Teletalk to get spectrum despite Tk 5,500cr dues

The government has directed the telecom regulator to allocate a majority share of the remaining 700 MHz spectrum to state-owned operator Teletalk Bangladesh, despite the company having more than Tk 5,500 crore in unpaid spectrum fees and other liabilities.

The move has triggered questions over compliance with existing rules.

According to official documents seen by The Daily Star, the Posts and Telecommunications Division recently issued a directive to the Bangladesh Telecommunication Regulatory Commission (BTRC) to allocate 10 MHz to Teletalk from the 15 MHz that remained unsold in the 700 MHz band through an executive order.

The total spectrum earmarked for auction in this band was 25 MHz. On January 21, Grameenphone became the first mobile operator in Bangladesh to secure spectrum in the 700 MHz band, acquiring 10 MHz at the base price of Tk 237 crore per MHz.

The company will pay Tk 2,370 crore for the allocation.

Grameenphone was the only bidder in the auction. Anticipating limited participation, the BTRC had revised its auction rules beforehand, reducing the maximum amount a single operator could acquire from 15 MHz to 10 MHz. As there was no other bidder, Grameenphone was awarded 10 MHz, leaving 15 MHz unallocated.

The government has now moved to allocate 10 MHz of that remaining spectrum to Teletalk, leaving only 5 MHz unassigned.

The decision has raised concerns because existing spectrum guidelines generally bar operators with outstanding dues from receiving fresh allocations.

Teletalk currently owes Tk 5,506 crore in unpaid spectrum fees and other liabilities.

BTRC Chairman Md Emdad ul Bari confirmed receiving the government’s letter requesting the allocation.

He said Teletalk had earlier sought spectrum from this band but was declined on the grounds that allocating it without auction would be uncompetitive.

“Since the allocation has already been completed to an operator after calling an auction and 15 MHz remains unsold, the government can allocate the remaining spectrum,” he told The Daily Star.

When asked about Teletalk’s unpaid dues, Bari acknowledged that spectrum guidelines prohibit giving spectrum to operators with outstanding payments.

However, he added that “there is an arrangement for this” and that Teletalk has received spectrum under similar arrangements before.

Teletalk currently serves about only 68 lakh users out of Bangladesh’s roughly 18.6 crore mobile subscribers, approximately 3.66 percent of the market.

The 700 MHz band, often described globally as the “golden spectrum”, is prized for its technical advantages. As a low-frequency band, it travels longer distances, penetrates buildings more effectively and requires fewer towers to provide coverage compared to higher-frequency bands.

The advantages makes it particularly suitable for expanding coverage in rural areas, improving indoor connectivity in cities and supporting both 4G expansion and future 5G deployment.

In contrast, higher-frequency spectrum can carry more data but covers shorter distances and is more easily obstructed by physical barriers.