Spectrum Allocation in Bangladesh Without Auction Sparks Corruption Allegations

Serious allegations of corruption and abuse of power have emerged in Bangladesh’s telecommunications sector following the allocation of the highly valuable 700 MHz spectrum band to Grameenphone without a competitive auction. Critics claim the decision has caused an estimated loss of Tk 2,500 crore to the state and raises concerns over transparency, conflict of interest, and market fairness.
The Bangladesh Telecommunication Regulatory Commission (BTRC) finalized the allocation on January 21 at a meeting that approved the sale of the spectrum at its base price, bypassing a competitive bidding process. The move has triggered widespread criticism from telecom analysts and policy observers, who describe it as unprecedented in the country’s regulatory history.
“Auction in Name Only”
Although BTRC announced an auction for the 700 MHz band on January 14, no genuine competition ultimately took place. Grameenphone and Robi initially expressed interest, but Robi withdrew at the final stage under what observers describe as “mysterious circumstances,” leaving Grameenphone as the sole bidder.
Analysts argue the process appeared pre-arranged, enabling Grameenphone to acquire the spectrum without market competition. The allocation was completed within a short and reportedly opaque timeframe, despite an existing court rule related to spectrum issues, raising further legal and procedural questions.
Golden Spectrum Sold at a Discount
The 700 MHz band is widely regarded in the global telecom industry as “golden spectrum” due to its ability to provide wide-area coverage at lower infrastructure cost, especially in rural and hard-to-reach regions.
BTRC fixed the price at Tk 237 crore per MHz for a 15-year license period. However, critics point out that Bangladesh sold 900 MHz spectrum at a similar price in 2021. Given inflation and the dramatic rise in mobile data demand since then, experts argue the valuation of 700 MHz in 2025 should have been significantly higher.
For comparison, India reportedly sold comparable spectrum at around Tk 470 crore per MHz—nearly double the Bangladeshi rate. Based on these benchmarks, economic analysts estimate that Bangladesh may have lost approximately Tk 2,500 crore in potential revenue.
Allegations of Conflict of Interest
The most contentious aspect of the decision centers on alleged conflicts of interest involving senior policymakers. Grameen Telecom, which owns 34.2% of Grameenphone, is controlled by institutions linked to Nobel laureate and interim government chief Dr. Muhammad Yunus.
Critics allege that since assuming office, Dr. Yunus appointed close associates with prior ties to Grameen Telecom to key regulatory positions. These include Mahmud Hossain, a former Grameen Telecom official now serving as a BTRC commissioner, and Faiz Tayeb Ahmed, currently a special assistant at the Posts and Telecommunications Division.
Opposition figures and civil society members argue that placing individuals with prior corporate affiliations in regulatory decision-making roles undermines institutional neutrality and strengthens perceptions of favoritism.
Market Distortion and Monopoly Fears
Telecom experts warn that granting exclusive access to 700 MHz spectrum could severely distort competition in Bangladesh’s mobile market.
The band would allow Grameenphone to expand coverage more efficiently and at lower cost than rivals, potentially deepening existing market imbalances. Competitors lacking access to similar low-frequency spectrum would face higher infrastructure costs, placing them at a structural disadvantage.
Analysts caution this could accelerate monopolistic dominance, ultimately harming consumers through reduced competition, limited choices, and weakened incentives for service quality improvements.
Calls for Investigation and Transparency
Economists, legal experts, and telecom policy analysts are now urging an independent investigation into the allocation process. They are calling for the release of all documents related to spectrum pricing, bidding procedures, and regulatory approvals.
“The regulator’s primary responsibility is to safeguard public assets and ensure fair competition,” said one telecom policy expert. “When strategic national resources are allocated without transparency or competition, public trust collapses.”
As controversy intensifies, the spectrum decision is increasingly being framed as a critical test of governance reform, regulatory independence, and economic accountability in Bangladesh’s telecom sector.