Major global telecom investors have raised concerns over Bangladesh’s upcoming 700MHz spectrum auction, warning that the proposed conditions could hamper industry growth and impact consumer benefits.

In a joint letter addressed to Faiz Ahmad Taiyeb, special assistant to the chief adviser overseeing the Ministry of Posts, Telecommunications, and ICT, the parent companies of leading mobile operators—Axiata, Telenor, and Veon—urged the government to reconsider the auction’s timing and pricing.

Copies were also sent to the finance ministry, the Posts and Telecommunications Division, and the Bangladesh Telecommunication Regulatory Commission (BTRC).

The letter outlined three key concerns: the limited release of spectrum, high pricing, and restricted device compatibility. Investors argued that the planned auction of 2x25MHz at Tk 263 crore per MHz is significantly higher than global benchmarks. They warned that spectrum costs could rise to 14-16% of revenues, up from the current 9-12%, making it financially unviable.

Additionally, they pointed out that only half of 4G-enabled devices in Bangladesh currently support the 700MHz band, and full compatibility could take at least four years. The investors also argued that the government should delay the auction until the full 2x45MHz spectrum is made available, ensuring a more efficient allocation.