Published : 17 Sep 2026, 05:37 PM
Updated : 17 Sep 2026, 05:37 PM
Spectrum is known as the lifeblood of the telecom industry. As a vital component of the telco business, its price is crucial in determining the price the customers pay for the service they use. Therefore, keeping a high spectrum price only harms the customers interest.
Under the circumstances, it is wise to look around the world to see how other countries are going about pricing efforts.
Vietnam Learns Its Lesson
As a thriving economy, Vietnam has built a reputation for being smart in understanding the needs of the investors to turbocharge country’s development. We find similar trends in spectrum pricing.
Vietnam had successfully sold 10 MHz block of 700 band spectrum at only Tk 918.5 million (per MHz) in May, 2025 which was three times lower than in Bangladesh.
Vietnam learnt its lesson from its failure in auctioning off 2300 band spectrum held in June, 2023. That time, the reserve price was set at Tk 860 million (per MHz) for the 2300 band, which prompted the operators to abstain from the auction, citing too high costs.
Vietnam then decided to auction off 2600 band spectrum and set the reserve price for the auction at Tk 180 million (per MHz), reflecting on its prior experience. As a result, the 2600 auction held in March 2024, was a grand success whereas the same 2600 band was priced three times higher in Bangladesh.
The outcome was mindboggling as within just one year of the auction, Vietnam tripled its average mobile download speed from 57 Mbps to 152 Mbps, which helped it to climb 26 places to rank 16th globally.
Pakistan Takes a U-Turn
Pakistan organised a very successful auction in March, 2026. In total, 597.2 MHz spectrum was auctioned in the 700, 1800, 2300, 2600 and 3500 bands, out of which 80.4% percent were sold.
Between spectrum auctions held in 2021 and 2026, Pakistan reduced base price for 1800 band by a massive 55 percent, while base price for 2100 band was reduced by 52 percent (in USD comparison). Despite being offered around Tk 910 million less than Bangladesh’s base price for the 1800 band and Tk 740 million for the 2100 band, there was no taker for the 1800 and 2100 band spectrum.
The latest spectrum price in Bangladesh for the 700 band was three times higher (Tk 2.37 billion crore versus Tk 800 million), the 1800 price was one-and-a-half times higher (Tk 2.63 billion versus Tk 1.72 billion), the 2300 price was 4.7 times higher (Tk 580 million versus 123 million), and 2600 price was 3.8 times higher (Tk 580 million versus Tk 154 million) than that of Pakistan’s spectrum auction in 2026.
Indonesia Continues to Lead
Indonesia has conducted a spectrum auction on Jul 10, 2026. The auction took place for the 700 MHz and 2600 MHz spectrum band. The highest bid for the 700 band was Tk 360 million per MHz and Tk 695 million per MHz for 2600 band. Compared to Bangladesh, the 700 band spectrum was 6.6 times and 2600 spectrum was eight times cheaper in Indonesia.
With nearly double ARPU, a 1.75 times bigger subscriber base, about 3.7 times bigger industry’s monthly market revenue, nearly 100 percent smartphone penetration, far greater scope of services, 1.7 times higher per capita GDP based on PPP, nearly half corporate tax rate and three times+ lesser consumer tax, Indonesia chose to follow the global trend on spectrum price.
Bangladesh Versus the Globe
Globally each MHz generates 75 percent less revenue than a decade ago, GSMA observes. According to NERA, a global economics research organisation, most countries have increased supply of spectrum by 60 percent or more since 2017. The increased supply of spectrum was also reflected in steep decline in the prices of spectrum. Meanwhile, according to GSMA, by 2027, spectrum cost could reach up to as high as 23 percent of operators’ revenues if current price continues in Bangladesh.
Spectrum License Tenure Critical for Investment Decisions
It has been observed around the world that regulatory uncertainty regarding future spectrum access rights represents a severe bottleneck. Regulators are using this critical lever to bring the mobile operators in confidence as they decide on investment in spectrum.
For example, in India, licenses are granted with an initial validity period of 20 years, which is extendable for a further 10 years subject to administrative approval. Beyond the 20-year initial tenure, Spain presumes renewal for a subsequent additional 20-year period once the initial term concludes- making a highly stable, near-automatic 40-year investment horizon for investor. UK mobile spectrum licenses are issued with an indefinite duration, meaning they run perpetually.
It’s worth noting that a minimum spectrum license tenure of 20 years is mandatory across the European Union’s 27 Member States, providing long-term regulatory certainty and supporting sustained investment in advanced mobile networks and 5G deployment.
The global phenomenon as highlighted clearly indicates which way the world is moving with spectrum price. Bangladesh is also heading into a crucial moment when she must decide on which way to go. As highlighted, the world has chosen to lower spectrum price to deliver digital dividends to all its citizens. Whatever the government decides, will indicate how it actually intends to take the country’s digitalization forward.
References:
“Komdigi Tetapkan Telkomsel, XLSmart, Indosat Pemenang Lelang Frekuensi”. CNN Indonesia. Jul 21, 2026. (In Bahasa Indonesia)
“Hasil Lelang Frekuensi, XLSmart Menang di 700 MHz, Telkomsel Kuasai 2,6 GHz”. Detikinet. Jul 11, 2026. (In Bahasa Indonesia)
“Pakistan Raises $507 Million in First Stage of 5G Spectrum Auction”. Propakistani.pk. Mar 10, 2026.
“Viettel, VNPT win Việt Nam’s first 5G spectrum auctions”. Vietnam Ministry of Science and Technology. Apr 9, 2024.
"The Year of Spectrum Renewals". GSMA Intelligence. 2025.
“Spectrum & Licensing”. India Department of Telecommunication. Apr 8, 2026
“EUR-Lex — European Electronic Communications Code, Directive (EU) 2018/1972”. European Union. Apr 11, 2023.
"Mobile spectrum licence duration and MNOs' investment decisions". Ofcom. 2023
“Policy Directive for IMT Spectrum Auction for Improvement of Next Generation Mobile Services in Pakistan”. Pakistan Ministry of Information Technology & Telecommunication. Jan 6, 2026.
“Tuning in to global spectrum policy”. GSMA. Spectrum Signals. October, 2025.
