Bangladesh Pivots Spectrum Strategy to Prioritize Digital Inclusion Over Revenue
The government aims to lower smartphone costs and ease spectrum renewals to accelerate AI-driven economic growth.
Rehan Asif Asad, the Prime Minister's Adviser on Posts, Telecommunications and Information Technology, has urged mobile operators to remain calm regarding upcoming spectrum renewals. The administration is pivoting toward treating spectrum as a strategic national resource to drive connectivity rather than a primary revenue stream for the state.
Speaking at a recent roundtable, Asad clarified that the immediate burden on operators is limited, noting that only about 20% of currently assigned spectrum is due for renewal in 2026. Specifically, 79.4 MHz of the 406 MHz total spectrum assigned across four operators will require renewal. This next phase of renewals is scheduled to begin in November 2026 and will continue through 2034. Asad emphasized that the priority is signal quality, stating, "Please do not be tensed... What matters and what's critical is the signal."
The Push for Digital Inclusion
Bangladesh is currently navigating a transition toward an AI-driven economy, but a significant portion of the population remains reliant on 2G feature phones. To bridge this digital divide, the government is implementing measures to lower the barrier to entry for smartphone ownership. The chairman of the National Board of Revenue has committed to zero tax and duty on raw materials used for the production of low-cost smartphones.
Infrastructure expansion is also a core component of the strategy. To ensure the network can handle future demand, the government is targeting a submarine cable capacity of 50 terabits per second. This target is designed to comfortably exceed the projected 2030 requirement of 30 terabits per second, providing the necessary bandwidth for advanced digital services.
Strategic Economic Implications
This shift in regulatory philosophy—moving from revenue generation to "strategic enablement"—is intended to reduce operational costs for telecommunications companies. Lower costs for operators can lead to improved network quality of service (QoS) and more affordable data for the end consumer. According to BSS, average data use in Bangladesh has reached 8.6 GB, trailing significantly behind the more than 20 GB average seen in Southeast Asia.
By prioritizing accessibility and infrastructure over immediate licensing fees, the administration aims to accelerate the adoption of 4G, 5G, and AI services. These technologies are viewed as critical drivers for national productivity and long-term economic growth over the next several decades.
Future Outlook
As the November 2026 renewal window approaches, the industry will be watching to see if the government's rhetoric translates into flexible pricing models. While the commitment to zero-tax raw materials for smartphones provides a clear path for hardware adoption, the long-term sustainability of the network will depend on how the remaining 80% of spectrum is managed through 2034. The government continues to maintain that spectrum should be viewed as a "strategic enabler of connectivity, digital inclusion, productivity and long-term economic growth."