High Spectrum Fees Risk Slowing Bangladesh’s Digital Future, New GSMA Study Finds

The GSMA released The Impact of Spectrum Pricing in Bangladesh, a comprehensive analysis that links the country’s spectrum pricing and tax burden to slower network investment and lagging internet speeds. The report sets out reforms to spectrum pricing, licensing and sector taxation that would help Bangladesh realise its ambition of becoming a trillion-dollar digital economy.  

The findings were launched in Dhaka in the presence of Mr. Faiz Ahmad Taiyeb, Special Assistant to the Hon’ble Chief Adviser, MoPTIT; Mr. Abdun Naser Khan, Secretary (PTD Division); Maj Gen Md Emdad Ul Bari, Chairman of the BTRC; Md. Jahirul Islam, Additional Secretary (Telecom), PTD; Mr. Mahmud Hossain, Commissioner (Spectrum), BTRC and Mr. Julian Gorman, Head of Asia Pacific, GSMA. 

While two operators have recently launched 5G services, broader nationwide deployment remains constrained by high spectrum costs and regulatory burdens, limiting the scale and reach of 5G. The report therefore models future deployment scenarios and economic impact, rather than focusing only on initial launches. 

Bangladesh has made important strides in expanding mobile coverage – 4G networks now reach 99% of the population and data is among the most affordable in Asia Pacific. Yet only 46% of citizens use mobile internet. Also, the average traffic per connection is just 5 GB per month, well below regional peers. As users in Bangladesh are switching to more advanced 4G and 5G smartphones, networks need to be able to keep up with the growing demand for mobile connectivity.

Today, investment in networks is being hindered by extremely high regulatory costs. Spectrum fees account for around 16% of operators’ recurring revenue – higher than the Asia-Pacific (10%) and global (8%) medians. When revenue-share levies, universal service contributions, sector-specific and consumer taxes are added, the total fiscal burden rises to an unprecedented 55% of operators’ market revenue. 

Spectrum cost needs to adjust to reflect the changing economic fundamentals of spectrum value in Bangladesh, where each MHz of spectrum supports 69% less of operators’ revenue compared to a decade ago. Maintaining current and historical prices for the upcoming spectrum renewals in 2026 and new band releases would increase spectrum cost to 21% of operators’ revenue by 2035. At such high levels of spectrum cost, investment in networks would be constrained, risking slower speeds and delayed adoption of 5G. However, it is likely that such a high level of spectrum cost would force operators to return parts of their spectrum and forgo new bands, leading to similar detrimental effects on network quality. 

To illustrate the opportunity offered by the upcoming renewals and new band assignments, the study uses economic modelling to compare three scenarios: status quo aligned with past prices where spectrum cost reaches 21% of operators’ revenue, a 50% cut in unit spectrum prices aligning total spectrum cost closer to the APAC median, and a 75% cut in unit prices aligning total cost closer to the global median. Each produces sharply different outcomes in terms of network quality and economic benefits of improved connectivity. 

Aligning spectrum cost with the Asia-Pacific median would improve the viability of investment into infrastructure deployment, lifting average download speeds by 17%, while accelerating nationwide 5G deployment to reach 99% of citizens by 2035. The resulting gains would add an estimated US $34 billion to GDP between 2025 and 2035. 

Aligning spectrum cost with the global median – approximately a 75% reduction in prices – would have an even greater impact. The study predicts 4G speeds could climb 22% and Bangladesh could capture an additional US $45 billion in economic value over the same period. The resulting benefits reach beyond what can be measured by the GDP, generating jobs and improved wellbeing throughout society.  

Importantly, reduction in spectrum prices does not need to directly translate into lower government receipts and detriment to public finances. Improved connectivity and increased economic activity could offset the loss of direct revenue from spectrum fees – an important indirect effect policymakers need to consider. Pricing of spectrum should be used to ensure efficient assignment rather than to maximise government revenues, as public finances can be more efficiently boosted using other, more economically efficient forms of taxation. 

Julian Gorman, Head of Asia Pacific, GSMA, commented: “Mobile connectivity is the oxygen of Bangladesh’s digital ambition. Yet operators here face one of the highest burdens globally on spectrum and sector-specific taxes. Affordable, predictable pricing and modernised license terms are essential to expand affordable coverage and power the trillion-dollar economic vision. We stand ready to work with government and industry partners to ensure spectrum policy becomes a catalyst rather than a constraint for inclusive growth.” 

The GSMA stands ready to work closely with the government and industry stakeholders to ensure spectrum policy becomes a catalyst for inclusive growth, supporting Bangladesh’s digital ambitions and its journey toward becoming an upper-middle-income country by 2031. 

Policy recommendations 

The study proposes four priority actions: 

1. Reset spectrum pricing – Anchor reserve and renewal fees to present-day market fundamentals and exempt them from VAT. 
2. Prioritise timely 700 MHz and 3.5 GHz awards – Ensure sufficient low- and mid-band spectrum is available to meet surging data demand and rural-coverage goals. 
3. Streamline taxes and fees – Replace revenue-share levies and high device duties with broad-based taxation that encourages smartphone adoption. 
4. Guarantee long-term licences – Extend durations and permit flexible, BDT-denominated instalments to reduce currency risk. 

The full report is available for download here.

About the GSMA 
The GSMA is a global organisation unifying the mobile ecosystem to discover, develop, and deliver innovation foundational to positive business environments and societal change. Our vision is to unlock the full power of connectivity so that people, industry, and society thrive. Representing mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA delivers for its members across three broad pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. This activity includes advancing policy; tackling today’s biggest societal challenges; underpinning the technology and interoperability that make mobile work; and providing the world’s largest platform to convene the mobile ecosystem at the MWC and M360 series of events. 

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