B Mirror Report : Rabi Axiata, the country’s second-largest listed mobile operator, has withdrawn from the long-awaited auction of spectrum in the 700 MHz band, leaving market leader Grameenphone as the only remaining bidder for the auction scheduled on January 21.
In a statement, Rabi’s Chief Corporate and Regulatory Affairs Officer Shahed Alam said the decision was taken after a strategic and technical review. While the 700 MHz band is critical for future network development, he noted that the timing of the auction does not align with Rabi’s current priorities or prevailing market conditions.
Confirming the development, Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Major General (Retd.) Md. Emdad Ul Bari said the regulator would proceed with the auction as planned, citing preparations that have been underway since 2024. He added that Rabi has applied for spectrum in another band, which the commission may consider.
Initially, both Grameenphone and Rabi had applied to participate in the auction, while the third-largest operator Banglalink and state-owned Teletalk did not submit applications. Although Rabi sought a one-month extension of the auction timeline, it ultimately opted to withdraw.
Anticipating the possibility of a single bidder, BTRC earlier amended its auction policy, reducing the maximum spectrum acquisition cap from 15 MHz to 10 MHz to prevent excessive concentration and to protect smaller operators. The regulator said the move was aimed at maintaining healthy competition in the telecom market.
Complicating matters further, 20 MHz of spectrum in the 700 MHz band remains tied up in a long-standing legal dispute stemming from an allocation made in 2007 to Always On Network Bangladesh Limited.
Meanwhile, responding to operators’ demands, the government recently reduced the base price of 700 MHz spectrum by 10 percent. The price per MHz for a 15-year license was lowered from Tk 263 crore to Tk 237 crore. Despite the reduction, operators argue that the price remains high compared to international benchmarks.
Market analysts believe high spectrum costs and technical considerations contributed to Rabi’s withdrawal. Attention now turns to Grameenphone, as industry observers assess how much spectrum it will acquire as the sole participant and what impact the auction outcome may have on the rollout of 5G and high-speed internet services in Bangladesh.
