Telecom regulators in South Asia are rarely regarded as global role models and often lag behind international best practices. Yet Pakistan has taken a notable step by significantly reducing spectrum base prices for its upcoming auction in February 2026.
Compared to the previous auction in 2021, the Pakistan Telecommunication Authority (PTA) has cut the base price for the 1,800 MHz band by 55 per cent and the 2,100 MHz band by 52 per cent, using the US dollar as the benchmark. Adjusted for currency, the reductions are roughly 25 per cent in Pakistani rupees and 36 per cent when compared with the Bangladeshi taka. The scale of the cuts is substantial by any measure.
The pricing structure itself signals a strategic rethink. The 700 MHz band is priced at USD 6.5 million per MHz-less than half the 1,800 MHz band at USD 14 million per MHz. In Bangladesh, the 700 MHz band was initially set equal to the 900/1,800 MHz bands. Even after a 10 per cent reduction, it still stands at USD 21 million per MHz, including VAT. The 2,300 MHz and 2,600 MHz bands in Bangladesh are seven and 5.6 times higher, respectively, than Pakistan's 2026 auction prices.
Historically, Pakistan has followed Bangladesh's spectrum pricing model. Auctions in 2017 and 2021 show strong alignment. This time, however, Pakistan has chosen an enlightened path-treating spectrum as a force multiplier for economic growth rather than merely a source of immediate revenue for the government.
Auction design has also evolved. By offering spectrum simultaneously across six bands-700, 1,800, 2,100, 2,300, 2,600 and 3,500 MHz-Pakistan has given mobile operators flexibility to plan optimal investment strategies. Bangladesh's piecemeal approach has often led to sub-optimal and fragmented acquisition decisions.
Industry fundamentals further highlight Pakistan's boldness. Average revenue per user (ARPU) is broadly similar-USD 0.97 in Pakistan versus USD 1.18 in Bangladesh. Mobile connections number around 196.5 million in Pakistan, slightly higher than Bangladesh's 187 million. Smartphone penetration among subscribers is 72 per cent, compared with 63 per cent in Bangladesh. Unique mobile internet penetration is identical at 31 per cent, but 4G adoption is higher in Pakistan at 74 per cent versus 66 per cent in Bangladesh. Monthly industry revenue is comparable-USD 225 million in Pakistan and USD 245 million in Bangladesh.
Taxation, however, differs sharply. Corporate tax in Pakistan is 29 per cent, versus 40-45 per cent in Bangladesh, while consumer taxes are 34.5 per cent versus 39 per cent. Both countries apply minimum turnover tax regimes (1.25 per cent and 1.5 per cent), requiring operators to pay tax on gross revenue even in the absence of profits.
Given the similarity in market dynamics, the magnitude of Pakistan's spectrum price reduction is striking. It signals a regulatory philosophy that trusts market forces to accelerate digitalisation and long-term growth, rather than seeking short-term fiscal gains.
Even macroeconomic indicators weaken any argument against reform. Bangladesh's GDP is around USD 450 billion, compared with USD 375 billion in Pakistan. GDP growth is 4.2 per cent versus Pakistan's 2.5 per cent, while the debt-to-GDP ratio is 40 per cent compared with 70 per cent in Pakistan.
If Pakistan can make such bold moves under severe economic strain, Bangladesh clearly has the fiscal space to adopt a forward-looking spectrum policy. The challenge is mindset, not capacity.
Spectrum should be treated as an enabler of economic transformation, not merely a fiscal instrument. That lesson is already being applied in Pakistan. Bangladesh now needs to recognise the same reality.
The writer is Chief Corporate and Regulatory Officer of Robi Axiata PLC.
