Impact ofSpectrum Pricingin Bangladesh This report provides an overview of spectrum pricing in Bangladesh and itsimplications for network improvements, the adoption of new technologies, and overalleconomic growth in the country. As the demand for mobile data accelerates,spectrum policy will play a decisive role in ensuring Bangladesh continues to keeppace with international connectivity standards. Bangladesh is entering a critical phase in its digital transformation journey. While thecountry has made commendable progress in expanding mobile connectivity – with 4Gcoverage now reaching 99% of the population – mobile internet penetration remainsrelatively low at 46%, and average monthly data usage per connection is just 5 GB. Asthe country plans for 5G adoption, there will be demand for substantial networkinvestments and spectrum availability. This necessitates targeted policy interventionsto unlock the full potential of mobile broadband and support the country’s digital goals. Copyright © 2025 GSMA Regulatory challenge:Balancing affordability with investment incentives Bangladesh’s mobile services are among the mostaffordable in the region, driven by competitive marketdynamics. While mobile operators face pressures fromincreasing costs, a supportive regulatory environmentcan unlock new investment opportunities. Revenues perconnection have declined by 38% in real terms since 2014,while spectrum and regulatory costs have risen sharply.The spectrum cost has increased from 11% of operators’revenue in 2014 to 16% in 2023, well above the APACmedian of 10.4% and the global median of 7.7%. When combined with other sector-specific taxes on both firmsand consumers, the regulatory contribution of the telecomsector in Bangladesh accounts for almost 55% which formsa significant share of operators’ revenue, highlighting theimportance of continued collaboration between governmentand industry to ensure sustainable growth. This high-cost structure risks deterring investment innetwork upgrades and delaying the adoption of advancedtechnologies such as 5G. Spectrum holdings and cost dynamics Operators in Bangladesh currently utilise just over500 MHz of spectrum—below regional norms. Upcomingrenewals in 2026 in the 900 MHz, 1.8 GHz, and 2.1 GHzbands, along with new assignments in the 700 MHz and 3.5 GHz bands, will be critical to meeting future demand,whether toaccelerate 5G availability and its adoption orenhance the capacity of 4G networks. However, the aggregate cost of spectrum has risendisproportionately. Spectrum prices in Bangladesh havehistorically been set at high levels, often denominated in$, which has exposed operators to currency depreciation risks. Although recent moves to denominate fees inBangladeshi Taka are welcome, there is an opportunityto align pricing more closely with evolving marketrealities. Declining commercial value of spectrum Between 2014 and 2023, revenue per MHz of spectrumfell by 69%, reflecting both increased spectrum holdingsand declining revenues. This trend is consistent globallyand signals a need for pricing reform. Spectrum should be priced by taking account of its current economic value,not historical benchmarks, to ensure efficient use andcontinued investment. prices fell, reflecting a broader shift in policy emphasisfrom short-term fiscal returns to long-term economic andsocial gains. Global trends show that these changes in the fundamentalvalue of spectrum have already translated into lowerprices. Between 2018 and 2023, global average spectrum Economic modelling: Impact of pricing scenarios GSMA Intelligence outlines three pricing scenarios andtheir projected impacts: Scenario 2:50% price reduction Scenario 1:Status quo(current and historical prices) Scenario 3:75% price reduction •Spectrum cost aligns with globalmedian (~8%) by 2035•4G speeds improve by 22%;scaled-up 5G network•Cumulative GDP boost of $45 bnby 2035 ($26 bn from 4G, $19 bnfrom 5G) •Spectrum cost rises to 23% ofoperators’ revenue by 2027 andsettles at 21% by 2035•Increased risk of unsold orreturned spectrum; leading to lossin economic benefits•Limited improvements in 4Ginfrastructure •Spectrum cost aligns closer toAPAC median (~12%) by 2035•4G speeds improve by 17%;Accelerated 5G adoption, 12 Mnconnections in 2030 & coveragereaching to 99% of the populationby 2035•Cumulative GDP boost of $34 bnby 2035 ($20 bn from 4G, $15 bnfrom 5G) These findings highlight the transformative potential ofspectrum pricing reform—not just for the mobile sector, butfor the broader economy. Recommendations for reform Bangladesh stands at a critical juncture in its digitaldevelopment. The country’s spectrum pricing andassignment policies will significantly influence its ability toenhance 4G and advance the adoption of 5G, narrow thedigital divide, and sustain mobile sector growth. •Align spectrum pricing with the new economicfundamentals,rather than outdated benchmarks. •Reduce reserve prices and annual fees,especi