The Bangladesh Telecommunication Regulatory Commission’s (BTRC) 17-year-old “administrative oversight” has descended into a judicial deadlock, locking up the nation’s most valuable mobile spectrum and costing Bangladesh billions in lost income and delaying the rollout of 4G and 5G.

At the centre of the dispute is the highly coveted 700 MHz band—internationally known as the “golden spectrum” for its superior long-range coverage—which the BTRC mistakenly allocated in 2007 to a small internet service provider (ISP), Always on Network Bangladesh Ltd (AONB). The allocation, given under a Tk9 crore licence, was granted for free at a time when the regulator had little understanding of the frequency’s future strategic value.

When the BTRC moved to reclaim the 12 MHz allocation—part of a 45 MHz block now globally standardised for mobile broadband—the move resulted in years of litigation. AONB is currently seeking up to Tk1,800 crore in compensation following the cancellation of its allocation.

According to BTRC estimates, Bangladesh has already lost around Tk12,700 crore in potential auction revenue, while the spectrum’s prolonged blockage has crippled nationwide 4G and 5G rollout. Telecom operators say the entire 45 MHz block is unusable until the dispute ends, as no operator will bid on a fragmented allocation.

Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser on Posts, Telecommunications, and IT, confirmed to The Business Standard that the frequency was mistakenly awarded to an ineligible ISP.

The BTRC cancelled the allocation in December 2014 after the International Telecommunication Union (ITU) began identifying the band for IMT use around 2010. But AONB challenged the move in the High Court in 2015 and won in 2023, with the court ruling the cancellation unlawful. Taiyeb blamed “poor arguments” by BTRC’s lawyers for the outcome. The dispute now awaits a final verdict in the Appellate Division.

AONB Managing Director Riaz Shahid argues that the company had invested heavily before BTRC abruptly suspended its services. He said ITU rules provide protection for prior allocations, either through continued access or compensation—neither of which the BTRC provided.

The company’s compensation demand, initially Tk800 crore in 2020, has since surged to Tk1,800 crore following the High Court ruling. Shahid declined further comment, noting the case is sub judice.

BTRC’s 2015 investigation found that AONB never built a meaningful network or deployed infrastructure capable of using the band, and that its imported equipment is now obsolete. Globally, experts said no country permits an ordinary ISP to occupy the 700 MHz band, which is restricted to LTE, NB-IoT, and 5G systems.

Bangladeshi telecom engineer Abu Bakkar Siddique, now based in Malaysia, said, “The 700 MHz band is designated for telecom operators. An ISP has no use for this frequency.”

The 700 MHz band is considered the backbone for modern mobile networks due to its ability to travel long distances, penetrate buildings, and cover rural regions with fewer towers. Bangladesh currently relies on mid-band frequencies such as 1800, 2100, and 2300 MHz, which provide capacity but insufficient coverage.

Operators risk underserving rural areas and facing significantly higher network investment requirements—doubling tower needs—in the absence of low-band spectrum, such as 700 MHz.
Bangladesh is a global anomaly with its most valuable telecom asset entangled in litigation as the spectrum dispute is still pending in the Appellate Division. In order to safeguard national interests and provide fair digital connectivity, officials and industry experts caution that a resolution to the standoff is imperative.