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Bangladesh’s trillion-dollar economic ambition hinges on critical policy decisions around spectrum pricing, taxation, and telecom regulation, the GSMA has warned.

“ This is not just about 5G. It is about building the digital nation that will carry Bangladesh’s ambitions for decades to come. Spectrum pricing is a strong signal of how serious the government is about digital transformation,” said Julian Gorman, Head of Asia Pacific at GSMA, during the launch of the industry body’s latest report in Dhaka.

Heavy costs, weak returns

The report shows spectrum costs in Bangladesh have surged to 15 percent of mobile operators’ revenues—nearly double the global median—while taxes eat up around 55 percent, one of the world’s highest rates. The result is low investment, weak internet coverage, and more than half of the population still stuck with 2G handsets.

“High spectrum prices mean less investment in infrastructure, less coverage, less quality of service, less speed,” Gorman said.

The GSMA warned that lowering reserve prices in spectrum auctions is crucial. Halving spectrum costs could boost GDP by $34 billion by 2035, while cutting them by 75 percent could add up to $45 billion.

Lessons from Asia

Several Asian economies have already reaped the benefits of reform. Vietnam slashed spectrum reserve prices by 90 percent, leading to a successful 5G rollout. India cut prices and resolved disputes, which transformed it into a 5G leader. Thailand and South Korea also kept spectrum affordable to accelerate adoption.

“Bangladesh now has to make the same decision. Government revenue is important, but the greater prize is sustainable economic transformation,” Gorman noted.

More than spectrum

Gorman stressed that spectrum is just one piece of the puzzle. High taxes, compliance hurdles, rights-of-way challenges, device costs, and low digital literacy are also holding back adoption. Device affordability, in particular, is a barrier with more than half the population unable to access smartphones.

He argued that the government should lead by digitalising services, creating reasons for citizens to adopt smartphones. “Government should act as an anchor tenant in the digital economy. By digitalising services, you not only make life easier for citizens but also create adoption,” he said.

Critical bands and political will

GSMA urged timely allocation of the 700 MHz and 3.5 GHz bands, which could improve service quality by up to 40 percent. With elections ahead, Gorman expects digital policy to become a political debate, as young voters increasingly prioritise parties’ digital visions.

“Twenty years ago, mobile was just a sector to regulate. Now it is the foundation of the economy. That requires a whole-of-government approach,” he said.

Catching up

Reflecting on Bangladesh’s journey, Gorman said the country once led innovation in mobile services but now risks falling behind. Still, its young population offers a demographic edge to catch up, if reforms align with investment.

At the core, he argued, the choice is philosophical: “If spectrum is treated as a sovereign asset to sell at the highest price, you get short-term cash but long-term stagnation. If you treat it as a co-investment in the digital economy, you build resilience, competitiveness, and growth. The question is not whether Bangladesh can afford to reduce spectrum costs. The question is whether it can afford not to.”