45MHz, and releasing only 2x25MHz is insufficient for technical and commercial viability.

The investors urged the government to delay the auction until the full spectrum is available, ensuring a more effective and sustainable allocation.

As long-term stakeholders in Bangladesh's telecom sector, the companies expressed their commitment to supporting the country's connectivity and economic development.

They offered to engage in further discussions with the relevant ministry and the Bangladesh Telecommunication Regulatory Commission (BTRC) to address these concerns and explore alternatives that align with global best practices.

The letter was signed by Thomas Hundt, group chief business and technology officer of Robi Axiata's parent company Axiata Group; Hakon Bruaset Kjol, head of investment management & deputy head of Asia at Grameenphone's parent company Telenor Asia; and Marine Babayan, global corporate affairs director of Banglalink's parent company Veon.