Bangladesh's telecom regulator has proposed base prices of BDT2.14 billion (US$17.3 million) per MHz and BDT1.78 billion per MHz for two lower-band spectrum blocks it wants to auction before the end of the year.

The Bangladesh Telecommunication Regulatory Commission (BTRC) plans to sell a 3.4-MHz block in the paired 885–888.4-MHz and 930–933.4-MHz bands, alongside a 5-MHz block in the 880–885-MHz and 925–930-MHz bands, according to a Daily Star report published Sunday.

The two blocks sit well below the benchmark. BTRC set the 3.4-MHz block's reserve price 10% under the BDT2.37 billion benchmark, while the 5-MHz block carries a 25% discount.

Why do the two blocks cost different amounts?

The price gap reflects physics and geography, not marketing. The 3.4-MHz block is less prone to interference from cross-border signals originating in India, which makes it more suitable for nationwide deployment, the Daily Star reported.

That cleaner spectrum profile is precisely why BTRC attached a higher per-MHz price to the smaller block. Operators weighing coverage economics will have to balance the premium against the reduced cost of mitigating border interference in the larger, cheaper allocation.

Lower-band spectrum in the 900-MHz range carries farther and penetrates buildings better than mid-band airwaves. BTRC framed the auction as a tool to help mobile operators expand network coverage and improve indoor connectivity — a persistent weak point in Bangladesh's densely built urban markets.

What limits the licence terms?

A key constraint undercuts the value proposition: the licences will only be valid until 2030. After that date, BTRC plans to shift the allocations to the 850-MHz band in coordination with neighbouring countries.

That short licence horizon partly explains the discounted reserve prices. Operators buying now must amortise their spectrum investment over roughly five years of usable life, with no certainty about the terms they will face when the 850-MHz migration happens. Cross-border coordination with India and other neighbours adds another layer of regulatory risk to any post-2030 planning.

The pricing structure therefore bundles two competing signals: a genuine discount against benchmark to attract bidders, and a hard expiry date that compresses the investment case.

What happens before the auction?

BTRC says it has the legal authority to set spectrum base prices on its own. It will nonetheless seek government approval for the proposed prices before holding the auction, according to the report.

That approval step introduces timing risk of its own. BTRC aims to complete the sale before the end of the year, but government sign-off on pricing is a separate procedural gate that the regulator cannot bypass, even with its statutory pricing powers.

For Bangladesh's mobile operators, the auction offers a relatively low-cost route to lower-band capacity at a moment when indoor coverage quality is a competitive differentiator. Whether the discounted base prices and the 2030 expiry attract aggressive bidding will become clear once the government clears the proposal and the auction proceeds on BTRC's end-of-year timetable.